SECOND DI VI SI ON

BROWN,

GOSS and HODGES, 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

M ar ch 11, 2019



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A1 8 A2 01 2

. LALONDE v

. TAYLOR E NGLISH D UM A, LLP et al

. GS-0 7 4

A1 8 A2 01 3

. TAYLOR E NGLISH DUM A

, LLP et al

. v. LALONDE. GS-0 7 5

G O S S , J u d g e.

Th es e ap p eal s st em fro m t h e tri al co urt ’ s g ran t o f s u m m ary ju d g m en t t o t h e l aw

fi rm T ay l o r En g li s h Du m a, LLP an d on e o f i t s part n ers

, M i ch ael H. Tro tt er, i n a l eg al

m al p ract i ce act i on

. Th ei r cl i en t was en g in eer an d m ed i cal d ev i ce i n v en t o r M i c h a e l

Lal o n d e. Lal o n d e s u ed h i s fo rm er at t o rn ey s

, arg u i ng t h at t h ey b reach ed t h e s t an d ard

o f care b y d raft i n g a co n t ract wh i ch p erm i t t ed t h e i n v es t o r an d m ajo ri t y o w n er o f a

co m p an y i n wh i ch Lal o n d e h el d a m i n o ri ty s h a r e t o u ni l at eral l y d i s s o l v e t h e

co m p an y

, d am ag i n g Lal on d e fi n an ci al l y

. 1 In Cas e No

. A 1 8 A2 0 1 2

, Lal o nd e arg u es

1 Lal o n d e al s o s u ed Tay l o r En g l is h at t o rn ey Aaro n Ko wan

, wh o was d i s m i s s ed

wi t h p reju d i ce, b y

co n s en t , an d i s n o t p art y t o t h i s ap p eal

.t h at t he t ri al co u rt erred in g ran t i n g s u m m ary ju d g m en t to t h e defen d an t s. In Cas e No

.

A1 8 A2 01 3

, Tay l o r En g l i s h an d Tro t t er arg u e t h at t h e t ri al co u rt erred i n den y i n g t h ei r

m o ti o n s to ex cl u de ex p ert t e s t i m o n y

. Th e cas es are co n so l i d at ed fo r ou r rev i ew.

Fi n d in g n o erro r i n Cas e No

. A1 8 A2 0 1 2

, we affi rm

. W e d i sm i s s as m o o t t he ap p eal

i n Cas e No . A1 8 A2 0 13

.

Ca s e No . A1 8 A2 0 1 2

1

. In a m u lt i -p art en u m erat io n

, Lal o n d e arg u es t h at t he t ri al c o u r t e rred in

g ran t i n g s u m

m ary ju d gm en t t o Tay l o r En g li s h an d Tro t t er.

W e co n d u ct a d e n o v o rev i ew o f a t ri al co u rt ’ s gran t o r d en i al o f a m ot i o n fo r

s u m m ary ju d g m en t t o d et erm i n e wh et h er an y g en u i n e i s s ue o f m at eri al fact ex i s t s an d

wh et h er th e m o v i n g p art y i s en t i t l e d t o ju d g m en t as a m at t er of l aw. W e vi ew t h e

ev i d en ce an d reas o nab l e i n feren ces d rawn fro m i t i n fav o r o f t he n o n m o v i n g p art y

.

Co wa r t v. W

i d en er

, 2 8 7 Ga. 6 2 2 , 6 2 3 (1 ) (a) (6 9 7 SE2 d 7 7 9 ) (2 0 10 ).

So v i ewed

, t he ev i d en ce s h o ws t h at Lal o n de i n v en t ed sm al l

, p o rt ab l e,

co n ti n u o us p o si t i ve ai rway p res s u re (“ CPAP”) d ev i ces d es i g n ed t o treat s leep ap n ea.

Lal o n d e p ro vi d ed h i s CPAP t ech n o l o g y an d rel at ed p at en ts t o a Del aware l i m i t ed

l i a b i l i t y co m

p an y

, cal l ed Des h u m M ed i cal

, LLC, i n ex ch an g e fo r a o n e-t hi rd

o wn ers hi p i n t eres t i n Des h u m

. Th e co n t ri b u t i n g m em bers o f Des h um were Lal o n de,

2as i n ven t o r; an d PBM Cap i t al In v es t m en t s

, LLC, wi t h p r e s i d en t Pau l M an n i n g

, as

i n v es t o r. PBM ag reed t o p ro v i d e $ 5 m i l l i o n t o D es h u m in ret u rn fo r a m ajo ri t y

, two

t h i rd s o wn ers h i p i n t eres t i n t h e co m p an y

.

Lal o n d e ret ai n ed T ro t t er an d h i s f i r m

, Tay l o r En gl i s h

, an d t hey d raft ed t h e

Des hu m Op erat i n g Ag reem en t an d rel at ed d o cu m en t s p u t t i n g t o g et h er t h e b u s i n es s

d eal b et ween Lal o nd e a n d P B M

. Lal o nd e arg u es o n ap p eal t h at t h ro ug h o u t t h e

p ro ces s o f craft i n g th e Op erat i n g Ag reem en t, h e t o l d h i s l awy ers t h at h e wan t ed h i s

o wn ers hi p ri g h t s pro tect ed

. Un d er th e Op erat i n g Ag reem en t

, Des hu m ’ s in i t i al t h reem em b er Bo ard of M an ag ers co n s i s t ed o f M an n i n g an d Sean St al fo rt fro m PBM

, an d

Lal o n d e. Th e Op erat i n g Ag reem en t

, as ex ecu t ed

, p ro v i d ed th at “ [n ] o t wi t h s t an d i n g

an y t h i n g t o t h e co n t rary

, co n tai n ed i n t h i s Art i cl e

. . . o r an y o th er t erm or p ro v i s i o n

o f t h is A g reem en t,” un d er § 6 .0 3, n ei th er th e Bo a r d

, n o r an y m an ag er, co u ld

u n d ert ak e v ari o us act i o n s wi t h o u t t h e c o n s en t o f a “ Su p er M ajo ri t y o f t h e Bo ard ,”

w h i c h at t h at p o i n t i n t im e m ean t al l t hree m an ag ers

. Ho w ev er, al t h o u g h t h e

Op erat i n g Ag reem en t at § 6 .0 3 (g ) p ro v i d ed t h at a Su per M ajo ri ty o f t h e Bo ard was

n eed ed to d i s s o lv e t h e co m p an y

, i t al s o p r o v i d ed at § 1 1 .0 1 t h at Des hu m co u l d b e

d i s s o l v ed u n d er an y o n e o f t h ree s cen ari os : “ (a) th e d eci s io n of t h e Bo ard in i t s s o l e

d i s cret i o n ; (b ) t h e el ect i o n o f t h e Mem b ers h o l d i n g a Req u i red In t eres t

, o r (c) t h e

3en t ry of a fi n al d ecree o f ju d i ci al d i s s o l u t i o n[.] ” (Em p has i s s up p l i ed .) Th e Op erat i n g

Ag reem en t d efi n es “ M em b ers ” h o l d i n g a “ Req u i red In t eres t ” as t h o s e o wn i n g m o re

t h an 5 0 percen t o f t h e “ i ss u ed an d o u t s t an di n g Un i t s o f t h e Co m p an y .” Lal o n d e h el d

ab o ut o n e-t h i rd o f t h e u n i ts , an d PBM h el d t h e rem ai n i n g t wo -t h i rd s

.

