FI RST DI VI SI ON

PHI PPS, C. J.

, ELLI NGTON, P. J.

, and M CM ILLI A 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.

http://w w w .ga a ppe a ls .us /r ule s /

Septem ber 29, 2014



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A1 4 A0 87 5 ; A1 4 A0 8 7 6

. M A REE et al

. v

. R OM A R JOINT

VENTURE; an d v i ce v ers a.

M C M ILLI A N , J u dg e.

ROM AR J o i n t Ven t ure (“ ROM AR”), b y an d t h ro u g h Ban k o f A m eri ca, N.A.

(“ BOA”) as t h e m an ag in g jo i n t v en t u rer o f ROM AR, fi led a p et i t io n in 2 0 1 0 s eek i n g

t o d i ss o lv e ROM A R o n t h e g ro u n ds t h at m an ag em e n t w a s d e ad l o ck ed

. On e o f t h e

jo i n t ven t u rers

, M arg aret Brews t er M aree, an d h er co -t ru st ee J

. Cl i ft o n Barl o w, J r. 1

o b ject ed t o d i s s o l u t i o n an d as s ert ed v ari o us co u n t ercl ai m s ag ai n s t BOA. In Cas e No

.

A1 4 A0 87 5

, t h e M aree Part i es ap p eal t h e t ri al co u rt ’ s gran t o f di s s ol u t i o n

, t h e

d i s m i s s al o f t h ei r co u n t ercl ai m fo r co n v ers i o n

, an d d en i al o f s u m m ary ju d g m en t o n

t h e i r c l ai m th at BOA b reach ed t h e co nt ract b y u s i n g ROM AR fu n d s t o p ay i t s

1 W e wi l l h erei n aft er refer t o M arg aret B r e w ste r M aree i n d i v i d u al l y as “ M aree”

an d M aree an d J . Cl i ft on Barl o w, J r. co l l ect i v el y as t h e “ M aree Part i es .”l i ti g at i o n ex p en ses

. In Cas e No

. A1 4 A0 8 7 6

, BOA cro ss -ap p eal s t h e t ri al co urt ’ s

d en ial o f i t s m o ti o n fo r s u m m ary ju d g m en t o n t h e M aree Part i e s ’ rem ai n i n g

co u nt ercl ai m s an d i t s req u es t t h at ROM AR p ay it s l i t i gat i o n fees

. Fo r t h e reas o n s s et

fo rt h bel o w, w e affi rm i n p art

, rev ers e i n p art an d re m a n d f o r fu rt h er p ro ceed i ng s

co n si s t en t wi t h t h i s o p i ni on

.

Su m m ary ju d g m en t is p r o p e r w h en t h ere 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 ti t l ed t o j u d g m en t as a m at t er o f l aw. OCGA § 9-1 1 -5 6 (c). To

p rev ai l o n a m o ti o n fo r s u m m ary ju d g m en t,

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

u s t s h o w t h at th ere i s n o gen u in e d i s p u t e as t o a

s p eci fi c m at eri al fact an d t h at t h is s p eci fi c fact i s en o ug h

, reg ard l es s o f

an y ot h er fact s i n t h e cas e, t o en t it l e t h e m o v i n g p art y t o ju dg m en t as a

m at t er o f law. W h en a d efen d an t m o v es fo r s u m m ary ju d g m en t as t o an

el em en t o f th e cas e fo r wh i ch th e p l ai n t i ff, an d n o t t h e d efen d a n t

, w i l l

b ear t he b u rd en o f p ro o f at t r i al

, t h e d efen d an t m ay s h ow t h at h e i s

en t i t l ed t o s u m

m ary ju d g m en t ei t h er by affi rm at i vel y di s p ro v i n g t hat

el em en t o f t h e cas e o r b y po i n t i n g t o an ab s en ce o f ev i d e n c e i n th e

reco rd b y wh ich t h e p l ai n t i ff m i g h t carry t h e b u r d en t o pro v e t hat

el em en t

. A n d i f t h e d efe n d a n t d o es s o

, t he p l ai n t iff can n o t res t o n h i s

p l e a d i n g s

, b ut rat h er m

u s t po i n t t o s p eci fi c ev i d en ce g i v i n g ri s e t o a

t ri ab l e i s s u e.

2(Ci t at i o n a n d p u n ct u at i o n o m i tt ed .) Bea l e v. O’S h ea

, 3 1 9 Ga. Ap p

. 1

, 2 (7 3 5 SE2 d

2 9 ) (2 0 12 ). W e rev i ew a g ran t or d en i al of s u m m ary ju d g m en t d e n ov o an d co n s t ru e

t h e ev i d en ce i n t h e l i g h t m os t fav o rab l e t o t h e n o n m o v an t

. Gwi n n et t Co mmu n i t y Ba n k

v. Ar l i ng t o n Ca

p i t a l

, LLC

, 3 2 6 Ga. Ap p. 7 1 0, 7 1 0 (7 5 7 SE2 d 2 3 9 ) (2 0 1 4). Becau s e

t h i s o p i n i o n ad d res s e s c r o s s -m o t i o n s fo r s u m m ary ju dg m en t

, we w i l l co n s t ru e t h e

fact s i n fav o r o f t he n o n -m o v i n g p art y as ap p ro p ri at e.

W i t h t h es e pri nci p l es i n m i n d

, t h e reco rd s ho ws t hat ROM A R was es t ab l i s h ed

i n 1 9 7 1 t h ro u g h a jo in t v en t u re ag reem en t (t h e “ Ag reem en t ”) b y t w o fri en d s wh o

p u rch as ed p ro pert y wh ere I-7 5 was t o be b u il t. Ov er t h e i n terv en i ng y ears

, t h ei r 5 0 / 5 0

o wn ers hi p o f ROM AR p as s ed t o t h ei r v ari o us rel at i v e s a n d t hei r t ru s t s

. ROM AR

cu rren t l y co n s i s t s o f s ev en j o i n t v en t u rers : th e Owen b y T r u s t (4 0.4 4 8 % i n t eres t );

M arg aret Brews t er M aree, i n d iv i d u al ly (1 0 % i n t eres t); t h e M aree Tru s t 2 (1 6 .5 15 %

i n t eres t ); Geo rg e L aVan ce M aree, J r. ( “ Van ce”), 3 i n d i v i d u al ly (1 0% i n teres t ); t h e

2 Th e t ru s t creat ed un der Para. 8 (d ) o f t h e G

. LaVan ce M aree Tru s t u /a 1 / 5 / 7 3

b en efi t t i n g M arg aret Brews t er i s referred t o as t h e “ M aree T ru s t.” J

. Cl ift o n Barl o w

an d M arg aret M aree are co -t ru s t ees o f t h e M aree Tru s t

.

3 M arg aret an d Van ce M aree are b ro t h er an d s i s t er.

3Van ce Tru s t 4 (“ Van ce Tru s t ”) (1 6 .5 1 5 % i n t eres t ); M ary A n s l ey So ut h erl an d

(3 .2 6 1%); an d Ro b ert Fran k M ead ers , J r. (3 .2 6 1 % i n teres t). 5

BO A i t s e l f i s n o t a jo i n t v en t u rer. Rat h er, i n i t s cap aci t y as t ru s t ee o f t h e

Owen b y Tru s t

– t h e jo i n t v en tu rer wi t h th e l arg es t i n t eres t i n ROM AR

– BOA i s t h e

m an ag i n g jo i nt v en tur e r of R O M A R ( the “ M a na ge r ” )

. T he A gr eem en t, w h i ch req u i res

u n an im o u s co n s en t t o am en d

, go v ern s t h e res p on s i bi l i t i es an d d u t i es o f BOA as t h e

M an ag er. Sp eci fi cal l y , t he Ag reem en t p ro v id es t h at

[BOA i s ap po i n t ed t o ] carry o n t he bu s in es s o f t h e Jo i n t Ven tu re an d t o

m an ag e an d co n tro l t h e b u s i n es s an d to m ai n t ai n t h e b o o k s an d reco rd s

o f th e J o i n t Ven t u re

. . . [BOA] s h al l h av e fu ll an d co m p l et e au t h o ri t y t o

m ak e an y an d al l ord i n ary o r ro u t i n e d eci s io n reg ard i n g t he bu s in es s o f

t h e J o i n t Ven t u re an d to i m pl em en t su ch d eci si on s

. 6 [ B O A ] i s h ereb y

ex p res s l y au t h ori zed t o tak e t i t l e t o t h e Pro p e r t y o r a n y i n teres t o f th e

4 Th e tru s t creat ed u n d er Para. 8 (d ) o f t h e G. L aVan ce M aree Tru s t u /a 1 / 5 / 7 3

b en efi t t i n g Van ce M aree i s referred t o as t h e “ Van ce T ru s t .” BOA an d G. LaVan ce

M aree, J r. are co -t ru s t ees o f t h e Van ce Tru s t. Van ce d i d n o t res p on d t o t h e Pet i t i o n

an d i s n ot a p art y

t o t h i s ap peal

.

5 Al t h o u g h So u th erl an d an d M ead ers res p o n d ed t o t h e Pet i t i o n fi l ed b y BOA,

t h ey fi l ed n o co un t ercl ai m s an d d i d n o t res p o n d t o t h e s u m m ary ju dg m en t m o t i o n s

. Nei t h er i s a p art y

t o t h i s ap peal

.

6 Ho wev er, m o s t o t h er deci s i o n s rel at i n g t o t h e jo i n t v en tu re, i n cl ud i n g t h e s al e

o f p ro p ert y

, are req u i red t o b e m ad e b y a m ajo ri t y of t h e jo in t v en t u rers i n acco rd an ce

wi t h t h e p ercen t ag e o f t hei r res p ect i v e i n t eres t s i n ROM AR.

