A prominent South Carolina developer has launched a high-stakes legal battle seeking to recoup what he says are massive losses inflicted upon his businesses due to an alleged conspiracy of misinformation surrounding several projects.
The $120 million lawsuit — filed by Dick Stewart’s companies, Beaufort Inn, LLC, and 303 Associates, LLC — in a local court also aims to put an end to what Stewart calls a “malicious cycle of obstruction” he and his developments have endured for years, the Island Packet reported.
Graham Trask and his father, George G. Trask, known as vocal critics of Stewart’s projects, have been named as defendants in the lawsuit.
The heart of the conflict centers on new development projects proposed within Beaufort’s renowned historic district.
Stewart’s hotel and parking garage plans have received approval from the city but have faced delays due to court appeals initiated by Graham Trask and the Historic Beaufort Foundation.
The lawsuit accuses the Trasks of utilizing disinformation, threats of litigation, and intimidation tactics to halt the downtown projects.
Stewart claims that the Trasks and HBF have been colluding, aiming to undermine the approved development projects through misinformation campaigns and legal challenges.
The lawsuit points to George Trask’s online news site, The Beaufort Tribune, as a platform used to spread disinformation about 303 Associates and its projects. Renderings of the hotel were particularly targeted in the alleged misinformation campaign, with one rendering titled “The Red Menace” showing a large, imposing building labeled as a Marriott Hotel.
The lawsuit claims these renderings intentionally misrepresent the project.
“The renderings are the equivalent of lies, as they are intentionally deceptive and falsely depict the mass, scale and height of the Hotel Project in an obvious attempt to inflame the viewer,” the lawsuit says, according to the outlet.
Stewart says that the city conducted thorough studies, concluding that the buildings would not overwhelm the surrounding neighborhood, as claimed by the Trasks and HBF. The 70-room hotel is set to expand the existing Beaufort Inn, while the parking structure will replace an existing parking lot used by the inn, remaining accessible for public use.
Stewart seeks $40 million in actual damages attributed to lost income, inflation-related material and labor cost increases due to construction delays, and an additional $80 million in punitive damages covering harm to reputation, personnel time, and legal expenses, the outlet says.
The legal battle represents the latest chapter in a long-standing feud between 303 Associates, the Beaufort Inn, and their critics over the development of projects within the historic district.
While the Trasks and HBF have led the opposition against Stewart’s projects, recent court decisions have sided with the city and 303 Associates in upholding project approvals.
— Ted Glanzer