South Carolina Department of Health and Environmental Control v. Kennedy

Bell, Judge:

This appeal concerns the enforceability of a repayment provision in contracts authorized by the South Carolina Medical and Dental Scholarship and Loan Act. The South Carolina Department of Health and Environmental Control (DHEC), empowered by Section 59-111-540 of the Act to enter into these contracts for the State, sued Dr. Mark Kennedy for repayment of three times the amount of the loan Kennedy received under the contracts. The lower court granted Kennedy’s motion for summary judgment, finding the repayment provision unenforceable as a penalty and constituting involuntary…