THI RD DI VI SI ON

M I LLER, P. J.

, M CFA DDEN and M CM I LLI A N, 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.

http://w w w .ga a ppe a l s .us /r ule s

Jul y 14, 2016



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A1 6 A0 06 0 . AVION SYSTEM S, INC. v . BELLOM O.

M C F A D D E N , J u d g e.

T h i s a p p eal ch al len g es th e g ran t o f a m ot i o n fo r su m m ary ju d g m en t as t o a

b reach o f fi d u ci ary d u t y cl ai m an d t h e d en ial o f a m o t i o n fo r ju d g m en t

n o t wi t h s t an d i n g t he v erd i ct as t o b reach o f co n t ract an d o t her cl ai m s

. Ho wev er, t h e

ap p el l an t h as fai l ed t o s h o w t h at t h ere ex is t s a g en u i n e i ss u e o f m at eri al fact as t o t h e

b reach o f fi d u ci ary d u t y cl ai m , t h u s s u m m ary ju d g m en t o n t h at cl ai m w a s a p p ro p ri at e.

M o reo v er, t h ere was ev i d en ce s u p p o rt i n g th e ju ry ’ s v erd i ct

, s o t h e t ri al co u rt d i d n ot

err i n den y i n g t h e m o ti o n fo r j u d g m en t no t wi t h s t an d i n g t h e v erd i ct

. Acco rd i n g l y , we

affi rm

.

Av i o n Sy st e m s , In c., s u ed Gi aco m o Bel lo m o , a fo rm er em p l o y ee, fo r b reach

o f c o nt ract an d u n

j u s t en ri ch m en t

. Bel l o m o co u n t ercl ai m ed fo r b reach o f co n t ra c t

,s eek i n g u n p ai d co m m i s s i o n s , un p ai d ex p en s e rei m b u rs em en t s , p reju dg m en t i n t eres t

an d at to rn ey fees

. Av i o n v o l u n t ari l y d i s m is s ed i t s co m p l ai n t wi t h ou t p r e

j u d i ce.

Bel l o m o o b

ject ed t o t h e d i s m i s sal an d co n t i n u ed t o p urs u e h is co un t ercl ai m s

. Av i o n

s u b s eq u en t l y fi l ed a n ew co m pl ai n t ag ai n s t Bel lo m o , as s ert in g cl ai m s fo r b reach o f

f i d u ci ary d u t y

an d un ju s t en ri ch m en t

. Bel l o m o fi led an ad di t i o n al co un t ercl ai m fo r

an u n p ai d b o n us

. T h e t ri al co u rt g ran ted s u m m ary ju d g m en t to Bel l o m o on Av i o n ’ s

b reach o f fi d u ci ary

d u ty cl ai m

.

A ju r y t r i a l was t h en h el d o n Av io n ’ s rem ai n i n g cl ai m fo r u nju st en ri ch m en t

an d Bel l o m o ’ s co un t ercl ai m s. Th e j u ry ret urn ed a v erd i ct ag ai n s t Av i on an d i n fav o r

o f Bel l o m o as t o b ot h Av i o n ’ s u n ju s t en ri ch m en t cl ai m an d Bel l o m o ’ s co u n tercl ai m s ,

award i n g Bel l o m o $ 1 4 7,8 0 6 i n d am age s a nd $1 5 6 ,8 6 1 i n at t o rn ey fees

. Th e t ri al co u rt

en t ered ju d g m en t i n fav o r o f Bel l o m o i n t h o s e am o un t s

. Av i o n fi l ed a m o t i o n fo r

ju d g m en t n o t wi t h st an d i n g th e v erd i ct

, wh i ch t he t ri al co u rt d e n i e d

. A v i o n ap p eal s

.

1

. Gr a n t o f s umma r y j u d g men t

.

