SECOND DI VI SI ON

M I LLER, P. J.

, HODGES and PI PKI N, JJ.

N O T IC E : M otions for r e c ons i de r a tion m us t be

ph y sic a l ly r e ce iv ed i n our c le r k ’s offic e w ithin te n

da y s of the da te of de c is ion to be de e m ed tim e ly file d.

https ://w w w

. ga a ppe a ls .us /r ule s

Febr uar y 14, 2022



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A2 1 A1 50 3

. PRICE & CO. v

. M AJ ORS M ANAGEM EN T

, LLC et

al

.

H O D G E S , J u d g e.

In t h i s cas e, Pri ce & Co

., a wh ol es al er o f g o o ds co m m on l y s t ock ed an d s o l d in

co n ven i en ce st o res

, al l eg es t h at Sco t t M o o n an d t h e m an ag em en t co m p an y fo r wh i ch

h e wo rk s, M ajo rs Man ag em en t

, s h o u l d b e h el d l i ab l e fo r t h e co s t o f cert ai n i n v en t o ry

Pri ce so l d t o Haro o n An war an d An war’ s b u s i n es s, HR As s o ci at es

, In c. (co l l ect i v el y

“ An war”) t o s t o ck s i x co nv en i en ce s t o res op erat ed b y A n war. In p ro ceed i n g s b el o w,

t h e t ri al co u rt gran t ed su m m ary ju dg m en t t o M o o n an d M ajo rs M an ag em en t o n al l

o f Pri ce’ s cl ai m s

. Becau se Pri ce h as fai l ed t o p ro v e an y ev i d en ce o f ei t h er an

en fo rceab l e co nt ract o r en fo rceab l e p ro m i s e fro m M o o n o r M ajo rs Man ag em en t to

p ay An war’ s p as t -d u e d eb t s, we affi rm

.Th e s t an d ard s fo r s u m m ary ad ju d i cat i o n are wel l s et t l ed

.

Su m m ary ju d g m en t i s p ro p er i f t he p l ead i n g s, d ep o s i t i o n s

, an s w ers t o

i n t erro g at ori es

, an d ad m i s s i o n s o n fi le, to g et h er wi t h th e a f f i d av i t s

, i f

an y

, s h o w t h at t h ere i s n o g en u i n e i s s ue as t o an y m at eri al fact an d t hat

t h e m o v in g p art y is en t i t l ed t o a ju d g m en t as a m at t er of l aw. A s u m m ary

ju d g m en t ru l in g en

jo y s no p res u m

p t i o n o f co rrect nes s o n ap p eal

, an d an

ap p el l at e co u r t m

u s t sat i s fy i t s el f d e n o v o t h at t h e req ui rem en t s o f

OCGA § 9 -1 1 -5 6 (c) h av e b een m et

. Im p o rt an t l y

, i t i s n o t t h e ro l e o f t h i s

Co u rt t o s ort t h ro u g h t h e ev i d en ce, res o l v e co n fl i ct s

, an d m ak e fi n d i n g s

o f fact bas ed o n t he ev i den ce i t fi n d s cred i b l e. Rat h er, i n ou r d e n o v o

rev i ew o f a t ri al co u rt ’ s d en i al o f a m o t i o n fo r s u m m ary ju d g m en t

, we

m u s t det erm in e wh e t h e r t h ere i s a g en u i n e i s s u e o f m at eri al fact an d

wh et h er t he u n d i s p u ted fact s , v i ewed i n t h e li gh t m o s t fav o rab l e t o th 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.

(Ci t at i o n s an d p un ct u at i o n o m i t t ed .) Pa t el v. 2 6 0 2 Deer f i el d

, LLC

, 3 4 7 Ga. Ap p

. 8 8 0,

8 8 3 -8 8 4 (8 1 9 SE2 d 5 2 7 ) (2 0 1 8 ). Th i s s t an d ard g u i d es o u r co n s i derat i o n

.

I n h i g h l y s u m

m ari zed fo rm

, t h e rel ev an t fact s s h o w t h at Pri ce so l d go o d s t o

An war t o s t o ck a t o t al o f 2 2 co n v en i en ce s t o res l eas ed an d o p erat ed by An war in

Lo u is i an a. Pri ce s o l d t hi s i n ven t o ry wi t h o u t ret ai n i n g a s ecu ri t y i n t eres t i n t h e g o o d s

,

an d t h e i n v o i ces i s s u ed b y Pri ce s t at e t h at t he i n v en t o ry was “ [s ] o ld t o : HR

As s oci at es

, In c.” 1 Co m

p l icat i n g t h e m an ag em en t s t ru ct u re o f t h e 2 2 co n v en i en ce

s t ores

, each o n e was h el d at t h e t i m e o f t h e t ran s act i o n s i n i s s u e b y t wo s ep arat e

l i m i ted l i ab il i ty co m

p an i es

– an “ o wn ers h i p” LLC t h at h el d t h e rea l p r o p ert y

1 Th e ord ers w ere p l ac e d b y An war o r o n e o f h i s as s oci at es d irect l y t o Pri ce.

2as s o ci at ed wi t h each s t ore an d an “ o p erat i n g ” LLC t h at was u s ed t o pu rch as e al co h ol

fo r t h e s t o res an d h an d l e d ay -t o -d ay b u s i n es s

.

M ajo rs M an ag em en t i s a co m p an y p ro vi di n g m an ag em en t s erv i ces fo r g as

s t at i o n s an d co n v en ien ce s t o r es

, in cl u d i n g t h e s t o res i n v o l v ed i n t hi s l it i g at io n

. 2

M o o n i s a m an ag er fo r M ajo rs M an ag em en t

, an d

, i n t h i s cap aci t y

, o v ers ees a l arg e

n u m b er o f b u s in es s es

, i n cl u d i n g h u n d red s o f co n v en i en ce st o res o wn ed o r o p erat ed

b y M arv i n Hewat t En t erp ri s es an d i t s s u bs i d iari es

. 3 M ajo r s M an ag em en t i s n o t a

m e m b e r o r a m a n a g er o f an y o f t h e LLCs rel at ed to th is cas e an d h as n o i n t eres t in

t h em

, an d

, al t h o u g h M o o n was a m an ag er o f t h e o perat in g LLCs fo r t h e 2 2

co n ven i en c e s t o r e s

, h e h ad n o o wn ers hi p i n t eres t in t h em

. It i s u n d i s p u t ed t h at t h e

s o l e m em b er of each op erat i n g LLC i s Du s t i n Hewat t

, t h e so n o f M arv in Hewat t (wh o

o wn s M arv i n Hewat t En t erp ri s es ). 4

2 M o o n, i n h i s ro l e as m a n a g e r o f M ajo rs M an ag em en t

, s et up t h e 2 2

co n ven i en ce s to res in v o l v ed i n t h i s l i t i g at i o n i n t h e s am e way he s et u p t h e ot h ers fo r

M arv i n Hewat t En t erp ri s es

. Al t h o u g h al l 2 2 s t o res are l o cat ed i n Lo u i s ian a, th ey were

o rg an i zed as 4 4 Geo rg i a l i m i t ed l i ab i l i t y co m p an i es wi t h t h ei r p ri n ci p al p l aces o f

b u s i n es s i d en t i fi ed as b ei ng i n Geo rg i a. In Decem b er o f 2 0 1 5, Majo rs M an ag em en t

d i s s o l v ed t h e ex i s t i n g “ o p erat i ng ” LLCs

.

3 M o o n i s al s o an em

p l o y ee o f M arv i n Hewat t En t erp ri s es

.

