SECOND DI VI SI ON

DOYLE, C. J.

, BA R NES, P. J.

, and BOGGS, J.

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

Jul y 7, 2016



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A1 6 A0 66 3

. W EATHERS et al

. v

. DIENIAHM AR M USIC, LLC et

al

. DO-0 3 0

D O Y LE , Ch ief J ud g e.

In a d i s p u t e i n v ol v i n g a m u s i c p u b l is h i n g b u s i n es s

, E d d i e W eat hers an d h i s

c om pa ny

, A ll- W e a the r

, L L C ( c o lle c tive l y “ W eat h ers ”), s u ed Di en i ah m ar M u s i c, L L C

(“ DM L”), EM I Ap r i l M u s i c

, In c., EM I Bl ack wo o d Mu s i c, In c., 1 W i l li e Cart er, an d

J erm ai n e D. M au l d i n a/ k/ a Jerm ai n e Du p ri (“ M au l d i n ”), al l eg i n g cl ai m s fo r b reach

o f co n tract , frau d, co n v ers i on , b reach o f fi d u ci ary d u t y

, to rt i ou s i nt erferen ce wi t h a

co n tract

, an d s l an d er o f t i t l e

. W eat h ers ap p eal s fro m t h e d i s m i ss al o f h i s cl ai m s

,

co n ten d in g t h at t h e t ri al co u rt erred b ecau s e (1 ) W eat h ers h as d em o ns t rat ed a b as i s

1 Th e EM I d efen d an t s are referred t o co l l ect iv el y as “ E M I.”fo r p ers o nal ju ri s d i ct i o n o v er EM I un d er Geo rg i a’ s L o n g Arm St at u t e; 2 (2 ) W eat h ers

p l ead ed su ffi ci en t fact s to al l eg e b reach o f co n t ract cl ai m s ag ai ns t Cart er, M au l d i n,

an d DM L; (3 ) W eat h ers pl ead ed s u ffi ci en t fact s t o al l eg e frau d cl ai m s ag ai n st Cart er,

M au l d i n

, an d DM L; an d (4 ) t h e t ri al co u rt ap p l i ed t h e wro n g s t an d ard t o d eci d e t h e

d e f e n d an t s ’ m o t i o n s t o d i s m i s s fo r fai l u re to s t at e a cl ai m

. 3 Fo r t h e reas o n s t h at

fo l l o w , we affi rm i n p art , rev ers e i n p art , an d rem an d t h e cas e.

“ On ap p eal

, w e rev i ew a t ri al co u rt ’ s d eci s io n t o g ran t o r d en y a m o t i o n to

d i s m i s s d e n o v o

. In rev iewi n g t h e g ran t o f a m o t i o n t o d i s m is s

, an ap p el l at e co u rt

m u st co n s t ru e t h e p l ead i n g s i n t h e l i g h t m o s t fav o rab l e t o t h e ap pel l an t wi t h al l

d o u b t s res o l v ed i n t h e ap pel l an t ’ s fav o r.” 4

As al l eg ed i n t h e co m

p l ai n t, i n J un e 2 0 05

, W eat h ers an d M au ld i n co -fo u n d ed

a m u s i c pu b l i s h i n g co m

p an y

, DM L, an d were t h e o n ly t wo m em b ers o f t h e co m

p an y

,

2 OCGA § 9 -1 0 -9 0 et s eq

.

3 W eat h ers d o e s no t ch al l en g e t h e d i sm i s s al o f h i s cl ai m s fo r co n v ers i o n,

b reach o f fi d u ci ary d u t y

, t o rt i o u s i n t erferen ce wi t h a co nt ract

, o r s l an d er o f ti t l e as to

Cart er, M au l d i n

, an d DM L. Th erefo re, th o s e cl ai m s are d eem ed ab a n d o ned

. See

Y ou n g v. Tu r n er Her i t ag e Ho mes

, 2 4 1 Ga. A p p

. 4 00

, 40 1 (2 ) (5 2 6 SE2 d 8 2 ) (1 9 9 9 )

(m at t ers n o t en u m erat ed as erro r are d eem ed ab an d o n ed ).

4 (Ci t a t i o n an d p u nct u at i o n o m i t t ed .) Su r et te v. Hen r y Co u n t y Bd

. o f Ta x

As s es s o rs , 3 3 2 Ga. Ap p . 4 5 7

, 4 5 8 (7 7 3 SE2 d 4 16 ) (2 0 1 5 ).

2each h av i n g 50 p ercen t eq ui t y

. In M arch 20 0 6, DM L, M au l d in

, an d EM I ex ecu t ed an

am en d m en t t o a p re-ex i s ti n g co -p u bl i s h i n g ag reem en t res u l t i n g i n EM I p ay i n g DM L

ro y al t i es an d fo r o t her m

u s i c p ub l i cat i o n ri g h ts fo r m us i c d ev el o p ed b y DM L (“ Co

Pu b l is h i n g Ag reem en t ”). As p art o f t h is p ro ces s

, M au l d i n al l eg ed l y rep res en t ed t h at

h e w as t h e s o l e o wn e r o f D M L

, b u t t h e co m p l ai n t al s o al l eg es t h at EM I was aware

o f W eat hers ’ s eq u it y i n DM L, an d M au l d i n an d W eat hers were each p ai d $ 75 ,0 0 0 as

an ad van ce o n t he d eal

.

W eat h ers m an ag ed t h e d ay -t o -d ay o p erat i o n s o f DM L

, an d M au l d i n recru i t ed

reco rd i n g art i s t s an d so n g w ri t ers

. EM I p ai d DM L ro y al t y p ay m en t s t o p u b l i s h m u s i c

fro m t h e DM L cat al o g ue. Al l o f t h e m o n i es p ai d b y EM I t o DM L al l eg ed l y were p ai d

t o M au l di n

, an d i n 2 0 0 8

, W eat h ers recei ved a p ay m en t o f $2 7 5,7 5 2 .9 7 rep res en t i n g

t wo y ears o f b ack p ay m en t s o f h i s s h a r e u n der t h e Co -Pu b l i sh i n g Ag reem en t

.

