State guide · Southeast
South Carolina subrogation law guide
For causes arising on or after July 1, 1991, a plaintiff recovers reduced damages if its negligence is not greater than the defendant's, or the defendants' combined negligence. At exactly 50% the plaintiff recovers half; charts listing a 50% bar misstate Nelson.
South Carolina at a glanceSC
- Property damage
- 3 years
- Bodily injury
- 3 years
- Fault rule
- Modified, 51% bar
- Gov. notice
- None
Overview
South Carolina is often mislabeled on fault. Nelson v. Concrete Supply Co. replaced contributory negligence with a rule that lets a plaintiff recover when its negligence is not greater than the defendant's, so an insured found exactly 50% at fault recovers half, and with several defendants the comparison is against their combined negligence. That is a 51% bar, not the 50% bar some charts show. Limitation periods are uniform and short: three years for property damage, bodily injury and contract claims alike under S.C. Code 15-3-530, with a discovery rule, and an eight-year repose for construction claims. Joint and several liability changed for claims arising on or after January 1, 2026, when Act 42 of 2025 rewrote 15-38-15 to allocate fault to settling and identified nonparties and limit defendants under 50% to their own share. Public entity claims need no notice, but a verified claim filed within one year extends the Tort Claims Act suit deadline from two years to three.
Quick reference with citations
- Property damage SOL
- 3 years
- S.C. Code 15-3-530(3) to (5) (three years), with the discovery rule in 15-3-535
- Bodily injury SOL
- 3 years
- S.C. Code 15-3-530(5) (three years)
- Product liability
- 3 years from discovery (S.C. Code 15-3-530, 15-3-535); no product statute of repose; 8-year repose for real property improvements (15-3-640)
- Written contract
- 3 years
- Contract and indemnity recoveries
- Comparative fault rule
- Modified, 51% bar
- Nelson v. Concrete Supply Co., 303 S.C. 243, 399 S.E.2d 783 (1991)
- Government notice of claim
- No general statutory pre-suit notice
- South Carolina Tort Claims Act: no mandatory pre-suit notice. A claimant may file a verified claim with the agency within one year after the loss (S.C. Code 15-78-80). Suit is due within two years after the loss was or should have been discovered, or three years if a timely verified claim was filed (15-78-110). Damages are capped under 15-78-120.
Fault rule in practice
How South Carolina's rule changes a $50,000 recovery.
For causes arising on or after July 1, 1991, a plaintiff recovers reduced damages if its negligence is not greater than the defendant's, or the defendants' combined negligence. At exactly 50% the plaintiff recovers half; charts listing a 50% bar misstate Nelson.
Authority: Nelson v. Concrete Supply Co., 303 S.C. 243, 399 S.E.2d 783 (1991)
| Insured's share of fault | Recoverable in SC | Under pure comparative |
|---|---|---|
| 0% | $50,000 | $50,000 |
| 20% | $40,000 | $40,000 |
| 50% | $25,000 | $25,000 |
| 60% | Barred | $20,000 |
Doctrines that move the number
South Carolina doctrine checklist.
Made-whole doctrine
South Carolina case law has not squarely adopted the made-whole doctrine for property or casualty subrogation. For health insurers, S.C. Code 38-71-190 limits subrogation to benefits paid and lets the Director of Insurance disallow subrogation found inequitable, a statutory proration rather than an all-or-nothing rule.
Economic loss doctrine
South Carolina applies the economic loss rule to product and commercial claims, but Kennedy v. Columbia Lumber & Manufacturing Co. (1989) lets homeowners sue a residential builder in tort for latent defects that violate building codes or industry standards. Damage to other property remains recoverable in tort.
Joint and several liability
Under S.C. Code 15-38-15, as amended by Act 42 of 2025 for claims arising on or after January 1, 2026, the factfinder allocates fault among the plaintiff, defendants and settling or identified nonparties, and a defendant under 50% pays only its share. The gross negligence and alcohol exceptions were removed; intentional conduct and illegal drug exceptions remain.
Anti-subrogation and waiver
General rule: no subrogation against the carrier's own insured or co-insureds for the covered loss. Check lease and construction contract waivers of subrogation before demand.
Practice notes
Working South Carolina subrogation files.
