SECOND DI VI SI ON

M I LLER, P. J.

, A N DREWS, J.

, and RI CKM A N

, J.

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

A pr i l 24, 2018



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A1 8 A0 77 8 . W A LLACE v . W ALLACE et al

.

M I LLE R , Pres i d i n g J u d g e.

Th i s d i s p ut e ari s es fro m t h e fo rced s al e o f o n e b ro t h er’ s s t o c k i n a fam i l y

o wn ed bu si n es s , W al l ace El ect ri c Co m p a n y

. Do rs ey “ D o s s ” W al l ace, an d h i s

b ro t h ers , Ph il l i p an d Gary

, al l wo rk ed fo r W al l ace El ect ri c an d own ed s t o ck i n t h e

co m p an y

. Aft er Do s s s t op p ed wo rk i n g fo r W al lace El ect ri c i n 1 9 9 4

, h e d i d n o t sel l

– an d th e co m

p an y d i d no t ev en at t em

p t t o b u y

– h i s s to ck as was re q ui red b y t h e

co m p an y By laws an d t h e s h areh o l d ers ’ Bu y -Sel l A g reem e n t (“ t he Ag reem en t ”).

W h en Ph i l l i p as k ed Do s s ab o u t ret u rn i n g t h e s h ares i n 2 0 0 3

, Do ss u n eq u i v o cal l y

refu sed

. Sev eral y ears l at er, Do s s f i l e d a c o m

pl ai nt al l eg i n g t hat Ph i ll i p an d Gary

b reach ed t hei r fi du ci ary d ut y t o w ard s h i m a s a s h areh o l d er. Du ri n g t he en s u i n g

l i t i g at i o n, bo t h p art i es s ou g h t s p eci fi c p erfo rm an ce o f ei t h er t h e By l aws o r t h eAg reem en t

. F o l l o wi ng a b en ch t ri al

, t h e t ri al co u rt fo u n d t h at Do s s breach ed t h e

Ag reem en t wh en h e d id n o t ret u rn t h e s t o ck i n 1 9 9 4

, an d i t val u ed Do s s ’ s sh ares as

t h ey wo ul d h av e b een v al u ed in 1 9 9 4

, w i t h a red u ct i on fo r t h e m i no ri t y i n t eres t Do ss

h el d

. D o s s n o w ap p eal s

. Aft er a t h o ro u g h rev i ew o f t h e reco rd an d t h e ap p l i cab l e l aw,

we co n cl u d e th at t h e t ri al co u rt erred i n d et erm i n in g t h at Do ss was req ui red t o s el l h i s

s h ares at t h e 1 9 9 4 v al ue an d i n ap p ly i n g a m i no ri t y i n t eres t d i s co u n t to t he v al u e o f

t h e s to ck

. In s t ead

, t h e t ri al co u rt s h o u l d h av e v al u ed Do s s ’ s sh ares i n 2 0 03 wh en h e

b reach ed t h e A g reem en t b y refu s i n g t o s el l h i s s h ares

. M o reo ver, b ecau s e we

co n cl u d e t h at Do s s co nt i n u ed to h o l d h is s h ares u n t i l h e b reach ed t h e Ag reem en t in

2 0 0 3 , t h e t ri al co u rt erred i n fi nd i n g t h at Do s s ’ s cl ai m s fo r b reach o f fi d u ci ary d u t y

an d t o rt i o u s i n t erferen ce were m o o t

. Acco rd i n g l y , we v acat e t h e t ri al co u rt ’ s o rd er,

an d rem an d t h e cas e fo r fu rt h er p ro ceed i n g s

.

“ Ap p eal s fro m b en ch t ri al s , wh ere t h e t ri al ju d g e si t s as t h e t ri er o f fact an d h as

t h e o p po rt u n i t y t o as s es s t he cred i b i l i ty o f t h e wi tn es s es , are rev i ewed u n d er t h e

cl earl y erro n eo u s s t an d ard

. W e wi l l no t d i s t urb a t ri al co u rt ’ s fi n d i n gs i f th ere i s an y

ev i d en ce t o s u p p o rt t h em .” (Ci t at i on s an d fo ot n o t es o m it t ed .) Jen ki n s v. S al l i e Ma e,

In c. , 2 8 6 Ga. Ap p

. 5 0 2 (6 4 9 SE2 d 8 0 2 ) (2 0 0 7 ). Qu es t i o ns o f law are rev i ewed d e

n o v o

. Lewi s v. McNeel

y , 3 36 Ga. Ap p . 6 9 6 (7 8 3 SE2 d 1 7 2 ) (2 0 1 6 ).

2Th e f a c t s o f t hi s cas e are u n d i s p u t ed

. W al l ace El ect ri c i s a fam i l y -o wn ed

co m p an y t h at was i n co rp o rat ed i n 1 9 5 9 b y t h e p art i es ’ fat h er. Th e fat her was h ead o f

W al l ace El ect ri c an d co n t ro l led t h e b u s in es s u n t i l h i s d eat h i n 20 0 0

. Aft er t h e fat h er

d i ed

, Gary

, as p res id en t

, an d Ph i l l i p , as v i ce p res id en t , co n t ro l l ed W al lace El ect ri c,

i n creas i ng t h e co m

p an y ’ s p ro fi t ab i l i t y

s ub s tan t ial l y

.

Th e s t at ed p u rp o se o f t h e co m p an y i s t o m ak e a p ro fi t

. Ad d i t i o n al ly , b ecau s e

W al l ace El ect ri c w a s d e signe d to be a fam i l y -o wn ed b us i n es s , o n l y cu rren t em p l o y ees

o f t h e co m

pan y co u l d ret ai n s t o ck

. Pu rs u an t t o W al l ace E lect ri c’ s By l aws , en act ed in

1 9 5 9 , t h e ret en t i o n an d s al e o f s t o ck were co n t ro l l ed as fo l l o ws :

[I] f t h e em

pl oy m en t of an y s t o ck h o ld er o r o ffi cer i s t erm i n at ed

, fo r an y

reas o n , t h e co r

p o r a t i o n s h a l l h a ve t h e r i g h t a n d d u ty t o p u r ch a s e al l th e

s t ock o f s ai d em

p l o y ee o r offi cer an d t h e f o r m e r offi cer o r em

pl oy ee

s h al l b e o bl i g at ed t o s el l h i s s t o ck p u rs u an t t o t h es e b y -l aws

.

Th e pu rch as e p ri ce, i n an y ev en t

, sh al l b e t h e b o o k va l ue o f t h e st o ck (as

o f t h e t i m e o f s ai d n o t i ce ) a s det erm in ed acco rd in g t o accep ted

acco u n t i n g p ract i ces , an d s h al l b e b i n di n g u p o n t h e p art i es

.

(Em p h as i s s u p p li ed .) (“ A rt i cl e V” o f t h e By laws ).