On J an u ary 2 2

, 2 0 1 3

, fo l lo wi n g d i s p u t es bet ween Lal on d e an d Man n i n g

, PBM

fi red Lal o n d e. On M arch 20

, 2 01 3

, t h e Bo ard m eet i n g m i n u tes s t at e t h at at a s p eci al

m eet i n g o f wh ich Lal o n d e was n o ti fi ed b u t d i d n o t at t en d

, M an n i n g an n o u n ced t h at

PBM ’ s $ 5 m i l l i o n i nv es t m en t h ad b een al m o s t ex h au s t ed b ecau se t h e CPAP d ev i ce,

wh i ch was s u p p o s ed t o h av e b een in t h e fi n al s t ag es o f dev el o p m en t acco rd i n g to

Lal o n d e’ s r e pr e se nta tions, w a s not in w ork ab l e fo rm an d n eed ed fu rt h er d ev el o p m en t

.

M an n i n g s ai d t h at i t was “ h i g h l y u n l i k el y ” t h at PBM wo u l d i nv es t m ore m o ney i n t h e

d ev ice b e c a u s e b y Feb ru ary 2 0 1 3

, ab o u t $ 4 .3 m i l l i o n o f t h e $ 5 m i l li o n al read y h ad

b een s p en t

, an d th e rem ai n i n g m o n ey wo u l d ru n o ut i n a few week s

. Des h um Bo ard

m i n u t es av erred t h at $ 4

. 8 m i l l i o n h ad b een s p en t b y t he en d o f Ap ri l 2 0 1 3

, an d t h at

t h e co m p an y wo u l d ru n o u t o f m o n ey b y t h e en d o f M ay 2 0 1 3. Lal o n d e, b y co n t ras t

,

co n ten d s t hat o n ce PBM real i zed t h a t FDA ap p ro v al o f t he CPAP d ev i ce was

i m m i n en t, PBM b eg an t ry i n g t o fo rce h i m o u t

.

4PBM is s u ed a l et t er o f d i s s o l u t i o n fo r Des hu m u n d er § 1 1 .0 1 o f t h e Op erat i n g

Ag reem en t i n Ap ri l 2 0 1 3

, s t at i n g t h at t h e co m p an y “ wi l l so o n h av e e x h a u s t e d i t s

cap i t al res erv es an d t h at

, u n d er p res en t ci rcu m s t an ces

, i t i s n o t p os s ib l e fo r [Des h u m ]

t o rai s e ad di ti o n al cap i t al .” As o ut l i n ed ab o v e, § 1 1

. 0 1

, o p t i o n (b ), pro v i d ed fo r

d i s s o l u t i on o f t h e co m

p an y b y v o t e o f u n i t h o l d ers h o l d i n g a “ Req u i red In teres t ,” t h at

i s

, m o re t h an 5 0 p ercen t o f th e co m p an y ’ s o u t s t an d i n g u n i t s

, an d Lal o n d e h el d o n l y

a m in o ri t y i n teres t

. In M ay 2 0 1 3

, t h e Des h u m Bo ard

, wi t h Lal o n d e p art i ci p at i n g b y

t el ep ho n e an d di s sen t i ng

, v o t ed t h at up o n d i s s o l u t i on

, t h e co m p an y ’ s as s et s wo u ld

b e d i s t ri b u t ed “ i n k i n d ” t o Des h u m m em bers b as ed u po n th ei r fract i o n al ri g h t s u n d er

t h e O p erat i n g Ag reem en t

. Th e Bo ard

, ag ai n wi t h La l o n d e d i s s en t i n g

, ad o p t ed a

d i s s o l u t i on p l an o n Au g u s t 2 2

, 2 0 1 3

, an d rem ai n i n g as set s were t ran s ferred o n o r

ab o ut t h at d ay t o Hu m an Des i g n M ed i cal

, L L C (“ HDM ”). HDM was o w n ed b y PBM

an d T h e P a u l B. M an n i n g 19 9 9 Irrev o cab le Tru st s. M an n in g was HDM ’ s ch i ef

ex ecu t i v e o ffi cer. HDM t h en b eg an m ark et i n g t h e CPAP d ev i ce, acq u i red tw o fo rei g n

co m p an i es wi t h m ark et i n g cap ab i l i t y

, an d l at er s o l d t h e co m pan i es an d d ev i ces to

an o th er fo rei g n co m

p an y

.

In 2 0 1 5, Lal o n d e fi l ed t he i n s t an t laws ui t ag ai n st Tro t t er an d Tay l o r En g l is h,

arg u i n g t h at th ey co m

m i t ted l e g al m al p ract i ce i n draft i n g an O p erat i ng A g reem en t

5wh i ch al l o wed PBM to d i ss o l v e Des h u m un i lat eral l y

, t h us i n ju ri ng Lal o n d e

f i na nc ia lly

. T r otte r a nd T a

y lor E ng l i s h m o v ed fo r su m m ary ju dg m en t

, arg u i n g, am ong

o t h er t h i ng s

, t h at t h e at to rn ey s b reach ed n o d u t y t o L a l o n de an d t h at Lal on d e was

u n ab le t o p ro v e cau s at i o n

. Th e t ri al co urt g ran t ed th ei r m o t i o n

. In s o d o i ng

, i t rel i ed

u p o n t he Geo rg i a l eg al m al p ract i ce s t an d ard , as d o es t h i s Co u rt :

In a l eg al m al p ract i ce act i o n

, t h e p l ai nt i ff m u s t es t ab l i s h t h ree el em en t s :

(1 ) em p l o y m en t o f th e d efen d an t at t o rn ey

, (2 ) fai l u re o f t h e at t o rn ey t o

ex erci s e o rd i n ary care, s k i l l an d di l i g en ce, an d (3 ) t h at s u ch n eg l i g en ce

was th e p ro x im at e cau s e o f d am ag e t o t h e pl ai n t i ff. W i t h res pect t o th e

‘ ord i n ary care, s ki l l an d d i l i g e n c e ’ el em en t

, th e l aw i m p o s es u p o n

p ers on s perf

o rm in g pro fes s i o n al serv i ces t h e d ut y to ex erci s e a

reas o n ab l e d eg ree o f s i l l an d care, as d et er mi n ed b y t h e d eg r ee o f s ki l l

a n d ca r e o r d in ar i l

y emp l o yed b y t h ei r r es

pect i ve p r o

f es s i o n s u n d

er

s i m i la r co n di t i o n s a n d

l i ke s u r r o u nd i ng

ci r cu ms t a n ces

.