4J o i n t Ven t u re i n t h e Pro p e r t y i n [i t s ] own n am e as n o m i n ee an d t o

co n v ey

, s el l

, t ran s fer, m o rt g ag e, l eas e, r e n t, as s i g n o r o t h erwi s e

en cu m b er an d co n v ey t h e i n t eres t o f t h e J o i n t V en t u re in t h e P r o p e r t y

u p o n t h e wri t t en co n s en t o f a m ajo ri t y in i n t eres t an d n ot i n n u m b ers o f

t h e J oi n t Ven t u rers

. [BOA] i s au t h ori zed

, ex p res s l y b u t wi t h o u t

l i m i t at i o n

, t o ex ecu t e w arran t y an d q u i t cl ai m d eed s

, co nt ract s

, l eas es

,

as s i g n m en t s, d eed s t o s ecu re d eb t

, n o t es

, s et t l em en t s t at em en t s

,

ag reem en t s

, cert i fi cat es an d an y ot h er wri t i n g wh i ch s h al l b e n eces s ary

t o h o l d , m an ag e o r co n v ey t h e Pro p ert y

. 7

ROM AR cu rren t l y h o l d s t wo p i eces o f real p ro p ert y

. Th e fi rs t i s l o c at ed in

DeKal b Co u n t y

, co ns i st i n g o f an 8 ,9 6 0 s q u are-fo o t ret ai l b u i l di n g cu rren t l y leas ed to

a ret ai l s t o re wi t h th ree co n s ecu t i v e, fi v e-y ear ren ewal o p t i o n s (t h e “ DeKal b

Pro p ert y ”). Th e s eco nd is l o cat ed i n Gwi n n et t Co u n t y

, co ns i s ti n g o f a 9,4 6 8 s q u arefo o t o ffi ce b u i ld in g t hat i s cu rren t l y l eas ed t o a co m p an y wi t h an an n u al ly ren ewab l e

l eas e fo r t en y ears (t h e “ G wi n n et t Pro p ert y ”).

U n d er t h e cu rren t s t ru ct u re o f t h e Ag reem en t

, BOA can n o t wi t h d raw a s t h e

M an ag er wi t h o u t un an i m o u s

, wri t t en co n s en t t o am en d t h e Ag reem en t

. In Decem b er

2 0 1 0

, BOA fi led i ts p et i t i o n s eek i n g d i s s o l u t i o n o f ROM AR o n t h e g ro u n d t h at

ROM AR w as i n d ead l o ck

. A cco rd i n g t o BOA, t h e dead lo ck

, w h i ch b eg an o v er t en

7 Th e Ag reem en t fu rt h er p ro v i d es t h at BOA i s t o b e co m p en sat ed fo r s u ch

m an ag eri al s erv i ces o u t o f t h e ROM AR fu n d s

.

5y ears ag o, was cau s ed pri m ari l y b y Van ce M aree’ s l ack o f en g ag em en t an d M arg aret

M aree’ s i n t en t io n al h o s t il i t y an d h a s r es u l t ed i n l o s t b us i n es s o p p ort u n it i es

, in creas ed

c o s t s

, d ecreas ed rev en u es

, an d l o wer en terp ri s e v al u e. In s u p p o rt o f i t s arg u m en t s

,

BOA s et s fo rt h a l o n g hi s to ry o f t h e p art i es ’ in t eract i o n s

, wh i ch we wi l l s u m m ari ze.

M aree ad m i t s t h at s h e h as b een “ h o s t il e” t o w a r d B O A s i n ce at leas t 2 0 0 1,

ari s in g o u t o f h er bel i ef t h at BOA fai l ed t o ad eq u at el y m an ag e h er m ot h er’ s es t at e 8

an d t h at it fai l ed t o p ro p erl y m an ag e ROM AR. In 2 0 01

, M aree d em an d ed t h at BOA

res i gn fro m i t s ro l e as t h e M an ag er o f ROM AR. In res p o n s e, BOA s o u g h t ag reem en t

fro m t h e rem ai n i n g jo i n t v en t u rers t o h i re Max Ho l s t ei n t o s erv e as t h e n ew m an ag er.

Al l o f t he jo i nt v en tu rers ag reed t o t h i s p l an an d g av e t h ei r wri t t en co ns en t t o BOA

t o ret ai n co u n s el t o p rep are an am en d ed Ag reem en t acco rd in g l y

. A co p y o f t h e d raft

am en d ed Ag reem en t was ci rcu lat ed t o th e jo i n t v en t u rers i n Sep tem ber 2 0 0 1. M aree

d i d n o t res p o n d fo r sev eral m o n t h s

, at wh i ch p o i n t s h e s t at ed th at sh e wo ul d n o t s i g n

t h e a m e n d e d Ag reem en t b ecau s e s h e b el i ev ed t hat th e am en dm en t b en efi t t ed t h e

Owen b y Tru st

. BOA fu rt h er al l eg es t h at Van ce M a r ee h ad n o t ev en o p en ed t h e

p ack ag e co n t ai n i ng th e am en ded Ag reem en t w h en i t co n t act ed h i m i n J un e 2 0 0 2,

8 At th at t i m e, BOA w as al s o a co -t ru s t ee o f t he M aree Tru st , wh i ch o wn ed a

s ep arat e p i ece o f real es tat e. Aft er n earl y two y ears o f d i s co rd

, BOA w as ev en t u al l y

rep l aced as t h e co -t ru s t ee o f h er t ru s t

.

6al t h o u g h h e i n d icat ed at t h at t i m e t h at h e wo u l d s i g n an d ret u rn i t t o BOA. By

Feb ru ary 2 0 0 3

, BOA h ad recei v ed ap p ro val fro m o n e jo in t v en t urer i n 2 0 0 1 an d a

s eco n d i n l at e 2 0 0 2. In Ap r i l 2 0 0 4

, at t h e req u es t o f Fary l Mo s s

, M aree’ s t h en co

t ru s t ee, BOA fax ed a co p y o f th e am en d ed Ag re em en t t o M o s s

. Ul t i m at el y

, M aree

refu sed t o s i g n i t b ecau s e s he wan t ed t o s el l t h e p ro pert i es an d d i s s ol v e ROM AR.

Th ereaft er, i n l i eu o f r e s i g ni n g

, BOA s ou g ht ap p ro v al fro m t h e o t h er jo i nt

v en tu rers t o d i s s o lv e ROM AR an d l i q u i d at e i t s as s et s

. By Oct o b er 2 0 0 5

, BOA h ad

t h e co n s en t o f al l t he jo i nt v en tu rers ex cep t M aree, wh o d i d n ot p ro v i d e h er wri t t en

co n sen t u n t i l J an uary 2 0 0 6

. BOA th en s o ug h t u p d at ed ap p rai s al s fo r t h e p ro p ert i es

,

an d ROM AR recei ved a cas h o ffer fo r t h e DeKal b Co u n t y Pro p ert y h i g h er t h an t h e

jo i n t v en t u rers ’ ag reed -u p o n p ri ce. Al t h o u g h M aree had p rev i o u sl y co n sen t ed

, s h e

o b ject ed t o t h e s al e, an d i t co u l d n o t go fo rward

. On l y o ne of t h e t hree p i eces o f

p ro p ert y o wn ed b y ROM AR at t h at t i m e (t he “ 8 0 00 M i ll er Co u rt Pro p ert y ”) was s o ld

p u rs u an t t o t h e l i q u i d at i o n p l an

, wh i ch s al e t o o k p l ace i n J u n e 2 0 0 7

. T hen

, i n 2 0 0 7,

M aree an d h er co -t ru s t ee ch an g ed t h ei r m i n d s a n d n o l o ng er w i sh ed t o p u rs u e

d i s s o l u t i on an d l i q u i d at i o n

. In s t ead

, t h ey ag ai n d e m a nd ed t h at BOA b e rep l aced as

t h e M an ag er.

7In Sep tem b er 2 00 7, a m eet i n g was h el d

, an d t he jo i n t v en t u rers u n an i m o u s l y

ag reed t h at t h e c u r r en t Ag reem en t an d s t ru ct u re o f ROM AR w i t h BOA as t h e

M an ag er was n o l o n g er o p ti m al an d t h at a n ew, res tat ed Ag reem en t s h o u l d b e

p rep ared t o al l o w fo r t h e i n s tal l at i o n o f a n ew m an ag e r

. T h e jo i n t v en t u rers ag ai n

ag reed t hat M ax Ho l s t ei n s h ou l d s erv e as t h e n ew m an ag er an d t hat h e s h ou l d p res en t

a fee pro po s al

. BOA al l eg es th at t h e jo i n t v en t u rers al s o ag reed at t h e m eet i n g t h at

BOA co u l d ret ai n co u n s el an d p ay at t o rn ey fees o u t o f ROM AR’ s fu n ds i n o rd er t o

p rep are a n ew am en d ed Ag reem en t

. 9

Th e fo l lo wi n g m o n t h

, BOA ci rcu l at ed a pro p o s ed am en d ed Ag reem en t ;

h o wev er, b y Decem

b er 2 0 0 7

, BOA d i d n o t recei v e a res p o ns e fro m an y jo in t v en t u rer

o t h er t h a n t h e Owen b y Tru s t an d M o s s (as t h e co -t ru s t ee o f t h e M aree Tru s t ). In

Feb ru ary 2 0 0 8

, M o s s p as s ed away

, an d a n ew co -t ru s t ee fo r th e M aree Tru s t was n ot

i n p lace u n t i l Sep tem

b er 2 00 8

. In Oct o b er, M aree’ s co u ns el res po n d ed t o BOA wi th

a co m p l et el y n ew vers i o n o f a p ro po s ed am en d ed Ag reem en t

. In No v em b e r

, BOA

p ro v id ed s u g g es t ed ch an g es t o M aree’ s p ro po s ed am en d ed Ag reem en t b u t recei v ed

9 M aree d en i ed t h at t h e jo i n t v en t u rers ap p ro v ed t h e p ay m en t o f at t orn ey fees

i n h e r res p o n se t o BOA’ s St at em en t of M at eri al Fact s i n Su p p o rt o f S u m m a r y

J u d g m en t

. Bu t i n her affi d av i t

, M aree ad m i t s t h at th e jo i nt v en tu rers ag reed t h at t h e

Ban k co u l d ret ai n co un s el t o am en d t h e Ag reem en t

.