3In 1 9 8 8

, W al l ace El ect ri c i s s u ed s t o ck t o al l th re e b ro t h ers ; Gary an d Ph il l ip

r e c ei v ed 3 0 s h ares (2 5 percen t ) each an d Do s s recei ved 2 0 sh ares (1 6.6 7 p ercen t )

. 1

Ad d i t i o n al l y , wh en Do s s , Gary

, an d Ph i l l i p o b t ai n ed t hei r s h ares in 1 9 8 8

, t he p art i es

en t ered i n t o t h e Ag reem en t , wh i ch p ro v i d ed

,

U p o n t h e

. . . t erm in at i o n o f em p l o y m en t o f a Sh areh o l d er, s u c h

Sh areh o l d er

. . . sh al l sel l, an d t h e Co rp o rat i on s h al l b u y , al l

, b ut n o t l es s

t h an al l

, o f t h e s t o ck o w n ed b y s u ch Sh areh o l d er f o r a p u rch as e p ri ce

eq u al t o t h e cu r r en t

va lu e .[ 2 ]

. . .

In t he ev en t o f t erm in at i o n o f em p l o y m en t o f a Sh areh o l d er, th e

Co rp o rat i on sh al l p u rch as e al l o f t h e s to ck o wn ed b y s u ch Sh areh o l d er

wi t h in s i xt y (6 0 ) d a ys aft er t h e d at e o f t erm i nat i o n o f em p lo y m en t

.

(Em p h as i s s up p l i ed .) Fi n al l y , t h e Ag reem en t s peci fi ed t h at d am ag es fo r b reach o f t h e

Ag reem en t were “ i m

m eas u rab l e,” an d t h u s , t h e Ag reem en t co nt em p l at ed s p e c i f

i c

p erfo rm an ce or o t h er eq ui t ab l e rem ed i es

. In s ig n i n g th e Ag reem en t

, t h e p art i es

1 Th e fat h er al s o recei v ed 4 0 s h ares o f s t o ck

. W h en h e d i ed i n 2 0 0 0

, h e b eq ueat hed h i s s t o ck t o h i s w i fe, b u t s h e lat er s ol d t h e s t ock b ack t o W al l ace El ect ri c.

2 Th e Ag reem en t d efi n ed “ cu rren t v al u e” as $ 1 ,8 0 6 p er s h are. Per t h e t erm s o f

t h e Ag reem en t

, th e “ cu rren t v al u e” was s u b ject to an n ual rev iew. It i s u n d i s p u t ed t h at

t h e v al u e h as n ev er b een am en d ed

.

4ex p res s l y wai v ed an y d efen s e th at t h ey h ad an ad eq u at e rem ed y at l aw. By i t s o wn

t erm s , t h e Ag reem en t ex p ired i n 2 0 0 8. 3

Al l th ree b ro t h ers i n i ti al l y wo rk ed fo r W al l ace E lect ri c, b u t D o s s l eft h i s

em pl o y m en t i n 1 9 9 4

. At t h e ti m e Do s s l eft W al l ace El ect ri c, he o w n ed o n e-s i x t h o f

t h e i s su ed s t o ck

. He d i d n o t o ffer t o sel l h i s s t o ck t o t he co m p an y as req u i red b y t h e

By l aws an d Ag reem en t

, h o wev er, b ecau s e h e p l an n ed t o ret u rn t o t h e co m p an y “ at

s o m e p o i n t .” No r d i d W al l ace El ect ri c at t em p t t o b u y Do s s ’ s s to ck wh en h i s

em pl o y m en t ceas ed

.

In 2 0 0 3

, d u ri n g a rev i ew o f t h e co m p an y ’ s s t at u s, Gary an d Ph i ll i p real i zed t h at

W al l ace El ect ri c h ad n o t rep u rch as ed Do s s ’ s s t ock aft er Do s s l eft t h e co m p an y

.

Ph i l l ip co n t act ed Do s s t o in q u i re ab ou t W al l ace El ect ri c rep u rch as i n g D o s s ’ s s t o ck

,

b u t t h ey n ev er d i s cu ss ed a p u rch as e p ri ce b ecau s e Do s s ad am an t l y refu s ed t o s el l i t

.

Ph i l l ip al l eg ed l y

s p ok e t o Do s s ag ai n ab o u t s el l i n g t he s t o ck i n 2 0 0 6 o r 2 00 7

, t o n o

av ai l

.

In Au g u s t 2 0 11

, Do s s fi l ed a co m pl ai n t fo r an acco u n ti n g an d d am ag es ag ai n s t

G ary an d Ph i l l i p , al l eg i ng b reach o f fi d u ci ary d u t y an d to rt io u s d ep ri vat i o n o f h i s

3 Th i s l aws u i t

, w h ich was fi l ed wi t h i n t h ree y ear s o f t h e e x p i rat i on o f t h e Ag reem en t , was t im el y . See OCGA § 9 -3 -2 4

.

5i n t eres t i n Wa l l a c e E l ect ri c, an d s eek in g p un i t i v e d am ag es an d at t o rn ey fees

. He

s u b s eq u en t l y m o v ed t o ad d W al l ace E l ect ri c as a d efen dan t

, an d fi l ed an am en d ed

co m p l ai n t t o ad d cl ai m s t h at are n o t rel ev an t t o t h e i n st an t ap p eal

.

G a r y, P h il l i p , an d W al l ace El ect ri c (co ll ect i vel y “ t h e d efen dan t s ”) fi l ed an

an s wer, a co u n tercl ai m s eek i n g d am ag es an d fees fo r ab u s i v e l it i gat i on , an d an

am en d ed co u n tercl ai m

. In t he am en d ed co u n t ercl ai m , t he d efen d an t s arg u ed t h at

, as

a m at t er o f eq ui ty

, Do s s sh o u l d b e o rd ered t o s el l h i s st o ck b ack to W al l ace El ect ri c

at t h e 1 9 9 4 v al u e. Do s s m ov ed t o d i s m i s s th e co un t ercl ai m as u n t i m el y , b u t t h e t ri al

co u rt d en i ed t h e m o t i o n

.

In 2 01 5

, Do s s n o t i fi ed W al l ace El ect ri c th at h e wi s h ed t o s el l h i s s h ares b ack

t o t h e co m

p an y at t h ei r p res en t v al u e. He al s o fi l ed a m o t i on fo r s peci fi c p erfo rm an ce,

d em an d i n g t hat W al lace El ect ri c rep u rch as e th e 25 p ercen t i n t eres t i n s t o ck t h at h e

n o w o w n ed as a res u l t o f h i s fat h er’ s s h ares b ei ng reab so rb e d i n to t h e co m p an y , at

W al l ace El ect ri c’ s 20 1 5 bo o k v al u e. I n r e s p o n s e, th e d efen d an t s t en d ered Do s s a

c h e c k i n t h e am o un t o f $ 54 ,2 0 0

, wh i ch rep res en t ed t h e 19 9 4 b o o k v al ue o f D o s s ’s

1 6 .6 7 p e r c e n t i n t eres t i n th e co m p an y at t h at t i m e. Do s s reject ed t hi s o ffer. At t h e

t i m e, t he b o o k v al u e o f W al l ace El ect ri c was ju s t o v er $ 8 m il l io n

.