(Ci t at i o n s an d p u n ct u at i o n o m i t t ed ; em p h as i s in o ri g i n al .) Al len v. Lef ko f f

, Du n ca n,

Gr i mes & Der mer

, P. C.

, 2 6 5 G a. 37 4

, 3 75 (2 ) (a) (4 5 3 SE2 d 7 1 9) (1 9 9 5 ). Th e p art i es

d o n o t d i s p u t e t h e fi rs t el em en t o f t h e s t an d ard , an d we n eed n o t ad d res s i t.

Co n trary t o Lal o n d e’ s as s ert i o ns o n ap p eal

, t h e t ri a l co u rt sp eci fi cal l y s t at ed

t h at i t “ do es n o t h o l d t h at D efen d a n t s v i o l a ted t h ei r s t an d ard o f care.” (Em p h as i s

s u p p li ed .) Rat h er, th e t ri al co u rt fo u n d th at brea c h o f t h e s t an dard of care an d

6cau s at i o n are s ep arat e in qu i ri es

, ci t i n g Ro g er s v. No rvel l

, 1 7 4 G a. Ap p

. 4 53

, 4 5 7 -4 5 8

(2 ) (3 3 0 SE2 d 3 9 2 ) (1 9 8 5 ). 2 Th e t ri al co urt es s en t i al l y p ret erm it t ed an y fi n di n g as to

at t o rn ey m al p ract i ce, an d i n s t ead d et erm i n ed t h at Lal o n d e “ ha s not show n, a nd c an n ot

u p h o l d hi s b urd en t o s h o w, t hat [Tay l o r En gl i s h an d Tro tt er] w e r e t h e p ro x i m at e

cau s e of h i s d am ag es an d

, t h erefo re, h i s l eg al m al p ract i ce cl ai m fai l s as a m at t er o f

l aw.” Lal o n d e fi led t he i n st an t ap p eal fro m t h at o rd er. W e fi n d n o erro r.

1

. Lal o n d e arg u es t h at t he t ri al co u rt erred i n g ran ti n g s u m m a r y ju d g m en t to

Tro t t er an d Tay l o r En gl is h by fi n di n g t h at L al o n d e b ro k e t h e ch ai n o f cau s at i o n an d

wai v ed h i s cl ai m s ag ai n st h i s fo rm er co u n s el b y s et t l in g a l a w s u i t h e fi l ed in

Del aware Ch an cery Co u rt ag ai n s t PBM an d Des h um

.

Lal o n d e’ s Del aware Ch an cery Co u r t p e t i t i o n i s d at ed M ay 2 1

, 2 01 3

, 3 aft er

Des hu m i s s u ed l et t ers o f d i s s o l u t i o n i n Ap ri l 2 0 1 3

, b u t b efo re t h e co m p an y h ad

a c t u a l l y d i s s o lv ed

. Lal o n d e d i d n ot s eek t o s t o p t he d i ss o l u t io n i n Ch an cery co u rt

.

Rat h er, an d s i g n i fi can tl y

, he al s o s o u g h t d i s so l u t i on

. H o wev er, h e s ou g ht ju d i ci al

d i s s o l u t i on i ns tead o f t h e m ajo ri t y u n i t ho l der d i s s o l u ti o n t h at PBM h ad i n it i at ed

. A

2 Ro g er s

, s u p ra, o ri g i n al l y was p h y s i cal p reced en t

, b u t as reco g n i z e d in

Ma u l d i n v. W

ei n s t o ck

, 2 01 Ga. Ap p

. 5 1 4

, 5 18 (4 ) (4 1 1 SE2 d 37 0 ) (1 9 9 1 ), i t h as b een

ci t ed wi t h ap p ro v al an d ap p ro v ed i n a l i n e o f s u b s eq u en t cas es

.

3 Th e reco rd d o es n ot ap pear t o co n t ai n a fi l e-s tam p ed co p y o f t h e p et i t i o n

.

7fi nal d ecree o f ju d i ci al di s so l u t i o n i s on e o f t h e m et ho d s fo r wh i ch t h e Op erat i n g

Ag reem en t p ro v i d es u n d er § 1 1 .0 1 , o p t i o n (c).

In t h e pet i t i o n

, L al o nd e arg u ed t h at PBM h ad v i o l at ed t h e Op erat i n g

Ag reem en t an d h i s em

p l o y m e n t ag reem en t, an d t h at b ecau se of an i m o s i t y an d

p en di n g l i t i g at i o n

, 4 “ t h e [m ] an ag ers are u n ab l e t o carry o u t t h e b u s i n e s s o f t h e

[c] o m p an y .” In h i s cau s e o f act i o n fo r ju d i ci al d i s s ol u t i o n, L al o n d e al l eg ed t h at “ [i ] t

i s n o t reas o n ab l y p ract i cab l e fo r Des h u m t o co n t i nu e t o o p erat e i n acco rd an ce wi th

t h e Op erat i n g Ag reem en t [,] ” an d “ Des h um l ack s t h e fi n an ci al m ean s to co n t i n u e in

o p e r a t i o n

. PBM is u n wi l l in g t o i n v es t an y ad d it i on al fu n d s

. . . an d t h e PBM

M an ag ers h av e d et erm in ed t h at Des h um w i l l b e un ab l e t o fi n d t h i rd -p art y i n v es t o rs

. . . b as ed i n p art o n t h e al l eg at i o n s m ad e b y PBM i n i t s l aws u i t ag ai ns t Lal o n d e.”

In No vem

b er 2 0 1 3

, h o w ev er, Lal o n de en t ered in t o a s et t l em en t an d rel eas e

wi t h PBM , HDM , an d Des h u m . He recei v ed $ 3 1 0 ,0 0 0 an d t he di s m i s s al o f t h e t wo

l aws u i t s PBM an d Des h u m h ad fi l ed ag ai n s t h im i n ex ch an g e fo r h i s d i s m i s s al o f t h e

Del aware s u it

, an d h i s ag reem en t n o t t o s ue D es h u m

, PBM

, an d rel at ed p art i es

. Of t h e

4 As Lal o nd e o u t l i n ed i n t h e Del aware act i o n

, PBM h ad s u ed h i m i n fed eral

co u rt i n Vi rg i n ia fo r, am o ng o t h er t h i n g s

, frau d an d Secu ri t i e s an d E xch an g e Act

v i o l at i o n s; an d h ad al s o s u ed h i m i n a V i r g i n i a ci rcu i t co u rt fo r b reach o f h i s

em pl o y m en t ag reem en t.

