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

June 9, 2022



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A2 2 A0 49 3 . SEALS v . M AJ OR et al

.

D O Y LE , Pres i d i n g J u d g e.

In t h i s act i o n s t em m i n g fro m an al l e g e d p art n ers h i p ag reem en t, Pl ai n t i ff E.

Lam ar Seal s

, J r. (t h ro u g h hi s p ower o f at t orn ey Lo rri Swo rd s ) ap p eal s fro m t h e g ran t

o f s u m m ary j u d gm en t t o d efen d an t s D o n at a Ru s s el l M ajo r, Herm an J ero m e Ru s s el l

,

J r., J o i a M is h aaro n J oh n s o n

, an d Ed d i e B. Brad fo rd (as e x e c u t o rs o f t h e es t at e o f

Herm an J

. Ru s s el l ); H. J

. Ru s s el l & Co m p an y (“ t he Ru s s el l Co m

p an y ”); an d Ru s sel l

Real t y L i m i ted Part n ers hi p (co l l ect i v e l y “ Ru s s el l Defen d an ts ”). Becau s e t h e t ri al

co u rt erred b y

ru l i n g t hat t he reco rd co n t ai n s n o g en u i n e i s s ue o f m at eri al fact wi th

res p ect t o t h e fo rm at i o n o f a p art n ers h i p b et ween Seal s an d t h e Ru s s el l Defen d an t s

,

we rev ers e.“ On ap p eal fro m t he g ran t o f s u m m ary ju d g m en t t h i s Co u rt co n d u ct s a d e n o v o

rev i ew o f t h e ev i d en ce t o det erm i n e wh et h er t h ere i s a g en u in e i s s u e of m at eri al fact

an d wh et h er t h e u n d i s p u t ed fact s

, v i ewed i n t h e l i g h t m o s t f a v o r a b l e t o t h e

n o n m o v i n g p art y , warran t ju d g m en t as a m at ter o f l aw.” 1

Th e f act u al hi s to ry i s l arg el y u n d i s p u t ed an d s h ows t h at i n Oct o ber 1 9 8 0,

Herm an Ru s s el l

, J r., an d t h e Ru s s el l Co m p an y en t ered i n t o a wri t t en ag reem en t wi th

Seal s

, a fo rm er reg i o n al ad m i n i s t rat o r fo r t h e U

. S. Dep art m en t o f Ho u s i n g an d Urb an

Dev el o pm en t . Th at ag reem en t (“ Seal s Ag reem en t ”) p ro v i d ed :

W e, t h e UNDERSIGNED, Herm an J

. Ru s s el l

, H. J. Ru ss el l an d

Co m p an y [,] an d Lam ar Seal s

, h ereb y s et do wn i n wri t i n g o u r ag reem en t

t o d ev el o p t h e cap t i o n ed p ro ject i n t o an F H A In su red M u l ti fam i l y

Ho u si n g Pro

ject wi t h Sect i o n 8 as s i s t an ce p ay m en t s

.

Al l fu nd s d eri v ed as g en eral p art n ers p u rs uan t t o Sect i on s 6 .2 , 6 .5 an d

6 .6 o f t he Part ners h i p Ag reem en t (h erei n aft er i d en t i fi ed ) s h al l be p ai d

t o Herm an J

. Ru s sel l an d / o r H

. J. Ru ss el l an d Co m p an y an d s h a l l

t h ereaft er b e al l o cat ed an d p ai d as fo l l o ws :

1 (Pu n ct u at i o n an d ci t a t i o n om i t t ed .) Ho m e Bu il d er s A s s n

. o f S a va n n a h v.

Ch a t ha m Co u n t

y

, 2 7 6 Ga. 2 4 3, 2 4 5 (1 ) (5 7 7 SE2 d 5 6 4 ) (2 0 0 3 ), q u ot in g Y o u n g b l o o d

v. G wi n net t Ro ckd

a l e & c.

, 2 7 3 Ga. 7 1 5

, 7 1 7 (4 ) (5 4 5 SE2 d 8 7 5) (2 0 01 ) an d La u ’s

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

21

. A. Th e fu n d s accru i n g t o H erm an J

. Ru s sel l an d /o r H

. J. Ru ss el l an d

Co m p an y p u rs uan t t o Sect i o n 6 .2

, Sect i o n 6 .5 an d Sect i o n 6 .6 o f t hat

cert ai n Li m it ed Part ners h i p Cert i fi cat e an d Ag reem en t fo r Bed fo rd

To wer Ap t s ., Lt d . [“ t h e Ru s s el l Ag reem en t ”] , d at ed Oct o b er 1 5 , 1 9 8 0

,

an d fi l ed fo r reco rd i n Bo o k 1 8 0 at p ag e 24 5 i n t h e o ffi ci al reco r d s o f

Fu l t on Co u nt y , Geo rg i a, s h al l b e d i v i d ed an d al l o cat ed as fo l l o w s :

1 . Herm an J . Ru s s el l 5 0 %

2 . Lam ar Seal s 5 0 %

2

. Herm an J

. Ru s s el l an d H. J

. Ru s sel l an d Co m p a n y s h a l l hav e n o

l i ab i l i t y t o t he un d ers ig n ed fo r an y p ay m en t s m ad e by t h em i n g o o d fai t h

p u rs uan t t o t h i s ag reem en t

, o r p urs u an t t o t h e Part n ers h i p Ag reem en t o r

Dev el o p m en t Ag reem en t fo r t h i s p ro j ect

.