8n o s ub s t an ti v e res p o ns e fro m her co u n s el fo r s ev eral m o n th s

, d es p i t e BOA’ s rep eat ed

at t em p t s

. In M arch 2 00 9

, BOA l earn ed t h at M aree’ s n ew co -t ru st ee had res i gn ed an d

s h e was s eek i n g a rep l acem en t

.

BOA cal l ed fo r a m eet i n g i n Ap ri l 2 00 9

, b u t n ei t h er M arg aret n or Van ce M aree

at t en ded

, n o r d id t hey res p o n d i n d icat i n g t h ey wo u l d n ot at t en d, d e s p it e s ev eral

co m m u n icat io ns fro m B O A

. Becau s e act io n was n eed ed wi t h res p ect t o t h e t wo

rem ai n i n g p ro p ert i es ’ l eas es

, at leas t o n e o f t h ei r v o t e s w as n eces s ary t o reach a

m ajo ri ty

. Gi v en Marg aret an d V an ce M aree’ s ab s en ce, t h e l eas es co u l d n o t b e v o t ed

o n

. Fi n al l y

, i n Ju l y

2 0 09 , M aree’ s co u n s el res p on d ed t o BOA b y ci rcu l at in g co p i es

o f an o th er v ers i on o f t he am en d ed Ag reem en t s i g n ed b y M aree, h er co -t ru s t ee, an d

Ho l st e i n

. N o n e o f t h e o t her jo i n t v en t u rers had ag reed t o th i s v ers i on

. BOA an d

M aree’ s co u n s el ex ch an g ed s ev eral m o re rev i s i o n s t h ro u g h o u t J u l y a n d A u g us t

.

Fo l l o wi ng sev eral p ro m

p t s fro m BOA, M aree’ s co u n s el fi nal l y res p on d ed i n Oct o b er

2 0 0 9 th at t h ere were d el ay s d u e t o a ch an g e t o t h e co -t ru st ee o f t h e M aree T ru s t an d

M aree’ s co n cern s reg ard i n g cert ai n ch an g es t o t he Ag reem en t

. By No v em b er, al l b ut

o n e p ro v i s i o n o f t he am en d ed Ag reem en t w a s ag reed u p o n. BOA an d M aree’ s

co u ns el co n t i nu ed t o d i s cu s s ch an g es u p t o J an u ary 1 1

, 2 0 1 0. H o we ver, d es p i t e

9s ev eral ad d i t i o n al fo l l o w u p i n q u i ri es fro m BOA, M aree’ s co u n s el n ev er res p o n d ed

p ri o r t o BOA’ s fi l i n g o f t h e p et i t i o n i n Decem ber 2 0 1 0

. 1 0

In ad d i t i o n t o t h e fo reg o i n g

, B O A a l s o a l l eg es t h at M aree was h o s t i l e i n h er

co m m u n icat io ns reg ard i n g BOA’ s ro l e as M an ag er. Maree ad m i t s t h at in M arch 2 0 0 7

s h e res p o n d ed t o BOA’ s req u es t fo r a m eet i ng wi t h an e-m ai l s t at i n g

,

W el l

, is t h e p urp os e o f t h e m eet i n g t o ap o lo g ize pro fu s el y fo r b reach i n g

i t s d u ty on R O M A R an d d o i n g n ot h in g o v er t h e p as t s ev en y ears b u t

h o l d a jo i n t v en t u re h o s t ag e t o i n co m p et en t d o n k ey s

, ru i ni n g wh at w as

a p erfect l y

g o o d i n v es t m en t fo r t h e p art n ers ?

I n t h e s a m e e-m ai l

, M aree as k ed wh et h er t h e pu rp o s e o f t h e m eet in g was to

“ a n n o u n c e t he wh o l es al e rem o v al o f t h e l is t of co rp o rat e bu t terfi n g ers wh o

rep eat ed [l y ] d ro p p ed t he b al l o n ROM A R d es p it e n u m e ro u s w arn i n g s an d cal l s fo r

s u ch act i o n t o ceas e? ” Maree al s o ack n o wl ed g es t h at i n J ul y 20 0 7 s h e sen t a l et t er to

US Tru s t Man ag em en t accu si n g BOA o f m i s m an ag em en t an d st at i n g t h at i t h ad

1 0 M aree u l t im at el y refu s ed t o s i g n t h e am en d ed Ag reem en t b ec a u s e B O A

“ m i g h t ” b e s eek in g a rel eas e an d i n d em n i fi cat i o n b u t was u n ab l e t o p o i n t to an y s u ch

l an g u ag e wi th i n t h e p ro p o s ed A g reem en t. M aree d ep o s ed t h at s h e “ as s u m ed ” t h ere

wo u l d b e an i n d em

n i fi cat i on b u t di d n o t a c t u a l l y k no w i f BOA ev er ci rcu l at ed a

v ers i on wi t h s u ch l an g u ag e.

10“ s t o len h u n d red s o f th ou s an d s o f d o l l ars o v er t he p a s t n i n e y ears fro m m y fam i l y .”

M aree fu rt h er ad m it s t o referri n g t o a BOA em p lo y ee as a “ m eat h ead cl erk .”

Aft er BOA p et i t i o n ed fo r d i s so l u t i o n

, an d t h e M are e d efen d an t s

co u nt ercl ai m ed , t he p art i es fi l ed cro ss -m o t i o n s fo r s um m ary ju d g m en t , wh i ch were

h eard b y t h e t ri al co u rt o n O ct ob er 1 2 , 2 0 1 2 . On M ay 6 , 2 0 1 3 , t h e t ri al co u rt i s s u ed

an o rd er g ran t in g BO A ’s p e t i t i o n fo r d i s s o l u t i o n an d fi n al acco un t i n g as wel l as

BOA’ s m o t i o n fo r s um m ary ju d g m en t as t o M aree’ s co u n t e r c la i m f or co n v ers i o n

. Th e

t ri al co u rt d en i ed BOA’ s m o t i o n fo r s u m m ary j u d gm en t as t o t h e M a r e e P a r t i es ’

co u nt ercl ai m s fo r breach of co n t ract

, b reach of t he d u t y o f g o od fai t h an d fai r d eal i n g,

an d b reach o f fi d u ci ary du ty

. Th e t ri al co u rt d id n o t reach BOA’ s req u es t fo r an o rd er

fo r t h e p ay m en t o f i t s li t i g at i o n fees o u t o f ROM AR’ s fu n ds o r BOA’ s m o t i o n as to

t h e M aree Part ies ’ co u nt ercl ai m fo r p un i ti v e d am ag es

.

In g ran t in g d is s o l u ti o n , t h e t ri al co u rt rel i ed o n p art ners h i p l aw, fi rs t n o t i n g :

Th e C o u rt m ay ord er d i s s o l u t i o n un d er cert ai n ci rcu m s t an ces

, su ch as

wh ere a p art y (1 ) “ h as been g u i l t y o f s u ch co n d u ct as t en d s t o a f f e c t

p rej u d i c ial l y t h e carry in g o n o f t h e b u s i n es s ”; (2 ) wi l l fu l l y o r

p ers is t en t l y b reach es t h e ag reem en t or o t h erwi s e act s i n s u ch a way “ t hat

i t i s n o t reas on ab l y p ract i cab le t o carry o n t h e b u s i n es s ”; o r ( 3 ) u nd er

o t h er s u ch ci rcu m st an ces as wo u l d ren d er d i s s ol u t i o n eq u i t ab l e. OCGA

§ 1 4 -8 -3 2 (a) (3 -5 ).

11Th e co u rt fu rt h er n o t ed th at

, al t h o u g h t h e p art i es d i s p u t ed wh et h er m an ag em en t

d ead lo ck ex i s t ed

, t he y e a c h al l eg ed t h at t h e o t h er h ad b reach ed t h e jo i n t v en t u re

ag reem en t an d t h ei r d u t i es t o th e jo i n t v en t ure. Th erefo re

, t h e co u rt co n cl u d ed t h at

“ d i ss o l ut i o n o f t h e j o i n t v en tu re i s an ap p ro p ri at e eq u it ab le rem ed y u nd er t h e

ci rcu m s t an ces

. ” Th es e ap peal s fo l l o wed

.

Ca s e No . A1 4

A0 8 7 5

1

. Th e M aree Part i es fi rs t co n t en d th at th e t ri al co u rt erred b y ap p l y i n g

p art n ers hi p l aw t o d et erm i n e w h et h er ROM AR sh o ul d b e di s s o l ved

. W e fi n d t h at t h ey

h av e wai v ed th i s arg u m en t b y fai l i n g t o as s ert i t i n t h e t ri al co u rt

. In i t s p et i t i o n

, BOA

s p eci fi cal l y

al l eg ed t h at ROM AR i s a p art n ers h i p g o v ern ed b y Geo rg i a p art n ers h ip

l aw. No t o n l y d i d t h e M aree Part i es ad m i t t hi s al leg at io n i n t h ei r an s wer, w e fi n d n o

i n d i cat i o n i n t h e reco rd t hat t h ey l at er arg u ed othe r w i s e. 1 1 Th erefo re, t h i s en u m erat i o n

o f erro r i s wi t h o ut m eri t

. E.g

., S i l ver Pi g eo n Pr o p er t i es

, LLC v. Fi ckl i n g & Co

. , 3 1 6

1 1 Al t h o u g h t he M aree Part i es as s ert t h at t h ey arg u ed t h at co rp o rat e l aw s h o u ld

ap p ly t o ROM AR d u ri n g t h e s u m m ary ju d g m e n t h eari n g, t h e reco rd b el i es t h ei r

as s ert i o n

. Fi rs t

, th ey rep eat ed l y refer t o ROM AR as a “ p art n e r s h i p ” an d t h e i n d i v i d u al

jo i n t v en t u rers as “ p art n ers .” An d al t h o u g h t h e M aree Part i es p oi n t o u t t h at t h ey

rel i ed o n a cas e ap p l y i ng co rp o rat e l aw t o defi n e d ead l o ck

, t h e co n t ex t s h ows t h at i t

was o n l y b ecau s e t h ey

were u n ab l e t o lo cat e a cas e s peci fi c t o p art n ers h i p s: “ N o w

, i n o rd er fo r t h ere t o b e dead l o ck

, Geo rg i a l aw i n t h e cas e o f a co rp o rat i on

– we can ’ t

fi nd o n e s p eci fi cal l y i n Geo rg ia o n a p art n ers h i p – t al k s ab o u t fo u r co n cep t s .”