8o v eral l $ 3 1 0

, 0 0 0 s et t l em en t, Lal o n d e w as p ai d $ 14 0 ,0 0 0 “ as co n s i d erat i o n fo r t h e

s al e o f h i s m em

b ers h i p i n t eres t s i n De s h u m

, a l o n g term cap i t al as s et [,] ” an d

$ 1 7 0 ,0 0 0 fo r ex p en se rei m b u rs em en t

, wi t h $ 8 0,0 0 0 o f t hat pai d d i rect l y t o Lal o n d e’ s

at t o rn ey in t h e D el aware act i o n fo r l eg al fees

. Lal o n d e al s o g ran t ed HDM u n res t ri ct ed

l i cen si n g fo r “ an y t ech n o l o g y

, i nfo rm at i o n

, i n ven t i o n o r id ea” rel at ed t o, am o n g o t h er

t h i n g s , h i s CPAP p hy s i cal d ev i ces , l ab o rat ory p ro t o t y p es , o r act u al p ro d u ct s

.

Th e t ri al co u rt i n t h e i ns t an t cas e fo u n d t hat i n s et t l i n g t h e Del aware act i o n,

Lal o n d e s ev ered t h e p ro x i m at e cau s at io n b et ween h is cl ai m ed d am ag es an d an y

n eg li g en ce o n t h e p art o f h i s l awy ers b ecau s e hi s cl ai m s ag ai ns t Des h u m an d PBM

were s ti l l v i ab l e wh en h e s et tl ed

, an d b ecau s e i t was p os s ib l e t h at fu rt her l i t i g at i o n

wo u l d h av e y i el d ed a fav o rab l e res u l t . W e fi n d n o erro r.

To p rev ai l in a l eg al m al p ract i ce cl ai m

, “ t h e al l eg ed n eg l i g en ce of t h e at t o rn ey

m u st b e t h e p ro x i m at e cau se o f t h e d am ag e to t h e cl i en t .” (Ci t at io n o m i t t ed .) Ro g er s

,

1 7 4 G a. A p p

. at 45 7 (2 ). B y s et t l i n g a cl ai m t h at is v iab l e, d es p i t e t h e at t o rn ey ’ s

al l eg ed n eg l i g en ce, t h e cl ien t s ev ers p ro x i m at e cau se b ecau s e i t i s i m p o s s i b l e fo r t h e

cl ai m

, t h ro u gh an u n derl y i n g l aws ui t , t o t erm i n at e i n t h e cl i en t ’ s fav o r. Ji m Ti d wel l

Fo r d, In c. v. Ba s hu k

, 3 3 5 Ga. Ap p

. 6 6 8

, 67 0 -6 7 1 (1 ) (7 8 2 SE2 d 72 1 ) (2 0 1 6 ) (cl i en t ’ s

s et t l em en t o f s l i p -an d -fal l cas e, b efo re v i ab l e ap p eal had been bri efed i n t h at s l i p -an d

9fal l act i o n

, p recl u ded fi n d i n g o f p ro x i m at e c a use r e quir e d t o s u pp o rt l eg al m al p ract i ce

act i on ). “ A cl ai m i s co n si d ered ‘ v i ab l e’ i f fu rt h er l i t i g at i o n of t h at cl ai m ma y l ead to

a fav orab l e res u l t as o f t h e t im e p ri o r co u ns el w as d i s m i s s ed fro m t h e cas e.” (Ci t at i o n

an d p u n ct u at i o n o m i t t ed ; em p h as i s s u p p l i ed .) Id

. at 6 7 0 (1 ). Acco rd Ro g er s

, 1 7 4 Ga.

A p p

. at 45 7 (2 ) (wh ere “ t h e un d erl y i n g act i on rem ai n s pen d in g

, p l ai n ti ff can p ro v e

n o s u ch i n

ju ry b ecau s e t h e act i o n m ay t erm i n at e fav o rab l y fo r t h e cl ien t ”) (ci t at i on s

an d p u n ct u at i o n o m i t t ed ).

As Lal o n d e p o i n t s o ut

, u n l i k e t h e i n s t an t ap p eal

, al m o s t al l t h e l eg al

m al p ract i c e c a s e s u p o n w h i ch t he t ri al co u rt rel i es

– an d i nd eed wh i ch ex i s t in

Geo rg i a cas e l aw

– i n v o l ve a cl i en t ’ s al l eg at io n t h at co u n s el m al pract i c e d in

u n d erl y i n g l i t i g at io n

, fo l l o wed b y t h e cl i en t s et t l i n g t h at s am e l i ti g at i o n b efo re a

ju d g e o r ju ry ren d ers a d eci s i o n

. In t h e i n s t an t cas e, t h ere was n o u n d erl y in g l i t i g at i o n

ab o ut t h e Op erat i n g Ag reem en t / p en d i n g dissolution w he n L a londe f ile d t h e D el aware

act i on

. He arg u es t h at h e fi l ed t h e Del aware act i o n b ecau se he b el i ev ed h i s at t o rn ey s

h ad m al pract iced in d raft i n g t h e Op erat i n g Ag reem en t

. Im p o rt an t l y

, h o wev er, h e d id

n o t fi le s u i t t o s to p t he d i ss o l u t i o n

. Rat h e r

, h i s l aws u i t a ls o s o u g h t t o d i s s o l v e t h e

co m p an y

, al bei t vi a a d i fferen t l eg al m et h od o lo g y

, an d i n h i s v eri fi ed pet i t i o n

, h e

10s t at ed t h a t D e s h u m co ul d no t co n t i n u e to ex i st b ecau se o f fi n an ci al p ro b l em s an d

m an ag er i n fi g h t in g

.

In at t em pt i n g to arg u e t h at t h is s et t l em en t d o es n o t s ev er cau s at i o n

, Lal o n d e

t ri es t o d i s t i n g u i s h o u r p reced en t b y rel y i n g al m o s t ex cl u s i v el y u p o n t h e rat i o n al e in

a n o n -b i n d i n g

, u n p u b l i s h ed o rd er fro m a fed eral t ri al co u rt

. See Po l s i n el l i P. C. v.

Gen es i s Bi o sci en ces

, In c

., 2 0 1 6 W L7 3 6 5 2 0 0 (N. D. Ga. Ord er, d eci d ed J an u ary 2 6,

2 0 1 6 ). In Po l

s i n el l i

, aft er a l aw fi rm s u ed i t s cl i en t fo r u n pai d l eg al b i l l s

, t h e cl i en t

co u nt ercl ai m ed fo r l eg al m al p ract i ce. Th e cl i en t co nt en d ed t h at

, am o n g o th er t h i n g s

,

t h e fi rm n eg l i gen t l y d raft ed a s t o ck p u rch as e ag reem en t an d rel at ed acq u i s i t i o n

d o cu m en t s i n a d eal wh ere t he cl i en t b ou g h t a co rp o rat i on an d ferm en t at i o n t an k s

. Id

.

at * 1 -* 2 (I) (A) an d * 3 (III). Di s p u t es aro s e, h o wev er, an d t h e s el l er s u ed th e cl i en t

,

wh o was t h e b u y er; i n a sep arat e act i o n

, t h e c l i en t s u ed t h e s el l er. T h e cl i en t

u l t i m at el y s et t l ed b o t h s u i t s

. Id

. at * 2 (I) (A). Th e law fi rm m o ved fo r s u m m ary

ju d g m en t o n t h e cl i en t ’ s m al pract i ce co u n t ercl ai m

, i d

. at * 2 (I) (B), arg u i n g t h at t h e

s et t l em en t s b ro k e t h e cau s al ch ai n b et ween t he al l eg ed m al pract ice an d an y d am ag es

.