Bet ween 2 0 0 8 an d 2 0 1 1 , W eat h ers recei v ed 5 0 p ercen t o f al l ro y al t y p ay m en t s

.

W eat h ers al l eg es th at i n 2 0 1 1 h e b ecam e aware t h at h e s t i l l w as n o t recei v i n g

h i s fu l l s h are o f m o n t h l y p ay m en t s m ad e b y E M I t o DM L. W i t h o ut co n s u l t i n g

W eat h ers

, M au ld i n h ad s o u g h t an d r e c e i v ed m u l t i p l e ad v an ces

, i n $ 1 0 0 ,0 0 0

i n crem en t s

, fro m E M I to DM L. In Ap ri l 2 0 13

, wh en W eat h ers as k ed M au l d i n ab o ut

cert ai n m i s s i n g p ay m en t s

, M au l d i n i n fo rm ed h im t hat h e was co n si d eri ng sel l i n g t h e

3DM L cat al og u e t o EM I fo r $ 50 0 ,0 00

. Mau l di n al l eg ed l y pro m i s ed to p ay W eat h ers

5 0 percen t o f th e net p ro ceed s o f t h e s al e, b u t t hi s i n cl u d ed a red uct i o n fo r a recen t

$ 1 0 0 ,0 0 0 ad v an ce p ay m en t , res u l t in g i n $ 40 0

, 0 0 0 n et p ro ceed s

.

In J u l y 2 0 1 3

, M au l d in s o l d DM L to E M I “ wi t h ou t t h e p erm i s si on

, co n s en t

, o r

au t h o ri zat i o n o f W eat h ers .” W eat h ers was d i s s at is fi ed wi t h t h e s al e p ri ce, b u t co u ld

n o t g et i n t o u ch w it h M au l d i n

. W h en h e fi n al l y d id

, M au l d i n co n fi rm ed t h e s al e an d,

al o n g wi t h Cart er (M au l d i n ’ s bu s i n es s m an ag er), t o l d W eat h ers t h at t h e s al e p ro ceed s

h ad b een p l aced i n a t ru s t an d t h at W eat hers wo u l d recei v e $ 2 5 0

, 0 0 0 w i t hi n 3 0 d ay s

.

Th at m o n t h

, M au l d i n t ran s ferred $ 10 ,0 0 0 to W eat h ers

. Th e n ex t m o n t h

, M au l d in

recei v ed an o th er $ 1 0 ,0 0 0

, b u t W eat h ers al l eg es h e n ev er recei v ed fu l l p ay m en t o n

p ro ceed s fro m

t h e s al e an d p as t d u e ro y al t i es

. 5

W eat h ers an d Al l -W eat h er, LLC, s u ed D M L

, EM I, M au l d i n

, an d Cart er. Th e

d efen d an t s an s wered

, an d each m o v ed t o d i s m i s s fo r fai l u re t o s t at e a cl ai m

, wi t h E M I

al s o a s s e r t i n g lack of p ers o n al ju ri s d i ct io n. Fo l l o wi n g a h eari n g

, t h e t ri al co u rt

g ran t ed EM I’ s m o t i o n o n t he g ro u n d o f l ack o f p e r s o n al ju ri s d i ct i o n an d t h e

5 W eat h ers cl ai m s t h at t h e $ 2 0 ,0 0 0 p ay m en t s red u ced wh at h e was al read y

o wed fo r ro y al t y

p ay m en t s

.

4rem ai n i n g defen d an t s ’ m ot io n s t o d i s m i s s fo r fai l u re t o s t at e a cl ai m

. W eat h ers n o w

ap p eal s

.

1

. W eat h ers ch al l en g es t h e t r i al co u rt ’ s ru l in g t hat it l ack ed p ers o n al

ju ri s d i ct i o n ov er E M I. Bas ed on t h e reco rd b efo re u s, we co n cl ud e th at t h e t ri al co u rt

e r r e d b y ru l in g t h at W eat h ers “ fai l ed t o p res en t s u ffi ci en t ad m i s s i b l e ev i d en ce t o

es t ab l i s h t h at EM I, a n o n res i d en t

, h as en g ag ed i n co n d u ct o r b u s i n es s in v o k i n g t h e

l o n g -arm s t at u t e.”

As an i n i t i al m at t er,

[w] h en a d efen d an t m o v e s t o d i s m i s s fo r l ack of p ers o n al ju ri s d ict i o n

,

h e h as t h e b u rd en o f p ro v i n g t h at h e i s n o t s u b ject t o t h e ju ri s d i ct i o n o f

t h e co u rt

. W here t h e m o t i o n i s d eci d ed wi t h o u t an ev i d en t i ary h eari n g

an d bas ed so l el y up o n t h e wr i t t e n s u b m i s s i o n s o f t h e part i es

. . . , an y

d i s p u t es o f fact m

u s t be res o l v ed in t h e l i g h t m o s t fav o rab l e t o th e p art y

as s ert i ng t h e ex i st en ce o f p ers o n a l j u r i s d i ct i on

, an d we rev i ew th e

d eci si o n o f t he t ri al co u rt d e n o v o. 6

Th e t ri al co u rt n ot ed in i t s o rd er, wi t h o u t ci t at i o n t o l eg al au t h ori t y

, t h at i t

co n si d ered “ al l m at ters o f reco rd

. . . [an d ] h eard t h e o ral arg u m en t o f al l th o s e p art i es

p res en t at t h e h eari n g

. . . ,” b ut i t i s n o t cl ear fro m t h e reco rd wh at ev id en ce, i f an y

,

6 (Ci tat i o n om i tt ed .) Pa xt o n v. Ci t i z en s Ba n k & Tr u s t of W

es t Ga

. , 3 0 7 Ga. Ap p.

