FOURTH D I VI SI ON

DI LLA R D, C. J.

, D OYLE, P. J.

, and M ERCI ER, 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

June 20, 2018



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A1 8 A0 78 1

. RIVERS v

. REVINGTON GLEN I NV E STM ENTS,

LLC. DO-0 2 7

D O Y LE , Pres i d i n g J u d g e.

Th i s cas e ari s es fro m an act i o n fi l ed b y Rev i n gt o n Gl en In v e s t m en t s , LLC,

(“ Rev i n g t o n ”) ag ai n st Wi l l i a m G. Ri v ers , i nd i v i d u al ly an d as s o l e t ru s t ee o f t h e

Ri v ers Fam i l y T ru st

, an d o t h er i n d i vi d u al s , 1 al l eg i ng breach o f w arran t y ,

m i s rep res en t at i o n , i n t en t i o na l c o n ceal m en t

, an d n u i s an ce rel at ed t o a real es t at e

t r a n s a c t io n b et ween th e p art ies

. Th e p art i es fi l ed cro s s -m o t i on s fo r s u m m ary

ju d g m en t

, an d t h e t ri al co u rt g ran t ed s u m m ary ju d g m en t t o Ri v ers in d i v i du al l y as to

al l cl ai m s an d t o t h e Tru s t i n reg ard t o al l cl ai m s ex cep t as t o b reach o f w arra n t y.

W i th reg ard t o t h at cl ai m , t h e t ri al co u rt fo u n d t h at th e Tru s t ha d b r e a ch ed t h e

1 Th e th ree o t h e r n a m ed i n d i v id u al s w ere d i sm i s s ed or pro t ect ed b y fi l i n g b an kru p t cy , s o t he cas e p ro ceed ed o n ly ag ai n s t Ri v ers an d t he Tru s t

.warran t y ap p eari n g i n th e s al es co n t ract

, an d i t g ran t ed s u m m ary ju d g m en t to

Rev in g t on as t o t h at cl ai m

. Th e cas e p ro ceed ed t o a ben ch t ri al on d am ag es , an d aft er

a h eari n g , t h e t ri al co u rt award ed Rev i n g t o n $ 2 0 8 ,3 1 8 .9 4.

Th e Tru s t ap p eal s , arg u i n g t h a t t h e t ri al co u rt erred b y g ran ti n g s u m m ary

ju d g m en t t o Rev i n g t o n o n th e i s s u e o f b reach of warran t y an d b y award i n g d am ag es

t o Rev i n g t o n b as ed o n t h at b reach

. 2 Fo r t h e reas o n s t hat fo l lo w, we rev ers e.

On ap p el l at e rev i ew o f a b en ch t ri al

, t h e fact u al fi n d i n g s s h al l n o t

b e s et as i d e un l es s cl earl y erro n eo u s , a n d d u e r e gard s h al l b e g i v en t o

t h e o p p ort u n it y o f t h e t ri al co u rt t o ju d g e t h e cred i b i l i t y o f t h e wi t n es s es

.
In b en ch tri al s , th e j ud ge s i t s as t ri er of fact [,] an d t h e c o urt ’ s fi n d i n g s

are an al o go u s to a ju ry ’ s v erd i ct an d sh o u l d n o t be d i s t u rb ed i f t h ere i s

an y ev id en ce t o s u p p o rt t h em

. 3

M o reo v er,

[s ] u m m ary ju d g m en t i s ap p ro p ri at e i f t h e p l ead i n g s an d ev i d en ce s h o w

n o g e n u i n e is s ue as to 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 ju dg m en t as a m at t er o f l aw. On ap p eal fro m t h e g ran t o r

d en i al o f s um m ary j u d g m en t, an ap p el l at e co u rt co n d u ct s a d e n o v o

2 Rev i n g t o n h as no t ap p eal ed fro m th e tri al co u rt ’ s g ran t s o f s u m m ary jud g m en t

as t o i t s o t h er cl ai m s

.

