FI RST DI VI SI ON

DOYLE, C. J.

, PHI PPS, 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

M ar ch 2, 2016



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A1 5 A2 0 4 1

. M OSAIC BUSINESS ADVISORY SERVICES, INC.

v . STONE. DO-1 0 0

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

Fo l l owi n g a ju ry tri al

, M o s a i c Bu s i n es s Ad v i s o ry Serv i ces

, In c., (“ M o s ai c”)

ap p eal s fro m a m o n et ary award i n fav o r of co -fo u n d er L e e A n n S t o n e i n h er s u i t

ag ai n s t M o s ai c a l l e g i n g

, i n rel ev an t p art

, b reach o f an ag reem en t to p ay h er a

p ercen t ag e o f pro fi t fro m co n s u l t i n g wo rk s h e o ri g in at ed an d p erfo rm ed o n b eh al f o f

M o s ai c. Mo s ai c co n t en d s t h at t h e t r i a l co u rt erred b y d en y i n g i t s m o ti o n s fo r a

d i rect ed v erd i ct an d ju d g m en t n o t wi t h s t an d i n g t he v erd i ct ( “ J N OV”), as wel l as

d en y i n g i t s req u es t fo r a ju ry ch arg e o n t h e en fo rceab il i t y o f p ro m i ses t o p ay fu t u re

co m p en s at i o n

. M os ai c p red i cat es al l o f th es e arg u m en t s o n t h e g ro un d s t h at (1 ) t h ere

was i n ad eq u at e co n si d erat i o n

, (2 ) t h e al l eg ed ag reem en t was t oo inde f ini t e t o en fo rce,an d (3 ) St o n e term in at ed t he co m p en s a t io n neg o t iat i on s pri o r t o reach i n g an

en fo rceab l e ag reem en t . Fo r t h e reas o n s t h at fo l l o w, we affi rm

.

W h ere a ju ry ret urn s a v erd i ct an d i t h as t h e ap p ro val o f t h e t ri al

ju d g e, t h e s am e m

u s t b e affi rm ed o n ap p eal if t h e r e i s an y ev i d en ce t o

s u p p o rt i t as t h e ju ro rs are t h e s o l e an d ex cl u s iv e ju dg es o f th e wei g h t

an d cred i t g i ven t h e ev i d en ce. Th e ap p el l at e co u rt m u s t co n s t ru e th e

ev i d en ce w i t h ev ery i n f

e r e n ce an d p res u m

p t i o n i n fav o r o f u ph o l d i n g

t h e v erd i ct

, an d aft er ju d g m en t

, t h e ev id en ce m u s t b e co n s tru ed t o

u p h o l d t h e v erd i ct ev en wh ere t h e ev i d en ce i s i n co n fl i ct

. As l o n g as

t h ere i s s o m e ev i d en ce t o s u p p o rt t h e v erd i ct

, t h e d en i al of d efen d an t ’ s

m o t i o n fo r di rect ed verd i ct

, n ew t ri al an d [J NOV] wi l l n ot b e d is t urb ed

. 1

S o v i ewed

, t h e ev i d en ce s h o ws th at i n 2 0 10

, St o n e an d M erri ck Ol i v es l e f t

t h ei r p o si t i o n s at an es t ab l i s h ed co n s u lt i n g fi rm t o fo rm t h ei r own co n s ul ti n g fi rm

,

M o s ai c Bu s i n es s Ad v i s o ry Serv i ces

, In c. In i ti al l y

, St o n e an d Ol iv es d i s cu s sed h av i n g

a 4 9 / 5 1 p ercen t own ers h i p i n fav o r o f O l i ves

, wh o i s Hi s pan i c, s o t h at M o s ai c wo u ld

h av e a raci al m i n o ri t y o wn ers h i p st at u s

. Bu t wh en St o n e en d u red fi n an ci al d i ffi cu l t y

cau s i n g her t o fi l e fo r b an k ru pt cy

, t h e t wo d eci d ed t h at Ol i v es wo u l d fu n d th e s t art -u p

p ro ces s an d b e t h e s ol e s h areh o l d er. N e v e r t h e l e s s

, S t o n e a n d O l i v e s w e r e b o t h

1 (Pu n ct u at i o n o m i t ted .) In s

. In d u s

. Co n su l t a n t

s

, LLC v. A lf

o r d

, 2 9 4 Ga. Ap p.

7 4 7 (6 6 9 SE2 d 7 24 ) (2 00 8 ), q u ot i n g Ga n t t v. Ben net t

, 23 1 Ga. Ap p

. 2 38

, 2 40 (1 ) (4 9 9

SE2 d 7 5 ) (1 9 9 8 ).

