FI RST DI VI SI ON

BA RNES, P. J.

, DI LLA RD, P. J.

, and PI PKI N, 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.

https ://w w w

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

D E A D LIN E S A R E N O LO N G E R TO LLE D IN T

H I S

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

TH E TIM E S S E T B Y

O U R C O U R T R U LE S

.

M ar ch 5, 2021



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A2 0 A1 72 1 . COPELAND v

. HOM E GROW N M U SIC, INC.

D I LLA R D , Pres i d i n g J u d g e.

B r a d e n Co pel an d was an earl y s u p p o rt er an d fi n an ci al b ack er o f h i s fr i e n d

Zach ry Bro wn ’ s ep o n y m o u s l y

n am ed “ Z ac Bro wn Ban d

. ” 1 In d eed

, he p ro v i d ed t h e

b an d wi th s ev eral cru ci al lo an s i n 2 0 0 6 wi th o ut an y wri t t en ag reem en t

. Bu t i n s h o rt

o rd er, Co p el an d an d th e b an d’ s co rp o rat e id en t i t y , Ho m e Gro wn M u s i c, In c., 2 en t ered

i n t o an ag reem en t m em ori al i zi n g t h e term s o f t hei r f in an ci al rel at i o n sh i p

. Th i s

ag reem en t p ro vi d ed t h at

— i n ex ch an g e fo r h i s i n v es t m en t s

— Co p el an d wo u l d s h are

1 Th e Zac Bro wn Ban d i s an award -wi n n i n g “ Am eri can co un t ry / ro ck b an d

b as ed i n At l an t a, G eo rg i a.” ht t p s : / / en

. wi k i ped ia.o rg / w i k i / Zac

_ B r o wn

_ Ban d (l as t

v i s i t ed o n Feb ru ary

1 7 , 2 02 1 ).

2 Fo r eas e o f referen ce, we wi l l refer t o H o m e G ro wn M u s i c, In c. as “ HGM ”

t h ro u g h ou t t h e o p i n i o n

.i n t h e b an d ’ s po t en t ial fu t u re s u cces s v i a a p ercen t ag e of t he ro y al ti es fro m m u s i c an d

m erch an d i s e s al es

. An d Co p el an d ’ s fai t h i n t h e Zac Bro w n Ban d was ri ch l y reward ed

ju s t a few ye a r s l a t e r wh en t h e g ro up s i g n ed wi th a m ajo r reco rd lab el an d

i m m ed i at el y ro ck et ed u p t h e co u n try m u s i c ch art s wi t h t h e s o n g “ Ch i ck en Fri ed .”

Un fo rt u nat el y , Co pel an d ’ s rel at i o n s h i p wi t h t h e b an d e v en t u al l y s o u red wh en h e

b eg an t o b el i ev e HGM w as fai l i n g t o p ay h i m ro y al t ies t h at h e was en t it l ed t o u n d er

t h ei r ag reem en t

. So

, h e s u ed HGM fo r b reach o f co n t ract an d lo s t

. Th e t ri al co u rt

d i s ag reed w i t h Co p e l a n d ’s i n t erp ret at i o n of th e ag reem en t, an d gran t ed s u m m ary

ju d g m en t i n HGM ’ s fav o r. Co p el an d ap p eal s, arg u i ng t h at g en u i n e i s s u es o f m at eri al

f a c t r em ai n as t o wh et her h e i s en t i t l ed t o ro y al t i es o n t h e sal es of i n d i v i d u a l

reco r d i n g s u n d er t h e ag reem en t

. He al s o cl ai m s en t i tl em en t t o at to rn ey fees an d

p reju d g m en t in teres t fo r HGM ’ s fai l ure t o pay h i m r o ya l t i es o n t h e s al es o f

m erch an d i s e t h at i t ack n o wl ed g ed were d u e to h i m u n d er t h e ag r e e m e n t

. Fi n al l y ,

Co p el an d m ai n t ai n s t h at t he t ri al co u rt erred i n award i n g HGM l i t i g at io n co s t s

. Fo r

t h e reas o ns s et fo rt h in

f r a , we affi rm t h e t ri al co u rt ’ s g ran t of su m m ary ju d g m en t to

HGM , b u t p art i al l y rev ers e i t s award o f co s t s

.

2Vi ewed i n t h e l i g h t m os t fav o rab l e t o Co p el an d ( i .e. , th e no n m o v i n g p art y ), 3

t h e reco rd sh o ws th at h e an d Bro wn b ecam e fri en d s in l at e 2 0 0 5

, aft er m eet i n g wh i l e

Co p el an d was co n d u ct i ng d u e di l i g en ce fo r a co m m erci al real es tat e t ran sact i o n

. As

a fri en d an d fan o f t h e Zac Bro wn Ban d

, Co p el a n d b e g a n h e l p i n g Bro wn fu n d h i s

g ro u p i n Feb ru ary 20 0 6 by p ro v i d i n g a s eri es o f l o an s

. An d b y J ul y 2 0 0 7

, d es p i t e

h av in g n o wri t t en ag reem en t fo r rep ay m en t at t h at ti m e, Co p el an d h ad p ro v id ed o v er

$ 7 3 ,0 0 0 to as s i s t t h e Zac Bro wn Ban d wi t h ex pen s es s u ch as t o u ri n g , h i ri n g s t u d io

m u si ci an s an d m i x ers , b o o k i n g s t u d i o t i m e, an d r eco rd i n g t he g ro u p’ s fi rs t m ajo rl ab el s tu d i o al b u m

— Th e Fo u n d

a t i o n

.

As earl y as t h e p rev i o u s s u m

m er, Co p el an d an d Bro w n d i s cu s s ed co n v ert i n g

t h e l o an s i n t o an i n v es t m en t t o w ard t h e b an d ’ s p o t en t i al fu t u re s u cces s. Sp eci fi cal l y ,

rat h er t h an s i m

p l y rep ay i n g t h e l o an s , Bro wn wo u ld g ran t Co p el an d a s h are i n t h e

ro y al t i es g en erat ed b y s al es o f t h e b a n d ’s m us i c an d m erch an d i se. An d to ward t h at

en d

, o n Au g u s t 2 2

, 2 0 0 6

, Co p el an d d raft ed a let t er to Bro w n an d HGM

, o u t l i n i n g t h e

d et ai ls o f t h ei r p ro p o s ed ag reem en t

. Th i s l et t er ag reem en t was rev i sed sev eral t i m es

o v er t he co u rs e o f a ye a r , wi t h as s i s t an ce fro m HGM ’ s at t o rn ey , an d t h e fi n al

3 S ee, e.g

. , S

wa n s o n v. Ta ckl i n g , 3 3 5 G a

. A p p

. 8 1 0

, 8 1 0 (7 8 3 SE2 d 1 6 7 ) (2 0 1 6).

3ag reem en t was s i g n ed b y Co pel an d an d Bro wn , as p res i d en t o f H GM

, o n Sep t em b er

7 , 2 00 7

.

Th e ag reem en t was d iv i d ed i n t o t wo s ect io n s , wi t h each s ect i on co nt em p l at i n g

a rat h er d i s t i n ct m ean s b y wh i ch th e al b u m wo ul d b e d i s t ri b u ted an d s o l d.