12Ga. Ap p

. 1 6 7

, 1 7 0

, n. 1 0 (7 2 8 SE2 d 8 0 1 ) (2 01 2 ) (arg u m en t n o t rai s ed i n t h e t ri al

co u rt i s wai v ed an d can no t b e rai s ed fo r t he fi rs t t im e o n ap peal ).

2

. T h e Maree Part i es al s o as s ert t h at t he t ri al co u rt erred i n g ran t i n g di s s o l u t i o n

b ecau s e t h ere was no dead l o ck in t h e m an ag em en t o f ROM AR. D es p i t e ag reei n g wi th

t h e vas t m ajo ri t y o f BOA’ s reci t at i o n o f t h e l en g t h y h i s t o ry o f co nt en t i o n an d

s t al em at e b et ween t h e p art i es

, t h ey no n et hel es s arg u e t h at t here was n o d ead l o ck

b ecau s e ROM AR co nt i n u ed to l eas e t he p ro p ert i es an d d i st ri b u t e p ro fi ts t o t h e jo i nt

v en tu rer s

. Ho wev er, a co u rt m ay o rd er d is s o lu t i o n of a p art n ers h i p u nd er v ari ou s

ci rcu m s t an ces ad d res s ed i n OCGA § 1 4 -8 -3 2 (a). Here, aft er rev i ewi n g t h e p art i es ’

ex t en s i v e ev i d en ce a n d c o ns i d eri n g t h ei r arg u m en t s

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

d i s s o l u t i on was an ap p ro p ri at e eq u i t ab l e rem ed y u nd er t h e c i rcu m s t an ces

. See OCGA

§ 1 4 -8 -3 2 (a) (5 ). “ Eq u i t ab l e rel i ef i s g en eral l y a m at t er wi t h i n t h e s o un d d i s cret i o n

o f t h e tri al co u rt

. Th e act io n o f t h e t ri al co u rt s h o u l d b e s u s t ai n ed o n rev iew wh ere

s u ch d i scret i o n h as n o t been ab u s ed .” (Ci t at i o n an d p u nct u at i o n o m i t t e d

. ) Tr o t ma n

v. Vel o ci t ea ch Pr o

j ect Mg mt

., LLC

, 3 1 1 Ga. Ap p

. 2 0 8

, 2 1 0 (2 ) (7 1 5 SE2 d 4 4 9 )

(2 0 1 1). Bas ed o n t h e reco rd b efo re u s

, we fi n d n o ab u s e o f d i s c r et i o n i n t h e t ri al

co u rt ’ s g ran t o f d i s s o l u t io n

.

13M o reo v er, we are al s o pers u ad ed b y BOA’ s arg u m en t t h at d i s s o l u t i o n i s p ro p er

u n d er th e t erm s o f t he Ag reem en t

. 1 2 Parag rap h 1 3 (a) o f t he Ag reem en t p ro v i d es t h at

[t ] h e o ccu rren c e o f an y o n e o f t he fo l l o w i n g ev en t s s h al l cau s e th e

d i s s ol u t i o n o f t h e J oi n t Ven t u re:

(1 ) Th e ex p i rat i o n o f t he t erm o f t h i s ag reem en t ;

(2 ) Th e ag re e m e n t of t wo -t h i rd s i n i n t eres t an d n o t i n n u m b ers o f th e

J o i n t Ven t u rers t o d i ss o l v e t h e J o i n t Ven t u re;

(3 ) Th e m an ag em en t o f t h e J o i n t Ven t u re s h al l b e d ead l o ck ed an d n o

act i o n can b e ap p ro v ed n o r t ak en fo r l ack o f t h e ag reem en t o f a n u m b er o f t h e

J o i n t Ven t u rers en t i t l ed t o v o t e u p o n t h e act i o n s u f f i ci en t t o ap p ro v e an y o f t h e

p ro p os ed co u rs es o f act io n

.

Ev en v i ewed i n t h e l i g h t m o s t fav o rab l e t o t h e M aree Part i es

, t h e reco rd cl earl y

s u p p ort s a fi n d i ng t h at ROM AR h as b een d ead lo ck ed

. Al t h o ug h t h e jo i n t v en t u rers

,

i n cl u d i n g M aree, h av e at t i m es s o u g ht ei t h e r d i s s o lu t i o n an d l iq u i d at i on o r t h e

ap p oi n t m en t o f a n ew m an ag er, t h e p a r t i es h av e n ot b een ab l e t o effect u at e ei t h er

al t ern at i n g co u rs e o f act io n . Acco rd i n g l y

, t h is en u m erat i on o f erro r fai l s

.

1 2 W e wi l l affi rm a g ran t o f s u m m ary j u d gm en t i f i t i s “ ri gh t fo r an y rea s o n

, wh et h er s t at ed o r u ns t at ed i n t h e t ri al co u rt ’ s ord er, s o l o ng as t h e m o v an t rai s ed t h e

i s su e i n t h e t ri al co u rt an d t h e n o nm o v a n t h a d a fai r o p p ort u n i t y t o res p o n d.”

An d er s o n v. Jo n es , 3 2 3 Ga. Ap p . 3 1 1 , 3 1 2 , n

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

143

. In t h ei r t h i rd an d fo u rt h en u m erat i o n s of erro r, t he M aree Part i es arg u e t h at

t h e tri al co u r t e r r ed i n g ran ti n g s u m m ary ju d g m en t t o BOA as t o t h ei r cl ai m o f

co n vers io n ari s i n g fro m BOA’ s p ay m en t o f ap pro x im at el y $ 1 9 0 ,0 0 0 i n at t o rn ey fees

fo r t h e l i t i g at io n u p t h ro u g h Sep t em b er 2 0 1 1 o u t o f ROM AR’ s cas h res erv es

. 1 3 BOA

ad m i t s t h at i t di d so

, b u t m ai nt ai n s t h at t h e p ay m en t o f t h e at t orn ey fees was fo r t h e

b en efi t o f ROM AR an d n o t fo r i t s o wn ben efi t

. In gran t i n g s u m m ary ju d g m en t to

BOA o n t h is co u nt ercl ai m

, t h e t ri al co u rt fo u n d t hat a co n v ers i o n cl ai m d oes n o t ex i s t

b ecau s e th e M aree Part i es d i d n o t p l ead fo r t h e reco v ery o f a s peci fi c fu n d o f m o n ey

.

W e ag ree.

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

[w] h i l e m o n ey co n st i t u t es p ers o n al p ro p ert y

, m o n ey i s i n t an gi b l e

p e r s o n a l t y t h at i s fu n gi b l e, b ecau s e i t b el o n g s to a cl as s o f p ro p er t y

wh i ch can n o t b e d i fferen t i at ed b y s p eci fi c i d en t ifi cat i o n u n l es s t h ere h as

b een c reat ed a s p eci fi c fu n d t hat h as b een s et as i d e fro m o t h er m o n ey

.

Th u s

, t h ere can be n o co nv ers i o n act i o n fo r m o n ey d am ag es fo r m o n ey

,

b ecau s e g en eral l y

, m o n ey i s n o t s u b ject t o a ci v i l act i on fo r co n v ers i o n

.

1 3 No at to rn ey fees were p ai d aft er Sep t em b er 2 0 1 1 f

o l l o w i n g t h e en t ry o f a

TRO t o p res erv e t h e s t at u s q u o d u ri n g l i t i gat i o n

.

15(Ci t at i o n s o m i tt ed .) Ta yl o r v. Po wer t el

, In c.

, 2 5 0 Ga. Ap p

. 3 5 6

, 3 5 9 (2 ) (5 5 1 SE2 d

7 6 5 ) (2 0 0 1 ).

Th e M aree Part i es co rrect l y arg u e th at t h ere are ex cep t i on s t o th i s g en eral ru l e

wh ere th e m o n ey i s a “ s p eci fi c, s ep arat e, i d en t i fi ab l e fu n d ” t o wh i ch th e p l ai n t i ff “ h ad

an i m m ed i at e ri gh t of p os s es si o n .” Ta yl o r

, 2 5 0 Ga. Ap p

. at 3 5 9 (2 ). Ho wev er, t h ey

h av e fai led t o s h o w t h at th e m o ney at i s s u e fal ls wi t h i n s uch an ex cep t i o n

. Th e m o n ey

was wi t h d rawn fro m a jo i n t fu n d t h at b el o ng ed t o al l jo i n t v en t u rers acco rd i n g t o t h ei r

res p ect i ve o wn ers h i p p ercen t ag es an d wh i ch was u s ed fo r a v ari e t y o f b u s i n es s

p u rp os es

. Cf. Ad ler v. Her tl i n g

, 2 1 5 Ga. Ap p

. 7 6 9

, 7 73 -7 7 4 (2 ) (4 5 1 SE2 d 9 1 ) (1 9 9 4 )

(p ro ceed s fro m a real es t at e refi n an ci n g h el d in es cro w fo r s o l e u s e o f o ne p art y were

s p eci fi c an d i d en t i fi ab le). Th e t ri al co u rt d id n o t err i n g ran t i n g s um m ary ju d g m en t

t o BOA as t o t h e M aree Part ies ’ co un t ercl ai m fo r co n v ers io n

.