4 M arv i n He wa t t o wn s 5 0 p ercen t o f M ajo rs M an ag em en t an d i s t h e s o l e

m em b er of M arv i n Hewat t En t erp ri s es

. M arv in Hewat t i s al s o t he s o l e m em ber o f t h e

3M o n ey earn ed b y each o f t h e co n ven i en ce s t o res i n i s su e h ere (as wel l as t h e

h u n d red s o f ot h ers own ed b y M arv in Hewat t En t erp ri s es ) was i n i t i al ly fu n n el ed i n to

a s i ng l e acco u n t m an ag ed by M a j or s M a na ge m e nt ( t h e “ M ajo rs Po o l Acco u n t ”). Fro m

t h i s acco u n t

, M ajo rs M an ag em en t co u l d al lo cat e fu nd s t o i n d i v i d u al st ores as n eed ed

t o pay ex p en s es

. M o o n

, i n h i s cap aci t y as a m an ag er o f t he o p erat i n g LLCs

, o p en ed

a b an k acco u n t fo r each op erat i n g LLC i nv o l v ed i n t h i s m at t er. M ajo rs M an ag em en t

al s o p ai d cert ai n t ax es an d fi l ed t ax ret u rn s o n b eh al f o f t h e o p erat i n g LLCs

.

Ov er t i m e

, A n w a r b eg an d efau l t i n g o n hi s o b l i g at io n s as l es s or o f t h e

co n ven i en ce s t o res

. Bet ween Oct o b er an d No v em b er 2 0 15 , al l 2 2 s t ores p rev i o u s l y

l eas ed by An war, in cl u d in g i n v en t o ry

, were t ran s ferred t o Lo ui s i an a GX, L L C

. 5

$ 9 2 0 ,2 1 9 .8 9 was p ai d by Lo u i s i an a GX fo r t h e i n v en t o ry co n tai n ed i n t h es e 2 2 s t o res

an d d ep o s i t e d i n t o t h e M ajo rs Po o l Acco u n t

. 6 O n Oct o b er 5

, 2 0 1 5, M ajo rs

M an ag em en t wi red $ 3 2 1,4 6 6 .7 7 fro m t he Majo rs Po o l A cco u n t t o Pri ce as p ay m en t

o wn ers hi p LLCs i n v o l v ed i n t h i s m at t er.

5 An war h ad b een as ked t o v acat e t h e s t o res d u e t o p erfo rm an ce i s su es

.

6 M o o n ack n o wl ed g ed th e am o u n t M ajo rs M an ag em en t c ha r ge d L ouisia

na G X

, LLC fo r t h e i n v en t o ry ($ 9 2 0,2 1 9 .8 9 ) was “ $ 1 7 ,6 1 9 .2 3 sh o rt ” o f t h e am o u nt o wed to

Pri ce ($ 9 3 7 ,8 3 9 .1 2). To m ak e u p fo r th i s sh o rt fal l

, M arv i n Hewat t d i r e c t e d M ajo rs

M an ag em en t t o d ed u ct $ 1 7,6 1 9.2 3 fro m t h e am o u n t i t ag reed t o p ay An war t o v acat e

t h e s t o res h e h ad b een ren t i ng an d o p erat i ng

.

4fo r i n v en t o r y h e l d i n 8 o f An war’ s 2 2 fo rm er s t o res

. On Oct o b er 1 9

, 2 01 5

, M ajo rs

M an ag em en t wi red Pri ce an ad d i t i o n al $ 2 1 8 ,4 0 8 .3 0 fro m t h e M ajo rs Po ol Acco u nt

as pay m en t fo r m erch an d i se Pri ce h ad s o l d t o 8 m o re o f A n war’ s s t o res

. O n M o n d ay

,

No v em b er 2

, 2 0 15

, M o o n as k ed Pri ce t o p ro vi d e s t at em en t s in d i cat i n g t h e rem ai n i n g

am ou n t o wed fo r t h e m erch an d is e pro v i d ed t o An w ar’ s fi n al 6 s t o res

. 7 Th i s rem ai n i n g

b al an ce was d et erm i n ed t o b e $ 3 9 7 ,9 6 4 .0 5

. 8

In th e u n d erl y i n g act i o n, Pri ce co n t en ds t h at i t h as n ev er b een p ai d t h e b al an ce

o wed

. Pri ce fu rt h er co n t en ds t ha t M ajo rs M an ag em en t an d M o o n s ho u l d b e fo u n d

l i ab l e fo r t h e co s t o f i t s go od s u n d er a “ k i t ch en s i n k ” as s ort m en t o f b as es

, i n cl u d i n g:

(1 ) s u i t o n o p en acco u n t ; (2 ) u n ju s t en ri ch m en t ; 3 ) q u an t u m m eru i t ; (4 ) p ro m i s s o ry

es t o p p el ; (5 ) m o n ey h ad an d recei v ed ; (6 ) frau d ; (7 ) frau du l en t / v o i d ab l e t ran s fers ; (8 )

co n vers io n ; an d (9 ) co n st ru ct i ve t ru s t . In ad di t io n

, Pri ce s ou g h t at t o rn ey fees

. 9

7 In h is em ai l

, M o o n i n fo rm ed Pri ce t h at “ [w] e w i ll be t ak i n g o v e r t h es e

l o cat io n s o n Tu es d ay

an d W ed n es d ay .”

8 M o o n an d Majo rs M an ag em en t i n d i cat ed t hat Pri ce co u l d n o t b e p ai d b ecau s e

An war’ s d eb t s ex ceed ed t he as s et s o n h an d

, an d t h ere were i n s uffi ci en t fu n d s t o p ay

Pri ce t h e fu l l d eb t o wed b y HR As s o ci at es

.

9 In ad d it i o n t o M o o n an d M ajo rs M an ag em en t

, Pri ce nam ed each of t h e s ix

o p erat i n g LLCs as a d efen d an t

.

5On Jan u ary 29

, 2 0 2 0

, Pr i c e m o v ed fo r p art i al s u m m ary j u d gm en t ag ai n s t

M ajo rs M an ag em en t an d Mo o n o n i ts cl ai m s fo r s ui t on o p en a c c o u n t

, u n ju s t

en ri ch m en t

, p ro m is s o ry es t o p p el

, m o ney h ad an d recei v ed

, frau d

, an d at t o rn ey fees

.

To s u p p ort i ts m o t io n

, Pri ce co n t e n d e d t h at M o o n an d M arv i n Hewat t m ad e t h e

d eci s i o n no t t o p ay Pri ce t h e rem ai ni n g $ 3 9 7 ,9 6 4 .0 5. Pri ce fu rt h er co n t en ded t h at t h e

s i x o perat i ng LLCs

, al o n g w i t h M ajo rs M an ag em en t an d M o o n

, rem ai n o bl i g at ed to

p ay Pri ce fo r t h e i nv en t o ry it al l eg es t h ey s h o u l d b e co n si d ered t o h av e recei v ed (as

o p p o s ed t o An war). On Ap r i l 8

, 2 0 2 0

, M ajo rs M an ag em en t an d M o on m o v ed fo r

s u m m ary ju d g m en t o n al l o f Pri ce’ s cl ai m s

. Fo l l owi n g a h eari n g

, t he t ri al co urt d en i ed

Pri ce’ s m o ti o n fo r s u m

m ary ju dg m en t an d g ran t ed M ajo rs M an ag em en t an d M o o n ’ s

m o ti o n fo r s u m

m ary ju d g m en t o n al l cl ai m s . Th i s ap p eal en s u ed

.