Sp eci fi cal l y , t h e fi rs t s ect i on o u t l i n ed t h e m et h o d b y wh ich rev en u e w o u l d b e s h ared

p ri o r t o t h e b an d en t eri n g in t o an y co n t ract wi t h a reco rd co m p an y

. In rel ev an t p art

,

t h at s ect i o n o f t h e ag reem en t p ro v i d ed :

To rep ay t h e In ves t m en t s an d i n co n s i d erat i o n o f m a k i n g th e

In v es t m en t s, y o u an d I ag ree t h at :

A. u n t i l y o u el ect i n y o u r s o l e d i s cret i o n , t o en t er i n to an ex cl u s iv e

reco rd i n g ag reem en t wi t h a Reco rd Co m p an y (as d efi ned b e l o w), th e

In v es t m en t s s h al l b e rep ai d as fo l l o ws :

i

. i n res p ect o f n et s al es b y y o u o f reco rd s em b o d y i n g t h e en t i re Al b um

i n d ep en d en t l y , i .e., s al es b y y o u d i rect l y t o t he co n s um er (s u ch as at l iv e

s h o w s o r fro m y o u r In t ern et web s i t e) or t h ro u g h a s o -cal led

“ d i s t ri b ut io n ” o r “ P&D” arran g em en t b et ween Ho m e Gro wn M u s i c an d

a d i s t ri b ut o r (s u ch as Caro l i n e, RED, ADA, Fo n t an a, Red ey e, Nav arre

o r t h e l i k e) (“ In dep en d en t Sal es ”), I wi l l recei v e, p ay ab l e m o n t h l y : g

1

. Fi ft y p ercen t (5 0 %) of t h e N et Recei p t s fro m s uch s al e s , u p t o a

m ax i m u m o f $5 .0 0 p er p h y s i cal Re co rd s o ld an d u p t o $ 3 .5 0 p er

4d i g i t al l y do wn l o ad ed Reco rd s o ld

, p ay ab l e m o n t h ly

, u n t i l t h e t o t a l

In v es t m en t s are rep ai d i n fu l l.

. . .

i i aft er t h e In v es t m en t s are rep ai d i n fu l l

, i n res p ect o f net s al es b y y o u

o f reco rd s em

b o d y i n g t h e en ti re Al b u m , o r i n di v i d u al reco rd i ng s fro m

t h e Al b u m , i .e., in d i v i d u al d o wn lo ad s o f reco rd in g s fro m t he Al bu m , b y

In d ep en d en t Sal es , I wi l l recei v e, o n a p ro s p ect i v e b as i s, p ay ab l e

m o n t h l y : (1 ) $ .2 0 (t wen t y cen ts ) p er reco rd s o l d

, wh et h er i n t h e fo rm o f

p h y s i cal reco rd o r d i g i t al l y d own l o ad ed reco rd

, em b o d y i ng t h e en t i re

Al b u m ; an d (2 ) $ .0 15 (o n e-an d -o n e-h al f cen t s ) per do wn l o ad s o ld o f an

i n d i vi d u al reco rd i n g fro m t h e al b u m

.

T h e s eco n d s ect i on co n t em p l at ed t h e b an d en t eri n g in t o a co n t ract wi t h a r e c o r d

co m p an y an d , i n rel ev an t p art , p ro v i d ed :

B. i n t h e ev en t t h at y o u el ect to en t er i n t o a reco rd i ng ag reem en t wi t h a

Reco rd Co m

pan y :

i

. t h e o ut s tan d i n g b al an ce, i f an y , o f t h e In v es t m en t s s h al l

, un l es s

o t h erwi se ag reed b y y o u an d m e i n w ri t i n g , b e rep ai d to m e as fo l l o ws :

1

. o ne h u n d red p ercen t (1 0 0 % ) o f t h e o u t s t an di n g b a l an ce of th e

Reco rd i n g In ves t m e n t w i l l

, u n l es s ot h erwi s e ag reed b y m e, be

rei m b u rs ed fro m t h e “ reco rd i n g fu nd ” o r “ reco rd i n g bu d g et ” p ay ab l e b y

t h e Reco rd Co m

p an y ;

5. . .

i i

. i n res p ect o f n et sal es b y y o u o f reco rd s em b o d y in g t h e en t ire Al b um

v i a a t h i rd p a rt y reco rd l ab el (i .e., o t h er t h an y o u ) (a “ Reco rd

Co m p an y ”), y o u w i l l pay m e, o r cau s e m e t o b e p a i d

, a r o ya lt y (t he

“ Ov erri d e Ro y al ty ”) o n n et s al es o f fu l l-p ri ced t o p l i n e reco rd s

em b o dy i n g t h e Al b u m b y t h e Reco rd Lab el t h ro u g h n o r m a l ret ai l

ch an n el s i n t h e U n it ed St at e s i n t h e am o u nt o f t wo p ercen t (2 .0 %) o f

SRLP (o r an eq u i v al e n t r o ya l t y i n “ p en n i es ” wh ere y o u r ro y al t y i s

cal cu l at ed as a p ercen t ag e o f w h o l es al e pri ce o r p u bl is h ed p ri ce t o

d eal ers ). Th e Ov erri d e Ro y al t y o n o t her s al es (i n cl ud i n g fo rei g n s al es )

wi l l b e red u ced (b u t n o t es cal at ed ), ad j u s t ed an d p ai d i n t h e s am e

p ro p o rt i o n, an d at t he s am e t i m es , as i s y o ur bas i c “ al l i n ” ro y al t y . Th e

Ov erri d e Ro y al t y wi l l n o t b e p ay ab l e u n t i l al l reco u pab l e reco r din g co s t s (as s u ch t erm is d efi n ed i n t h e ag reem en t wi t h t h e R e c o rd Co m p an y )

i n cu rred i n co n n ect i o n w i t h t h e Al b u m hav e b een reco u p ed b y y o u at th e

n et art i s t rat e (i

. e., y ou r b as i c “ al l i n ” ro y al t y l es s t h e ro y al ti es p ay ab l e

t o p ro d u cers , m i x ers an d m e) an d t her e a f t er t h e Ov erri d e Ro y al t y wi l l

b e p ay ab l e o n a p ro s pect i v e b as i s o n l y

. . . .

Th ereaft er, bo t h p art i es p erfo rm ed acco rd i n g t o t he fi rs t s e c t i o n o f t h e

ag reem en t

. Bu t o n Oct o b er 2 3, 2 0 0 8

, HGM en t e r ed i n t o an ex cl us i v e reco rd i n g

ag reem en t wi t h At l an t i c R e c o r d i n g Co rp o rat i on

. Ad d i t i o n al l y , b y t h is t i m e, t h e

b an d’ s fi rs t al b u m

— Th e Fo u nd

a t i o n

— was w el l o n i ts w ay to b eco m in g an en o rm ou s

6art i s t i c an d fi n an ci al s u cces s

. In d eed

, u nd er t h e Sep tem ber 2 0 07 ag reem en t wi th

HGM , Co p el an d h as recei v ed o v er $ 8 0 0 ,0 0 0 i n ro y al t y p ay m en t s

.

Nev ert h el es s , i n t he s um m er o f 2 0 0 9

, Co p el an d no t i ced t h at h e d i d n o t ap p ear

t o b e recei v i n g ro y al t y pay m en ts fo r d o w nl o ad s or s al es o f i n d iv id u al reco rd i n g s , an d

s o h e co n t act ed HGM ’ s acco u n t an t t o in q ui re ab ou t s u ch p a ym en t s

. Th e

acco u n t an t

— wh o h ad h is o wn f

i r m a n d was n o t an HGM em pl oy ee— i n d icat ed to

Co p el an d t h at i n q u i res were b ei n g m ad e t o At l an t i c, b u t d i d n o t ot h erwi s e an s wer

Co p el an d ’ s qu es t io n

. Th en , o n Feb ru ary 1 , 2 0 1 0 , Co p el an d recei v ed an acco u n t i n g

s t at em en t a n d p ay m en t fro m At l an t i c t h at d i d n o t i n cl u de pay m en t fo r i n d i v i d u al

reco rd i n g s

. Th i s p ro m

pt ed Co p el an d t o co n t act Bro wn , wh o r e s ponde d tha t he should

,

ag ai n , co n tact HGM ’ s acco u n tan t

. He d i d s o, b u t recei v ed n o r e s p o ns e. Co p el an d

fo l l o w ed u p o n Feb ru ary 2 8

, 2 0 1 0

, an d t h i s t i m e t h e acco u n t an t res p o n d ed t h at h e was

wo rk i n g on t h e s i t u at i o n. Bu t aft er heari ng no t hi n g fo r o ver a m on t h

, Co p el an d ag ai n

fo l l o w ed u p w i t h t h e acco u n t an t o n Ap ri l 1 9

, 2 0 10

, b u t t h is i n q u iry al s o wen t

u n an swered

. Un b ek n own s t t o Co p el an d

, s ev eral m o n t h s earl i er an At l an t i c

rep res en t at i v e em ai l ed HGM ’ s at t o rn ey t o as k w h et h er Co p el an d was su p po s ed t o b e

p ai d fo r s i n g l e-t rack d o wn l o ad s , an d t h e at t o rn ey res p o n d ed : “ Al b u m o n l y

. Th an k s .”