Id . at * 4 (IV).

Th e cl i en t s arg u ed th at Po l s i n el li ’ s m al p ract i ce cau s ed t h e l i t i g at i o n t h ey

u l t i m at el y s et t l ed

, an d as k ed fo r d am ag es in cl u d i n g t he at t o rn ey fees ari si ng fro m t h at

11l i ti g at i o n an d in cu rred “ lo n g befo re s et tl i n g t h e Geo rg i a cas es .” Id

. Th e fed eral t ri al

co u rt d en i ed s um m ary ju d g m en t t o t h e l aw fi rm

, fi n d i n g t hat an act o ccu rri n g aft e r

t h e cl i en t s u s t ai n ed d am ag e s can n o t h av e ret ro act i vel y s ev ered cau s at i o n

, i d

., an d

fo u n d th at “ n o t h in g s u g ge sts [ the c lie n t s ] in an y way v o l u n tari l y s ub ject ed t h em s el v es

t o an y d am ag es t h at m ay h av e b een cau s ed b y Po ls in el l i ’ s n eg l i g en ce.” Id

. at * 5 (IV).

Th e Po l s i n el l i co u rt fo u n d t h a t ” [e] v en as s u m i n g [t h e cl i en t ] wo u l d h av e u l t i m at el y

p rev ai l ed o n t h ei r cl ai m s ag ai n s t t h e [s ] el l ers i n t h e Geo rg i a l aws u i t s

, th e [cl i en t was ]

n ev ert h el es s dam ag ed b y hav i n g t o l i t i g a t e i n t h e fi rs t p l ace.” Id

. at *6 (IV) (em p h as i s

s u p p li ed ).

(a) Da ma g es f

r o m t h e d is s o l u t i o n o

f Des h u m

. In t h e i n s t an t cas e, L al o n d e i s

p ri m ari l y

, t h o u g h no t ex cl u si v el y

, s eek i n g d am ag es f r o m t h e d i s s o l u t i on o f t h e

co m p an y rat h er t h an fro m “ h av i n g t o l i t i g a t e i n t h e fi rs t p l ace.” Id

. He s o u g ht

d i s so l u ti o n

, o n h i s o wn t erm s b y fi l i n g t h e D el aware l aws u i t b efo re t h e co m p an y

act u al l y was d i ss o l v ed

. He arg u ed i n h i s v eri fi ed pet i t i on fo r d i s s o l u t i o n t h at Des h u m

l ack ed t h e fi n an ci al res o u rces t o co n t i n u e an d co ul d n o t f i n d t h ird -p art y i n v es t o rs

b as ed

, b l am i n g t h i s i n

ju ry

, in p art

, o n a laws u i t PBM h ad fi l ed ag ai n s t Lal o n d e b efo re

ei t h er p art y s o u g h t d i ss o l u t i o n. Al t h o u g h Lal o n d e arg ued a nu m b er o f d am ag es

cl ai m s bel o w, o n ap p eal

, h e rei t erat ed d am a g e s c l a i m s o n l y as lo s t b u s i n es s

12o p p o rt u ni t i es res u lt i n g fro m t h e d i ss o l u t i o n o f Des h um

, as w el l as t hree o t h er cl ai m s

,

as wi l l b e ex p l ai n ed m ore fu ll y i n Di v i s i o n 1 (b ), (c) an d (d ), b el o w. W e b eg i n wi th

h i s arg u m en t t hat h e i s s eek i n g o n e-t hi rd o f th e lo s t b u si n es s o p po rt u n i ti es s t em m i n g

fro m Des h um ’ s d i s s o l u t i o n wi t h o u t h i s co n sen t

.

Ou r o wn p reced en t p ro v i d es m o re o n -p o i n t g u id a nc e on L al o n d e’ s cl ai m i n t h i s

p art i cu l ar s et o f fact s t han d o es Po l s i n el li

. In Ma u l d i n

, 2 0 1 Ga. Ap p

. 5 1 4

, s u p ra, t h e

p l ai n t i ff-cl i en t was term i nat ed b y h i s em p l o y er an d h i r e d a n a t t o rn ey t o fi l e an

“ ap p eal fo r i n v es t i g at i o n ” fro m t h at t erm i n at i o n

. Th e at t o rn ey fi l ed t h e d o cu m en t

, b ut

t h e p o s tm ark was u n cl ear an d t h e em p l o y er co n cl u d ed i t was u nt i m el y

. Id

. at 5 1 5 -5 1 6.

Th e ad m i n i s t rat i v e b o a r d t as k ed wi t h d et erm in i n g w h et h er th e fi l i n g w as t i m el y

a d jo u r n e d wi t h o u t d o i n g s o, i d

. at 5 1 5 -5 1 6, an d t h e qu es t io n o f wh et h er t h e

em pl o y er’ s d eci si o n as t o t i m el i n es s was l eg al l y co rrect was n ev er an s wered an d t h e

c l i en t n ev er p u rs u ed a d eci s i o n

. Id

. at 5 1 8 (4 ). Th e cl i en t s ued t h e l awy er fo r

m al p ract i ce o v er t h e al l eg ed m i s s ed fi l i n g d ead l i n e, an d we affi rm ed a g ran t o f

s u m m ary ju d g m en t t o t h e at t orn ey

. In d oi ng s o

, t h i s Co u rt fo u n d t hat becau s e “ o n e

o f t h e neces sary el em en t s i n a s u i t fo r l eg a l m al p ract i ce i s pro o f t h at t h e at t o rn ey ’ s

n eg li g en ce p ro x im at el y cau s ed t h e cl i en t ’ s d am ag es

, an d [t h e cl i en t] h a s n eg a t ed t h at

el emen t b y hi s el ect i o n no t t o p u r s u e i n dep en d

en t j u d ici a l a ct i o n ag ai n s t [t h e

13em

pl o y er] t o res o l v e t h e i s s u e o f [t h e d am ag e t he cl i en t cl ai m s h i s at t o rn ey cau s ed ]

,

t h e g ran t o f s u m m a ry ju dg m en t was co rrect .” (Ci t at i o n an d p u nct u at i o n o m i t t ed ;

em ph as i s i n o ri g i nal an d em p h as i s s u p p l i ed ). Id

.

