FI FTH DI VI SI ON

M CFA DDEN, C. J.

, R I CKM A N, P. J.

, and SENI OR A PPELLA TE JUDGE PHI PPS

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

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C O U R T. A LL FILIN G S M U ST B E S U B M I TTE D WITH IN

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.

June 25, 2021



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A2 1 A0 32 0

. W OODRUM

, e t al

. v

. G EORGIA FARM BUREAU

M UTUAL INSURANCE COM PANY.

R I C K M A N , Pres i d i n g J u d g e.

In t h e s eco n d ap p earan ce o f t h i s cas e b efo re o u r Co u rt

, W i l li am E. W o o d ru m

,

J r. an d Kat h y S. W o o d ru m ap p eal t h e t ri al co u rt ’ s g ran t o f s u m m a ry j u d gm en t to

Geo rg i a Farm Bu reau M u tu al In s u ran ce Co m p an y o n t h ei r b reach o f co n tract cl ai m

i n wh i ch t h ey

s eek co m

pen s at i o n fo r d im in ut i o n i n v al u e. Th e W o o d ru m s co n t en d,

i n t er al i a, t h a t t h e t ri al co urt erred i n g ran t in g s u m m ary ju d g m en t b ecau s e g en u i n e

i s su es o f m at eri al fact rem ai n as t o wh et h er d i m i n u t i o n in v al u e was as ses s ed as p art

o f t he ap p rai s al p ro ces s an d i n cl u d ed i n t h e ap p rai s al award

. Fo r reas o n s t h at fo l l o w,

we rev ers e.“ On ap p eal fro m t h e g ran t o f su m m ary ju d g m en t

, th i s Co u rt co nd u ct s a d e n o v o

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

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

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

n o n m o v i n g p art y

, warran t ju d g m en t as a m at t er o f l aw.” (Ci t at i o n an d pu n ct u at i o n

o m it t ed .) Cl i n e v. Al l

s t a t e Pr o p e r t y & C a s

. I n s

. , 3 5 4 Ga. Ap p

. 4 15

, 41 5 (8 4 1 SE2 d

6 3 ) (2 0 2 0 ). In o u r p ri o r ap p eal

, we s et o u t t h e fact s i n th at l i gh t as wel l as t h e p ri o r

p ro ced ural h i s t o ry :

[D] u ri n g a t h u nd ers t orm

o n J u l y 5

, 2 0 1 2, a l arg e t ree fel l o n t o t he ro o f

o f W i l l i am an d Kat hy W oo d ru m ’ s h ou s e, cau s i n g si g n i fi can t d am ag e t o

t h e h o u se. Th e n ex t d ay

, t h e W o o d ru m s rep o rt ed t h e d am ag e t o t h ei r

i n s u rer, Geo rg i a Farm Bu reau Mu t u al In s u ran ce Co m p an y

. On

No v em b er 7, 2 0 1 2

, aft er t h e W o o d ru m s an d Geo rg i a Farm Bu reau were

u n ab l e t o ag ree up o n t h e am ou n t o f t h e l os s

, t he W o o d ru m s in v o k ed th e

ap p rai s al cl au s e o f t h e i n s u ran ce p o l i cy . Th at cl au s e p ro v i d ed :

If y o u [, th e W o o d ru m s ,] an d we[, Geo rg ia Farm Bu reau ,] f a i l t o ag ree

o n t h e am ou n t o f l o s s

, ei t h er m ay d em an d i n wri ti n g an ap p rai s al o f th e

l o s s

. In t h i s ev en t

, each p art y wi l l ch o o s e a co m p et en t ap p rai s er wi t h i n

2 0 d a ys aft er recei v i ng a wri t t en req u es t fro m th e o t h er. T h e t wo

ap p rai s ers wi l l ch oo s e an u m p i re. If t hey

can n o t ag ree u p o n an u m p i re

wi t h in 1 5 d ay s

, y ou o r we m ay req u es t t h at t h e ch o ice be m ad e b y a

j u d g e o f a c o u rt o f reco rd i n th e s t at e wh ere t h e res i den ce p rem i s es i s

l o cat ed

. Th e ap p rai s ers wi l l s ep arat el y set t h e am o u n t o f t h e l o s s