7Ov er t h e n ex t fo u r y ears , Co p el an d co n t i nu ed recei v i n g ro y al t y p ay m en t s , b ut

i n M arch 2 0 1 4

, h e d i s co v ered th at h e h ad n ot recei v ed t h e t wo m os t recen t q u art erl y

p ay m en t s fo r m erch an d i se s al es

. So

, o n M arch 2 2

, 2 0 1 4, Co pel an d em ai l ed HGM ’ s

acco u n t an t

, wh o res p o n ded t h at h e was n o l o n g er w o rk i n g wi t h HGM b ecau s e t h e

co m p an y h ad m o v ed i t s acco u n t i n g i n -h o u s e. An d al t h ou g h t h e n o w-fo rm er

acco u n t an t co pi e d h i s res p o n s e an d Co p el an d’ s o ri g i n al em ai l t o t h e i n -h o u s e

acco u n t an t at HGM

, Co p el an d i n i t ial l y recei v ed n o res p o n s e. Co ns eq u en t l y , i n Ap ri l

2 0 1 4

, Co p el an d h i red l eg al co u n s el ; an d o n e m o n t h l a t er, h i s co u n sel s en t HGM a

d em an d l et t er fo r pay m en t o f t he m erch an d i se ro y al t i es , as wel l as a draft co m p l ai n t

.

Th i s t i m e HGM d i d res p o n d

. Ack n o wl ed g i ng th at t he m erch an d i s e ro y al t i es o wed fo r

t h e t h r e e m o st recen t q u art ers h ad b een o v erl o o k ed d u e t o a t ran s i t i o n t o i n -h o u s e

acco u n t in g , HGM p ro v i d ed Co pel an d ’ s co u ns el wi t h s al es st at em en t s fo r t h e rel ev an t

q u art ers an d o f

f e r e d t o p ay t h e am o u nt s du e t o h i m un d er th o s e s t at em en t s

.

Ad d i t i o n al l y , HGM offered Co p el an d acces s t o i t s s al e s r eco rd s an d p ro p o s ed t h at

o n ce an ag reem en t was reach ed as t o t he ex act am o u n t o wed , Co pel an d w o u l d s i g n

a rel eas e an d recei v e th e pay m en t ; b u t Co p el an d ’ s co un s el b al k ed at s i g n in g a rel eas e.

8O n J u n e 2 3

, 2 0 1 4, Co p el an d fi l ed a co m p l ai nt ag ai ns t HGM fo r b reach o f

co n tract

, s eek in g u n pai d ro y al t i es fo r s al es o n in d i v i du al reco rd i n g s / s o n g s an d

m erch an d i s e, at to rn ey fees

, an d p reju d gm en t i nt eres t

. H G M f i l ed an an s wer, an d

t h ereaft er d ep o s it ed o v er $ 1 5 0 ,0 0 0 i n t h e reg i s t ry o f t h e co u rt i n a g o o d -fai t h effo rt

t o res o l v e t h e m erch an d is e-ro y al t i es i s s u e. Di sco v ery t h e n en s u ed

, an d wh en i t

co n cl u d ed

, HGM fi l ed a m ot i o n fo r s u m m ary ju d g m en t . Co p el an d fi l ed a res p o n s e,

an d o n Au g u st 1

, 2 0 1 7

, t h e t ri al co urt h el d a h eari n g o n t h e m at ter, d u ri n g wh i ch t h e

p art i es ag reed to res o lv e t h e m erch an d i se i ss u e. In d eed

, two m o n t h s aft er t h e h eari n g

(an d p ri or to t he tri al co u rt ru l i n g o n HGM ’ s m o t io n ), t h e p art ies s i g n e d a c o n s en t

o rd er, i n w h i ch t h ey ag reed t o res o l v e t he m erch an d i s e-ro y al t i es i ss u e by p ay m en t o f

t h e reg is t ry fu nd s t o Co p el an d

, b u t s t i p u l at ed th at h i s cl ai m fo r at to rn ey fees an d

i n t eres t p ert ai n i n g t o t h o s e ro y al t i es rem ai ned p en d i n g

.

On A ug u s t 2 2

, 2 01 8

, t he t ri al co u rt g ran t ed HGM ’ s m o t i o n fo r s u m m ary

ju d g m en t as t o al l o f Co p el an d ’ s rem ai n in g cl ai m s

. Sp eci fi cal l y , t h e co u rt ru l ed t h at

u n d er t h e Sep t em

b er 2 00 7 ag reem en t, HGM d i d n o t o we Co p el an d ro y al t i es o n t h e

s al es o f i n d i v i d ual reco rd i n g s aft er t h e b an d si g n ed wi t h At l an t i c an d th at n e i t h e r

at t o rn ey fees un d e r O C GA § 1 3 -6 -1 1 n or i n t eres t u nd er OCGA § 1 3 -6 -1 3 was

warran t ed b as ed o n HGM ’ s fai l u re t o p ay th e m erch an d i s e ro y al t i es ad d res s ed b y t h e

9co n sen t ord er. A few m o n t h s l a t e r , t h e t ri al co u rt en t ered a fi n al j u d gm en t an d

award ed HGM co s ts . Th i s ap p eal fo ll o ws

.

Su m m ary j u d gm en t i s p r o p e r 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 ss io n s o n fi l e, to g et h er wi t h t h e affi d av i ts

, i f an y , sh 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 a t t e r o f l a w.” 4 If s u m m ary ju d g m en t i s g ran t ed

, i t en jo y s n o

p res u m p t i o n o f co rrect n es s o n ap p eal

, an d an ap p el l at e co u rt m u s t s at is fy i t s el f t h at

t h e req ui rem en t s o f OCGA § 9 -1 1 -5 6 (c) h av e b een m et

. 5 An d i n co nd u ct in g t h i s d e

n o vo rev i ew, we are ch arg ed w i th “ v i ewi ng t h e ev i d en ce, an d al l reas o n ab l e

co n cl u s i o n s an d in feren ces d rawn fro m t h e ev i d en ce i n t h e l i g h t m o s t fav o rab l e t o t h e

n o n m o v an t .” 6 Beari n g t h es e g u i d i n g p ri nci p l es i n m i n d

, we t urn t o Co p el an d ’ s

s p eci fi c cl ai m s o f erro r.

4 OCGA § 9 -1 1 -5 6 (c).

5 S ee Co wa r t v

. W

i d en er , 2 8 7 Ga. 6 2 2

, 6 2 4 (1 ) (a) (6 9 7 SE2 d 7 7 9 ) (2 0 1 0 ) ( “ Su m m ary ju d gm en t s en

jo y n o p res u m

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

, a n d a n

ap p el l at e co u rt m

u s t s at i s fy i ts el f d e n o v o t h at t h e req u i rem en t s o f OCGA § 9 -1 1 -5 6 (c) h av e b een m et .”).

6 Ben ef i e l d v. To mi ni ch

, 3 0 8 Ga. Ap p

. 6 0 5

, 60 7 (1 ) (7 0 8 SE2 d 5 6 3) (2 0 1 1 ) (p u n ct u at i o n o m i t t ed ); a cco r d S wa n s o n , 3 3 5 Ga. Ap p . at 8 1 0

.

101

. C o p el an d fi rs t co nt en d s t h at t h e t ri al co urt erred i n g ran t i ng s u m m ary

ju d g m en t

, arg u i n g t h at g en u in e i s s u es o f m at eri al fact rem ai n as t o w h e t h e r HGM

o wes h im ro y al t i es o n t h e s a l e s o f i n d i v i du al reco rd i n g s u nd er t h e t erm s o f t h e

Sep tem b er 2 0 0 7 ag reem en t . W e d i s ag ree.