2o ffi cers an d d i rect o rs wi t h eq u al v o t i n g p o w er o n t h e b o ard , an d th ey o ral l y ag reed

t h at t h ey wo u ld b ot h m ak e d eci s i o ns jo i nt l y

, i n cl u di n g h av in g eq u al au t h o ri t y as to

co m p en s at i o n

. As Ol i v es d es cri b ed i t,

we

. . . ag reed t o ru n

–

o n a d ay -t o -d ay m an ag em en t p ers pect i v e t o ru n

[ t h e co m p an y ] as

. . . eq u al d ay -t o -d ay m an ag ers

. I fel t l ik e

– we b o t h

fel t l i k e t h at wo u ld b e t h e b es t way t o ru n th e co m p an y

. So we b o t h

co u l d m ak e d eci s i o ns ab o u t , y o u k n o w, h i ri n g

, fi ri n g

, b u d g et s

, al l t hat

k i n d o f s t u ff as eq ual p eers

, b ut fro m an o wn ers hi p s t an d p o i n t

, I was th e

s o l e o w n er.

Co n s i s t en t wi t h th i s

, M o sai c’ s b y l aws p ro v i d ed t h at th e b oard o f d i rect o rs (co m p o s ed

eq u al l y o f O l i v es an d St o n e) was res p o n s i bl e fo r fi x i n g t h e s al ari es o f o ffi cers

, an d

Ol i v es ag reed t h at co m

p en s at i o n d eci s i o n s wo u l d b e m ad e jo i n t l y

.

In i t s fi rs t y ear, th e y o un g co m p an y was n o t pro fi t ab l e

, b u t b y l at e 2 0 1 1

, t h e

co m p an y ’ s rev en ue w as s u ffi ci en t fo r St o ne an d Ol i v es t o t a k e a n n ual s al ari es o f

$ 1 9 5 ,0 0 0

. St o ne an d Ol i v es al s o d i scu s s ed h o w to d is tri b u t e 2 0 11 b o n u s es

, an d t h ey

u l t i m at el y ag reed t h at St o n e, wh o h ad o ri g i n at ed t h e m ajo ri t y o f M o s ai c’ s b u s i n es s

,

wo u l d recei v e a p ay o ut o f $ 2 3 4 ,4 4 2 .0 9

, an d Ol i v es wo u l d r e c ei v e $ 3 2 ,5 4 9 .9 0 in

ad d it i o n to $ 8 0 ,6 3 6

. 3 9 as deb t rep ay m en t

. T h e ag reem en t o v er t h es e n u m bers was

refl ect ed i n a s eri es o f em ai l s i n l at e Decem b er 20 1 1 an d earl y J an u ary 2 0 1 2 b et ween

3Ol i v es an d St o n e, i n cl ud i n g Ol i v es ’ s s t at em en t t h at “ [o ] u r ag reem en t wa s t o cl o s e

2 0 1 1 b y d i s t ri b u t i ng t h e es t i m at ed 2 01 1 t ax ab l e i n co m e [acco rd i ng t o cl i en t

o ri g i nat or] an d ret i ri ng t h e d eb t ,” res u l t i n g i n t h e p ay m en t am o u n t s s t at ed ab o ve.

Ol i v es al s o em ai l ed t h i s i n fo rm at i o n t o t h ei r acco u n t an t

, wi t h a co p y t o St o n e, s t at i n g,

“ [y ] o u p ro b ab ly g o t t h is fro m [St o n e] al read y

, b ut

. . . [h ] ere [are] th e fi n al n u m b ers

we d eci d ed [o n ] t o cl os e o u t 2 0 1 1

. ”

A few d ay s l at er, i n J an u ary 2 0 1 2, St o n e an d Ol i v es be g a n h a v i n g

d i s ag reem en t s ab o u t 2 0 1 2 co m p en s at i o n

. A s p art of t h at p ro ces s

, O li ves d eci d ed n ot

t o pay St o n e t h e fu l l am o u n t o f h er 2 0 1 1 bo n u s

, i n s t ead p ay i n g h er $ 1 2 5 ,0 0 0 b ecau s e

o f l i m i t ed cas h o n h an d an d becau s e h e t h o ug h t s h e m i g ht be i n t he p ro ces s o f l eav i n g

M o s ai c an d t ak i n g t h e cl i en t s

. 2 On J an u ary 1 7

, 2 0 1 2

, Ol i v es t erm i n at ed St o n e, b as ed

o n h i s u nd ers t an d i n g o f h i s au t h o ri t y as s o l e s h areh o l d er.

Th e n ex t d ay

, Ol i v es an d St o n e ex ch an g ed em ai l s an d ap o l og i es

, ag reei n g t o

co n ti n u e d i s cu s si o ns ab o ut co m p en s at i on s o t h at St o n e wo ul d co n ti n u e her wo rk o n

b eh al f o f M o s ai c an d i t s cl ien t s

. In t h e fo l l owi n g week s

, t h e t w o co nt in u ed o ral an d

em ai l co m

m u n i cat i o n s t o d et erm i n e h o w t o d i v i d e n e t p r o f i t s

, wi th St on e i n i t i al l y

2 St o n e s o u gh t p ay m en t o f t h e b al an ce o f her 2 0 11 b o nu s

, bu t t h e ju ry d ecl i n ed

t o award h er t h at p o rt i o n o f t h e d am ag es

. Th ere i s ev i d en ce t h at St o n e ag reed t o t h i s

rev i s ed am o u n t

.