4

. In t h ei r fi ft h en u m erat i o n o f erro r, th e Maree Part i es as s ert t h at t h e t ri al co u rt

erred i n d en yi n g s u m m ary ju d g m en t o n th ei r co un t ercl ai m th at BOA’ s u s e o f t h e

ROM AR fu n d s fo r i t s at to rn ey fees was a b reach o f t h e Ag reem en t. In i t s cro s s

ap p eal

, BOA l i k ewi s e arg u es t hat t h e t ri al co u rt s h o u l d h av e d eci d ed t hi s b reach o f

co n tract cl ai m as a m at t er o f l aw. T h e p art i es are co rrect t h a t “ [ a] t l eas t i n i t i al l y

,

[co n t ract ] co n s t ru ct i o n is a m at t er o f law fo r t h e co u rt

. Fi rs t

, t h e t ri al co u rt m u s t

16d eci d e wh e t h e r t h e l an g u ag e is cl ear an d un am b i g u o u s

. If it i 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 i t s cl ear t erm s ; th e co nt ract al o n e i s l oo k ed t o fo r

i t s m ean i n g .” (Ci t at i o n o m i tt ed .) Ma p ei Co r p . v. Pr o s ser

, _

_ Ga. Ap p

. _

_ (4 ) (Cas e

No

. A1 4 A0 3 6 8

, d eci d ed J u l y 9

, 2 0 1 4 ). Becau se t h e co n s t ru ct i o n o f c o n t ract s i s a

m at t er of l aw, t h e t ri al co u rt ’ s a p p l i c a t i o n i s rev i ewed d e n o vo

. See McKi n l ey v.

Co l is eu m Hea l t h Gr ou

p , LLC , 3 0 8 Ga. Ap p

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

Tu rn i n g fi rs t t o t h e l an g u ag e o f t h e Ag reem en t, BOA as s ert s t h at Parag rap h 1 4

(b ) al l o wed it t o u s e ROM AR fu n d s to p urs u e d is so l u ti o n o f t h e j o i n t v e n t u re.

Parag rap h 1 4 (b ) o f t he Ag reem en t p ro v i d es :

In t h e ev en t t h e J o i n t Ven t u rers can n o t ag ree u p on t h e s h ares an d

m an n er of d i s t ri b u t i o n wi t h i n s i x t y (6 0 ) d ay s o f t h e ev en t b ri n g i n g ab o u t

d i s s ol u t i o n

, an y J o in t Ven t u rer m ay ap pl y to t h e s en i o r ju d g e o f th e

Co b b J u di ci a l Ci rcu i t

, M ari et t a, Co b b Co u nt y

, Geo rg i a, fo r th e

ap p o i n t m en t o f an ap p rai s er t o ap p rai s e t h e as s et s an d t o d i v i d e th e

as s et s b et ween t h e J o i n t Ven t u rers an d As s i g n ees

.

Th e co s t o f t h i s p ro ced u re, i n cl u d i n g t h e fi l i n g o f an d p ro ceed i n g s

i n reg ard t o th e ap p l icat i o n

, s h al l be p a i d f r o m t h e as s et s o f t h e J o i n t

Ven t u re.

Th e ap p rai s al an d d i v i s i o n s h al l b e fi n al an d bi n d i n g u p o n al l

J o i n t Ven t u rers an d As s ig n ees

.

17Th e M aree Part i es arg u e, h o wev er, t h at t hi s Parag rap h o n l y ap p li es t o t h e

l i qu i dat i o n o f as s et s f

o l l o wi n g d i s so l ut i on o f ROM AR i f t h e p art i es are u n ab le to

ag ree up o n th e m an n er o f d i s t r i b u t i o n

. W e ag ree th at t h e pl ai n lan g u ag e o f t h i s

Pa r a g rap h, p art i cu l arl y wh en read an d co ns i d ered wi t h i n t h e p ro p er co n t ex t o f t h e

en t i re A g reem en t

, 1 4 i s un am b i g u o u s an d d oes n ot p erm i t BOA t o reco v er it s at t o rn ey

fees as s o ci at ed wi t h th e fi l i ng o f i t s p et i t i o n fo r d i s s o l u t io n

. 1 5 No r d o es Parag rap h 1 4

(b ) al lo w BOA t o reco v er at t o rn ey fees i n cu rred as a res u l t o f a cl ai m m ad e b y a jo i nt

v en tu rer ag ai n s t i t

. BOA h as p o i n t ed t o n o ot h er p o rt i o n o f t h e Ag reem en t t h at wo u ld

p erm i t i t t o u t i l i ze ROM AR’ s fu n d s fo r t he p ay m en t o f i t s at t o rn ey fees

, an d we fi n d

n o n e

. Th erefo re, we fi n d t hat BOA b reach ed t h e Ag reem en t wh en i t u n i l at e r a l l y

ex p en d ed ROM A R’ s fu nd s t o d o s o

.

1 4 Fo r ex am

p l e, Parag rap h 1 4 (a) o f t h e Ag reem en t set s o ut t h e g ro u n d s fo r

d i s s o l u t i on an d m ak es n o p ro vi s i o n fo r t h e p ay m en t o f l i t i g at i o n co s t s o r at t o rn ey

fees

.

1 5 W e l i k ewi s e fi n d BOA’ s rel i an ce on Bu t t r i l l v

. B u t t r i l l

, 1 7 9 Ga. 7 5 9 (1 7 7

S E 2 d 5 7 6 ) (1 9 3 4), u n av ai l i n g

. In B u t t r i l l

, al th o u g h th e at t o rn ey fees accru e d f r o m

b ri n g i n g t h e d i s s o l u t i o n p et i t i o n were o rd ered to b e p ai d fro m t h e p art n ers hi p es t at e,

b o t h part n ers h ad jo i nt ly s o u g h t d i s s o lu t io n

, an d o u r Su p rem e Co u rt h el d t h at t h e t ri al

co u rt s h o u l d h av e award ed fees ex p en d ed t o pu rs u e t hei r co m m o n cl ai m s

. Id . Here,

al t h o u g h d i s s o l ut io n was u l t i m at el y gra n t e d

, o n e o f t h e p art i es s harp l y d i s p u t ed

BOA’ s p et it i o n

.

18BOA at t em p t s t o ju s t ify i t s act i o n s b y a r g u i n g t h at i t had t h e au th o ri t y to

“ d ecl are dead l o ck u n d e r t h e [] Ag reem en t an d t o b eg i n d i s s o l u t i o n au t o m at i cal l y ,”

b u t

, “ d u e t o t h e h i s t o ri cal d i ffi cu l t i es an d o ut of an ab u n d an ce of cau ti o n

, [i t] s o u g ht

co u rt -ap p ro v ed d is s o l u t i o n .” T h u s

, i n o rd er t o ex t ri ca t e i t sel f as d efi n it i v el y as

p o s s i b l e, B O A m ad e a s t rat eg i c d eci s i on t o ut i l i ze t h e co u rt sy s t em t o effect

d i s s o l u t i on

. Th i s m ay wel l h av e b een a go o d b u si n es s d eci si o n t h a t w i l l a l l o w t h e

p art i es t o fi n al l y

p art way s; h o w ev er, BOA’ s des i re fo r fi n al i ty d oes n o t ch an g e t h e

p l ai n l an gu ag e of t h e Ag reem en t wi t h res pect t o t h e p ay m en t of at t orn ey fees

, an d

t h at p ri ce m

us t b e b o rn e b y

BOA.

A cco rd i n g l y

, t h e tri al co urt erred b y fai l i n g to fi n d as a m at ter o f law t h at BOA

b reach ed t h e Ag reem en t w i t h res p ect t o i t s pay m en t o f at t o rn ey fees wi t h ROM AR

fu n d s t o t h e ex t en t t h o s e fees were i n cu rred ei t h er i n co n ju n ct i o n wi th t h e fi l i n g o f

t h e p et i ti o n fo r d i s s ol ut i o n o r in d efen d i ng ag ai n s t t h e M aree Part i es ’ co un t ercl ai m s

. 1 6

See Fi del i t

y Na t

. Ti t le In s

. Co

. o

f N.Y

. v. OHIC In s

. Co

. , 2 7 5 Ga. A p p

. 5 5 (6 1 9 SE2 d

7 0 4 ) (2 0 05 ) (t ri al co u rt erred i n f a i l i n g t o d eci d e th e p art i es ’ cro s s -m o t i o n s fo r

1 6 In s o h o l d i n g

, we d o n o t reach t he i s s ue of wh et h er BOA m ay b e en t i t l ed to

t h e reco very o f at to rn ey fees u n d er an y al t ern at e t h eo ry o f reco v ery t h at i t m ay h av e

as s ert ed b el o w an d t h at was n o t ad d res s ed by th e tri al co u rt in it s o rd er o n t h e p art i es ’

cro s s -m o t i o n s fo r s u m

m ary ju d g m en t

.

19s u m m a r y ju dg m en t as a m at t er o f l aw wh ere t h e co n t ract l an g u ag e was

u n am b i g u o u s ). Ho wev er, t o t h e ex t en t BOA in cu rred l eg al fees th at wo ul d b e co v ered

u n d er Parag rap h 1 4 (b ), i .e., t h o s e as s o ci at ed wi t h t h e ap p o i n t m en t o f an ap prai s er to

as s i s t i n t h e ap p rai s al an d d i vi s i o n o f ROM AR’ s as s et s

, BOA wi ll b e perm i t t ed o n

rem an d t o p res en t ev i den ce as t o an y s u ch at t orn ey fees t h at were r e a s o n a b l e an d

n eces s ary

.

