SECOND DI VI SI ON

M I LLER, P. J.

, A NDREWS 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.

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

June 27, 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 64 9

. THE TURFGRASS GROUP, I N C

. v. G E O R G I A COLD

STORAGE CO.

B R O W N , J u d g e.

Th e Tu rfg ras s Gro u p

, In c. ap p eal s fro m t h e t ri al co u rt ’ s o rd er g ran t i n g

s u m m ary ju d g m en t i n fav o r o f Geo rg i a Co l d St o rag e Co

., as wel l as t h e t ri al co urt ’ s

earl ier o rd er d en y i n g p art ial s u m m ary ju dg m en t i n i t s fav o r o n t h e ap pl i cab i l i t y o f

t h es e s am e co n t ract t erm s

. Tu rfg ras s as s ert s t h at t he t ri al co u rt erred b y co n cl u d i n g

t h at i t i s b o u n d b y

t h e co n t ract u al t erm s an d co n d i t i o n s l i s t ed o n t h e rev ers e s i d e o f

Co l d St o rag e’ s wareh o u se recei p t s

. Fo r t h e reas on s ex pl ai n ed b el o w, w e rev ers e t h e

t ri al co u rt ’ s g ran t o f s u m m ary j u d g m e n t t o Co l d St orag e an d affi rm i t s d en i al o f

Tu rfg ras s ’ s m ot io n fo r p art i al s u m m ary ju d gm en t.“ O n ap p eal

, w e rev i ew t h e g ran t o r d en i al of s u m m ary ju d g m en t d e n o v o,

co n st ru i n g t h e ev i den ce an d al l i n feren ces in a l i gh t m o s t fav o rab l e t o t h e n o n m o v i n g

p art y .” (Ci t at io n an d p u n ct u at i o n o m i t t ed .) S eki v. Gr o u

p o n

, In c.

, 3 3 3 Ga. A p p

. 3 1 9

(7 7 5 SE2 d 7 7 6) (2 0 1 5 ). So v i ewed

, t h e reco rd s h o ws t hat b eg i n n i n g i n J u n e 2 0 0 6,

Tu rfg ras s beg an s t o ri n g i t s ex ces s s eed i n a t em p erat u re-co n t ro l l e d C o l d St o rag e

wareh o us e. It s u b s eq u en t ly s t o red ad d i t i o n al s eed i n J u n e 2 0 0 7

, J u l y 20 0 8

, Au g u s t

2 0 0 8

, an d J u n e 2 0 09

. Th e p art i es d i d no t en t er i n t o a w r i t ten an d s i g n ed s t o rag e

ag reem en t

.

In J u n e 2 01 0

, Tu rfg ras s d i s co v ered t h at s o m e o f i t s s t o red s eed was d am ag ed

b y ro d en t s an d wat er. It n ot i fi ed Co l d St o rag e ab o u t t h e p ro b l em b y t el ep h o ne.

Tu rfg ras s d i d n o t t ak e an y “ s eri o u s act iv i ty ” in co nn ect i o n wi t h th e l o s s “ fo r s o m e

p eri o d o f t i m e” b ecau s e on e of i t s p ri nci p al s as s um ed “ a v ery l eg i t im at e l on g -t erm b ig

co m p an y ” l i k e Co l d St o rag e wo u l d “ t ak e care o f i t ” an d m ak e i t “ ri g h t .”

Aft er Co l d St orag e w as u n res p o n si v e t o Tu rfg ras s ’ s at t em p ts t o res o l v e i t s

co m p l ai n t

, Tu rfg ras s s en t an in v o i ce i n t h e am o u n t o f $ 9,6 25 t o Co l d St o rag e fo r t h e

d am ag ed s eed o n Decem b er 2 9

, 2 0 1 0

. O n J a n u ary 4

, 2 01 1

, Co l d St o rag e s en t

Tu rfg ras s a ch eck fo r $2 7 5 b as ed u p o n a s ti p u lat ed d am ag e am o u n t of $

. 5 0 p er p o u n d

2fo r d am ag ed p ro d u ct co n tai n ed i n t h e “ Co n t ract Term s an d Co n d i ti o n s” p ri n t ed o n

t h e r ever s e s i d e o f i t s wareh o u s e recei p t. Th i s fo rm s t at es :

SECTION 1 0 - NOTICE OF CLAIM AND FILING OF SUIT

(a) COM PANY s h al l n o t b e l i ab l e fo r an y cl ai m o f an y t y pe wh at s oev er

fo r l o s s an d / or des tru ct i o n of an d/ o r d am ag e t o GOODS u n l es s s u ch

cl ai m i s p res en t ed

, in wri t i n g

, w i t hi n a reas o n ab l e t i m e, n o t ex ceed i n g

6 0 d ay s aft er STORER l earn s o r, i n t h e ex erci s e of reas o n a b l e care,

s h o u l d h av e l earn ed o f s u ch l o s s , d es tru ct i o n an d / o r d am ag e.

(b ) As a co nd i t i o n p reced en t t o m ak in g an y cl ai m an d / o r fi l i n g an y s u i t

, S TORER s h al l p ro v i d e COM PANY w it h a reas o n ab le o p p o rt u n i t y t o

i n s p ect t h e GOODS wh ich are t h e b as i s o f STORER’ S cl ai m

. (c) NO LAW SUIT OR OTHER ACTION M AY BE M A INTAINED BY

STORER OR OTHERS AGAINST COM PANY W ITH RESPECT TO

THE GOODS UNLESS A TIM ELY W RI TTEN CLAIM H AS BEEN

M ADE AS PROVIDED IN PARAGRAPH (a) OF T HIS SECTION

AND UNLESS STORER HAS PRO V IDED W AREHOUSEM AN

W I T H A R E A S O N A B L E O P P O R TUN I T Y T O I N S P E C T T H E G O O D S

A S P ROVIDED IN PARAGRAPH (b ) OF THIS SECTION AND

UNLESS SUCH LAW SUIT OR OTHER ACTION IS COM M ENCED

W ITHIN NINE (9 ) M ONTHS AFTER STORER L EARNS OR, IN THE

E X E R C I [ S ] E O F REASONABLE C A R E

, S H O U L D H A V E L E A R N E D

OF THE LOSS A

N D / O R D E S T R

U C TION OF A

ND/ OR D AM A GE TO

THE GOODS.

