FI FTH DI VI SI ON

PHI PPS, P. J.

, DI LLA RD and PETERSON, JJ.

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

October 20, 2016



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A1 6 A1 47 5

. GREENBER G FARROW ARCHITECTURE, INC. v

. J M LS 1 4 2 2

, LLC

P E T E R S O N , J u d g e.

G r e e nbe r g F a r

r ow A r c hite c tur e

, I nc

. ( “ G r e e nbe r g F a r ro w ”) b ro u gh t this la

w suit

ag ai n s t J M LS 1 4 2 2

, L LC (“ JM L S”), al l eg i n g t h at J M LS h ad v i o l at ed t h e t erm s o f an

a g r e e m e n t reg ard i n g a p ark in g d eck

. T h e tri al co u rt g ran t ed J M LS’ s m o t i o n fo r

p art i al s u m

m ary ju dg m en t o n Gr e e n b e r g Farro w ’ s cl ai m s o f b reach o f co n t ract

,

co n vers io n

, an d d ecl arat o ry ju d g m en t. Green b erg Farro w ap pea l s

, a r g u i n g t h e t ri al

co u rt erred b y (1 ) fi n d i n g t h at t h e t erm s o f t he ag r e e m e n t a re am b ig uo u s ; (2 )

co n cl u d in g n o m at eri al i s su es o f fact reg ard i n g t h e i nt en t o f th e p art i es t o t h e

ag reem en t rem ai n ed; ( 3) c o nc ludin g t h at Green b erg Farro w wai v ed i t s ri g h t t o co n tes t

t h e m ean i n g of t h e pert i n en t ag reem en t p ro v i s i o n ; an d (4 ) g ran ti n g p art i al s u m m aryju d g m en t t o J M LS n o t wi t h s t an d i n g t h a t G r een b erg Farro w i s o w ed d am ag es ev en

u n d er t h e t ri al co u rt ’ s i n t erp ret at i o n o f th e ag reem en t

. Becau s e we ag ree t h at t h e t ri al

co u rt erred b o t h b y fi n d i n g t h e ag reem en t i n q u es t i o n am bi g u o u s an d b y fi n d i n g t h at

Green b erg Farro w wai v ed i t s ri g h t s as a m at t er o f l aw, we rev ers e t h e g ran t o f

s u m m ary ju d g m en t t o J MLS o n Green b erg Farro w’ s cl ai m s fo r b reach of co n t ract an d

d ecl arat ory

ju d g m en t . Becau s e Green b erg Farro w d o es n o t ch al len g e o n ap p eal t h e

t ri al co u rt ’ s g ran t o f s um m ary ju d g m en t t o J M LS o n Green b erg Farro w ’ s co n v ers i o n

cl ai m , we affi rm

t h at as p ect o f t h e co urt ’ s ru l i n g

.

Su m m ary ju d g m en t is p ro p er w h e n t h e r e i s n o gen u in e is s u e o f m at eri al fact

an d t h e m o v an t i s en t i tl ed t o ju d g m en t as a m at t er o f l aw. OCGA § 9 -1 1 -5 6 (c). W e

rev i ew a g ran t o r d en i al o f s u m m ary ju d g m en t d e n o v o an d co n st ru e t h e ev i d en ce in

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

. Ho me Bu i l d er s As s ’n of S

a va n n a h v.

Ch a t ha m Ct

y.

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

So v i ewed

, J o hn M ars h al l Law Sch o o l (“ J o h n M ars hal l ” o r “ t h e Law Sch o o l ”)

i n 1 9 9 6 p u rch as ed two b u i l d i ng s

, 1 4 2 2 W es t Peach t ree St reet (“ t h e 1 4 2 2 Bu i l d i n g ”)

an d 1 43 0 W es t Peach t ree St reet ( “ t h e 1 4 3 0 Bu i l d in g ”), al o n g w it h a p ark in g d eck

l o cat ed b eh i n d t h e b ui l d i n g s

. S ee P a r ki ng Deck, LLC v. An vi l Co r p

. , 2 5 9 Ga

. Ap p.

1

, 1 (5 7 6 SE2 d 2 4 ) (2 0 0 2 ). Th e Law Sch o o l t h en en tered in t o a pu rch as e ag reem en t

2t o sel l t he 14 3 0 Bu i l di ng an d eas em en t ri g h t s i n t h e p ark in g d eck p ro p ert y t o An v i l

Co rp o rat i o n (“ An v il ”). See i d. 1 Th e R e c i p r o cal Eas em en t Ag reem en t (“ t h e REA”)

en t ered in t o b y t he Law Sch o o l an d A n v il o n Oct o b er 1

, 1 9 96

, g av e An v i l an

eas em en t p erm i t ti n g t h e u s e o f 1 2 0 o f t h e d eck ’ s 2 5 4 p ark i n g s p aces

, “ at no ad d i t i o n al

ch arg e to An v il ” ex cep t fo r cert ai n d efi n ed m ai n t en an ce an d s ecu ri t y ex p en s es

. Th e

REA al s o d i v i d ed cert ai n ex pen s es an d p ro fi t s fro m t h e p a r k i n g d eck b et ween t h e

Law Sch o o l an d An v i l :

