N. Waste

• Library: South Carolina Business Torts (SCBar) (2021 Ed.)

N. WASTE

Although it is rarely asserted in commercial lawsuits brought in South Carolina, the common law tort action of waste is recognized under South Carolina law and has been pleaded in commercial disputes.⁶¹⁷

1. Historical Background - Property Roots⁶¹⁸

At common law, waste is traditionally defined as "any permanent injury to lands, houses, gardens, trees, or other corporeal hereditaments done or permitted by the tenant of an estate less than a fee to the prejudice of him in reversion or remainder."⁶¹⁹ Further, "[w]aste is an action that may be committed by acts or omissions which tend to the lasting destruction, deterioration, or material alteration of the freehold and the improvements thereto or which diminish the permanent value . . . ."⁶²⁰ The focus of this section, not surprisingly, is on the law in South Carolina surrounding corporate waste.

2. Corporate Waste

While a cause of action for waste traditionally relates to the alteration, destruction, or deterioration of real property, there is also support that a claim of corporate waste may be asserted in situations where officers and directors of a corporation or other business organization squander corporate funds through acts of self-dealing. Indeed there are several cases in which shareholders have brought actions either against, or on behalf of the...