6At a b en ch t ri a l

, t h e p art i es ag reed t hat t here s h o u l d b e a b uy o u t o f Do s s ’ s

s h ares

. 4 Th e p art i es di s ag reed

, h o wev er, ab ou t wh i ch d o cu m en t co n t ro l l ed t h e b u y o ut

an d t h e ap p ro p ri at e y ear fo r v al u i n g Do s s ’ s s t ock

. Do s s co n t en d ed t h at Art icl e V o f

t h e By laws co n tro l l ed t h e m an ner an d v al u e o f t h e s t o ck p u rch as e, an d t h at h i s o ffer

t o sel l h i s s t o ck i n 2 0 1 5 req ui red W al lace El ect ri c to p u rch as e th e s t o ck at t h e 2 0 1 5

v al u e. T h e d efen d an t s arg ued t h at t h e Ag reem en t co n t ro l l ed b ecau s e t h e By laws

ex p ired p ri o r t o t h e effect i v e d at e of t h e Ag reem en t, t h e Ag reem en t s u p ers ed ed t h e

By l aws , an d t herefo re, Do s s was o b l i g at ed t o s el l h is s t o ck at t h e 1 9 9 4 v al u e.

Th e t ri al co urt fo u n d i n fav o r of Ph i l l i p an d Gary

, an d o rd ered Do ss to s el l h i s

s h ares at t h e 1 9 9 4 v al u e. I n d o i n g s o , h o wev er, th e t ri al co u rt i n i t i al l y d i d n ot

ex p res s l y ru le o n an y of t h e part i es ’ s p eci fi c l eg al arg u m en ts

. Do s s ap p eal ed t o t h e

Su p rem e Co u rt o f Geo rg i a, 5 wh i ch v acat ed t h e t ri al co u rt ’ s o rd er an d rem an d ed fo r

t h e t ri al co u rt t o m ak e fact u al fi n d in g s an d s t at e i ts l eg al co n cl us i o ns

. See W a l l a ce v.

W a l la ce , 3 0 1 Ga. 1 95 (8 0 0 SE2 d 3 0 3 ) (2 0 1 7 ).

4 T h us , t h e p a r t i es ag reed t hat t h e ben ch t ri al wo u l d ad d res s o n ly t h e b u y o ut
i s su e an d n o t m at ters rel at ed t o Do s s ’ s cl ai m s fo r b reach o f fi d u ci ary du t y , t o r t i ou s i n t erferen ce, an d p un i t i v e d am ag es an d at to rn ey fees

.

5 At t h e t i m e of Do s s ’ s fi rs t ap p eal

, eq u i t y ju ri s d i ct i on l ay i n t h e Su p rem e Co u rt

o f Geo rg i a. See W

a l la ce , s u p ra, 3 01 Ga. at 1 9 7 (I), n

. 3

. W e n o w h av e ju ri s d i ct i o n. See OCGA § 1 5 -3 -3

. 1 (a) (2 ) (2 0 1 7 ).

7On rem an d

, th e t ri al co u rt fo u n d t h at (1 ) th e Ag reem en t g o vern ed t h e d i s p u t e

b ecau s e i t s u p ers ed ed an d rep l aced Art i cl e V o f t h e By l aws ; (2 ) t h e Ag reem en t was

n o t ex ecu t ory in n at u re; (3 ) Do s s b reach ed t h e Ag reem en t i n 1 9 9 4 wh en he fai l ed to

s el l hi s s t o ck u p o n l eav i n g W al l ace El ect ri c; (4 ) t h e d efen dan t s ’ co u n t ercl ai m s were

t i m el y b ecau s e Do s s ’ s breach co n t i n u ed t h ro ug h 2 0 0 8

, t h e co m pl ai n t w as fi led wi t h in

t h e s t at u te o f l i m i t at i on s , a n d t h e c o un t ercl ai m s rel at ed b ack t o t h e t im el y -fi l ed

co m p l ai n t ; (5 ) an eq ui t ab l e rem ed y was ap p ro p ri at e t o g iv e effect t o t h e p art i es ’ i n t en t

an d req u i red t h e co n cl us i on t h at Do s s b e h el d t o t h e term s o f th e Ag reem en t as i f h e

h ad so l d h i s s h ares i n 19 9 4 w h en h e l eft t he co m pan y ; an d ( 6 ) i n l i g h t o f t h i s

co n cl u s i o n , Do s s’ s rem ai ni n g cl ai m s were m o o t. Th is ap p eal fo l l o wed

.

1

. In s ev eral rel at ed en u m erat i o n s of erro r, D o s s arg u es t h at th e t ri al co u rt erred

i n co ncl ud in g t h at (a) t he co u nt ercl ai m w as t im el y ; (b ) t h e Ag reem en t co n t ro l l ed ; an d

(c) h e was i n b reach o f t he Ag reem en t . W e d i s ag ree.

To b eg i n , we a g r e e w i t h t h e t ri al co u rt t h at t h e eq ui t ab l e rem ed y o f s p eci fi c

p erfo rm an ce i s ap p ro p ri at e here. “ Eq ui t y ju ri s d i ct io n i s es t ab li s h ed an d al l o wed fo r

t h e p ro t ect i o n an d rel i ef o f p art i es wh e r e , f ro m an y p ecu l i ar ci rcu m s t an ces , t h e

o p erat i o n o f t h e g en eral ru les o f l aw wo u l d b e d efi ci en t i n pro t ect in g fro m an t i ci p at ed

8wro ng o r rel i ev i n g fo r i n ju ri es d o n e.” OCGA § 2 3 -1 -3

. “ Eq u i t y co n s i ders t h at d o n e

wh i ch o u g h t t o b e d o n e an d d i rect s i t s rel i ef acco rd in g l y .” OCGA § 2 3 -1 -8

.

“ Sp eci fi c p erfo rm an ce i s an e q u it ab le rem ed y av ai l ab l e wh en th e d am ag es

reco v erab l e at l aw wo u l d n o t b e an ad eq u at e c o m p e n s at i o n fo r n o n p erfo rm an ce.”

(Ci t at i o n s , p u n ct ua t i o n , an d fo o t n o tes om i t t ed .) S imp s o n v. Pen der g a s t

, 2 9 0 Ga. Ap p.

2 9 3

, 2 9 7 (2 ) (a) (6 5 9 SE2 d 71 6 ) (2 0 0 8). Here, t h ere i s n o ad eq u at e rem ed y at l aw

g i v en t he n at u re o f t h e s t o ck i n t h is s m al l

, fam i ly -o w n ed b u s i n e s s , a n d t he ex p l i ci t

ack n owl ed gm en t i n th e Ag reem en t t h at s p eci fi c perfo rm an ce was t h e a p p ro p ri at e

rem ed y i n th e ev en t o f a b reach

. M o reo ver, g i v en t h e fai l u re o f al l p art i es t o s t ri ct l y

fo l l o w th e t erm s o f ei t h er th e Ag reem en t or By l aws , an eq u i t ab l e rem ed y “ co n s i d ers

t h at d on e wh ich o ug h t t o be do n e.” See OCGA § 23 -1 -8

. W i t h t h i s i n m i n d

, we t u rn

t o Do ss ’ s s u b s t an t i ve cl ai m s o n ap p eal

.