Th e p os tu re of t h e c a s e i n t h e i n s t an t ap p eal

, wh i l e n o t i d en t i cal t o Ma u l d i n

,

i s an al og o u s i n t h at Lal o n d e h ad v i ab l e cl ai m s

, i n cl u d i n g b ut n o t l i m i t ed t o h i s

al l eg at i o n s i n t h e Del aware act io n

, b ut h e “ el ect ed n o t t o pu rs u e i n d ep en d en t ju d i ci al

act i on [.] ” Ma u l d i n

, 2 0 1 Ga. Ap p

. at 5 1 8 (4 ). 5 L al o n d e’ s o wn l eg al m al p ract i ce ex p ert

,

Pat ri ck J o n es

, d ep o s ed t h at t he Op erat i n g Ag reem en t was

, i n p art s, am b i gu o u s an d

t h at t h e i n t erp ret at i o n o f th o s e am bi g u i t ies wo u l d b e a m at t er o f l a w fo r a co u rt

. If

Lal o n d e had ch o s en t o co n t i n u e t o li t i g at e, rat h er th an to s et t l e, an d i f h e had wo n

, “ i t

wo u l d h av e b een in d i s pu t ab l e t h at t h e m al p ract i ce d i d n ot cau s e” h i s d am ag es

. See

Po l s i n el l i

, 2 0 1 6W L7 3 6 5 20 0 at * 6

. Ji m Ti d wel l F or d

, 33 5 Ga. Ap p

. at 6 7 0-6 7 1 (1 )

(cl i en t ’ s s et t l em en t o f s l i p -an d -fal l cas e, b efo re vi ab l e ap p e a l h a d b een b ri efed

,

p recl u d ed fi nd in g o f p ro x im at e cau s e req u i red t o s u p p o rt l eg al m al p ract i ce act i o n ).

5 Th e t ri al co u rt ’ s deci s io n i n t h e i n s tan t cas e i s no t m erel y li m i ted to i s s u es

rel at ed t o t h e ret u rn of L a l o n d e ’s c a p i t al co n t ri b u ti o n, wh i ch i s n o t at i s su e i n t h i s

ap p eal

, bu t e n c o m

p a s s es “ al l th e co n s eq u en ces as s o ci at ed wi t h t he di s t ri b u t i o n to

HDM ” an d

, as t h e t ri al co u rt fo u n d

, i n th e set t lem en t

, Lal o n d e “ w a s p a i d fo r h i s

i n t eres t in Des hu m

. If h e b el i ev ed h e was no t g et t i n g t he v al u e o f D es h u m ’ s co rp o rat e

o p p o rt u ni t i es , h e h ad t he l i ti g at i o n t o p urs u e t h at cl ai m .”

14Si m i l a r l y, i n R o g er s

, s u p ra, t he pl ai n t i ffs were i n ju red in an au t o m o b i l e

acci den t an d ret ai n ed an at t o rn ey t o s u e t h e ot h er d ri v er. R o g er s

, 1 7 4 G a. Ap p

. at 4 5 3.

Th e pl ai n t i ffs u l t i m at el y d i s ch arg ed t h at at to rn ey

, a n d h i red an ot h er l awy er, wh o

s et t l ed t h ei r l aws u it

. Th e p l a in t i ffs t h en s u ed t h ei r fi rs t l awy er fo r m al p ract i ce,

arg u i n g t h at h e fai led t o fi l e th ei r a c t i o n w i t hi n t he s tat u t e o f li m i tat i o n

. Id

. at 4 5 5.

Th i s Co u rt u p h el d a g ran t o f su m m ary ju d g m en t t o t h e fi rs t at t o rn ey

, fi n d i n g t h at at

t h e t i m e t h e p l ai nt iffs s et t l ed

, t h ey h ad a v iab l e cl ai m i n a Geo rg i a co u rt

, an d t h at t h ey

co u ld al so po t en t i al ly h av e fi l ed s u i t i n Fl o ri da. Id

. at 4 58 (2 ). Th e Ro g er s co u rt t hu s

fo u n d t h at “ t h e p ro x i m at e cau s e o f p l ai n ti ffs ’ po t en t i al l o s s was n o t t h e act i o n s o f [t h e

l awy er] b u t t h ei r v ol un t ary s et t l em en t wi t h th e t o rt feas or’ s i n s u ran ce carri er.” Id

. at

4 5 8 ( 2 )

. In t h e in st an t act i o n

, Lal o n d e s ev ered p ro x i m at e cau s e i n t hat

, b efo re

Des hu m was d i ss ol v ed

, h e fi l ed s u i t

– a l s o s eeki n g t o d i s s o l ve D e s h u m

– a n d t h en

e l e ct ed no t t o pu rs u e h i s v iab l e cl ai m s an d s et t l ed t he Del aware act i o n

. W e fi n d n o

erro r.

(b ) Th e l o s s of t h e f a i r ma r ket va l u e o

f La l o n d e’s i n ven t i o n

. As an “ al t ern at i v e

cau s e o f act i o n ” t o h i s cl ai m fo r d am ag es st em m i n g fro m t h e di s s ol u t i o n o f Des h u m

,

Lal o n d e s eek s t h e l os s o f t h e fai r m ark et v al u e o f t h e t ech n o l o gi es h e co n tri b u t ed to

Des hu m

. W e no t e t h at in h i s s et t l em en t wi th PBM

, Lal o n d e g r a n t ed t o HDM an

15i rrev ocab l e, p erp et u al

, ro y al ty -free l i cen s e to u s e o r sel l an y d efi n ed t ech n o l o g y o r

i n v en t i o n o f h i s

, o r an y ph y s i cal d ev i ce, act u al p ro d u ct

, or l ab orat o ry p ro t o t y p e

rel at ed t o s l eep -d i s ord ered b reat h i ng

.

On ap p eal

, L al o n d e arg u es th at t h e t ri al co u rt erred i n no t ad d res si n g t h i s

al t ern at e cl ai m i n i t s o rd er o n s u m m ary ju d g m en t. Becau s e we h av e d et erm i n ed t h at

i n s et t l i n g t he Del a w a r e a c t i o n

, Lal on d e s ev ered t h e cau s at i o n b et ween an y

n eg li g en ce o n t he p art o f hi s at t o rn ey s an d h i s d am ag es

, t h e t ri al co u rt d i d n o t err in

fai l i n g t o ad d res s h i s cl ai m fo r t h e l os s o f t h e fai r m ark et v al u e o f h i s i n v en t i o n

. 6

(c) Th e $ 5 8

, 0 0 0 La l o n d e p a i d Tr o tt er an d Ta

yl o r En g l i s h t o d

r a f t t h e

Op er a t i ng Ag r eemen t

. L a l o n d e a rg u es th at t h e t ri al co u rt erred i n i ts o rd er o n

s u m m ary ju d g m en t b y n o t ad d res s i n g h i s cl ai m fo r t h e $5 8 ,0 0 0 i n at t o rn ey fees h e

p ai d t o Tro t t er an d Tay l o r En g l i s h fo r d raft i n g t h e Op erat i ng Ag reem en t

.

