C. Limitations on Damages Against Charitable Organizations

• Library: South Carolina Damages (SCBar) (2009 Ed.)

C. Limitations on Damages Against Charitable Organizations

Charitable immunity protected charitable organizations from liability for tortious conduct.⁵⁵ Even if an organization procured liability insurance, no liability was created where the charity was otherwise immune from liability.⁵⁶ However, charitable organizations were not immune from liability in actions involving trespass and nuisance⁵⁷ or wholly commercial activity.⁵⁸

The South Carolina Supreme Court first limited charities' tort immunity in 1973, holding that charities could not assert charitable immunity as a defense to intentional torts.⁵⁹ In 1977, the court modified the doctrine of charitable immunity to allow damages against charitable hospitals if the hospital heedlessly and recklessly disregarded the plaintiff's rights.⁶⁰ This modification did not extend to charities other than hospitals.⁶¹

One month after the modification of charitable immunity by the supreme court, the legislature imposed a $100,000 statutory limit on liability in tort actions against charitable hospitals or medical facilities. The 1977 statute also limited damages against state hospitals and medical facilities.⁶²

The supreme court subsequently abolished the doctrine of charitable immunity for tortious conduct in its entirety, holding that the rule no longer served a legitimate purpose.⁶³ In response, the legislature enacted the South Carolina Solicitation of Charitable Funds Act in 1984 which limited liability for all charitable organizations.⁶⁴ The legislature retained the $100,000 statutory cap of the 1977 statute for charitable and governmental hospitals⁶⁵ but extended the liability for all other charitable organizations to $200,000.⁶⁶

The South Carolina Supreme Court found that the judicial abolition of charitable immunity implicitly overruled the 1977 statutory limits on liability for hospitals.⁶⁷ However, because the 1984 caps were not applicable in the case, the court did not rule on the constitutionality of the 1984 statutes.⁶⁸ When subsequently faced with the question of the constitutionality of the statutory caps for charities, the supreme court held that the distinction between charitable hospitals and other charitable organizations had no rational basis and, therefore, violated equal protection.⁶⁹

In 1994, the legislature recodified the South Carolina Solicitation of Charitable Funds Act⁷⁰ and eliminated the distinction between the liability of hospitals and other charities. The statutory cap was also...