(a) W h et h er t h e t r i a l co ur t p r o p er l y a l l owed t he d ef en d an t s ’ co u n t er cl a i m

Do s s a r g u e s t h at t h e t ri al co u rt ab u sed i t s d i s cret i o n wh en i t p erm i t t ed t h e

d efen d an t s t o fi l e an am en d ed co un t ercl ai m s eek i n g s p eci fi c p erf o r m a n c e o f t h e

Ag reem en t . Th e t ri al co u rt d i d n o t ab u s e i t s d i s cret i o n

.

Here, Do s s ’s co m

p l ai n t al l eg ed b reach o f fi d u ci ary d u t y an d t o rt i ou s

i n t erferen ce ag ai n st Gary an d Ph i l l i p

. Do ss d i d n o t o ri g i n al l y nam e W al l ace El ect ri c

9as a d efen d an t

, bu t W al l ace El ect ri c was t h e p ro p er p art y t o d em an d t h at Do s s s el l o r

W al l ace El ect ri c rep u rch as e Do s s ’ s s h ares

. Th e am en d ed co u n t ercl ai m al leg ed t h at

Do s s wro n g fu l l y ret ai n ed h i s sh ares i n W al l ace El ect ri c d es p i t e rep eat ed d em an d s to

s el l hi s s h ares , an d t ha t e q u i t y r e q u i red h e b e o rd ered t o s el l hi s s h ares at th e 1 9 9 4

v al u e. OCGA § 9 -1 1 -1 3 (f) pro vi d es , “ [w] h en a p l ead er fai ls t o s et u p a co u n t ercl ai m

t h ro u g h o v ers i g ht

, i n ad vert en ce, o r ex cu s ab l e n eg l ect

, o r wh en ju s t i ce req u i r e s , h e

m ay b y l eav e o f co u rt s et u p t h e co u n t ercl ai m b y am en d m en t

. ” T h u s , i t was on l y aft er

Do s s ad d ed W al l ace El ect ri c t h at t h e co u n tercl ai m fo r s p eci fi c p erfo rm an ce b ecam e

rel ev an t an d ap p l i cab l e i n t h e p res en t s ui t

.

M o reo v er, g i v en t h at D o s s al s o s eek s s p eci fi c p erfo rm an ce o f W al l ace

El ect ri c’ s o b l i g at i o n t o rep u rch as e h i s s h ares , t h ere i s no p reju d i ce fro m al l o wi n g t h e

co u nt ercl ai m

. Ma r t in & Jo n es Pr o du ce, In c. v. Lu n d y , 1 9 7 Ga. Ap p

. 3 8

, 3 9 (2 ) (3 9 7

SE2 d 4 6 1 ) (1 9 90 ) (t ri al co u rt s h o u l d l i b eral l y al lo w o m i t t ed co u n t ercl ai m wh ere n o

p reju d i ce res u l t s). W e t h u s co n cl u d e t h at t he t ri al c o u rt p ro p erl y ex erci s ed i t s

d i s cre t i o n t o p erm it t h e am en d ed co u n t ercl ai m

. Ea r t h Li nk, In c. v. Ea ves , 2 9 3 Ga.

Ap p

. 7 5

, 7 8 (4 ) (6 6 6 SE2 d 4 2 0 ) ( 2 0 0 8 ) ( ap p l y i n g ab u s e of d i s cret i o n s t an d ard o f

rev i ew t o am en d m en t t o ad d co u n t ercl ai m ).

(b ) W h et h er t h e Ag r eemen t

wa s t h e co n t r o l l i n g d

o cu men t

10Do s s n ex t arg u es t h at th e t ri al co u rt erred b y co n cl u d i n g t h at t h e t erm s o f t h e

Ag reem en t co n t ro l l ed t h e s al e o f t he sh ares

. W e fi n d n o erro r i n t h e t ri al co u rt ’s

d et erm i n at i o n t h at t h e Ag reem en t g ov ern ed t h e s al e. 6

Sh areh o l d er ag reem en t s are co ns t ru ed acco rd i n g t o t h e p ri n ci p l es o f th e

l aw o f co n t ract s

. T he card i n al ru l e of co n t ract co n s t ru ct i o n i s t o

as cert ai n t h e i nt en t o f t he p art ies at t h e t i m e t h ey en t ered th e ag reem en t

. Co n st ru ct io n o f a co n t ract b y t h e co u rt in v ol v es th ree st ep s

. Fi rs t

, i f n o

am b i g u i t y ap p ears , t h e t ri al co u rt en fo rces t h e co n t ract acco rd i n g t o i t s

t erm s i rres p ect i v e o f al l t ech n i cal o r arb i t rary ru l es o f co n s t r u c t i o n

. Seco n d l y , i f am

b i g u i t y d o es ap p ear, t h e ex i s t en ce o r no n ex i s t en ce o f an

am b i g u i t y i s a q u es t i o n o f l aw fo r t he co u rt

. Fi n al l y , a q ues t i o n ari s es fo r

t h e fact fi n d er o n l y wh en t h ere ap p ears t o b e an am b i g ui t y i n t h e co n tract

wh i ch can n o t b e n eg at ed b y t h e co u rt ’ s ap p l i cat i o n o f t h e s t at u t o ry ru l es

o f co n s t ru ct i o n

.

(Ci t at i o n s an d fo o t n o t es o m i t ted .) Fo s t er v. Oh l wi l er , 2 6 6 Ga. Ap p

. 3 7 1

, 3 7 5 -3 7 6 (1 )

(b ) (5 9 7 SE2 d 48 1 ) (2 0 0 4 ). Here, i t i s cl ear th at t h e p art i es i n t en d ed t h at a s h areh o l d er

ret u rn h is s h ares t o t h e co m p an y wh en t h at s hareh o ld er was n o l o n g er an em p l o y ee.

6 W e n o te t hat th e t ri al co u rt b as ed i t s ru l i n g th at th e Ag reem en t co n t ro l l ed o n i t s erro n eo u s co n cl u s io n t hat t h e By l aws h ad ex p ired b efo re Do s s l eft t he co m p an y

. Co n t rary t o t h e t ri al co u rt ’ s co n cl u s i o n , t h e 2 0 -y ear v al i d i ty p ro v i s i o n i n O CGA § 1 4

- 2 -7 3 2 d oes n o t ap p ly t o s h areh o l d er ag reem en t s i n e f f ect p ri o r t o t h e en act m en t o f

t h i s s t at u t e. See An sl ey v. A n s l ey , 3 0 7 Ga. A p p

. 3 88

, 3 9 0 (1 ) (7 0 5 SE2 d 2 8 9 ) (2 0 1 0 ).