5 .2 Exp en s es a n d

Pr o fi t s o f Pa rki n g Deck

. Ex p e n s e s of p ers on n el an d

s ecu ri t y s urv ei ll an ce (t he “ Secu ri t y Ex p en s es ”) an d p ro fi t s o f op erat i o n s

rel at in g to t h e p ark i n g l o t s h al l be al l o cat ed b et w een t h e p art i es

, 6 7% t o

J o h n M a rs h al l an d 3 3% t o A n v il

. Al l o th er ex p en ses

, sp eci fi cal l y

,

ro u t in e m ai n t en an ce an d st ru ct ural rep ai r s ( t h e “ M ai n ten an ce

Ex p en s es ”), i f n eces s ary

, rel at ed t o t he park i n g l o t s h al l b e al l o cat ed

b et ween t h e p art i es o n a 5 0 %/ 5 0 % b as i s

. An v i l s h al l rei m b u rs e Jo h n

M ars h a l l f

o r i t s p ort i o n o f t h e M ai n t en an ce an d Secu ri t y E xp en ses

1 Th e Law Sch o o l l at er tri ed t o s el l t h e 1 4 30 b u i l d i n g t o s o m eo n e el s e, cl ai m i n g

i t s t i l l o wn ed t h e b u i ld in g b ecau s e t h e cl os i n g was n o t fi n al i zed an d t h e d eed was n ot

reco rd e d

, b u t a ju ry t h at h eard An v i l ’ s s u it ag ai n st t h e Law Sch o o l det erm i n ed t h at

An v i l was t h e ri gh t fu l o wn er of t h e p ro p ert y

. S ee Pa r ki n g Deck

, 2 5 9 Ga. Ap p

. at 1 -2

. Th e Law Sch o o l an d A n vi l su b s eq u en tl y en t ered i nt o an ag reem en t reg ard i n g t h e

b u i l d i n g fi nan ci n g

. Id

. at 2

. A t h i rd p art y l at er su ed An v il s eek in g a decl a r a t o r y

ju d g m en t th at An v i l h ad n o eas em en t r i g h t s in t h e d eck

, b u t we u p h el d a ru l i n g

g ran t i n g s u m

m ary ju d gm en t t o An v i l

. Id

. at 3 -4 (2 )-(3 ).

3wi t h in 3 0 d ay s o f recei p t o f a s t at em en t fro m J o h n Mars h al l ev i den ci n g

s u ch ex p en ses

.

Th e REA p ro vi d ed t h a t t he Law Sch o o l res erv ed “ fo r i t s el f an d i ts res p ect i v e

s u cces s o rs an d as s i gn s

, t h e ri g h t t o u s e t h e

. . . Park in g Deck

. . . fo r t h e p u rp o s es fo r

wh i ch s u ch areas h av e b een es t ab l i sh ed an d fo r an y ot h er p u rp o ses wh i ch are n ot

i n co n s i s t en t wi t h t h e g ran t o f t h e eas em en t s

. . . .” Th e REA al s o p ro vi d ed t h at t h e

p ark i n g g arag e “ s h al l at al l t i m es b e o p erat ed i n a m an n er co n s is ten t wi t h t h e

o p erat i o n of ot h er g arag e faci l i ti es i n c o m p arab le o ffi ce bu i ld i ng s i n At l an t a,

Geo rg i a.”

Own ers hi p o f b o t h th e 1 4 2 2 Bu i l d i n g an d t h e p ark i n g d eck s u b s e q u en t l y

ch an ged h an d s m

u l t i pl e t i m es

. Pa r

ki n g Deck

, 25 9 G a. A p p

. at 1 -2

. In 2 0 0 3

, J M LS

p u rch as ed t h e 14 2 2 Bu i l d i n g an d t h e p ark i n g d eck

, i n cl u d i n g J oh n Mars h al l’ s ri g h t s

u n d er t h e REA. At t h e ti m e, th e Law Sch o o l was l eas i n g s p ace i n t h e 1 4 22 Bu i l d i n g

fro m an o t h er en t i t y

, an d i n M arch 2 0 0 3 i t en t ered i nt o a l eas e ad den d u m w i t h J M LS

as t h e n ew l an d lo rd

. In h is Ru l e 3 0 (b )(6 ) d ep o s it i o n o n b eh a l f o f J M LS, M i ch ael

M ark o v it z 2 t es t i fi ed t h at u s e o f t h e p ark i n g d ec k w a s i n cl u d ed i n t h e Law Sch o o l ’ s

2 M ark o vi t z t es t i fi ed t h at h e i s p res i d en t o f J MLS an d a m em ber o f t he b o ard

o f d i rect ors o f t h e Law Sch o ol

.

4ren t

. Th e L a w S c h o o l s o l d p ark i n g p as s es t o i t s s t u d en t s an d facu l ty

, wh i l e J M LS

recei v ed rev en u e fo r p ark in g b y o t h er, t ran s i en t p ark ers

.

