A neighbour who hadn’t even moved in yet got a beloved backyard swim school shut down because the lessons were outdoors.
Now the veteran instructor is suing, and the paper trail reads like a how‑to guide for torpedoing a quiet home business – with a timely warning for Australians running enterprises from home.
For seven years, Columbia, South Carolina swim teacher Libby Souder has taught children and adults in her backyard pool, earning praise for her work with students of all ages, including young kids with special needs.
The city approved her home business in 2018 – fully aware the pool was outdoors – and renewed her licence annually without fuss.
That changed when a soon‑to‑be neighbour, still under contract and not yet living next door, began emailing officials.
RELATED
Homeowner hit with $247k fine for parking on grass
Council demands homeowner’s yard for building permit
Elderly couple faces $101k bill for illegal granny flat
Libby Souder teaching a swim lesson in her backyard pool. Source: Institute of Justice
The veteran swim teacher has been successfully conducting lesson for seven years. Source: Institute of Justice
“I believe all property owners have the legal right to ‘peaceful enjoyment’ of their homes,” the neighbour wrote in emails obtained by The Post and Courier.
“To me, this issue will clearly deter my ability to peaceful enjoyment.”
They told the city they had heard from other locals that Souder’s business was a nuisance, adding, “I’ve had conversations with all three neighbours adjacent to this business that is being run. All three have said ‘It is an issue that needs to be addressed’.”
City staff initially replied that noise violations were subjective and typically handled by the Columbia Police Department.
The neighbour then shifted tack, arguing that because Souder’s pool was not a fully enclosed structure, her lessons breached zoning laws.
Under Columbia’s Unified Development Ordinance, home‑based businesses must be conducted indoors or “within a fully enclosed, lawfully approved structure.”
An aerial image of the pool which only gets used for classes a couple of months a year. Source: Institute of Justice
The case has received widespread media attention. Source: Institute of Justice
“The pool would need to be an indoor pool!!!” the neighbour wrote on 26 March, 2025.
By April 8, they were declaring Souder was running “an illegal home occupation.”
Officials soon moved to enforce the long‑dormant indoor‑only rule and ordered Souder to shut down.
Souder has now teamed up with US public‑interest law firm the Institute for Justice, arguing the blanket ban on outdoor home businesses breaches South Carolina’s Constitution by unreasonably restricting how people use their property and earn a living.
She’s even installed a circular driveway to prevent on-street parking.
“Columbia’s ban on backyard swim lessons is a disservice, not only to me, but to children in our area,” Ms Souder said.
Her home-based lessons operate only a few months each year, four days a week, for a few hours a day.
“Libby simply wants to be able to earn an honest living by doing what she loves — teaching students how to swim,” IJ Attorney Robert Fellner said.
“Columbia’s ban serves no legitimate purpose and violates Libby’s constitutionally protected rights to earn an honest living and use her own property.”
Could this happen in Australia?
Australian councils do not generally ban outdoor home businesses outright, but they do tightly regulate home occupations to manage noise, traffic, parking and safety, and rules vary widely between jurisdictions.
If you run classes, therapy, fitness or beauty services from home, you may need specific approval and you will likely face limits on client numbers and hours, along with restrictions on signage and external works such as studios or pool areas used for lessons.
Ms Souder is now suing the council, arguing the blanket ban on outdoor home businesses breaches South Carolina’s Constitution by unreasonably restricting how people use their property and earn a living. Source: Institute of Justice
Standard home insurance often excludes business activities, so you should tell your insurer and consider public liability and professional cover if clients visit your property, because failing to disclose business use can void a claim.
The Australian Taxation Office can also claw back part of your main residence exemption when you sell if an area of your home is set aside exclusively for business and you claim occupancy expenses such as mortgage interest and council rates, with capital gains tax applying only to the relevant floor area and period used for business; by contrast, if you work from home on a laptop without a dedicated, exclusive area and do not claim occupancy expenses, you generally retain the full exemption.
English (US) · 