3

. A n y l i ab i l it y accru i n g as a res u l t o f th e p ro j ect o r as a res ul t o f b ei n g

a Gen eral Part ner o f t h e p ro ject s h al l b e b o rn e b y each of th e

u n d ers i g n ed t o t h e s am e ex t en t as t h e p ercen t ag e al l o cat io n of p ro fi t s as

s et fo rt h i n Parag rap h 1 ab ov e.

Th i s s et s fo rt h o u r en t ire ag reem en t co n cern i ng t h e cap ti on ed p ro ject

.

On o r ab o u t t h e sam e d ay

, t h e Ru s s el l Ag reem en t w as ex ecu t ed b y Herm an J

.

Ru s s el l

, t h e Ru s s el l Co m

p an y

, an d Su l g rav e Real t y Co rp

. In rel ev an t p art

, th e Ru s sel l

Ag reem en t p r o v i d ed t hat t h e p u rp o se o f t h e p art n ers h i p was t o “ acq u ire, own an d

3h o l d cert ai n real p ro p ert y

. . . an d t o b u i l d an d d ev el op

. . . an d t o o wn an d o p erat e an

ap art m en t pro

j ect [“ B e d f

o r d To wers ”]

. . . i n wh i ch 1 0 0 [p ercen t ] o f th e ap art m en t

u n i t s wi l l b e el i gi b l e fo r ho us i ng as si s t an ce p ay m en t s p u r su an t t o t h e p ro v i s i o n s o f

Sect i o n 8 o f t h e U. S. H o u s i n g A c t o f 1 9 3 7 .” 2 W i th res p ect t o t h e part i es t o t h e

Ru s s el l Ag reem en t

, Ru s s el l an d t he R us s el l Co m

p an y were n am ed as g en eral p art n ers

an d were s o l el y r e s p o n s i b l e fo r m an ag in g t h e b u si n es s an d t h e Bed fo rd To wers

p ro ject

. Th e ag reem en t fu rt her p ro v i d ed fo r cert ai n cap it al co n t ri b u t i on s b y v ari ou s

cl as s es o f p art n ers 3 an d cert ai n al lo cat i on s o f m o n ey t o th e p art n ers : Ru s s el l an d t h e

Ru s s el l Co m

pan y (as g en eral p art ners ) wo u l d co l l ect iv el y recei v e 4 0 p ercen t o f t h e

cas h fl o w 4 (Sect i o n 6 .2 ); p ro ceed s of a s al e wo u l d b e a l l o cat ed u nd er a cert ai n

2 Th at act p ro v i d es fo r cert ai n ho u s i n g p ay m en t s o n b eh al f o f q u al ify i n g l o w

i n co m e i nd i v i d u al s

. See 42 U SCS § 1 4 3 7 f (a) (“ Fo r t h e p urp o s e o f ai d i n g l o w-i n co m e

fam i l i e s i n o b t ai n i ng a d ecen t p l ace to l i v e an d o f p ro m o t i n g eco n o m i cal l y m i x ed

h o u s i n g

, as s i s tan ce p ay m en t s m ay be m ad e wi t h res p ect t o ex i st i n g h ou s i n g i n

acco rd an ce wi t h t he p ro v is i o n s o f t h i s s ect i o n .”).

3 Th e Ru s sel l Ag reem en t req u i red Ru ss el l an d h is co m p an y each t o co n t ri b u t e

o n l y $ 5 0 0

. Aft er cert ai n o t h er p art ies h ad b een rep ai d t h ei r co nt ri bu t i o n

, Ru s s el l an d

t h e Ru s s el l Co m

p a n y wo ul d h av e a 5 0 p ercen t in t eres t i n th e cap it al o f t h e Ru s sel l

Ag reem en t p art n ers h i p

.

4 Art i cl e 6 o f t h e Ru s s el l Ag reem en t d efi n ed “ cas h fl o w o f t h e Part n ers h i p ” as :

t h e n et p ro fi t s an d l o s ses o f t h e Part n ers h i p

. . . (ex cl u d i n g t h erefro m

p ro fi t s o r lo s ses on t h e s al e, ex ch an ge o r o t her d i s p o s i t i o n o f Part n ers h i p

4fo rm

u l a (Sect i o n 6 .5 ); an d p ro ceed s o f refi n an ci n g wo u l d b e al l o cat ed u n d er a cert ai n

fo rm u l a (Sect i o n 6 .6 ). N et p ro fi t s were al lo cat ed t o t h e ex ecu t in g part ners i n Sect i o n

5 o f t h e Ru s sel l Ag reem en t

.