. If th e

2ap p rai s e rs s u b m i t a wri tt en rep o rt of an ag reem en t t o u s, th e am o u n t

a g r e e d up o n wi l l b e th e am o u n t o f l o s s. If t hey fai l t o ag ree, t h ey wi l l

s u b m i t t h ei r d i fferen ces t o t h e u m pi re. A d eci s i o n ag reed t o b y an y t wo

wi l l s et t h e am o u n t o f l o s s

.

(Pu n ct u at io n o m i t t e d

. ) On Feb ru ary 5

, 2 0 1 3

, p u rs u an t t o t h e ap p rai s al

p ro ces s

, an award was i s s u ed an d ag reed to b y t h e W o o d ru m s ’ ap p rai s er

an d t h e ap p o in t ed u m

p i re. Geo rg i a Fa r m Bu reau m ad e p ay m en t o f th e

award t o t h e W o o d ru m s

.

Th e W oo d ru m s s u bs eq u en t l y b ro u g h t s u i t a g a inst G e o r gia Farm Bu reau

,

s eek in g co m

p en s at i o n fo r d i m i n u t io n i n v al u e. Th e co m p l ai nt i ncl u d ed

co u n t s fo r b reach o f co n t ract an d b reach o f an i m p l i ed d u t y o f go o d fai t h

an d fai r deal i n g. Th e b reach o f co n t ract cl ai m was b as ed o n al l eg at i o n s

t h at t h e fal l en t ree h ad cau s ed a crack in t h e s l ab fo u n d at i o n o f th e

h o u s e, t h at t h e v al u e o f t h e h ou s e w a s d i m i n i sh ed b y th e crack ed

f o u n d a t i o n

, t h at s u ch d im i n i s h ed v al u e was a co v ered l o s s u n der th e

p o l i cy t h at w as n o t i ncl u d ed i n t h e a p p r a is al award

, an d t hat Geo rg i a

Farm Bu reau h ad fai l ed t o p ay fo r t hat d i m i n i s hed v al u e. In s u p p o rt o f

t h e c l a i m

, t he W o o d ru m s fi l ed th e affi d av it o f Geo rg e Hal l

, th e

co n t ract o r wh o h ad rep ai red t he W o od ru m s ’ h o u s e an d w h o op i ned t hat

t h e v al u e o f t h e h o u s e was d i m i n i s h ed b y t h e fo u n dat i on b ei n g crack ed

.

Du ri n g a s u b s eq u en t d ep o si t io n

, Hal l g av e hi s op i n i on t h at t he h o u s e

h ad l o s t 2 5 p ercen t o f i t s v al u e d u e t o t h e crack ed fo u n d at i on

.

Geo rg i a Farm Bu reau fi l ed a m o ti o n t o ex cl u d e H al l as an ex p ert wi t n es s

an d a m o t i o n fo r s um m ary ju d g m en t

. On M arch 2 4

, 2 0 1 7

, t h e t ri al co u rt

3en t ered an o rd er g ran t in g t h e m o t i o n t o ex cl u d e Hal l’ s t es ti m o n y as an

ex p ert reg ard i n g t h e d im i n u t i o n i n v al ue o f t h e W o o dru m s ’ p ro p ert y