A p ri n ci p al o f Tu rfg ras s ad m i t ted recei v i n g t h e J an uary 4, 2 0 1 1 l e t t er,

i n cl u d i n g t h e ch eck an d t h e at t ach ed “ co n t ract term s an d co n d i t i o n s .” He s t at ed t h at

t h i s was t h e fi rs t t i m e h e l earn ed o f s u ch “ t erm s a n d co n d i t i o n s ” an d d en i ed t h at

Tu rfg ras s “ ev er en t er[ed ] i n t o a co n t ract b as ed o n term s an d co nd i t i o n s i n t h i s

d o cu m en t t h at o u r seed wo u ld n o t b e p ro t ect ed i n co l d s to rag e.” He t es t i fi ed t h at h e

3h ad “ a li t t l e b i t o f a react i o n to i t wh en [h e] s aw i t” an d des cri b ed th e $ 2 7 5 ch eck as

a “ d i s g u s t i ng ly s m al l ” res p o n s e t o t h ei r cl ai m fo r d am ag es

. Tu rfg ras s d i d n o t cas h t h e

ch eck

. Co l d St o rag e’ s o ffi ce m an ag er, W an d a Hi n g l e, av erred i n an affi d av i t t h a t

Tu rfg ras s “ ack n owl ed g ed recei p t o f, an d res p o n d ed t o” the Ja n u ary 4

, 2 0 1 1 l et t er. Sh e

d i d no t ex p l ai n t he n at u re o f Tu rfg ras s ’ s res p o n s e t o th e l et ter, an d t h e reco rd co n t ai n s

n o fu rt h er i n fo rm at i o n ab o u t i t

.

In J an u ary o r Feb ru ary 2 0 1 1

, Co l d St o rag e b eg an h av i n g rep e at ed co o l i n g

i s su es in a p o rt i on o f it s wareh o u s e wh ere Tu rfg ras s ’ s s eed was s t o red

. In M ay 2 0 1 1,

Tu rfg ras s ’ s farm m an ag er wen t t o Co l d St o rag e t o ret ri ev e s eed fo r a cu s to m er an d

d i s co v ered t h at s eed b a g s h ad b een d am ag ed b y wat er an d ro d en ts

. He reg i s t ered

an o th er co m

p lai n t at Co ld St o rag e’ s o ffi ce, t el l i n g th em “ th i s was t o t al l y

u n accep t a b l e ” a n d t h at Tu rfg ras s wo u l d n eed h el p to so rt th e s eed an d reb ag i t

. A

Co l d St o rag e s u p erv i so r “ cam e i n an d l o o k ed at ” t h e d am ag ed s eed

. Bas ed u p o n t h i s

s eco n d i nci d en t o f d am ag ed s eed

, Tu rfg ras s i n s p ect ed m o re o f it s s t o red s eed an d

fo u n d th at s o m e of it was “ ju s t i n t erri b l e s h ap e.” On M ay 19

, 2 0 1 1

, T u rfg ras s

rem o v ed al l o f i t s s eed fro m Co l d St o rag e’ s wareh o u se.

On J u l y 5

, 2 0 13

, T u rfg ras s fi l ed a co m p l ai n t ag ai ns t Co l d St o rag e, as s ert i n g

t h at Co l d St o rag e had i m pro p e r l y s t o red i t s s eed

, res u l ti n g i n dam ag es “ i n t h e

4p ri n ci p al am ou n t o f $4 92 ,9 02 .” In i t s an swer, Co l d St orag e as s ert ed t h at Tu rfg ras s ’ s

cl ai m s w ere b arred b as ed u p o n i t s fai l u re t o co m p l y wi t h t h e co n t ract u al p eri o d o f

l i m i tat i on an d co n d i t io n s p reced en t l is t ed o n t h e b ack p ag e o f i t s wareh o u se recei pt

fo rm

.

W i t h reg ard t o Tu rfg ras s’ s n o t i ce o f o r as s en t t o t h e t erm s an d co n d i t i on s o f t h e

wareh o us e recei p ts

, t h e reco rd s h o ws t hat i t s farm m an ag er an d p ri n ci p al t es ti fi ed t h at

t h ey n ev er s aw or recei v ed t h e wareh o u s e recei pt s an d t h a t a s earch o f Tu rfg ras s

reco rd s d i d n o t rev eal an y wareh o u s e recei p t s

. T h ey cl ai m th at Tu rfg ras s d i d n o t l earn

o f t he pu rp o rt ed ex i s t en ce o f t h e w a r e h o u se recei pt s u n t i l aft er t h ey recei v ed t h e

J an u ary 4

, 2 0 1 1 let ter fro m Co l d St o rag e. At t h a t po i n t in ti m e, t h e l as t d ep o s i t o f

s t ored s eed h ad t ak en p l ace o n e an d a h al f y ears earl i er.

Acco rd i ng to an i n v o i ci n g cl erk em p l o y ed b y Co l d St o rag e, Do n n a W h i t m an

,

C o l d St o rag e’ s n orm al b u s i n es s p ract i ce was t o co m p l et e a wareh o u s e recei p t an d

m ai l i t t o t h e cu s t om er ei t h er t he s am e “ d ay t h a t s h i p m en t s are recei v ed o r t h e n ex t

b u s i n es s d ay .” W h i t m an tes t ifi ed i n h er d ep o s i t i o n th at recei v i n g cl erk s were

res p o n s i b l e fo r p rep ari n g t h e wareh o u s e recei p t s an d m ai l i n g t hem b y o rd in ary m ai l

t o t h e c u s t o m er. Co l d St o rag e p res en t ed n o ev i d en ce fro m t h e p art i cu l ar recei v i n g

cl erk wh o p rep ared t h e wareh o us e recei p t s p u rp o rt ed l y m ai l ed t o Tu rfg ras s b et ween

52 0 0 6 an d 2 0 0 9. W h i t m an co u l d n o t i d en t ify wh o s en t t h e wareh o u s e recei p ts to

Tu rfg ras s i n 2 0 0 6

, an d id en t i fi ed s i x di fferen t peo p l e wh o act ed as t h e recei v i n g cl erk

h an dl i n g wareh o u s e recei pt s fo r Co l d St o rag e b et ween 2 0 0 6 an d 2 0 1 4.