1

. Befo re d el v i ng i n t o each o f Pri ce’ s i n d i v i d u al cl ai m s

, i t is in s t ru ct i v e t o n o t e

t h at t h e co n t en t i o n s rai s ed ag ai n s t M o o n an d M ajo rs M an ag em en t can be cl as s i fi ed

i n t o two m ai n cat eg o ri es : (1 ) cl ai m s t h a t M o o n

, o n b eh al f o f h im sel f an d M ajo rs

M an ag em en t, o p en l y an d affi rm at i v el y o b l ig at ed t hem s el v es t o p ay P r i c e f o r t h e

i n v en t o ry p ro v i d ed to An war t o s el l i n h i s s t ores (o p en acco u n t

, en fo rceab l e p ro m i s e

t o an s wer fo r t h e d eb t o f an o t h er, an d p ro m i s s ory es t o p p el ) an d (2 ) cl ai m s t hat M o o n

an d Majo rs M an ag em en t s h o u l d b e l eg a l l y o r e q ui t ab l y req u ired t o p ay fo r t h e

6i n v en t o ry

b ecau se t h ey em

p l o y ed s o m e s o rt o f art i fi ce an d t ri ck ery t o p rev en t Pri ce

fro m recei vi n g fu n d s as t o wh i ch Pri ce cl ai m s e n t i t l em en t (co n s p i racy

, al t er eg o

l i a b i l i t y

, u n

ju s t en ri ch m en t

, frau d

, frau d u l en t t ran s fer, co nv ers i o n, m on ey h ad an d

recei v ed an d co n s tru ct i v e t ru s t ). Becau s e Pri ce n ev er co n t ract ed di rect l y wi t h M o o n

o r M ajo rs M an ag em en t fo r t h e p ro v is i o n o f t h e i n v en t o ry o r p ay m en t t h erefo r (M o o n

an d M ajo rs M an ag em en t were m an ag i n g m i dd l em en ), becau s e Pri ce fai led t o ret ai n

a s ecu ri ty i n t ere s t i n t he i n v en t o ry

, an d becau s e t h ere i s n o ev i d en ce th at M o o n o r

M ajo rs M an ag em en t act ed in an y way t o ab sco n d wi t h Pri ce’ s u n s ecu red i n v en t o ry

,

n ei t h er cat eg o ry o f cl ai m s can s u rv i v e s u m m ary ju d g m en t

. E a c h g ro u p o f Pri ce’ s

cl ai m s wi l l n o w b e s ep arat el y co n s i d ered

.

2

. Pri ce’ s fi rs t g ro u p i ng of cl ai m s are al l b as ed on t h e s am e p ro po s i ti o n : M o o n,

o n b eh al f o f h i m s e l f an d M ajo rs M an ag em en t

, m ad e an affi rm at i v e, l eg al l y

en fo rceab l e p ro m is e t o Pri ce th at t h ey wo u l d be l i ab l e fo r t h e p ay m en t fo r i n v en t o ry

ev en i f An war (o r t h e o perat i n g LLCs ) d i d n o t p ay

. T h e s e cl ai m s

, h o wev er, h av e a

co m m o n d eb i l i t at in g i n fi rm i t y

– s u ch a gu aran t y wo u l d h av e t o b e i n wri t i n g t o b e

l eg al ly en fo rceab l e u n d er t h e St at u t e o f Frau d s

. 1 0

1 0 W e n o t e t hat

, t h ro u g h o u t i t s b ri efi n g

, Pri ce m ak es co n cl us o ry s tat em en t s t h at

t h e i n v en t o ry was “ s o ld t o M o on an d M ajo rs .” Th at

, h o w ev e r

, i s Pri ce’ s o wn

co n cl u s i o n , an d t h at co n cl u s io n, i n an d o f i t s el f, d o es n o t creat e a q u es t i on o f fact

.

7Pri ce prem i s es al m o st al l o f i t s arg um en t s t h at M o on p ro m i sed t o p ay fo r

i n v en t o ry s ol d t o A n wa r o n t es t i m on y fro m M i s b ah Ch au d ry

, a co rp o rat e

rep res en t at i v e o f Pri ce. Ch au d ry s t at ed t h a t, i n Oct o b er o f 2 0 1 5, “ M ajo rs

M an ag em en t

. . . as s u red u s s ev eral t i m es o v er t h e p h on e t h at t h ey wi l l t ak e care o f

al l t h e b al an ces . An d [M o o n ] al s o ev en s ai d t h at h e – g o ah ead an d k eep d el i v eri n g

t o t h es e s t o res b ecau se h e’ s res p o n s i b l e fo r t h e pay m en t s .” Ch au d ry fu rt her s t a t ed :

“ Sco t t M o o n fro m M aj o rs Man ag em en t cal l ed m e an d as s u red m e t h at h e wi l l t ak e

care of al l t h es e s t o res .” Bu t t h es e p ro m is es a r e c o n s i s t en t wi t h M o o n an d M ajo rs

M an ag em en t act i n g i n a m an ag em en t ro l e fo r t h e u nd erl y i n g co m pan i es

, as t h ey h ad

d o n e fo r s o m e t im e. An d, u p t o t h at p oi n t

, i t i s cl ear t h at Pri ce s o l d i t s g o o d s t o an d

i n v o i ced An war. 1 1 Pri ce h as p r o d u ced n o i n v o i ce t h at was ev er di rect ed to M ajo rs

M an ag em en t o r M oo n i n an y cap aci t y

, wh i ch

, of co u rs e, m ak es p erf e ct s en se i f

M ajo rs M an ag em en t an d M o on were act i n g i n a m an ag eri al fu n ct i o n as o p p o s ed t o

an o w n ers h i p fu n ct i o n

. So

, th e real it y i s t h at Pri ce b eg an l o o ki n g to M o o n an d M ajo rs

M an ag em en t t o b eco m e g u aran t i es o f u n s ecu red p ro p ert y a f t er Pri ce co m

p l et ed t h e

1 1 In em ai l s wi t h Mo o n ab o u t t h e p as t d u e p ay m en t s

, Ch au d ry referred t o t h e

m o ney as b ei n g “ owed b y Haro o n [An war] .” An d

, wh en as k ed w h y Pri ce’ s i n v o i ces

were ad d res s ed t o An war’ s b u s i n es s

, Ch au d ry res p o n d ed

, “ Becau s e t h e y w e r e

res p o n s i b l e fo r m ak i n g p ay m en t s .”

8s al e o f t ho se go o d s t o A n w ar an d a f t er An w ar defau l t ed on p ay m en t s wi t h reg ard to

t h o s e g oo d s

. 1 2 A n d, d es p i t e th e fact t h at Pri ce co n t en d s t h a t M o o n ad v i s ed Pri ce to

co n ti n u e d el iv eri n g g o o d s t o t h e s t o res aft er An war was rem o v ed

, t h i s s ui t d o es n ot

i n v o l v e an y

s u ch i t em s s o l d at a l at er d at e.

W i t h al l o f t h i s i n m i n d

, each o f Pri ce’ s cl ai m s i n t h i s cat eg o ry are q u i ck l y

d i s co u n ted , as fo l l o ws :

(a) Op en Acco un t : Pri ce co n t en d s t h at M o o n an d M ajo rs M an ag em en t s h o u ld

b e h el d l i ab l e fo r t h e co s t o f t h e i n v en t o ry pro v i ded t o An war b as ed o n t he creat i o n

o f an o p en acco u n t

. Bu t an act i o n fo r o p en acco u n t i s n o t s u it ab l e fo r Pri ce’ s cl ai m s

.

A s u i t o n o p en acco u n t i s av ai l ab l e as a s i m p li fi ed p ro ced ure t o t h e

p ro v i d er o f g oo d s an d s erv i ces wh ere t h e p ri ce o f s u ch g o o ds o r s erv i ces

h as b een ag reed u p o n an d w h ere i t ap p ears t h at t h e p l ai n t iff h as fu l l y

p erfo rm ed it s p art o f th e ag reem en t a n d n o t h i n g rem ai n s t o b e d o ne

ex cep t fo r t h e o th er p art y t o m ak e p ay m en t

.