4p ro p os i n g an 80 percen t p ay m en t t o t h e o ri g i n at i ng f o u n d e r, l eav i ng 2 0 p ercen t

rem ai n i n g in M o s ai c to fu n d o p erat i o n s

. Ol i v es v oi ced a co n cern t h at M o sai c n eed ed

a h i g h er m arg i n t o o p erat e an d s u g g es t ed a 5 0 p ercen t p ay m en t , wi t h t h e rem ai n i n g

h al f fu n d i n g o p erat i o n s. Di s cu s s i o n s co n t in u ed t h ro u g h t h e en d o f J an u ary 2 0 1 2

.

In t h e en s u in g week s, St o n e an d Ol i v es reach ed a co m p ro m i s e: 6 5 percen t o f

t h e n et p ro fi t wo u l d b e p ai d t o t h e fo u n der i n ch arg e o f t h e p ro ject , wi t h 3 5 p ercen t

rem ai n i n g i n t h e co m

p an y fo r op erat i o n al ex p en s es

. As t h e y t r i e d t o fi n al i ze o t h er

d et ai ls s u ch as t h e t i m i n g of p ay m en t s

, m i n i m u m cas h res erv es M os ai c sh o u l d ret ai n,

a n d a n y s afeg uard s ad d res si n g t h e d ep art u re o f a fo u n d er, di s cu ss i o ns ab o u t t h o s e

t erm s d et eri o rat ed

, d es pi t e Ol i v es ’ s s t at em en t t h at “ I t h i nk it i s 9 5 % o f t h e way t h ere.”

By M ay 2 0 12

, St o n e h ad co n t i n u ed t o wo rk at M o s a i c, an d t h ei r d i s cu s s i on s

cu l m i n at ed i n t h e fo l l o w i ng ex ch an g e reg ard i ng l i q u i d it y res erv es

, ti m i n g

, an d

fo u n der d ep art u re:

St o n e: Here are m

y g en eral th o u g h t s ad d ed t o y o u r co m m en t s bel o w. I

t h o u g h t y ou m i g h t w an t t o s ee m y t h o u g h t s s o y o u t oo can th i n k ab o u t

i t b e f o r e we t al k o n W ed n es d ay

. W e b o t h ack n o wl ed g e t h at we h av e

d i fferen t vi ews o n t hi s

, an d I am as s u m i n g t h at y o u wan t as I d o t o co m e

t o a m u t u al l y b en efi ci al co m

p ro m i s e. If y o u h av e an im m ed i at e res p o n s e

t o an y o f t h i s

, p l e a s e feel free t o s en d i t al o n g ; ot h erwi s e, we can t al k

t h ro ug h i t m o re o n W ed

.

5Ol i v es : I’ m t ired o f t al k i n g ab o u t t h is

. I h av e n o i nt en t to fi re y o u

, h av e

ag reed t o 6 5 % o f m arg i n s

, an d t h e Co m p an y wi l l p ay i t o u t wh en i t h as

t h e cas h

. Yo u hav e t o d eci d e i f t h at ’ s g o o d en o ug h fo r y o u an d t h at y o u

are i n t h i s fo r t h e lo n g h au l

. If n o t, we can h av e a d i fferen t co n v ers at i o n

o n W ed n es d ay

.

St o n e: W o w, t h at ’ s n o t t h e res po n s e I w as ex pect i n g

. . . I s ee th at y o u

can cel l ed W ed n es d ay ’ s m eet in g

. T han k s a l o t. I k n o w th i s a g reem en t

d o es n ’ t m at t er t o y o u

, bu t i t d i d t o m e. I can see t h at y ou are s t i l l

co m p l e t e l y an g ry ab o u t t h e ev en t s o f l as t y ear

– ev en t s w h i ch y o u

cl earl y h o l d m e res po n s ib l e fo r

– s o ju st fo rg et ab o u t t h e co m p en s at i o n

ag reem en t . Yo u wo n ’ t h av e t o t al k ab o u t i t ag ai n.

At t ri al

, St o n e t es t i fi ed t h at t h i s refl ect ed h er v i ew t h at t hey h ad al read y ag reed

t o t h e percen t ag es as t o b o n u s co m p en s at i o n

, an d a wri t t en d o cu m en t d e t a i l i n g t h e

o t h er t erm s (t i m i n g

, o p erat i n g res erv es

, an d fo u n d er d ep art u re) was n ot neces s ary to

en fo rce t h e b o n u s co m

po n en t. Co ns i s t e n t w i t h t h i s t es t i m o n y

, t h e em ai l ch ai n

i n cl u d ed a m

u t u al a g r e e m e n t o n t he p ercen t ag es as wel l as Ol i v es ’ s s t at em en t t h at

,

b as ed o n cl i en t ori gi nat i o n a n d wo rk

, St o n e wo u l d b e t h e o n ly fo u n d er el i g i b l e to

recei v e b o n u s co m

p en s at ion s ch ed u l ed fo r J u l y 2 0 1 2

, an d t hat St o n e s h o ul d “ res t eas y

t h at th e Co m

p an y s h o u l d hav e p l en t y o f cas h t o p ay y ou r Ju l y b on u s i f cu rren t