11To effect u at e t hi s i n t en t

, h o wev er, th e p art i es em pl o y ed t wo d i fferen t co n t ract s wi th

d i fferen t t erm s, an d we m u s t d et erm i n e w h i c h o f t h es e do cu m en t s co n t ro l s : t h e

By l aws o r t h e Ag reem en t.

“ An ex i s t i n g co n t r a c t i s s u p ers ed ed an d d i s ch arg ed wh en ev er t h e p art i es

s u b s eq u en t l y en t er u p o n a v al i d an d i n co n s i s t en t ag reem en t co m p l et el y co v eri n g t h e

subj e c t- m at t er em

braced b y t he o ri g i n al co nt ract .” (Ci t a t ion a nd punc tua tion om itte d. )

Tr i p l e Net Pr o p er t i es , LLC v. Bu r r u s s Dev. & Co n s t r., In c. , 2 9 3 Ga. A p p

. 3 2 3 , 3 2 7

(2 ) (a) ( 6 6 7 S E2 d 12 7 ) (2 0 0 8 ). Here, t h e Ag reem en t co nt rad i ct ed Art icl e V o f t h e

By l aws in t h e m an n er o f cal cu l at i ng t h e s h are v al u at io n at t h e t i m e o f rep u rch as e an d

b y s et t i n g a s p eci fi c t i m e fram e in wh i ch t he rep u rch as e w a s t o o c cu r. Al l p art i es

s i gn ed t h e Ag reem en t

, an d t here i s n o d i s p u t e as t o i t s val i d it y

. Th u s, b ecau s e t h e

v al u at i o n as s et fo rt h i n th e Ag reem en t i s i n co n s is t en t wi t h t h at s et fo rt h i n A rt i cl e V

o f t h e By l aws , t h e Ag reem en t s u p ers ed ed t h i s p o rt i o n o f t h e By l aws

.

(b ) W h et h er Do s s b rea ch ed

t h e Ag r eemen t

Do s s n ex t arg ues th at t h e t ri al co u rt erred i n fi n d i n g t h at h e breach ed t h e

Ag reem en t i n 1 9 9 4 b y f a i l i n g t o s el l h is s t o ck b ack t o t h e co m p an y u p o n h i s

t erm i n at i o n o f em

p lo y m en t

. W e co n cl ud e t h at t h e t ri al co u rt p ro p erl y d et erm i n ed t h at

12Do s s b reach ed t h e ag reem en t

, b u t th at i t erred i n i t s a n al y s i s o f wh en t h at b reach

o ccu rred

.

W e beg i n b y no t i n g t h at

, co n t rary t o t h e t ri al co urt ’ s fi nd i n g , t h e Ag reem en t i s

an ex ecu t o ry c o n tract

. See OCGA § 1 3 -1 -2 (b ) (“ An ex ecu t o ry co n t ract i s o n e in

wh i ch s o m et h i n g rem ai n s t o be d on e b y o n e o r m o re p art ies .”); Dr en no n Fo o d

Pr o du ct s Co

. v. Dr en no n , 1 0 1 Ga. Ap p

. 6 06

, 6 0 7 (1 ) (1 1 4 SE2 d 79 9 ) (1 9 6 0 ). Th e

Ag reem en t p l aced an affi rm at i v e d u ty o n each part y : “ t h e Sh areh o l d er

. . . s h al l s el l

,

an d t h e Co rp o rat i o n s h al l b u y ” t h e fo rm er em p l o ye e ’s st o ck

. Th e co n t ract req u i red

t h at t he s h ares b e rep u rch as ed wi t h i n 6 0 d ay s of Do s s ’ s d e p a r t u r e f r o m W al l ace

El ect ri c.

Im p o rt an t l y , h o wev er, n o o n e ad hered t o t h e Ag reem en t ’ s co n t ra c t u al

o b l i g at i o n t o bu y an d sel l t h e s to ck wi t h i n 6 0 d ay s o f Do s s ’ s t e r m i n a t i o n o f

em pl o y m en t i n 1 9 9 4. Befo re we can ad d res s wh i ch of t h e p art i es b reach ed

, we m u s t

co n si d er wh at effect t h at fai l ure h as o n t h e p art i es ’ o b li g at i o n s.

A wai v er m ay b e ex p res s , o r m ay b e i n ferred fro m act io n s , co n d u ct

, o r

a co u rs e o f d eal i ng

. W ai v er o f a co n t ract ri g h t m ay res u l t fro m a p art y ’ s

co n d u ct sh o wi ng h is el ect i o n b et ween t w o in co n si st en t ri g ht s

. Act i ng on

t h e t h eo r y t h at t h e co n t ract i s s ti l l i n fo rce, as b y co n t i n u i n g

p erfo rm an ce, dem an d i n g o r u rg in g p erfo rm an ce, o r p erm i t t i n g t he o t h er

p art y t o p erfo rm an d accep t i n g o r ret ai n i n g b en efi t s u n d er t h e co n t ract

,

13m ay co n s t i t u t e wai v er o f a b reach

. Ho wev er, al l t h e at t en dan t fact s ,

t ak en t o get h er, m

u s t am o u n t to an i n t en ti o n al rel i n q u i s h m en t o f a k no wn

ri gh t, i n o rd er t h at a wai v er m ay ex is t.

(Ci t at i o n s o m i t t ed

. ) Fo r

syt h Co u n t

y v. W at er s ca p e S vcs

., LLC

, 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). “ [W ] h ere, as h ere, th e f a c t s a n d ci rcu m s t an ces

es s en t i al t o t h e w ai v er i s s u e are cl earl y es t ab l i s h ed

, wai ver b eco m es a q u es t i o n o f

l aw.” (Ci t at i o n an d p u nct u at io n o m i tt ed .) Id

.

W e m ay i n fer wai v er wh ere a p art y ’s a ct s o r o m is si o n s are “ s o m an i fes t l y

co n si s 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 n o w n part i cu lar ri g ht or b en efi t t h at n o

o t h er reas o n ab l e ex p l an at i on of h i s co n d u ct is p o s s i bl e.” (Ci t at i o n an d fo o t n o t e

o m it t ed .) Ecker d Co r

p

. v. Al t er ma n Pr o

p s

., Lt d

. , 2 6 4 Ga. Ap p

. 72

, 7 5 (1 ) (5 8 9 SE2 d

6 6 0 ) (2 0 0 3 ). Bas ed o n t h e ev i d en ce i n t h e reco rd

, we co n cl u de t h at t here i s n o o t h er

reas on ab l e ex p l an at i o n fo r t h e p art i es ’ i n act i o n b u t t o i n f e r t h a t t h e part i es ’ m

u t u al

fai l u r e t o ad h ere t o t h e 6 0 -d ay rep u rch as e an d s al e t erm i n t h e A g reem en t was a

wai v er o f t h e breach an d a d eci s i o n t o t reat t h e rem ai n i n g co n t ract as in fo rce. See

An s ley v. An s l ey , 3 0 7 Ga. Ap p

. 3 8 8

, 3 93 (2 ) (7 0 5 SE2 d 28 9 ) (2 0 10 ); see al s o Ecker d

Co r p , s u p ra, 26 4 Ga. Ap p

. at 7 5 (1 ); W a t er sca p e S vcs

. , s u p r a , 3 0 3 G a. Ap p

. at 6 3 0

(2 ) (a).