It i s wel l es tab l i s h ed t h at t h e co n st ru ct io n o f a co n t ract i s “ a q u es t i o n of l aw fo r

t h e co u rt ,” 7 i n vo l v i n g t h e fo l lo wi n g t h ree an al y t ical s t ep s:

Th e fi rs t s t ep i s to d eci d e wh et h er t h e l an g u ag e o f t h e co n t ract i s cl ear

an d u nam b i g u ou s

. If s o, t h e co n t ract i s e n f o r c e d acco rd i n g t o i ts p l ai n

t erm s , an d th e co n t ract al o n e i s l o o k ed t o fo r m ean i n g

. Seco n d

, i f th e

l a n g u ag e o f t h e co nt ract i s am b i g uo u s i n s o m e res p ect

, t h e ru l es o f

co n t ract co n s tru ct i on m

u s t b e ap p l ied b y t h e co u rt t o res o lv e th e

am b i g u i t y

. A n d fi n al ly

, i f am b i g u i t y rem ai n s aft er ap p l y in g t h e ru l es o f

co n s t ru ct io n , t h e i s s u e of wh at t h e am b i gu o us l an g u ag e m ean s an d wh at

t h e p art i es i n ten d ed m

u s t b e res o lv ed b y a ju ry

. 8

7 Sh i el d s v. RDM, LLC

, 3 5 5 Ga. Ap p

. 4 0 9

, 4 1 3 (1 ) (8 4 4 SE2 d 2 97 ) (2 0 2 0 ) (p u n ct u at i o n o m i t t ed ).

8 Id

. (p u nct u at i o n o m i t ted ); acco r d Bd

. o f Cmm’r s of Cr i s p Ct y. v. Ci t y Cmm’r s

o f t he Ci t y o f Co r d el e , 3 1 5 Ga. Ap p

. 6 9 6

, 6 99 (7 2 7 SE2 d 5 2 4 ) (2 0 1 2 ).

11Im

p o rt an t l y , t h e card in al ru l e o f co n t ract co n s tru ct i on i s “ t o as cert ai n t h e i n t en t i o n o f

t h e p art i es , as s et o u t i n t h e l an g u ag e o f t h e co n t ract

. ” 9

In t h i s m at t er, we need n ot g o b ey o nd t h e fi rs t s t ep

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

en t ered i nt o a reco rd i n g co n tract wi t h At l an t i c i n Oct o b er 2 00 8

. So

, fro m t h at p o i nt

fo rward

, t h e m et h o d by wh i ch ro y al t i es w o u l d b e s h ared b et ween Co p el an d an d HGM

was g o vern ed b y s u b s ect i o n B o f t h e Sep t em b er 2 0 0 7 ag reem e n t an d

, sp eci fi cal l y ,

p arag rap h i i

. An d wh il e p arag rap h i i o f s u b s ect io n B ex pl i ci t l y p r o v i d es t h e

p ercen t ag e Co p el an d was to b e pa i d o n s a les of “ reco rd s em b o d y i n g t h e en t i re

Al b um ,” t h ere i s

— in s t ark co n t ras t t o p arag rap h i i o f s u b s ect io n A, wh i ch i n cl u d es

t h e t erm “ i n d i v i du al reco rd i n g s fro m t h e Al b u m ”

— n o m en t i o n o f i n d i v i d u al

reco r d i n g s , m

u ch l es s an y m et h o d fo r cal cu l at in g ro y al t ies fo r s u ch s al es

. Th i s

o m i s s i o n i s n o t a b l e

. I t a l s o t r i g g e r s a w e l l

- k n o w n p r i n c i p l e o f

co n st ru ct i o n

— ap p l icab l e t o st at u t e s a n d co n tract s al ik e— “ ex pres s i o u n i u s es t

ex cl u s i o a l t e ri u s” o r “ [t ] h e ex pres s m en t i o n o f o n e t h i n g i m p li es t h e ex cl u s i o n o f

9 S h i el d s , 3 5 5 G a. Ap p. at 4 1 3 (1 ) (p u n ct uat i on o m i t t e d ) ; a cco r d S t a n l ey v. Go v’t Emp s . In s

. Co

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

, 3 4 4 (1 ) (8 10 SE2 d 1 7 9 ) (2 0 1 8 ).

12an o th er[,] ” 1 0 w h i c h

, i n t u rn , req u i res u s t o co n cl u de t h at su ch o m is s i o n was

i n t en t i o n al

. 1 1

Nev ert h el es s , Co p el an d arg ues t h at t h e Sep t em b e r 2 0 0 7 ag reem en t i s

am bi g uo u s as t o wh et h er h e i s t o b e p ai d ro y a l t i e s o n th e sal es o f i n d i v i d u al

reco rd i n g s

. An d i n d o i n g s o , h e ci t es t o t he s eco n d s en t en ce i n s u b s ect i o n B i i

, wh i ch

1 0 Mi l l er Ct

y. Bd

. o f Ed u c. v. McIn t o s h

, 3 2 6 Ga. Ap p

. 4 0 8

, 4 1 3 (1 ) (7 5 6 SE2 d

6 4 1 ) (2 0 14 ) (p u n ct u at i o n o m i t ted ); s ee a l s o Ba i l ey v. Lu mp ki n , 1 Ga. 3 9 2, 4 0 4 (1 8 4 6

W L 1 1 9 2 , * 1 2 -1 3 ) (1 8 4 6) (“ Th e m ax i m ‘ ex p res s io u n i us es t

, ex cl u s i o al t eri u s ,’ t h e

ex p res s m en t io n o f o n e t h i n g i m p l i es t h e ex cl u s io n o f an o t h er, i s freq u en t l y q u o t ed

i n o u r co u rt s . . . Th i s m ax i m ap p l i es , i n t h e fi rs t p l ace, rat h er i n t h e co n s t ru ct i o n o f

co n tract s t h an s tat u t es . . . .”).

1 1 S ee HHE In n o va t i o n

, LLC v. S h in h a n Ba n k of

Am.

, 3 43 Ga. A p p

. 8 8 1

, 8 8 6

- 8 7 (1 ) (8 0 8 SE2 d 25 8) (2 0 1 7) (h o l di n g t h at u n d er t h e can o n “ ex p r e s s i o u n i u s es t

,

ex cl u s i o al t eri u s ,” co n t ract s t at i n g t h at “ t h e fi rs t m o rt g ag e o n s u b j e c t p ro p ert y

rem ai n s i n t act ,” t h e co n t ract n eces s ari l y im p l i es th at t h e s eco n d m o rt g ag e on t h e s am e

p ro p ert y wo ul d n o t rem ai n i nt act

, t h at i s , wo u l d be rel eas ed ); McIn t os h

, 3 2 6 Ga. Ap p. 4 1 3 -1 4 (1 ) (ap p l y i n g t he can o n “ ex p res si o u n i u s es t

, ex cl u s i o al t eri us ” to co n cl u d e

t h at i n co n s t ru i n g an em

p l oy m en t co n t ract a co m

pari s on o f t he ex p res s req ui rem en t s

o f t h e wri t t en s t at em en t of ch arg es b y t h e b o ard v ers us t he em p l o y ee’ s o b l i g at i o n to

m erel y s et fo rt h hi s “ co n t en t i o n s ” i n res p o n s e t h eret o i n d i cat es t h at t h e p art i es d i d n ot
i n t en d t o p l ace an eq u i v al en t ex p l an at o ry b urd en o n em pl o y ee as t o t h e co n t en t s o f

h i s rep l y ); Geo r

ge L. S mi t h II Ga

. W

o r l d Co n gr e s s C tr

. Au t h

. v. S o f t Co md ex, In c. , 2 5 0 Ga. Ap p

. 4 6 1

, 4 6 4 (1 ) (b ) (5 5 0 SE2 d 7 0 4 ) (2 0 0 1 ) (h o l d i n g th at un d er t h e m ax i m

“ ex p res s i o u n i u s es t ex cl u si o al t eri u s,” th e li s t o f “ Faci l i t i es Li cen s ed ” i n t he co n t ract
i s p res u m ed t o ex cl ud e an y f a c i l i t y n o t s p eci fi cal ly l i s t ed ); s ee a ls o H u d s o n v. H o u s i n g Au t h

. o

f Ba l t i m o r e Ci t

y , 9 35 A2 d 3 9 5, 4 0 2 (M d

. Ct

. Sp ec. Ap p. 2 0 0 7 ) (n o t i ng th at “ [t ] h e p ri n ci p l es o f ap pl y in g a p l ai n m ean i n g ap p r o a c h i n cl u d e

co n si d erat io n o f t h e d o ct ri n e o f ‘ ex p res s io u ni u s es t ex cl u s io al t e r i u s ’” ) (ci t at i o n

o m it t ed ).