Av i o n cl ai m s t hat t he t ri al co u rt erred i n g ran t in g s u m m ary j u d gm en t to

Bel l o m o o n i t s cl ai m fo r b r e ach o f fi du ci ary d u t y , wh i ch al l eg ed t h at “ Bel l o m o

s o l i ci t e d t h e b u s i n es s of E CI, a cu s t o m er of [Av io n ]

, fo r h i s ri v al b u s i n es s , Ed g e

2W i rel es s , b efo re t h e en d of h is em p l o y m en t w i th [Av i o n ] .” W e fi n d n o er ro r i n t h e

g ran t o f s u m

m ary ju d g m en t o n t h is cl ai m

.

Su m m ary ju d g m e n t i s p ro p er wh en t h ere i s n o gen u in e is s u e o f m at eri al fact

an d t h e m o v an t i s en t i t l ed t o ju d g m en t as a m at t er o f l a w. No r t on v. Co b b

, 2 8 4 Ga.

Ap p

. 30 3 (6 4 3 SE2 d 8 0 3 ) (2 00 7 ). Th i s Co u rt rev i ews d e n ov o a g ran t o r d en i al o f

s u m m ary ju dg m en t, v i e w i n g t h e ev i d en ce, an d al l reas o n ab l e co n cl u s i o n s an d

i n feren ces d rawn f

r o m i t

, i n t h e l ig h t m o s t fav o rab le t o t h e n o n m o v an t

. Id

. at 3 0 3

-

3 0 4

.

So v i ewed

, t h e ev i d en ce s h o ws t h at in A u g u s t 2 0 0 9

, Bel l o m o w as h i red by

Av i on as a d i rect o r o f wi rel es s s al es

. In Jan u ary 2 0 1 0

, E CI en t ered i n t o a co n t ract fo r

Av i on t o s u pp l y cu s t o m er care s e rv i ces fo r ECI’ s wi rel es s net wo rk

. In J u n e 2 0 1 1,

wh i le s t i l l em

p l o y ed by Av i o n, Bel l o m o an d a p art n er fo rm ed Ed g e W i rel es s , In c. In

earl y Sep t em

ber 2 0 1 1

, f

o l l o w i n g a co m

p en s at i o n d i s p u t e b et ween t h e p art i es ,

Bel l o m o ’s em

p l o y m en t wi t h Av i o n t erm i n at ed

. By O ct o b er 20 1 1

, ECI had en t ered

i n t o a co n t ract wi t h Ed ge fo r wi rel es s s u pp o rt s erv i ces an d was n o l on g er a cu s t o m er

o f Av io n

.

“ It i s w el l s et t l ed t hat a cl ai m fo r b reach o f fi d uci ary du t y req u i res p ro o f o f

t h ree el em en t s : (1 ) t h e ex is t en ce o f a fi d u ci ary d ut y ; (2 ) breach of t h at d u t y ; an d (3 )

3d am ag e p ro x im at el y cau s ed b y t h e b reach .” Na sh v. S t u dd a r d

, 2 9 4 Ga. Ap p

. 8 4 5,

8 4 9 -8 5 0 (2 ) (6 7 0 SE2 d 5 0 8 ) (2 0 0 8 ) (ci t at i on an d p u nct u at i o n o m i t t ed ).

[F] i d u ci ary d u t i es a r e o wed b y t h o s e i n co n fi d en t i al rel at io n s hi p s as d efi n ed b y O.C.G.A. § 2 3 -2 -5 8 [, wh i ch ] pr o vide s: A ny rel at i o ns h ip sh al l

b e d eem ed co n fi d en t i al

, wh et h er ari s i n g fro m nat u re, creat ed b y l aw, o r

res u lt i n g fro m co n t ract s , wh ere o n e p art y i s s o s i t u at ed as t o ex erci s e a

co n t ro ll i n g au t h ori ty o ver t he wi l l

, co nd u ct

, an d in t e r e s t o f an o t h er o r wh er e , f r o m a s i m il ar rel at i o n s h i p o f m u t u al co n fi d en ce, t h e l aw req u i res

t h e u t m o st g o o d fai t h

, s u ch as t h e rel at i o n s h ip b et ween p art n ers , p ri n ci p al an d ag en t , et c.