6recei v ab l es co m e i n a ti m el y m an ner .” As o f J u n e 3 0

, 2 0 1 2

, M o s ai c’ s rev en u e

acco u n t had a b al an ce o f $ 3 2 8

, 1 4 3 .7 9

. 3

Th ro u g h o u t t h i s pro ces s

, St o n e c o n t i n ued to wo rk at M o s ai c b as ed o n h er

b el i ef t h at th ey h ad ag reed t o 6 5 p ercen t b o n u s p ay m en ts . By t he en d o f M ay

2 0 1 2,

St o n e was ab l e t o re n e w a l arg e cl i en t ’ s an n u al co nt ract fo r ap p ro x i m at el y $ 1

. 4

m i l l io n wo rt h o f co n s u l t i n g s erv i ces

.

In m i d-J u n e 2 01 2

, Ol i v es cal l ed St on e ex p r e s s i ng h i s des i re t o u n wi n d t h e

b u s i n es s

. Sh ort l y b efo re t h at t el ep h o n e cal l, Ol i v es h ad as ked St o ne to i den t i fy wh at

cl i en t w o rk s h e was ex p ect in g

, a n d s h e res p o n d ed

, l i s t i n g her cu rren t an d ex p ect ed

wo rk

. Li st i n g t ho se c o n t act s, Ol i v es d raft ed a 12 -m o n t h n o n -co m p et e ag reem en t

,

o ffered St o n e $ 1 2 5,0 0 0, an d s u g g es ted sh e h i re co u n sel fo r t h e u n w i n d i n g. On J u l y

3

, 2 0 1 2

, O l i v es ’ s co u n s el s en t St o n e a l et t er d em an di n g t h at s h e ceas e an d d es i s t an y

b reach es o f h er fi d u ci ary d u t y o wed t o M o s ai c, an d o n J u l y 6

, 2 0 1 2

, St o n e t en d ered

h er res i g n at i o n l et t er.

Aft er h er d ep art u re, St o n e s o u g h t p ay m en t of t h e rem ai n in g p o rt i o n o f h er 2 0 1 1

b o n u s as wel l as t h e u n p ai d m i d -y ear b o n u s sch ed u l ed fo r J u l y 20 1 2

. W h en M o s ai c

d i d n o t p ay

, St on e s u ed Ol i v es an d M o s ai c, as s ert i ng cl ai m s fo r d ecl arat o ry ju d g m en t

3 At t ri al , St o ne cal cu l at ed h er 2 0 1 2 m i d -y ear b o n us t o b e $ 2 8 5,2 2 3

.

7as t o St on e’ s i n t eres t as a s h areh o l d er, b reach o f co nt ract

, u n ju s t en ri ch m en t

, b reach

o f f i d u ci ary du t y

, frau d ul en t i nd u cem en t, an acco un t i n g

, an d a co ns t ru ct i v e t ru s t

.

Fo l l o wi ng d i s co v ery

, t h e cas e was t ri ed b y a ju ry wh ich fo u n d i n fav o r o f St o n e o n

h er b reach o f co n t ract cl ai m fo r t h e 2 0 1 2 m i d -y ear b o n u s

, award i n g h er $ 2 4 5 ,7 2 3 .0 9.

T he ju ry fo u n d i n fav o r o f t h e d efen d an t s o n al l o t h er cl ai m s. M o s ai c n o w ap p eal s

,

ci t i n g as erro r t h e t ri al co urt ’ s d en i al of i t s m o t i o n s fo r a d i rect ed v erd i ct an d J NOV,

as wel l as t h e t ri al co u rt ’ s refu s al t o i n s t ru ct t h e ju ry o n t he en fo rceab i l i t y o f p ro m i s es

t o p ay fu t u re co m

pen s at i o n

.

1

. M o s ai c co nt en d s t hat th e al l eg ed p ro m i s e o f a 2 0 1 2 m i d -y ear bo n us was n ot

en fo rceab l e b ecau s e i t d i d n ot o ccu r at t he b eg i n n i n g of St o n e’ s em p l o y m en t wi th

M o s ai c an d was t h erefo re a m ere g rat u i t y l ack in g co n s id erat i on

. 4 W e d i s ag ree, b as ed

o n t h e fact s b efo re u s.

As a g en eral m at t er, i t i s t ru e t h at wh en

o n e un d ert ak es to p erfo rm fo r an o t her s erv i ce or l ab o r fo r a g i v en su m

,

an y am o un t p ai d i n ex ces s o f t h at s u m

, n o t b a s e d u p o n a new

co n s i d erat i o n

, i s a m ere g rat u i t y

. Su ch a p ro m is e, m ad e at t h e beg i n n i n g

4 See Ar b y’s

, In c. v. Co o

per

, 2 6 5 G a. 2 40

, 2 4 1 (4 5 4 SE2 d 48 8 ) (1 99 5 ) (“ To b e

en fo rceab l e, a p ro m i s e o f fu t u re co m p en sat i o n m

u s t b e m ad e at t h e b eg in n i n g o f t h e

em pl o y m en t .”).