14Hav i n g co n cl u ded t h at t h e 6 0 -d ay t erm i s n o lo n ger p art o f t h e co n t ract

, we t u rn

t o wh et h er Do s s s u b s eq u en t ly b reach ed th e Ag reem en t

. Bas ed o n t h e u n d i s p u t ed

fact s, we co n cl ud e t h at Do s s b reach ed th e Ag reem en t i n 2 0 0 3 w h e n h e refu s ed

Ph i l l ip ’ s req ues t t o rep u rch as e t h e s t o ck

.

As n o t e d

, t h e Ag reem en t was an ex ecu to ry co n t ract

. As su ch

, an at t em p t by

ei t h er part y t o p erfo rm u n der t h e co n t ract t ri g g ered t h e o t h er p art y ’ s d u t y to p erfo rm

.

Dr en n o n Fo o d Pr o d

u ct s Co

. , s u p ra, 1 0 1 Ga. Ap p

. at 6 0 7 (1 ). T h e fi rs t t i m e t h ere was

an y d i s cu s s i on reg ard i n g t h e s al e o f s h ares was i n 2 0 0 3

, wh en Ph i l l ip ap p ro ach ed

Do s s ab o u t s el l i n g h i s s t o ck

.

A p art y s eek in g s p eci fi c p erfo rm an ce m u s t b e re a d y , wi l l i n g , an d ab l e t o p erfo rm al l p ro v is i on s o f t h e co n t ract

, i n cl u d i n g an y p ay m en t. Bu t i t i s a wel l -es t ab l i s h ed ru l e t hat

t en der b efo re s u i t i s fi l ed m ay b e an d is wai v ed w h ere th e

p art y en t i t l ed t o p ay m en t, b y co n du c t o r d ecl arat i o n ,

p ro cl ai m s t h at

, i f a t en d er s h o u l d b e m ad e, accep t an ce

wo u ld b e refu sed

.

(Ci t at i o n s , p u n ct u at i o n , an d fo o t n o t es o m i tt ed .) S i mp s o n , s u pra, 29 0 Ga. Ap p

. at 2 9 7

(2 ) (a). Becau s e t h e Ag reem en t i s an ex ecu t o ry co n t ract

, Ph i l l i p ’ s req u es t o n b eh al f

o f W al l ace El ect ri c i n 2 0 0 3 t ri g g ered Do s s ’ s ob l i g at io n t o s el l, an d Do s s ’ s refu s al to

co m p l y at t h at t i m e co n s t i t u t ed an an t i ci p at ory b reach

.

15Do s s cl ai m s t h a t t h e d efen d an ts were n ot read y , wi l l i n g , an d ab l e t o p erfo rm

i n 20 0 3 becau s e t h ey d i d n o t t en d er a p u rch as e pri ce. Th i s arg um en t is wi t h ou t m eri t

.

On ce D o ss u n eq u i v ocal l y i n d i cat ed t hat h e wo u l d n ev er s el l h i s s t o ck

, t h e d efen d an t s ’

o b l i g at i o n to t en d er p ay m en t i n 2 0 0 3 was wai v ed

. S imp s o n , su p ra, 2 9 0 Ga. Ap p . at

2 9 7 (2 ) (a).

Th u s , t he rel ev an t y ear fo r p u r p o s es of t he b reach i s 2 0 03

, wh en W al l ace

El ect ri c ex erci s ed i ts o b l i g a t i o n t o rep u rch as e t he s t o ck

, an d Do ss refu s ed t o s el l

. 7

See, e.g ., Ca

p ps v. Ed wa r d s , 13 0 Ga. 1 4 6 (2 ) (6 0 SE 4 55 ) (1 9 08 ) (i n ex ecu t o ry

co n tract fo r s al e of s t o ck s , o n ce t en d er i s al l eg ed

, refu s al t o a d h e re t o co n t ract u al

7 Th e d efen d an t s al s o arg u e t h at Do ss is no t en t i tl ed t o s el l hi s s t o ck at t h e 2 0 1 5

v al u e b e c a u s e h e h as un cl ean han d s

. “ Th e d o ct ri n e o f u n cl ean h an d s i s a wel l -es tab l i s h ed p ri n ci p le. ‘ He wh o wo u l d hav e eq u i t y m us t d o eq u i t y an d m

u s t g i v e effect t o al l eq u i t ab l e ri gh t s of t h e o t h er part y res pect i n g t h e s u b j e ct m at t er o f t h e

act i on .’ OCGA § 2 3 -1 -1 0

. T h e u n cl ean -h an ds m ax im wh i ch b ars a co m p l ai n an t in

eq u it y fro m o b t ai n i n g rel i ef h as r e f e r e n c e t o an i n eq u i ty wh i ch i n fect s t h e cau s e o f

act i o n s o t h a t t o en t ert ai n i t wo u l d b e v i o l at iv e o f co n s ci en ce.” (Ci t at i o n an d

p u n ct u at i o n o m i t t ed

. ) P a r k v. Fo r t u n e Pa r t n er

, In c. , 27 9 Ga. Ap p

. 2 6 8

, 2 7 3 (6 ) (6 3 0

SE2 d 8 7 1 ) (2 0 0 6). Here, no ne o f t h e p art ies h av e cl ean h an d s: N o p art y at t em p t ed to
ad h ere t o t h e term s of t h e A g reem en t i n 1 9 94 ; Gary an d Ph i l l i p t h en m ad e n o at t em pt

t o o bt ai n t h e s hares wh en t h ey g ai n ed co nt ro l o f t h e co m p an y i n 2 0 0 0; an d

, o n ce t h e i s su e was rai s ed i n 2 0 0 3

, Do s s refu s ed to s el l h i s s hares

. Gi v en t h e co n d u ct of al l t h e

p art i es h ere, we fi n d t h at t he do ct ri n e o f un cl ean h an d s d oes n o t b ar t h e eq u i t ab l e s al e

o f t h e s t ock

.

16o b l i g at i o n al l o ws s ui t fo r d am ag es t o reco v er th e v al ue of t h e s t o ck acco rd i n g t o t h e

co n tract t erm s ).

2

. Do s s nex t co nt en d s th at t h e t ri al co u rt im p ro p erl y d et erm i n ed th e v al u e o f

h i s s t o ck b y u s i n g t h e 1 9 9 4 val u e an d di s co un t i n g h i s p ercen tag e fo r m i n o ri t y

i n t eres t

. 8 W e ag ree.

