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Amisub of S.C., Inc. v. S.C. Dep't of Health & Envtl. Control & the Charlotte-Mecklenburg Hosp. Auth.

Citations: 813 S.E.2d 719; 423 S.C. 50Docket: Appellate Case No. 2017-000984; Opinion No. 27792

Court: Supreme Court of South Carolina; April 25, 2018; South Carolina; State Supreme Court

Narrative Opinion Summary

The case involves a dispute over the granting of a certificate of need (CON) for an acute-care hospital, with competing applications from several entities, including a petitioner from North Carolina and Amisub, a South Carolina entity. The South Carolina Department of Health and Environmental Control (DHEC) initially granted the CON to Amisub, but upon challenge, the Administrative Law Court (ALC) sided with the petitioner, interpreting the South Carolina Health Plan favorably for them. However, in a subsequent contested case, the ALC reversed its decision and awarded the CON to Amisub. The petitioner appealed, arguing that the ALC's decision violated the dormant Commerce Clause by unjustly favoring a local entity. The central legal issue was whether this constitutional claim was preserved for appeal, given that it was initially raised in a post-trial motion. The court held that the dormant Commerce Clause issue was preserved despite not being raised in earlier proceedings because the petitioner had not anticipated the need to do so after a favorable initial ruling. The decision of the appellate court was reversed, and the case was remanded for a merits ruling on the dormant Commerce Clause issue, with an order for expedited consideration given the prolonged process since the original CON application.

Legal Issues Addressed

Application of Dormant Commerce Clause

Application: The court considered whether the ALC's decision favored a local entity over an out-of-state entity, which could potentially violate the dormant Commerce Clause by unduly interfering with interstate commerce.

Reasoning: Petitioner posits that the ALC's ruling in the second case improperly restricted interstate commerce by favoring Amisub, a South Carolina entity, over Petitioner, a North Carolina entity, without justifiable basis in the Health Plan.

Issue Preservation under Dormant Commerce Clause

Application: The court determined that the dormant Commerce Clause issue was preserved for review even though it was not raised until a Rule 59(e) motion after an unexpected adverse decision.

Reasoning: The court reversed the appeals court's determination regarding the preservation of the dormant Commerce Clause issue and remanded the case for a merits ruling.

Practical Approach to Legal Issue Resolution

Application: The court emphasized a need for practicality in issue preservation, particularly when a party previously won the issue and did not anticipate its revival.

Reasoning: The ruling emphasizes that a party should not be punished for not addressing an issue it previously won, particularly when it did not expect the matter to arise again.