8o f t h e em p l o y m en t

, i s en f

o r c e a b l e

, th o ug h it wo u l d n o t b e i f ma de

p en d i n g t h e t er m o r aft er t h e p erfo rm an ce was co m p l et ed

. 5

Bu t M os ai c’ s ap p l i cat i o n o f th i s ru l e o v ers i m pl i fi es t h e pres en t fact u al co n t ex t

, wh i ch

i n v o l v ed a n eg o t i at i o n b et ween co m p an y fo u n d ers an d d i rect o rs o v er t h ei r

co m p en s at i o n p ack ag e, wh i ch n eg o t i at i o n aro s e at t h e t i m e o ne was t erm in at ed an d

s u b s eq u e n t l y res um ed h er po s i t i o n fo r t h e p u rp o s e o f co m i n g t o t erm s ab o ut

co m p en s at i o n

. W h en v i ewed i n t h e l i g h t m o st fav o r a b l e t o St o ne, 6 t h es e fact s

au t h o ri zed t h e ju ry t o fi nd a q u i d p ro qu o – t hat St o n e wo u l d rem ai n at Mo s ai c in

ret u rn fo r an ag reed -u p o n co m p en s at io n p ack a g e

– s u ffi ci en t t o es t ab l i s h

co n si d erat io n an d an en fo rceab l e b on u s ag reem en t

. St o n e s p eci fi cal l y t es ti fi ed t h at

s h e n ev er w o u l d h av e rem a i ned at M o s ai c h ad s he no t u nd ers t o od t h ere t o b e an

ag reem en t at l eas t as t o th e 6 5 p ercen t b o n us p ay m en t s

, an d Ol i v es ’ s em ai l s refl ect

5 (Pu n ct u at io n o m i tt ed ; em ph as i s i n o ri g i n a l

. ) BDI La g un a Ho l d i ng s

, In c. v.

Ma r s h

, 3 0 1 Ga. Ap p. 6 56

, 6 5 8 (1 ) (6 8 9 SE2 d 3 9) (2 0 09 ), q u o t i n g Mg mt

. S ea r ch

, In c.

v. Mo r g a n , 1 3 6 Ga. Ap p. 6 5 1 , 6 5 3 (1 ) (2 2 2 SE2 d 1 5 4 ) (1 9 7 5 ).

6 See g en eral l y S

ca p a Dr ye r Fa b r i cs

, In c. v. Kn ig h t

, 3 3 2 G a. Ap p. 8 2

, 8 3 -8 4

(1 ) (7 7 0 SE2 d 33 4 ) (2 0 1 5 ) (“ Nei t h er a d irect ed v erd i ct n o r a [J NOV] can b e g ran t ed

wh ere t h ere i s so m e ev i d en ce to s u p p o r t t h e verd i ct

. W h ere ev i d en ce i s i n co n fl i ct

, t h e g ran t o f s u ch m o t i o ns i s erro r. On ly wh en t h ere i s n o ev i d en ce t o s u p p o rt t h e

v erd i ct can ei t h er a d i rect ed v erd i ct o r [ J NOV] be g ran t ed

, b ecau s e t h e ev i d en ce

d em an d s a v erd i ct co n t rary t o t h at ret u rn ed b y t h e ju ry .”).

9h i s ag reem en t wi t h t h at el em en t o f t h ei r n eg o t i at i o n s

, as wel l as h i s as s uran ce t h at

St o n e wo u l d b e p ai d a b o n u s i n J u l y 2 0 1 2 as d i scu s s ed

. As co rrect ly p o i n t ed o u t by

t h e t ri al co u rt

, th is Co u rt h as h el d u n d er an al o g ou s fact s t h at an em p lo y ee’ s co n t i n u ed

em pl o y m en t in t h e face o f a d ep art u re can co n s ti t ut e co n s i d erat i o n s u ffi ci en t t o m ak e

a m i d -t erm p ro m i se o f fu t u re co m p en s at io n en fo rceab l e. 7 Acco rd i n g l y

, b as ed o n t h e

reco rd b efo re u s, M o s a i c’ s arg u m en t t h at t h e v erd i ct was u nau t h o ri zed b as ed o n a

l ack o f co n s i derat i o n i s wi t h o u t m eri t

. 8

7 See, e.g

., Hi er

s v. Ch o icePo in t S

vcs

. , 2 70 Ga. Ap p . 1 2 8 , 1 2 9 (1 ) (6 0 6 SE2 d

2 9 ) (2 0 0 4 ) (“ co n t i n u ed em p l o y m en t co n s ti tu t es v a l i d co n s i d erat i on fo r t h e

co m m i s s io n s t h at [em

p l o y er] p ro m i s ed t o p ay ”); Ed wa r d s v. Gr a pef i el d s

, I n c.