3 (Pu n ct u at i o n o m i tt ed .) Bo u r ke v. W eb b

, 2 77 G a. A p p

. 74 9 (6 2 7 SE2 d 4 5 4 ) (2 0 0 6), q u o t i n g Zh ou v. La Gr a n g e Aca d emy , 2 6 6 Ga. Ap p

. 4 45 , 4 49 (1 ) (5 9 7 SE2 d

5 2 2 ) (2 0 0 4 ).

2rev i ew, co n s t ru i n g al l reas o n ab l e i n feren ces i n t h e l i g h t m o s t fav orab l e

t o t h e n o n m o v in g p art y

. 4

It i s u n d i sp u ted t hat i n 20 1 3

, Ri v ers , o n b eh al f o f th e Tru st

, en t ered i n t o a

co n tract to s e l l 7

. 5 acres of l an d t o Rev i n gt o n. T h e Tru s t h ad acq u i red t h e l an d in

2 0 1 2 fro m Ri ch ard DeTh o m as , wh o h ad acq u i red t h e p ro p ert y in 2 0 05 fro m Cl i n t o n

an d Tam m y Sh eri ff. Acco rd i n g t o Ri vers , h e h ad “ n ev er wal k ed t h e pro p ert y ” b efo re

ag reei n g t o s el l i t t o Rev i n g t o n

.

In ad d it i o n t o v ari ou s o t h er p ro v i s i o ns o f t h e co n t ract

, t h e p ar t i e s ag reed

p u rs u an t t o “ Art i cl e 9 En v i ro n m en t al M at t ers ” t h at

A. Sel l er rep res en ts an d warran t s t o Pu rch as er o n th i s d at e an d as o f th e

Cl o s i n g Dat e, t h at :

(i ) Sel l er h as at al l t im es co m p l i ed wi t h

, a n d h as n o t v i o l at ed i n

co n n ect i o n wi t h th e o wn ers h i p , u s e, m ai n t en an ce o r o p e rat i o n o f th e

Pro p ert y an d t h e co n du ct o f t h e b u s i n es s rel at ed t h eret o , an y ap pl i cab l e

fed eral

, s t at e, co u nt y o r lo cal l aws , reg u l at i o n s , ru l es , o rd in an ces , co des

,

s t an dard s , o rd ers , l i cen s es an d p erm it s of an y g ov ern m en t al au th ori t i es

rel at in g t o en v i ro n m en t al m at t ers

.

4 (Fo o t n o t e s an d pu n ct uat i o n o m i tt ed .) Da n J. S h eeh a n Co

. v. F

ai r l a wn o n Jo n es Ho meo wn er

s As s n

. , 3 1 2 Ga. Ap p . 7 8 7 , 7 8 8 (7 20 SE2 d 2 5 9 ) (2 0 1 1 ).

3B. Sel l er rep res en t s t hat t o i t s k no wl ed g e an d b el i ef o n t h i s an d as o f th e

Cl o s i n g Dat e t h at :

(i ) No Hazard o u s Su bs t an ce (as h erei n aft er d efi n ed ) ex i s t s o n o r u nd er

t h e Pro p ert y , an d t h at Sel l er, n o r a n y o f i t s p red eces so rs in t i t l e h av e

ev er u s e d t h e Pro p ert y fo r p ro ces s i n g , s to rag e or d i s p os al o f an y

Hazard o u s Su b s t an ce. T h i s warr a n t y s h al l s u rv i v e t h e cl o s i n g o f th e

t ran s act i o n co n t em

p l at ed h erei n an d sh al l n o t b e m erg ed wi th th e d eed

.

. . .

(i i) Sel l er an d an y o t h er p ers o n fo r wh os e co n d uct it i s o r m ay b e h el d

res p on s i b l e, h as at al l t i m es co m pl i ed wi t h

, an d h as n o t vi o l at ed i n

co n n ect i o n wi t h th e o wn ers h i p , u s e, m ai n t en an ce o r o p erat i o n o f th e

Pro p ert y an d t he b u s i n es s rel at ed t h eret o , an y ap p l i cab l e fed eral , s t at e,

co u n t y o r l o cal l aws , reg u lat i o n s , ru l es , o rd i n an ces , co des

, s t an d ard s ,

o rd ers , l i cen s es an d perm i t s o f an y g o v ern m en t al au t h ori t i es rel at i n g t o

en v i ro nm en t al m at t ers

. . . .