It i s u nd i s p ut ed t h at aft er Seal s a n d R u s s el l ex ecu ted t h e Seal s Ag reem en t

,

Seal s recei v ed reg u lar p ay m en t s p u rs u an t t o t h e Seal s Ag reem en t

. In Decem b er 1 9 9 3,

Ru s s el l fo rm ed Ru s s el l Real t y Li m i t ed Part n ers h ip t hat was cap i t a l i zed i n p art by

Ru s s el l ’ s i n t eres t i n t he Ru s s el l Ag reem en t . Th ereaft er, i n 2 0 1 4, Ru s sel l d ied

.

In M arch 2 0 18

, t h e Bed fo rd To wers ap art m en t s were s o l d t o an en t it y cal l ed

Th e Res i den ces at M ag g i e Cap i t o l

, LLC, wh i ch was o wn ed b y co m p an i es co n t ro l l ed

b y Ru s s el l an d / or h i s fam i l y

. No d i s b u rs em en t fro m t h e s al e was m ad e t o Seal s in

2 0 1 8

, an d Seal s w as n o t i n fo rm ed o f th e s al e u n t i l h e i n q u i red ab ou t t h e s t at u s o f h i s

d i s t ri b u t i o n s i n J an uary 2 0 1 9

. Seal s was t h en in fo rm ed of t h e s al e an d p res en t ed wi th

p ro p ert y an d t h e p ro ceed s o f an y refi n an ci n g o f Part n ers h i p p ro pert y );

. . . pl u s d ep reci at i o n an d [cert ai n t ax d ed u ct ib l e] co n s t ru ct i o n

wri t ed o w n co s ts

. . . m i n u s [m o rt g ag e pay m en t s an d cert ai n o t h er cap i t al

ex p en s es ]

.

Art i cl e 5 o f t h e ag reem en t defi n ed “ n et p r o f i t s an d l o ss es ” as : “ th e n et p ro fi t o r n et

l o s s

. . . o f th e Part n ers h ip as s h o w n o n i t s b o ok s o f acco un t aft er d ed u ct i o n o f

ex p en s es , d ep reci at i o n an d s uch o t h er ch arg es o r ad d i t i on s as are ap p ro pri at e.”

5a ch eck fo r $ 8 56 ,4 03 .2 1 o n t he co n d i t i o n t h at h e s i g n a p ro po s ed rel eas e of fu rt h er

o b l i g at i o ns wi th res p ect t o t h e p ro ject

.

Seal s d ecl i n e d to si g n t h e p ro p o s ed rel eas e wi t h ou t an acco u n ti n g an d m o re

i n fo rm at i o n ; h e l at er accep t ed t h e $ 8 5 6 ,4 0 3 .2 1 p ay m en t b u t rem ai ned u n s at i s fi ed

wi t h o u t a fu l l acco u n t i n g an d u n d ers tan d i n g o f t h e fi n an ci al h is t ory an d s t at u s o f t h e

p ro ject

. Acco rd i n g ly, S e a l s fi led t h e pres en t act i on i n Decem b er 2 0 1 9

, as s ert i n g

cl ai m s (as am en d e d ) fo r d ecl arat o ry j u d gm en t (l at er wi t h d rawn ), acco u n t i n g

, an d

d am ag es fo r b reach o f fi d uci ary d u t y

, b reach o f co n t ract

, m o n ies h ad an d recei v ed

,

an d at t o rn ey fees

. Fo l l o wi n g d i s co very

, Seal s m o v ed fo r p art ial s u m m ary ju d g m en t

,

an d t h e d efen d an t s m o v ed fo r s u m m ary ju d g m en t o n al l cl ai m s

.

Th e tri al co u rt d en i ed Seal s ’ s m o t i o n an d g ran t ed t h e defen d an t s’ m o t i o n

. 5 In

rel ev an t p art

, th e t ri al co u rt ru l ed t h at : (a) t h ere was n o g en u i n e fact ual i s s u e as to

wh et h er Seal s an d Ru ss el l an d t h e Ru s s el l Co m p an y had en t ered i n t o a p art n ers h i p,

(b ) t h e p art i es o th erwi se l ack ed a fi d u ci ary rel a t io n sh i p

, (c) Seal s ’ s m o n ey h ad an d

recei v ed cl ai m fai l e d b a s e d o n t h e u n di s p u t ed ev i d en ce, an d (d ) Seal s ’ s b reach o f

co n tract cl ai m

fai l ed b as ed o n t h e u n d i s p u t ed ev i d en ce an d co n t ract u al l an g u ag e.

5 Th e t ri al co u rt had earl i er d en i ed t he d efen d an t s ’ m ot i o n to d i s m i s s fo r fai l u re

t o s t at e a cl ai m

b as ed o n t h e p l ead i n g s

.

61

. Seal s fi rs t co n ten d s t h at t h e t ri al co u rt erred b y ru l i n g as a m at t er o f l aw t h at

t h ere was n o p art n ers h i p b et ween Seal s an d t h e Ru s s el l Co m pan i es . W e ag ree.