, 2 6 7

Ga. Ap p

. 3 9 9 , 4 06 (2 ) (5 9 9 SE2 d 4 8 9 ) (2 0 04 ) (fi n d i n g “ ev i d en ce t hat [em pl o y ee’ s ]

s h ares were is s u ed i n ret u rn fo r a p ro m i s e o f h is co n t i n ued em p l oy m en t

, wh i ch wo u ld

co n st i t u t e v al i d co n s id erat i o n ”); Mo n Ami In t l

. , In c. v. G a l e

, 2 6 4 Ga. Ap p

. 7 3 9

, 7 4 3

(2 ) (5 9 2 SE2 d 8 3 ) (2 00 3 ) (“ [T] h e ad eq u acy of co n si d erat i o n m u s t b e t es t ed b y t h e

fact s an d co n d i t i o n s ex is t i n g at t h e t i m e t h e co nt ract was m ad e[, an d ] co n t i n u ed

em pl o y m en t co ns t i t u tes v al i d co n s id erat i o n[.] ”) (p u nct u at i o n o m i t t ed ). W e n o t e t h at

M o s ai c al s o en u m erat es a cl o s el y -rel at ed arg u m en t t h at “ a p ro m i s e t o p ay a b o n u s in

t h e fu t u re i s n o t en fo rceab l e u n d er a t erm i n ab l e-at -wi l l em p l o y m en t co nt ract .” S t o ver

v. Ca n d l e Co r

p. o f Amer i ca

, 2 3 8 Ga. Ap p

. 6 5 7, 6 5 9 (2 ) (5 2 0 SE2 d 7 ) (1 9 99 ). Bu t t h e

ev i d en ce s h o w s t h at th e b o n u s p ay m en t s St o n e s o u g ht were fo r wo rk s h e h ad al read y

p erfo rm ed fo r M o s ai c as o f Ju l y 2 0 1 2, aft e r a n a g r e em en t h ad b een reach ed as to

b o n u s p ay o u t s

. “ Ev en in an at -wi l l ag reem en t

, t h e em p l oy er i s n o t at l i b ert y to ch an g e

t h e ag reed rat e o f p ay aft er t h e as s o ci at ed wo rk h as b een p erfo rm ed .” Co x v. Er wi n

, 2 4 6 Ga. Ap p . 4 3 9 , 4 4 0 (2 ) (5 41 SE2 d 6 9 ) (2 0 0 0 ).

8 See S i ms v. Ba

ys i d e Ca p i t a l, In c.

, 3 2 7 Ga. Ap p

. 4 7

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

(2 0 1 4) (“ W h ere t h ere i s a co n fl i ct i n t h e e v i d e n c e a s t o t he ex i s t en ce o f an o ral

co n tract o r as t o i t s t erm s , t h e m at t er m us t b e s u bm i t t ed t o a ju ry fo r res o l ut i o n

. ”).

102

. M o s ai c al s o co n t en d s t h at an y ag reem en t as t o b o n u s p ay m en t s was t o o

i n d e f i n i te t o b e en fo rceab l e. 9 Mo s ai c p o i n t s t o th e on g oi n g d i s ag reem en t as t o t h e

m i n i m u m am o u n t o f l iq ui d i t y res erv es t h at Mo s ai c wo u ld m ai n t ai n

, an d arg u es t h at

t h i s res u lt ed i n n o ag reem en t as t o t h e p o o l fro m w h i ch t h e 6 5 p ercen t b o nu s wo u ld

b e d rawn

. Bu t t h ere was ev i d en ce s h o wi ng t h at t h e l i q u i d i t y cu s hi o n was a s et d o l l ar

am ou n t o f cas h res er v e s t h a t M o s ai c wo u l d m ai n t ai n

, 1 0 n o t t h e p o o l ag ai ns t wh i ch

b o n u s es wo u ld b e d rawn

. As s u ch

, t h e l i qu i d i t y cu s h i o n m i g h t b ear on t h e t i m i n g o f

p ay m en t s, b u t n ot t h e am o u n t

.

Th i s co n cl us i on i s s up p o rt ed by em ai l s fro m Ol i v es s t at in g h i s co n cern fo r

m ai n t ai n i n g a s u ffi ci en t op erat i n g cas h b u ffer an d

, as to t i m in g

, reas s u ri n g St o n e t h at

s h e s h o u l d “ res t eas y t hat t h e Co m p an y s h o u ld h av e p l en t y o f cas h t o p ay y o u r J u l y

b o n u s i f cu rren t recei vab l es co m e i n a t im el y m an n er.” As reco u n t ed b y Ol i v es i n an

em ai l t o St o n e, “ I

. . . h a v e a g r e e d t o 6 5 % o f m arg i n s

, an d [M o s ai c] wi l l p ay i t o ut

wh en i t h as t h e cas h.

. . W e’ v e t al k ed th ro u gh al l t hat an d en d ed u p a t 6 5 %. Yes

,

9 See Ar b y’s

, In c.

, 2 6 5 Ga. at 2 4 1 (“ [T] he p ro m i s e o f fu t u re co m p en s at i o n m

u s t

. . . b e fo r an ex act am o u n t o r b as ed up o n a [d efi n it e] ‘ fo rm u l a o r m et h o d fo r

d et erm i n i n g t h e ex act am o u n t o f t h e b o n u s.’ ”), ci t i n g Ch r i s t en s en v. Ro b er t s of

At l a n t a , 1 8 9 Ga. Ap p . 2 8 9 , 2 9 1 -2 9 2 (2 ) (3 7 5 SE2 d 2 6 7 ) (1 9 88 ).