W h i t m an al s o av erred t h e fo l lo wi n g i n h er affi d av i t :

S i n c e b efo re 2 0 0 6 an d aft er 2 0 0 9

, 1 Geo rg i a Co l d St orag e’ s b u s in es s

p ract i ce wi th reg ard t o wareh o us e recei p t s has b een as fo l l ows

. W hen a

s h i p m en t i s recei v ed b y G e or gia C old S tor a ge

, in fo rm at i o n reg ard in g th e

s h i p m en t i s en t ered b y a cl erk i n t o Geo rg i a Co l d St o rag e ’s c o m p u t er

s y s t em

, w h ich gen erat e s a wareh o us e recei p t

. Th e wareh o u s e recei p t

wo u ld th en b e pri nt ed i n d u p l i cat e o n sp eci al p ap er, wh i ch h as t h e t erm s

an d co n d i ti on s o f s t o rag e p re-p ri n t ed o n t he rev ers e s i d e o f t h e p ap er. In

2 0 0 6

, Geo rg i a Co l d St o rag e u s ed Ok i d at a d ot m at ri x p ri n t ers t hat

p ri n ted wareh ou s e recei p t s o n carb on -t y p e p ap er, s i m

u l t an eo us l y

creat i n g t wo co p i es of wareh o u s e recei p t s

, wi t h t h e t erm s an d co n di t i o n s

o n t h e b ack o f th e fi rs t p a g e

. At s o m e po i n t aft er t h at

, G eo rg i a Co l d

St o rag e t ran s i t i o n ed to l as er p ri n t ers

, wh i ch wo u l d p ri n t t wo co p i es o f

each wareh o us e recei p t

, wi t h t h e t erm s an d c o n d i t i o ns o n t h e b ack o f

each p a g e

. A ft er t h e wareh o u s e recei p ts were p ri n ted

, o ne co py o f th e

w a reh o u s e recei p t wo u l d b e s i g n ed an d m ai l ed t o t he cu s t o m e r v i a

1 Tu rfg ras s as s ert s t h at t h i s l an g u ag e m an d at es a co n cl us i o n t h at th ere i s “ a g ap

o f an y p ro o f o f wh at was th e pro ced u re b et ween J an u ary 1

, 2 0 0 6, an d Decem b er 3 1,

2 0 0 9

, – t h e v ery p eri o d d uri n g w h i ch Tu rfg ras s s h i p p ed p ro d u ct t o [Co l d St o rag e] ’ s

wareh o us e.” W e di sag ree. An ex am i n at i o n o f al l o f t he l an g uag e i n t h e p arag rap h

, as

wel l as W h it m an ’ s d ep os i ti o n t es t i m o n y

, s h o ws t h a t C old S tor ag e su b m it t ed ev i d en ce

o f i t s g en eral p ract i ces fro m p re-2 0 0 6 t h ro ug h 2 0 09

.

6reg u lar fi rs t cl as s m ai l to t h e cu s t o m er’ s b i l li n g ad d res s

. T h e o t h er co p y

wo u ld b e k ep t fo r fi l i n g b y Geo rg i a Co l d St orag e.

Co p ies o f t h e wareh o u s e recei p t s Co l d St o rag e cl ai m s i t m ai led t o Tu rfg ras s

are at t ach ed t o W hi t m an ’ s affi dav i t

. Th e w a r e h o u s e recei p t s fo r d el i v eri es m ad e in

J u n e 2 0 0 6 an d Ju n e 2 0 0 7 co n t ai n t h e fo ll o wi n g s tat em en t at t h e b o t to m o f t h e fi rs t

p ag e: “ Th e g o o ds are s t o red s u b ject t o al l t h e ter m s a n d co n d i t i o n s s tat ed i n t h e

r e v e r s e h ereo f. Sai d t erm s an d co nd i t i o ns co n st i tu t e a co n t ract t o wh i ch cu s t o m er

ag rees b y t h e accep t an ce o f t h i s W areh o u s e Recei p t .” Im m ed i at el y u n d ern eat h t h e

s t at em en t are the w ord s “ GEORGIA COLD STORAGE CO.” i n b o l d

, an d un d ern eat h

t h es e wo rd s t he fo l l o wi n g s i gn at u re l i n e ap p ears : “ By :

_ _ _ _ _ __ _ _ _ .” Th e s i g n at u re

l i ne o n t h es e wareh o u s e recei p t s i s bl an k

. Bas ed u po n t h e am ou n t o f s p aci n g b et ween

t h e wo rd s Geo rg i a Co ld St o rag e Co

. an d t he s i g n at u re l in e, as w el l as t h e co n t en t o f

t h e l an g u ag e ap p eari n g im m ed i at el y ab o v e t h e wo rd s Geo rg i a Co l d S t o r a ge Co

., i t

i s un cl ear wh et h er t h e d o cu m en t cal l ed fo r th e b ai l o r o r t h e b ai l ee t o s i g n i n t h e s pace

p ro v id ed

.