- 1
Apply Nelson exactly. Example: a carrier pays $22,400 on a 2022 Toyota Camry after a Charleston intersection collision. At a 50/50 split it recovers $11,200; at 51% insured fault, nothing. With two adverse drivers at 30% and 25%, an insured at 45% is compared with their combined 55% and still recovers 55% of the loss.
- 2
Check the accrual date before applying the 2026 rules. For claims arising on or after January 1, 2026, defendants can put settling parties and identified nonparties on the verdict form, and any defendant under 50% pays only its share. On a multi-contractor fire, pursue every responsible trade early, because empty-chair allocation reduces what the remaining defendants pay.
- 3
Contract claims get no extra time: written contracts run three years under 15-3-530(1), the same as torts, unless the instrument is under seal (20 years under 15-3-520). Calendar lease indemnity and contractor hold-harmless recoveries with the tort claim, measured from breach or discovery, rather than assuming a longer contract period.
- 4
Against public entities, file a verified claim within one year of the loss whenever the claim has value. It extends the Tort Claims Act suit deadline from two years to three, but it must state the circumstances, extent, time and place of the loss, the people involved and the amount claimed, or courts hold the claimant to two years.
- 5
Ishqkala's SOL Tracking Engine applies the South Carolina Tort Claims Act three-year deadline only when a verified claim is logged in the file within one year of the loss. Otherwise the public-entity alert runs to the two-year suit deadline, with escalation to recovery counsel 90 days before it expires for a filing decision.
Key cases
Nelson v. Concrete Supply Co.
303 S.C. 243, 399 S.E.2d 783 (1991)
Replaced contributory negligence with modified comparative negligence for causes arising on or after July 1, 1991, allowing recovery when the plaintiff's negligence is not greater than the defendants' combined negligence.
Kennedy v. Columbia Lumber & Manufacturing Co.
299 S.C. 335, 384 S.E.2d 730 (1989)
Allowed homeowners to recover in tort against a residential builder for latent defects violating building codes or industry standards, a key exception to the economic loss rule for construction recoveries.
Inter-company arbitration
Arbitration Forums resolves most South Carolina carrier-to-carrier auto and property disputes, compulsory for signatories up to $100,000 in total company-paid damages. Arbitrators apply South Carolina law, so a 50/50 split still pays half under Nelson. For losses arising on or after January 1, 2026, expect responding companies under 50% fault to argue several-only liability; name every member company involved. Claims against public entities follow the Tort Claims Act track instead.
How Ishqkala applies this guide
SC rules, built into every score.
- Opportunities with a South Carolina loss state are calendared against the 3 years property damage period or the 3 years bodily injury period, whichever controls the claim type.
- The insured's estimated fault share is applied under modified, 51% bar before recoverable dollars are scored.
- Public-entity claims are flagged for counsel review because notice and immunity rules vary by entity.
- Alerts fire at 180, 90, 45 and 15 days before the controlling deadline.
Other modified, 51% bar jurisdictions
FAQ
South Carolina subrogation FAQ
3 years (S.C. Code 15-3-530(3) to (5) (three years), with the discovery rule in 15-3-535). A subrogating carrier generally takes the insured's claim subject to the same limitation period, usually measured from the date of loss.
Modified, 51% bar (Nelson v. Concrete Supply Co., 303 S.C. 243, 399 S.E.2d 783 (1991)). For causes arising on or after July 1, 1991, a plaintiff recovers reduced damages if its negligence is not greater than the defendant's, or the defendants' combined negligence. At exactly 50% the plaintiff recovers half; charts listing a 50% bar misstate Nelson.
South Carolina Tort Claims Act: no mandatory pre-suit notice. A claimant may file a verified claim with the agency within one year after the loss (S.C. Code 15-78-80). Suit is due within two years after the loss was or should have been discovered, or three years if a timely verified claim was filed (15-78-110). Damages are capped under 15-78-120.
South Carolina case law has not squarely adopted the made-whole doctrine for property or casualty subrogation. For health insurers, S.C. Code 38-71-190 limits subrogation to benefits paid and lets the Director of Insurance disallow subrogation found inequitable, a statutory proration rather than an all-or-nothing rule.
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