THI RD DI VI SI ON DOYLE, P. J.

, REESE and BROWN, JJ.

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.

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H I S

C O U R T. A LL FILIN G S M U ST B E S U B M I TTE D WITH IN

TH E TIM E S S E T B Y

O U R C O U R T R U LE S

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June 29, 2021



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A2 1 A0 57 2 . STARKS et al . v . CARVER et al

.

R E E S E
, J u d g e.

Ro b ert St ark s an d At lan t a Part n ers R e a lty

, L L C

, d/b/a K W C om m erci al At l an t a

Part ners (“ K

W ”) (co l l ect i v el y , t h e “ Ap p el l an t s ”) ap p eal fro m t h e t ri al co u rt ’ s o rd er

d en y i n g t h ei r m o t i o n fo r s u m m ary ju d g m en t i n a n eg li gen c e s u i t b ro ug h t b y Al i ce

Carv er, i n d i v i d u al l y

an d as ex ecu t o r o f t h e es t at e o f B. A. Ap p l i n g . Th e Ap p el l an t s

co n ten d t h at t h e t ri al co u rt erred i n d en y in g t h ei r m o ti o n fo r s u m m ary ju d g m en t

b ecau s e Carv er’ s t erm i n at i o n o f t h e wri t t en ag reem en t b e t w een h er an d t h e

Ap p el l an t s ch an g ed Carv er’ s s t at u s fro m t h at o f a cl i en t t o a cu s t o m er u n d er t h e

Bro kerag e Rel at i o n s h i p s i n Real Es t at e Tran sact i o n s Act (“ BRRETA” o r t h e “ Act ”), 1

1 OCGA § 1 0 -6 A -1 et s eq

.an d as a co n s eq u en ce, th e Ap p el l an t s d i d n o t b reach an y d u t y o wed t o Carv er. Fo r t h e

reas on s s et fo rt h i nfra, we ag ree an d rev ers e t h e t ri al co u rt ’ s ru l i ng

.

Vi ewed i n t h e l i g h t m o st fav o rab l e to th e n o n m o v i ng p art y , 2 t h e reco rd s h o ws

t h e fo l lo wi n g

. On M arch 8

, 2 0 13

, Carv er en tered i n t o an ex cl u s iv e l i s t i n g ag reem en t

(“ l i s t i n g ag reem en t ” o r t h e “ ag reem en t”) wi t h t h e A p p el l an t s t o s el l ei g h t acres o f

u n i m p ro v ed l an d. Th e ag reem en t i d en t i fi ed KW as t h e b ro k er an d St ark s as i t s

“ Di rect o r/ Ag en t [.] ”

In a l et t er d at ed Decem

b er 1 0

, 2 0 1 5, Carv er i n fo rm ed St ark s t h at s h e wi s h ed

t o t erm i n at e th e li st i n g ag reem en t i n o rd er “ t o s t ep back an d re-ex am i n e fu t u re p l an s

co n cern in g t h e p ro p ert y .” Th e p art i es d i d n o t en t er i n t o an o t h er wri t t en ag reem en t

.

Ho wev er, ap p ro x i m at el y on e m o n th l at er, St ark s recei v ed a n o f f e r fo r t h e p ro p ert y

(t he “ co nt ract o f s al e”), wh i ch h e p ro v i d ed t o Carv er v i a e-m ai l o n J an u ary 1 2

, 2 0 1 6.

Th e Ap p el lan t s w ere n o t p art i es t o t h e co n t ract o f s al e, b u t i t s t at ed t h at Carv er wo u ld

p ay t o St ark s , al o ng wi t h t h e b u ye r ’s b ro k er, “ a real es t at e sal es co m m i s s io n i n an

am ou n t eq u al t o ei g h t p ercen t . . . o f t h e p u rch as e p ri ce[.] ”