W areh o u s e recei p t s fo r d el i v eri es m ad e i n J u l y 2 00 8

, Au g u s t 2 0 0 8 , an d J u n e

2 0 0 9 h av e n o s i g n at u re l in e o n t h e fro n t p ag e. Very s m al l p ri n t ap p ears at t h e b o tt o m

o f th e f r o n t p ag e o f t h e wareh o u s e recei p t wh i ch s tat es : “ Term s : ” fo l l o wed b y a l arg e

7am ou n t o f s p ace t o t h e ri g h t o f t h e wo rd

. In t h e cen ter o f t h e p ag e o n t h e s am e l i ne,

t h e fo rm t h en s t a t e s i n t h e s am e s m al l p ri n t : “ Th i s co n t ract co n t ai n s a l i m i t at i o n o f

l i ab i l i t y

, ” fo ll o wed b y ap p r o x i m at el y fi ve b l an k s p aces b efo re t h e wo rd s “ Refer to

t e r m s a n d c o n d i t i o n s o n fi le o r at t ach ed

. ” Th es e wo rd s were s et i n a m u ch s m al l er

fo n t t h an t he res t o f t he d ocu m en t an d were n o t i n b ol d

.

Co l d St o rag e as s ert s t h at Tu rfg ras s recei v ed ad d i t i o n a l n o t i ce o f t h es e t erm s

an d co n d i t i o ns i n Ju n e 2 00 9

. Hi n g l e av erred t h at o n J u n e 1 2

, 2 0 09

, s h e m ai l ed a l et t er

t o al l o f Co l d St orag e’ s cu s to m ers

, i ncl u d i n g Tu rfg ras s

, rem i n d i n g t h em o f t h e t erm s

an d co n d i t i o n s o f t h e wareh o u se recei p ts

. Sh e as s ert s t h at s h e m i s t a k en l y d at ed t h e

p ri n t ed l et t er fo r J u n e 12

, 2 00 2

, i n s tead o f J u n e 1 2

, 2 0 09

, an d t hat n o si m i l ar l et t er

was m ai l ed o n J u n e 1 2

, 2 0 0 2

. Hi n g l e h an d wro t e t h e dat e 2 00 9 b es i de t h e t y pewri t t en

d at e on th e l et t er at tach ed t o h er affi dav i t

. Tu rfg ras s d en i es recei v i n g t h i s l et t er, an d

as s ert ed i n i t s d i s co v ery res p on s es t h at t hi s l et t er was fab ri cat ed b y Co l d St o rag e.

Tu rfg ras s m o v ed fo r part i al s u m m ary ju d g m en t i n i t s fav o r o n t h e ap p l i cab i l i t y

o f Co l d St o rag e’ s co n t ract ual d efen s es d eri v ed fro m t h e p rep ri n ted term s o n t h e

rev ers e si d e o f i t s wareh ou s e recei pt s

. Th e t ri al co u rt d en i ed t h e m o t i o n b as ed u p o n

i t s co n cl u s i o n t hat i s s u es o f f a c t ex i s t ed wi t h reg ard to Tu rfg ras s’ s recei p t o f t h e

wareh o us e recei p ts

. Fi v e m o n th s l at er, Co l d St o rag e m o ved fo r s um m ary ju d g m en t

8i n i t s fav o r b as ed u p o n t h e s am e l an g u ag e an d ad d it i o n a l d i s co v ery m at eri al s fi l ed

wi t h t h e t ri a l co u rt

. Bas ed u p o n a Un i fo rm Co m m erci al Co d e pro v i si o n reg ard i n g

wareh o us e recei p t s , OCGA § 1 1 -7 -2 0 1 , t h e t ri al co u rt co n cl u d ed as a m at t er o f l aw

t h at Tu rfg ras s d i d n o t n eed t o recei v e t he wareh o u s e recei p t i n o rd er fo r it s t erm s to

b e en fo rceab l e. In it s v iew, ev i den ce t h at Co l d S t o rag e ro u t i n el y m ai l ed t h e

wareh o us e recei p t s d em o n st rat ed t h at t h ey were “ i s su ed ” wi t h i n t h e m ean i n g o f

OCGA § 1 1 -7 -2 0 1 an d t h e l i s t ed co n di t i o n s o n t h e rev ers e si d e w e r e t h e r e fo re

b i n d i n g ag ai n s t Tu rfg ras s as a m at t er o f l aw. Bas ed u p o n t h i s fi n di n g, t h e tri al co u rt

co n cl u d ed t h at Tu rfg ras s’ s co m p l a i n t w a s b arred b y i t s fai lu re “ t o p ro vi d e wri t t en

n o t i ce o f i t s cl ai m w i t hi n si x ty d a ys a nd i n s ti t ut e leg al act i o n wi t h i n n i n et y d ay s o f

d i s co v ery o f d am ag es t o i t s p ro d u ct . . .” 2

In o u r vi ew, t h e t ri al co urt erred in i t s l eg al an al y s i s b y fo cu s i n g s o l el y u p o n

wh et h er t h e w areh o u s e recei p t s were “ i s s ued ” u n d er Art i cl e 7 o f G eo rg i a’ s

Co m m erci al Co d e. O CGA § 1 1 -7 -1 0 1 s t at es t h at Art i cl e 7 “ sh al l b e k n o w n an d m ay

2 Th e tri al co u rt d i d n o t an al y ze wh et h er th es e p ro vi s i o n s reg ard i n g “ t h e t i m e

an d m an n er o f pres en t i n g c l a i m s an d i n s t i t u t i n g act i o n s b as ed o n b ai l m en t ” were

reas on ab l e. OCGA § 1 1-7 -2 0 4 (c). See Met r op o li t an Li fe In s

. Co

. v. Ca u d l e

, 1 2 2 Ga.

6 0 8

, 6 09 (5 0 SE 3 3 7 ) (1 9 0 5 ) (“ [a] p art y m ay co n t ract t h at t h e t i m e fo r b ri n g i n g an

act i on s hal l be l im i t ed

, an d i f s u ch ti m e i s r e a s o nab l e, h e wi l l be b o u nd b y h i s

co n tract

. ”).