C. Sel l er an d Pu rch as er ag ree t h at t h i s Art i cl e Nu m ber sh al l s u rv iv e th e

cl o s in g

.

Aft er b eg i n n in g i t s d ev el o p m en t of t h e pro p ert y , Rev in g t o n d i s co v ered t h at a

l arg e n u m

b er o f o l d t i res an d o t h er d eb ri s h ad b een b u ri ed i n p i t s o n t he p ro p ert y

.

Rev in g t on arg u ed t o t he t ri al co u rt an d o n ap peal t h at t h i s co n s t i t u t ed a v i o l at i o n by

t h e Tru s t o f OCGA § 1 2 -8 -4 0 .1 (f), wh i ch p ro h ib i t s i n d i v i d ual s fro m “ s t o ri n g ” m o re

4t h an 2 5 s crap t i res . Rev i n g to n ad m i t t ed , h owev er, t hat Ri v ers h ad n o k no wl ed g e o f

an d d i d n o t p l ace t h e ti res or o t h er d e b r i s o n th e p ro p ert y

. Rev i n g t o n fi l ed s u i t in

o rd er t o reco ver u nd er A rt i cl e 9 o f t h e s al es co nt ract

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

Tru s t was l i ab l e u nd er Art i cl e 9

, Sect i o n A (i ) b ecau s e t h e ex i st en ce o f t h e t i res an d

o t h er d eb ri s o n t h e p ro p ert y was i n v io l at i o n of v ari o u s l aws an d

, t h erefo re, a b reach

o f t h e warran t y un d er t h at s u b s ect i o n o f Art i cl e 9

.

Th e fi rs t ru l e t h at co u rt s m u s t ap p l y wh en co n s t ru i ng co n t ract s i s

t o l o o k to t h e pl ai n m e a n i n g o f t he w o rd s of th e co n t ract

, an d i t i s a

card in al ru le o f co nt r a c t co n s t ru ct i o n t h at a co u rt s h o u ld

, i f p o ss i b l e,

co n s t ru e a co nt ract s o as n o t t o ren d er an y o f i t s pro v i s i o n s m ean i ng l es s

an d i n a m an n er t h at g i v es effect t o al l o f t he co n tract u al t erm s

. W o rd s

g en eral l y b ear t h ei r u s u a l an d co m m o n s i g n i fi cat i o n; b u t t ech n i cal

wo rd s , wo rd s o f art

, o r wo rd s u sed i n a part icu l ar t rad e o r b u s in es s wi l l

b e co n s t ru ed

, g en eral l y , t o b e u s ed i n referen ce t o th i s p e c u l i ar

m ean i n g

. 5

Beari n g t h es e ru l es i n m i n d

, t h e t ri al co u rt ’ s read i n g o f t h e co n t ract i s i n co rrect

.

In d eed

, Rev i n g t on ’ s arg u m en t o n ap p eal m ak es t hi s cl ear. Rev i ng t o n arg u es t h at t h e

Tru s t “ m ad e t h e ex pres s warran t y t h at t h e Pro p ert y h ad n o t b een us ed

, m ai n t ai n ed o r

o p erat ed i n an y w ay wh i ch v i o l at ed an y

. . . l aw,” an d t h e ex i s t en ce o f t he t i res o n t h e

5 (Fo o t n o tes an d p u n ct u at i o n o m i t t ed .) NW Pa r kwa y, LLC v. Lems er , 3 0 9 Ga. Ap p . 1 7 2 , 1 7 5 -1 7 6 (2 ) (7 0 9 SE2 d 8 5 8 ) (2 0 11 ).

