THI RD DI VI SI ON

DOYLE, P. J.

, REESE, J.

, and SENI OR A PPELLA TE JUDGE PHI PPS

N O T IC E : M otions for r e c ons i de r a tion m us t be

ph y sic a l ly r e ce iv ed i n our c le r k ’s offic e w ithin te n

da y s of the da te of de c is ion to be de e m ed tim e ly file d.

https ://w w w

. ga a ppe a ls .us /r ule s

M ay 5, 2022



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A22A 0480. S O U T H E R

N S T A R E N T E R PRISE CORPORATION v

. M CDONALD W INDW ARD PARTNERS, L.P.

R E E S E

, J u d g e.

M cDo n al d W i n d w ard Part n ers , L.P. (“ MW P”) s u ed So u th ern St ar En t erp ri s e

Co rp o rat i o n (“ So u t hern St ar”) (co l l ect i v el y , “ t h e p art i es ”) seek i n g d am ag es rel at ed

t o th e breach o f a co m

m erci al l eas e, i n ad d i t i o n t o at t orn ey fees

. So u t hern St ar fi l ed

an an s w e r a n d a co u n t ercl ai m s eek in g t o reco v er i t s s ecu ri t y d ep o s i t

. M W P

s u b s eq u en t l y fi l ed a m o t i o n fo r p art i al s u m m ary ju d g m en t o n i t s b reach o f co n t ract

cl ai m an d fo r su m

m ary ju d g m en t o n So ut h ern St ar’ s co u nt ercl ai m

. Th e t r i al co u rt

g ran t ed M W P’ s m o t i on

, an d So u t h ern St ar ap p eal ed

. Fo r t h e reas o n s s et fo rt h i n fra,

we affi rm i n p art an d rev ers e i n p art

.Vi ewed i n t h e li g h t m o s t fav o rab l e t o So u t h ern St ar, as t h e n o n-m ov i ng p art y

, 1

t h e reco r d s h o ws t he fo l l o w i n g

. Th e p art ies en t ered i n to a co m m erci al l eas e

ag reem en t (t h e “ Leas e”), wh i ch al l o wed So u t h ern St ar t o o ccu p y p ro p ert y l o cat ed in

Fo rs y t h Co u n t y

. Th e Leas e’ s t erm b eg an o n Au gu s t 1

, 2 0 1 6

, an d ran u nt il Au g u s t 3 1,

2 0 1 9

. Sh ort l y b efo re So u t h ern St ar o ccu pi ed t h e p ro pert y

, th e p art i es al so en t ered i n to

an ag reem en t t o ab at e t h e fi rs t t wo m o n t h s o f ren t by 5 0 p ercen t s o l o n g as So u t h ern

St ar d i d n o t “ d efau lt [ ] i n i t s o b l i g at i o n s u n d er t h e Leas e[.] ”

Pu rs uan t t o t he Leas e, ren t was d u e o n o r b efo re t h e fi rs t d ay o f each cal en d ar

m o nt h

, an d fai l ure t o p ay ren t wi t h in fi v e d ay s o f t h e d u e d at e res u l ted in a l at e fee

o f fi v e p ercen t o f t h e ren t p ay m en t o wed

. “ [F] ai l u re t o p a y s u c h a m o u n t wi t h i n t en

(1 0 ) d ay s [was ] an ev en t of d e f a u l t [.] ” Th e Leas e al s o req u i red So u t h ern St ar to

p ro v id e an es t op p el cert i fi cat e wi t h i n t en d ay s of a req u es t b y M WP

, t o m a i n t ai n

v ari o u s t y

p es o f i n s u ran ce, an d t o p ro v i de a s ecu ri t y dep o si t o f $ 8 ,3 1 0

. Th e Leas e

fu rt her p ro v id ed th at “ [u ] p o n th e o ccu rren ce o f an y ev en t o f d efau l t ” b y So u t h ern

St ar, M W P co ul d us e th e secu ri t y dep o s i t “ t o t h e ex t en t n eces sary t o m ak e g o o d an y

arrears o f ren t o r ot h er p ay m en t s d u e [M WP ] a n d a n y ot h er d am ag e

. . . cau s ed by

s u ch ev en t o f d efau l t .” Fi n al l y

, t h e Leas e st at ed t h at “ at t h e t erm i n at i o n o f t h i s Leas e

1 See La u ’s Co r

p . v. Ha s ki ns , 2 6 1 Ga. 4 9 1 (4 0 5 SE2 d 4 7 4 ) (1 9 9 1 ).

2b y l ap s e o f t i m e o r o t h erwi s e, [So u t h ern St ar s h al l ] d el i v er i m m ed i at e p os s es s i o n o f

t h e Prem is es t o [M W P] .” H o w ev er, i n t h e cas e o f a h o l d o v er t en an cy

, So u t h ern St ar

wo u l d p ay M W P “ an am o u n t eq u al t o t w o h un d red p ercen t (2 0 0 % ) o f t h e ren t in

effect o n t h e t erm i n at i on d at e.”

On Decem

b er 1 4, 2 0 1 6, MW P s en t So u t h ern St ar a l et t er s t at i n g t h at So u t h ern

St ar wa s i n d e f

a u l t

, in part

, fo r l at e ren t pay m en t s

, an d t h at i f it d i d n o t cu re t h e

d efau l t s

, t h e p rev i o u s l y ab at ed ren t wo ul d b eco m e d u e an d p ay ab le. M W P s en t a

s u b s eq u en t l et t er s t at i n g t h at b ecau s e So ut h ern St ar rem ai n ed i n d e f a u l t

, t h e

p rev i o u s l y ab at ed ren t

, i n ad d i t i o n t o l at e fees

, were d ue an d p ay ab l e, an d t h at M W P

wo u l d u s e t h e secu ri t y dep o s i t t o co v er t h es e am ou n ts

. Th e l et t er al so d em an d ed t h at

So u t hern St ar res t o re th e s ecu ri t y d ep o s i t t o t h e o ri g in al am o u n t

. So u t h ern St ar’ s

co u ns el res p on d ed

, as ki ng M W P fo r a b reak d o wn o f t h e l at e fees s o t h e part i es co u ld

“ s et t l e t h is u p .”