(a) Rel eva n t

t i me p er i o d

f o r va l u a t i o n o

f s t o ck

Gi v en o u r co ncl u s i o n i n Di v i s io n 1 t h at Do ss b reach ed t h e Ag reem en t i n 2 0 0 3,

t h e t ri al co u rt erred i n co n s i d eri ng W al l ace El ect ri c’ s v al u e i n 1 99 4

. Th e rel ev an t y ear

fo r v al u at i o n p u rp o s es i s 2 0 0 3

.

Acco rd i ng t o t h e ex p ert t es t i m o n y at t ri al , t h e “ fai r m ark et v al u e” of W al l ace

El ect ri c’ s s t o ck i n 2 0 0 3 was $ 1,8 3 4

, 3 0 5

. At t hat t i m e, D o s s o wn ed 16 .6 7 p ercen t o f

t h e co m p an y , wh i ch p l a c e d t h e “ fai r m ark et v al u e” of Do s s’ s s t o ck at $ 3 0 5 ,7 0 0.

Becau s e Do s s ’ s 16 .6 7 p ercen t s h are o f t h e co m p an y was n o t a co n t ro l l in g i n t eres t

, t h e

ex p ert a p p l i e d a m in o ri t y i nt eres t d i s co u n t t o 1 5 p ercen t, wh i ch h e t es ti fi ed m ad e

Do s s’ s s h ares wo rt h $ 2 5 9 ,9 0 0

.

8 Th e d efen dan t s ’ ex p ert t es t i fi ed t h at he u s ed t wo ap pro ach es t o cal cu l at e t h e

v a l ue an d t h at t h i s was co n si s t en t wi t h t h e Pro fes s i o nal St an dard s an d Co d e o f

Pro fes s i on al C o n duc t of th e Am eri can In s t i t u t e of Cert ifi ed Pu b l i c Acco un t an t s

. Do ss d o es no t ch al l en ge t h i s m et h o d o n ap p eal

.

17W e n o t e t h at t h e Ag reem en t req u i red t h a t t h e pu rch as e pri ce b e t h e “ cu rren t

v al u e” o f t h e s t o ck

, wh i ch t he Ag reem en t q u an t i fi ed as $ 1

, 8 0 6 per s h are. Th e

Ag reem en t

, h o wev er, al s o cal l ed fo r t h i s fi g u re t o b e re-ev al u at ed an n u al l y – a t as k

t h at u n d i s p u t ab l y was n ev er d o n e

. Th e re is n o th i n g i n t h e Ag reem en t t h at rel at es

v al u at i o n t o “ fai r m ark et v al ue.” Th erefo re, o n rem an d

, t h e t ri al co u rt m u s t d et erm i ne,

i n t h e fi rs t i n s t an ce, wh et her th e p art i es wai v ed t h i s v al u at i o n pro v i s i o n es t ab l i s h i n g

t h e cu rren t v al u e. If t h e t ri al co u rt d et erm in es th at t hi s pro v i si o n es t ab l is h i n g t h e

“ cu rren t v al u e” has b een wai v ed

, i t m u s t t h en d et erm i n e h o w t o es t ab l i sh t h e “ cu rren t

v al u e.”

(b ) Ap p l i ca t io n o

f a mi n o r i ty i n t er es t d

ed u ct i o n

Th e ex p ert ex p l ai n ed t h at t h e m i n o ri ty i n t eres t d is co u nt w as a fact o r in

d et erm i n i n g th e fai r m ark et v al u e b ecau s e t h e v al u e is “ affect ed b y t he ri g h t s an d

p ri v i leg es t h at i n t eres t has

, an d a m i n o ri t y i nt eres t can n ot

. . . di ct at e t h e co urs e o f t h e

co m p an y ” th u s m ak i n g t h e m i n o ri t y i n t eres t l es s v al uab l e. W e co n cl u d e t h at t h e t ri al

co u rt erred wh en i t d is co u n t ed t h e v al u e o f t h e s t o ck b as ed o n a m i n o ri t y

i n t eres t

.

In d i s cu s s i n g t h e m in ori ty i n t eres t d i s co u n t i n d i s sen t i n g s h areh o l d er l aws u i t s ,

t h i s Co u rt ex pl ai n ed :

18[M ] i n o ri t y an d m ark et ab i l i t y d i s co u n t s s h ou l d no t b e ap p l i ed wh en

d et erm i ni n g t h e fa i r v al u e o f d i s s en t in g s h areh o ld ers ’ s t o ck

. [Ot h er]

co u rt s h av e reas o ned t h at u s i n g d i s co u n t s i n ject s s p ecu l at i o n i n to th e

ap p rai s al p ro ces s , fai l s to g iv e m i n o ri t y s h areh o l d ers t h e fu l l

p ro p o rt i o nat e v al ue o f t hei r s to ck , en co u rag es co rp o rat io n s t o s q u eeze

o u t m i no ri t y s h areh o ld ers , an d p en al i zes t he m i n o ri t y fo r tak i n g

ad v an t ag e o f t h e p ro t ect io n affo rd ed b y d i s s en ters ’ ri g h t s s t at ut es

.

Refl ect i n g t h i s m ajo ri t y v i ew, t h e M o d el Act d efi n i t i o n o f fai r val u e

. .

. n o w ex p res s l y p ro v id es t h at fai r v al u e s ho u l d be d et erm i n ed w i t h o u t

d i s co u nt i n g fo r l ack o f m ark et ab i l i t y o r m i no ri t y s t a t u s

. Th e Offi ci al

Co m m en t t o t h e n ew M o del Act ex p lai n s

. . . t h at val u at i o n d i s co u nt s fo r

l ack o f m ark et ab i l i t y o r m i n ori t y s tat u s are i n ap p ro p ri at e i n m o s t

ap p rai s al act i o n s , b ot h b ecau s e m o s t t ran s act i o n s t h at t ri g g er ap p rai s al

ri gh ts affect t h e co rp o rat i o n as a wh o l e an d b ecau s e su ch d is co u n t s g iv e

t h e m ajo ri t y th e op p o rt u n i t y t o t ak e ad v an t ag e o f m i no ri t y sh areh o l ders

w h o h a v e b e e n f

o r c e d a g a i n s t t h ei r wi l l t o a c c e p t t h e

ap p rai s al -t ri g g eri n g t ran s act i o n

. . . . [A] p p rai s al s h ou l d g en eral l y award

a s h a r e h o l d er h i s o r h er p ro po rt i o n al i n t eres t i n t he co rp o rat i o n aft er

v al u in g th e co rp o rat i o n as a wh o l e, rat h er t h a n t h e v al u e o f th e

s h areh o l d er’ s s h ares wh en v al u ed al o ne.