5

. In t h ei r fi n a l e n um erat i o n o f erro r, t h e M aree Part i es al l eg e t h at t h e t ri al

co u rt erred b y

n o t g i v i n g an y d i rect i o n o r i n s t ru ct i o n t o t h e m an ag er n o w i n ch arg e

o f t he di s s o l u t i o n

. In it s o rd er, t h e t ri al co u rt fo u n d th at BOA h a d r e q u es t ed t h at

C ollie r s I n te r

na tiona l M an ag em en t -At lan t a, L L C (“ Co l l i ers ” ) be a ppointe d to m a na ge

t h e d i s so l u t i o n an d g av e t h e M aree Part i es 2 0 d ay s t o o bject to Co l l i ers ’ ap p o i n t m en t

an d t o s u b m i t an al t ern at e m an ag er i f neces s ary

. Aft er 2 0 d ay s p as s ed wi t h o ut

o b ject i on

, BOA fi l ed a m o ti o n fo r en t r y o f o r d er ap p o i n t i n g Co l l i ers al o n g wi t h a

p ro p os al d et ai li n g t he d i ss o l u t i o n p ro ced u res

. It was o n ly at th i s p oi n t t h at t h e M aree

Part ies fi led an o p p o s i t i o n

, arg u i n g fo r a n u m b er o f res tri ct i o n s t h at s h o u l d b e p l aced

o n Co l l i e r s

. Befo re th e t ri al co u rt co u ld ru l e, th e M aree Part i es fi l ed th i s ap p eal

,

t h ereb y d ep ri v in g th e t ri al co u rt o f ju ri s d i ct i o n t o ru l e o n t he m o t i o n. Becau s e t h e t ri al

co u rt h as n o t y et ru l ed on t h e p en d i n g m o t i o n fo r en t ry of an ord er ap p o i n t i n g Co l l i er,

20t h ere is n o er r o r f o r t h i s Co u rt t o rev i ew, an d t h i s en u m erat i o n of erro r i s wi t h o ut

m eri t

. See M

er cer v. W as h i n g t o n Mu t

. Ho me Lo a ns

, In c

. , 2 8 7 G a. Ap p. 3 8 8, 3 8 8 (6 5 1

SE2 d 4 9 9) (2 0 0 7).

Ca s e No . A1 4 A0 8 7 6

In i t s cro s s -ap p eal

, BOA al l eg es t h at t h e t ri al co u rt s h o u l d h av e g ran t ed i t s

m o ti o n fo r s u m

m ary ju d g m en t o n each o f t h e M aree Part i es ’ co u n t ercl ai m s

.

6

. In i t s fi rs t two en u m erat i o n s o f erro r, BOA arg u es th at t h e t ri al co u rt s h o u ld

h av e g ran t ed i t s m o t io n fo r su m m ary ju d gm en t o n t h e M aree Part i es ’ v ari o u s b reach

o f co n t ract co u n t ercl a i m s a n d

, t h erefo re, t h ei r b reach o f t he d u t y o f g o o d fai t h an d

fai r d eal i ng co u n t ercl ai m as wel l

. Th es e cl ai m s s t em fro m t h ei r al l eg at i o n s th at BOA

(a) fai l ed t o p ro p erl y m ark et t h e 8 0 0 0 Mi ll er Co u rt Pro p e r t y, ( b ) i m p ro p erl y u s ed

ROM AR fu n d s to p ay i t s at t o rn ey fees i n co nn ect i o n wi t h t h i s act i o n

, a n d (c)

i m p ro p erl y u s ed ROM AR f u n d s t o pay i t s at t o rn ey fees i n co n n ect io n wi t h t h e

p rep arat i o n o f an am en d ed Ag reem en t

.

(a) Th e M aree Part i es cl ai m t h at BOA b reach ed t he Ag reem en t an d t h e d u t y o f

g o o d fai t h an d fai r d eal in g i n i t s h an d l i n g o f t h e 80 0 0 M i l l er Co u rt Pro p ert y

.

Sp eci fi cal l y

, th ey cl ai m t h at i n 2 0 0 2

, t h e 8 0 0 0 M i l l er Co urt Pro p ert y was no t l eas ed

an d BOA fai l ed fo r m o n th s t o t ak e act io n t o effect iv el y m ark et t h e p ro p ert y

, al l o wi n g

21i t t o rem ai n v acan t fo r ap p ro x im at el y o n e y ear u n t i l a n ew l eas e was fi n al l y ex ecu t ed

.

Th ey al s o cl ai m t h at a si m i l ar s i t u at i o n o ccu rred i n 2 0 0 5

. Al t h o u gh th e t en an t ’ s l eas e

d i d n o t ex p i re u n ti l Au g u s t 3 1

, 2 0 0 5

, t h e t en an t l eft th e p ro p ert y i n No v em b er 2 0 0 4.

Ho wev er, BOA d i d n o t li s t th e 8 0 0 0 M i l l er Co u rt Pro p ert y fo r l eas e u nt i l Sep t em b er

2 0 0 5

, an d i t rem ai n ed u n l eas ed u n t i l i t was ev en t u al ly s o l d i n 2 00 7 as p art o f t h e jo i nt

v en tu rers ’ l i qu i d at i o n at t em p t s

.

Th e Ag reem en t d efi n es ROM A R’ s b u s i n es s as “ acq u i ri n g

, h o l d i n g,

m ai n t ai n i n g, leas i n g

, ex ch an g i n g

, an d d i s p o s i n g o f” t h e p ro p ert i es o wn ed by

RO M A R

, b ut i s s i l en t as t o t h e p reci s e m an n er i n wh i ch BOA i s “ t o m an ag e an d

co n tro l ” t h at b u s i n es s

. H o w ev er, “ ab s en t an ex p res s co n t ract u al p ro v i si o n t o t h e

co n trary

, a d u t y o f go o d fai t h a n d fai r deal i ng i s i m p li ed in t o al l no n leas eh o ld

co n tract pro v i s i o n s g ran t i n g d is cret i o n t o o n e o f t h e p art i es .” Hu n t i n g Ai r cr a f t

, In c.

v. P ea ch t r ee Ci t

y Ai r p o r t Au th or i t

y

, 2 8 1 Ga. Ap p. 4 50

, 4 5 0 (6 3 6 SE2 d 1 3 9 ) (2 0 0 6 ).

Th u s, wh ere, as h ere, “ th e m an n er o f p erfo rm an ce i s left m o re o r l es s t o t h e d i s cret i o n

o f on e o f t h e p art ies to t h e co n t r a c t

, h e i s b o u n d t o t h e ex erci s e o f g o od fai t h.”

(Ci t at i o n s an d p u nct u at io n o m i t t e d

. ) Id

. at 4 5 3 -4 5 4 (2 ). “ G o o d fai t h an d

reas on ab l en es s d o n o t co m p reh en d arb i t rary o r cap ri ci o us reas o n s

, o r co ns i d erat i on s

b as ed o n p ecu n i ary g ai n

, o r m erel y p e r s o n a l p referen ces ; rat h er, th ey refer t o t h e

22co n s i d e rat i o n s o f fai rn es s an d co m m erci al reas o nab l en es s.” (Ci t at i on s an d

p u n ct u at i o n o m it t ed .) Id . at 4 5 2 (1 ).

BOA d o es no t d is p u t e th at t h e 8 00 0 M i l l er Co urt Pro p ert y rem ai n ed v acan t fo r

p eri o d s o f t i m e. Rat h er, i t fi rs t arg ues t h at th e M aree Part i es ’ cl ai m s rel at ed t o i t are

t i m e b arred b y th e s i x -y ear s t at ut e o f l i m i t at i o n s u nd er OCGA § 9-3 -2 4

. Ho wev er, as

t h e M aree Part ies p o i n t o u t, t h e s t at u t e o f l i m i t at i o n s fo r a co n t ract u n d er s eal , as i s

t h e Ag reem en t

, i s 2 0 y ears

. OCGA § 9 -3 -2 3

. See al so Geo r g i a R ecei va b les

, In c. v.

Ma d d o x , 2 16 Ga. Ap p . 1 6 4 , 1 6 4 (1 ) (4 5 4 SE2 d 5 4 1 ) (1 9 9 5 ).

BOA al s o arg u es t h at t h e M aree Part i es are u n ab l e t o p ro v e d am ag es

.

“ D a m a g es reco v erab l e fo r a b reach o f co nt ract are s u ch as ari s e n at u ral l y a n d

acco rd i n g t o t he u s u al co u rs e o f t h i n g s fro m s u ch b reach an d s u ch as t h e p art i es

co n tem p l at ed

, wh en t h e co n tract was m ad e, as t h e p ro b ab l e res ul t o f i t s b r each .”

OCGA § 1 3 -6 -2 . An d

,

[t ] o av o i d s um m ary ju d g m en t

, a p art y i s n o t req u i red t o p res en t ev i d en ce

o f a s p e c i f

i c d o l l ar am o un t o f d am ag es

. Rat h er, h e m u st o n l y p res en t

ev i d en ce s u ffi ci en t t o s erv e as t h e b as is fo r a fact fi n d er t o cal cu l at e th e

am o u nt o f d am ag es d u e s h o u l d l i ab i l i t y b e e s t a b l i s h ed

. An d i n cas es

s u ch as t h i s o n e, w h ere t h e d am ag es rel at e t o t h e v al u e of real o r

p ers on al p ro p ert y

, t h e q u e s t i on o f v al ue is n orm al l y reg ard ed as

p ecu l i arl y

fo r t h e d et erm i n at i o n o f t h e ju ry . Th u s, a cl ai m fo r d am ag es

23rel at ed t o v al u e wi l l b e s u b m i t t ed t o th e ju ry wh ere t h ere i s an y d at a i n

t h e ev i d en ce u p on w hi ch t h e ju ry m ay l eg i t i m at el y e x erci s e t h ei r o wn

k n o wl ed g e an d id eas

. Af t e r a wi t n es s has g i v en h i s b as i s fo r o p i n i o n

ev i d en ce as t o v al u e, i t i s u p t o t h e ju ry t o d et erm in e i t s wei g ht

.

