Opinion ID: 2509899
Heading Depth: 3
Heading Rank: 1

Heading: Estoppel Against the State

Text: Generally, estoppel will not lie against a governmental body for the unauthorized acts of its officers and agents. Townes Assoc., Ltd. v. City of Greenville, 266 S.C. 81, 87, 221 S.E.2d 773, 776 (1976). However, under certain circumstances, the State can be subject to the estoppel doctrine. Id. When agents or officers of a governmental body act within the proper scope of their authority, the government cannot escape liability on a contract within its power to make. Id. Additionally, the government may be estopped in matters that do not affect the exercise of its police power or the application of public policy. Grant v. City of Folly Beach, 346 S.C. 74, 81, 551 S.E.2d 229, 232 (2001). In determining whether an agent of the State acted within its authority, the law is clear that [a] public officer derives his authority from statutory enactment, and all persons are in law held to have notice of the extent of his powers, and therefore, as to matters not really within the scope of his authority, they deal with the officer at their peril. Baker v. State Highway Dep't, 166 S.C. 481, 490, 165 S.E. 197, 201 (1932), rev'd on other grounds by McCall by Andrews v. Batson, 285 S.C. 243, 329 S.E.2d 741 (1985). The record is replete with testimony that Retirement Systems agents told Retirees that upon entering the working retiree program, they would not be required to make contributions to the system. These agents were, no doubt, representing the law as it stood at the time. However, even if this Court found that the Retirement Systems and its agents made representations that caused the Retirees to prejudicially rely, because this Court has ruled that the Working Retiree statute did not create a binding contractual right, estoppel cannot lie against the state, as these representations were made outside of the agency's authority. Therefore, we reverse the circuit court's estoppel holding.