(Ci t at i o n s an d fo o t n o t es o m i t t ed .) Bl i t ch v. Peo p l es Ba n k

, 2 4 6 Ga. Ap p

. 4 5 3

, 4 5 6 -4 5 7

(1 ) (5 4 0 SE2 d 6 6 7 ) (2 0 0 0 ) (d is cu s s i n g m i n o ri t y i nt eres t d i sco u n t i n d i s s en t er’ s ri g h t s

s u i t ). Al t h o u g h t h e i ns t an t cas e d o es n o t ari s e i n t h e c o n t e x t o f a d is s en ter’ s ri g h t s

19s u i t

, we fi n d t h e l o g i c o f o u r p ri o r h o l d i n g p ers u as i v e. W h ere, as h ere, t h e s t o ck

i n v o l v es a s m al l

, fam i l y -o wn ed b u s in e s s , w i t h l i t t l e m ark et ab il i t y , t h e val u e o f t h e

s h ares n eces sari l y acco u nt s fo r t h e m i n ori t y i n t eres t w i t ho u t fu rt her red u ct i o n

. Th u s ,

as Bl i tch m ak es cl ear, t h e t ri al co u rt erred i n ap p l y in g a m i n o ri t y i n t eres t d i s co u n t

.

Th e d efen d a n t s ’ r el i an ce o n At l a nt i c S t a t es Co n s t r

., In c. v. B ea ver s , 1 6 9 Ga.

Ap p

. 5 8 4

, 5 8 8 -5 8 9 (6 ) (d ) (3 1 4 SE2 d 2 4 5) (1 9 84 ), t o s up p o rt t h e t ri al co u rt ’ s u s e o f

t h e di s co u n t i s un p ers u as i v e, as t h at cas e i s p hy s i cal p r e ced en t o n l y

. M o reo v er,

Bea ver s do es n o t h o l d t h at a s t o ck h o l d er’ s m i no ri t y i n teres t m u s t b e co n s i d ered ;

rat h er, t h e o pi ni o n wa rn s t he tri al co urt to ap pl y th e m i n o ri t y in t eres t fact o r wi th

cau t i on an d ex p l ai n s t h at t h e val u at i o n can acco u nt fo r t h e s t o ck h av in g a l es s er v al u e

b ecau s e of a l ack o f m ark et ab i l i t y

. Id

. at 58 8 -5 8 9 (6 ) (d )

. N o t h i n g i n th e reco rd

co n vi n ces u s t h at t h e m i n o ri t y i n t eres t red u ct i o n s h o u l d ap p l y b ecau s e t h e v al u e

al read y t o o k i n t o acco u n t t h e l ack o f m ark et ab il i ty

.

I n s u m m ary , o n rem an d

, t h e t ri al co u rt s h o u l d d et erm i n e t h e v al u e o f Do s s ’s

1 6 .6 7 p ercen t s h are o f t h e s to ck as o f 2 0 0 3 wi th ou t t h e m i n o ri t y i n t eres t d i s co u n t an d

t ak i n g in t o acco un t t h at t h e Ag reem en t p ro v i d ed th at t h e p u rch as e p ri ce o f t h e s t o ck

wo u l d b e “ cu rren t v al u e.”

203

. D o s s n ex t cl ai m s t h at t h e t ri al co u rt ’ s award co n s t i t u t es an u n co n s t i t u t i o n al

t ak i n g o f h i s pro p ert y

. A l t ho u g h Do s s rai sed t h i s i s s ue b efo re t h e t ri al co u rt

, t h e t ri al

co u rt d i d n o t ru l e on i t

. Th u s, i t i s n o t p ro p erl y b efo re t h i s Co u rt

. Ci t y of Br o o kh a ven

v. Ci t y o f Ch a mb l e e , 3 2 9 G a

. Ap p. 3 4 6

, 3 5 3 (4 ) (7 6 5 SE2 d 3 3) (2 0 1 4 ) (“ a

co n st i t u t io n al i s su e i s wai v ed fo r ap p el l at e rev i ew wh ere t h e t ri al co u rt fai l s t o ru l e

u p o n i t .”). W e reco g n i ze t h at m o re recen t Su p rem e Co u r t o f G eo rg i a cas es h av e

s u g g es t ed th at rem an d i s n eces s ary fo r t he t ri al co u rt t o ru l e o n t h e co n s t i t u t i o n al

i s su e, h o wev er, w e fi nd rem an d is u n n eces s ary i n t h i s cas e b ecau s e t h e t ak i ng s

arg u m en t i s wi t h o u t m eri t

. See i d

. A t ri al co u rt ’ s o rd er i s s u in g an a ward i n a cas e

p en di n g b efo re i t i s s i m

pl y n ot an u n co n s t i t u t i o n al g o ver n men t a l t ak in g

.

4

. Fi n al l y , Do s s arg u es t h at t h e t r i a l co u rt d ep ri ved hi m of h i s ri g h t t o a ju ry

t ri al o n h i s cl ai m s fo r b reach of fi d uci ary d u t y , t ort i o u s d ep ri v at i o n , p u n i t i v e

d am ag es , an d at to rn ey

fees

.

In l i g h t o f o u r co n cl u s i o n i n Di v i s io n 1 t h at t h e breach o ccu rred in 2 0 0 3

, t h e

t ri al co urt ’ s co n cl us i on th at t h e cl ai m s were m o o t i s erro r. Fro m 1 9 9 4 t h ro u g h 2 0 0 3,

Do s s ret ai n ed a sh areh ol d er i n t eres t i n W al l ace El ect ri c. Th u s, h is cl ai m s fo r b reach

21o f fi d u ci ary d ut y d uri ng t h i s t im e f r am e s urv i v e, an d t h e t ri al co u rt m u s t ev al u at e

t h em o n rem an d

. 9

W e are m i n d f

u l t hat t hi s l i t i g at i on h as b een l en g t h y , an d t h at o u r Su p rem e

Co u rt h as al read y rem an ded t hi s cas e o n ce fo r fu rt h er fact u al fi n d i n g s. N ev ert h el es s ,

we m u st rem an d ag ai n

. W e u rg e t h e t r i a l c o u rt t o b ri n g t h is l en g t h y d is p u t e t o an

ex p ed i t i o u s co n cl u si o n co n s i s t en t wi t h t h e d i rect i o n s i n t h i s o p i n i o n

. Sp eci fi cal l y , o n

rem an d, t h e t ri al co u rt i s i ns t ru ct ed t o d et erm i n e t he “ cu rren t ” v al ue o f t h e s t o ck as

o f 2 00 3

, wi t ho u t ap p l y i n g an y m i n ori t y i n t eres t d i s co u n t

. M o reo v er, t h e t ri al co u rt

s h o u ld al l o w Do s s ’ s cl ai m s fo r b reach of fi du ci ary d u ty , t o rt i o u s dep ri v at i o n o f h i s

i n t eres t i n t h e co m

p an y , an d fo r at t o rn ey fees an d p u n i t i v e d am ag es fro m 1 9 9 4

t h ro u g h 2 0 0 3 t o p ro ceed

.

Ju d g men t va ca t ed a nd ca s e r ema n d

ed . An d r ews a n d Ri ckma n , JJ., co n cu r

.

9 W e ex p res s n o o p in i o n o n t h e t i m el i n es s o r m eri t o f t h o se al l eg at i on s

.

22