Aft er rev i ewi n g t h e co n t ract o f s al e, Carv er e-m ai l ed St ark s s ev eral q u es t i on s

reg ard i n g i t s term s, an d St ark s p ro v i d ed wri t t en res p o n ses

. Ho wev er, n o t h i n g i n t h e

2 See Ta yl o r v. Amer i s Ba n k , 3 5 6 Ga. Ap p. 7 9 0 (8 4 9 SE2 d 2 23 ) (2 0 2 0 ).

2e-m ai l ex ch an g e b et ween Carv er an d St ark s ad d res s ed p arag rap h s o n e o r fo u r

co n tai n ed i n t h e co n t ract o f s al e. Parag rap h o n e st at ed t h a t t h e p u r ch as e p ri ce was

$ 5 7 6 ,0 0 0

, wh i ch was cal cu lat ed as $ 7 2,0 0 0 p er acre “ fo r an an t i ci p at ed p u rch as e o f

8 acres [,] ” b u t i f a s u rv ey rev eal ed t h e p ro p ert y “ co n t ai n s m o re o r l es s t han 8 acres ,

t h e Pu rch as e Pri ce s h al l b e ch an g ed t o an am ou n t eq u al t o $ 7 2 0

. 0 0 fo r each o n e

h u n d red t h of an acre s h o wn i n t h e Ap p ro v ed Su rv ey .” Parag rap h fo u r st at ed t h at t h e

b u y er co u l d o b t ai n an u pd at ed s u rv ey o f t h e acres o f l an d co n t ai n ed i n t he p ro p ert y

“ ex cl u s i v e o f areas co nt ai n ed wi t h i n an y p u b l i c r o a d ri gh t of way , set b ack l i n es ,

b u ffers o r eas em en t s , fl o o d p l ai n s o r wet lan d s

. ” Carv er ul ti m at el y s ig n ed t he co n t ract

o f s al e.

Th e b u y er su b seq u en t l y h ad t h e p ro p ert y s urv ey ed

, an d cl ai m e d t h a t cert ai n

b u ffer areas s h o u ld b e rem o v ed fro m t he p u rch as e pri ce becau s e t h e bu y er req u i red

t h es e areas fo r i t s i n t en d e d u s e o f t h e l an d

. Th i s res u l t ed i n a red u ct i o n i n t h e p ri ce

o ffered t o Carv er. At cl o s i n g , Carv er p ai d a co m m is si o n t o t h e A p p el lan t s rel at i n g to

t h e s al e.

Carv er fi l ed an act i o n ag ai n s t t h e Ap p ella nts c la im in g t h at St ark s was n eg l i g en t

i n fai l i n g t o warn her of t h e co n t ract u al pro v i si o n s t h at al l o w ed t h e b u y er t o l o wer t h e

p ri ce p er acre bas ed on s peci fi c e x c l u s i on s , s u ch as b u ffers

, an d t h at KW was

3v i cari o u s l y l i ab l e fo r St ark s’ act i o n s. T he Ap p el lan t s fi l ed a m o t i o n f o r s u m m ary

j ud gm en t, wh i ch th e t ri al co urt d en i ed

. Th i s Co u rt g ran t ed t h e Ap p el l an t s ’ ap plic a tion

fo r i n t erl o cu t o ry

rev iew, an d t h i s ap p eal fo l l owed

.

Th i s Co u rt rev iews a t ri al co u rt ’ s ru l i n g o n a m o ti o n fo r s u m m ary ju d g m en t d e n o vo

. To p rev ai l at s um m ary j u d gm en t u n d er OCGA §

9 -1 1 -5 6

, t h e m o v i n g p art y m u s t d em o n s t rat e t h at t h ere i s n o gen u in e

i s su e o f m at eri al fact an d t h at t h e u nd i s p u t ed fact s, v iewed i n t h e l i g h t

m o s t fav o rab le to t h e n o n m o v in g p art y , w arran t ju d g m en t as a m at t er o f

l aw. 3

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

, we t u rn n o w t o t he Ap p el l an t s ’ cl ai m s o f erro r.