. In

t h at s am e o rd er, t he t ri al co u rt a l s o ex cl ud ed Hal l ’ s t es t i m o n y as a l ay

wi t n es s g i v i n g an o pi n i o n as to v al u e. On th at s am e d at e, t h e tri al co u rt

i s su ed a s ep arat e o rd er g ran t in g t h e i n s u ran ce co m p an y ’ s m o t i on fo r

s u m m ary ju d g m en t o n b ot h o f th e W o od ru m s ’ cl ai m s

. As t o t h e b reach

o f co nt ract cl ai m

, t h e co u rt fo u n d t h at wi t h o u t Hal l ’ s ex cl u d ed

t es t i m o n y

, t h ere was n o o t h er ev i d en ce t h at t h e d i m in u t i o n i n val u e o f

t h e p ro p ert y was n ot i ncl u d ed i n t h e am o u nt o f l o s s d et erm i n ed u nd er

t h e ap p rai s al cl au s e. As t o t h e cl ai m fo r b reach o f i m p l i ed du t y o f g o o d

f a i t h an d fai r d eal i n g

, t he co u rt fo u n d t h at i t co u l d n ot be m ai n t ai n e d

b ecau s e t here i s no s u ch i n d ep en d en t cau s e o f act i o n ap art fro m th e

b reach o f co n t ract cl ai m

, w h i ch h ad al read y b een d i s p o s ed o f o n

s u m m ary ju d g m en t

.

W o o d r u m v. Geo r

gi a Fa r m B u r ea u Mu t

. In s. Co

. , 34 7 Ga. Ap p

. 8 9

, 8 9 -9 0 (8 1 5 SE2 d

6 5 0 ) (2 0 1 8 ) (“ W

o o d r u m I ”).

In W o o d r u m I

, we h el d t h at t h e t ri al co u rt ab u s ed i ts d i s cret i o n i n fi nd i n g t h at

Hal l co u l d n o t o ffer h i s o p in i o n o f v al ue as a lay wi t n es s an d rev ers ed t h e t ri al co urt ’ s

o r d e r e x c l u d in g t h at t es t i m o n y

. Id

. at 9 3 -9 4 (1 ) (b ). Bas ed o n t h at h o ld i n g

, we al s o

rev ers ed t h e g ran t o f s u m m ary ju d g m en t on t h e breach of co n t ract cl ai m becau s e we

co n cl u d ed t h at “ t h ere i s, co n t rary t o t h e t ri al co u rt ’ s fi n d i n g

, s om e ev i d en ce creat i n g

4a g en u i ne i s s u e o f m at eri al fact as t o t h e d i m i n i s h ed v al u e o f th e h o u s e.” Id

. at 9 4 (2 )

(a).

W h en t h e cas e ret urn ed t o t h e t ri al co u rt

, Geo rg ia Farm Bu reau fi led a ren ewed

m o ti o n fo r s u m

m ary j u d gm en t b as ed o n t h e ex i s t i n g reco rd

. In t h at m o t io n

, Geo rg i a

Farm Bu reau as s ert ed t h at t h e ap p rai s al award co n s t i t u t ed fu l l an d fi n al p ay m en t o f

t h e l o ss

, i n cl u d i ng an y d im i nu t i o n in v al u e. Th e t ri al co urt g ran t ed t h e m o t i o n o n t h at

g ro u nd , an d t h e W o o d ru m s ap p eal

.

1

. I n i t i al l y

, t he W o o dru m s co n t en d t h at t h e t ri al co u rt v i o lat ed W o o d r u m I

,

wh i ch t h ey arg u e i m

p l ici t l y d i rect ed t h e t ri al co urt t h at s u m m ary ju dg m en t was n ot

ap p ro p ri at e i n t h i s cas e.

