S.C. Court Orders Preston to Repay County $1.1 Million Severance

Updated, 7:30 p.m. with statement from Preston attorneys

The South Carolina Court of Appeals said today that former Anderson County Administrator Joey Preston will have to pay back the $1.1 million serverance he received when he resigned in 2008.

The court ruled the severance null and void, and suggested that Preston's retirement account might be a source of income for the repayment. The court found the four council members who voted for the severance had a conflict of interest and that lower courts were in error in previous rulings. Preston will also be liable for legal fees, which have been estimated at between $600,00-$800,000.

The court found the severance was voted on in absence of a quorum, and that Preston can no longer pursue a counter-suit against Anderson County for breach of contract.

This ruling comes on the heels of last year's court ruling requiring Preston to repay $1.2 million in the former Anderson County Councilman Ron Wilson's silver Ponzi scheme. Wilson is currently serving a 17-year prison sentence in the case. The court in the silver case also had suggested the money be paid from Preston's retirement fund.

It is unlikely Preston has the resources to repay either/both cases, said one source in the case.

The ruling also reversed earlier court decisions which held the county acted improperly in seek remedy in the case against Preston.

The appeals court is sending the ruling back to the lower courts to "determine the rights and remedies of the parties in light of this opinion."

Anderson County has spent approximately $3 million to date on legal fees relating to the Preston case.

Attorneys for Preston told the Anderson Observer Wednesday night, the matter is still in the hands of the courts. There statement, released to the Observer at 7:19 p.m. is as follows:

""We have only just received the South Carolina Court of Appeal’s ruling from earlier today and have not had a chance to analyze the opinion, nor discuss it with our client. After a cursory review, we do have several concerns about the decision’s legal reasoning and findings. Once we have the opportunity to review the opinion more closely and discuss the ruling with Mr. Preston, we will decide how best to proceed. Based upon the Court of Appeals’ ruling, however, it does appear the litigation will inevitably continue, whether in the trial or appellate courts, since the opinion remands the case to the trial court for additional proceedings.”

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