M W P s en t an o t her l et t er i n M arch 2 0 1 7 st at in g th at So u t h ern St ar rem ai n ed in

d efau l t fo r, i n t er al i a, fai li n g to m ak e t i m el y ren t p ay m en ts an d fo r fai l i n g t o res t o re

t h e s ecu ri t y dep o s i t

, w hi ch M W P h ad ap p l i ed to t he p rev i o u s p as t -d ue ren t an d l at e

fees

.

3Th e n ex t l et t er M W P s en t t o So u t h ern St ar reg ard in g l at e r e n t pay m en t s was

o n J u l y 1 2

, 2 01 9

, wh en i t s t at ed t h at So u t h ern St ar rem ai ned i n d efau l t an d o wed fees

fo r l at e ren t p ay m en t s fro m Feb ru ary 20 1 7 t o J u ly 2 0 19

. M W P s en t an o th er l et t er in

earl y Au g u s t

, ag ai n req u es t in g t h at So u th ern St ar p ay t h es e l at e fees an d res t o re t h e

s ecu ri t y d ep o s i t t o i t s o ri g in al am o u n t

, an d s t at i n g t h a t M W P h ad l earn ed fro m

an o th er t en an t t hat So u t hern St ar h ad d am ag ed t h e p rem i s es

.

M W P co n t act ed So u t h ern St ar ag ai n in m i d -Au g u s t d em an d i ng t h at i t v acat e

t h e p rem i s es an d hav e al l rep ai rs co m p let ed b y Au g u s t 3 1

, t h e en d o f th e Leas e’ s

t erm

, an d t h at So ut h ern St ar w o u ld b e l i ab l e fo r dam ag es rel at ed t o i t s fai l u re to

s u rren d er t h e p ro p ert y

.

On Sep t em

b er 3

, 2 01 9, aft er t h e Leas e’ s t erm h ad en d ed

, M W P s en t So u t h ern

St ar a l et t er d em an d i n g p o s s es s i o n of t h e p rem i s es b ecau s e So ut h ern St ar “ rem ai n [ed ]

i n p o s s es s i on of t h e Prem i s es an d [was ] h o l d i ng o v er.” On Sep t e m b e r 1 0

, M W P em ai l ed So u t h ern St ar s t at i n g t h at t o av o i d an as s e s s m e n t o f h ol d ov er ren t (i .e., 2 0 0

p ercen t o f t h e b as e ren t am ou n t ) an d a di s p o s s es s o ry p ro ceed in g

, So u t h ern St ar

s h o u ld rep ly b y 1 0 :0 0 a.m

. t he fo l l o wi n g m o rn in g i n d i c a t i n g t hat So ut h ern St ar n o

l o n g er cl ai m ed p o s s es s i on o f th e p rem i s es an d t h at M W P co u l d ch an g e t h e l o ck s

.

Al t h o u g h So u t h ern St ar’ s co u n s el rep l i ed earl y t h e m orn i n g of Sep t em b er 1 1 t h at s h e

4wo u l d t ry t o reach So u t h ern St ar, wh en M W P di d n o t recei ve an e-m ai l fro m So u t h ern

St ar s t at i n g t h at i t n o l o n g er cl ai m ed po s ses s i o n o f th e p rem i s es

, M WP i n f o rm ed

So u t hern St ar t h at i t wo u l d p ro ceed as i n d i cat ed i n t he p rev i o us e-m ai l

.

So u t h ern St ar res p on d ed t h e s am e d ay t h at i t h ad v acat ed t h e p rem i s es an d

rem o v ed al l o f it s p ro p ert y on o r b e f o r e t h e en d o f t h e t erm

, an d th at o n e o f i t s

em pl o y ees h ad at t em

p t ed t o t en d er k ey s t o a rep res en tat i v e o f M W P wh o had refu s ed

t o accep t t h em

. So u t h ern St ar al s o ad v i s ed t h at M W P co u ld ch an g e t h e l o ck s an d t h at

i t h ad b een free t o d o s o s in ce So u t h ern St ar h ad at t em p ted t o ten d er t h e k ey s

. M W P

res p o n d ed t h at n o s uch t en d er had o ccu rred

, b u t i t p ro ceed ed t o ch an g e t h e l o ck s o n

Sep tem b er 1 2 an d p ai d a t o t al o f $ 1 0 ,8 8 1 .8 8 t o rep ai r t h e i nt eri o r o f t h e p ro p ert y

.

M W P s u ed So u th ern St ar fo r b reach o f co n t ract an d s o ug h t t o reco v er d am ag es

u n d er t h e Leas e, an d So u th ern St ar fi l ed a res p o n se an d a co un t ercl ai m

. Fo l l o wi n g

a h eari n g

, t h e t ri al co u rt gran t ed M W P’ s m o t i o n fo r s um m ary ju d g m en t an d award ed

i t $ 13 ,0 3 2 .3 8 in d am ag es an d $ 2 ,0 0 1 .1 2 i n in t eres t b as ed o n th e “ co n t ract u al i n t eres t

rat e o f 8 %” co n tai n ed i n t h e Leas e. Th i s ap peal fo l l o wed

.

Su m m ary ju d g m en t i s p r o p e r w h en t h ere i s n o g en u i ne i s s u e o f

m at eri al fact an d t h e m o van t i s en t i t l ed to ju dg m en t as a m at t er o f l aw.

. . . W e ap p l y a d e n o vo s t an d ard o f rev i ew t o an ap peal fro m a g ran t o f

s u m m a r y ju dg m en t an d v i ew t h e ev i d en ce, an d al l reas o n ab l e

5co n cl u s i o n s an d i n feren ces d rawn fro m i t

, i n t he l i g h t m os t fav o rab l e t o

t h e n o n m ov an t

. 2

W i th t h es e g u i di n g p ri n ci p l es i n m i n d

, we n o w t u rn to So u t h ern St ar’ s cl ai m s o f erro r.

1

. So u th ern St ar arg u es t h at t h e t ri al co u rt erred i n g ran t i n g M W P ’ s p art i al

m o ti o n fo r s u m

m ary j u d gm en t on it s b reach o f co n t ract cl ai m

. Sp eci fi cal l y

, So u t h ern

St ar as s ert s t h at M W P was n o t en t i t l ed t o s um m ary ju d g m en t on t h e fo l l o w in g i s s u es :

( 1 ) d a m a g es s t em m i n g fro m rep ai rs t o t h e prem is es ; (2 ) l at e fees ; (3 ) p reju d g m en t

i n t eres t b as ed o n t h e rat e co n t ai n ed i n t he Leas e; an d (4 ) h o l d ov er ren t

.