U n d er t he law o f th e cas e do ct ri n e, “ an y ru l i n g b y th e Su prem e Co u rt o r t h e

Co u rt of Ap p eal s i n a cas e s hal l b e b i n d i ng in al l s ub s eq u en t p ro ceed i n g s i n t h at cas e

i n t h e l ower co urt an d i n t h e Su p rem e Co urt o r t h e Co u rt o f Ap p eal s as t h e cas e m ay

b e.” OCGA § 9 -1 1 -6 0 (h ). “ Bu t t h e d o ct ri n e ap p l ies o n l y t o act u al d eci s i o n s , n o t t o

i s su es rai s ed b u t n ev er ru led u p o n

. ” (Ci t at i on an d p u n ct u at i o n o m i tt ed

. ) S o ver ei g n

Hea lt h ca r e v. Ma r i n er Hea l t h Ca r e Mg mt

. , 3 2 9 Ga. Ap p. 7 8 2

, 7 8 5 (1 ) (a) (7 6 6 SE2 d

1 7 2 ) (2 0 14 ); s ee al so H

i cks v. M cGee

, 2 8 9 Ga. 5 7 3, 5 79 (2 ) (7 1 3 SE2 d 8 4 1 ) (2 0 1 1 )

(l aw o f t h e cas e ru l e d o es n o t en co m p as s an “ i m

p l i ed ” ru l i n g ); Cu r r i d v. DeKa l b S t a t e

5Co u r t Pr o b a t i o n Dep t

. , 2 8 5 Ga. 1 8 4

, 1 86

, n .5 (6 7 4 SE2 d 8 9 4 ) (2 0 0 9 ) (ru l e d o es n ot

ap p ly wi t h o u t a n e x p r es s ru l i n g o n t h e i s s u e). In W oo d r u m I

, we co n cl u d ed t h at

s u m m ary ju d gm en t was n o t ap p ro p ri at e o n th e b reach of co nt ract cl ai m b ecau s e t h ere

was s o m e ev i den ce o f d i m i n u t i o n i n v al u e, b u t we d i d n o t d et erm i n e w h et h er

d i m i n u ti o n i n v al u e was as s es sed as p art o f t h e ap p r a i s al p ro ces s

. Th u s

, we d i d n ot

ru l e o n t h e i s s u e p res en t ed h ere, an d t h e l aw o f t h e cas e ru l e di d no t p recl u d e t h e t ri al

co u rt fro m

ad d res si n g i t . See S

over ei g n Hea l t h ca r e , 3 2 9 Ga. Ap p . at 7 8 5 (1 ) (a).

2

. Th e W o o d ru m s n ex t co n t en d t h at g en u i ne i s s u es o f m at eri al fact rem ai n as

t o wh et h er d i m i n u t i o n i n v al u e was as s es s ed as p art o f th e ap p rai sal p ro ces s en g ag ed

i n b y t h e p art i es

.

Su m m a r y j u d g m en t i s p ro p er “ i f t h e pl ead i n gs

, d ep o s i ti o n s

, an s wers to

i n t erro g at o ri es

, an d ad m i s s io ns o n fi le, to g et h er wi t h t he affi d av i t s

, i f an y

, s h o w t h at

t h ere i s no g en u i n e i s s u e as t o an y m at eri al fact an d t h at t h e m o v i n g p art y i s en t i t l ed

t o a ju d g m en t as a m at t er o f l aw.” OCGA § 9 -1 1-5 6 (c).

Th u s

, t o p rev ai l o n a m o t i o n fo r s u m m ary ju dg m en t, t h e m o v in g p art y

m u s t d em o n s t rat e t h at t h ere i s n o g en u i n e i s su e o f m at eri al fact s o t hat

t h e p art y is en t i t l ed t o ju d g m en t as a m at t er o f l aw. A d efen d an t m ay d o

t h i s b y ei th er p res en ti n g ev i d en ce n eg at i n g an es s en t ial el em en t o f th e

p l ai n t i ff’ s cl ai m s or es t ab l i s h i n g fro m t h e reco rd an ab s en ce o f ev i d en ce

t o s u p p o rt s u ch cl ai m s

.

6(Ci t at i o n s a n d p u n c t u at io n o m i t t ed .) Co wa r t v. W id en er

, 2 8 7 Ga. 6 2 2

, 6 2 3 (1 ) (a)

(6 9 7 SE2 d 7 7 9 ) (2 0 1 0 ).

