One lawsuit remains over failed Panthers HQ site: York County against Rock Hill

One lawsuit remains pending in South Carolina courts over the failed Carolina Panthers headquarters in Rock Hill. It could stay that way for another year.

When a federal judge signed off in December 2022 on the bankruptcy deal for the failed Carolina Panthers South Carolina headquarters, it didn’t resolve York County’s breach of contract claim against the city of Rock Hill.

York County got its $21 million back it gave in Pennies for Progress Road tax money for road improvements. The city got the 245-acre property back and is trying to sell it to developers. But York County’s lawsuit claimed Rock Hill was obligated to issue at least $135 million in bonds before the project failed.

The county’s lawsuit remained in limbo until this week, when York County Judge Dan Hall struck the case from the trial docket for up to a year. The sides can ask the court to restore the case to the docket, according to the order.

The order states: “This matter should be stricken from the docket with leave to restore upon motion made within one (1) year of the date of this order... this matter be and is hereby removed from the active roster and, upon this case being restored, shall be restored to the trial roster.”

Scott Bauries, a University of South Carolina law professor who is an expert in civil procedure, said the ruling means the case between York County and Rock Hill is paused.

It’s unclear where the case goes from here.

Through its lawyers, the city declined comment on the order.

Efforts to reach the lawyers representing York County were unsuccessful.

The legal battle

The Panthers practice site deal was supposed to be worth as much as $2 billion in economic impact for the city and county, but it never was finished.

County government said it suffered after the alleged breach of contract because of exposure to rising construction, labor and material costs for Mount Gallant Road improvements; loss of interest income on the Pennies for Progress Tax funds; and lost tax revenue and economic benefits.

“The City of Rock Hill has failed to live up to its end of the bargain...” the lawsuit states. “The City of Rock Hill breached these agreements by failing to issue those bonds.”

Rock Hill denied the county’s allegations in June 2022, stating in court documents and a written statement to the media Rock Hill did not violate any contract and was not required to issue bonds.

How did the lawsuit get to this point?

It’s not the first time city-county tensions have flared, but the pending lawsuit has its roots in the June 1, 2022 bankruptcy filing by GT Real Estate, the company created by Panthers owner David Tepper to oversee the Panthers headquarters site.

York County filed the lawsuit about a week later in June 2022 in South Carolina state court in York County, against Rock Hill and three David Tepper companies, Appaloosa Management LP, DT Sports Holding LLC, and DT Sports Holding Inc.

Days later in June 2022, Rock Hill filed documents to have the case moved from York County’s state court to federal court in Columbia. Then it was moved yet again to Delaware as part of the bankruptcy negotiations.

All claims against the Tepper companies were terminated and withdrawn from the lawsuit as part of the bankruptcy deal, court records show.

After bankruptcy finished, the suit was sent back to state court in York County. On Jan. 23, Judge Hall signed a court order that kept the lawsuit going.

“It is agreed that this order does not impact any remaining claims between Plaintiff (York County) and Defendant The City of Rock Hill.” Judge Hall’s Jan. 23 order stated.

The case was paused by Hall’s order after no action was taken when the two sides had a video status conference on the case in January.