(a) Rep a i r s

. So u t h ern St ar arg u es t hat t h e t ri al co u rt erred i n g ran t i n g s u m m ary

ju d g m e n t o n M W P’ s cl ai m fo r d am ag es s t em m i n g fro m i t s rep ai rs t o t h e prem i s es

,

i n p art

, b ecau s e MW P fai l ed t o es t ab l i s h t h e fai r m ark et v al ue o f t h e p rem i s es b efo re

So u t hern St ar’ s o ccu pan cy

.

Th i s Co u rt h as h el d t h at

i t i s es s en t i al t h at t h e p l ai n t i ff p ro v e w it h a reas o n ab l e d eg ree o f

cert ai n t y an d s p eci fi ci t y t h e co n d i t io n o f th e p rem i s es

, o r t h e p o rt i o n s o f

t h em i n q u es t i o n, b o t h at t h e i n cep t io n an d at t h e t erm i n at i o n o f th e

2 Na va j o Co n st r

. v. Br i

g h a m

, 2 7 1 Ga

. A p p

. 1 2 8 (6 0 8 SE2 d 7 3 2) (2 0 0 4 )

(ci t at i o n s an d p u n ct u at i o n o m i t t ed ).

6t en an cy

, o r t h a t [ it ] s h o w s p eci f i c a ct s o f wa st e o r da ma g e th e r e s u l t s

o f wh i ch a t t h e en d

o f t h e t er m h a d n ot

b een r ep ai r ed

. 3

Here, al t h ou g h M W P d i d n o t o ffer ev i d en ce of t h e p rem i s es ’ co n d i t i o n b efo re

So u t hern St ar’ s t e n a n c y, i t di d p res en t ev i d en ce o f s peci fi c act s o f d am ag e t h at

So u t hern St ar fai l ed t o rep ai r. In Au g u s t 20 1 9

, M W P i n fo rm ed So u th ern St ar t h at i t

h ad l e a r n e d f

r o m an ot her t en an t t h at So u t h ern St ar h ad d am ag ed t h e p rem i s es

. No t

o n l y w as s u ch dam ag e su b s eq u en t l y d et ai led i n p h o t o grap h s an d i n v o i ces d es cri b i n g

t h e c o s t s o f th e rep ai rs

, w h ich M W P p ai d fo r, b u t So u t h ern St ar al so s u b m i t t ed

t es t i m o ny t h at it h ad “ b u m p ed ” t h e wal l wi t h a fo rk l i ft an d d i d no t d en y d am ag i n g t h e

p ro p ert y

. Th u s

, b ecau s e M W P p ro v ed s p eci fi c act s o f d am ag e co m m itt ed b y So u t h ern

St ar, i t was n o t req u i red t o es t ab l i s h t h e co nd i t io n o f t h e prem is es p ri o r t o So u t h ern

St ar’ s o ccu p an cy

. 4

Ad d it i on al l y

, al t h o u gh So u t h ern St ar m ak es a p as s i n g as s e r t i o n t h at an y

p ro p ert y d a m a g e w a s ex cu s ed b ecau s e M W P fai l ed t o rem o ve i n t eri o r wal l s as t h e

p art i e s a g r e e d

, t h i s arg u m en t i s u n p ers u as i v e. W hi l e t h e Leas e co n t ai n ed p l an s to

3 S p a cema ker

, In c. v. Bo r o ch o

f f Pr o p er ti es

, 1 1 2 G a. Ap p

. 5 1 2

, 5 14 (1 ) (1 4 5

SE2 d 7 4 0) (1 9 6 5) (em

ph as i s s up p l i ed ).

4 See Ab er n et h

y v. Ca tes

, 1 8 2 Ga. Ap p. 4 5 6, 4 5 7 -4 5 8 (1 ) (3 5 6 SE2 d 6 2 ) (1 9 8 7 ).

7rem o v e i n t eri o r w al l s o n t he p ro p ert y t hat were n o t co m p l et ed , t h i s d o es n o t ex cu s e

So u t hern St ar’ s fai l u re t o refrai n fro m dam ag i n g t h e wal l s

. 5 T o ex cu s e t hi s d am ag e,

So u t hern St ar’ s “ n o n perfo rm an ce m u s t h av e been cau s ed b y co n d uct o f [M W P]

wh i ch m ad e [i t s ] p erfo rm an ce u s el es s o r im p o s s i b l e.” 6 Ev en th o u g h So u t h ern St ar

o ffered ev i d en ce th at it s rep res e n t a t i v e h ad i n fo rm ed M W P t h at “ t h e wal l s m ad e i t

h ard er to m an eu v er t h e fo rk l i ft s i n t h e Prem i ses [,] ” “ [n ] o t hi n g i n t h i s reco rd

. . . rai s es

t h e i s s u e t h at [M W P] m ad e [So u t h ern St ar’ s] p erfo rm an c e us el es s o r i m p os s i b l e.” 7

Th u s, So u t h ern St ar’ s ob l i g at i on t o refrai n fro m d am ag i n g t h e p ro p ert y ’ s w al l s was

n o t ren d ered i m

p o s s i b l e, an d t h ereb y n eg at ed

, s im pl y b ecau s e t he wal l s m ad e

m an eu v eri n g i t s fo rk li ft m o re d i ffi cu l t

.

Fi n a l l y

, So ut h ern St ar as s ert s t h at M W P m u s t p ro v e i t s em

p l o y ees were

n eg li g en t i n dam ag i n g t h e wal l s t o p rev ai l o n i t s cl ai m fo r d am ag es rel at ed t o t h e

rep ai rs

. W h i l e t h e Leas e d o es s t at e t h at “ Ten an t s h al l rep ai r an d p ay fo r an y d am ag e

cau s ed b y t h e n eg l i g en ce o f Ten an t

, o r Ten an t ’ s em p l o y ees

, ag en t s or i n v i t e e s

, o r

5 See Ot t v. Vi n evi l l e Mkt

. , 2 0 3 Ga. Ap p

. 8 0

, 8 0 -8 1 (1 ) (4 1 6 SE2 d 3 62 ) (1 9 9 2 ).