It is u n d i s p u t e d t h at an ap p rai s al award was i s s u ed fo r t h e am o u n t o f l o ss

d es cri b ed as “ Co v erag e A-Dwel l i n g ,” an d t h at t h e ap p rai s er fo r t h e W o o d ru m s an d

t h e ap p o i n t ed u m

p i re ag reed t o t h e award

. T h e ap p rai sal award i n cl u d ed a fi g u re fo r

“ Am ou n t o f l o s s / Rep l acem en t Co s t Val u e” an d a fi g u re fo r “ A ct u al Cas h Val u e,” b ut

d i d n o t i t em i ze t h e am o u nt s award ed an y fu rt h er o r m en ti o n d im i n u t i o n i n v al u e. 1

Th e i s su e o f t h e am o un t o f l o s s

, i n cl u d i n g an y p o ten t i al d i m i n u t i o n i n v al u e o f

t h e p ro p ert y

, can b e s et t l ed b y t h e ap p rai s al p ro ces s

. See M cGo wa n v. Pr o g r e s s i v e

Pr ef er r ed In s

. Co

. , 2 8 1 Ga. 1 69

, 1 7 1 -1 7 2 (6 3 7 SE 2 d 2 7 ) ( 2 0 0 6 ). 2 An d an award

i s su ed as a res u l t o f t h at p ro ces s i s b i n d i n g o n t h e p art i es as t o t h e am o u n t o f l o ss

1 W e n o t e t h at t h e q ues t i on o f w h et h er d i m i n u t i o n i n v al u e o ccu rred h ere, ev en

aft er rep ai rs h ad b een m ad e, i s o n e o f fact

. Th e p art ies are b ou n d b y ou r p rev i ou s

d et erm i n at i o n t h at t h ere i s at l eas t s o m e ev i d en ce creat in g a g en u in e is s u e o f m at eri al

fact as t o t h e d i m i n is h ed val u e o f t h e h o u s e

. S e e W o o d ru m

, 3 4 7 Ga. Ap p

. at 9 4 (2 )

(a); s ee al s o S t a te Fa r m M u t

. Au t o

. In s

. Co

. v. Ma b r y

, 2 7 4 Ga. 49 8

, 5 0 5 (4 ) (5 5 6

SE2 d 1 1 4 ) (2 00 1) (m eas u re o f d am ag es fo r d im in u t i o n i n v al u e i s “ t h e d i fferen ce

b et ween p re-l o s s v al u e an d p o s t -rep ai r v al u e”).

2 As Geo rg ia Farm Bu reau p o i n t s ou t

, “ an ap p rai s al cl au se can o n l y res o l ve a

d i s p u t ed i s su e o f v al u e. It can n o t b e i n vo k ed t o res o l v e b ro ad er i s s ues o f l i ab i l i t y .”

McGo wa n

, 2 8 1 Ga. 1 6 9 at 1 7 2

. Acco rd i n g l y

, t o th e ex t en t th at Geo rg i a Farm Bu reau

ch al l en g es i t s l i ab i l i t y fo r l o s s as s o ci at ed wi t h d i m i n ut i o n i n v al u e

, t h e a p p rai s al

cl au s e can n o t b e i n v ok ed t o res o l v e t h at i s s u e.

7u n l es s t h e award i s s et as i de. See S o u t h er n G en

. In s

. Co

. v. Ken t

, 18 7 Ga. Ap p

. 4 9 6,

4 9 7 (1 ) (3 7 0 SE2 d 6 63 ) (1 9 8 8 ).

Th e ap p rai s al award i ss u ed h ere d o es n o t in d i cat e t h at an y p o t en t i al d i m i n u t i o n

i n v al ue was as s es s e d a n d al t h o u g h t h e W o o d ru m s h av e n o t p o i n t ed t o an y

req u i rem en t t h at t h e ap p rai s al award be i t em ized

, s ee B el l v. Li b er t y Mu t

. Fi r e In s

.