1 1 2 , 1 1 3 (7 0 4 SE2 d 21 5 ) (2 0 1 0 ).

5EM I s u bm i t t ed

. Fu rt h er, as n o t ed ab o v e, W eat h ers d i d s ub m i t an affi d av i t s u p p o rt i n g

h i s arg u m en t i n fav o r o f t h e co urt ’ s ju ri sd i ct i o n ov er EM I. To t h e ex t en t th at t h e t ri al

co u rt d i s m i s s ed EM I b ecau se W eat h ers fai l ed t o “ p res en t s u ffi ci en t ad m i s s i b l e

ev i d en ce” d em o n s t rat i n g p ers o n al ju ri s d i ct i o n, it erred b ecau s e it was EM I’ s b u rd en

t o d em o n s t rat e t h e co u rt ’ s l ack o f ju ri s d i ct io n

.

Tu rn i n g t o t h e m eri ts o f t h e ju ri s d ict i o n q u es ti o n

,

Geo rg i a’ s Lo n g A rm St at u t e[, OCGA § 9-1 0 -9 1 (1 ),] p erm i t s th e

ex erci s e o f p ers o n al ju ri s d i ct i o n o v er a n o n res i d en t defen d an t i f h e,

p ers on al l y o r t h ro u g h an a g e n t

, “ tran s act s an y bu s i n es s wi t h in t h i s

St at e.” In In no va t i ve Cl i n i ca l & c. S vcs

. v. Fi r

s t Na t

. Ba nk & c.

, 7 o u r

Su p rem e Co u rt ex pl ai n ed t h at “ OCGA § 9-1 0 -9 1(1 ) g r a n t s G eo rg i a

co u rt s t h e u n li m it ed au t h o ri t y t o ex erci s e p ers o n al ju ri sd i ct i o n o v er an y

n o n res i d en t w h o t ran s act s an y b u s i n es s i n t h i s St at e t o t h e m ax im u m

ex t en t p erm i t t ed by p ro ced u ral d u e p ro ce s s

, a n d it o verru led al l p ri o r

d eci si o n s t h at i nt er

p r e te d “ t ran s act s an y b u si nes s wi th i n t h i s St at e” m o re

n arro wl y

. 8

In d o i n g s o

, t h e Su prem e Co urt g av e a l i teral i n t erp ret at i o n t o t h e p h ras e “ t ran s act s

an y b us i n es s ,” an d n o t ed t h at p ri o r cas es h ad fai l ed “ t o acco rd t h e ap pro p ri at e b read th

7 2 7 9 Ga. 6 7 2, 6 75 (6 2 0 SE2 d 3 5 2 ) (2 0 0 5 ).

8 (Ci t at i o n an d p u n ct u at i o n o m i t t ed

. ) Pa xt o n , 3 0 7 Ga. Ap p . at 1 1 5

.

6t o t h e co n s tru ct i on o f” th at p h ras e. 9 Th erefo re, Geo rg i a’ s lo n g -arm ju ri s d i ct i o n u n d er

OCGA § 9 -1 0 -9 1 (1 ) i s b ro ad l y co n s t ru ed an d b o u n d o n ly b y n ot i o ns o f p ro ced u ral

d u e p ro ces s

.

In det erm in i n g t h e l i m i t s o f p ro ced u ra l d u e p ro ces s

, t h is Co u rt

ap p l ies a t h ree-p art t es t : J u r i s d i ct i o n ex i s t s o n t he b as is o f t ran s act i n g

b u s i n es s i n t h is St at e i f (1 ) t h e n o n res i d en t d efen d an t h as pu rp o s efu l l y

d o n e s o m e act o r co n su m m at ed s o m e t ran s act i o n i n t h is St at e, (2 ) i f th e

cau s e o f act i o n ari s es fro m o r i s co nn ect ed wi t h s u ch act o r t ran s act i o n

,

an d (3 ) i f th e ex erci s e o f ju ri s d ict i o n b y t h e co u rt s o f t h i s St at e d oes n o t

o ffen d t rad it i on al n o t i o n s o f fai rn es s an d s u bs t an ti al ju s t i ce. W e an al y ze

t h e fi rs t t wo pro n g s of t h i s t es t t o d et erm i ne w h et h er a d e f e n d an t h as

es t ab l i sh ed t h e m i n i m

u m co n t act s wi t h t h e fo ru m s t at e n eces s ary fo r th e

ex erci s e o f ju ri s d ict i o n

. An d i f su ch m i n i m u m co n t act s are fo u n d

, we

t h en an al y ze th e t hi rd p ro n g o f t h e tes t t o co ns i d er wh et h er t he ex erci s e

o f ju ri s d i ct i o n i s “ reas o n ab l e”

– t h at i s

, t o en s u re t h at i t d o es n o t res u l t

so l el y fro m ran d o m

, fo rt u i t o u s[,] o r at t en u at ed co n t act s. I m por t a ntly

, the

ap p l icat i o n o f t h e m i n i m

u m -co n t act s ru l e wi l l v ary wi t h th e qu al i ty an d

n at u re o f t h e d efen d an t ’ s act i v i t y

. Nev er t hel es s

, i t is es sen t i al i n each

cas e t h at t h ere b e s o m e act b y wh ich t h e d efen d an t p u rp o s efu l l y av ai l s

i t sel f o f t he p ri v i leg e o f co n d u ct i n g act i v i t ies wi t h i n t h e fo ru m St at e,

t h u s i nv o k i ng t h e b en efi t s an d p ro t ect i o n s o f i t s l aws

. 1 0

9 In n o va t i ve Cl i ni ca l

& c. S vcs

. , 2 7 9 Ga. at 6 7 5 -6 7 6

.

1 0 (Fo o t n o t es an d p u n ct u at i o n o m i t t ed .) Amer ica n Co ll eg e Co n n ect i o n

, In c. v.