6 Id . at 8 0 (1 ); s ee OCGA § 1 3 -4 -2 3

.

7 L. D. F. Fa m i l

y Fa r m v. Ch a r t er b a nk

, 3 26 Ga. Ap p. 3 6 1

, 3 6 6 (3 ) (7 5 6 SE2 d

5 9 3 ) (2 0 1 4 ) (p u n ct uat i o n an d fo o t n o t e o m i t t ed ).

8cau s ed b y Ten an t ’ s d efau l t h ereu n d er[,] ” t h i s l an g u ag e fal l s wi t h i n t h e p a r ag rap h

t i tl ed “ LANDLORD’ S REPAIRS” an d do es not spe c if ic a lly a ddr e s s a ny da m ag e d o n e

t o t h e p rem i s es ’ wal l s. Th e s ub s eq u en t p arag rap h

, i n co n t ras t

, i s t i t l ed “ TENANT’ S

REPAIRS” an d s tat es

, i n p art

, t h at “ Ten an t s h al l no t dam ag e an y wal l or d i s t u rb t h e

i n t eg ri t y an d s u p po rt pro vi ded b y an y wal l an d s h a l l

, a t i t s s o l e co s t an d ex p en s e,

p ro m p t ly rep ai r an y d am ag e o r i n ju ry t o an y wal l cau s ed by T en an t o r i t s em p l o y ees

,

ag en ts

, o r i n v i t ees .” T h u s

, as t h i s p arag rap h ad d res s es t h e rep ai rs req u i red o f

So u t hern St ar, an d referen ces d am ag e t o th e p ro p ert y ’ s wal l s wi t h o u t referen ci n g

n e g l i g e n c e

, t h e Leas e wh en read as a wh o l e d o es n o t req ui re M W P t o es t ab l i s h

n eg li g en ce i n o rd er t o reco v er i t s rep ai r co s t s

. 8

Fo r t h es e reas o n s

, t h e tri al co u rt di d no t err i n g ran t i ng s u m m ary ju d g m en t o n

t h e i s s ue o f d am ag es s t em m i n g fro m rep ai rs m ad e t o t h e p rem i s es

.

8 See To wer Pr oj ect

s v. Ma r q u i s To wer

, 2 67 Ga. Ap p. 16 4

, 1 6 6 (1 ) (5 9 8 SE2 d

8 8 3 ) (2 0 04 ) (“ W e s h o u l d av o id an y co n s t ru ct io n t hat ren d ers p o rt io n s o f t h e co n t ract

l an g u ag e m ean i n g l es s. W h en a p ro v i s i o n s p eci fi cal l y ad dres s es t h e i s s u e i n q u es t i o n,

i t p rev ai l s o v er a n y co n fl i ct in g g en eral l an g uag e.”) (ci tat i on an d pu n ct u at i o n

o m it t ed ); s ee al s o No o r a n i C-S to r es v. Tr i co V Pet ro l eu m

, 2 8 1 Ga. Ap p

. 6 3 5

, 6 3 8 (1 )

(6 3 7 SE2 d 2 0 8 ) (2 0 0 6 ) (“ Th e l aw fav o rs a co ns t ru ct i o n th at w i l l u p h o l d t h e co n t ract

as a wh o le, an d t h e en ti re co n t ract s h o u ld b e read i n arri v i ng at t h e co n st ru ct i o n o f

an y p art .”) (ci t at i o n an d p u n ct u at i o n o m i t t ed ).

9(b ) La t e F ees

. So u t h ern St ar arg u es t h at t h e tri al co urt e r red i n g ran t i n g

s u m m ary ju d g m en t o n t h e i s s u e o f u n p ai d fees as s es s ed fo r l at e ren t. Sp eci fi cal l y,

So u t hern St ar as sert s t h at t h e fees co n s ti t u ted u n l i q u i d at ed d am ag es

, a nd the r e f o re t h e

co u rt s h ou ld h av e req u i red MW P t o p ro v e t he act ual d am ag es i t s u s t ai n ed

. So u t h ern

St ar al s o as s ert s t h at t h ere was a q u es ti o n o f m at eri al fact co n cern in g wh et h er M W P

wai v ed i ts ri g ht t o co l l ect t h es e fees u n d er t h e Leas e.

OCGA § 1 3 -6 -7 st at es t h at “ [i ] f th e p art i es ag ree i n t h ei r co n t r a c t wh at t h e

d am ag es fo r a breach s h al l b e, th ey are s ai d t o be l iq u i d at ed an d

, u n l es s t h e ag reem en t

v i o l at es s o m e p ri n ci p l e o f l aw, t h e p art i es are bo u nd t h ereb y .” Par a g r a ph 2 2 o f t h e

Leas e st at es th at “ [i ] n t h e ev en t Ten an t fai l s t o p ay an y in s t al l m en t o f ren t h ereu n d er

wi t h i n fi ve (5 ) d ay s aft er s u ch i n s t al l m en t i s d u e, t o h el p defray t h e ad d i t i o n al co s t to

Lan dl o rd fo r pro ces si n g s u ch l at e p ay m en t s

, Ten an t s h al l p ay to Lan d lo rd a l at e

ch arg e i n an am o u n t e q u a l t o fi v e p ercen t (5 %) o f s u ch i n s t al l m en t [.] ” Here, t h e

Leas e’ s l an g u ag e i s cl ear; fai l u re t o p ay ren t wi t h in fi v e d ay s o f t h e d at e d u e res u l t s

i n a fi ve p ercen t l at e fee b as ed o n t he am o un t o f ren t p ay m en t d u e. As t h i s l an g u ag e

s p eci fi ed an ag reed -u po n am o un t i n t h e cas e o f a l at e p ay m en t, t h e fee co n s t i t u t es

