by Don Moniak
August 23, 2024

Trolley Run Station in Northwest Aiken is one of the largest housing developments in Aiken County.  At present, there are 1,066 housing units on the more than 1,500-acre site, with another 1,091 single family homes  in the longer-term planning process (1).

One of the many subdivisions within Trolley Run is Wheaton Place, which is composed of 87 townhomes and was built between 2012 and 2016. 

Within a few years, residents were experiencing problems from stormwater, including flooding of backyards and water intrusion; as well as and HVAC and plumbing defects. The problems were severe enough across the subdivision that the Lucey Law Firm of Mount Pleasant, South Carolina, was retained to seek remedy on the part of homeowners.

A class-action lawsuit (2) naming four defendants—the developer Invesco LLC, ATSCO, Inc, Wagaman’s HVAC Sales and Service, and Hardy Plumbing, was filed by Attorney Justin Lucey on November 11, 2020.  In addition to the four initial defendants, “John Does #1-50” and “Jane Does #1-50” were listed to allow for additional defendants to be added to the suit. In total, an additional 32 defendants who had worked on aspects of the project were added to the Complaint; which was amended three times.

The order granting the class-action status was issued on February 2, 2022 (3). Eventually, 86 of the 87 eligible property owners signed up for the class action suit. 

The allegations in the original Complaint were outlined as defective work that led to additional property damages: 

“The residences contained latent building defects, which have resulted in cracking foundations, water intrusion, and MEP (mechanical, electrical, and plumbing) deficiencies. These latent defects, in combination with storms and other fortuitous events, and regular and repeated exposure to harmful elements, including but not limited to water intrusion and differential settlement, have caused consequential damages to non-defective portions of the Residences.” 

A long series of Motions to Compel and Crossclaims have characterized the proceedings. In addition to the Plaintiff having to compel the production of records, especially from the developer Invesco, numerous Defendants filed Crossclaims and subsequent Motions to Compel against fellow Defendants. 

Figures 1-4. (1) Heavy erosion on graded slope during construction (top); (2) Graded slope subject to heavy stormwater runoff into flat backyards and homes (middle); (3) Retaining wall that is gradually failing (lower right); (4) Aerial view of Wheaton Place townhomes subdivision (lower left). (Photos by Site Consultants, Inc.)

Three experts were retained to review the project and identify construction deficiencies and damages (Figures 1-3 and 5-8).

One expert, Thomas Sherod of Site Consultants, Inc., issued a report that described backyards as being “extremely flat;” which allowed for flooding following any significant rain event, and eventual water intrusion into homes. The retention walls were cited as being of poor quality, contributing to site erosion and compounding the flooding problems. Numerous defects of the site’s detention pond were also identified; with the pond described as a “hazardous catch basin” due to a lack of fencing and drainge deficiencies. 

A second expert, Rhett Whitlock, identified a litany of issues, including non-weather resistant storage room and patio doors that were prematurely deteriorating, masonry stone veneer that was cracking, cracking slabs and foundations, inadequate waterproofing, finished flooring below grade, and “overall poor workmanship.” 

A third expert, Warren Maddox, focused on HVAC issues, described code violations, including improperly installed ductwork, drain pans lacking draining capability, inadequate insulation, and adverse condensation issues.  

As a result of the numerous defects, the average cost estimate for repairs was $125,000 per home—compare this estimate to the costs of the homes, which have sold for anywhere from $91,000 to $160,000 in the past decade. Only a few have been sold after 2020. 

After three and a half years of litigation, defendants began to settle. 

On May 4, 2024, the first partial settlement for $3,895,000 and involving fourteen defendants was ordered. After attorney fees and expenses, $2,202,040 was placed in an account for the homeowners. 

On August 21, 2024, a Second Amended Motion for Partial Settlement was heard in the Second District Court of South Carolina. There were no objections from the twelve defendants in the second settlement, the Presiding Judge Kimpkins agreed to approve the settlement within a day. The total second partial settlement was for $1,799,750; in addition the developer, Invesco LLC, agreed to convey three of its remaining townhome properties that are currently under lease to the homeowner’s association. 

In total, $5.7 million has been awarded to the Plaintiffs and $3.27 million is now in an account for homeowners. 

Eleven defendants officially remain in the class-action suit, Unless another partial settlement is reached, the case will eventually go before a jury. 

Figures 5-8: More alleged defects and damages. (Photos and original captions by Site Consultants, Inc.)

Footnotes: 

(1) According to a recent development application to the County Planning Department for the Ashland at Trolley Run Station residential development: 

“There are currently 523 single family homes, 288 apartments and 255 townhomes located in the development with one full access point on Vaucluse Road (Catenary Boulevard) and one full access point on Robert M. Bell Parkway (SC 118) (Trolley Run Boulevard) with an additional 612 single family homes and 246 townhomes constructed at Phase 1. At Phase 2 – Buildout, the site is planned to have a total of 2,226 single family homes, 288 apartments and 501 townhomes, an increase of 1,091 single family homes. One additional access points is planned on Vaucluse Road west of Catenary Boulevard, which is planned as part of the Buildout conditions.”

(2) The voluminous case file is available at sccourts.org. It is not a complete file; very few depositional or discovery documents are available. 

(3) This was not the first class-action lawsuit involving townhomes in Aiken. In 2012 a class-action was granted for homes on Spencer Drive and surrounding neighborhoods. In 2014 another class-action was granted for more townhomes in the Eastgate area south of the former Aiken Mall. Lucey Law Firm also litigated those cases.