Ber ko wi t z , 3 3 2 Ga. Ap p . 8 6 7

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

7(a) Pu r p o s ef u l a ct or t ra n s a ct i o n i n Geo r g i a

. Here, EM I arg u es t hat i t n ev er

p h y s i cal l y co n d u ct ed b u si n es s o r s i gn ed an y co n t ract i n Geo rg i a, re l yi n g o n i t s

as s ert i o n t h at i t o n l y co n du ct ed l i m i t ed b u s i n es s wi t h DM L u s in g t he t el ep h o n e, m ai l

,

an d In tern et

. Bu t

n o t h i n g i n s u b s ect i o n (1 ) o f OCGA § 9 -1 0

- 9 1 r e q u i res t h e p hy s i cal

p res en ce o f t h e n o n res i d en t i n Geo r g i a o r m i n i m izes t h e i m p ort o f a

n o n res i d en t ’ s i n t an g i b l e co n t act s wi t h t h e St at e. T o t he co n t r a ry

,

Geo rg i a al l o w s t h e as s ert i o n o f l o ng -arm ju ri s d ict i o n o v er n o n res i d en t

d efen d an t s b as ed o n b u s i n es s co n d u ct ed t h ro u g h p o s t al

, t el ep h on i c, an d

In t ern et co n tact s

. An d a s i n g l e ev en t m ay b e a s u f f i c i e n t b as is i f i t s

effect s wi t h i n t h e fo ru m

are s u b s t an t i al en o u g h. 1 1

Th e reco rd b efo re u s s h o ws t h at EM I’ s rel ev an t co nt act wi t h Geo rg i a s t em s in

p art fro m t h e Co -Pu b l i s h i n g A g r eem en t wi t h DM L. Th at ag reem en t creat ed an

o n g o i n g rel at i on s hi p wh ereb y DM L

, a Geo rg i a b u s i nes s co -o wn ed an d o p erat ed by

Geo rg i a res i d en t s

, wo u l d d ev el o p an d b ro k er m u s i cal t al en t (al s o Geo rg i a res i d en t s )

fo r p ro fi tab l e p u b l i cat i o n b y EM I el s ewh ere. T h i s rel at i o n s h i p res u l t ed i n m u l t i p l e,

o n g o i n g p ay m en t s to DM L fo r a v ari et y o f co nt i n u ed u s es o f art i s ti c wo rk i d en t i fi ed

an d d e v e l o p ed b y DM L o v er a p eri o d o f ten y ears

. Fu rt h er, E M I’ s s u b s eq u en t

1 1 (Pu n ct u ai t o n , fo o t n o t es , an d em p has i s o m it t ed ). Id . at 8 7 0-8 7 1

.

8p u rch as e o f Geo rg ia-b as ed DM L es t ab l i sh es ad d i t i o nal co n tact wi t h Geo rg i a. Al s o,

t h ere i s ev i d en ce th at

, as p art o f i ts m us i c p ub l is h i n g b u s in es s

, EM I l eas ed a

reco rd i n g s t u d io l ocat ed i n At lan t a, an d i t s em pl o y ees o pe r a t ed ou t o f t h e st u d io to

co n du ct EM I’ s b u s i n es s

. Th es e fact s d em o n st rat e p u rp o s efu l act s an d b u s i n es s

t ran s act ed i n Geo rg i a o n t h e p art o f EM I. 1 2

(b ) Ca u s e o

f a ct i o n i s co n n ect ed wi t h EMI’s G eo r g ia act i vi t y

. It is u n d i s p u t ed

t h at t h e p res en t l i t i gat i o n aro s e b ecau s e o f EM I’ s co -p ub l is h i n g ag reem en t an d

p u rch as e o f DM L. W eat h ers ’ s s t at u s a s a co -o wn er o f D M L dem o n s t rat es a cl ear

co n nect io n b et w een EM I’ s co n t act s wi t h Geo rg i a an d W eat h ers ’ s cl ai m s

.

(c) Ex e r c i se o

f j u ri s di ct i o n i n Geo r

g i a i s r ea s o n a b l e

. Fi n al l y

, EM I’ s

arran g em en t wi t h DM L an d i t s res u l t in g act i v i t i es i n G eo rg i a p ro v i d ed fai r warn i n g

t h at i t m ay

b e s u b ject t o t h e ju ri s d i ct i o n o f a Geo rg ia co urt

. 1 3 EM I p u rch as ed m u s i c

p u b l i cat i o n ri g h t s fro m a Geo rg i a co m p an y

, m ad e ro u t i n e ro y al t y p ay m en t s t o t h e

1 2 See Amer i ca n Co l l eg e C o n n ect i o n

, In c.

, 3 3 2 Ga. A pp

. at 8 72 (fi n d i n g

p ers o n al ju ri s d i ct io n w as p ro per b ecau s e t h e fo rei g n d efen d an t h i red “ a Geo rg i a

res i den t . . . t o as s i s t t he co m p an y i n o b t ai n in g ad d i t io n al cl i en t s fro m Geo rg i a”).

1 3 See Cr o s si n g Pa r

k Pr o p er t ies

, LLC v. JDI Fo r t La u der d a l e, LLC

, 3 1 6 Ga.

Ap p

. 4 7 1

, 4 7 7 (7 2 9 SE2 d 6 0 5 ) (2 0 1 2 ) (“ n eg o t iat i n g wi t h a Geo rg i a b r o k e r an d

s en d in g d o cu m en t s t o a Geo rg i a res i d e n t f o r e x ecu t i o n i n Geo rg i a p ro v i d ed fai r

warn i n g t h at i t m i g ht b e s ub ject t o s u i t i n Geo rg i a”).