Ph ys i ci a n S p eci a l i s t s i n An es th es i a

, P.C. v. W

i l d mo n , 2 3 8 Ga. A p p

. 7 30

, 7 32 (1 ) (5 2 1

SE2 d 3 5 8 ) (1 99 9 ) (ci t at i on om i t t ed ). An em p l o y ee o b v i o u s l y i s n o t a p art n er, an d “ an

em pl o y er-em

p l o y ee rel at i o n s h i p d oes n o t t y p i cal l y creat e a p ri n ci p al -ag en t

rel at i o n s h i p

. Th e d i s t i n g u i s h i n g ch aract eri st i c o f a n ag en t i s t h at h e i s v es t ed wi th

au t h o ri t y , real o r o s ten s i b l e, t o creat e o b l i g at i o n s o n b eh al f o f h is pri n ci p al

, b ri n g i n g

t h i rd p art i es in to co n t ract u al rel at i o n s wi t h h i m .” Id

. at 7 3 2 (1 ) (a) (ci t at i o n s o m i t t ed ).

Here, t h e t ri al co u rt g ran t ed s u m m ary ju d g m en t o n t h e b as i s t h at Bel lo m o was

m erel y an em p l o y ee o f Av i on , n o t an o ffi cer o r ag en t wh o co u ld co n t ract u al l y b i n d

t h e co m p an y

. It i s u n d i s p u t ed t h at Bel lo m o wa s n o t a n A v i o n o ffi cer. M o reo v er,

Av i on h as fai l ed t o refu t e t h e t ri al co u rt ’ s fi n d i ng t h at Bel lo m o was n o t an ag en t by

p o i n t i n g t o s p eci fi c ev id en ce i n t he reco rd s h o w i n g t hat Bel l o m o co u l d creat e

4o b l i g at i o ns o n A v io n ’ s b eh al f o r b ri n g th i rd p art i es i n t o co nt ract u al rel at i o n s wi t h i t

.

Av i on h as i d en t i fi ed n o l an g uag e i n th e em p lo y m en t co n t ract gi vi n g B e l l o m o s u ch

au t h o ri t y ; rat h er, Av i o n c i t es d ep o s i ti o n an d affi d av i t s t at em en t s i n d i cat i n g t h at

Bel l o m o was a sal es m an wh o s e d u t i es i n cl u d ed cu l t i v at i n g rel at i o n s h i p s wi t h t h e

d eci s i o n -m ak ers o f p ro s p ect i v e cu s t o m ers

. A v i o n al s o r e fers t o l an g u ag e i n t h e

em pl o y m en t co n t ract p ro v i d i n g t h at Bel l o m o h ad a fi d u ci ary d u t y n o t t o d i v u l g e t rad e

s ecret s , b u t t h at l an g u ag e d i d n o t g iv e Bel l o m o t h e au t h ori t y t o b i nd Av i o n

co n tract ual l y or o th erwi se creat e a p ri n ci p al -ag en t rel at i o ns h i p

. “ In ord er fo r

[Bel l o m o ] t o s erv e as [Av i o n ’ s] ag en t

, h e had t o be m o re t h an th e em pl o y ee d el eg at ed

b y [Av i o n] t o [s o l i ci t an d cu l t i v at e rel at i on s h i p s wi t h p ot en t i al cu s t o m ers ]
- h e h ad

t o b e v es t ed wi t h au t h o ri ty

, real o r o s t en si bl e, t o creat e ob l i g at io n s on beh al f o f

[Av io n ]

, b ri ng i n g th i rd p art i es i n t o co nt ract u al rel at i o ns wi t h [Av io n ] .” Go r d o n

Do cu men t Pr o d

s

. v. S er v

. Tech s

. , 3 08 Ga. Ap p

. 4 4 5

, 4 5 4 (7 0 8 SE2 d 4 8 ) (2 0 1 1 )

(ci t at i o n s an d p u n ct u at i o n o m i tt ed ). Av i o n h as n o t i den t i fi ed an y ev i d en ce creat i n g

a d i s p u t ed i s s u e o f fact t hat Bel l o m o h ad s u ch au t h ori t y

.