9b e ci t ed as [t h e] “ U n ifo rm Co m m erci al Co d e

– D o cu m en t s o f T i t l e.” Ou r Co d e

d efi n es a “ [d ] o cu m en t o f t i t l e” t o i n cl u d e a

wareh o u s e rece ip t

. . . an d an y o t h er d ocu m en t wh i ch i n t h e reg u l ar

co u rs e o f b us i nes s o r fi n an ci n g i s treat ed as ad eq u at el y ev id en ci n g t hat

t h e p ers o n i n p o s s es s i o n o f it i s en t i tl ed t o recei v e, ho l d

, an d d i s p o s e o f

t h e d o cu m en t an d th e g o o d s i t co v ers

. T o be a d ocu m en t o f t i t l e, a

d o cu m en t m

u st p u rp o rt t o b e i s s u ed b y or ad d res s ed t o a b ai l ee an d

p u rp o rt t o co ver g o od s i n t h e b ai l ee’ s p o s s es s i o n w h i ch are ei t h er

i d en ti fi ed o r are fu n g i b l e p o rt i o n s o f an i den ti fi ed m as s

.

OCGA § 1 1 -1 -2 0 1 (b ) (1 6). A cco rd i n g l y

, an i s s ued wareh o u s e recei p t i s m e rel y a

d o cu m en t o f t i t l e t hat u n der ce r ta in spe c if

i e d c i rcu m s t an ces can b eco m e “ n eg o t i ab l e.”

OCGA § 1 1 -7 -1 0 4 (a). In t h e ab s en ce o f t hes e ci rcu m s t an ces

, t h e wareh o u se recei pt

i s “ n o n n eg o t i ab l e.” OCGA § 1 1 -7 -1 0 4 (b ). Art i cl e 7 al so p ro v i d es t h at an y

“ wareh o us e,” d efi n ed as “ a p ers o n en g ag ed i n t h e bu s in es s o f s t o ri ng g o o d s fo r h i re,”

OCGA § 1 1-7 -1 02 (a) (1 3 ), m ay i s s ue a wareh o u s e recei p t

. OCGA § 11 -7 -2 0 1 (a). It

p ro v id es fo r “ a l i en ag ai n s t th e b ai l o r o n t h e go o d s co v ered b y a wareh o u se recei p t ,”

OCGA § 1 1 -7 -2 0 9 (a), an d t h e m et h o d s a wareh o us e m ay us e t o en fo rce t h e l i en

.

OC G A § 1 1 -7 -2 1 0

. Fi n al l y

, i t p ro v i d es a ci rcu m s t an ce u n d er wh i ch ti t l e u n d er a

wareh o us e recei p t m ay

b e d efeat ed . OCGA § 1 1 -7 -2 0 5

.

10Si g n i fi can t l y

, it d efi n es a “ [b ] ai l ee” as t he “ p ers o n t hat by a wareh o u s e recei p t

,

b i l l o f l ad in g

, o r o t h er d ocu m en t o f t i t l e ack no wl ed g es p os s es si o n o f g o o d s a n d

co n tract s t o d el i v er th em .” OC G A § 1 1 -7 -1 0 2 (a) (1 ). Art i cl e 7 s t at es t h at a

wareh o us e recei p t “ m ay ” i n cl ud e “ [r] eas o n ab le p ro v i s io n s as t o t h e t i m e an d m an n er

o f p res en t i n g cl ai m s an d co m m en ci n g act io n s b as ed o n t h e b ai l m en t ,” O CGA § 1 1 -7

-

2 0 4 (c), an d “ a t erm

. . . l i m i t i n g t h e am o u nt o f l i ab i l i t y i n cas e o f l o s s o r dam ag e, an d

s et t i n g fo rt h a s p e c i fi c l i ab il i t y i n cas e o f lo s s o r d am ag e.” O CGA § 1 1 -7 -2 0 4 (b ).

No t hi n g i n Art i cl e 7 ch an ges o rd i n ary co n t ract l aw reg ard i n g as s en t t o t h e t erm s o f

a co n t ract

. In d eed

, OCGA § 1 1 -1 -1 0 3 ex p res s l y p ro v i d es t hat “ u n l es s ‘ d i s p l aced ’ by

a p art i cu l ar p ro v is i o n o f t h e UCC, o t h er l aw s u p p l em en t s t he l aw o f t h e U C C

. ”

Gwi nn e t t C o mmu n i t

y B a n k v. Ar l i n g t on Ca

p i t al

, 3 2 6 Ga. A p p

. 7 1 0

, 7 17 (2 ) (a) (i )

(7 5 7 SE 2 d 2 3 9 ) ( 2 0 1 4 ). See al s o Ga

. Po r t s Au t h

. v. S

er va c In t l

. , 2 0 2 Ga. Ap p

. 7 7 7

( 4 1 5 SE2 d 5 1 6 ) (1 9 9 2 ) (reco g ni zi n g t h at Gen eral A s s em b ly ’ s en act m en t o f Art i cl e

7 o f t h e U n i fo rm Co m

m erci al Co d e “ d i d n o t rep eal o r affect Geo rg i a bai l m en t l aw”).

In Bi r mi n g h am Tel evi s i o n Co r p

. v. W a t er W or ks

, 2 9 0 S2 d 6 3 6 (1 9 7 4 ), t h e

Al ab am a Su p rem e Co u rt ad d res sed wh e th er a bai l o r l i k e Tu rfg ras s accep t ed

“ co n d i t io n s o f b ai lm en t s et fo rt h o n t h e rev ers e si d e o f t h e wareh o u se recei p t .” Id

. at

6 4 0

. It co n cl u d ed t h at su ch t erm s an d co nd i t i o ns co u l d b eco m e effect i v e o nl y i f t h e

11b ai l o r co u ld b e ch arg ed wi t h act u al or co n s t ru ct i v e no t i ce o f s u ch term s an d

co n di t i o n s

. Id

. at 6 4 2

. Bas ed u po n i s su es of fact reg ard in g s u ch n o ti ce, i t rev ers ed t h e

t ri al co u rt ’ s g ran t o f su m m ary ju d g m en t t o th e bai l ee b eca u se i t co u l d n o t “ s ay t h at

as a m at t er o f law [t h e b ai l o r] accep t ed t he t erm s an d co n d i t i o n s o n t he rev ers e s i d e

o f t h e w areh ou s e recei p t as p art o f t h e co n t ract of b ai l m en t.” Id

. In a cas e i nv o l v i n g

Art i cl e 7 o f t h e UCC, th e Ari zo n a Co u rt o f Ap p eal s al so co n cl u d ed t h at as s en t t o a

l i m i tat i on of l i ab i li t y i n a wareh o us e recei pt i s req ui red fo r th e l i m i t at i o n to b eco m e

a p art o f t h e b ai l m en t co n t ract

. Ler n er v. Br et ts ch n ei d

er , 5 9 8 P2 d 5 15 , 5 18 (1 9 7 9 ).