( C i t at i on an d p u n ct u at i o n o m i t t ed ). Al t a ca r e Co r p

. v. Decker

, Ha ll m an

, Ba r b er &

Br i g g s , P.C. , 3 1 6 Ga. Ap p . 7 1 8 , 7 1 9 (7 3 0 SE2 d 1 2 ) (2 0 1 2). Fu rt h erm o re,

W h en t here i s a d i s p u t e th at g o es t o ei t her as s en t t o t h e s erv i ces

, t erm s

o f t he co n t ract

, w h at wo rk w as perfo rm ed

, t h e q u al it y o f th e

1 2 P ri ce’ s at t em

p t t o creat e i n d i rect l i ab i l i t y fo r M o o n b y su i n g t h e o p erat i n g

LLCs d o es n o t ch an g e t h i s ch aract eri zat i o n o f t h e ev i d en ce. It is u n d i s p u t e d t h at

M o o n was a m an ag er o f t he op erat i n g L L C s

, a n d t h e act u al co nt ro l o f th o s e LLCs

was v es t ed s o l el y i n Du st i n Hewat t

.

9p erfo rm an ce, or co s t

, t h en s u i t o n acco u n t i s n ot t h e pro p er p ro ced u re

fo r s u i t

, b ecau s e t h ere i s a fact u al i ss u e o t her t h an n o np ay m en t on th e

acco u n t

.

Id

. Here, t h ere is n o wri t t en co n t ract b et w een t he p art i es

, an d Pri ce’ s al l eg at i o n s t h at

an o p en acco u nt sh o u l d b e i m pl i e d f ro m co urs e o f co n d u ct bet ween th e p art i es (as

o p p o s ed t o b ei n g creat ed b y an ex p l ici t an d o n g o in g ag reem en t t h at wo u l d l en d i t s el f

t o t h e s i m

pl i fi ed p r o c e d u re o f an o p en acco u n t), ru n s afo u l of t h e p rereq u i s it es

n eces s ary fo r t h is d oct r i ne

– es p eci al l y s i n ce t h e ex i s t en ce o f a co nt ract

, m u ch l es s

i t s t erm s

, i s i n d i rect d i s p u t e b et ween t h e p art ies

. Fo r t hi s reas o n al o n e, th e t ri al co u rt

p ro p erl y g ran t ed s u m

m ary j u d gm en t i n fav or o f M ajo rs Man ag em en t an d M o o n o n

t h i s cl ai m . Id

.

(b ) En f o rcea b l e p r o mi s e t o p a

y th e d eb t o f a n o t h er : Pri ce rel i es o n t h e s am e

t es t i m o ny fro m Ch au d ry d et ai l ed ab o v e t o co n ten d t h at Mo o n , o n b eh al f o f h i m s el f

an d Majo rs M an ag em en t

, m ad e an en fo rceab l e p ro m i se t o p ay fo r An war’ s d eb t s

. In

o t h er wo rd s

, Pri ce co n t en d s t h at M o o n an d M ajo rs M an ag em en t ag reed t o b e

g u aran ti es

. Bu t

, ev en if o ne p ut s as i d e al l o f t he p ro b l em s wi t h Pri ce ’s c o n t en t i on s

an d as s u m es t h at M o on a n d M a j o r s M an ag em en t d i d i n t en d t o b e g u aran t i es o f

An war’ s d eb t

, an y g u aran t y ag reem en t wo u l d h av e t o be i n wri t i n g t o b e en fo rceab l e

u n d er t h e St at u t e of Frau d s

. See OCGA § 1 3 -5 -3 0 (a) (2 ) (a p ro m i s e t o an s wer fo r t h e

10d eb t o f an o t h er m u s t b e i n wri t i n g an d s i g ned b y t h e part y to b e ch arg ed t h erewi t h ).

Th i s req u i rem en t has b een i n t erp ret ed t o m an d at e fu rt h er t h at a g u aran ty i d en t i fy t h e

d eb t, t h e p ri n ci p al d eb t o r, t he p r o m i s o r

, an d t he p ro m i s ee. See, e.g

., Ro a ch v. C. L.

W i g in g to n En t er

p r i s es , 2 4 6 Ga. Ap p . 3 6, 3 7 (5 3 9 SE2 d 5 4 3 ) (2 0 0 0 ).

No n e o f t h es e req u i rem en t s h as been m et t o creat e an en fo rceab l e g u aran t y in

t h i s cas e, as i t is u n d i s p u t ed t h at t h ere i s n o wri ti n g at a l l

. An d

, co n trar y t o P r i ce’ s

co n ten t i o n s o t h erwi s e, t he part -p erfo rm an ce ex cep t i o n to t he St at u t e o f Frau d s i s n ot

i m p l i cat ed h ere, ei t h er. “ Un d er t h at p art p erfo rm an ce ex cep ti o n

, t he wri t i n g

req u i rem en t o f t h e St at u te o f Frau d s i s i n ap p l i cab l e ‘ wh ere t h ere h as b een s u ch p art

p erfo rm an ce o f t h e co n t ract as wo u ld ren d er it a frau d o f t h e p art y refu s i n g to co m p l y

i f t h e co urt d i d n o t co m

pel a p erfo rm an ce.’ OCGA § 13 -5 -3 1 (3 ).” Ca r t er v. Pa r is h

,

2 7 4 Ga. Ap p

. 9 7

, 99 (1 ) (6 1 6 SE2 d 8 7 7 ) (2 0 0 5 ). See al s o Tr ou t ma n v. Tr o u t ma n

, 2 9 7

G a

. Ap p

. 6 2

, 6 5 (1 ) (6 7 6 SE2 d 7 8 7 ) (2 0 0 9 ) (St at u t e of Frau d s d oes n ot ex t en d t o

cas es w h e r e t h ere h as b een p art p erfo rm an ce o f t h e co n t ract th at wo u l d ren d er i t a

frau d i f p erfo rm an ce o f t h e refu s in g p art y w ere n o t co m p el l ed ). An o ral “ co n t ract

s o u g ht t o b e en fo rced b as ed o n p art p erfo rm an ce m u s t be cert ai n an d d efi n i t e i n al l

es s en t i a l p a rt i cu l ars .” Tr ou t ma n

, s u p ra. Ad d i t i on al l y

, “ [w] i t h res p ect t o t h e p art

p erfo rm an ce o f a p aro l co n t ract d es cri b ed i n OCGA § 13 -5 -3 1 (3 ), t o rem o v e t h e

11co n tract fro m t h e o p erat i o n o f t h e St at u t e o f Frau d s

, t h e part perfo rm an ce s h o wn m u s t

b e co ns i s t en t wi t h t h e pres en ce o f a co nt ract an d i n co ns i s ten t wi t h t h e l ack o f a

co n tract

. ” (Ci t at i o n

, p u n ct u at i o n

, an d em p h as is o m i tt ed

. ) P a

yn e v. W ar r en

, 2 8 2 Ga.

Ap p . 5 2 4 , 5 2 6 (6 3 9 SE2 d 5 2 8 ) (2 0 0 6 ).

In t h e p res en t cas e, t h e p art p erfo rm an ce ex cep t io n is i n ap pl i cab l e becau s e t h e

ev i d en ce i n d i cat es t h at Pri ce u n d ers to o d t h at An war w as t h e pu rc h as er an d d eb t o r,

n o t Mo o n o r M ajo rs M an ag em en t

, an d th e i n ven to ry was s o l d t o an d re-s o l d in

An war’ s s t ores

, n ot s ep arat el y b y M o o n an d M ajo rs M an ag em en t

. An d, i n an y ev en t

,

t h e p ro m i s e u po n w h i ch Pri ce rel i es w as m ad e aft er t h e i n v en to ry in v ol v ed i n t h e

p r e s en t cas e had al read y been s o l d an d i n v oi ced to An war. 1 3 So

, ev en i f Mo o n a n d

M ajo rs M an ag em en t co u l d be co n s i d ered t o h av e en g ag ed in th e p art perfo rm an ce o f

an y t h i n g

, i t wo u l d rel at e t o i n v en t o r y n ot i n vo l v ed i n t h e p res en t act i o n

, b u t fu t u re

i n v en t o ry

.