13p ro v id es : “ T h e Ov erri d e Ro y al t y o n o t h er s al es (i n cl u d i n g fo rei g n sal es ) wi l l b e

red u ced (b ut n o t es cal at ed ), ad ju s t ed an d p ai d i n t h e s am e pro p o rt io n , an d at t h e s am e

t i m es , a s i s y ou r b as i c ‘ al l i n ’ ro y al t y

. ” Sp eci fi cal l y , Co p el an d cl ai m s t h at t h e t erm

“ o t her sal es ” co u l d b e co n s tru ed t o i n c l u d e s al es o f i nd i v i d u al reco rd i ng s

. Th i s

co n ten t i o n i s a n o n s t art er. In d eed

, s u ch a] co n s t r u c t i o n i gn o res t h e co n t ex t o f t h e

p reced i n g s en t en ce, 1 2 wh ich

— in ch aract eri zi n g t h e p ay m en t t o h i m as an “ Ov erri d e

Ro y al t y ”—

p ro v i d es th at h e i s to b e p ai d “ o n n et s al es o f fu l l -p ri ced t o p l i n e reco rd s

em bo d y i n g t h e Al b u m b y t h e Reco rd Lab el t h r o u gh n o r ma l ret a i l c h a n n e l s i n t h e

Un i ted S t a t es 1 3 i n t h e am o u n t o f t wo p ercen t (2 .0 %) o f SRLP 1 4

. . . .” T h is co n t ex t i s

cru ci al

, an d t h e t erm “ o t h er s al es (i n cl u d i n g fo rei gn s al es )” i s referri n g t o t h e k i n d o f

m ark et o r ret ai l ch an n el

— s uch as fo rei g n m ark et s —fo r s al es o f th e en t i re A l b u m , n ot

1 2 S ee Ar ch er W

. Co n t r act o r

s

, Lt d

. v. Es t a t e o

f P it ts

, 2 9 2 Ga. 2 19

, 2 2 4 (2 ) (7 3 5

SE2 d 77 2 ) (2 0 1 2 ) (h o l d i n g t h at t h e co n t ex t in wh i ch a co n t ract u al t e r m a p p ears al way s m u s t b e co n s i d ered i n d et erm i n i n g t he m ea n i n g o f t he t erm ); W i l l es en v. Er n es t Co mmc’n

, In c. , 3 23 Ga. Ap p

. 4 5 7, 4 6 0 (1 ) (7 4 6 SE2 d 7 5 5 ) (2 0 1 3 ) (n o t i n g t h at

ru l es o f co n t ract i n t erp ret at io n “ req u i re u s t o i n t erp ret an y i s o l a t e d c l au s es an d

p ro v is i o n s o f t h e co n t ra c t i n t h e co n t ex t o f t h e ag reem en t as a wh o le”); s ee a l s o An d er s o n v. An d

er s o n , 2 7 4 Ga. 2 2 4

, 2 2 7 (3 ) (5 52 SE 2 d 8 0 1 ) (2 0 0 1 ) (“ W o rd s , l i k e

p eo pl e, are ju d g ed b y

t h e co m p an y t h ey k eep ”).

1 3 (Em p has is s u pp l i ed .)

1 4 As n o ted el s ewh ere in t h e ag reem en t

, “ SRLP” i s s h ort h a n d f o r “ s u g g es t ed

ret ai l l is t p ri ce.”

14t o t h at wh i ch i s b e i n g s o ld

. So

, d es p i t e Co p el an d ’ s al t ern at i v e h y p o t h et i cal

i n t erp ret at io n , “ w e are no t at l i b ert y to i g n ore t h e s p eci fi c t erm s of t h e p art i es ’ wri t t en

ag reem en t an d rewri t e o r r e v i s e a co n tract u n d er t h e g u i s e o f co n s t ru in g i t .” 1 5

Acco rd in g ly

, t h e t ri al co u rt d i d n o t err i n ru li n g t hat t h e u n am bi g u o u s l an gu ag e i n t h e

Sep tem b er 2 0 0 7 ag reem en t p ro v i d es t h at Co p el an d i s t o b e p ai d fo r s al es o f t h e en t i re

Al b um a n d

i n d i v id ual reco rd i n g s fro m t h e Al b u m p ri o r to HGM s i gn i n g a co n t ract

wi t h a reco rd c o m

p a n y bu t o n ly fo r s al es o f t h e en t i re Al b u m s u b s eq u en t t o s u ch a

s i gn i n g

. 1 6

2

. Co p e l a n d a l s o m ai n tai n s t h at t h e t ri al co u rt erred i n g ran t i ng s u m m ary

ju d g m en t as t o h i s cl ai m t h at HGM ’ s i n i ti al fai l u re to p ay th e m erch an d i s e ro y al ti es

1 5 Mi l l er v. G GNS C At l a n t a

, LLC

, 3 2 3 Ga. Ap p

. 1 1 4

, 1 2 3 (2 ) (7 4 6 SE2 d 6 8 0 ) (2 0 1 3) (p u n ct u at i o n o m i t t ed ); a cco r d B ea r o f f v.Cr a t o n , 3 5 0 Ga. Ap p

. 8 26

, 8 3 4 (1 ) (8 3 0 SE2 d 3 6 2 ) (2 0 1 9 ).

1 6 S ee Am. Emp i r e S

u r p l u s Li n es In s

. Co

. v. Ha t ha wa y Dev. Co

., In c. , 2 8 8 Ga.

7 4 9

, 7 5 0 (7 0 7 SE2 d 3 69 ) (2 0 1 1) (“ If t h e l an g u ag e i s u n am bi g u o u s , t h e co u rt s i m

p l y

en fo rces t h e co n t ract acco rd i n g t o t h e t erm s , an d l o o k s t o t h e co n t ract al on e fo r t h e

m ean i n g

. ” ( p u n ct u at io n o m i t t ed )); Bea ro f f

, 3 5 0 Ga. A p p

. at 8 3 4 (1 ) (affi rm i n g t h e

t ri al co u rt ’ s g ran t o f s u m

m ary j u d g m en t as t o co nt ract cl ai m o n t h e gro u n d t hat wh en

“ t h e lan gu ag e at i s s u e i s p lai n an d un am bi g u o u s, we p res um e t h at t h e p art ies m ean t
wh at t h ey s ai d an d we s i m pl y en fo rce t h e co n tract as wri tt en ”). Becau se th e rel ev an t

co n tract l an g u ag e i s u n am b i g u o u s , we n eed n ot ad d res s Co pel an d ’ s rem a i n i n g

arg u m en t t h at “ [t ] h e ru l es o f co n t ract co n s tru ct i on an d p aro l e ev id en ce d o n o t res o l v e

t h e am b ig u i t y i n fav o r o f ex cl u d i n g s al es o f i n d i v i d u al s o n g s .”

15i t ack n o wl ed g ed t h at h e was o wed warran t ed an award of at t orn ey fees u nd er OCGA

§ 1 3-6 -1 1 . Ag ai n , we d i sag ree.