1 0 Th e l at es t ro u nd o f em ai l s refl ect s an ag reem en t t hat t h i s am o un t wo u l d b e $ 5 0 ,0 0 0

.

11ag reed

, an d p l eas e rem em b er th at I t o o co m

p ro m i s ed .” Th ere al s o was t es t i m o n y fro m

O l i v e s t h at t h es e m arg i n s wo u l d b e cal cu l at ed acco rd i n g t o “ t o tal rev en u e l es s t h e

co s t ” a s s o ci at ed wi t h t h e p ro ject

, wh i ch co u l d be d et erm i n ed acco rd i ng t o t h e

fi nan ci al reco rd s k ep t fo r e a c h c l i en t acco u n t. Th erefo re, b as ed o n t h e ev i d en ce at

t ri al

, an y d i s ag reem en t as t o t he am o u nt of l i q u i d it y res erv es d i d n o t ren d er t h e b o nu s

ag reem en t t o o i n d efi ni t e t o b e en fo rced

.

M o s ai c al so arg u es t h at t h ere was n o ag reem en t as t o a m et h o d fo r d et erm i n i n g

b o n u s am o u nt s fo r h y

p o th et i cal p ro

ject s t h a t we r e sh ared or jo i n t l y ori g i n at ed

. Bu t

t h ere was ev i d en ce t h a t St o ne was th e s ol e o ri g i n at o r o f t h e acco u n t s g i v i n g ri s e to

t h e di s p ut ed b o nu s p ay m en t

, an d t h at Ol iv es h ad n o t m at eri al l y co nt ri b u ted t o t h o s e

acco u n t s. Fo r ex am

pl e, in an em ai l

, Ol iv es co n ced ed t h at St o n e was t h e o n l y p ers o n

el i g i b l e fo r a J ul y 2 01 2 b o nu s

. T h erefo re, an y u n cert ai n ty as to jo i n t p ro ject s d i d n ot

ren d er u n en fo rceab l e t h ei r ag reem en t as t o t h e J ul y 2 0 1 2 b o n u s p ay m en t

.

3

. Mo s ai c al s o arg u es t h at St o n e can n o t en fo rce t h e b o n u s ag reem en t b ecau s e

s h e term in at ed t he n eg ot i at i o n s b efo re an y ag reem en t w as fi n al i zed

. In l i g h t o f o u r

p reced i n g an al y s i s as t o t h e ag reem en t o n m at eri al t erm s o f t h e bo n u s s t ru ct u re, an d

t h e ev i d en ce s u p p ort in g St o n e’ s tri al tes t im o n y t h at s he b el i ev ed s h e h a d a n

ag reem en t as t o th e t erm s of bo n u s p ay m en t s an d t h at s h e wo u l d n o t h av e co n t i n u ed

12h er em

p l o y m en t at Mo s ai c ab s en t s u ch an ag reem en t

, t h i s arg um en t fai l s

. “ Becau s e

t h e fact fi n d er i n t h i s cas e fo u n d t h e ex is t en ce o f a co n tract

, t h e ap p el l at e co u rt s are

rel eg at ed t o t he p o s i t i o n o f d et erm i n i n g wh et her o r n o t t here w as an y ev i d en ce i n t h e

cas e t o s up p o rt t h at co n cl u s i o n .” 1 1 Al t h o u g h M o s ai c d i s p u tes t h at co n cl u s i o n b as ed

o n ot h er ev i d en ce, “ b ecau s e t h e ev i d en ce co nfl i ct ed , t h e t ri al co u rt p ro perl y d en i ed

[t he d efen d an t ’ s ] m ot i o n fo r a d i rect ed v erd i ct o n t h i s i s su e. Th e ju ry was no t req u i red

t o accep t [t h e d efen d an t ’ s ] ev i den ce. Th ere was s o m e ev i d en ce t o s u p p ort t h e ju ry ’ s

v erd i ct , an d o n t h i s g ro u n d we m u s t affi rm t he ju d g m en t en t ered o n t h at v erd i ct .” 1 2

4

. L a s t

, M o s ai c arg u es t hat t h e t ri al co u rt erred b y fai li ng t o i n s tru ct t h e j u r y

as fo l l o ws : “ In o rd er t o e n f o r c e a pro m i s e o f fu t u re co m p en s at io n

, Pl ai n t i ff m

u s t

p ro v e (1 ) t h at t h e p ro m i s e was m ad e at t h e b eg i n n i n g o f t h e Pl ai n t i ff’ s em p l o y m en t

an d (2 ) t h at t h e p ro m i s e was fo r an ex act am o un t o r b as ed u po n a fo rm u l a o r m et h o d

fo r d et erm in i ng t h e ex act am ou n t o f t h e b o n u s .” 1 3

1 1 (Pu n ct u at i o n o m i t t ed .) Ma s t er s v. Red wi n e

, 2 7 9 Ga. 4 3 2 (1 ) (6 15 SE2 d 1 1 8 )

(2 0 0 5).