Th e o w n ers h i p o f t h e 1 4 30 Bu i l d i n g al so ch an ged o v er t i m e. An en t it y n am ed

Pers h i n g Po i n t

, LLC, p u rch as ed t h e 1 4 30 Bu i l d in g an d c o n v e rt ed i t i n to

co n do m i n i um s

. Green b erg Farro w, an arch i t ect u ral fi rm

, i n M arch 2 0 0 7 p u rch as ed

t h ree o f t h e co n d o u n i t s, g i v i n g i t an o wn ers h i p i n t eres t in t h e b u i l d i n g an d t h e ri g ht

t o a p o rt i o n o f t h e 1 2 0 p ark i n g s p aces t h at h ad b een al l o cat ed t o An v i l u n d er t h e

REA. J MLS al so b o u gh t co n d o s i n t h e 1 4 3 0 Bu i l d i n g

. A Sep t em b er 2 0 1 1 am en d m en t

t o t h e L aw Sch o o l ’ s leas e ad d e d s pace n o w o wn ed by J M LS in th e 1 4 3 0 Bu i l d i n g,

ex p li ci t l y m a d e acces s t o 1 9 5 o f t h e s p aces l o cat ed i n t he p ark i n g d eck p art o f t h e

p rem i s es co v ered b y

t h e ren t al ag reem en t , an d rai s ed t h e ren tal rat e.

A di s p u te b e t w e e n t h e p art i es aro s e wh en Green b erg Farro w q u es t i o n ed an

i n v o i c e fro m t h e 1 4 3 0 Bu i l d i n g’ s pro p ert y m an ag er d i rect i n g Green b erg Farro w t o

p ay real es t at e tax es rel at ed to t h e park i n g g arag e. J M LS i n Sep t em b er 2 0 1 3 i n fo rm ed

Green b erg Farro w v i a e-m ai l t h at i t was di s ab l i n g t h e p a rk i n g card s u s ed by

Green b erg Farro w fo r n on -p ay m en t o f ex p en s es

. J M LS s ai d t h at it wo u l d react i v at e

t h e card s o n ce G reen berg Farro w p ai d $ 1 6 ,4 7 4 .4 8

, wh i ch J M LS s ai d was G reen b erg

Farro w’ s “ p ro -rat a s h are of t h e p a s t d u e am o u n t

. ” JM L S’ s em ai l s ai d G reen b erg

5Farro w s ti l l co u ld u s e t h e p ark i n g d eck o n a cas h b as i s

. Green b erg Farr o w b ro u g ht

t h i s l aws u i t ag ai ns t J MLS t wo d ay s l at er.

Th e cen t ral i ss u e in t h e cas e c o n c e r n s t h e m ean i n g o f t h e p hras e “ p ro fi t s o f

o p erat i o n s rel at i n g to t h e park i n g l o t” as u s ed i n § 5 .2 o f t h e REA. Ro b ert

D’ Ag o s t i n o , wh o n eg o t i at ed t h e REA as t h en -d ean an d CEO o f J o h n M ars h al l , an d

Bi jan Kas rai e, wh o n eg o ti at ed t h e REA on b eh al f o f An v i l

, p ro v i d ed affi d av i t s s ay i n g

t h at

, fo l l o wi n g t h e fi li n g of t h e REA, n ei t her An v i l n o r t h e L a w S c h o o l ev er

acco u n t ed t o t h e o t h er fo r it s o wn u s e o f t he p ark i n g d eck

. 3 Bu t Green berg Farro w h as

t ak en t h e p o s it i o n t h at t h e REA p ro v i s i on g i v i n g i t a sh ar e o f t h e “ p ro fi t s o f

o p erat i o n ” o f t h e p ark in g d eck i n cl u d ed J M LS’ s l eas e o f p ark i n g s p aces t o t h e Law

Sch oo l

. In h is d ep o s i ti o n as a Ru l e 3 0 (b )(6 ) wi t n es s fo r Green b erg Farro w, co m p an y

p res i den t an d CEO Es m ai l Gh ad rd an t es ti fi e d t h at hi s u n d ers t an d i n g was t h at t h e

p ro fi ts co n si d ered fo r p urp os es o f t h e REA i n cl u d ed t h e ren tal o f al l sp aces ex cep t

fo r t h e 1 2 0 s p aces al l o cat ed fo r t h e 1 4 3 0 Bu i l d i n g.

In fi l i n g t h is l aws u i t

, Green berg Farro w s o u g h t a t em p o rary res t rai n i n g o rd er

g i v i n g i t i m

m ed i at e acces s t o t h e p ark i n g d eck w i t h o u t ad d i t i o nal ch arg e, p en d i n g

3 Al t h o ug h t h e s e wi t n es s es p ro v i d ed fu rt h er t es ti m o n y as t o t h e p art i es ’

i n t en t i o n s i n d raft i n g t he REA, we d o n o t rel y o n i t g iv en o u r u l t im at e fi nd i n g t h at t h e

p ert i nen t p ro v is i o n i s u nam bi g u o u s.

6res o l ut i o n b y t h e c o u rt o f t he acco u nt d i sp u t es

. Th e t ri al co urt g ran t ed t h e TRO

l arg el y a s r eq ues ted

. Green b erg Farro w fi l ed an am en d ed co m p l ai n t s eek i n g a

p erm an en t i n

ju n ct i on

, d ecl arat ory j u d gm en t, an d d am ag es u n d er t h eo ri es o f b reach

o f co n t ract

, co n v ers i o n

, an d i n t e r f e r e n c e w i th en

jo y m en t o f p ro p ert y

, as wel l as

p u n i t i v e d am ag es an d at t o rn ey s ’ fees . J MLS co u n t ercl ai m ed fo r b reach o f t h e REA

an d an al l eg ed ag reem en t u nd er wh i ch Green b erg Farro w w a s t o p a y fo r u s e o f

J M LS’ s t ras h p i ck u p s erv ices an d s o u g h t at t o rn ey s ’ fees , t o o

.