OCGA § 1 3 -6 -1 1 p ro v id es t h at “ [t ] h e ex p en s es o f l i t i g at i o n g en eral l y s h al l n ot

b e al l owed as a p art o f t h e d am ag es ; b u t wh ere t h e p l ai n t i ff h as sp eci al ly p l ead ed an d

h as m ad e p ray er t h erefo r an d w h er e t h e defen d an t h as act ed i n b ad fai t h, h as b een

s t ub b o rn ly l it i g i o us , o r h as cau s ed t he p l ai n ti ff un n eces s ary t ro u b l e an d ex p en s e, t h e

ju ry m ay al l o w t hem .” An d q u es t i o n s co n cern i n g b ad fai t h

, st u b b o rn l i t i g io u s n es s , o r

u n n eces sary tro ub l e an d ex p en s e, u n d er OCGA § 1 3 -6 -1 1

, are “ g en eral l y q u es t i on s

fo r t h e ju ry t o d eci d e.” 1 7 N ev ert h el es s , i f t h ere i s n o ev i d en ce o f b ad fai t h or s t u b b o rn

l i ti g i o u s n es s , a co u rt s h o ul d “ g ran t a d efen d an t ’ s m o t io n fo r s u m m ary ju d g m en t o n

a cl ai m fo r at t o rn ey

fees .” 1 8

Here, Co p el an d cl ai m s t h a t t h e tri al co u rt erred i n d en y i n g hi s cl ai m fo r

at t o rn ey fees u n d er OCGA § 1 3 -6 -1 1

, s p eci fi cal l y arg u i n g th at H GM act ed i n b ad

fai t h a n d cau s ed h i m un n eces s ary t ro ub l e an d ex p en s e w h en i t fai l ed t o i m m ed i at el y

1 7 Ga r r et t v. W

o m en ’s Hea l t h Ca r e of Gwi n net t

, P.C.

, 24 3 Ga. Ap p

. 5 3

, 5 4 -5 5 (1 ) (5 32 SE2 d 1 64 ) (2 0 0 0 ) (p u n ct u at i o n o m it t ed ).

1 8 Id

. at 5 5 (1 ) (p u n ct u at i o n o m it t ed ); a cco r d Na s h v. Reed

, 3 4 9 Ga. Ap p

. 3 8 1,

3 8 3 (1 ) (8 2 5 SE2 d 8 53 ) (2 0 1 9 ).

16p ay h i m s ev eral qu art ers wo rt h o f m erch an d i se ro y al t i es t hat i t ack n o wl ed g ed h e was

o wed

.

(a) Ba d

-f a i t h Cl a i m

. A s to Co p el an d ’ s b ad -fai t h cl ai m , t h i s Co u rt h as h el d t h at

“ b ad fai t h warran ti n g an award o f a t t o r n e y fees m u s t h av e ari s en ou t o f t h e

t ran s act io n o n w h ich t he cau s e o f act i o n i s p red i cat ed .” 1 9 Im p o rt an t l y , a m ere refu s al

t o pay a ju s t d eb t

, s t an d i n g al o n e, i s “ i n su ffi ci en t t o s u p p o rt an award o f at to rn ey fees

u n d er OCGA § 1 3 -6 -1 1

. ” 2 0 Bu t s u ch a refu s al m ay b e s uffi ci en t wh en “ i t i s n ot

p ro m p t ed b y an h o n es t m is t ak e as t o o n e’ s ri g h t s o r d u t i es b u t b y s o m e i n t eres t ed o r

s i ni s ter m o t i ve.” 2 1

In t h i s cas e, aft er Co p el an d i n fo rm ed HGM th at h e h ad n o t b een p ai d ro y al ti es

o n m erch an d i s e s al es fo r s ev eral q u art e r s , H GM ack n owl ed ged t h e ov ers i g h t an d

ex p lai n ed t h at i t was a res ul t o f t h e co m p an y ’ s t ran si t io n o f i t s acco u n ti n g o p erat i on s

f r o m a n o u t s i d e acco u n t i n g fi rm

— to wh o m Co p el an d d i rect ed h is i n it i al i n q u i ri es

ab o ut t h e p ay m en t s

— t o an i n t ern al acco u n t i n g d ep art m en t. In ad d i t i o n , HGM

1 9 S t eel Ma gn o l i a s Rea l t

y, LLC v. Bl ea k l e

y , 2 7 6 G a. Ap p

. 1 5 5

, 1 56 (1 ) (6 2 2

SE2 d 4 8 1) (2 0 0 5) (p un ct u at i o n o m i t t ed ).

2 0 Fr es h Fl o o r

s

, In c. v. Ca mb r i dg e A

pa r tmen t s

, LLC

, 2 5 7 Ga. Ap p

. 2 7 0

, 2 7 1 (5 7 0 SE2 d 5 9 0 ) (2 0 0 2 ).

2 1 Id

.

17p ro m

p t ly p ro v i d ed Co p el an d an d h i s l eg al co u n s el w i t h s a l es s t at em en ts fo r t h e

rel ev an t q u art ers an d o ffered t o p ay th e am ou n t s d u e u n d er t h o s e s t at em en t s

.

Co p el an d

, n o n et h el es s , as s ert s t h at HGM ’ s req u es t t h a t he si g n a rel eas e aft er

d et erm i n i n g t h e ex act am o un t o we d i s e v i d en ce o f b ad fai t h

. Bu t t h i s req ues t was

p ro m p t ed b y Co p el an d ’ s co u n s el s en d i n g HGM a draft co m p lai n t wi t h h i s d em an d

l et t er, i n wh i ch h e al l eg ed t h at p as t ac c o u n t i n g s w ere n o t al way s accu rat e. Th u s , at

t h i s p oi n t

, Co p el an d was arg u ab l y t h reat en i n g l i t ig at i o n , an d “ b a d fai t h ”— as

co n tem p l at ed b y OCGA § 1 3 -6 -1 1

— d o es n o t en co m p as s b a d f

ai t h i n d efen d i n g a

cl ai m aft er a cau s e o f act io n h a s a l r e a dy ari s en .” 2 2 As a res ul t

, g i v en t h es e

ci rcu m s t an ces , w e ag r ee w i t h t h e tri al co u rt t h at HGM ’ s h an d l i ng o f Co p el an d ’ s

req u es t fo r t h e ro y al ty p ay m en t s o n m erch an d i s e s al es was n o t i n b ad fai t h o r t h e

res u l t o f a s i ni s t er m o t i v e as a m at t er o f l aw. 2 3

2 2 S t eel Ma gn o l i a s Rea l t

y, LLC

, 2 7 6 Ga. Ap p

. at 1 5 7 (1 ); s ee Da vi d G. Br o wn P.E., In c. v. Ken t

, 2 74 Ga. 8 4 9

, 8 5 0 (5 6 1 SE2 d 8 9 ) (2 00 2 ) (“ Th e el em en t s wh i ch wi l l

au t h o ri ze an award u n d er OCGA § 1 3 -6 -1 1 h av e co n s i s t en t l y b een fo u n d t o rel at e to

t h e co n d u ct ari s i n g fro m t he t ran s act i o n u n d er ly ing th e cau s e o f act i o n b ei n g l i t i g at ed

,

n o t co n d uct d u ri n g t h e co u rs e o f t h e l i t i g at i o n i ts el f.”); Na s h

, 3 4 9 Ga. Ap p

. at 3 8 3 (1 ) ( n o t i n g t h at b ad fai t h u n d er OCGA § 1 3 -6 -1 1 ,”p ert ai n s to t h e t ran s act i o n o u t o f

wh i ch t h e cau se o f act i on aro se, n o t t o t he d efen d an t ’ s co n d u ct aft er t h e cau s e o f

act i on aro s e.” (p u n ct uat i o n o m i t t ed )).