6 W e n o t e t h at Tro t t er an d Tay l o r En g li s h co n t en d t h at Lal o n d e d i d n o t cl ai m

a l o s s o f fai r m ark et v al ue fro m h i s i n v en t i o n b el ow. Al t h o u g h Lal o n d e p o i n t s t o h i s

am en d ed co m

pl ai n t i n an at t em

p t t o s h o w t h at h e d i d s eek l o s s o f fai r m ark et v al u e

b el o w, t h e am en d ed co m p l ai n t i n s t e a d s eek s “ co m p en s at i o n” fo r h i s i n v en t i o n

, h i s

o wn ers hi p i n t eres t i n D es hu m

, an d h is i n v es tm en t

. Lal o n d e hi m s el f ack n o wl ed g es o n

ap p eal t h at

, ev en t h o ug h h e fi l ed an o u t -o f-t i m e m o ti o n fo r s um m ary ju d g m en t o n t h i s

i s su e, t h e t r i a l c o u r t di d n o t ru l e o n t h at m o ti o n an d t h e cl ai m fo r fai r m ark et v al u e

“ was n ot ri p e fo r d eci si o n o n s u m m ary ju d g m en t b y

t h e t ri al co u rt .”

16In s u p p o rt o f h i s arg u m en t o n ap p eal

, Lal o n de ci t es g en eral l y an d wi t h m i n i m al

arg u m en t t o a cas e i n v o l v i ng a cau s e o f act i o n fo r w ro n g fu l p reg n an cy / wro n g fu l

co n cep t io n

, i n wh i ch th e Su p rem e Co u rt fo u n d t h at d am ag es fo r ex pen s es fro m t h e

u n s u cces s fu l m ed i cal p ro ced u re co u l d b e reco v erab l e. Fu l t o n -DeKa l b Ho s p

. Au t h

. v.

Gr a ves

, 2 5 2 Ga. 4 4 1, 4 4 3 (2 ) (3 1 4 SE2 d 6 5 3 ) (1 9 8 4 ). Lal on d e ci t es t o n o au t h o ri t y

o n p o in t reg ard i n g at t orn ey fees s t em m i n g fro m an al l eg at i o n o f l e g a l m al p ract i ce

wh ere, as h ere, t h e t ri al co u rt sp eci fi cal ly s t at ed t hat i t was n o t fi nd i n g t h at Lal o n d e’ s

at t o rn ey s b reach ed t h e s t an d ard o f care. W e fi n d n o erro r.

(d ) Th e $ 8 0 ,0 0 0 l eg a l f

ees p a i d t o La l o n d

e’s a t t o r ney in t he Del a wa r e a ct i o n

.

Lal o n d e rai s es b ri efl y

, b u t d o es n o t en u m erat e as erro r, a cl ai m fo r $ 8 0

, 0 00 i n l eg al

fees pai d t o hi s l awy er i n th e Del aware act io n

. He p res en t s n o real arg u m en t an d n o

ci t at i o n s t o t h e reco rd o r t o l eg al au t h o ri ty

, an d h e d o es n o t s ho w th at t h i s co n t en t i o n

was rai s ed o r ru l e d u p o n b e l o w. W e wi l l no t co n si d er t h is co n t en t i o n

. S h el l ey v.

T o wn e o f Tyr o n e

, 30 2 Ga. 2 97

, 3 0 8 (3 ) (8 0 6 SE2 d 5 3 5 ) (2 0 1 7 ) (n o t ad d res s i n g

m at t ers rai s ed fo r t he fi rs t t i m e o n ap p eal ). Co u rt o f Ap p eal s Ru l e 2 5 (c) (2 ) (i ) (we

wi l l n o t co n s i d er un s up p o rt ed cl ai m s o f erro r). W e n o te al so th at p art o f La l o n d e’ s

s et t l em en t o f th e Del aware Ch an cery Co u rt act i o n i n v o l v ed PBM an d Des h u m ’ s

p ay m en t o f $ 8 0

, 0 0 0 di rect l y t o h i s at t o rn ey

.

172

. In an en u m erat io n w h i ch co n t ai ns n o c i t a t i o n t o l eg al au t h o ri t y

, Lal o n d e

a r g u es t h at t h e tri al co u rt erred i n fi n d in g t h at he can n ot s h o w t h at t h e l awy er s ’

d raft in g o f t h e Op erat i n g Ag reem en t p ro x i m at el y cau s ed hi s d am ag es an d i n fi n d i n g

t h at h e fai l ed to p o in t to a gen u i n e i s s u e o f fact s h o w i n g t h a t PBM a ct u a l l y wo u ld

h a ve si g ned an O p era t i n g A g reem en t co n t ract t h at req u i red Lal o n de’ s co ns en t fo r

d i s s o l u t i on u n d er th e “ Req u i red In t eres t ” p ro v i s i o n an d u nde r the m a j o ri t y u n i t h o l d er

p ro v is i o n o f § 1 1 .0 1.

In S z u r o vy v. Ol d

er ma n

, 2 4 3 Ga. Ap p

. 4 4 9 (5 3 0 SE2 d 7 8 3 ) (2 0 0 0), a cas e in

wh i ch a cl i en t s u ed h er at to rn e ys fo r l eg al m al p ract i ce i n h er d i v o rce s et t l em en t

,

wh i ch d i d n o t co n t ai n an a l i m o n y p ro v i s i o n, i d

. at 44 9 -4 5 0, t h i s Co u rt fo u n d t h at

b ecau s e t h e cl i en t “ fai l ed t o s h ow t h at sh e co u l d h av e n eg o t i at ed a bet t er ag reem en t

o r t h a t s h e wo u l d h av e o b tai n ed b et t er res u l ts at t ri al

, s h e h as fai l ed t o es t ab l i s h

d am ag es an d p ro x i m at e cau s e.” (Fo o t n o t e om i t t ed .) Id

. at 4 5 2

. A s i m i l ar s i t u at i o n i s

p res en t i n t h i s ap p eal

.