J M LS fi l e d a m o t i o n fo r p art i al s u m m ary ju dg m en t s eek in g d i s m i s s al o f

Green b erg ’ s cl ai m s fo r de c la rat o ry ju d g m en t

, b reach o f co nt ract

, an d co n v ers i o n

. Th e

t r i a l c o u rt g ran t ed th e m o t i o n

. Th e t ri al co u rt co ncl u d ed t h at th e p hras e “ p ro fi t s o f

o p erat i o n s rel at i n g t o t h e park i ng l o t ” i n t h e REA was am b ig u o u s

, an d t h en t u rn ed to

ex t ri ns i c ev i d en ce t o d et erm in e i t s m ean in g

. Th e t ri al co u rt fo u n d t h at t h e ev i d en ce

was u n d i sp u ted t h at “ t he d raft ers o f t h e REA i n t en ded fo r t h e p hras e to ap p l y t o t h e

rev en u e d eri v ed fro m t ran s i en t t h i rd p art y p ark ers

, b u t d id n o t i nt en d fo r th e o wn ers

o f th e t wo b u il di n g s t o h av e t o acco u n t t o each o t her fo r t h ei r o wn u s e o r t o s h are an y

rev en u e d eri v ed fro m s u ch u s e.” Th e t ri al co u rt al s o fo u nd t h at b y acq u i es ci n g i n t h e

p r o c e d u r e f

o r acco u nt i n g o f p ro fi ts p u t i n p l ace at t h e t im e t h e REA was creat ed

,

Green b erg Farro w h ad wai ved an y co n t rary i n t erp ret at i o n

.

7Green b erg F a r r ow f i l ed t hi s ap p eal an d ch al l en g es t h e tri al co u rt ’ s co ns t ru ct i o n

o f t h e REA, as wel l as i t s co ncl u s i o n t h at Green b erg Farro w wai ved i t s r i g h t to

co n tes t t h at i n t erp ret at io n. Green b erg Farro w al s o arg u es th at JM L S o w es it d am ag es

ev en u n d er t h e t ri al co u rt ’ s i nt erp ret at i o n of t h e a g reem en t an d t h u s t h e t ri al co u rt

erred i n g ran t i n g p art i al s um m ary ju d g m en t t o J M LS.

1

. Green b erg Farro w arg u es t h at t h e tri al co u rt erred i n fi n d in g th at t h e t erm s

o f t h e REA are am

b i g u o u s. W e ag ree.

Th e i nt erp ret at i o n o f a co n t ract i s a q u es t i o n o f l a w

, u n l es s t h e co n t ract

l an g u ag e p res en t s an am

b i g u i t y t h at can n o t b e res o l v ed b y t h e ru l es o f co n s t ru ct i o n.

Mu n . El ec. Au t h . v. Go l d -Ar r o w Fa r ms

, In c. , 2 7 6 Ga. Ap p . 8 6 2 , 8 6 6 (1 ) (6 2 5 SE2 d

5 7 ) (2 0 0 5 ).

Th e card i n al ru l e o f co n s t ru ct i o n i s t o as cert ai n t h e i n t en t o f t h e p art i es

.

W h ere t he co n t ract term s are cl ear an d un am b i gu o u s

, t h e co u rt wi l l l o o k

t o th at al o n e t o fi n d t h e t ru e i n t en t o f t h e p art ies

. To d et erm i n e t h e i n t en t

o f t h e p a r t i es

, al l th e co n t ract t erm s m u s t b e co n s i d ered t o g et h er i n

arri v i n g at t h e co n s t ru ct i o n o f an y p art

, an d a co ns t ru ct i o n u p h o l di n g th e

co n t ract i n wh o l e an d ev ery p art i s p referred

. W h en t h e l an g u ag e

em p l o y ed b y th e p art i es i n t h ei r co n tract i s p l ai n

, u n am b i g uo u s

, an d

cap ab l e o f o n l y o n e reas o n ab l e i n t erp ret at i o n[,] t he l an g uag e u sed m u s t

b e affo rd ed i t s l i t eral m e an i n g an d pl ai n o rd i n ary wo rd s g iv en t h ei r

u s u al s i g n i fi can ce

. . . . An am b i g u it y i s d efi ned as d u p l i ci t y,

8i n d i st i n ct n es s

, an un cert ai n t y o f m ean i n g o r ex p res si o n u s ed i n a wri t ten

i n s t ru m en t

, an d al s o s ig ni fi es o f do u b t fu l o r u n cert ai n n at u re; wan t i n g

cl earn es s o r d efi n it en es s; d i ffi cu lt to co m p reh en d o r di s t i n gu i s h; o f

d o u b t fu l p u rp o rt ; o p en t o v ari o u s i n t erp ret at i o n s

. W h ere am b i g u i t i es

ex i s t, th e co u rt m ay lo o k o u t s i d e t h e w ri t t en t erm s o f t h e co nt rac t an d

co n s i d er al l t h e s u rro u n d i n g ci rcu m s tan ces t o d et erm i n e t h e p art i es ’

i n t en t

. Paro l ev i d en ce m ay n o t b e co n s i d ered u n les s t h e wri t ten

i n s t ru m en t i s am

b i g u ou s

.