Th e Geo rg i a G en eral A s s em b l y h as defi n e d a “ b ai l m en t ” as “ a d el i v ery o f

g o o d s o r p ro p ert y u

p o n a co n t r a ct

, exp r es s o r i mp l ied

, t o carry o u t t h e ex ecu t i o n o f

a s p eci al o b

ject b en efi ci al ei th er t o t h e bai l o r o r t h e b ai l ee o r bo t h an d t o d is p o s e o f

t h e pr o pe r ty i n co n fo rm i t y wi t h t h e p u rp os e o f th e tru s t.” (Em p h as i s s u p p l i ed .) OCGA

§ 4 4-1 2 -4 0

. An es s en t i al el em en t fo r a v al id co n t ract i s “ t h e as s en t o f t h e p art i es to

t h e t erm s o f t h e co n t ract .” OCGA § 1 3 -3 -1

. “ An i m p li ed co n t ract o nl y d i ffers fro m

an ex pres s co nt ract i n t h e m o d e o f p ro of; b o t h eq u al l y p ro ceed u p o n t h e m u t u al

ag reem en t o f th e p art i es

, an d can n o t ex i st wi t h o ut i t

. ” (Ci t at i o n an d pu n ct u at i o n

o m it t ed .) Gr a n g e Mu t

. Ca s

. Co

. v. W o o d a rd

, 30 0 Ga. 8 4 8

, 8 5 3 (2 ) (a) (7 9 7 SE2 d 8 1 4 )

(2 0 1 7). “ E x p res s co n t ract s an d co n t ract s i m p l ied i n fact d ep en d u p on t h e wi l l o f t h e

12p art i es t o b e b ou n d

, i n d i cat ed i n t h e o n e cas e ex p res s ly i n s o m e fo rm reco g n i zed by

l aw, an d i n t h e o t h er b y ci rcu m s t an c e s f r o m w h i ch as sen t m ay b e in ferred as a

co n cl u s i o n o f fact

. ” Bu t t

s Co u n t y v. Ja cks o n Ba n ki n g Co

. , 1 2 9 Ga. 8 0 1

, 8 0 8 (6 0 SE

1 4 9 ) (1 9 0 8 ).

W h i l e t h ere are n o Geo rg i a cas es ad d res s in g t h e part i cu l ar i s s u e b efo re u s

, i t

i s cl ear t h at o u r l aw of b ai l m en t req u i res as s en t t o l i m i t at i o n s o f l iab i li t y

. Amer i ca n

La u n d r y v. Ha l l

, 2 7 Ga. Ap p

. 7 1 7 (1 0 9 SE 6 76 ) (1 9 21 ) (“ t h e m e r e recei p t b y t h e

cu s t o m er o f t h e m em o ran d u m co n t ai n i n g

. . . p ri n ted n o t i ce d o es n o t am o u n t t o an

ag reem en t an d as sen t t o t h e t erm s o f t h e n o t i ce, an d t h erefo re t h ere ari s es n o s p eci al

co n tract wh ereb y t h e cu st o m er co n s en t s t o an y l i m i t at i o n o f l i ab i l i t y ”). Aft er

co n si d eri n g t h e UCC p ro v is i o n s gove r n ing w a r e house r e cei p t s an d h arm o n izi n g t h em

wi t h G e o r g i a ’ s co n t ract an d b ai l m en t law, we co n cl ud e t hat as s en t i s req u i red fo r

t e r m s a n d co n d i t i o ns i n a wareh o u s e recei p t t o b eco m e effect i v e. See Bi r mi n g h a m

Tel evi s i o n

, s u p ra, 2 9 0 S2 d at 6 4 2 ; Ler n er

, s u p ra, 5 9 8 P2 d at 5 1 8

. Acco rd in g l y

, t h e

t ri al co u rt erred b y c o n c l ud i n g t h at ev i d en ce s ho wi n g th at Co l d St orag e ro u t i n el y

m ai l ed wareh o u s e recei p ts t o i t s cu s t o m ers was s u ffi ci en t t o b i n d Tu rfg ras s t o t h e

13t erm s an d co n di t i o n s o n t h e rev ers e s i d e o f s u ch rec e i p t s as a m at ter o f l aw. 3 Th e

p ro p er an al y s i s i s wh et her g en u i n e i s s u es o f m at eri al fact ex i s t o n th e i s s ue o f as s en t

.

In d et erm i n i n g w h e t h er t h ere was a m u tu al as s en t

, co u rt s ap pl y an

o b ject i v e th eo ry o f in t en t wh ereb y o n e p art y ’ s i nt en t io n is d eem ed t o be

t h at m ean i n g a r e as on ab l e m an i n t h e p o s i t i o n o f t h e o t h er co n t ract i n g

p art y wo u l d as cri b e t o t h e fi rs t p art y ’ s m an ifes t at i o n s o f as s en t

, o r t hat

m ean i n g wh i ch t h e ot h er co n t ract i ng p art y k n ew t h e fi rs t p art y as cri b ed

t o h i s m an i fes t at i o n s o f as s en t

. . . . [T] h e ci rcu m s t an ces s u rro un d i n g th e

m ak i n g o f t h e co n t ract

, s u ch as co rres p o n d e n c e a nd d i s cu s s i o n s

, are

rel ev an t i n d eci d i n g i f t h ere was a m u t u al as s en t t o an ag reem en t

. W h ere

s u ch ex t ri n s i c ev i d en ce ex i s t s an d i s d i s p u t ed , t h e q u es t i o n o f wh et h er

a p art y h as as s en t ed t o t h e co n t ract i s g en eral l y a m at t er fo r t h e ju ry

. . .