9Geo rg i a co m p an y

, l eas ed a s t u d i o in Ge o r g i a t o d ev el o p G eo rg i a art i s t s

, an d

u l t i m at el y

p u rch as ed t h e Geo rg i a co m p an y i t d eal t wi t h

. 1 4 “ G eo rg i a h as an i n t eres t

,

as do es ev ery s t at e, i n p ro v i di n g i t s o wn ci t i zen s w i t h a co n v en i en t fo ru m fo r

red res s i ng i n

ju ri es wro u gh t b y n o n res i d en t s wh o h av e s ou g h t t h e s t at e’ s ci t i zen s o ut

f o r t h e p u rp o se o f b us i nes s g ai n .” 1 5 A cco rd i n g ly

, we co n cl u d e t h at t h e t ri al co u rt

erred b y d i sm i ss i n g EM I fo r l ack o f p ers o n al ju ri s d i ct i o n. Th e ju d g m en t d is m i s s i n g

EM I o n ju ri s d i ct i on al g ro u n d s i s rev ers ed

, an d t he cas e is rem an d ed fo r co n s i d erat i o n

o f EM I’ s m o t i o n t o d i s m i ss o n t h e m eri t s o f W eat hers ’ s cl ai m s ag ai n s t EM I. 1 6

2

. W eat hers al s o co n ten d s t h at t h e t ri al co u rt erred b y d i sm i s si n g t h e breach o f

co n tract cl ai m s ag ai n s t Cart er, DM L, an d M au l d in . W e ag ree i n p art

.

A m o t i o n t o d i sm i s s fo r fai l u re t o s t at e a cl ai m u p o n w h i ch rel i ef

m ay b e gran t ed s h o ul d n o t b e s u s t ai ned u n l es s (1 ) t h e al l eg at i o ns o f th e

co m p lai n t d i s cl o s e w i t h cert ai nt y t hat t he cl ai m an t w o u l d n o t b e en t i t led

t o rel i ef u n der an y s t at e o f p ro v ab l e fact s as sert ed i n s u p p o rt t h ereo f;

an d ( 2 ) t h e m ov an t es t ab l i s h es t h at th e cl ai m an t co u l d n o t p o s s ib l y

i n t ro d u ce ev id en ce w i th i n t h e fram ewo rk o f t he co m p l ai n t s u ffi ci en t t o

1 4 See Amer i ca n Co l leg e Co n n ect i o n , In c. , 3 3 2 Ga. Ap p

. at 8 7 2

.

1 5 (Pu n ct u at i o n o m i t t ed .) Cr o s s i ng Pa r k Pr o p er t i es , 3 1 6 Ga. Ap p . at 4 7 7

.

1 6 See, e.g

., McRa e v. Ho g a n

, 3 1 7 G a. Ap p. 8 13

, 8 2 1 (3 ) ( b ) ( 7 3 2 SE2 d 8 5 3 )

(2 0 1 2) (rem an d in g fo r co ns i derat i o n o f i s s u es n o t ru l ed u p o n b y t h e t ri al co u rt ).

10warran t a g ran t o f t h e rel i ef s ou g h t

. In d eci d i n g a m o t i o n t o d i s m i s s

, al l

p l ead i n g s a re t o b e co n s t ru ed m o s t fav o rab l y t o t he part y wh o fi led

t h em

, an d al l d o u b t s reg ard i n g s u ch p l ead i n g s m u s t b e res o l v ed i n th e

fi li n g p art y ’ s fav o r. 1 7

To s t at e a cl ai m

fo r b reach o f co n t ract

, W eat h ers ’ s co m p l ai n t m u s t g en eral l y

al l eg e a fact u al fam ewo rk s h o wi n g

p art i es ab l e t o c o n t ract

, a co n s i derat io n m o v in g t o th e co nt ract

, th e

a s s en t o f t he p art ies t o t h e t erm s o f t h e co n t ract

, an d a s ub ject m at t e r

u p o n wh i ch t h e co n t ract can o p erat e. Each o f t h es e fo u r es s en t i al t erm s

m u s t b e cert ai n

. In o rd er t h at i t m ay al l eg e an ag reem en t

, a p et i t i o n m u s t

s et fo rt h a co n t ract o f s u ch cert ai n t y an d co m p l et en es s t hat ei t h er p art y

m ay h av e a ri g ht o f act i o n u p o n i t. 1 8

(a) Br ea ch o

f co nt r a ct a s t o Ca r ter

. A s al l eg ed i n t h e co m p l ai nt

, Cart er’ s ro l e

o v er t h e co u rs e o f t h e rel ev an t t ran s act io n s was t o act as M au l d i n ’ s b u s i n es s m an ag er.

Th e co m p l ai nt d o es n o t al leg e an y c o n t r a ct ual ag reem en t b et ween Cart er an d

W eat h ers

, n o r d o e s i t al l eg e t h at Cart er, act i n g fo r h i m s el f, wro n gfu l l y wi t h h el d

1 7 (Ci t at i o n an d p u n ct u at i o n o m i t t ed .) Bes t Jewel r y Mf g

. Co

. v. Reed El

s evi er

In c. , 3 3 4 Ga. Ap p . 8 2 6, 8 2 6 -8 27 (7 8 0 SE2 d 6 8 9 ) (2 0 1 5 ).

1 8 (Ci t at i o n an d p u n ct u at i o n o m i tt ed .) La ver s o n v. Ma co n Bi b b Co u nt y Ho s p.

Au t h

. , 2 2 6 Ga. Ap p . 7 6 1 , 7 6 2 (4 8 7 SE2 d 6 2 1 ) (1 9 9 7 ), q u o t i n g OCGA § 1 3 -3 -1

.

11m o ney o wed W eat h ers p urs u an t t o a co n t ract wi th Cart er. Acco rd i n g l y

, t h ere i s n o s et

o f p ro v ab l e fact s wi t h i n t h e fram ewo rk al leg ed b y t h e co m p lai n t th at wo u l d res u l t in

Cart er’ s l i ab i l i t y t o W eat h ers fo r b reach of co n tract

, an d t h e tri al co u rt co rrect l y

d i s m i s s ed t h is cl ai m

ag ai n s t Cart er.