Id

. at 8 6 6 -6 7 (1 ) (ci t at i o ns an d p u n ct u at i on o m i t ted ).

Th e REA p ro v i d ed t h at “ p ro fi t s o f o p erat io n s rel at i n g t o t he p ark i n g l o t ” were

t o b e d i v i d ed

, 6 7 p ercen t t o J o h n M a r s h a l l an d 3 3 percen t to An v i l

. J M LS h as

acq u ired J o h n Mars h al l ’ s ri g h t s u n d er t h e REA, an d Green b erg Farro w h as acq u i red

a p ort i o n o f An v i l ’ s p ark in g ri g h t s u n der t h e REA. Th e part i es d o n o t d is p u t e t h e

d efi n i t i o n o f t h e “ p ro fi t s ”; Green b erg Farro w n o t es t h e t erm i s g en eral l y d efi n ed as

“ t o tal s al es rev en u e l es s al l o p erat i n g ex p en s es ,” an d JM L S s ay s t h at d efi n i t i o n i s n ot

i n d i s p u t e. “ Op erat i o n s ” is n o t an i n h eren t l y am b i g uo u s t erm an d is gen eral l y d efi n ed

as “ p e r f o r m an ce o f a pract i cal w o rk o r o f s o m et hi n g i n v ol v i n g t h e p ract i cal

ap p li cat i o n o f p ri n ci pl es o r pro ces s es ” o r “ a d o i n g o r p erfo rm i n g act i o n; wo rk ; a

d eed

. ” Am. Na t ’l Pr o

p

. & Ca s

. Co

. v. Amer i ea s t

, In c.

, 2 9 7 Ga. Ap p

. 4 4 3, 4 4 7 (1 ) (6 7 7

SE2 d 6 6 3 ) (2 0 0 9 ) (q u o ti n g di ct i o n ary d efi n i t io n s). It ap pears th at t h e p art i es ’ d i s p u t e,

9rat h er, is as t o t h e s co p e o f t he o p erat i o n s fro m wh i c h p ro fi t s are to b e d i v i d ed

.

Green b erg Farro w arg u es t h at t h e s co p e o f t ho s e o p erat i on s i s al l o f th e p ark i n g d eck

,

m i n u s t h e eas em en t al l o wi n g t h e u s e o f 12 0 s paces b y An v i l an d i t s s u cces s o rs

wi t h o u t ad d i t i on al co s t

. J M LS arg u es t h at t h e t erm i s a m b i g u o u s an d t h at t h e co u rt

s h o u ld rel y o n ex t ri n s i c ev i d en ce s h owi n g th at t h e a p p l i c a b l e s co pe i s o n l y t h e u s e

o f th e p ark i n g d eck b y “ t ran si en t ” m o t o ri s ts

, no t i n cl u di n g l eas e o f s p aces to t h e Law

Sch oo l

.

W e ag ree wi t h Green b erg Farro w t hat t he l an g u ag e o f t h e REA i s cl ear o n t h i s

p o i n t

. Th e ag reem en t o n a l l o c a t i o n o f p ro fi t s ap p l i es t o “ o p erat i o n s rel at i ng t o t h e

p ark i n g l o t .” Th e o nl y l an g u ag e l i m i t i ng t he s co p e o f o p erat i o n s o n wh i ch p ro fi t s

m u st b e s h ared i s t h e p ro v is i o n gran t i n g An v i l th e u s e o f 1 20 s p aces “ at n o ad d i t i o n al

ch arg e” ex cep t fo r i t s d efi n ed p e r c e n t ag e co n t ri b u t i o n t o m ai nt en an ce an d s ecu ri t y

ex p en s es

. Th ere i s n o o t h er l an g u ag e l i m i t i n g t h e s co p e o f op e r a t i o ns o n wh i ch

p ro fi ts are t o b e al l o cat ed . Th e REA i s t hu s cl ear t h at t he t erm “ p ro fi t s o f o p erat i o n

rel at i n g t o t h e p ark i n g l o t ” en co m pas s es t he p ro fi t s o n al l s p aces i n t h e d eck

, m i nu s

t h e u s e o f t h e 12 0 s p aces b y An v i l an d i t s s u cces s o rs

. Gi v en t h a t t h e t e r m s o f t h e

co n tract are pl ai n i n t h is reg ard

, t h e t ri al co u rt erred by co n s id eri n g t he p aro l ev i d en ce

s u b m i t t ed b y J MLS. S

ee Mu n . El ec. Au t h

. , 2 7 6 Ga. Ap p . at 8 6 7-6 9 ).

10In s u p p o rt o f i t s arg um en t t h at t he REA is am b i g uo u s

, J M LS p oi n t s o u t t h at

n o t h i n g i n th e ag reem en t req ui res t h e o wn er o f t he 1 42 2 Bu i l d i ng “ t o ch arg e i t s el f”

fo r i t s u s e o f t h e d eck

. I t i s t r u e t h at i n t h e REA t h e o wn er o f t h e 14 2 2 Bu i l d i n g

res erv ed fo r i t s el f t h e ri g h t t o u s e t h e p ark i n g d ec k

. B u t t o t h e ex t en t t h at J M LS i s

ch arg i n g s o m eo n e el s e

– wh et h er Law Sch oo l st u d en t s an d s t aff, t h e L aw Sch o ol

i t sel f, o r as s o rt ed m em

bers o f t h e p u b li c

– fo r u s e o f t he d eck

, t h e REA d o es n ot

ex cl u d e t h at rev en u e fro m t h at o n wh i ch “ p ro fi t s o f t h e o p erat i o n s ” are cal cu l at ed

. 4

Th at t h i s m ay

b e a b ad b arg ai n fo r J M LS d oes n o t ren d er t h e REA am b ig u o u s

.