2 3 S ee Ch o a t e Co n s t r

. Co

. v. Au t o -Own er s In s

. Co

. , 3 3 5 Ga. A p p

. 3 31

, 3 4 1 (3 ) (7 7 9 SE2 d 4 6 5 ) ( 2 0 1 5 ) ( h o l d i n g t h at t ri al co u rt d id n o t err i n g ran t i n g s u m m ary

18(b ) Un n eces s a r y Tr o u b l e a n d Exp en s e Cl a i m

. As t o Co pel an d ’ s arg u m en t t h at

HGM cau s ed h i m un n eces s ary tro u b l e an d ex p en s e, a reco v ery o f at t o rn ey fees u n d er

OCGA § 1 3 -6 -1 1 fo r su ch a cl ai m “ i s au t h o ri zed [wh en ] t h e ev i d en ce rev eal s n o b o n a

fi de co n t ro v ers y o r d i sp u t e w i th r e ga r d to the de f

en d an t ’ s l i ab il i ty .” 2 4 Bu t i m p o rt an t l y ,

wh en a b o na fi d e co n tro v ers y cl ea r l y e x i s t s b et ween t he part i es , t h e d efen d an t i s

“ en t i t l ed t o ju d g m en t as a m at ter o f l aw o n th e p l ai n t i ff’ s cl ai m fo r at t o rn ey fees an d

ex p en s es o f l it i g at i on b as ed o n s t u bb o rn li t i g i ou s nes s o r t h e cau s i n g of u n n eces s ary

t ro u b l e an d ex p en s e.” 2 5

In t h i s m at t er, aft er HGM ack n o wl ed g ed i t s o v ers ig h t reg ard i n g t h e ro y al ti es

o n m erch an d i s e s al es i t owed

, i t p ro v id ed Co p el an d an d hi s co un s el wi t h s a l e s

s t at em en t s fo r t h e rel ev an t qu art ers an d o ffered t o pay t he am o u n t s d u e u nd er t h o s e

ju d g m en t t o d efen d an t o n pl ai n t i ff’ s cl ai m fo r at t o rn ey fees g i v en th at d efen d an t h ad

a g o o d-fai t h b as i s fo r co n t es t i n g wh et h er i t o w ed b on d p ay m en t s t o p l ai n t i ff); S t eel

Ma g n o l ia s Rea l t

y, LLC

, 27 6 Ga. Ap p

. at 1 5 6 -5 7 (1 ) (h o l d i n g t h at su m m ary ju d g m en t

was warran t ed as t o p lai nt i ff’ s cl ai m fo r at t o rn ey fees as t h ere was n o ev i d en ce t h at

c o n t ract or b reach t h ereo f was m ad e in bad fai t h ); P u l t e Ho me Co r p

. v. W o o d l a n d

Nu r s er y , 2 3 0 G a. Ap p

. 45 5, 4 5 8 (4 ) (4 9 6 SE2 d 5 46 ) (1 9 9 8 ) (“ A reco v ery o f OCGA § 1 3 -6 -1 1 at t o rn ey ’ s fees i n a co n t ract act i o n m u s t b e bas ed u p o n ev i den ce wh i ch

s h o ws m o re t h an a m ere b reach o f co n t ract

. ” (p u nct u at i o n o m i t t ed )).

2 4 S t eel Ma g n o li a s Rea l t

y, LLC

, 2 7 6 Ga. Ap p

. at 1 5 7 (2 ).

2 5 Ch o a t e Co n st r . Co

. , 3 3 5 Ga. Ap p. at 3 41 (3 ) (p u n ct uat i o n o m i t t ed ).

19s t at em en t s

. Co p el an d an d hi s co u n s el t h en q u es t i on ed wh et h er p ri o r s tat em en t s were

accu rat e an d t h reat en ed li ti g at i o n , aft er wh i ch HGM d ep o s i t ed o v er $ 1 50 ,0 0 0 i n t h e

reg i s try o f t he co u rt

. Th u s , d es p i t e t h e f a c t t h at t he p art i es ul t i m at el y ag reed t o a

co n sen t o rd er award i n g Co p el an d t h e ro y al ti es o n m erch an d i s e s al es , t h ere was ,

i n i t i al l y , a bo n a fi d e co n t ro v ers y b et ween t h em , an d

, co n s eq u en t ly

, Co p el an d i s n ot

en t i t l ed t o at t o rn ey fees u nd er OCGA § 1 3 -6 -1 1 as a m at t er o f l aw. 2 6 As a res u l t

, t h e

t ri al co u rt d i d n o t err i n g ran ti n g s u m m ary ju d g m en t t o HGM o n t h at cl ai m

.

3

. Co p el a n d f

urt h er co n t en d s t h at t h e t ri al co u rt erred i n gran t i n g s u m m ary

ju d g m en t as t o h i s cl ai m t h at HGM ’ s i n it i al fai l u re t o p ay th e m erch an d i s e ro y al ti es

i t ack n o w l ed g ed t h at h e was owed al s o warran t ed an award fo r p reju d g m en t i n t eres t

u n d er OCGA § 13 -6 -1 3. Yet ag ai n , we d i s ag ree.

2 6 S ee La t h a m v. Fa u l

k

, 2 6 5 Ga. 1 0 7

, 10 8 (2 ) (4 5 4 SE2 d 1 3 6 ) (1 9 9 5 ) (h o l d i n g

t h at a b o na fi d e co n t ro v ers y reg ard i n g ex i s t en ce an d t erm s o f co n tract t o m ak e wi l l

p recl u d ed award o f at to rn ey fees i n s u i t fo r s p eci fi c p erfo rm an ce o f co n t ract ); Ch o a t e Co n s t r

. Co

. , 3 3 5 Ga. Ap p

. at 3 4 1 -4 2 (3 ) (h o l d i n g t h at t ri al co u rt d i d n o t e r r in

g ran t i n g s u m

m ary ju d g m en t t o d efen d an t on p lai n t i ff’ s cl ai m fo r at t o rn ey fees g i v en

t h at t h ere was a gen u i ne d i s pu t e b et ween t h e p art i es ); S teel Ma g n o l ia s Rea lt y, LLC

, 2 7 6 Ga

. Ap p. at 1 5 7 -5 8 (2 ) (h o l di n g t h at s u m m ary ju d g m en t was warran t ed a s t o

p l ai n t i ff’ s cl a i m fo r at t o rn ey fees as t h ere was ev id en ce o f a b o na fi de co n t ro v ers y b et ween t h e p art i es ); Gr a ng e Mu t

. Ca s

. Co

. v. Ka y , 2 6 4 Ga. Ap p. 13 9

, 1 4 4 (5 ) (5 8 9

SE2 d 7 1 1) (2 0 0 3) (s am e).

20Un d er OCGA § 1 3-6 -1 3

, “ [i ] n al l cas es wh ere an am o u n t as cert ai n ed wo u l d b e

t h e d am ag es at t h e t i m e o f t h e b reach

, i t ma y b e i ncreas ed b y t h e ad di t i o n o f l eg al

i n t eres t fro m t h at t i m e u nt i l t h e r e c o v e r y .” 2 7 An d t h is Co d e sect i o n i s ap pl i cab l e to

“ u n l i q u i d at ed d am ag es .” 2 8 Bu t wh i l e OCGA § 1 3 -6 -1 3 au t h o ri zes a s ep arat e award

o f p reju d g m en t i n teres t , i t “ d o es n o t r eq ui r e s u ch an award .” 2 9

In t h i s m at t er, t he t ri al co u rt d et erm i n ed t h at preju d gm en t in teres t was n ot

warran t ed as a m at t er o f law, an d Co pel an d o ffers no s u p p o r t fo r h is arg u m en t t h at

t h e t ri al co u rt was req u i red t o s en d t h is i s s u e t o a ju ry , wh en t h e very l an gu ag e o f t h e

s t at u te p ro v i des t h at s u ch an award is en t i rel y d i s cret i on ary

. 3 0 Acco rd i n g l y , t h e t ri al

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

2 8 Br a n er v. S

. Tr us t In s

. Co

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

a cco rd Co ns u l t i ng Co ns t r

. Co r p

. v. Ed wa r d s , 2 0 7 Ga. Ap p

. 2 9 6

, 2 9 9 (3 ) (4 2 7 SE2 d

7 8 9 ) (1 9 9 3 ).