(b ) Br ea c h o

f co nt ra ct as t o Ma ul d i n a nd DML

. T h e es s en ce of W eat h ers ’ s

co m p l ai n t i s t h at (1 ) M au l d i n was p ai d rev en u e fro m E M I, wh i ch rev en u e h e d i d n ot

p ro p erl y s h are wi t h W eat h ers

, (2 ) M au l d i n wro n g fu l l y s o l d DM L, an d (3 ) M au l d in

d i d n o t fu l l y s hare t h e pro ceed s o f t h e s a l e w i t h W eat h ers

. T h es e cl ai m s ari s e fro m

t h e al l e g e d co -o wn ers h ip o f D M L b y W eat h ers an d M au l d i n an d t h e op erat i n g

ag reem en t g o vern i ng t h ei r rel at i o n s h i p i n DM L. We n o t e t hat t h e reco rd d o es n ot

co n tai n t h es e ag reem en t s

, s o o ur rev i e w i s c o n f in ed t o th e al l eg at io n s i n t h e

co m p l ai n t

. 1 9 Nev ert h el es s

, v i ewed i n t h e p ro p er l i g ht on a m o t i on t o di s m i s s

, t h e fact s

al l eg ed i n t h e co m

p l ai n t, i f l at er p ro v en

, co u l d d em o n s t rat e li ab i l i t y on t h e p art o f

1 9 We n o te t h at W eat h ers ’ s ap p el l at e b ri ef s t at es t h at a n u m b er o f ex h i b i t s

, i n cl u d i n g th e DM L o p erat in g ag reem en t an d t h e Co -Pu b l i s h i n g Ag reem en t

, were

at t ach ed t o h is co m

p l ai nt b u t are n o t p res en t i n t h e ap p el l at e reco rd

. Cert ai n res p o n s es

i n t h e d efen d an t s ’ an s wers i m p l y t hat t h ey were s erv ed wi t h t h e ex h i b i t s al o n g wi th

t h e co m pl ai n t . Nev ert h el es s , W eat h ers s t at es th at t h e t ri al co u rt cl erk h as n o reco rd

o f t h o s e ex hi b i t s

, an d h e h as n o t m ad e an y at t em p t to s u p p lem en t th e ap p el l at e reco rd

. O u r rev i ew i s, as al way s

, b as ed o n t h e reco rd b efo re u s

, an d w e res o l v e t h e i s s u e s

p res en t ed i n t h i s ap p eal by referen ce t o t h e al l eg at i o n s i n t he co m p l ai n t

, d es p i t e t h e

ab s en ce o f an y

at t ach ed ex hi b i t s

.

12M au l d i n

, f

o r ex am p l e, fo r fai l in g t o s h are w i t h W eat h ers th e rev en ue p ai d t o DM L

b y EM I as ag reed i n t h e o p erat i n g ag reem en t

, o r fo r fai l i n g t o s hare t he p ro ceed s o f

t h e s al e o f DM L acco rd in g t o t h e eq u i t y al l ocat i o n in t h e o perat in g ag reem en t

. 2 0 As

n o t ed ab o v e,

[a] m o t i o n to d i sm i s s s h o u l d o n l y b e g ran t ed i f t h e al l eg at i o n s o f th e

co m p lai n t

, co n s t ru ed m o s t fav o rab l y t o t h e p l ai n ti ff, d is cl os e w i t h

cert ai n t y th at t h e pl ai n t i ff wo u l d n o t b e en t i t l ed t o rel i ef u n d er an y s t at e

o f p ro vab l e fact s

. St at ed s o m ewh at d i fferen t l y

, a m o t i on t o d i s m i s s

s h o u l d n o t b e g ran t ed u n l es s t h e m o v an t es t ab l i sh es t h at t h e c l a i m an t

co u l d n ot po s s i b l y i n t ro d u ce ev id en ce wi t h i n t h e fram ewo rk o f th e

co m p lai n t s u ffi ci en t t o warran t a g ran t o f t h e rel ief s o ug h t

. 2 1

Si m i l arl y

, wi t h res p ect t o DM L itsel f, t h e fact s al leg ed co u l d

, i f p ro ven

, s u p p o rt

a breach of co n t ract cl ai m

, fo r ex am p l e, bas ed o n th e fact th at t h e co m p an y

, u n d er t h e

c o n t ro l o f M au l d i n

, fai l ed t o p ro p erl y co m p en s at e W eat hers fo r h i s ro le i n t h e

co m p an y

. W e are n o t i n a p o s i t i o n at t h i s p o i n t t o pars e o u t t h e rel at i v e l i ab i l i t y

b et ween M au l d in an d DM L, b u t t h e reco rd at t h is s tag e al leg es p o ten t i al cl ai m s fo r

2 0 See, e.g

., W

eb b v. Ba n k o

f Amer i ca

, N.A.

, 3 2 8 Ga. Ap p

. 6 2

, 6 3 ( 7 6 1 SE2 d

4 8 5 ) (2 0 1 4 ) (fact s al leg ed i n p l ai n t i ff’ s co m p lai n t co ul d su p p o rt cl ai m fo r b reach o f

co n tract ).

2 1 (Fo o t no t e an d p u n ct u at i o n o m i t ted .) Ewi n g v. Ci ty o f At l a nt a

, 2 8 1 Ga. 6 5 2,

6 5 3 (2 ) (6 4 2 SE2 d 1 00 ) (2 0 0 7 ).

13b reach o f co n t ract as t o bo th

. Ac c o r d i n g ly

, t h e tri al co urt erred by d i s m i s s i n g t h e

b reach o f co n t ract cl ai m s ag ai ns t M au l d in an d DM L. 2 2

3

. W eat hers n ex t co n t en d s t h at t h e t ri al co u rt erred b y d i sm i s s i n g h i s frau d

cl ai m s ag ai n s t M au l d i n , DM L, an d Cart er. W e ag ree.