J M LS o ffers no t h i n g fu r t h er i n s u p p o rt of it s arg um en t t h at t h e REA i s

am bi g uo u s

, ex cep t fo r p o i n ti n g t o ex t ri n s ic ev i d en ce an d “ t he p art ies ’ d i ffe r i n g

i n t erp ret at io n s o f t h e co n t ract u al p ro v i s i o n .” J M LS n ot es t h at M i ch ael Ko rn h ei s er,

an at t o rn ey ad m i t ted t o p ract i ce i n Geo rg i a wh o pro v i ded a d ep o s i ti o n as a co rp o rat e

rep res en t at i v e fo r Green berg Farro w, t es t i fi ed t h at h e was “ h ap p y ” t o s ay he h ad n ot

d raft ed th e REA an d ag reed t h a t “ i t cl earl y d i d no t s p el l o ut ev ery th i n g t h e way i t

s h o u ld h av e.” Bu t

, as ex p l ai n ed ab o v e, we d o n o t co n si der s u ch ex tri n s i c ev i d en ce

ab s en t an am

b i g u i t y o n th e f

a c e of t h e d o cu m en t

. An d t h e fact t h at t wo p art i es

4 J M LS h as em

p h as i zed i n t h i s ap peal t h at i t an d t h e Law Sch o o l are s ep arat e

en t i t i es

.

11d i s ag ree o n a co n t ract ’ s m ean i n g d o es no t b y i t s el f r e n d e r t h e co nt ract am bi g u o u s ;

o t h erwi s e, co u rt s ch arg ed w it h p res i d i n g o v er a co nt ract d i s p u t e wo u l d n e v er b e

l i m i ted t o t h e l an g u ag e o f t he ag reem en t i t s el f i n co n st ru i n g i t b ut wo u l d al way s b e

free t o t u rn t o ex t ri n s i c ev i d en ce.

2

. As an al t ern at i v e b as is fo r g ran t i n g p art i al su m m ary ju d g m en t to J M LS, t h e

t ri al co u rt h el d as a m at t er o f l aw t h at Green b erg Farro w h ad wa i v e d i t s ri g h t to

ch al l en g e J M LS’ s i nt erp ret at i o n o f t h e “ pro fi t s o f o p erat i o n rel at i n g t h e p ark i n g l o t ”

p ro v is i o n o f th e REA. Green b erg Farro w arg u es o n ap p eal t h at t h i s was erro r b ecau s e

t h e q ues ti o n o f wai v er p res en t s a d i s p u t e o f m at eri al fact

. W e ag ree t hat JM L S h as n ot

es t ab l i s h ed as a m at t er o f l aw t h at Green berg Farro w wai v ed i t s ri gh t s

.

“ It i s w el l reco g n i z e d t h at a p art y t o a co n t ract m ay wai v e co n t ract u al

p ro v is i o n s fo r h i s b en efi t

. ” AAF-McQu a y, In c. v. W

i l l i s , 3 08 Ga. Ap p

. 2 0 3, 2 1 7 (4 )

(a) (7 0 7 SE2 d 50 8 ) (2 01 1 )

. A wai ver m ay b e s h o wn t h ro u g h a p art y ’ s co n d u ct

.

Vr a ts i n a s Co n s t r

. Co

. v. T r i a d Dr ywa l l

, LLC

, 32 1 Ga. Ap p

. 4 5 1

, 4 5 3 -5 4 (1 ) (7 3 9

SE2 d 4 9 3) (2 0 1 3).

Bu t t h e l a w wi l l n o t i n fer th e wai v er o f an i m p o rt an t co n t ract ri g h t

u n l es s t he wai v er i s cl ea r a n d u n mi s t a ka b l e

. An d b ecau s e wai v er i s n o t

fav o red u nd er t h e l aw, t h e ev i d en ce rel i ed u p o n to p ro v e a wai v er m u s t

b e s o cl earl y i n d i cat i v e o f an i n t en t t o rel i n qu i s h a t h en k n own p art i cu l ar

12ri gh t o r ben efi t as t o ex cl u d e an y o t her reas o n ab l e ex p l an at i o n. In d eed

,

al l t he at t en d an t fact s

, t ak en t o g et h er, m us t am ou n t to an i n t e n t i o nal

rel i n q u i s h m en t o f a k n o w n ri g h t

, i n o rd er t h at a wai v er m ay ex i s t

. T he

b u rd en o f p ro of l i es wi t h t h e p art y as s ert i n g wai v er[.]