10l i qu i d a t e d d am ag es un d er OCGA § 1 3 -6 -7

, an d t he p art i es w ere b o un d b y t h e

co n tract ed am o u n t s

. 9

So u t h ern St ar, h o w ev er, s u m m ar i l y a s s ert s t hat becau s e th e L eas e s t at es t h at

t h es e l at e fees “ sh al l n o t b e co n s t ru ed as li q u i d at ed d am ag es ,” t hi s m ean s t h e fees

s h o u ld b e t reat ed as un l i q u i d at ed d am ag es

, an d M W P s h o u l d h av e p ro v en it s act u al

d am ag es t o reco v er u n d er t h e l at e-fee p ro v is io n

. Th i s arg u m en t i s u n c o n vi n ci n g as

t h i s p ro v i s i o n o f t h e L eas e, wh en read in t h e co n t ex t of th e en t i re ag reem en t

, i s

i n s u ffi ci en t t o al t er t h e n at u re o f t h es e fees u nd er O CGA § 1 3 -6 -7

. Parag rap h 2 2 .A

s t at ed t h at i n t he cas e o f a d efau l t b y So u t h ern St ar, M W P m ay t erm i n at e t h e Leas e

an d reco v er as l i q u id at ed d a m a g e s “ t h e wo rt h

, at t h e t i m e o f t h e award [ ] ” o f t h e

u n p ai d ren t “ earn ed at t h e t i m e o f t h e t erm i nat i o n [,] ” an d t h e am ou n t b y wh i ch an y

9 See Tu r n er v. At l a nt a Gi r l s ’ S ch o ol

, 2 8 8 Ga. Ap p

. 1 1 5

, 1 1 7 (6 5 3 SE2 d 3 8 0 )

(2 0 0 7) (h o l d in g t h at “ [w] h i l e t h e e n r o l l m en t co nt ract h ere d o es n o t u s e t h e l ab el

‘ li q u id at ed d am ag es ,’ t h e lan g u ag e u s ed is t h at o f a li q u id at ed d am ag es cl au se i n t h at

i t cl earl y s et s fo rt h wh at t h e d am ag es fo r a b reach s h al l b e”) (fo o t no t e o m i t t ed ). As

So u t hern St ar d i d n o t as s ert t hat t h e l at e fees co n s t i t u t ed i m p erm i s s i b le pen al t i es

,

n ei t h er o n ap p eal n o r i n th e t ri al co u rt

, we wi l l no t co ns i d er th i s i s s u e as i t i s b ey o n d

t h e s c o p e o f t h i s ap p eal

. See W ya t t Pr o ces s in g

v. Bel l Ir r i

ga t io n

, 2 9 8 Ga. Ap p

. 3 5,

3 6 (6 7 9 SE2 d 63 ) (2 0 0 9 ) (“ O n ap p eal

, th i s co u rt d o es n o t rev i ew i s s u es wh i ch were

n o t rai sed an d ru l ed o n b el o w.”) (ci tat i o n an d p u n ct u at i on o m i tt ed ).

11u n p ai d ren t ex ceed ed w h at M W P co u l d h av e o b t ai n ed t o rel e t t h e pro p ert y

. 1 0

Parag rap h 2 2 a l s o s t at ed t h at i f M W P t erm i n at ed th e Leas e un d er th i s p ro v i s i o n

“ r e m e d i es t h ereu n d er co n s t i t u t i n g l i q u i da t ed da ma g es s h al l b e [i t s ] ex cl u s i v e

rem ed ies [.] ” 1 1 Th us

, read i n g t h e Leas e as a wh o l e, t he l an g u ag e s t at i n g t h at fees fo r

l at e ren t p ay m en t s were “ n o t

. . . co ns t ru ed as l iq u i d at ed d am ag es ” was d es i g n ed t o

d i fferen ti at e t h e fees o wed fo r l at e ren t p ay m en t s fro m am o u n t s rel at ed to u n p ai d ren t

d u e i n t h e cas e of a t erm i nat i o n

, an d t o s peci fy t h at t h e l a t e fees were no t M W P’ s

ex cl u s i v e rem ed y i n th e ev en t o f a t erm i n at io n

. Th erefo re, t h e pl ai n l an g uag e o f t h e

Leas e s h ows t h at fees as s o ci at ed wi th l at e ren t were l i q u i d at ed d am ag es

. 1 2

1 0 Th e Leas e al s o s t at es t h at “ wo rt h a t t h e t im e of t h e award ” s h o u l d b e

cal cu l at ed b y a l l o wi n g in t eres t (1 ) i n t h e l es s o r o f ei g h t p ercen t p er an n um o r t h e

m ax i m u m rat e p erm i t t ed b y l aw fo r am o un t s s o u g h t u p t o t h e award or (2 ) s i x p ercen t

p er an n um fo r am ou n t s so u g h t fo r th e b al an ce o f t h e L eas e t erm aft er t h e t i m e o f t h e

award

.

1 1 (Em p has is s u pp l i ed ).

1 2 See Cr a b a

p p l e La ke Pa r c Co mmu n i t y A s sn

. v. Ci r ceo

, 3 25 Ga. Ap p

. 1 0 1,

1 0 5 (1 ) (a) (7 5 1 SE2 d 86 6 ) (2 0 1 3 ) (“ Th e card i n al ru l e o f co n s t ru ct i on i s t o as cert ai n

t h e i n ten t o f t h e p art i es

. . . . To d et erm i n e t h e i n ten t of t h e part i es

, al l th e co n t ract

t e rm s m u s t b e co n s i d ered t o g et h er i n arri v in g at t h e co n s t ru ct i o n o f an y p ar t

, a n d a

co n st ru ct i o n u ph o l d i ng t h e co n t ract i n w h o l e an d ev ery p art i s preferred .”) (ci t at i o n

an d p u n ct u at i o n o m i t t ed ); s ee al s o Kr u p p Rea lt y Co

. v. Jo el

, 1 6 8 Ga. Ap p

. 4 8 0

, 4 8 1

(1 ) (3 0 9 SE2 d 6 4 1 ) (1 9 8 3) (h o l d i n g t h at a l at e ch arg e l ab el ed as “ ad d i t i o n al ren t ” s t i l l

q u al i fi ed as l iq u i d at ed d am ag es u n d er OCGA § 1 3-6 -7 ).