3 Th e cas es up o n wh i ch Co l d St o rag e rel i es do n o t req u i re a d i fferen t res u l t as

t h ey ad dres s o n l y wh et h er a wareh ou s e l i en w as creat ed u n d er t h e UCC. See In r e

Cel o tex Co r

p.

, 1 3 4 BR 9 93

, 9 9 7 (M .D. Fl a. 1 9 9 1 ) (h o l d i ng th at creat i o n o f wareh o u s e

l i en d ep en d s u p o n wareh o u s e recei p t

, at a m in i m um

, b ei n g “ m ai l ed o r t ran s m i t t ed to

t h e cu s t o m er/ b ai l o r” an d t h at “ [t ] h e [wareh o u s e] recei p t i s a co n d i t io n p reced en t t o

es t ab l i s h in g a l ien o n th e go od s i n t h e p o s s es s i o n o f t h e wareh o u s e[] ”); In r e

Kn o w a r e, In c.

, 5 7 BR 16 3

, 1 6 5 (D. M as s

. 1 9 8 6 ) (h o l d i n g t h at “ [d ] ep o s i t i n g t h e

wareh o us e recei p t i n t h e U.S. m ai l s i s at t h e v ery l eas t

, req u i red to m eet t h e el em en t

o f i s s u an ce”; fi n d i n g n o v al i d l i en b ecau s e “ s o le ev i d en ce was t h at t h e fo r m w a s

d ep os i t ed i n t h e co m

pan y ’ s b o x fo r o u t go i n g m ai l ”); Gr u n d ey v. Cl a rk Tr a n s

f er Co

. , 2 5 6 SE2 d 7 32

, 7 3 5 (N.C. Ap p

. 1 9 7 9 ) (h o l di n g t h at creat io n o f li en res t ed u p o n

wh et h e r w a r e h o u s e recei p t was p ro perl y i s s u ed

, m ean i n g “ s en [t ] fo rt h” an d m ai l ed

t o t h e p ro p er ad dres s ). Th es e deci s i o n s do n ot ad d res s wh et h er t erm s an d co n d i t i on s

o n a w areh o u s e recei pt are effect i v e ag ai n s t t h e b ai l o r i n t h e ev en t t h at g oo d s s t o red

b y t h e b ai l ee are d am ag ed

.

14. [A] s s e n t m ay be i m p li ed fro m t h e ci rcu m s tan ces

, an d t he co n d u ct o f

t h e p art i es

.

(Ci t at i o n s an d p u n ct u at i o n om it t ed .) Th o m a s v. Ch a n ce

, 3 2 5 Ga. Ap p

. 7 16

, 7 1 8 (7 5 4

SE2 d 6 6 9) (2 0 1 4).

Th e reco rd b efo re u s co n t ai n s n o ev i d en ce s h owi n g t h at Tu rfg ras s ex p res s l y

as s en t ed t o t he t erm s an d co nd i t i o n s o f t h e wareh o u s e recei p t

. W h i le t h ere i s ev i d en ce

s h o wi n g t h at t h e wareh o us e recei pt s wo u l d h a v e b e e n m ai l ed to Tu rfg ras s i n t h e

o rd i n ary co u rs e o f b u s in es s

, n o ev i d en ce was p res en t ed fro m th e p ers o n res p o n s i b l e

fo r act ual l y m ai l i n g t h e wareh o u s e recei p t s d u ri n g t h e r e l ev an t t i m e, an d Tu rfg ras s

d en ies recei v i n g t h em i n t he m ai l

. W h i l e ev i d en ce o f Co l d St o rag e’ s ro u t i n e p ract i ce

m i g h t be ad m i s s i b l e u n d er O CGA § 2 4 -4 -4 0 6, 4 a j u r y m u s t d et erm i n e wh et h er t h i s

ro u t i ne p ract i ce was fo ll o wed wi t h reg ard t o T u rfg ras s

. See Pa ch eco v. Un i t ed S t a t es

,

No

. C1 5 -1 1 7 5 RSL, 20 17 U

. S. Di s t

. LEXIS 2 5 67 6

, at * 8 -1 0 (W .D. W as h. Feb ru ary

2 2

, 2 0 17 ) (h ol di n g t h at g en u i n e i s s u e o f fact ex is t ed wi t h reg ard t o co n s en t fo r fl u

v acci n at i o n b as ed u p o n d efen d an t ’ s h ab i t ev i d en ce; co urt refu s ed t o m ak e i n feren ces

4 T h is Co d e s ect i o n p ro v i d es : “ Ev i d en ce o f

. . . th e ro u t i n e p ract i ce o f an

o rg an i zat i o n

, w h et h er co rro b orat ed o r no t an d reg ard les s o f t h e p r e s en ce o f

ey ewi t n es s es

, i s rel ev an t t o p ro v e t hat t he co n d u ct o f t h e o rg an i zat i o n o n a p art i cu l ar

o ccas i o n was i n co nfo rm i t y wi t h s u ch . . . ro u t i n e p ract i ce.”

15ab o ut s i g n i fi can ce o f m i s si n g co n s en t fo rm an d t h e cred i b i l i t y o f wi t n es s es ); Ho me

In s

. Co

. v. Kr es s er Na t io n wi de Tr uck l o a d S vcs

. , No

. 9 2 C1 0 35

, 1 9 9 4 U. S. Di s t

.