(Ci t at i o n s an d p u n ct u a t i o n o m i t t ed .) Bea le v. O’S h ea

, 3 1 9 Ga. Ap p

. 1, 6 (1 ) (7 3 5

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

Fo r t h e p eri o d s o f t im e t h at t he 8 0 0 0 M i l ler Co u rt Pro p ert y rem ai n ed v acan t

,

ROM AR wo u l d h av e nat u ral l y s u ffered d am ag es i n t h e fo r m o f l o s t ren t

. An d as

ev i d en ce o f t h e am o u n t o f l o s t ren t

, M aree s u b m i t t ed an affi dav i t t h at ROM AR l o s t

ap p ro x i m at el y $ 8 8 ,0 0 0 i n ren t each y ear t h at t h e p ro p ert y was n o t l eas ed

. W i th

res p ect t o d am ag es cal cu l at ed o n t h e v al ue o f p ro p ert y

,

t es t i m o n y as t o m ark et v al u e i s i n t h e n at u re o f o p in i on ev id en ce. O ne

n eed n o t b e an ex p ert o r d eal er in t h e art i cl e i n qu es t io n b u t m ay t es ti fy

as t o i ts v al ue i f he has h ad an o p p o rt u ni t y fo r fo rm i n g a co rrect o p i n i o n

.

Th e o p p o rt u ni ty fo r fo rm i n g an o p i n i o n as t o v al u e m ay b e es t ab l i s h ed

b y s h o w i n g t h e wi t n es s ’ s ex p eri en ce an d fam i l i ari t y wi t h t he i t em b ei n g

v al u ed

.

24(Ci t at i o n s an d p un ct u at i o n o m it t ed .) Bea l e , 3 1 9 Ga. Ap p . at 6

. 1 7 Here, M aree b as ed

h er es t i m at e o n “ ren t al rat es i n t he area, i nfo rm at i o n fro m ap p rai sal s

, an d [h er]

k n o wl ed g e o f t h e co m

m erci a l r e a l es t at e m ark et in t h e area.” T h i s i s s u ffi ci en t to

creat e a fo un d at i o n fo r t h e ju ry t o co n s i der h er o p i n i o n as t o t he p ro p ert y ’ s ren t al

v al u e. See i d

. at 7 (“ Fo r a wi t n es s t o g i v e h i s op i n i o n as t o v al u e, t h e m u s t g i v e h i s

reas on s fo r fo rm in g t h at op i n i o n b y s h owi n g th at h e h as s o m e k n o wl ed g e, ex p eri en ce,

o r fam i l i ari t y as t o t he v al u e of t h e i t em .”) (p u n ct u at i o n o m it t ed ). See al s o In r e

Es t a t e o f Hu b er t

, 3 2 5 G a

. Ap p

. 2 7 6

, 2 86 -2 87 (6 ) (7 5 0 SE2 d 5 1 1 ) (2 0 1 3 ) (fi n d i n g

s u ffi ci en t fo un dat i o n wh ere wi t n es s ’ s t es t i m o n y es t ab l i s h ed h e was fam i l i ar wi t h t h e

p r o p e r t i es at i s su e, i n wh i ch he h ad an own ers h i p i n t eres t

, an d t h at h e al s o w a s

fam i l i ar wi t h co m

p a rab l e p ro p ert i es

, wh i ch h e h ad co n s i d ered i n reach i n g h i s

o p i n i o n ).

Vi ewi n g t h e ev i d en ce i n t h e l i g h t m o s t f a v o rab l e t o t he M aree Part i es as t h e

n o n m o v an t s

, we fi nd t h at t h ey h av e s et fo rt h su ffi ci en t ev id en ce t o creat e a g en u i n e

1 7 Becau s e t h e s u m

m ary ju d g m en t h eari n g w a s co n du ct ed b efo re J an u ary 1,

2 0 1 3

, fo rm er O C G A § 2 4-9 -6 6 ap p l i es

. See Ga. L. 2 01 1

, p

. 9 9

, § 1 0 1

. Co m p are

OCGA § 2 4 -7 -7 0 1 (b ) u n d er o u r n ew Ev i d en ce Co d e, wh i ch pro v i d es t h at “ [d ] i rect

t es t i m o ny as t o m ark et v al u e i s i n t h e n at u re o f op i n i o n ev i d en ce. A w i t nes s n eed n ot

b e an ex pert o r d eal er i n an art i cl e o r p ro p ert y t o t es t ify as t o i t s v al u e i f h e or s h e h as

h ad an o p p o rt u n it y

t o fo rm a reas o n ed o pi n io n .”

25i s su e o f m at eri al fact reg ard i n g wh e t h e r BOA fai l ed t o m eet i t s co n t ract u al

obliga tions to m a na ge a nd c ontr o l R O M A R ’ s b u si n es s, i n cl u d i n g “ acq u i ri n g

, h o l d i ng,

m ai n t ai n i n g, leas i n g

, ex ch an g i n g

, an d d i s p o s i n g o f” t h e p ro p ert i es o wn ed by

ROM AR an d t h e co rres p o nd in g d u t y o f g o o d fai t h an d fai r d eal i n g w i t h r es p ect to

t h es e p ro v i si o n s

. See Hu n t i ng Ai r cr a f t

, In c.

, 28 1 Ga. Ap p

. at 4 5 2 (1 ) (wh at co n s t i t u t es

g o o d fai t h is a q u es t i on fo r t h e fi n d er o f fact ). A cco rd i n g l y

, t h e t ri al co u rt di d n o t err

i n d en y i n g B O A ’s m o t io n fo r s u m m ary ju d g m en t as t o t h e M aree Part i es ’

co u n t e r c l a i m s fo r b reach o f co n t ract an d b reach o f t h e d u t y o f g o od fai th an d fai r

d eal i ng reg ard i ng i t s m an ag em en t o f th e 80 0 0 Mi l l er Co urt P r o p e r t y. See, e.g

.,

Ra cet t e v. Ba n k o

f Amer i ca , 3 1 8 Ga. Ap p. 1 7 1 , 1 8 1 (5 ) (7 33 SE2 d 4 5 7 ) (2 0 1 2 ).

( b ) F o r t h e reas o n s d i s cu s s ed i n Di v i s io n 4

, BOA’ s arg u m en t t h at i t d i d n o t

b reach t he Ag reem en t wh en i t pai d i t s at t o rn ey fees w i t h ROM A R’ s fu nd s fai l s as a

m at t er o f l aw t o t h e ex ten t t h o s e fees w e r e i n cu rred fo r an y reas on o ut s i d e t h o s e

s p eci fi cal l y d el i n eat ed i n Parag rap h 1 4 (b ) o f t h e A g reem en t

. Fo r th e s am e reas o n s

,

t h e t ri al co u rt co rrect l y d en i ed s um m ary ju d g m en t o n t h e co rres p o nd i n g co u n t ercl ai m

fo r b reach o f t h e d u t y

o f g o od fai t h an d fai r d eal i n g

.

(c) Th e M aree Part i es al s o as s ert ed a b reach o f co n tract co u n t ercl ai m b as ed o n

BOA’ s u se o f ROM AR fu n d s t o p ay i t s at t o rn ey fees ari s i ng fro m t he prep arat i o n o f

26an am en d m en t t o t h e A g reem en t

. Th ey arg ue t h at t h e am en dm en t was u n d ert ak en fo r

t h e p u rp o s e o f r e p l aci ng BOA as t h e M an ag er, wh i ch is o u t s i d e t h e s co p e o f t h e

au t h o ri t y v es t ed i n t he M an ag er. Ho wev er, t he M aree P a r t i e s h a v e ad m i t t ed t h at in

2 0 0 7

, Maree ag ai n d em an d ed t h at BOA b e rep l aced as M an ag er. T h ey h a v e al s o

ad m i t t ed t h at

, at a Sep t em b er 2 0 0 7 m eet i ng

, t h e jo i n t ven t u rers u n an i m o u s l y ag reed

t h at t he Ag reem en t an d s t ru c t u r e o f ROM AR wi t h BOA as t h e M an ag er was n o

l o n g er op t i m al

, t h at a n ew, res tat ed A g reem en t s ho u l d be p rep ared t o al lo w fo r t h e

i n s t al lat i o n o f a n ew m an ag er, an d t h at BOA co u l d ret ai n co un s el t o effect u at e t h e

am en d m en t s

. Th e au th o r i t y t o ret ai n co u ns el n eces s ari l y carri es wi th i t th e ri g h t to

p ay co un s el fro m ROM AR fu n d s

. A c c ord i n gl y

, th e t ri al co urt erred i n d en y i n g

s u m m ary ju d g m en t t o BOA o n t h e M aree Part i es ’ b reach o f co n t r a c t a n d b reach o f

t h e d u t y o f g o od fai t h an d fai r d eal i n g co u n tercl ai m s wi th res p ect t o t h e p ay m en t o f

at t o rn ey fees fo r p rep ari n g an am en d ed Ag reem en t.

(d ) In t h ei r am en d ed an s wer an d co u n tercl ai m

, t h e M aree Part i e s s o u g ht

at t o rn ey fees pu rs u an t t o OCGA § 1 3 -6 -1 1 i n co n ju n c t i o n wi t h t h ei r b reach o f

co n tract cl ai m s, an d BOA m o v e d f o r s u m m ary ju d g m en t on t h ei r req u es t fo r t h o s e

at t o rn ey fees

. In i t s ord er, t h e t ri al co u rt d i d n ot s p eci fi cal l y ad d res s t h i s is s u e, b ut

27rat h er d en ied BOA’ s m ot io n fo r s u m m ary ju d g m en t as t o t h e M aree Part i es ’

co u nt ercl ai m

fo r b reach o f co n t ract as a wh o l e.