12So u t h ern St ar al s o arg u es t h at M W P wai v ed i t s ri g h t t o co l l ect lat e fees b y n ot

s en d in g n o t i ces reg ard i n g t h es e fees fro m M arch 2 0 1 7 t o J u l y 2 0 1 9. Ho wev er, wh en

co n si d eri n g a p o s s i b l e wai v er, “ al l t h e at t en d an t fact s , t ak en t o get h er, m u s t am o u nt

t o an i n ten t i o nal rel i n qu i s h m en t o f a k no wn ri g h t

, i n o rd er t h at a wai v er m ay ex i s t .” 1 3

H ere, t h e Leas e s tat ed t hat “ Lan d l o rd ’ s accep t an ce o f t h e p ay m en t of ren t o r o t h er

p ay m en t s h ereu n d er aft er t h e o ccu rren ce o f an ev en t o f d efau lt s h al l n o t b e co n s t ru ed

as a w ai v er o f s u ch d efau l t

, u n l es s Lan d lo rd s o no t i fi es Ten an t i n w ri t i n g .” M o reo v er,

t h ere was n o ev i den ce t h at M W P i n t en d ed t o wai ve i t s ri g h t to s u ch l at e fees

. In fact

,

M W P rep eat ed l y s t at ed i n i t s co rres p o nd en ce t o So u th ern St ar th at

, p u rs u an t to

OCGA § 1 3 -4 -4

, it i n ten d ed t o rel y u p o n t h e ex a ct l an g u ag e of t h e L eas e an d t h e

ab at em en t l et t er, an d t h at i t wo u l d s tri ct l y en fo rce i ts ri g h t s

. As th i s Co u rt h as s t at ed

,

[w] h ere th e o n l y ev i den ce o f an i n t en t i on t o wai v e i s wh at a p art y d o es

o r fo rb ears t o d o

, th ere i s n o wai v er un l es s [i t s] act s o r o m i ss i on s t o act

are s o m an i fes t ly co n s is t en t wi t h an i n t en t t o rel i n q u i s h a t h en -k no wn

p art i cu l ar ri g h t or b en efi t th at no o t h er reas o n ab l e ex pl an at i o n o f t h e

co n d u ct i s p o s s i bl e. 1 4

1 3 F o r s yt h Co u n ty v. W

a t er s ca p e S vcs

. , 3 0 3 Ga. Ap p

. 6 2 3, 6 3 0 (2 ) (a) (6 9 4

SE2 d 1 0 2) (2 0 1 0) (ci t at i o n an d p u n ct uat i o n o m i t t ed ).

1 4 Och o a v. Co l d

wa t er C r e e k Ho meo wn er

s As s n

. , 3 61 Ga. Ap p

. 2 6 7, 2 7 0 (1 )

(8 6 3 SE2 d 7 3 0 ) (2 0 2 1 ) (ci tat io n an d p u n ct u at io n o m i tt ed ).

13T h u s

, t h e t ri al co u rt d i d n o t err i n g ran t i ng M W P’ s m ot i o n fo r s u m m ary

ju d g m en t o n t h e i s s u e o f d am ag es s tem m i n g fro m u n p ai d l at e fees

.

(c) Pr ej u d

g men t In t er es t

. So u t h e r n St ar arg ues t h at t he t ri al co u rt erred in

g ran t i n g s u m

m ary ju d gm en t o n t h e i s s u e o f p reju d g m en t i n t eres t . W e ag ree.

Th e t ri al co u rt award ed M WP $ 1 3,0 3 2 .3 8 i n “ u n co n t es t ed d am ag es ” an d

$ 2 ,0 0 1 .1 2 i n in t eres t “ b as ed o n t h e co n t ract ual in t eres t rat e of 8 % [.] ” Th e co u rt b as ed

t h i s award o f i n t e r e s t o n Parag rap h 2 2 .A o f t h e L eas e an d u s ed as t h e p eri o d to

cal cu l at e t h e i n t eres t t h e d at e of M W P’ s fi rs t d em an d l et ter, Sep tem ber 2 6

, 2 0 1 9

, an d

t h e d at e o f t h e co u rt ’ s o rd er, Au g u s t 2 7

, 2 02 1

. Ho wev er, as n ot ed ab o v e, Parag rap h

2 2 .A ap p l i es t o d am ag es av ai l ab l e t o M W P fo l l owi n g i t s d eci s i o n t o t erm i n at e t h e

Leas e i n t h e cas e o f d efau l t b y So u th ern St ar. T h e dem an d l et t er referen ced b y t h e

co u rt was i s s u ed al m o s t a m on t h aft er t h e L eas e’ s t erm ex pi red an d di d n o t referen ce

a t e r m i nat i o n o f t h e p art i es ’ ag reem en t

. As t h e part i es di d n o t t erm i n at e t h e Leas e

p u rs u a n t t o P a r a g rap h 2 2.A, b u t i n s t ead s o ug h t t o co ll ect un p ai d ren t an d fees an d

al l o w t h e Leas e t o co n t i n u e u n t i l t h e en d o f th e te r m

, a n award o f i n t eres t was n ot

av ai l ab l e t o M W P u n d er t h e u n am b i g u o us t erm s o f t h e p art i es ’ ag reem en t

. 1 5

1 5 See Ca s wel l v. An d

er s o n

, 2 4 1 Ga. A p p

. 70 3 (5 27 SE2 d 5 8 2 ) (2 0 0 0) (“ W h ere

co n tract l an g u ag e i s u nam b i g u o u s

, n o co n s t r u c t i o n i s neces s ary an d th e co u rt m u s t

s i m p l y en fo rce t h e co n t ract acco rd i ng to i t s cl ear t erm s.”). Ev en as su m i n g

, arg u en d o,

14Th u s

, u n d e r t h e p l ai n term s o f th e Leas e, M W P was n o t en t i t l ed t o s u m m ary

ju d g m en t o n i t s cl ai m f

o r p r e j u d g m en t i n t eres t

. 1 6 Th erefo re, we rev ers e t h e t ri al

co u rt ’ s ru l i n g.