W h ere i t h as been “ d em o n s t rat e[d ] t h at t h ere is no ev id en ce su ffi ci en t t o creat e

a ju ry i ss u e on at leas t o ne es s en t i al el em en t o f p l ai n t iff’ s cas e, t h e b u rd en s h i ft s to

t h e n o nm o v i n g part y to p o i n t o u t s peci fi c e v i d e n c e g i v i n g ri s e to a t ri ab l e i s s u e.”

5S

mi th v. Mo rr is

, Ma nn i n g & Ma r t i n , 2 9 3 G a. A p p

. 1 5 3, 1 6 0 -1 61 (6 6 6 SE2 d 6 8 3 )

(2 0 0 8) (ci t at i o n an d p u nct u at io n o m i t t ed ). Here, becau s e Av i o n h as fai led t o po i n t o ut

s p eci fi c ev i d en ce g i v i n g ri s e t o t ri ab l e i s s u e as t o Bel l o m o ’ s s t at u s as an ag en t o wi n g

a fi d u ci ary du ty t o h i s p r i n c i p a l

, h e h as fai l ed t o s h ow erro r i n t h e tri al co urt ’ s

s u m m ary ju d g m en t ru li n g

. See UW or k, In c. v. Pa r ag o n Tech s

. , 3 21 Ga. Ap p

. 5 8 4,

5 9 6 -5 9 7 (4 ) (7 40 SE2 d 8 8 7 ) (2 0 1 3 ) (d efen d an t en t i tl ed to s u m m ary ju d g m en t wh ere

p l ai n t i ff p o i nt ed t o n o ev i d en ce s h o wi n g a p ri n ci p al -ag en t rel at i o ns h ip b et ween t h e

p art i es ). Acco rd i n g l y , we affi rm

.

2

. Den i a l o f j u d g men t n o t wi t h s ta n di n g

t he ver di ct

.

Av i o n co n t en d s t h at t h e t ri al co u rt erred in d en yi n g i t s m o t io n fo r ju d g m en t

n o t wi t h s t an d i n g t h e verd i ct as t o Bel l om o ’ s co u n t ercl ai m s f o r b r each o f co n t ract

,

at t o rn ey fees , an d p reju d g m en t i n t eres t . Th e co n ten t io n i s wi t h o u t m eri t

.

W i t h reg ard t o t h e at to rn ey fees an d i n t eres t cl ai m s, Av i o n d i d n o t m o v e fo r a

d i rect ed v erd i ct o n t h o s e cl ai m s an d t herefo re it co u ld n o t rai s e t h o s e i s s u es fo r t h e

fi rs t t i m e i n a m o t i o n fo r ju d g m en t n o t wi th st an d in g t h e v erd i ct

. Co m p are Rep u b l i c

S vcs

. o f Ga

. v. Ho a k

, 2 7 3 G a

. A p p

. 3 3 0

, 3 3 1 (6 1 5 SE2 d 1 7 5 ) (2 0 0 5) (m o t i o n s fo r

d i rect ed verd i ct an d ju dg m en t n o t w i t hs t an di n g t h e verd i ct bas ed on s am e gro u n d s ).

6[G] ro un d s rai s ed in a m o t i o n fo r ju d g m en t n o t wi t h s t an d i n g t h e v erd i ct

t h at were n o t rai s ed i n t h e m o t io n fo r d i r e c t ed verd i ct wi l l no t be

co n s i d ered o n ap p eal

. OCGA § 9 -1 1 -5 0 (b ) a ll o ws th e d ev ice o f a

m o t i o n fo r ju d gm en t n ot wi t h s t an d i n g t h e v erd i ct [“ j .n .o .v ”] t o b e u s ed

wh en a m o ti o n fo r d i rect ed verd i ct d o es n ot en d a t ri al an d i t p ro ceed s

t o verd i ct

. It is n arro w, h owev er, an d d o es n o t p erm it reo p en i n g t h e cas e f or n ew l eg al i s su es wh ich are t h o u g h t o f ret ro s p ect iv el y , wi t h h i n d sight.