Det erm i n i n g t h e ex i st en ce o f a p a r t n e r sh i p “ i s g en eral l y a m i x ed q u es t i o n o f

l aw an d fact

, an d can no t b e r e s o l v ed as a m at t er o f l aw u n l es s t h e v erd i ct o n e way

o r t h e o t h er i s d em an ded b y t h e ev id en ce.” 6

Al t h ou g h t h e q u es ti o n o f wh at wi l l co n s t i t ut e a p art n ers h i p i s a m at t e r

o f l aw fo r t h e co u rt

, i n t h e ab s en ce o f an u n am b ig u o u s co n t ract o f

p art n ers h i p o r o f an y w ri t t en art i cl es o f part n ers h i p

, it i s a q u es t i on o f

fact fo r t h e ju ry t o d eci d e, u n d er p ro p er i n s t ru ct i o n fro m t h e co u rt

,

wh et h er t he i n t en t io n o f th e part i es w as t o b eco m e part ners an d wh et h er

a p art n ers h ip ex is t ed as t o t h ird p art i es at t he t i m es i n q u es t i on

. 7

Un d er OC G A § 1 4 -8 -6 (a), “ [a] p art n ers h ip i s an as so ci at i o n o f t wo o r m o re

p ers o n s t o carry o n as co -o wn ers a b u s i n es s fo r p ro fi t

. . . .” M ore sp eci fi cal l y

, OCGA

§ 1 4-8 -7 p ro v i d es :

6 (Pu n ct uat i o n om it t ed .) Po p e v. Tr i a n g l e Ch emi ca l Co

. , 1 5 7 Ga. Ap p

. 3 8 6

, 3 8 8

(3 ) (a) (2 7 7 SE2 d 7 58 ) (1 9 8 1 ), q u o t i n g Mi r a g l i a v. G o s e

, 1 7 Ga. A p p

. 6 3 9 (8 7 SE2 d

9 0 6 ) (1 9 1 6 ). See al so Ja ma l v. Hu s sei n

, 23 7 Ga. Ap p

. 7 7 9

, 7 8 0

- 7 8 1 (1 ) (5 1 5 SE2 d

4 0 7 ) (1 9 9 9 ) (“ Part n ers h ip i s a m i x ed q u es t i o n o f fact an d l aw.”).

7 (Pu n ct uat i o n om it t ed .) So u t h er n Co n cre te P roduc t s C o. v

. Ro b er t

s on

, 1 2 9 Ga.

Ap p . 4 6 , 4 8 (1 9 8 SE2 d 5 1 2 ) (1 9 7 3 ) (p h y s i cal p reced en t o n l y ).

7I n d e t e rm i n i ng wh et h er a p art n ers h ip ex is t s, t h e fo l l o w i n g ru l es s h al l

a p p l y:

. . . Th e s h a r i n g o f g r o s s r et u r n s d

o es n o t o f i t s el f es t a b l i s h a

p a r t n er s h i p

, wh et h er o r n o t t h e p ers o n s sh ari n g th em h av e a jo in t o r

co m m o n ri gh t o r i n teres t i n an y p ro p ert y fro m w h i ch t h e ret u rn s are

d eri v ed ; [an d ]

. . . [

t ] h e recei p t b y a p er s o n o f a s h a r e o

f t he p r o fi t s o f a

b u s i n e s s is p r ima -f

a ci e evi d en ce th a t h e i s a p a r t n er i n t h e bu s in es s ;

p ro v i d ed

, h owev er, t hat n o s u ch i n feren ce s h al l be d rawn i f p ro fi t s were

recei v ed i n p ay m en t o f [cert ai n o b l i g at i o n s n ot at i s s u e h ere]

. 8

Fu rt her,

[a] p art ners h i p can res u lt fro m a co n t ract , wh i ch m ay

b e ei t h er ex p res s

o r i m p l i ed

. Fact o rs t hat i n d i cat e t h e ex i s t en ce of a part n ers h i p i n cl u de

a co m m o n en t e r p ri se, t h e s h ari n g o f ri s k

, t h e s hari n g of ex pen s es

, th e

s h ari n g o f p ro fi ts an d l o s s e s, a jo i nt ri g h t of co nt ro l o v er t he b us i n es s

,

an d a j o i n t own ers h i p of cap i t al

. Bu t t h e t ru e t es t t o d et erm i n e wh et h er

a p art n ers h i p h as b een creat ed i s t he i n t en ti o n o f th e p a r t i es

. T he

l an g uag e wh i ch t h e p art ies u s ed i n m ak i n g th e co nt ract i s t o b e l o o k ed

t o i n d et erm i n i ng wh at t h ei r in t en t i o n was

, wh i ch wh en as cert ai n ed wi l l

p rev ai l o ver al l o t her co n s i d erat i on s

. 9

Th u s, i t i s t h e i n t en t i on o f Seal s an d Ru s sel l t hat m us t b e as cert ai n ed

.