LEXIS 1 6 6 8 9 at * 2 9-3 0 (N.D. Il l

. No vem ber 2 1

, 1 9 9 4 ) (d is t ri ct co u rt refu s ed t o h o ld

t h at ev i den ce o f ro u t i ne p ract i ce m an d at ed s u m m ary ju d g m en t i n fav o r o f p art y

rel y i n g u p o n i t ). Acco rd i n g l y

, g en u i n e i s s u es o f m a t eri al fact ex i s t wi t h reg ard to

Tu rfg ras s ’ s rece i p t o f an d as s en t t o t he t erm s an d co n d i t i o n s o f t h e wareh o u s e

recei p t s t h at Co l d St orag e ro u t i n el y m ai l ed t o i t s cu s t o m ers

. 5

5 O u r o pi ni o n i n Ben ed i ct v. S t a te Fa r m B a n k

, 3 0 9 Ga. A p p

. 13 3 (7 0 9 SE2 d

3 1 4 ) (2 0 1 1 ), d oes no t req ui re a d i fferen t res u l t

. In t h at c a s e

, we ack n o wl ed g ed t h at

“ ev i d en ce o f t h e cu s t om ary b u s i n es s p ract i ces o f an org an i zat i o n i s ad m i ss i b l e p ro o f

t h at th e co n d u ct o f an o rg an i zat i o n o n a part i c u l a r o ccas i o n co n fo rm ed t o t h e

p ract i ce.” Id

. at 1 3 9 (2 ). Th e b an k s u b m i t t ed ev i d en ce s h o wi n g a s t an dard p ract i ce o f

m ai l i n g a cred i t card ag reem en t a n d a n ewl y i s s ued cred it card i n a s i n g l e en v el o pe.

I d. W e affi rm ed t h e tri al co u rt ’ s o rd er co m p el l i n g arb i t rat i o n b ecau se t h e card h olde r ’ s

cl ai m t h at h e h ad n o k n o wl ed g e o f t h e ag r e e m en t was “ co n t rad i ct ed b y h i s o wn

affi d av i t” an d h i s co nd u c t i n a c t i v at i n g an d u s i n g t he card p ro v i d ed pro o f o f h i s

accep t an ce o f th e t erm s i n th e ag reem en t

. I d

. a t 1 4 0 (2 ). In t h i s cas e, n ot h i n g was

m ai l ed i n a s i n g le en v el o p e wi t h t h e wareh o u s e recei p t s t h at

, al on g wi t h Tu rfg ras s ’ s

s u b s eq u en t co n du c t

, c o u l d d em o n s t rat e recei pt

, m u ch l es s accep t an ce o f t h e t erm s

i n cl u d ed o n t he rev ers e s i d e o f t h e wareh ou s e recei p t s

. Deci s i o ns ad d res s i n g can cella tions of insur a nc e polici es u n d er OCGA § 3 3 -2 4

-

4 4 are al s o i n ap p o s it e b ecau s e t h i s Co d e s ect i o n p ro v i d es t h at can cel l at i o n b eco m es

effect i v e wi t h i n a cert ai n p eri o d o f t i m e aft er th e dat e t h e no t i ce o f can cel l at i o n i s

p l aced i n t h e m ai l

. See Bu r n s i d e v. GEICO Gen er a l In s

. Co

. , 3 0 9 Ga. Ap p

. 89 7

, 9 0 0

-

9 0 1 (7 1 4 SE2 d 6 06 ) (2 0 1 1 ); Zi l ka v. S t a t e Fa r m M

u t

. Au t o In s

. Co

. , 2 9 1 Ga. Ap p.

6 6 5 , 6 6 7 (2 ) (6 6 2 SE2 d 7 77 ) (2 0 0 8 ).

16Tu rfg ras s ’ s u n d i s p u ted recei p t of t h e t e r m s an d co n d i t i o n s i n t he wareh o u s e

recei p t s, al on g wi t h a $ 2 7 5 ch eck , i n J an u ary 2 01 1 l ik ewi s e fai ls t o d em o n s t rat e i t s

as s en t

, or l ack t h ereo f, as a m at t er o f l aw. Th e reco rd s h o ws t h at Tu rfg ras s fai l ed to

cas h th e ch eck

, an d res p on d ed t o Co l d St o rag e i n s o m e fas h i o n

. Th e reco rd b efo re u s

,

h o wev er, i s s i l en t a s t o t h e n at u re o f Tu rfg ras s ’ s res p o ns e. W i t ho u t ad d i t i o n al

i n fo rm at i o n ab o ut t he n at u re of t h i s res p o n s e, we can n o t d et erm i n e t h e i s s ue o f as s en t

as a m at t er o f l aw.

Th e m i s d at ed Ju n e 1 2

, 2 0 0 2 l et t er t h at Co l d St o rag e cl ai m s s h o u l d h av e b een

d at ed 2 0 0 9 , an d wh i ch Tu rfg ras s d en ies recei vi n g, al so fai l s t o es tab l i s h as s en t as a

m at t er o f l aw. Ad d it i on al l y

, t he J u n e 1 1

, 20 0 9 w areh ou s e recei p t su p po rt s a fi n d i n g

t h at Tu rfg ras s m ad e i t s l as t d el i v ery o f s eed b ef or e t h e m i s d at ed l e t t e r w a s m ai l ed

.

Co m p are S u n Va l l ey v. S

o ut h l a n d Bo n d

ed W a r eh o u s e

, 17 1 Ga. Ap p

. 23 3 (3 1 9 SE2 d

9 1 ) (1 9 8 4 ) (n o t in g t h at b ai l o r d i d “ n o t co n t ro vert t h at i t s act i o n s i n t en d eri ng t o an d

d ep os i t i n g g o o d s wi t h [b ai l ee]

. . . co n s t i t u ted accep t an ce” o f t he t erm s o f a wri t t en

s t orag e ag reem en t ev en t h o u gh i t was n o t s i g n ed b y b ai l o r).

Bas ed u p o n o u r co n cl us i o n t h at is su es o f fact ex i s t wi th reg ard t o Tu rfg ras s ’ s

as s en t t o t h e t erm s an d co n d i t i o n s i n t h e wareh o u se recei p t

, we rev ers e t h e t ri al

17co u rt ’ s g ran t o f s u m m ary ju dg m en t to Co l d St orag e an d af f i rm i t s d en i al o f

Tu rfg ras s ’ s p art ial m o t i on fo r s u m m ary ju d gm en t.

Ju d g men t a f f i r m ed i n p a r t a n d r ever

s ed i n p a r t

. Mi l l er

, P. J., an d An d

r ews

, J.,

co n cu r

.

18