(d ) Ho l d o ver R e n t. So u t h ern St ar arg u es t h at th e t ri al co u rt erred i n g ran t i n g

M W P su m

m ary ju d g m en t o n i t s cl ai m fo r h o l d o ver ren t. Sp eci fi cal ly

, So u t h ern St ar

arg u es t h at t h ere was a q u es t i o n o f m at eri al fact reg ard i n g wh et h e r So u t h ern St ar

act u al l y ret ai n e d p o s s es s i o n o f t h e p rem is es an d t hereb y tri g g ered t h e h o l d o v er

p ro v is i o n s . W e ag ree.

t h at i n t eres t u n d er t h i s parag rap h was av ai l ab l e, M W P wo u l d n o t h av e b een en t i t l ed

t o an award of i n t eres t o n t h e en t i re am o u n t o f d am ag es as p res en t ed

. Th e tri al co u rt

award ed d am ag es t o t al i n g $ 1 3 ,0 3 2 .3 8 b as ed o n a v ari et y o f ch arg es co n t ai n ed i n an

i n v o i ce M W P p rep ared an d su b m i t t ed t o So u t h ern St ar on Sep t em b er 1 6, 2 0 19

. Th es e

ch arg es i ncl u d ed

, i n t er al i a, l at e fees

, ret u rn ed ch eck fees

, rep ai r co st s

, h o l d o v er ren t

ch arg es

, an d u n pai d ren t

. Ho wev er, t h e Leas e st at ed t h at t h e ei g h t p ercen t i n t eres t

c o m p u t at i o n was a m et h o d fo r d et erm in i ng t h e “ wo rt h at t h e t i m e o f th e award ” o f

d am ag es t h at in cl u d ed (1 ) u n p ai d ren t earn ed at t h e t i m e o f t he Leas e’ s t erm i n at i o n;

o r (2 ) t h e am o u n t o f u n p ai d ren t t hat wo u l d h av e b een earn ed aft er t h e Leas e’ s

t erm i n at i o n u n t i l t he ti m e o f t h e award ex ceed s t he n et am o un t o f ren t t hat co u l d h av e

b een reas o nab l y o b t ai n ed by MW P u s in g reas o n ab l e d i li g en ce t o rel et t h e prem i s es

. Th u s, t h e Leas e d i d n o t p erm i t M W P to reco v er in t eres t b as ed o n i t em s u n rel at ed to

u n p ai d ren t s uch as rep ai r co s t s an d ret u rn ed ch eck fees

.

1 6 See Ca swel l

, 2 4 1 Ga. Ap p . at 7 03

.

15Parag rap h 1 9 of t h e Leas e s t at ed t h at at th e t erm i n at i o n o f t h e Leas e t h e t en an t

s h al l “ d el i v er i m

m ed i at e p o ss es s i o n o f t h e P r e m i s es t o Lan d lo rd .” Th e Leas e al s o

s t at es t h at

[i ] f Lan d l o rd ag rees i n wri t i ng t h at T en an t m ay h ol d o v er aft er th e

ex p i ra t i o n o r t erm i n at i o n o f t h i s L eas e, u n l es s t h e part i es heret o

o t h erwi se ag ree i n wri t i ng o n t h e t erm s o f s u ch h ol d i n g o ver,

. . . al l o f

t h e o t h er term s an d p ro v i s i o n s o f t h i s Leas e s h al l b e ap pl i cab l e du ri n g

t h at p eri o d

, ex cep t t h at Ten an t s hal l p ay Lan d l o rd fro m t i m e t o t i m e,

u p o n d em an d

, as re n t f

o r t h e p eri o d o f an y s u ch h o l d ov er, an am o u n t

eq u al to two h u n d red per c e n t ( 2 0 0 % ) o f t h e ren t i n effect o n th e

t erm i n at io n d at e.

M W P al l eg ed t h at So ut h ern St ar fai l ed t o v acat e t h e p rem i s es b y t h e en d of t h e Leas e

t erm an d d i d n o t ret u rn k ey s t o t h e p rem i s es u n t i l ap p ro x im at el y Sep t em b er 1 1

, 2 0 2 1.

Ho wev er, So u t h ern St ar o ffered co n t ras t i n g affi d av i t t es t i m o n y t h at i t “ rem o v ed al l

o f t h e p ro p ert y i n t h e Prem i s es fro m t h e Prem i s es a week b efo re t h e L eas e ex p i red o n

Au g u s t 3 1

, 2 0 19 [.] ” So ut h ern St ar al s o as s ert ed t h at k ey s t o t h e p rem i ses were o ffered

t o a rep res en t at i v e of M W P aft er t h e p ro p ert y h ad b een rem o v ed

, an d t h at th e M W P

rep res en t at i v e “ refu s ed t o t ak e t h e k e ys

. ” So u t h ern St ar fu rt h er p res en ted i n v o i ces

s h o wi n g t h at i t ren ted a m o vi n g t ru ck fro m Au g u s t 2 3 t o Au g u s t 2 5

, wh i ch So u t h ern

St ar cl ai m s was u s ed t o m o v e i t s p ro p ert y fro m t h e p rem i s es

.

16“ W h en v i ewed i n th e l i gh t m o s t fav o rab le t o [So u t hern St ar] as t h e n o n m o v i n g

p art y

, t he co n fl i ct in g affi d av i t s an d o th er ev i d en ce

. . . rai s e a q u es t i o n o f fact fo r t h e

ju ry as t o wh et h er [So u t hern St ar s ho u l d h av e b een as s es s ed h o ld o v er ren t.] ” 1 7 Th u s

,

b ecau s e t h ere is an i s s u e o f m at eri al fact co n cern i n g M W P’ s cl ai m fo r h ol d ov er ren t

,

we rev ers e t h e t ri al co u rt ’ s g ran t o f s u m m ary ju d g m en t

.

2

. So u t h ern St ar arg u es t hat t he t ri al co u rt erred i n g ran t i n g s um m ary ju d g m en t

fo r M W P o n t h e co u n t ercl ai m

. Sp eci fi cal l y

, So u t h ern St ar cl ai m s t h at M W P s h o u ld

n o t h av e been al l o wed t o u s e So u t h ern St ar’ s s ecu ri t y d ep o s it t o offs et am o u n t s o wed

i n p rev i o u s l y ab at ed ren t b ecau s e t h i s p u t MW P in a b et ter p o s i t io n t h an i t w o u ld

h av e b een i n h ad So u t h ern St ar n o t d efau l t ed

.

