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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 15-75-45 SO AS TO PROVIDE FOR PUNITIVE DAMAGES WHEN A PERSON, WITH INTENT TO AVOID PAYMENT FOR A SERVICE RENDERED, KNOWINGLY SECURES PERFORMANCE OF A SERVICE BY DECEPTION, THREAT, OR FALSE TOKEN OR BY AGREEING TO PROVIDE COMPENSATION AND FAILS TO MAKE PAYMENT AFTER RECEIVING A DEMAND FOR PAYMENT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 75, Title 15 of the 1976 Code is amended by adding:
"Section 15-75-45. (A) A person who, with intent to avoid payment for a service that he knows is provided only for compensation, intentionally or knowingly secures performance of the service:
(1) for himself, or another for whom he is a guardian or an agent, by deception, threat, or false token; or
(2) by agreeing to provide compensation and after the service is rendered fails to make payment after receiving notice demanding payment.
(B) For purposes of this section, intent to avoid payment is presumed if the person left the premises where the service was rendered without paying for the service or expressly refused to pay for the service in circumstances where payment is ordinarily made immediately upon the service being rendered.
(C) If payment is not made when the services were provided, notice of payment due must be sent by the service provider by registered or certified mail, return receipt requested, to the address of record for the person who received the services, or who is a guardian or an agent for the person who received the services.
(D) If written notice is given in accordance with subsection (C), it is presumed that the notice was received no later than ten days after it was sent.
(E) A person who fails to pay for services received, as provided for in this section, is presumed to have committed fraud in obtaining these services. A person who brings an action for actual damages for nonpayment is also entitled to punitive damages in accordance with the following:
(1) for a first occurrence by a defendant, one thousand dollars;
(2) for a second occurrence by the same defendant, two thousand five hundred dollars;
(3) for a third occurrence by the same defendant, five thousand dollars.
(F) It is a defense to an action brought pursuant to this section that:
(1) the defendant secured the performance of the service by giving a postdated check to the person performing the service; and
(2) the person performing the service or any other person presented the check for payment before the date on the check."
SECTION 2. This act takes effect upon approval by the Governor.
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