1 3 On a p p e al

, Pri ce co n t en d s t h at t h e s t at em en t s fro m Mo o n s h o u l d b e

i n t erp ret ed as creat i ng an o ri g i n al o b l i g at i o n in w hi ch M o o n an d M ajo rs M an ag em en t

are t h e p ri n ci p al d eb t o rs

. Bu t t h e fact s d o n o t s u pp o rt t h i s ch aract eri zat io n

, an d

, ev en

i f th ey d i d

, i t w o u l d creat e an o b l ig at i on g o i n g fo rward fro m t h at po i n t i n t i m e. It

wo u l d no t ret ro act i vel y co v er i n v en t o ry al read y so l d b y Pri ce an d t o wh i ch Pri ce n o

l o n g er h el d t i t l e.

12(c) Pr omi s s o r y e s t o p pel : In cl o s e rel at i o n t o i t s cl ai m t hat M o o n an d M ajo rs

M an ag em en t s ho u l d b e b o u n d as g u aran t i es

, Pri ce al s o arg u es t h at M o o n an d M ajo rs

M an ag em en t s h o u l d b e l i ab l e o n t h e b as i s o f p ro m i s s o ry es t o p pel

. OCGA § 1 3 -3 -4 4

(a), wh i ch co v ers t h is d o ct ri ne, p ro v i des t hat “ [a] p ro m i s e w h i ch t h e p ro m i s or s h o u ld

r e a s o n a b l y ex p ect t o i n d u ce act i o n o r fo rb earan ce on t h e part o f th e pro m i s ee o r a

t h i rd p ers o n an d wh i ch d o es in du ce s u ch act i o n o r fo rb earan ce is b i n d in g if i n ju s t i ce

can b e av o i d ed o n ly b y e n f o rcem en t o f t h e p ro m i s e.” To es t ab l i s h a p ro m i s s o ry

es t o p p el cl ai m , Pri ce wo u l d n eed t o p ro v e t h at

(1 ) [M o o n] m ad e a p r o m i s e o r p ro m i s es ; (2 ) [M o o n ] s h o u l d h av e

reas o n ab l y ex p ect ed [Pri ce] t o rel y o n s uch pro m i s e ; ( 3 ) [Pri ce] rel ied

o n s u ch p ro m i s e to [i t s ] d e t r i m e n t ; an d (4 ) an i n ju s t ice can o n l y be

av o i ded b y t h e en fo rcem en t o f t h e p ro m i s e, b ecau se as a res u l t o f th e

r e l i a n ce, [Pri ce] ch an g ed t h ei r po s it i on t o t h ei r d et ri m en t b y

s u rren d eri n g , fo rg o in g , o r ren d eri ng a v al u ab l e ri g ht

.

(Ci t at i o n an d p u n ct uat i o n om it t ed .) Ma r i n er Hea l t h ca r e v. Fo st er

, 2 8 0 Ga. Ap p

. 4 0 6,

4 1 2 (5 ) (6 3 4 SE2 d 1 62 ) (2 0 0 6 ). “ [E] s t o pp el s are n o t fav o red b y o u r l aw.” (Ci t at i o n

an d p un ct u at i o n o m i tt ed ) Gr i f f i n v. S t a t e Ba n k o

f Co ch r a n

, 3 1 2 Ga. Ap p

. 87

, 9 5 (2 )

(a) (7 18 SE2 d 3 5) (2 0 1 1 ). “ If th ere i s n o ev i d en ce s u ffi ci en t t o creat e a gen ui n e i s s u e

as t o an y es s en t i al el em en t o f p l ai n t iff’ s cl ai m [o f p ro m i s so ry es t o pp el ]

, t h a t cl ai m

13t u m

b l es l i k e a h o u se of card s

. Al l o t h er d i s p u tes o f fact are ren d ered i m m at eri al .”

La u ’s Co r

p . v. Ha s ki n s , 2 61 Ga. 4 9 1 (4 0 5 SE2 d 4 7 4 ) (1 9 9 1).

Here, Pri ce’ s pro m is s o ry es t o p p el cl ai m t u m b l es b ecau s e, ev en i f we ag ai n

d i s reg ard al l t h e o th er pro b l em s wi t h Pri ce’ s ch aract eri zat i on s of M o o n ’ s pro m i s e, i t

i s n o t an en

f o r cea b l e p ro m i s e. See Mo o ney v. Mo on ey

, 2 4 5 Ga. Ap p

. 7 80

, 7 8 3 -7 8 4

(5 3 8 SE2 d 8 6 4 ) ( 2 0 0 0 ). In s t ead

, t h e p ro m i s e wh i ch Pri ce co n t en d s was m ad e by

M o o n

– nam el y to b e res p o n s i b l e fo r A n war’ s d eb t

, wo u l d v i o l at e t h e St at u t e o f

Frau d s

, as j u s t d i scu s s ed

. Fu rt h erm o re, t he ev id en c e i n d i cat es t h at M ajo rs

M an ag em en t an d M o on were act i n g i n a m an ag eri al cap aci t y fo r t h e p r inc ip al o b l i g o r,

An war, an d t h at Pri ce l o o k ed t o An war fo r p ay m en t o f t h e in v en to ry i n vo l v ed i n t h i s

cas e.

2

. Pri ce’ s s eco n d cl as s o f cl ai m s

, s o u n d i n g i n frau d an d eq ui ty

, i s b as ed o n t h e

p r e m i s e t h a t

, i n t h e ab sen ce o f an y co n t ract

, M o o n an d M ajo rs M an ag em en t

m an i p ul at ed Pri ce t o p ro v id e i n v en t o ry t o An w ar wi t h s o m e p r e d e t erm i n ed

k n o wl ed g e an d s ch em e th at Pri ce wo u l d n ev er b e fu ll y pai d fo r t h e g oo d s pro v i d ed

.

Bu t t h ere i s n o v iab l e ev i d en ce t o s u p p o r t t h i s

, an d

, ag ai n

, i t ap p ears t h at t h e

rep res en t at i o ns u po n wh ich Pri ce rel i es were m ad e a f t er An war had al read y b een s o ld

t h e i n v en t o ry i n q u es t i on

. So

, Pri ce o n ce m o re at t em p t s t o r et r o a ct i vel

y m ak e M ajo rs

14M a n a g e m en t an d M o o n res p o n s i b l e fo r An war’ s d eb t t h ro ug h i t s cl ai m s o f

co n sp i racy

, frau d

, an d t he l i k e. Fo r t h i s reas o n , an d o t h ers d i scu s s ed b el o w, Pri ce’ s

cl ai m s i n t h i s cat eg ory m u s t al so fai l

.

(a) Fr a u d

, co n sp i r a cy, a nd

f r a u d u l en t/ vo id a bl e t r a ns f er : In re la te d c onte nt i on s

o f frau d

, co n s p i racy

, an d frau d ul en t t ran s fer, 1 4 Pri ce arg u es t h at M ajo rs M an ag em en t

an d M o o n

, i n as s oci at i o n wi th M arv i n Hewat t

, act ed t o co n v i n ce Pri ce t o p ro v i d e

i n v en t o ry t o A n wa r wi t h kn o wl ed g e t h at Pri ce wo u l d n o t b e fu l ly pai d as p art o f a

s ch em e. Bu t

, as ju s t m en t i o n ed , Pri ce rai s es n o v i ab l e p ro o f t h at t h is o ccu rred

.