1

. Th e Ap p el lan t s co n t en d t h at t h e t ri al co u rt erred in d en y i ng t hei r m o t i o n fo r

s u m m ary ju d g m en t b ecau s e, as a m at ter of l aw, a cl i en t rel at io n s hi p c a n n o t ex i s t

u n d er t h e BRRETA wi t h o u t a w r i t t en b ro k erag e ag reem en t, an d wh en Carv er

t erm i n at ed t h e a g r eem en t i n h er l et t er t o St ark s , t h i s en d ed th e cl i en t rel at i o n s h i p,

wh i ch ch an g ed t h e d ut i es o wed t o Carv er.

Th e BRRETA was en a c t ed “ t o g ov ern t h e rel at i o n s h i ps b et ween s el l ers ,

l an d l o rd s , b u y ers , t en an t s , an d real es t at e b ro kers an d t h ei r affi l i at ed l i cen s ees t o t h e

3 S t

. Ma r y’s Hea l th Ca r e S

ys t em v. Ro a ch

, 3 4 5 Ga. Ap p

. 2 7 4

, 2 7 6 (8 1 1 SE2 d

9 3 ) (2 0 1 8 ) (p u n ct u at i o n an d fo o t no t es o m i t t ed ).

4ex t en t n ot g o v ern ed b y s peci fi c wri t t en ag reem en t s b et ween an d am o n g th e p art i es

. ” 4

“ In p l ace o f gen eral fi du ci ary d u t i e s , t h e A ct en u m erat es s p eci fi c d u ti es wh i ch real

es t at e b ro k ers m

u s t ex erci s e wi t h reas o n ab le care. Th es e d u ti es v ary , d ep en d i n g u p o n

wh et h er a ‘ cu s t o m er’ o r a ‘ cl ien t ’ rel at i o ns h ip ex i s t s

. ” 5 T he Act defi n es a cl i en t as “ a

p ers o n wh o i s b e i n g rep res en t ed b y a real es t at e b ro k er i n an ag en cy cap aci t y

p u rs u an t t o a b ro k erag e en g ag em en t [,] ” 6 wh i ch m u s t be i n wri t i n g

. 7 In co n t ras t

, a

cu s t o m er i s d efi ned as “ a p ers o n wh o i s no t b ei n g rep res en t ed b y a real es t at e b ro k er

i n an ag en cy cap aci t y p u rs u an t t o a b ro k erag e en g ag em en t b u t fo r wh o m a bro k er m ay

p erfo rm m i n i s t eri al ac t s i n a real es t at e t ran s act i o n pu rs u an t t o ei th er a ver b a l o r

wr i t t en ag reem en t .” 8 Th e BRRETA al s o st at es t h at t he recei p t o f a co m m i s s i o n b y a

b ro k er i s n ot u sed t o d et erm i n e wh et h er a b ro k erag e rel at i on s hi p h as b een creat ed

. 9

4 OCGA § 1 0 -6 A -2 (a).

5 Jo nes v

. Bi ll Ga r len Rea l Es t a t e , 3 1 1 Ga. Ap p

. 3 7 2

, 3 7 4 (7 1 5 SE2 d 7 7 7 ) (2 0 1 1) (ci t at i o n , p u n ct u at i o n , an d fo o t n o t e o m i t t ed ).

6 OCGA § 1 0 -6 A -3 (6 ).

7 See O CGA § 1 0 -6 A -3 (4 ) (s t at in g th at a b ro k erag e en g ag em e n t “ m e a n s a wri t ten co n t ract ”); see al s o Jo n es , 3 1 1 Ga. Ap p . at 3 7 5

.