Id

. at 4 5 4 (1 ) (fo o t n o tes an d p u n ct u at i o n o m i t t ed ; em p h as i s i n o ri g in al ). W ai v er m ay

b e a qu es t i o n o f l aw wh en th e fact s a n d c i r c u m s t an ces es s en t i al t o t h e q u es t i o n are

cl earl y es t ab l i sh ed

. Id

. at 4 5 4 -5 6 (1 ) (ev i d en ce cl earl y es t ab l i sh ed a l ack o f i n t en t o r

u n d ers t an d i n g t h at co n t ract o r w ai v ed p ay -i f-p ai d p ro vi s i o n ). Bu t t h e ex is ten ce o f a

wai v er g en eral l y is a ju ry q u es t i o n

. Id

. at 4 5 4 (1 ). “ If t h ere i s co nf l i c t i n g e v i d en ce

o v er wh et h er a wai ver occu rred

, t h e is s u e i s fo r a ju ry t o res o l v e.” AAF-McQu a y, In c.

,

3 0 8 Ga. Ap p. at 2 1 7 (4 ) (a). In part i c u l ar, “ [a] p art y ’ s p ro t ract ed s i l en ce, o r

u n reas o n ab l e d el ay i n m ak i n g p ro t es t

, can rai s e a fact i ss u e as t o w h et h e r s h e h a s

wai v ed a co n t ract u al ri gh t .” Id

. at 2 1 7-1 8 (4 ) (a) (t ri al co u rt erred b y reject i n g wai v er

arg u m en t as a m at t er o f l aw)

Here, t h e tri al co u rt s ai d tha t G r e e nbe rg Farro w ’ s accep t an ce o f an arran g em en t

u n d er wh i ch n ei th er Green b erg Farro w n o r J M LS acco u nt ed to t h e o t h er fo r t h ei r o wn

u s e of t h e p ark i ng d eck an d n e i t h e r s h ared an y rev en u e d eri v ed fro m s uch u s e was

ev i d e n c e t h at cl earl y es t ab l i s h ed Green b erg Farro w ’ s w ai v er o f t h e p o si t io n t h at i t

t ak es n o w. Bu t t h e rec o r d co n t ai n s co n fl i ct i n g ev id en ce o v er wh et h er a wai v er

13o ccu rred

. Al t h o u g h t h e tri al co u rt p rem i s ed i t s fi nd i n g o f wai ver o n th e no t i o n t h at

Green b erg Farro w h ad accep t ed t h e arran g em en t as co n t em p l at ed b y J M LS fro m t h e

t i m e t h a t i t p urch as ed an i n t eres t i n t h e 1 43 0 Bu i l d in g u n t i l i n i t i at i n g t h is l aws u i t

,

t h ere i s ev i d en ce t h at Green berg F a r r o w was n o t aware th at JM L S was t reat i n g t h e

REA i n t h i s fas h i o n u n t i l sev eral y ears aft er Green b erg Farro w p urch as ed an i n t eres t

i n t h e b ui l d i n g

. Green b erg Farro w p u rch as ed i t s co n d o u ni t s i n t h e 1 4 30 Bu i l d i n g in

M arch 2 0 0 7

. Gh ad rd an

, Green b erg Farro w’ s p res i d en t an d CEO, tes t ifi ed t h at wh en

Green b erg Farro w fi rs t p u rch as ed t h e co n d o u n i t s, h e u nd ers t o o d t hat rev en u e fro m

t h e ren t al o f p ark i n g s p aces t o J oh n M ars h al l l aw st u d en t s was b ei ng s hared u n d er t h e

REA. Gh ad rd an t es t ifi ed t h at i t was o n l y wh en h e was p res en t ed wi t h an i n v o i ce fo r

t ax es on t h e p ark i n g d eck t h at h e real i zed t h at J M LS was n o t s h ari n g rev en u e

co n si s t e n t wi t h h i s u n d ers t an di n g o f t h e d eal

. 5 O n ce h e cam e t o t hi s real i zat i o n,

G h ad rd an sai d

, G reen berg Farro w b eg an t o co n t es t J M LS’ s ap p ro ach

, s et t i n g o ff a

s eri es o f ev en t s t h at cu l m i n at ed i n t h i s l aws u it

.

On ap peal

, J M LS arg u es t h at Green b erg Farro w s h o u l d h a v e k n o wn t h at t h e

rev en u e s h ared wi t h Green b e r g F a r r o w an d th e o th er own ers of th e 1 43 0 Bu i l d i n g

5 Gh ad rd an t es t i fi ed th at h e co u l d n o t rem em b er ex act l y wh en he cam e t o t h i s

real izat i on b ut i n d icat ed

, co n si s t en t w i t h a t ax i n v oi ce s h o wn t o h i m d u ri n g h i s

d ep os i t i o n , t h at i t h ap p en ed i n 2 0 1 0 o r l at er.

14w a s “ m inim a l” a nd co ns i st en t wi t h s h ari n g o f rev en u e fro m on l y “ t h i rd -p art y t ransie nt

p ark i n g ,” an d t hat Green b erg Farro w s h o u l d h av e ex erci s ed m o r e d i l i g en ce an d

e x a m i n e d av ai l ab le reco rd s

. Bu t a m ere l ack o f d i l i g en ce i s n o t t h e s am e t hi n g as a

wai v er. “ [W ] h ere t h e on ly ev i d en ce o f an i n ten t i o n t o wai ve i s wh at a p art y d o es o r

fo rb ears t o d o

, t here is n o wai v er u n les s h is act s o r o m is s i o n s t o act are so m an i fes t l y

co n si s t en t wi t h an i n t en t t o rel i n q u i s h a t h en -k n o w n p art i cu l ar ri g h t o r b en efi t t h at n o

o t h er reas o n ab l e ex p l an at i o n o f t h e co nd u ct i s p o s s ib l e.” Ecker d Co r p

. v. Al t er ma n

Pr o ps

., Lt d

. , 2 6 4 G a. Ap p . 7 2, 7 5 (1 ) (5 8 9 SE2 d 6 6 0 ) (2 0 0 3) (q ues t i o n s o f wh et h er

ei t h er p art y wai ved ri g h t s in d i s p u t e o v er l eas e t erm s are fo r a ju ry t o d eci d e). On e

can n ot i n t en t i o n al l y

wai v e a ri g h t o n e d oes n o t k n o w ex i s t s

.