In s u p p o rt of t h es e arg u m en t s

, Pri ce cl ai m s th at t h i s i s n o t t h e fi rs t t i m e M o o n

h as b een i n v o l v ed in frau d ul en t act iv i t i es a n d a c o n s p i racy li k e t h e o n e i t co n t en d s

h ap pen ed h ere. Pri ce p u t s fo rward t h i s o b s erv at i o n o n t h e erro n eo u s co n cl us i o n t h at

t h i s cas e i s i d en ti cal t o Ma r vi n H ewa t t En t er

pr i s es

, In c. v. B u t l er Ca

p i t a l Co r p

. , 3 2 8

Ga. Ap p

. 3 1 7 (7 6 1 S E 2 d 8 5 7 ) (2 0 1 4 ). Bu t a rev i ew o f t h at cas e act u al l y un d ercu t s

1 4 Un d er OCGA § 1 8 -2 -7 0 et s eq

. , th e “ Un i fo rm Vo i d ab l e Tran s act i o n s Act ,”

d eb to rs are p rev en t ed fro m ev ad i n g cred i t o rs b y m ak i n g c ert ai n en u m erat ed tran s fers

. Pri ce at t em

p ts t o cl ai m th at M o o n an d M ajo rs M an ag em en t frau d ul en t l y tran s ferred

i t s i n v en t o ry fro m An w ar to Lo u i s i an a GX. Bu t Pri ce’ s co n t en t i o n fai l s b ecau s e i t h as

n o t s h o w n t h at M o o n o r M ajo rs M an ag em en t was a d eb t o r t o Pri ce, an d Pri ce h ad n o

o wn ers hi p i n t eres t i n t h e i n v en t o ry t h at was t ran s ferred b ecau s e n o s ecu ri t y i n t eres t

was ret ai ned

.

15Pri ce’ s arg u m en t s i n th e cu rren t m at t er. Al t h o u gh t h at l i t i g at i o n d i d in v o l v e s o m e o f

t h e s am e en t i t i es i n v o l v ed i n t h i s cas e (m o s t s i g n i fi can t ly M arv in Hewat t En t erp ri s es )

an d t h ere were d i s p u t es o v er co n v en ien ce s to re i n v en t o ry

, t h at cas e i n v o l v ed t h e

b reach o f a wr i tt en co n tr a ct b et ween M arv i n Hewat t En t erp ri ses

, wh o own ed t h e

l a n d

, a n d a l en d er wh o h ad a s ecu r ed i n t er es t i n t he go o d s

. T hat

, i n act u al i t y

, i s

co mp l et el y d i f f er en t fro m t h e p res en t m at ter wh ere Pri ce, wi t h o u t an y s ecu red i n t eres t

i n t h e g o o d s o ver wh i ch i t i s s u i n g

, i s at t em p t i n g t o h o l d res po n s i b l e M ajo rs

M an ag em en t an d M o o n, n o n -o wn ers of t h e p ro p ert y o n wh i ch t h e s t o res s i t

, t h e s t o res

t h em s el v es

, o r t h e i nv en t o ry

, fo r t h e p ri ce o f u n p ai d i n v en t o ry i n t h e t o t al ab s en ce o f

an y wri t t en co n tract

. Co n t rary t o Pri ce’ s arg u m en t s

, t h es e p i v o t al an d s i g n i fi can t

d i fferen ces s h o w ex act l y wh y Pri ce’ s cl ai m s i n t h e cu rren t m at t er h av e n o fo u n d at i o n

u p o n wh i ch t o s t an d

.

In ad d i t i o n

, Pri ce i s at t em p t i n g t o bas e ju s t i fi ab l e rel i an ce, a p rereq u i s i t e t o i t s

frau d-b as ed cl ai m s

, 1 5 o n al l eg ed p ro m i s e s t h at were m ad e aft er t h e i n ven t o ry in

q u es ti o n h ad al read y

b een s o ld t o An war an d at a t i m e wh en t he ev i d en ce i n d i cat es

1 5 To es t ab li s h frau d

, Pri ce i s req u ired t o s h ow: (1 ) a fal s e rep res en t at i o n b y

M o o n; (2 ) s ci e n t e r; (3 ) i n t en t i o n t o i n d u ce Pri ce to act o r refrai n fro m act i n g ; (4 )

ju s t ifi ab l e rel i an ce b y Pri ce; an d (5 ) d am ag es

. Ha n l o n v. Th o rn t o n

, 21 8 Ga. Ap p

. 5 0 0,

5 0 1 (1 ) (4 6 2 SE2 d 1 54 ) (1 9 9 5 ).

16t h at Pri ce un d ers t o od An war an d h i s co m p an y to b e t h e p u rch as er o f t h e g o o d s

.

Ag ai n

, Pri ce can no t ret ro fi t s t at em en t s m ad e b y M o o n aft er t h e fact i n o rd er t o rewri t e

i t s ag reem en t wi t h A n war o r fas h i o n an o b l ig at io n by M o o n an d M ajo rs M an ag em en t

as t h e p ri n ci pal p art i es wi t h res p ect to i n v en t o ry a l r ea d y s ol d u n d

er d i f f er en t t er ms

.

An d

, i n an y ev en t

, t h e p ro m i s e Pri ce at t em p t s t o rel y o n rem ai n s u n en fo rceab l e u n d er

t h e St at u t e o f Frau d s, an d frau d i s n o t an av ai l ab l e r e m e d y wh ere th e p ro m i s e

al l eg ed l y rel i ed o n i s u nen fo rceab l e. See Bea sl ey v. Po n der

, 1 4 3 G a. Ap p

. 81 0 (2 4 0

SE2 d 1 1 1) (1 9 7 7) ( “ Al t h o ug h frau d can b e p red icat ed o n a m i s rep res en t at i o n as t o

a fu t u re ev en t wh ere t h e d efen d an t k n o ws t h at th e fu t u re ev en t wi ll n o t t a k e p l ace,

frau d can n o t b e p red i cat ed on a p ro m i s e wh i ch i s u nen fo rceab l e at th e t i m e i t i s

m ad e.” (Ci t at i o n s o m i t t ed )). 1 6

(b ) Un j u st en r ich men t

, q u a nt u m m er u i t

, mo n ey h a d a n d r ecei ved

, a n d

co n st r u ct i ve tr u st : Reco g n i zi ng t h e t en u ou s n at u re o f i t s o t h er arg u m en t s

, Pri ce al s o

c o n t e n ds t h at M o o n an d M ajo rs M an ag em en t s h ou l d b e h el d l i ab l e b as ed o n t h e

1 6 An d Pri ce’ s co n ten t i o n s t h at a co n s p i racy t o t ak e in v en t o ry fro m Pri ce

wi t h o u t p ay i n g fo r i t m ay b e i n ferred fro m M o o n an d M ajo r’ s act i o n s al s o fai l s

. Th e

ev i d en ce i n d i cat es th at M oo n an d Majo rs Man ag em en t wo rk ed as m an ag ers fo r t h e

g as st at i o n s an d fo r M a r v i n He w a t t En t erp ri s es

– n o t t h at t hey act ed o n t h ei r o wn

. Th erefo re, t h e t ri al co urt p ro p erl y g ran ted s u m m ary ju d g m en t in fav o r o f M o o n an d

M ajo rs M an ag em en t o n t h e cl ai m s o f frau d an d co n s p i racy

.

17eq u it ab l e d o ct ri n es o f u n ju s t en ri ch m en t

, q u an t u m m eru i t

, m o n ey had an d recei v ed

,

a n d co n s t ru ct i v e tru s t

. To p ro v e an y o f t h es e cl ai m s

, h owev er, Pri ce w o u l d h av e t o

s h o w t hat Mo o n a n d M a jo rs M an ag em en t i m

p ro p erl y t oo k an d p ro fi t ed fro m t h e

i n v en t o ry Pri c e s o l d t o An war, an d t h at it wo u l d b e u n fai r fo r Mo o n an d M ajo rs

M an ag em en t t o b e al l o wed to d o s o

. Of co u rs e, t h e p ro b l em t hat Pri ce faces wi t h an y

s u ch c l a i m i s t h a t it h ad n o secu ri t y i n t eres t i n t h e i n v en t o ry i ts el f an d n o wri t t en

co n tract o r gu aran t y wi t h Mo o n o r M a j o r s M an ag em en t. An d

, as m en t i o n ed

p re v i o u s ly

, t he reco rd s h ows t h at M o o n an d M ajo rs M an ag em en t’ s act i o n s were

co n si s t en t wi t h d o i ng t h ei r j o b s a s m a nag ers fo r An war o n o ne h an d an d M arv in

Hewat t E n t erp ri s es o n t h e o t h er.