Co

. , 3 1 9 Ga. Ap p

. 30 2

, 3 0 5 (1 ) (a) (7 3 4 SE2 d 8 9 4 ) (2 0 12 ), we can n o t as s u m e t h at

t h i s s ep arat e cat eg o ry of l o s s was i ncl u d ed i n t h e award wi t h o u t ev i d en ce t o s u p p o rt

t h at as s u m

p t i o n

. Geo rg i a Farm Bu reau h as n o t p oi n t ed t o an y ev i d e n c e t h at t h e

ap p rai s al award i n cl u d ed d am ag es fo r d i m i n u t i o n i n v al u e o r t h at d i m in u t i o n i n v al u e

was as ses s ed d u ri ng t h e ap prai s al p ro ces s

. No r h as o u r rev i ew o f t h e reco rd rev eal ed

an y s u ch ev i d en ce. A cco rd i n g l y

, b as ed o n t h e ex is t i n g reco rd

, t h e tri al co u rt erred in

g ran t i n g s u m

m ary ju d g m en t t o Geo rg ia Farm Bu reau on th e b reach of co n t ract cl ai m

o n t he g ro u n d th at t h e ap p rai s al award co ns t i t u ted fu l l an d fi n al p ay m en t o f t h e l o s s

,

i n cl u d i n g an y

d i m i n u t i o n i n v al u e. 3

3 T o t h e ex t en t t h at Geo rg i a F a r m Bu reau co n t en d s t h at t h e W o o d ru m s were

req u i red t o s u b m i t a s ep arat e cl ai m fo r d i m i n u ti o n i n v al u e, we no t e t h at i f t h e p o l i cy

d o e s n o t r e q u i re t h e i n s u red t o as s ert a ri g h t t o reco v er an y p art i cu l ar el em en t o f

d am ag e, “ i t s t an d s t o reas on t h at t h e p o li cy d o es n o t req u i re a s ep arat e cl ai m fo r

d i m i n u ti o n i n v al u e.” Ma b r y

, 2 7 4 Ga. at 5 0 8 (4 ).

83

. Fi n al l y

, t h e W o o d ru m s co n ten d t h at i f t hei r b reach o f c o n t ract cl ai m i s

rei n s tat ed

, i t wi l l s up p o rt t h ei r b reach o f t h e i m p li ed d u t y o f g o o d fai th an d fai r

d eal i ng cl ai m an d t h at i t wo u l d t h erefo re b e erro r t o g ran t s u m m ary ju d g m en t o n t h e

l at t er cl ai m

.

Al t h ou g h t h e tri al c o u r t d i d n o t ad d res s t h i s i s s u e i n i t s o rd er, t h e co u rt d id

g ran t Geo rg ia Farm Bu reau ’ s ren ewed m o t i o n fo r s um m ary ju d g m en t

, wh i ch s o u g ht

s u m m ary ju d gm en t o n th e W o o d ru m s ’ cl ai m s fo r b reach o f co n tract an d breach o f t h e

i m p l i ed d u t y o f g o o d fai t h an d fai r d eal in g

. Acco rd in g ly

, as s tat ed i n W o o d r u m I

, t h e

t ri al co u rt ’ s “ g ran t o f s u m m ary ju d g m en t a s t o t h e b reach of i m p l ied d u t y cl ai m

,

p rem i s ed o n an erro n eo u s g ran t o f su m m ary ju d g m en t o n t h e b reach o f co n t ract cl ai m

,

m u st al s o b e rev ers ed .” W

o od r u m , 3 4 7 Ga. Ap p . at 9 5 (2 ) (b ).

Ju d g men t r ever

sed

. McFa d

d en

, C. J., an d S

en i o r Ap p el la t e Ju d

g e Her b er t E.

Ph i p ps co n cu r

.

9