1 2 Un d er g r ou n d F es t i va l v. McAf

ee En g

. Co

. , 21 4 Ga. Ap p. 2 43

, 24 6 (2 ) (4 4 7

SE2 d 6 8 3) (1 9 9 4).

1 3 See Ar b y’s , In c. , 2 65 Ga. at 2 4 1

.

13[E] v en i f we as su m e t h at t h e r eq u es t ed ch arg e was co rrect an d

p ert i n en t

, i t i s n o t n eces s ari ly erro r t o fai l t o ch arg e i t

. W e m u s t l o ok t o

t h e ch arg e as a wh o l e t o d e t erm in e wh et h er t he co u rt su b s t an t i al l y

co v ered t h e p ri n ci p l es em b o d i ed th erei n o r wh et h er i t w as s u ffi c i en t l y

o r s u b s t an t i al l y co vered b y t h e g en eral ch arg e. Fu rt h er, a p art y c a n n o t

s u cces s fu ll y co m

p l ai n ab o ut t h e refu s al to g i v e a req u es t ed ch arg e

u n l es s t h ey s a t i s fy t h ei r b u rd en o f s h o wi n g t h at th e refu s al was b o t h

erro n eo us an d h arm fu l

. 1 4

Here, t h e t ri al co u rt ’ s ju ry ch arg e i n cl u d ed t h e fo l l o wi ng i n st ru ct io n s :

To co n s t i t u t e a l a w fu l co n tract

, t h ere m u s t b e p art i es ab l e t o

co n t ract

, a co ns i derat i o n fo r t h e co n t ract

, t h e ag reem en t o f th e p art i es t o

t h e t erm s o f t h e co n t ract

, an d a l awfu l s ub ject m at t er.

A co n si d erat i o n is v al i d i f an y p ers o n wh o p ro m is ed is en t i t l ed t o

a b en efi t

. To co n s ti t u t e co n s i d erat i on

, a p er f o r ma n ce or r et u r n p r o mi s e

mu s t b e b a rg a in ed f

o r b y t h e pa r t i es t o a co n t r a ct

. A p er f o r m a n ce o r

r et u rn ed p r o mi s e i s b a r g a i n e d f o r i f i t i s so u g h t b

y o n e p a r t

y i n

e x c h a n g e f

or h i s o r h er p ro mi s e a n d is g i ven b y th e o t h er p a rt

y i n

exch a n g e f

o r t h a t pr o m i se. Pa s t co n s i d er a t i o n a l o ne ca n n o t s u

pp o r t th e

exi s t en ce o

f a co n t r a ct

.

. . . Un t i l bo t h p art i es h av e ag r e e d t o a l l o f i ts [s i c]

, t h ere i s n o

co n t ract u n t i l t h e co n tract i s ag reed t o

, a part y m ay wi t h d raw an o ffer o r

p ro p o s al

. . . .

1 4 Gi l es v. Heywa r d , 3 1 5 Ga. Ap p . 4 09 , 4 12 (4 ) (7 2 6 SE2 d 4 34 ) (2 0 1 2 ).

14Fo r an o ral co n t ract t o b e s u ffi ci en t l y

. . . d efi n it e t o b e en fo rced

,

t h e o ral co n t ract m

u s t h av e b een ex p res s ed i n l an gu ag e s u ffi ci en t l y p l ai n

an d ex pl i ci t t o co n v ey wh at t h e p art i es ag reed u p o n.

. . A co n t r act d o es

n o t exi s t u n t i l t he p a r t i es a g r ee on a ll ma t er i a l t er m s

. A co n t r act ca n n o t

b e en f or ced i f i t s ter ms a r e i n co mp l et e, va g ue, i n d ef in it e o r u n cer t a i n. 1 5

M o s ai c’ s req u es t ed ch arg e es s en t i al l y em p h as i zes t h at t h e t erm s o f a co n t ract

m u st n o t b e v ag u e o r un cert ai n an d t h at a p ro m i se o f co m p en s at i o n m

u st b e b as ed o n

s o m e v al i d co n si d erat i o n. 1 6 A s d em o n s t rat ed b y t h e em p h as i zed l an g u ag e a b o ve,

t h es e co n cep t s were s u bs t an t i al l y co v ered b y t h e i n s t ru ct i o n s g i v en b y t h e tri al co u rt

,

s o t h e co u rt ’ s fai l u re t o g i v e M o s ai c’ s req u es t ed ch arg e d o es n o t am o u n t t o rev ers i b l e

erro r.

Ju d g men t a f f i r m ed . Ph i

p p s , P. J., a nd

Bo g g s , J., co n cu r

.

1 5 (Em p has is s u pp l i ed .)

1 6 Cf. Hi er s

, 2 7 0 Ga. Ap p

. at 1 2 9 (1 ) (“ co n t in u ed em p l o y m en t co n s t i t u t es v al id

co n si d erat io n ”); Mo n A mi In t l

., In c.

, 2 6 4 G a. Ap p. at 7 4 2 -7 4 3 (2 ) (ad d res s i n g t h e

ad eq uacy o f co n s id erat i o n fo r an em p lo y m en t co n t ract ).

15