STAR v. TI OLDFIELD DEVELOPMENT, LLC

Nos. 18-2202, 18-2205.

962 F.3d 117 (2020)

Rob STAR, Derivatively and on behalf of all Nominal Defendants, Oldfield Community Association, LLC, and Oldfield Club, LLC, and on behalf and for Oldfield Community Association, LLC's and Oldfield Club, LLC's respective members, Plaintiff-Appellant, v. TI OLDFIELD DEVELOPMENT, LLC, TI Oldfield Operations, LLC, by and through their respective Board of Directors, John Does 1-10, Individually and as Directors between the time periods 2010-2017, including Phillip Galbreath and I. William Stolz, III; Oldfield Holdings GA, LLC; SF Capital, LLC; SF Operations, LLC; Jamie D. Selby, Individually and as Managing Member of Elliot Group Holdings, LLC; Elliot Group Holdings, LLC; Oldfield Community Council (2013-2015), including Jay Barr and Richard Price, by and through its respective Board of Directors, John Does 11-20; Oldfield Club (2010-2017), by and through its respective Board of Directors, John Does 21-30, including Jay Barr, Phillip Galbreath and I. William Stolz, III; Oldfield Community Association (2010-2017), by and through its respective Board of Directors, John Does 31-40, including Richard Price, Phillip Galbreath, and I. Willian Stolz, III; Bald Eagle Partners LLC; BEP Oldfield, LLC, by and through their respective Board of Directors (John Does 41-50); Jay Barr; Richard Price; William Stolz, III; Phillip Galbreath; Oldfield Community Association, LLC; Oldfield Club, LLC, Defendants-Appellees. Rob Star, Derivatively and on behalf of all Nominal Defendants, Oldfield Community Association, LLC, and Oldfield Club, LLC, and on behalf and for Oldfield Community Association, LLC's and Oldfield Club, LLC's respective members, Plaintiff-Appellant, v. TI Oldfield Development, LLC, by and through their respective Board of Directors, John Does 1-10, Individually and as Directors between the time periods 2010-2017, including Phillip Galbreath and I. William Stolz, III; TI Oldfield Operations, LLC, by and through their respective Board of Directors, John Does 1-10, Individually and as Directors between the time periods 2010-2017, including Phillip Galbreath and I. William Stolz, III; Oldfield Holdings GA, LLC; SF Capital, LLC; SF Operations, LLC; Jamie D. Selby, Individually and as Managing Member of Elliot Group Holdings, LLC; Elliot Group Holdings, LLC; Oldfield Community Council (2013-2015), including Jay Barr and Richard Price, by and through its respective Board of Directors, John Does 11-20; Oldfield Club (2010-2017), by and through its respective Board of Directors, John Does 21-30, including Jay Barr, Phillip Galbreath, and I. William Stolz, III; Oldfield Community Association (2010-2017), by and through its respective Board of Directors, John Does 31-40, including Richard Price, Phillip Galbreath, and I. Willian Stolz, III; Bald Eagle Partners LLC; BEP Oldfield, LLC, by and through their respective Board of Directors (John Does 41-50); Jay Barr; Richard Price; William Stolz, III; Phillip Galbreath; Oldfield Community Association, LLC; Oldfield Club, LLC, Defendants-Appellees.

United States Court of Appeals, Fourth Circuit.

Decided: June 10, 2020.


Attorney(s) appearing for the Case

Denise L. Savage , SAVAGE LAW, PLLC, Beaufort, South Carolina, for Appellant. Merritt G. Abney , Matthew W. Orville , NELSON MULLINS RILEY & SCARBOROUGH, LLP, Charleston, South Carolina, for Appellees TI Oldfield Development, LLC; TI Oldfield Operations, LLC; SF Operations, LLC; SF Capital, LLC; Oldfield Holdings GA, LLC; I. Williams Stolz; and Phillip Galbreath. Ian S. Ford , Ainsley F. Tillman , FORD WALLACE THOMSON LLC, Charleston, South Carolina, for Appellees Oldfield Club and its Post-Turnover Board of Directors. Krista M. McGuire , A. Smith Podris , PARKER POE ADAMS & BERNSTEIN LLP, Charleston, South Carolina, for Appellees Oldfield Community Council, LLC; Richard Price; and Jay Barr. Joseph E. DaPore , Russell G. Hines , YOUNG CLEMENT RIVERS, LLP, Charleston, South Carolina, for Appellees Oldfield Community Association, improperly named as "Oldfield Community Association, LLC," and Richard Price and John Does 31-40 in their capacity as community-elected Board Members of the same Post-Turnover. Stephen Bucher , BUCHER LEGAL, LLC, Mt. Pleasant, South Carolina, for Appellee Richard Price, in his capacity as a community-elected member of the Board of Directors for Oldfield Community Association Pre-Turnover. Matthew Tillman , WOMBLE BOND DICKINSON (US) LLP, Charleston, South Carolina, for Appellee BEP Oldfield, LLC. Keri M. Martin , WEINER SHEARHOUSE WEITZ GREENBERG & SHAWE, LLP, Savannah, Georgia, for Appellee Bald Eagle Partners, LLC. Jared H. Garraux , Carmen V. Ganjehsani , RICHARDSON PLOWDEN & ROBINSON, PA, Columbia, South Carolina, for Appellee Oldfield Community Association, LLC, by and through its respective Board of Directors, including Phillip Galbreath and I. William Stolz, III. Thomas C. Taylor , LAW OFFICE OF THOMAS C. TAYLOR, LLC, Hilton Head, South Carolina, for Appellee Jamie D. Selby, Individually and as Managing Member of Elliot Group Holdings, LLC.

Affirmed in part and dismissed in part by published opinion. Judge Agee wrote the opinion, in which Judge Thacker and Judge Rushing joined.


After the Boards of Directors responsible for the management of Oldfield, a residential community in South Carolina, filed lawsuits raising claims related to its development, Rob Star, a resident, filed a derivative action alleging similar claims against nearly identical defendants. The district court thereafter dismissed his...

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