As n o t ed ab o v e, “ [t ] h e t o rt o f frau d req u i res a wi l l fu l m i s rep res en t at i o n o f a

m at eri al fact

, m ad e t o i n du ce an o t h er t o act

, u p o n w h i ch s u ch p ers o n act s [o r av o i d s

act i ng ] t o h i s i nju ry .” 2 3

Al t h ou g h frau d m

u st b e p l ed wi t h p art i cu l ari t y u n der OCGA § 9 -1 1 -9

(b ), a co m

p l ai nt al l eg i n g frau d sh o ul d n o t b e d i s m i s s ed fo r fai lu re t o

s t at e a cl ai m u nl es s i t ap pears bey o n d a d ou b t t h at th e p lead er can p ro ve

n o s et of fact s i n s u pp o rt o f h i s cl ai m wh i ch wo u l d en t i t l e h i m t o rel i ef.

Rat h er t han m o v e to d is m i s s

, a d efen dan t s eek i n g great er p ar t i c u l ari t y

m ay ei t h er m o v e fo r a m o re d efi n i t e s tat em en t o r wai t fo r t h e o u t co m e

o f d i s co very

. 2 4

2 2 See g en eral l y W

eb b

, 3 28 Ga. A p p

. at 6 4 (“ [F] act u al ev i d en ce wh i ch m ay o r

m ay n o t b e d ev el o p ed d u ri n g d i s co v ery

. . . can be co n s i d ered on a s u b s eq u en t m o t i o n

fo r s u m m ary ju d g m en t .”)

2 3 (Pu n ct u at i o n o m i t t ed .) Aver y v. Ch r ys l er Mo t o r

s Co rp

. , 2 1 4 Ga. Ap p . 6 0 2,

6 0 3 (1 ) (4 4 8 SE2 d 7 37 ) (1 9 9 4 ).

2 4 (Ci t at i o n s an d p u n ct u at i o n o m i t t ed .) H ed q u i s t v. Mer r i ll Lyn ch

, Pi er ce,

Fen ner & S

mi t h , In c. , 2 8 4 Ga. Ap p . 3 8 7 , 3 9 4 (2 ) (b ) (6 4 3 SE2 d 8 64 ) (2 0 0 7 ).

14Here, W eat h ers ’ s co m p l ai n t al l eg ed t h at Mau l di n

, Cart er, an d DM L (t h ro u g h

M au l d i n ) k n o wi n gl y m ad e m is rep res en t at i on s ab o u t p l aci n g t h e pro ceed s o f t h e s al e

o f DM L i n t o an al l eg ed l y n o n ex i s t en t t ru s t an d t h at W eat h ers wo u l d b e p ai d $ 2 5 0 ,0 0 0

fro m t h at t ru s t wi t h in 3 0 d ay s

. W eat h ers al leg ed t hat he r el i ed o n t h es e

m i s rep res en t at i o n s

, an d as a res u l t o f n o t b ei n g p ai d

, h e l o s t rev en u e an d o t h er

b u s i n es s o p po rt u ni t i e s

. Vi ewi n g t h es e al l eg at io n s i n t h e l i g h t m o s t fav o rab l e to

W eat h ers

, as i s p r o p er, we co n cl u d e th at W eat h ers m i g h t b e ab l e t o p ro v e a s et o f

fact s th a t w o u l d s u p p o rt h i s frau d cl ai m s. Acco rd i n g l y

, t h e t ri al co urt erred by

d i s m i s s i n g t h e frau d cl ai m s as t o Cart er, M au l d i n

, an d DM L at t hi s s t ag e o f t h e

p ro ceed in g s

. 2 5

4

. Fi n al ly

, W eat h ers co n t en d s th at t he t ri al co u rt erred b y ap p l y i n g t h e wro n g

s t an d ard t o t h e d efen d an t s’ m o t i o n s t o di s m i s s

, t h ereb y i n co rrect ly p l aci n g a b u rd en

u p o n W eat h ers t o p ro ffer ev i d en ce t o o verco m e t hei r m ot i o ns

. It is wel l -s et t l ed t h at

a m ot i o n t o d i s m is s u n d er OCGA § 9 -1 1 -1 2 (b ) (6 ) fo r fai l u re t o s tat e a cl ai m

s h o u l d b e g ran t ed o n l y wh en : t h e al l eg at i o n s o f t h e co m p l ai n t d i s cl o s e

wi t h cert ai n t y t h at th e cl ai m an t wo u l d n o t b e en t i t l ed t o rel i ef un d er an y

s t at e o f p ro v ab l e fact s as s ert ed i n s u p p ort t h ereo f; an d t h e m o v an t

es t ab l i sh es t h at t he cl ai m an t co u l d n o t po s si b l y i n t r od u ce ev i d en ce

2 5 See i d

.

15wi t h in t h e fram ewo rk o f t h e co m p l ai n t s uffi ci en t t o warran t a g ran t o f

t h e rel i ef s o u g h t. 2 6

Here, t h e tri al co u rt ’ s d i s m i s s al o rd ers st at e t h at t he t ri al co u rt “ co n s i d ered al l

m at t ers o f reco rd i n t hi s act i o n

. . . an d h as det erm in ed t hat g o o d cau s e ex i st s fo r t h e

rel i ef” req u es t ed b y t h e d efen d an t s

. In t h e o rd er ad d res s i n g W eat h ers ’ s fai l u re t o s t at e

h i s cl ai m s

, t h e t ri al co u rt co ncl u d ed t h at W eat h er s “ f a i l ed t o p r es en t s u

f f i ci en t

a d mi s s i b l e evi d

en ce t o es ta bl i s h ” 2 7 t h e c l a i m s as s ert ed i n t h e co m p l ai n t

. Bu t n o

d i s co v ery h ad been co n d u ct ed

, an d t h e d efen d an t s d i d n o t s ub m it ev i den ce i n s u p p o rt

o f t h ei r m o t i o n s t o d is m i s s

. In s t ead

,

i n ru l i n g on th e m o t i o n t o d i s m i s s

, t h e t ri al co u rt was req ui red t o v i ew

t h e al l eg at i on s an d d o cu m en t s i n t h e p l ead i n g s in [We a th ers ’ s] fav o r

[reg ard l es s o f t h e ab s en ce o f ev i den ce] an d t h en l i m i t i t s d et erm i nat i o n

t o wh et h er t h ere was an y p o s s i b i l it y t h at [h e] wo u l d b e ab l e t o p ro d u ce

s u ffi ci en t ev i d en ce at t ri al t o p ro v e t h at [h e] was en t i t l ed t o rel i ef. 2 8

2 6 (Pu nct u at i o n o m i t t ed .) Co mmo n Ca u s e/ G a

. v. Ci ty o

f At l a n ta

, 2 7 9 Ga. 4 8 0,

4 8 1 (6 14 SE2 d 7 6 1 ) (2 0 0 5 ).