8 OCGA § 1 0 -6 A -3 (8 ) (em p has i s s u pp l i ed ).

9 OCGA § 1 0 -6 A -1 1 (“ Th e p ay m en t o r p ro m is e o f p ay m en t o f co m p en s at i o n

t o a b ro k er b y

a s el l er

. . . s h al l n ot d et erm in e w h et h er a b ro k erag e rel at i o n s h i p h as

5Here, Carv er s en t a l et t er t o St ark s , w h i ch u n d i s p u t e d l y t erm i n at ed t h e

ag reem en t

. 1 0 W it h o u t a w ri t t en ag reem en t in p l ace, Carv er’ s s tat u s wo u l d

, at m os t

,

h av e b een t h at o f a cu st o m e r

. 1 1 T o o v erco m e th i s i s s u e, Carv er arg u es t h at b ecau s e

St ark s p ro v i d ed res p o n ses t o Carv er’ s q u es t i o ns ab ou t t h e co nt r a c t o f s al e, an d

b ecau s e t h e Ap p el l an t s recei ved a co m m i s s i o n rel at ed t o th e s al e, t h e l i s t i n g

ag reem en t was ren ewe d

, t h u s a l l owi ng Carv er’ s s t at u s t o rem ai n t h at o f a cl i en t

.

Ho wev er, t h i s arg u m en t i s i n co n s i s t en t wi t h t he p l ai n l an g u ag e o f t h e BRRETA.

b een creat ed [.] ”).

1 0 Al t h o u g h Carv er’ s let t er was suf f ic i e nt to te r

m ina te t h e ag reem en t

, p arag rap h

3 s t at es t h at t h e l i s t in g ag reem en t “ s h al l t erm i n at e o n M arch 8

, 2 01 4 ” b u t wo u l d b e

ex t en d ed au t o m at i cal ly fo r 2 p e r i o d s o f “ o n e h u n d red ei g h t y (1 8 5) d ay s ” u n l es s Carv er o r t h e Bro k er p ro v i d ed wri t t en n o t i ce t h at th e ag reem en t w o u l d n o t b e

ex t en d ed . Th e ag reem en t al s o s t at ed t hat

, “ u n les s o t h erwi s e ag reed t o i n wri t i n g b y [t he p art i es ]

, u nd er no ci rcu m s t an ces sh al l t h e Term b e au to m at ical l y ex t en d ed m o re

t h a n t wo

. . . p eri o d s [.] ” As t h e reco rd do es n o t s h o w, an d nei t h er Carv er n o r t h e Ap p e l l a n t s m en t io n, t h at t h ere was a wri t t en ag reem en t ex t en d in g t h e l i s t i n g

ag reem en t b e yo n d th i s d at e, i t ap p ears t he ag reem en t en d ed ev en wi t h o u t Carv er’ s

t erm i n at i o n l et t er.

1 1 See Ha rr o u k v. Fi er m a n , 2 9 1 Ga. Ap p

. 8 1 8

, 8 2 1 (1 ) (6 6 2 SE2 d 8 92 ) (2 0 0 8 ) (“ Th e oral ag reem en t b et ween [t h e b ro k er an d th e b u y er] m ad e [t h e b uy er]

, at m os t

,

a cu s t o m er[.] ”) (p u n ct u at i o n an d fo o t n o t e o m it t ed ).

6Fi rs t

, as n ot ed ab o v e, t h e recei p t o f a co m m i s s i o n d o es n o t det erm in e wh et h er

a b ro k erag e rel at i on s h ip h as b een cr e a t e d

. 1 2 Th erefo re, t he fact th at t h e Ap p el l an t s

recei v ed a co m

m is s i o n , i n an d o f i t s el f, d i d n o t es tab l i s h Carv er as t hei r cl i en t

. 1 3

Ad d i t i o n al l y , s im

p l y b ecau s e t h e co m

m is s i o n was in cl u d ed i n t h e co n t ract o f s al e, an

ag reem en t en t ered i n t o b et ween Carv er an d t h e b u y er, al s o d oes n o t es tab l is h a cl i en t

rel at i o n s h i p as t he Ap p el l an t s were n o t p art i es t o t h e ag reem en t

. 1 4

Seco n d

, t h e l an gu ag e o f t h e BRRETA i s cl ear t hat o ne’ s s t at u s a s a c l i en t i s

d ep en d en t u p o n t h ere b ei n g a wri t t en ag reem en t

. 1 5 As t h e Su p rem e Co u rt o f Geo rg i a

h as s t at ed

, “ BRRETA i s a s t at u t e i n d ero g at i o n o f t h e co m m o n l a w

. As s u ch

, t h e

s co p e of BRRETA m

u s t b e l i m i t ed i n s tri ct acco rd an ce wi t h t he s tat u t o ry l an g u ag e

1 2 OCGA § 1 0 -6 A-1 1

.