2 9 T & R Cu s t o m, In c. v. Li b er t y Mu t

. In s

. Co

. , 2 2 7 Ga. Ap p

. 1 4 4

, 1 4 7 (4 ) (4 8 8

SE2 d 7 0 5) (1 9 9 7) (em

ph as i s s up p l i ed ).

3 0 S ee Fer d i n a nd

v. Ci ty o f Ea s t Po i n t

, 3 0 1 Ga. Ap p

. 3 3 3

, 3 3 8 (3 ) (6 8 7 SE2 d

6 1 7 ) (2 0 0 9 ) (h o l d i ng t h at t ri al co u rt h ad d i s cret i o n t o award i n t eres t un d er OCGA §

1 3 -6 -1 3 as a m at ter o f l aw o n s u m m ary ju d g m e n t ); W

a lker v. Gwi n n et t H

o s p

. Sys

., In c. , 2 6 3 Ga. Ap p

. 5 54 , 5 5 9 (2 ) (5 8 8 SE2 d 4 4 1 ) (2 0 03 ) (fi n d i n g t h at tri al co u rt was

a u t h o r i zed t o award p reju d g m en t i n t eres t u nd er OCGA §§ 7 -4 -1 5 an d 1 3 -6 -1 3 o n

s u m m ary ju d g m en t ); Co l o n ia l Ba n k v. Bo u l d er B a n kca rd Pr o ces si ng

, In c. , 2 5 4 Ga. Ap p

. 68 6

, 6 9 2 (7 ) (5 6 3 SE2 d 4 9 2 ) (2 0 0 2) (affi rm i n g t r i al co u rt ’ s award o f i n t eres t

u n d er OCGA § 1 3 -6 -1 3 o n s u m m ary ju d g m en t); Rea h a r d v. Ives t er , 1 8 8 Ga. Ap p

. 1 7,

21co u rt al s o d i d no t err i n g ran t i n g s u m m ary ju d g m en t t o HGM as t o Co p el an d ’ s cl ai m

fo r p reju dg m en t i n t eres t u n d er OCGA § 1 3-6 -1 3

.

4

. F i n a l l y, Co p el an d co nt en d s t hat t h e t ri al co u rt erred i n award i n g co s t s to

H G M i n i t s fi n al j u d gm en t

, arg u i ng t h at t h e m ajo ri t y o f t h o s e co s t s were n o t

reco v erab l e u n d er OCGA § 9 -1 5 -1 1 . W e ag ree.

Fo l l owi n g th e t ri al co u rt ’ s g ran t o f s um m ary ju d g m en t i n it s fav o r, HGM fi l ed

a m o t i o n fo r co s t s u n d er OCGA § 9 -1 5 -1 1

, s eek i ng t o reco v er $ 2 ,3 6 2 .2 6

. Th e co s t s

s o u g ht s p eci fi cal l y i n cl u d ed co u rt rep ort er fees fo r d ep o s i t i o n s an d t h e t ran s cri p t i o n

o f t h e s u m

m ary -ju d g m en t h eari n g , fi l i n g fees

, co u ri er fees

, an d t h e co s t s o f ex h i b i t

b o ard s u s ed d u ri n g t h at h eari n g

. An d a few m o n t hs l at er, t h e t ri al co u rt i s s u ed an

o rd er award i n g co s t s t o HGM i n t h e fu l l am o u n t s o ug h t o f $ 2 ,3 6 2 .2 6.

On a p p e a l

, Co p el an d arg u es t h at t h e t ri al co u rt erred

, cl ai m i n g th at o n l y t h e

fi li n g fees were reco v erab l e u n der t h e s t at u t e. An d o n t h is p oi n t

, w e ag ree w i t h h i m

.

1 9 (2 ) (3 7 1 SE2 d 9 0 5 ) (1 9 8 8) (h o l d i n g t hat l an dl o rd s u in g t o reco v er u np ai d ren t was

en t i t l ed t o reco v er i n t eres t o n d am ag es o n s u m m ary j u d gm en t). Cf

. Co n s u l t i n g Co n s t r

. Co r

p

. , 2 0 7 Ga. A p p. at 2 9 9 (3 ) (n o t i n g t h at un l ik e i nt e r e s t a w a r ded u n d er OCGA § 1 3 -6 -1 3 , i n t eres t award ed u n d er OCGA § 7 -4 -1 5 i s m an d at o ry rat h er t h an d i s cret i o n ary ). S

ee a l s o Ca r tl ed

g e v. Mo n ta n o , 32 5 Ga. Ap p

. 3 2 2

, 3 3 0 (3 ) (7 5 0 SE2 d

7 7 2 ) (2 0 13 ) (ex p l ai ni n g th at “ i n co n s t ru i n g th e l an g u ag e o f a s t at u te, t h e w o rd ‘ s hal l ’

o rd i n ari ly d en o t es co m

m an d an d n o t p e r m i ss i o n , wh ereas ‘ m ay ’ o rd i n ari l y d en o t es

p erm i s s i o n an d n ot co m

m an d .” (p u n ct uat i o n o m i t ted )).

22OCGA § 9 -1 5 -1 1

, i n rel ev an t p art

, p ro v i d es : “ W h en a cas e i s d is p o s ed o f, t h e co s t s ,

i n cl u d i n g fees o f wi t n es s es , s h al l b e i n cl u d e d i n t h e ju d g m en t ag ai ns t t h e p art y

v o l u n t ari l y d is m i ss in g , b ei n g i nv o l u n t ari ly d is m i ss ed

, o r cas t i n th e act i o n .” Bu t n ot

al l ex p en s es i n cu rred b y a p art y are “ reg ard ed as co s t s .” 3 1 In fact

, co s t s are g en eral l y

l i m i ted t o “ t h o s e ch arg es , fi xed b y s t at u te, as co m p en s at i o n fo r s erv i ces ren d ered by

o ffi cers o f t h e Co u rt i n t h e p ro g res s of t he cau s e.” 3 2 An d t h e S u p r e m e Co u rt o f

Geo rg i a h as ex p re s s l y h el d t hat t h e t erm “ co s t s ” d o es n o t i n cl u d e ei t her d ep o s i t i o n

co s t s o r t h e co u rt rep o rt er’ s t ak e-d o wn fee f o r t r a n s cri b i n g t h e su m

m ary -ju d g m en t

h eari n g fo r p u rp o s es o f th o s e co s t s as s es s ed ag ai n s t a l o s i n g p art y in a ci v i l m at t er. 3 3

Acco rd in g ly

, we rev ers e t h e tri al co u rt ’ s award o f co s t s to HGM wi th t h e ex cep t i o n

o f t h e $ 1 0 4 .8 3 award fo r t h e fi l i n g fees i t i n cu rred

.

3 1 Ba r t el t v. Co n ver

gen ce.co m Co r

p

. , 2 8 7 Ga. Ap p. 8 7 1

, 8 7 1 (6 5 2 SE2 d 8 9 7 ) (2 0 0 7) (p u n ct u at i on o m i t ted ).

3 2 Id

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

3 3 S ee Ci t y o f At l a n t a v. In t ’l As s ’n o

f Fi r ef i g h ter s

, Lo ca l 1 3 4

, 2 4 0 Ga. 2 4

, 2 6 (4 ) (b ) (2 3 9 SE2 d 3 5 3 ) (1 97 7 ) (h o l d i n g t h at ex p en s es in cu rred i n t ak i n g d ep o s i t i on s

an d t he tak e-d o wn fee o f t h e co u rt rep o rt er were n o t i n cl u d ed as co st s ); Ba r t el t

, 2 8 7 Ga. Ap p . at 8 7 1 (s am e).

23Fo r al l t h es e reas o ns , we affi rm t h e tri al co u rt ’ s g ran t o f su m m ary j u d gm en t in

fav o r o f HGM

, b u t we p art i al l y rev ers e i t s award o f co s t s u n d er OCGA § 9 -1 5 -1 1

.

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

r ever s ed i n p ar t

. Ba r n es

, P. J. a n d Pi p ki n

, J.,

co n cu r

.

24