It p ro v i d es , h o wev er, a p o s t -v erd i ct o p p o rt u n i t y fo r a d et erm i nat i o n o f

t h e l eg al q u es t i on s rai s ed b y t h e m o t i on fo r a d i rect e d v e r d i c t

. If u p o n refl ect i o n t he t ri al ju d g e d et erm in es t h at t h e m o t i o n fo r d i rect ed v erd i ct

was v al i d, t he ju d g e i s t o s et as id e t h e verd i ct an d t h e ori g i n al ju d g m en t

an d en t er a n ew ju d g m en t i n acco rd an ce wi t h t h e m o t i o n fo r d i rect ed

v erd i ct

. It i s p at en t

, th en , t h at t h e j .n .o .v

. m u st b e b as ed o n g ro un d s rai s ed i n t h e m ot i o n fo r di rect ed v erd i ct i n it i al l y , fo r i t i s i n effect o n l y

a n ew ru l i n g o n a ren ewed m o ti o n.

S o u t h er n La n d Ti t l e v. No r t h Ga

. Ti t l e , 2 7 0 Ga. Ap p

. 4

, 7 -8 (2 ) (6 06 SE2 d 4 3) (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 tt ed ). Acco rd in g l y , Av i o n’ s arg um en ts co n cern i n g t h e

d en ial o f ju d g m en t n o t wi t h st an d i n g t h e v e r d i ct as t o t h e at t o rn ey fees an d i n t eres t

cl ai m s p res en t n o th i n g fo r u s t o rev i ew.

As t o t h e b reach o f co nt ract fo r u n p ai d co m m i s s i o n s an d bo n u s , Av i o n m u s t

s h o w “ t h at t h ere was n o co n fl i ct i n t h e ev i d en ce as t o an y m at eri al i ss u e an d t h at t h e

ev i d en ce i n t ro du ced

, wi t h al l reas o n ab le d ed uct i on s t h erefro m , d em an d ed t h e v erd i ct

s o u g ht .” Ag

S o u t h Fa r m Cr ed it v. Go wen Ti m b er Co

. , 3 3 6 Ga. A p p

. 5 8 1

, 58 7 (2 ) (7 8 4

SE2 d 9 1 3 ) (2 0 1 6 ) (ci t at io n an d p u n ct u at i o n o m i t ted ). Th u s, o n ap peal fro m a ru l i n g

“ [o ] n a m o ti o n fo r j u d gm en t n o t wi t h s t a n d i n g t h e v erd i ct

, t h e s tan d ard o f rev i ew i s

7wh et h er t h ere i s an y ev i d en ce t o s u p p o rt t h e ju ry ’ s v erd i ct .” S i ms v. S ims

, 2 65 Ga. 5 5,

5 6 (4 5 2 SE2 d 7 6 1 ) (1 9 9 5) (ci t at i o n o m i t ted ). Here, Av i o n h as fai l ed t o s h o w t h at t h e

e v i d e n ce d em an d ed a d i fferen t v erd ict

. As th e t ri al co u rt fo u n d

, “ t h ere [was ] a n

ab u nd an ce o f ev i d en ce t o s up p o rt al l as p ect s o f t h e j u ry ’ s v erd i ct .” Acco rd i n g l y , t h e

t ri al co u rt d i d n o t err i n d en y i n g t h e m o t i o n fo r ju d g m en t n o t wi t h s tan d i n g th e v erd i ct

.

Ju d g men t a f f i r m ed . Mi l l er

, P. J., a n d

McMi l l i a n , J., co n cu r.

8