J M LS al s o s u p p o rt s it s arg u m en t o f wai ver b y p o i n ti n g t o ev i d en ce t h at

Green b erg Farro w an d o t h e r 1 4 3 0 Bu i l d i n g o wn ers l eas ed o u t s p aces wi t h o ut

p ro v id i n g an y acco u n t i ng t o J M LS, s u g g es t i n g t h i s i s ev i d en ce t h at G reen b erg

Farro w h ad accep t ed an arran g em en t i n wh i ch n ei t h er p art y need ed t o acco u n t t o t h e

o t h er fo r us e o f t h ei r “ o w n” p ark i n g s paces

. Bu t Gh ad rd an t es t i fi ed t h at h e u n d ers t o o d

t h at rev en u e fro m th e 5 1 s p aces al l o cat e d t o Green b erg Farro w d i d n o t n eed t o b e

s h ared wi t h J M LS u n d er th e t erm s o f t h e REA, o fferi n g h i s ex p l an at i o n o f wh y t h e

REA i m p o s ed o b li g at i o ns o n J M LS th at i t d i d n o t i m p o se on Green b erg Farro w.

15Th erefo re, reg ard l es s o f wh et h er Green b erg Farro w’ s act io n s were p ro p er u n d er t h e

REA, it s fai l u re t o a c co u n t t o J M LS fo r i t s o wn u s ag e o f t he d eck d o es n o t am o u nt

t o ev i d en ce t h at i t wai v ed it s ri gh t t o ch al l en g e J M LS’ s fai l u re to s h are rev en u e fro m

t h e s al e o f p ark i n g s p aces t o al l b u t “ t ran s i en t ” p ark ers

. J MLS h as no t es t ab l i s h ed as

a m at t er o f l aw t h at G reen b erg Fa r r o w w a i v ed th at ri g ht

. W e th erefo re rev ers e t h e

t ri al co u rt ’ s g ran t o f su m

m ary ju d g m en t t o J M LS o n Green b erg Farro w’ s b reach o f

co n tract cl ai m

. 6

3

. J M LS arg u es th at becau s e Green b erg Farro w h a s n o t p res en t ed an y

arg u m en t o n ap p eal ch al l en g i n g s p eci fi cal l y t h e tri al co u rt ’ s d et erm i n at i o n t h at

Green b erg Farro w’ s cl ai m s fo r d ecl arat o ry ju d g m en t an d co n v ers i on s h o u l d b e

d i s m i s s ed

, t h e ru l i n g o f t h e t ri al co u rt s h o u l d b e affi rm ed as t o t h o s e cl ai m s

. Th e t ri al

co u rt ’ s ru l i n g g ran t i n g s u m m ary ju d g m en t o n t he d ecl arat ory j u d gm en t cl ai m ap p ears

t o b e b as ed o n th e co n cl u s io n t h at i t i s m o o t g iv en t h e res o l u t i o n of t h e b reach o f

c o nt ract cl ai m

. Gi v en o ur co n cl us i o n t h at s u m m ary ju d g m en t o n t h e b reach o f

co n tract cl ai m

was i n erro r, we al s o rev ers e as t o t h e d ecl arat o ry ju d gm en t act i o n

.

6 Gi v en t hi s co n cl u s i on

, we n eed n o t co ns i d er G reen berg Farro w’ s arg u m en t

t h at

, ev en if th e t ri al co u rt ’ s i n t erp ret at i o n o f t h e REA i s co rrect

, G reen b erg Farro w

s t il l i s o wed d am ag es

.

16As t o t he co n vers i o n cl ai m

, t h e t ri al co u rt al s o g ran t ed su m m ary ju dg m en t o n

t h e bas i s o f i t s co n st ru ct i o n o f t h e REA. Ho we v e r

, t h e t ri al co u rt o ffered as an

al t ern at i v e b as i s fo r s u m

m ary ju d g m en t t h e reas o n t h at “ [c] o n v ers i o n i s n o t a v i ab l e

cl a i m w h ere t h ere i s n o t h in g m o re t h an an al l eg ed fai l u re b y th e d efen dan t t o p ay

m o ney o wed t o t h e p lai n t i ff.” Green b erg Farro w d o es n o t ch al l en g e t h i s p ro p o s i t i o n

o n ap peal

, an d t h u s we affi rm t h e t ri al co u rt ’ s g ran t o f s u m m ary ju d g m en t t o J M LS

o n t h i s cl ai m

.

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

s ed i n p ar t

. Ph i

p p s

, P

. J., a n d Di l l a r d

, J.,

co n cu r

.

17