8 (Em p h as i s s u p pl i ed .) OCGA § 1 4 -8 -7 (3 ), (4 ).

9 (Pu n ct u at io n o m i t t ed

. ) W i mp y v. Ma r t i n

, 3 5 6 Ga. Ap p. 5 5

, 5 7 (1 ) (a) (8 4 6

SE2 d 2 3 0) (2 0 2 0).

8It i s u n d i s p u t ed t h at Seal s

, wh o i s el d erl y

, i s i n co m p et en t t o t es t i fy

, an d Ru s sel l

i s d e c eas ed

. Th e ev i d en ce o f th e p art i es ’ i n t en t i s p ri m ari l y t he Seal s Ag reem en t

,

wh i ch refers t o t h e Ru ss el l Ag reem en t ; t h es e d o cu m en ts an d t hei r co n tex t i n fo rm t h e

an al y s i s reg ard i n g wh et h er t h e p art i es i n t en ded to en t e r in t o a p art ners h i p

. 1 0 Th e

co n tex t in cl u d es t h e u n d i s p u t ed fact s th at Seal s was a fo rm er reg i o nal ad m i n i s t rat o r

fo r HUD, an d t h e p ro

ject s o u gh t t o co m

p l y wi t h HUD reg ul at i o n s reg ard in g a Sect i o n

8 l o w i nco m e h o u s in g d ev el o p m en t

.

Un d er t h e Ru s s el l Ag reem en t

, Ru s s el l an d h i s co m p an y were gen eral p art n ers

i n t h e o ri g i n al Bed fo rd To wer A p a rt m en t s d ev el o p m en t p ro ject

. Un d er t h e Seal s

Ag reem en t

, Ru s s el l en t ered i n to a s ep arat e ag reem en t wi t h Seal s, sh ari n g th e p ro fi t

an d l i ab i l i t y o f th e g en eral p art n ers as o ut l i n ed i n t he Ru s s el l A g r eem en t

. No t ab l y

,

t h e l i ab i l i t y Ru s s el l s h ared w i t h Seal s ex t en d ed to “ an y l i ab i l i t y accru in g as a res u l t

o f t h e p r o

j e ct o r as a res u l t o f [Ru s s el l ] b ei n g a Gen eral Part ner o f t h e pro ject .”

Es s en t i al l y

, in ex ch an g e fo r 5 0 p ercen t o f net p ro fi t s d ue to Ru s s el l an d h i s co m p an y

,

1 0 Lo rri Seal s

, Seal s ’ s d au g h ter an d p o wer o f at t o rn ey

, i s i n v o l v ed i n th e cu rren t

o p erat i o n s o f Seal s ’ s b us i nes s i n t eres t s

. Sh e d ep o s ed t h at a p art n ers h i p was fo rm ed

, b u t th at was b as ed o n h er rel i an ce on t h e s h ari n g o f p ro fi t s an d l iab i l i t ies as s t at ed in

t h e Seal s ag reem en t

.

9Seal s was accep t i n g h al f o f t h e l i ab i l i t y fo r t h e p ro ject

, ex p l i ci t l y i n cl u d i n g Ru s s el l ’ s

l i ab i l i t y as a g en eral p art n er i n t h e Ru s s el l Ag reem en t

.

As n o t ed ab o ve, OCGA § 1 4 -8 -7 (4 ) st at es t h at s h ari n g i n net p ro fi t s i s p ri m a

faci e ev i d en ce of p art n ers hi p (ab s en t cert ai n ex cep t i on s n o t ap p l icab l e h ere), an d t h e

Seal s ag reem en t p l ai nl y d em on s t rat es s hared n et p ro fi t s

. So b y t h at fact al o n e, Seal s

h as p u t fo rt h pri m a faci e ev i d en ce o f p art n ers h i p

. Bu t t h e S e a l s A g reem en t g o es

fu rt her, as i t refers to an d i s en m es h ed wi t h t h e Ru s s el l A g reem en t : i t es t ab l i s h es t h e

s h ari ng o f l i ab i l i t y (n o t m erel y l o s s es

, fo r ex am pl e, o f cap i tal i nv es t m en t 1 1 ) accru i n g

as a res u l t o f t h e p ro

j e c t

— s p eci fi cal ly “ an y l i ab il i ty accru i n g as a res u l t o f t h e

p ro ject ” o r as to Ru s s el l i n h i s ro l e as a g en eral p art n er as en um erat ed i n t h e Ru s sel l

Ag ree m e n t

. T h us

, th i s i s n ot a cas e in wh ich t h ere was a m ere “ s h ari n g o f g ro ss

ret u rn s ” 1 2 an d n o t h in g m o re; t h ere was a s hari n g o f n et p ro fi t s an d ov eral l l i ab i l i t i es

,

s p eci fi cal l y

t ho s e l i ab i li t i es o f a g en eral p art n er i n t he d ev el o p m en t o f t h e p ro ject

.