5p ro p ert y co n st i t ut ed a v io l at i o n o f O CGA § 1 2 -8 -4 0 .1 (f). Bu t t h i s i s n o t wh at t h e

p l ai n l an g u ag e o f A r t i c l e 9, Sect i o n A (i ) st at es

. It s ay s t hat “ t h e Sel l er

. . . h as

co m p l ied wi t h

, a n d h as n o t v i o l at ed in co n n ect io n wi t h t h e o wn ers h i p , u s e,

m ai n t en an ce o r o p erat i on o f t h e Pro p ert y ,” wh i c h i n d i c at es t h at t he T ru s t was

warran t i n g t h at i t h ad n o t t ak en an y act i o n t o v i ol at e th e law wi t h reg ard t o t h e

p ro p ert y , n o t t hat i t had t ak en s t ep s t o d i s co v er an d rem ed iat e an y ex is t i n g h i d d en

i s su es cau s ed b y p rev i o u s o wn ers

. 6 Th e p ro vi s i o n d o es n o t s t at e t h at Sel l er warran t s

t h at al l p rev i o u s o wn ers h ad co m p l i ed w i t h ap p l i cab l e l aws o r t h at t he Pro pert y was

free fro m h i d d en en v i ro n m en t a l c o n t a m i n at i o n

. Had Rev in g t o n wi s hed fo r s u ch a

warran t y , i t s h o ul d h av e d em an d ed s u ch a p ro v i s i on

.

M o reo v er, Rev i ng t o n d i d n o t p res en t an y ev i d en ce t hat t h e Tru s t v i o l at ed

Art i cl e 9

, Sect i o n B b ecau s e i t s t at es t h at “ Sel l er rep res en t s t h at t o i ts k n o wl ed g e an d

b el i ef” th at n o en v i ro nm en t al h azard s ex i st o n th e pro p ert y , an d Rev i n g t o n ad m i t t ed

6 (Em ph as i s s u p p li ed ). W e n o t e t hat a b reach o f warran t y i s no t n eces s ari l y an i n t en t i o n al act

, ho wev er, t he o p erat i v e i s s u e h ere i s n o t wh e t h e r s t ri ct l i ab i l i t y i s

ap p ro p ri at e b u t w het h er t h e p l ai n l an gu ag e o f t h e warran t y ap p l i es t o t h i s s i t u at i o n. Co m p are wi t h Ta

yl o r Mo r r i so n S

vcs

. v. HDI-G e rl i n g A m er i ca n In s

. Co

. , 2 93 Ga. 4 5 6,

4 6 6 (2 ) (7 4 6 SE2 d 5 87 ) (2 0 1 3 ).

6t h at R i v ers h ad n o su ch k n o wl ed g e an d d i d no t creat e t h e h azard h i m s el f. 7

Acco rd in g ly

, t h e t ri al co u rt erred b y g ran t i ng s u m m ary j u d gm en t t o Rev i n g t o n as to

t h e b reach o f warran t y cl ai m an d

, t h ereaft er, b y award i n g a j u d gm en t t h ereo n ag ai n s t

t h e Tru s t

.

Ju d g men t r ever sed . Di l l a r d

, C. J., a n d Mer ci er

, J., co n cu r

.

7 S ee Ma s i n t er v. Sa l em Ro a d As s o cs

. , 2 4 0 Ga. Ap p. 5 22 (5 2 2 SE2 d 5 6 2 ) (1 9 9 9). W e are no t p ers u ad ed b y Rev in g t o n ’ s arg u m en t t h at t h i s cl au s e s erv es an i m p o rt an t ri s k -s hi ft i n g p u rp o s e. Rev i n g to n h ad t h e ri g h t t o s u rv ey an d i n sp ect t h e

p ro p ert y p ri o r t o c l o s i n g , an d b ecau s e Rev i n g t o n k n ew i t wo u l d b e p erfo rm i n g

co n st ru ct i o n o n t h e pro pert y w h i ch wo u l d in cl ud e d i s t urb i n g t h e s o i l

, Rev i ng t o n was i n t h e b es t p o s i t io n t o s h i f t i t s o w n r i s k b y ch eck in g fo r s u b t erran ean h azard s p ri o r

t o cl o si n g an d wi t h drawi n g fro m t h e co n tract d u ri n g t h e d u e d i l i gen ce p eri o d h ad i t
fo u n d s u ch h azard s

.

7