2 7 (Em p has is s u pp l i ed .)

2 8 Is l a m v. W

el l s Fa rg o Ba n k, N.A.

, 3 2 7 Ga. Ap p

. 1 9 7

, 20 1 (1 ) (7 5 7 SE2 d 6 6 3 )

(2 0 1 4). See al s o S

p eed wa y Mo t o r s p o r t s

, In c. v. Pi n n a cl e Ba n k

, 3 1 5 Ga. Ap p

. 3 2 0,

3 2 3 (1 ) (7 2 7 SE2 d 1 5 1 ) (2 01 2 ) (“ [A] p l ai n t i ff h as n o o b l i g at i o n t o an t i ci p at e an d

p l ead away

an y d efen s es i n h i s co m

p l ai n t .”).

16Al t h ou g h a t ri al co u rt h as t h e o p t i o n t o co n s id er ev i d en ce at t ach ed t o a

m o t i o n t o d i s m i s s an d b ri ef i n s u p po rt t h ereo f, w h en [t h e co urt ] d o es s o

i t co n v ert s th e m o t i o n to d i s m i s s in t o a m o ti o n fo r s um m ary ju d g m en t

,

g o v e r n e d b y OCGA § 9 -1 1 -5 6

. In acco rd an ce wi t h t h is pro ced u re, th e

t ri al co u r t h a s t h e b urd en o f i n fo rm i n g a p l ai n t i ff th at i t wi l l be

co n s i d eri ng ex h i b it s at tach ed t o t he d efen d an t ’ s m o ti o n t o d i s m i s s an d

t h at th e pl ai n t i ff w o ul d h av e n o l es s t han 3 0 d ay s wi t h i n wh ich t o s u b m i t

h i s o wn ev id en ce i n res p o n se t o t h e m o t i o n fo r s u m m ary ju d gm en t

. 2 9

Th e t ri al co u rt di d n o t em p l oy th i s p ro ced u re here, an d n o ev i d en ce was s u b m i t t ed in

s u p p ort o f t h e m o t i o n s t o d is m i s s

. 3 0 In l i gh t o f o u r r u l i n g s i n Di vi si o n s 2

, an y

2 9 (Ci t at i o n an d p u n ct u at i o n o m i tt ed .) Ba b al o l a v. HS BC Ba n k, US

A

, 3 2 4 Ga.

Ap p . 7 5 0 , 7 5 1 n .4 (7 5 1 SE2 d 5 4 5 ) (2 0 1 3 ).

3 0 W i t h res p ect t o t h e m o t i o n t o di s m i s s o n pers o n al ju ri s d i ct i on g ro u n d s

, We a th ers d i d s u b m i t an affi d av i t ad d res s i n g pers o n al ju ri s d i ct i on i n Geo rg i a o v e r

b o t h EM I d efen d an t s. Co n s id erat i o n o f m at t ers o ut s i d e t h e p l ead i n g s o n a 12 (b ) (2 )

m o ti o n t o d i s m i s s fo r l ack of p ers o n al j u ri s d i ct i o n d o es n o t co n v ert t h e m ot i o n t o o n e

fo r s u m m ary j ud gm en t

. See, e.g

., Ch u r ch v. Bel l

, 2 1 3 Ga. Ap p

. 4 4, 4 5 (4 4 3 SE2 d 6 7 7 )

(1 9 9 4) (“ Un d er OCGA § 9 -1 1-1 2 (b ), . . . o n l y m o t i o n s u n d er OCGA § 9 -1 1 -1 2 (b )

(6 ), fai l u re t o s t at e a cl ai m u p on wh i ch rel i ef can b e g ran t ed

, are co n v ert ed t o m o t i on s

fo r s u m m ary ju d g m en t wh en m at t ers ou t s i d e t h e p l ead i n g s are co ns i d ered .”)

(p u n ct u at i o n o m i t t ed ); Beh a r v. Aer o Med In t l

., In c.

, 1 8 5 Ga. A pp

. 8 4 5 (1 ) (3 6 6 SE2 d

2 2 3 ) (1 9 8 8 ) (“ A m o t i o n t o d i s m i s s fo r l ack of p e r s o n a l j u ri s d i ct i o n i s a m o t i o n in

ab at e m e n t a n d no t a m o t i o n i n b ar. Th u s, m o t i o n s t o d i s m i s s fo r l ack o f p ers o n al

ju ri s d i ct i o n can n o t b e d i s p o sed of as m o t i o n s fo r s u m m ary ju d g m en t.” (ci t at i on s

o m it t ed )). T h erefo re, t hi s affi dav i t d i d no t al t er t h e p ro ced u ral p o s t u re o f t h e m o t i o n

t o d i s m i s s

.

17res u l ti n g erro r was no t h arm fu l as t o ev ery i ss u e. Fo r p u rp o s es o f rem an d as t o EM I,

we em p h as i ze t h e p ro p er s t an d ard

.

Ju d g men t a f f ir med i n p a r t a n d r ever

s ed i n p a r t ; ca se r ema n d

ed wi t h d i r ect i o n.

Ba r nes , P. J. a n d Bo g

g s , J., co n cu r

.

18