1 1 Co m p are F l o yd v. Ki ckl i

g h t er

, 1 3 9 Ga. 1 3 3

, 1 3 8 (7 6 SE 1 0 1 1) (1 9 1 2 ) (“ [A] n

ag r eem en t t o s h are pro fi t s an d l o s s es d o es no t ab s o l u t el y

, an d as a m at t er o f l aw,

creat e a part ners h i p ; an d i f o t h er ci rcu m s t a n c e s i n t h e t ran s act i on s h o w t h at t h e

p art i es d i d n o t i n t en d (i n t h e l eg al s en se h eret o fo re ex p l ai ned ) to creat e a p art n ers h i p,

n o n e i s creat ed

. T h e t ru e ru l e i s t h at s u ch an ag reem en t is m erel y p ri m a faci e ev i d en ce

o f a p art n ers h i p .”).

1 2 OCGA § 14 -8 -7 (3 ) (“ Th e s h ari ng o f gro s s ret u rn s do es n o t o f it s el f es t ab l i s h

a p art ners h i p . . . .”).

10Co u rt s h av e h el d th at p art i es m ay b e deem ed p art n ers b as ed o n t h e s t ru ct u re o f

t h e ir rel at i on s h ip

, ev en i f t h ey d i s cl ai m p art n ers hi p i n t h e ag reem en t at i s s u e. 1 3

Co n v ers el y

, co u rt s h av e s tat ed t h at p art i es can ag ree am o n g th em s el v es to es t ab l i s h

a part n ers h i p “ ev en t h ou g h [a wri t t en ] ag reem en t fal l s s h ort o f t h e fact s fro m wh i ch

t h e l aw w o u l d o th e r w i s e h av e i n ferred a p art n ers h i p .” 1 4 Th u s

, it i s th e rel at i o n s h ip

i n t en t i o n al l y

en t ered i nt o b y

t he p art i es t h at rev eal s t h ei r l eg al s t at u s

.

Th ere i s n o m at eri al am

b i g u i ty i n t h e co n t ract u al l an gu ag e as t o t h e un d erl y i n g

o b l i g at i o ns of th e p art i es i n t h e Seal s Ag reem en t an d Ru ss el l A g r e em en t

. Read

t o g et h er, t hey creat e a co m m o n en t erp ri s e, a s h ari n g o f p ro fi t s

, an d a s h ari n g o f

p ro ject l i ab i l i t ies an d g en e r a l p art n er l iab i l i t i es

— an d t h erefo re ri sk

— b et ween Seal s

an d Ru s s el l t h at

, u n d er ap pl i cab l e l aw, are s u ffi ci en t t o creat e a qu es t i o n o f fact as to

wh et h er t h ey fo rm ed a p art ners h i p as b et ween t h em sel v es

. In t h i s co n t ex t, t h e fact

t h at t h e d efen dan t s d i s pu t e t h e fo rm at i o n o f a p art n ers h i p i s n o t d i s p o s i t i v e o n

1 3 See Aa r o n Ren t

s v. Fo ur t een t h S tr eet Ven t u r e, L.P.

, 2 4 3 Ga. Ap p

. 7 4 6

, 7 4 8

(1 ) (5 3 3 SE2 d 7 5 9 ) (2 0 0 0 ) (“ If t h e p art ies i n t en d t o

, an d in fact d o

, en t e r i n t o [a

p art n ers hi p ] co n t ract

, t h ey wi l l b e p art n ers u n der t h e l aw ev en t h o u g h t h ey m ay h av e

ex p res s l y s t i pu l at ed t h at t h ey

are n o t p art n ers .”).

1 4 ( P u n ct uat i o n o m i t t ed .) Acco la d es Ap a r tmen t

s

, L.P. v. F

ulton C ounty

, 279 G a

. 2 5 7

, 2 5 9 (1 ) (6 1 2 SE2 d 2 8 4 ) (2 0 0 5 ), q u o ti n g Hu g gi n s v. Hu g

g i ns

, 1 1 7 G a. 1 5 1

, 1 5 6

(4 3 SE 7 5 9 ) (1 9 03 ).

11s u m

m ary ju d g m en t

. In s t ead

, s u ch a d i s p u t e i s p art an d p arcel o f a cas e no t ri p e fo r

res o l ut i o n as a m at t e r o f l aw b y t h e t ri al co u rt

. A s no t ed ab ov e, t h e q ues t i o n o f

p art n ers hi p fo rm at i o n i s a m i x ed q u es t i o n o f fact an d l aw. Here, t h e l eg al q u es t i on s

are n o t m at eri al l y d i s p u ted

— t h e ap p l i cab l e co n tract t erm s are n o t m at eri al l y

am bi g uo u s as t o al l o cat i o n o f p ro fi t an d ri s k

— b u t th e ev i d en ce b efo re u s

, wh en

v i ewed fav o rab l y t o Seal s

, 1 5 w o u l d s u p p o rt an i n feren ce th at Seal s an d Ru s s el l h ad

t h e req u i si t e i n t en t i o n t o fo rm a rel at io n sh i p d eem ed t o b e a p art n ers h i p u n d er t h e