(i ) “ Th e t h eo ry o f u n

ju s t en ri ch m en t ap p li es wh en t h ere i s n o l eg al co n t ract an d

wh en t h ere h as b een a ben efi t co n ferred wh i ch wo u l d res u l t in an u nju st en ri ch m en t

u n l es s co m

p en s at ed .” (Ci t at i o n an d p u n ct uat i o n o m i tt ed .) S mi t h S vc. Oi l Co

. v.

Pa r ker

, 2 5 0 Ga. Ap p

. 2 70

, 2 7 2 (4 ) (5 4 9 S E 2 d 4 85 ) (2 0 0 1). “ Fo r u nju st en ri ch m en t

t o ap p l y

, t h e p art y co n ferri n g t h e l ab o r an d t h i n g s o f v al u e m us t act wi t h t h e

ex p ect at i o n th at t h e o t h er w il l b e res p o n s i b l e fo r t h e co st .” (Ci t at io n an d pu n ct u at i o n

o m it t ed .) Mo r r i s v. B r it t

, 2 7 5 Ga. Ap p

. 2 9 3

, 2 9 4 (1 ) (6 20 SE2 d 4 2 2) (2 0 05 ). Bu t

, as

d i s cu s s ed ab ov e, t h e ev i d en ce s h o ws t h a t

, at t h e t i me Pr i ce s ol d t h e i n ven t o r y in

18q u es ti o n

, i t co n s i d ered An war t o b e t h e p u rch as er o f t h e g o od s , an d t h e p ro m i s e o n

wh i ch Pri ce wi sh es t o rel y was m ad e aft er An w a r d e f a u l t ed

. Th u s, at t h e t i m e t h e

i n v en t o ry i n i s s u e was i ni t i al l y s o l d

, Pri ce co u l d n o t h av e act ed wi t h t he n eces s ary

ex p ect at i o n t h at M o o n an d M ajo rs M an ag em en t w o u l d b e g u aran t i es o f An war’ s d eb t

(an u n en fo rceab l e ex p ect at i o n u n d er t h e St at u t e o f Frau d s i n an y ev en t).

(i i) “ Un d er t h e t h eo ry of l i ab i l i t y fo r q u an t u m m eru i t [,] t he es s en t i al el em en t s

are: (1 ) th e p ro v id er p erfo rm ed as ag en t serv i ces v al uab l e t o th e reci p i en t; (2 ) ei t h er

at t he req u es t o f t he reci p i en t o r k n o wi ng l y accep t e d b y t h e reci p ien t ; (3 ) t h e

reci pi en t’ s recei p t o f w h ich wi t h o u t co m p en s at in g t h e p ro v i d er wo ul d be u n ju s t ; an d

(4 ) p ro v id er’ s ex p ect at i o n o f c o m p en sat i o n at t h e ti m e of ren d i t i o n o f s erv i ces .”

(Ci t at i o n o m i t t ed .) H

o ll i f i el d v. Mo n t e V

i s ta B i b li ca l G a r d e n s

, 2 5 1 Ga. A p p

. 1 2 4,

1 2 8 -1 2 9 (2 ) (a) (5 5 3 SE2 d 6 62 ) (2 00 1 ).

Th e co n cep t o f u n

ju s t en ri ch m en t i n l aw i s p rem i s ed u p o n t h e p ri n ci pl e

t h at a p art y ca n no t i n d u ce, accep t

, o r en co u rag e an ot h er to fu rn is h o r

ren d er s o m et h i n g o f v al u e t o s u ch p art y an d av o i d p ay m en t fo r t h e v al ue

recei v ed ; o t h erwi s e th e p art y h as b een u n ju s t l y en ri ch ed at t h e ex p en s e

o f an o th er an d

, i n fai rn es s an d g oo d co ns ci en ce, m u s t rei m b u rs e th e

o t h er t o t h e ex ten t o f t h e v al u e co nferred

.

Rei d l i n g v. Ho l co m b

, 2 2 5 Ga. Ap p

. 2 2 9, 2 3 2 (2 ) (4 8 3 SE2 d 6 2 4 ) (1 9 9 7). Ag ai n

, t h ere

h as b een n o s h o wi n g t h at M o o n o r M ajo rs M an ag em en t h as b een u n ju s t ly en ri ch ed

19o r p ro v i ded wi t h an y th i n g req u i ri n g rep ay m en t t o Pri ce. Th e in v en to ry i n q u es t i o n

was s ol d t o An w ar, n ot M ajo rs M an ag em en t o r M o o n, an d Pri ce ret ai n ed n o s ecu ri t y

i n t eres t

. An d

, ag ai n

, t h e p ro m is e o n w h i ch Pri ce at t em p ts t o rel y was m ad e aft er t h e

i n v en t ory in t hi s cas e h ad al read y been s o l d t o An war, an d

, t o t h e ex t en t t hat P r i c e

rel i es o n M o o n ’ s st at em en t t o Ch au d ry en co u rag i n g th e co n t i n u ed s al e o f i n v en t o ry

t o An w ar, t h at en co u rag em en t rel at ed t o fu t u re s al es , n o t t h e o nes at i s su e h ere.

(i ii ) Mo n ey h a d a n d r ecei ved : A cl ai m fo r m o n ey h ad an d recei v ed “ is fo u n d ed

o n th e eq u i t ab l e p ri nci p l e t h at n o o ne o u g ht t o u n ju s tl y en ri ch h i m s el f at t h e ex p en s e

o f an o t h er[.] ” (Ci t at i on an d fo o tn o t e o m i t t ed .) Ti me In s

. Co

. v. Fu l t on -DeKa l b Ho s p.

Au t h

. , 2 1 1 Ga. Ap p. 3 4

, 3 5 (1 ) (4 3 8 SE2 d 14 9 ) (1 9 93 ). “ An act i o n fo r m o n ey h ad an d

recei v ed i s m erel y o n e fo rm o f act i o n t o reco v er d am ag es b as ed on u n ju s t

en ri ch m en t .” Na t. Ci t

y Ba n k o f Ro me v. Bu s b i n

, 1 75 Ga. A p p

. 1 03

, 1 0 8 (6 ) (3 3 2 SE2 d

6 7 8 ) (1 9 85 ). Fu rt h er, i n o rd er to p rev ai l o n a cl ai m fo r m o n ey h ad an d recei v ed

, t h e

p l ai n t i ff m

u s t b e t h e “ t ru e o wn er” o f t h e m o n ey

. To l s o n Fi rm, LLC v. S i s t r u n k , 3 3 8

Ga. Ap p

. 2 5, 2 6 (1 ) (7 8 9 SE2 d 2 6 5 ) (2 0 1 6 ). Becau s e Pri ce i s an u n s ecu red cred i t o r,

Pri ce i s n o l o n ger t he “ t ru e o wn e r ” o f t h e i n v en t o ry al read y s o l d t o An war. See

OCGA § 1 1 -2 -4 0 1 (2 ) (“ [u ] nl es s o t h erwi s e ex pl i ci t l y ag reed t i t l e p as s es t o t h e b u y er

at t h e t i m e an d p l ace at wh i c h t h e s e l l er co m p l et es hi s o r h er p erfo rm an ce wi th

20referen ce t o th e p h y s i cal d el i v ery o f t h e g o od s ”). Th erefo re, i n ad d i t i o n t o t h e o t h er

reas on s wh y Pri ce has fai l ed t o es t ab l i s h u nju st en ri ch m en t i n g en eral , t h i s s p eci fi c

cl ai m i s u n t en ab l e an d can n o t wi t h s t an d t h e s u m m ary ju d g m en t s t an d ard

.