It i s cl ear fro m t h e reco rd t h at Lal o n d e an d h is l awy ers at Tay l o r En g l i s h an d

PBM ’ s l awy ers at Bl an k Ro m e, o v er a n um b e r o f m o n t hs

, wen t th ro u g h m an y

n eg ot i at i o n s a n d t rad ed m an y v ers i o n s o f t h e Op erat i ng A g reem en t

. It i s cl ear t h at

p art o f t he neg o ti at i o n s rel at ed t o Su p er M ajo ri t y ap pro v al (i

. e., L al o n d e’ s co n s en t )

18t o v ari o u s act i o n s

, i n cl u d i n g co m pan y d is so l u t i on

, part i cu l arl y in t h e co n t ex t o f §

6 .0 3. In s u p p o rt o f h i s p o s i t i o n

, Lal o n d e po i n t s t o e-m ai l s ab o u t an d v ers io n s o f t h e

co n tract draft as i t ex i s t ed i n l at e Feb ru ary 2 01 1 . Ho wev er, Tay l or E n g l i s h at t o rn ey

Aaro n Ko wan 7 wro t e, i n an e-m ai l

, t h a t Bl an k Ro m e h ad ag reed t o “ mo s t o f m y

req u es t s [.] ” 8 (Em

p h as is s u p p l i ed .) “ M o s t” d o es n o t m ean “ al l .” Draft s o f t h e co n t ract

fro m M arch 2 0 1 1 s t i l l co n t ai n t h e “ Req u i red In t eres t ” d efi n i t i o n t h at ex cl u d ed

Lal o n d e, as a m i no ri t y u n i t h ol der, fro m t h e m ajo ri t y u n i t ho l d er v o t i n g p o wer u n d er

wh i ch PBM d i s s o l v ed Des h u m p u rs u an t t o § 1 1

. 0 1 o f t h e ag reem en t

.

Lal o n d e p o i n t s u s t o n ot h i n g i n d i cat i n g t h at PBM ev er ag reed or wo u l d h av e

ag reed t o ch an g i n g t h e d efi n it i o n o f “ Req u i red In t eres t ” an d /o r t h e wo rd i n g o f

§ 1 1 .0 1

, wh i ch p ro v i d ed fo r t h e al t ern at e m ean s o f di s s o l vi n g t h e co m p an y u n d er

7 As n o t ed i n n . 1 , s up ra, Ko wan i s n o t a p art y t o t he i ns t an t ap p eal

.

8 Al t ho u g h T ro tt er an d T ay l o r En gl i s h al l e g e ge n e r al l y t h at Lal on d e can n o t rel y

o n hears ay s t at em en t s i n t h e e-m ai l s an d m em oran d a h e u s es t o s u p p o rt h i s arg u m en t

i n t h i s en u m erat i on

, t h ey d o n o t s h o w h o w t h ey rai sed or p res erv ed t h i s o b ject i o n

b el o w. OCGA § 2 4 -8 -8 0 2 (“ [I] f a p art y d o es n o t p ro p erl y o b je c t t o h ears ay

, t h e

o b ject i on s h al l be d eem ed wai v ed

, an d t h e h ears ay ev id en ce sh al l b e l eg al ev i d en ce

an d ad m i s s i b l e.”)

19wh i ch PBM act u al l y d i d d i s s o l v e Des h u m t h ro u g h t h e m ajo ri t y u n i t ho l ders ’ v o t e an d

wi t h o u t Lal o n d e’ s co n s en t

. 9

PBM ’ s co rp o rat e rep res en t at i v e an d OCGA § 9 -1 1-3 0 (b ) (6 ) wi t n es s, Ru s sel l

Sch un d l er, d ep o sed t h at w h il e i t was “ i m p os s i b l e t o s p ecu lat e wh at s traw i s g o i n g to

b reak t h e cam el ’ s b ack ” i n t erm s o f wh at PBM wo u ld h av e ag reed t o in n eg o t i at i o n s

,

wh en t h e Op erat i n g Ag reem en t was n eg o t iat ed

, PBM b el i ev e d t h at § 1 1 .0 1 g av e

PBM t h e ri g h t t o d i s so l ve t h e co m p an y

. 1 0 Lal o n d e’ s cl ai m t h u s fai l s as a m at t er o f

l aw, b ecau s e h e can n o t s h o w t hat Tro tt er an d Tay l o r En gl i s h were th e b u t -fo r cau s e

o f h i s d am ag es

, i n t h at t h ere i s n o ev i d en ce t h at h i s at t o rn ey s co u ld h av e g ot t en h i m

a b et t er d eal

, g i v en t h at “ t here is n o ev id en ce t h at [PBM ] wo u l d h av e ag reed t o t erm s

m o re fav orab l e t o [Lal o n d e.] ” M o s er a v. Da vi s

, 3 0 6 Ga. Ap p

. 2 2 6

, 2 3 2 -2 33 (2 ) (7 0 1

9 T o t h e ex t en t t h at § 6.0 3

, § 1 1 .0 1

, an d rel at ed p ro v i s i o n s of t h e O p erat i n g

Ag reem en t co u l d be read as b ei n g i n co n fl ict wi t h on e an o t h er, w e n o t e t h at Lal o n d e

d i d n o t l it i g at e i s s ues o f co n tract i n t erp ret at i o n b el o w, an d t he m at t er i s n o t b efo re u s

s u b s t an t i vel y o n ap p eal

. Fu rt h er, t h e l awy ers ’ v i ews o n § 6.0 3 an d th e p ro t ect i on i t

o ffered t o Lal o n de i s n o t an i nd i cat o r o f wh at PBM wo u l d h av e ag reed t o o r act u al l y

d i d ag ree t o.

1 0 Al t h o u g h Lal o n d e arg u es t h at Sch u n d l er’ s s t at em en t s are h ears ay b ecau s e

h e was n o t em

p l oy ed b y PBM du ri ng t h e co n t ract n eg o t i at i on s

, Lal o n d e, in h i s o wn

earl ier m o t i o n fo r p art i al s u m m ary ju dg m en t

, r e l i ed u p o n t h e s am e st at em en t s wi th

wh i ch h e n o w t ak es i s s u e. He can no t n o w o b ject . See OCGA § 2 4 -8 -8 0 2

.

20SE2 d 8 6 4 ) (2 0 10 ) (u p h o l d i n g g ran t o f s u m m ary ju d g m en t to at t o rn ey s in m al p ract i ce

act i on ).

3

. In l i g h t o f o u r d et erm i n at i o n s i n Di v i s i o n s (1 ) an d (2 ), s u p ra, w e n eed n ot

ad d res s t h e rem ai n i n g co n t en t i o n s o f erro r.

Ca s e No . A1 8

A2 0 1 3

In Cas e No

. A1 8 A 2 0 1 3, Tro t t er an d Tay lo r En g li s h arg u e t h a t t h e tri al co u rt

erred i n d en y i ng th ei r m o t i o n s t o ex cl u d e t h e t es t i m o n y of Lal o n d e’ s ex p ert

wi t n es s e s

. I n l i g h t of ou r d eci s i o n i n Cas e No

. A1 8 A 2 0 1 2

, t h e ap p eal i n Cas e No

.

A1 8 A2 01 3 i s d i sm i s s ed as m o ot

.

Ju d g men t a f f i rmed i n Ca s e No

. A1 8

A2 0 1 2 ; a p pea l d i s mi s sed i n Ca s e N o

.

A1 8 A 2 0 1 3

. Br own , J., a n d Ho d g es , J., co n cu r

.

21