l aw. Bas ed o n t h is reco rd

, s u m m ary ad ju d i cat i o n of t h i s q u es t i on was n o t

ap p ro p ri at e. 1 6

1 5 See Ma t j o u l i s v. In t eg on Gen

. In s

. Co rp

. , 2 2 6 Ga. A p p

. 4 5 9

, 45 9 (4 8 6 SE2 d

6 8 4 ) (1 9 9 7 ) (“ A d e n o v o st an d ar d of rev i ew ap p l i es t o an ap p eal fro m a g ran t o f

s u m m ary ju d g m en t

, an d we v i ew 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 fro m

i t , i n t h e l i g h t m o s t fav o rab le t o t h e n o n m o v an t .”).

1 6 See S o l o mo n v. Ba r net t

, 2 8 1 Ga. 1 3 0

, 13 1 (6 3 6 SE2 d 5 4 1 ) (2 0 0 6 ) (“ Ap p l y i n g

o u r h o l d i n g i n [ La u ’s Co r p

. , 26 1 Ga. at 4 9 1]

, we reco g ni ze t h at Barn et t

, as a n am ed

d efen d an t

, co u l d p rev ai l at su m m ary ju d g m en t u n d er O CGA § 9

- 1 1

- 5 6 o n l y b y

a f f i r ma t i vel y d i sp r o vi n g So l o m o n ’ s cl ai m w i t h h i s o w n ev i d en ce es t ab l is h i n g t h e

ab s en ce of an y g en u in e i ss u e o f m at eri al fact o r b y sh o w i n g fro m t he affi d a v i t s

, d ep os i t i o n s an d o t h er d o cu m en t s i n t h e reco rd t h at t h ere was an a bs en ce o f evi d en ce

t o s u pp o rt at l eas t o n e es s en t i al el em en t o f So l o m o n ’ s cl ai m .”) (em p h as i s s u p p l i ed ).

S e e a l s o H

a r r i s on v. W

il l i a ms

, 2 7 0 Ga. Ap p

. 3 0 8

, 3 1 0 (3 ) (6 05 SE2 d 9 2 3 ) (2 0 0 4 )

(s u m m ary ju d g m en t precl u d ed b y fact u al i s su es w i t h res p ect to t h e l eg al s tat u s o f t h e

p art i es in a co n t ract d i s p u t e); Fed er al In s

. Co

. v. W

es t s i d e S u p p l y Co

. , 2 6 4 G a. Ap p.

2 4 0 , 2 4 7 (8 ) (5 9 0 SE2 d 2 24 ) (2 0 0 3 ) (fact ual i s s u es p recl u de s u m m ary ju d gm en t ).

122

. Becau s e t h e q u es t i o n o f p art n ers h ip b ears o n t he q u es ti o n s o f fi du ci ary d u t y

,

acco u n t in g

, m o n ey

h ad an d recei ved

, 1 7 an d b reach o f co n t ract cl ai m s

, 1 8 we l i k ewi s e

rev ers e t he g ran t o f s u m

m ary ju d g m en t as t o t h o s e cl ai m s.

3

. L as t

, w e no t e t h at t h e Ru s sel l Defen d an t s al s o co n t en d t h at t h e t ri al co urt ’ s

ju d g m en t s h ou ld b e affi rm ed un d er t h e ri g h t fo r an y reas o n ru l e, ci t i ng t h ei r t ri al co u rt

arg u m en t t h at Seal s ’ s cl ai m s do n o t co m pl y wi t h ap p l i cab l e s t at u t es o f l i m i t at i o n

. Th e

t ri al co u rt d ecl i n ed t o ad d res s t h es e arg u m en t s i n l i g h t o f i t s o th er h o l d i n g s

.

1 7 “ A c l a i m fo r m o n ey had an d recei v ed co nt ai ns t h e fo l l o wi n g el em en t s : ‘ a

p ers o n h as recei v ed m on ey of t h e o t h er th at i n eq ui t y an d g o o d co n s ci en ce h e s h o u ld

n o t b e p erm i tt ed t o k eep ; d em an d fo r rep ay m en t h as b een m ad e; an d t h e d em an d was

refu sed .’ ” W

i l s o n v

. We r n o ws ky

, 3 5 5 Ga. Ap p

. 8 3 4, 8 43 (2 ) (b ) (8 46 SE2 d 1 0 1 )

(2 0 2 0) (p u nct uat i o n o m i t t ed ). Th e tri al co u rt co rrect l y n o t ed t h at t h ere is an ab s en ce

o f e v i d e n c e t h at Seal s co n t ri b u t ed m o n ey t o t h e Ru s s el l Defen d an ts