Th i s arg u m en t i s w i t ho ut m eri t

. Us i n g So u t h e rn St ar’ s secu ri t y d ep o s i t to

co l l ect p rev i o u s l y ab at ed ren t d i d n o t c o ns t i t u te a w i n d fal l fo r M W P. Rat h er, s u ch

act i on s i m

p l y ret u rn ed M W P t o i t s o ri g i n al p o s i ti o n b efo re i t ag reed t o ab at e t h e fi rs t

t wo m o n t h ’ s ren t

. 1 8 Th e l a n g u a g e o f t h e ab at em en t l et t er s t at ed t h at M W P wo u ld

1 7 Net s o ft As s o c. v. Fl a ir

s o f t

, Lt d

. , 3 31 G a. Ap p

. 3 6 0

, 3 6 3 (7 7 1 SE2 d 6 5 ) (2 0 1 5 )

(p u n ct u at i o n o m i t t ed ).

1 8 Cf. Ra f f er z ed er v. Zel l n er

, 27 2 G a. Ap p

. 7 28

, 73 1 (2 ) (6 1 3 SE2 d 2 2 9 ) (2 0 0 5 )

(h o l d i n g t h at t h e t ri al co u rt erred b y fai l i ng t o red uce ho m eo wn ers ’ award b y t h e

am ou n t s av ed in no t pay i n g co n t ract o r t h e fu l l co n tract p r i ce b ecau s e su ch a res u l t

co n st i t u t ed a wi n d fal l t o t he h om eo wn er).

17ab at e ren t fo r th e fi rs t t wo m o n t h s o f t h e Leas e’ s t erm b y 5 0 p ercen t

, b u t t h e ren t

wo u l d b e i m m ed i at el y d u e an d p ay ab l e “ [i ] n th e ev en t Ten an t d efau l t s i n i t s

o b l i g at i o ns u n d er t he Lea s e

. ” Su ch l an gu ag e es t ab l is hed a co n di t io n s u bs eq u en t

,

wh i ch So u t h ern St ar v i o l at ed wh en i t d efau l t ed

. 1 9

M o reo v er

, t h e cas e ci t ed b y So u th ern St ar, Ga i n es vi l l e Gl a s s Co

. v. Do n

Ha mmo n d

, In c.

, 2 0 i s d i s t i n g u i sh ab l e fro m t h e p res en t m atte r

. I n G ain es vi l l e Gl a s s Co

. ,

t h e ap p el l an t ref

u s ed t o i n s t al l wi n d o ws fo r t h e ap pel l ee at th e p rev i o u sl y ag reed

u p o n pri ce. 2 1 Th e ap p el l ee th en s ecu red an ot h er co n t ract o r t o i n s t al l t h e wi n d o ws at

a co s t g reat er t h an wh at t he ap p el l an t h ad ag reed t o ch arg e. 2 2 Th e ju r y a ward ed t h e

ap p el l ee t h e d i fferen ce b et ween wh at t h e ap p el l an t ag reed to ch arg e an d t h e u l t i m at e

co s t t h e ap p el l ee p ai d fo r t h e wo rk

. 2 3 W e h el d t h at t he award o f d am ag es was i n erro r

1 9 See S h er i d a n v. Cr own Ca

p i t a l Co r p

. , 2 5 1 G a. A p p

. 3 14

, 3 1 8 (2 ) (5 5 4 SE2 d

2 9 6 ) (2 0 0 1 ) (“ A co n di t i o n s ub s eq u en t t o a n en fo rceab l e co n t ract i s a term o f t h e

c o n t r a c t w i t h i n t h e i nt en t o f t h e p art i es t h at t h e h ap p en i n g o r no n o ccu rren ce o f a n

ev en t aft er t he co nt ract b eco m es b i n di n g u p o n t he p art i es

, wh i ch

, by p re-ag reem en t

o f t h e part i es

, cau s es t h e co n t ract t o term i n at e wi t h o u t fu rt h er d u t i es an d o b li g at i on s

o n an y p art y

. ”).

2 0 1 5 7 Ga. Ap p . 6 4 0 (2 7 8 SE2 d 1 8 2 ) (1 9 8 1 ).

2 1 Id

.

2 2 Id

.

2 3 Id

.

18as t he ap p el l ee was on l y en t it l ed “ t o b e p l aced i n t h e po s i ti o n i t wo u l d h av e b een h ad

ap p el l an t p erfo rm ed i t s part of t h e co n tract [,] ” an d t h ere w a s n o e v i d en ce t h e m o re

ex p en s i v e m at eri al s u s ed b y t he s eco n d co n t ract o r were n eces sary

. 2 4 Here, i n co n t ras t

,

M W P was n ot p laced “ i n a b et t er p o s i t i o n t h an [i t ] wo ul d hav e b een i n i f t h e co n t ract

h ad n o t b een b reach ed

. ” 2 5 Rat h er, MW P was ret u rn ed t o i t s o ri g i nal p o s i t i o n h ad n o

ab at em en t l et t er ex i s ted

, n am el y i t co l l ect ed t h e o ri gi n al am o un t of b as e ren t o wed

. 2 6

Th u s

, fo r t h e ab o v e-s tat ed reas o n s

, t h e t ri al co u rt d i d n o t err i n g ran ti ng M W P

s u m m ary ju d g m en t o n So u t h ern St ar’ s co u n t ercl ai m

.

Ju d g men t af fi r med i n p a r t a n d r ever s ed i n p a rt

. D o

yl e, P. J

. , a n d S e n i o r

Ap p el l a te Ju d

g e Her b er t

E. Ph i p p s co n cu r

.

2 4 Id . at 64 3 -6 4 4 (1 ).

2 5 Id . at 64 4 (1 ) (ci tat io n an d p u n ct u at io n o m i tt ed ).

2 6 See M a n n i n g & A s s o c. Per

s o nn el v. Tr iz ec P ro

p er t i es

, 2 1 2 Ga. Ap p

. 6 0 0,

6 0 1 (1 ) (4 4 2 SE2 d 78 3 ) (1 9 9 4 ) (affi rm in g t ri al co u rt ’ s g ran t o f s u m m ary ju d g m en t

en fo rci n g a l eas e p ro v i s i o n al lo wi n g fo r reco u p m en t o f p rev i ou s l y “ ex cu s ed ” ren t in

t h e ev en t o f t en an t ’ s d efau l t ).

19