(i v) W it h reg ard t o a co n s t ru ct i v e t ru s t , OCGA § 5 3 -1 2 -1 3 2 (a) pro v i d es t h at

i t i s

, “ a t ru s t i m

p l i ed wh en ev er t h e ci rcu m s t an ces a r e s u ch th at t h e p ers o n h o l d i n g

l eg a l t i tl e t o p ro p ert y

, ei t h er fro m fra u d o r o t h e rwi s e, can n o t en jo y th e b en efi ci al

i n t eres t i n t h e p r o p e r t y w i t ho u t v io l at in g s o m e es t ab l i s h ed p ri n ci p l e of eq u i t y .”

(Em p h as i s s u p p l i ed .). In es sen ce, “ [a] co n s t ru ct i v e tru s t i s an eq u i t ab l e rem ed y

i m p o s ed b y a co u rt t o p rev en t u n ju st en ri ch m en t

. ” Ci ty o

f A tl a n t a v. Ho t el

s

. co m, L.P.

,

3 3 2 Ga. Ap p

. 88 8

, 8 92 (2 ) (b ) (7 7 5 SE2 d 2 7 6 ) (2 0 1 5 )

. A s d e t ai l ed ab o v e, Pri ce’ s

co n ten t i o n s o n wh i ch h e s u p p o rt s h i s c o n s t r u ct i v e t ru s t cl ai m – n am el y frau d,

co n sp i racy

, an d u n

ju s t en ri ch m en t

– fai l. In ad d i t io n

, Pri ce d i d n o t ret ai n t i t l e t o t h e

i n v en t o ry aft er i t w as s o l d to A n war, an d Pri ce h ad n o s ecu ri t y i n t eres t i n t he g o o d s

.

See OCGA § 1 1 -2 -4 0 1 (2 ). As s u ch

, Pri ce’ s co n s t ru ct iv e t ru s t cl ai m i s u n ten ab l e. Id

.

An d

, i n an y ev en t

, Pri ce’ s co n s t ru ct iv e t ru s t cl ai m i s al so prem is ed o n an

u n en fo rceab l e p ro m i s e wh i ch v i o lat ed t h e St at u t e o f Frau d s

.

(c) Co n ver

s i o n : Pri ce arg u es t h at Mo on an d M ajo rs M an ag em en t co n v ert ed i t s

i n v en t o ry

. “ To m ak e ou t a p ri m a faci e cas e fo r reco v ery i n an act i o n fo r dam ag es fo r

21co n vers io n o f p ers o n al p ro p ert y

, t h e p l ai n t iff m u st s h o w ti t l e t o t h e p r o p er t y

,

p o s s es s i o n b y t he defen d an t

, dem an d fo r p o s s e s s io n

, an d refu s al to s u rren d er t h e

p ro p ert y

, o r an act u al co n v ers i o n pri o r t o t h e fi l i n g o f t h e su i t .” (Em p h as i s s u p p l i ed .)

At l a n t i c Co a s t Li n e R. Co

. v. McRee

, 1 2 Ga. Ap p

. 1 3 7 (7 6 SE 10 5 7 ) (1 9 1 3 ). Ev en i f

we as su m e M ajo rs M an ag em en t an d M o o n ex erci sed do m i n i o n o ver t h e i n v en t o ry

,

i t i s u n d i s p u t ed t h at Pri ce d id n o t h av e a s ecu ri t y i n t eres t i n t h o s e go o ds

, an d

, at t h e

t i m e of t h i s act i o n

, it can n o t b e sai d t h at Pri ce h o l d s ti t le i n t h e i n v en t o ry

. See OCGA

§ 11 -2 -4 0 1 (2 ). See, e.g

., Leven s o n v. W o r d

, 2 94 G a. A p p. 1 0 4

, 1 0 6 -1 0 7 (1 ) (6 6 8

SE2 d 7 6 3 ) (2 0 0 8 ) (d efen d an t en t i t l ed t o s um m ary ju d g m en t b ecau s e ev id en ce d i d n ot

s h o w t h at t h e pro p ert y

al l eg ed l y co nv ert ed b el on g ed t o p l ai n ti ff). In t h e ab s en ce o f

ev i d en ce o f l eg al t it l e t o t h e i n v en t o ry , Pri ce’ s cl ai m fai ls

. Id

.

3

. In ad d i t io n t o al l o f t h e cl ai m s ab ov e, Pri ce al s o co nt en d s t h a t M o o n an d

M ajo rs M an ag em en t s ho u l d b e fo u n d l i ab l e o n th e b as is o f h o ri zo n t al v ei l p i erci n g,

rel y i n g o n Co b r a 4 En t er

p r i s es v. Po wel l-Newma n

, 3 3 6 Ga. Ap p. 6 0 9 (7 85 SE2 d 5 5 6 )

(2 0 1 6). 1 7 Bu t , as t h at cas e reco g n i zes :

1 7 Pri ce p ri m ari l y b a s e s t h i s cl ai m o n th e arg u m en t t h at

, b ecau s e M ajo rs

M an ag em en t p o o l e d m o n ey fro m th e co n v en i en ce s to res i n to t h e M ajo rs Po ol

Acco u n t wi t h o u t an y es cro w ag reem en t

, M ajo rs M an ag em en t s h o u l d b e co n s i d ered

an al t er eg o o f al l o f t h e o p erat i n g LLCs an d h el d res p o n s i b l e fo r t h ei r d eb t s

.

22Geo rg i a co u rt s hav e n ever a p p l i ed th e al t er eg o do ct ri n e t o i m p o s e

l i ab i l i t y i n t h i s m an n er. M o reo v er, o t h er co u rt s th at h av e co n s i d ered t h i s

i s su e h av e refu s ed to i m

p o s e l i ab i l i t y i n su ch ci rcu m s t an ces

. See, e.g

., Ma d i s o n Co un t

y Co mmu n ica t i on s Di s t

. v. Ce n t u r yLi n k, In c.

, C V –12–J–1768–NE, 2 0 1 2 W L 6 6 8 5 6 72

, * 4 (N.D.Al a.2 01 2 ) (fi n di n g n o

g ro u n d s to p ierce t h e v ei l b et ween s i b l i n g co m p an i es u n d er A l ab am a

l a w b ecau s e t h ere was n o ev i d en ce t hat on e co rp o rat i o n co m p l et el y

d o m i n at ed an d co n t ro l l ed t h e o th er); Mi n n o v. Pr o

– F ab

, In c.

, 1 2 1 Oh i o

St .3 d 46 4

, 4 6 8 (9 0 5 NE2 d 6 1 3 ) (2 0 09 ) (“ [A] p l ai n t iff can n o t p i erce th e

v ei l o f o n e co rp orat i o n t o [i m p o s e l i ab i l i t y ] o n i t s s is t er co rp o rat i o n .”).

(Em p h as i s s u p p l i ed .) Id

. at 6 1 4 (2 ). W e d ecl i n e t o accep t Pri ce’ s i n v i t at i on b o th to

i n co rp o rat e t h e d o ct ri n e o f h o ri zo n t al v ei l p i erci n g i n t o Geo rg i a ju ri s p ru d en ce an d to

u s e i t t o i m

po s e l i ab i li t y o n M o o n an d M ajo rs M an ag em en t (a h i g h l y d u bi o us res u l t

,

i n an y ev en t ).

4

. Becau s e t h e t ri al co u rt p ro p erl y g ran ted s u m m ary ju d g m en t o n al l of Pri ce’ s

cl ai m s ag ai n s t M o o n an d M ajo rs M an ag em en t

, Pri ce’ s cl ai m fo r at t o rn ey fees u n d er

OCGA § 1 3 -6 -1 1 was al s o ap p ro p ri at el y d i s p os ed o f b y

s u m m ary ju d g m en t

.

5

. Th erefo re, fo r al l o f t h e reas on s s et fo r t h a b o ve, t h e t ri al co u rt p ro p erl y

g ran t ed s u m

m ary ju d g m en t i n fav o r o f Mo o n an d Majo rs M an ag em en t fo r al l cl ai m s

b ro u gh t b y

Pri ce.

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

, P. J., a n d

Pi p ki n, J., co n cu r

.

23