, b u t i n l i g h t o f

o u r h o l d i n g i n Di v i s i o n 1

, t h i s cl ai m m u s t be ad d res s ed in t h e co n t e x t o f t h e

rem ai n i n g l eg al cl ai m s an d acco rd i ng to t h e l eg al s tat u s of t h e part i es : “ ‘ An act i o n fo r

m o ney had an d recei v ed i s fo un d ed u p o n t h e eq u i t ab le p ri n ci pl e t h at n o o n e o u g h t to

u n ju s t l y en ri ch hi m s el f at th e ex pen s e o f an ot h er, a n d i s m ai n t ai n ab l e i n al l cas es

wh ere o n e h as recei v ed m on ey u n d er s u ch ci rcu m s t an ces t h at i n eq u i t y an d g o o d

co n sci en ce h e o u g h t n o t t o ret ai n i t

. ’ ” Id

. at 8 4 2 (2 ) (b ). Det erm i n i n g t h e s co p e o f

p ro v ab l e d am ag es u n d er each l eg al t h eo ry i s b ey o nd t h e s co pe o f t hi s o p i n i o n

.

1 8 Th e Ru s s el l Defen d an t s d efen d ed t he b reach of co n t ract cl ai m o n t h e g ro u n d

t h at t h e Seal s Ag reem en t st at ed t h at t h e d efen d an t s “ s h al l h av e no l i ab i l i t y t o [Seal s ]

fo r an y p ay m en t s m ad e b y t h em i n go o d fai t h p u rs uan t to t h i s ag reem en t

, o r p u rs u an t

t o t h e [Ru s sel l A g reem en t ] .” O n i t s face, th i s d o es n o t av o id l i ab i l i t y fo r p ay m en t s n ot

m ad e, o r n o t m ad e i n g o o d fai t h

. Acco rd i n g ly

, th e fact t h at t h e Ru s sel l Defe n d a n t s

l at er p ai d o v erd u e am o u n t s to Seal s i n 2 0 1 4 d o es n o t o b v i at e t h ei r l i ab il i t y

, if an y

, fo r

fai l u re t o p ay

o t her am o u nt s d u e u p o n p ro p er p ro o f b y Seal s

.

13In t h i s s i t uat i o n

,

t h e ci rcu m s t an ces o f in d i v i d u al ap p eal s m u s t g u i d e t h e ap p el lat e co u rt s

as t o h ow b es t t o p ro ceed

. In m an y cas es o n r e v i e w o f s u m m ary

ju d g m en t , t here w i ll b e few g ro u n d s ad v an ced fo r s u m m ary ju d g m en t

,

wi t h n o di s pu t es p ert i n en t t o t h e fact s s u pp o rt in g t h o s e g ro u n d s

. In s u ch

cas es

, t h e m o re effi ci en t co urs e wo ul d b e fo r t h e ap p el lat e co u rt t o

fo l l o w th e “ ri g h t fo r an y reas o n ” ru l e an d co n s id e r g r o u n d s n o t

ad d res s ed b y t h e t ri al co u rt

, i f it fi n d s th at t h e t ri al co u rt ’ s l eg al an al y s i s

i s fl awed

.

In o t h er cas es

, t h ere m ay b e a v ari et y o f g ro un d s ad van ced

, w i t h

d i s p u t es p ert i n en t t o th os e g ro u n ds

. In s uch cas es

, ju d i ci al eco n om y m ay

b e m ax i m i zed b y ret u rn in g t h e cas e t o t h e t ri al co u rt up o n th e ap p el l at e

co u rt ’ s d i s co v ery t hat th e t ri al co urt rel i ed on an erro n eo us l eg al t h eo ry

o r reas o ni n g

. Th is wo u l d al l o w t h e t ri al co u rt t o i s s u e ru l i n g s o n g ro un d s

ad v an ced

, wh i ch co u l d t h en s erv e as a b as i s fo r ap pel l at e rev i ew. 1 9

Bas ed o n o u r h ol d i n g s ab o v e, t h e rem ai ni n g i s s ues rai s ed i n t h e cas e, t h e

co m p l e x i t y o f t h e t im i ng an d n at u re of p o t en t ial d am ag es s o u g h t b y Seal s

, 2 0 an d in

1 9 (Fo o t n o t e o m i t ted .) Ci t

y o f Ga in es vi l l e v. Do d

d

, 2 7 5 Ga. 8 3 4

, 8 3 8 -8 3 9 (5 7 3

SE2 d 3 6 9) (2 0 0 2).

2 0 Fo r ex am

p le, Seal s as s ert s t h at h e w o u l d b e en t i t l ed t o cert ai n d am ag es b as ed

o n t h e rel at ed -p art y s al e o f Bed fo rd To wers t o M ag g i e Cap i t o l i n 2 0 1 8

, wh i ch h e was

n o t i n fo rm ed o f u n t i l 2 0 1 9

.

14l i gh t o f t h e fact t h at t h e t ri al c o u r t h a s n o t ad d res s ed t h e defen d an t s ’ s t at u t e o f

l i m i tat i on arg u m en t , we d ecl i n e t o ad d res s i t at t h i s t i m e.

Ju d g men t r ever

s ed

. Rees e, J., a n d S

en i o r A pp el l a t e Ju d

g e Her ber t E. Ph i

pp s

co n cu r

.

15