1 3 See Ki l lea r n P a r tn er

s v. S o u t h ea s t Pr o

p er ti es , 2 79 Ga. 1 44

, 1 4 7 n .1 6 (2 ) (6 1 1 SE2 d 2 6 ) (2 0 0 5 ) (“ BRRETA p ro v i d es t h at th e p ay m en t o r p ro m i s e o f p ay m en t

o f co m p en s at i on to a b ro k er s h al l n o t d et erm i n e w het h er a b ro k erag e rel at i o n s h i p h as b een creat ed

, b u t t h at s u ch rel at i o n s h i p s d o ex i s t wh en creat ed as o t h erwi s e d es cri b ed

i n t he Act .”) (ci t at i o n an d p u nct u at i o n o m i t t ed ).

1 4 See OCGA § 1 0-6 A -3 (4 ) (s t at i n g t h at an in d i v i d u a l ’s s t a t u s as a cl i en t i s d ep en d en t u p o n t here b ei n g a wri t t en b ro k erag e en g ag em en t “ w h erei n t h e s el l er

. . . b eco m es t h e cl i en t o f t h e b ro k er”).

1 5 See OCGA § 10 -6 A-3 (6 ).

7u s e t h erei n [.] ” 1 6 Here th e p art i e s ’ l i s t in g ag reem en t t erm i n at ed

, an d t h e ag reem en t

i t sel f st at ed t h at an y ex t en s i o n (o t h er t h an t wo au t o m at i c ex ten s i o n s ) wo u l d req u i re

t h e ch an g e t o be i n wri t i n g. Th erefo re, as a wri tt en ag reem en t i s ex p l i ci t l y req u i red

u n d er t h e BRRETA, an d th e l i s ti n g ag reem en t t erm i n at ed wi th o u t ei t h er p art y

en t eri n g in t o an ex t en s i o n o r an o t h er wri t t en ag reem en t

, Carv er’ s s t at u s , as a m at t er

o f l a w , w a s n o l o n g er t h at o f a cl i en t

. 1 7 To co n s id er Carv er a cl i en t b as ed s o l el y o n

t h e p art i es ’ act i o n s wo u ld ru n co u n t er t o t h e ex p l i ci t l an gu ag e o f t he s t at u t e. 1 8 As

s u ch

, i t was erro r fo r th e t ri al co u rt t o den y t h e A p p el l an t s ’ m o t i o n fo r s u m m ary

ju d g m en t

.

2

. In l i g ht o f o u r ru l i n g i n Di v i si o n 1

, s u p r a , w e n e ed n o t co n s i d er t h e

Ap p el l an t s ’ rem ai n in g cl ai m s o f erro r as t h ere were n o al l eg at i o n s i n t h e co m p l ai nt

t h at St ark s v i o l at ed an y

d ut i es o wed t o a cu s to m er u n d er t h e BRRETA. 1 9

Ju d g men t r ever sed . Do yl e, P. J., a nd

Br o wn , J., co n cu r

.

1 6 Ki l l ea r n Pa r t n er

s , 2 7 9 Ga. at 1 4 6 (2 ).

1 7 See Ha r r o u k , 2 91 Ga. Ap p . at 8 2 1 (1 ).

1 8 See Ki l l ea r n Pa r t n er

s , 2 7 9 Ga. at 1 4 6 (2 ) (“ [St at u t o ry ] l an gu ag e can n ev er b e ex ten d ed b ey o n d i t s p l ai n an d o r d i nary m ean i n g .”) (p u nct u at i o n an d fo o t n o t e

o m it t ed ).

1 9 See OCGA § 10 -6 A-1 4 (b ) (1 )-(3 ).

8