BOA co n t en ds t h at becau s e t h ere was n o b reach of co n t ract

, t h e M aree Part i es

are, t herefo re, n o t en t i t l ed to at t o rn ey fees u n d er OCGA § 13 -6 -1 1. BOA fu rt h er

co n ten d s t h at ev en i f i t d i d b reach t he Ag reem en t

, t h e M aree Part i es h av e p res en t ed

n o ev i d en ce t h at i t co m

m i t t ed a b reach d u e t o a s i n i s ter m o t i v e or s el f i n t eres t

. W e

fi rs t n o t e t h at c e r t a i n o f th e M aree Part ies ’ b reach o f co n tract co u n tercl ai m s h av e

s u rv i v ed s u m

m ary ju d g m en t

. An d t h ere i s s o m e ev i d en ce t o s u p p o rt t h ei r co n t en t i o n

t h at BOA p ai d i t s at t o rn ey fees o u t o f ROM AR fu n d s t o en ri ch i t s el f. Th erefo re, t h e

t ri al co u rt d i d n o t err i n d en y i n g BOA’ s m ot i o n fo r s um m ary ju d g m en t o n t he M aree

Part ies ’ co u n tercl ai m fo r at to rn ey fees p u rs u an t t o OCGA § 1 3 -6 -1 1 o n t h i s b as i s

. 1 8

1 8 W e n o te, h o w ev er, t hat b ecau s e t h e M aree Part i es ’ breach o f co n t r a ct

co u nt ercl ai m s ap p ear t o ari s e fro m t h e sam e Ag reem en t t h at fo rm s t he b as i s fo r

BOA’ s p et i t i on fo r d i s s o l u ti o n an d acco u n ti n g, th ey m ay b e co m p u l s o ry

co u nt ercl ai m s an d, t h us

, ou t s i d e t h e s co p e o f OCGA § 1 3 -6 -1 1

. See, e.g

., S i n g h v.

S t er l in g Un i t ed

, In c.

, 3 2 6 Ga. Ap p

. 5 0 4

, 5 1 3 (4 ) (7 5 6 SE2 d 7 2 8) (2 0 1 4 ) (p l ai n t i ff-i n

co u nt ercl ai m can n o t reco v ery at t o rn e y f e es u n d er OCGA § 1 3 -6 -1 1 fo r fees

as s o ci at ed wi t h co m

p u ls o ry co u n t ercl ai m ). Ho wev er, b ecau s e BOA d i d no t rai s e t h i s

arg u m en t i n t h e t ri al co u rt o r o n a p p eal

, we d ecl i n e t o co n s i d er i t

. Neb o Ven t u r es

, LLC v. No va

p ro Ri s k S

ol u t i o ns

, L.P.

, 3 2 4 Ga. Ap p

. 8 3 6, 8 4 8 ( 4 ) ( 7 5 2 SE2 d 1 8 )

(2 0 1 3) (“ we d o n o t t h i nk an ap p el l at e co u rt p ro p e r ly o u g h t t o co ns i d er wh et h er t h e

t ri al co u rt was wro n g fo r an y reas o n ”) (ci t at i o n an d p u n ct u at i on o m i t ted ).

287

. BOA n ex t as s ert s th at t h e t ri al co u rt erred i n den y i n g i t s u m m ary ju d g m en t

o n t h e Maree Part i es ’ b reach o f fi d u ci ary d ut y co u n t ercl ai m

. Th e Maree Part i es al l eg e

t h at BOA b reach ed it s fi d u ci ary d u t y wh en i t ab u sed i ts p o s i t i o n as M an ag er t o d i v ert

fu n d s fro m ROM AR to fi n an ce i t s l i t i gat i o n

, wh ich i n tu rn cau s ed a s u s p en s i o n o f t h e

d i s t ri b u t i o n s t o t h e jo i n t v en t u rers

.

It i s w el l s et t l ed th at a cl ai m fo r b reach o f fi d uci ary du t y req u i res p ro o f

o f t h ree el em en t s : (1 ) t he ex i s t en ce o f a fi d uci ary d ut y ; (2 ) b reach of t hat

d u t y ; an d (3 ) d am ag e p ro x i m at el y cau s ed b y th e b reach

. OCGA § 2 3-2

-

5 8 p ro v i d es t hat a fi d u ci ary d u t y ex i s t s “ wh ere o ne p art y i s s o s i t u at ed

as t o ex erci se a co n t ro l l i n g i n fl u en ce o ver t h e w i l l, co n d u ct

, an d i n t eres t

o f an o t h er o r wh ere, fro m a s i m i l ar rel a t i o n s h i p o f m u t u al co nfi d en ce,

t h e l aw req u i res t h e u t m o s t g o o d fai th

, s u ch as t h e rel at i o n sh i p b et w een

p art n ers

, p ri n ci p al

, an d ag en t

, et c.” Th e ex i s t en ce o f a co n fi d en t i al o r

fi du ci ary rel at i o n s h i p i s a q ues t i o n fo r th e ju ry

. Su ch rel at i o n s h i p m ay

b e creat ed b y l aw, co n tract

, o r t h e fact s o f a p art i cu l ar cas e. M o reo v er,

b ecau s e a co n fi d en t i al rel at i o ns h i p m ay b e fo u n d wh en ev er o n e p art y i s

ju s t i fi ed i n rep o s i n g co n f i d e n c e i n an o t h er, t he ex i s t en ce of t h i s

rel at io ns h ip i s g en eral l y

a fact u al m at t er fo r t h e ju ry t o res ol v e.

(Ci t at i o n an d p u n ct u at i o n o m i t t ed .) Bed s o le v. Act i on Ou t d

o or Ad ver t i s i n g JV, LLC

,

3 2 5 Ga. Ap p . 1 9 4 , 2 0 1 (4 ) (7 50 SE2 d 4 4 5 ) (2 0 1 3).

29BOA d o es n o t d i s p u t e t h at a fi d u ci ary rel at i o n sh i p ari s es fro m i t s ro le as t ru s t ee

o f a p art ner t o t h e ROM AR p art n ers h i p

. BOA i n s tead arg u es t hat th ere was n o b reach

o f fi d u ci ary d u t y b ecau s e t h e s u s pen s i o n o f t h e jo i n t v en tu rers ’ d i st ri b u t i o n s was

au t h o ri zed b y t h e jo i n t v en t urers ’ ag reem en t t o rep l en i sh ROM AR’ s res erv es an d

b ecau s e i t s p ay m en t o f at to rn ey fees d i d n o t b reach t h e Ag reem en t.

W h i l e i t i s tru e t h at i n t h i s St at e, a t o rt act i o n can n o t b e b a s e d o n t h e

b reach of a co nt ract u al d u t y o n l y

, i t can b e b as ed o n co n d u ct wh i ch

, i n

ad d i ti o n t o b reach i n g a d u t y i m p os ed b y co n t ract

, al s o b reach es a d u t y

i m p o s ed b y l aw. W h ere pri v at e d u ti es ari s e fro m rel at i on s creat ed b y th e

co n t ract

, ex p res s o r i m

p li ed , o n e m ay

p u rs u e a t o rt act i o n fo r d am ag es

fl owi n g fro m

t he ex erci s e o r fai l u re t o ex erci s e t h at d u t y

.

(Ci t at i o n s an d pu n ct u at i o n o m i t t ed .) S p ea rs v. Ma ck & B er n s t ei n

, P.C.

, 2 2 7 Ga. Ap p.

7 4 3

, 7 4 5 (4 9 0 SE2 d 4 6 3 ) (1 9 9 7) (fi n d i n g part n e r s h a d s o m e fi d uci ary du t y t o t reat

o t h er p art n ers fai rl y an d in g o o d fai t h ). H e r e

, t h e M aree Part ies h av e s u cces s fu l l y

s h o wn t h at BOA b r e a ch ed t h e Ag reem en t t h ro u g h i t s p ay m en t o f at t o rn ey fees

i n cu rred i n fi l i n g th e p et i t i o n fo r di s s o l u t i o n

. M o reo v er, M aree p res en t ed ev i d en ce

t h at t h e j o i n t ven t u rers o n l y ag reed t o su s p en d d i s t ri bu t i o n s i n o rd er to rep l en i s h t h e

res erv es as a res u l t o f BOA’ s warn i n g s t h at b an k ru pt cy m i gh t res u l t i f BOA p rev ai l ed

i n t h i s l aws u i t an d ROM AR d i d n o t h av e s u ffi ci en t fu n d s to pay BOA’ s at t o rn ey fees

.

30Becau s e q u es t io n s o f fact ex i s t reg ard i n g wh et h er BOA ex erci s ed g o o d f a i t h by

d ep let i n g ROM AR fu n d s an d s u s p en d i ng d i st ri b u t i o n s , t h e t ri al co urt d i d n o t err in

d en y i n g BOA’ s m o ti o n fo r s u m m ary ju d g m en t as to t h e M aree Part i es ’ co u n t ercl ai m

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

.

8

. BOA al s o arg u es t h at t h e t ri al co u rt s h o u l d h a v e g ran t ed i t s m ot i o n fo r

s u m m ary ju d g m en t as to t h e M aree Part i es ’ co u n tercl ai m fo r p u n i t i v e d am ag es

. 1 9

“ Pu n i t i ve d am ag es m ay b e award ed o n l y i n s u ch to rt act i o n s i n wh i ch i t is p ro v en by

cl ear an d co n v i n ci n g ev i d en ce t h at t h e d efen dan t ’ s act i o n s s h o wed wi l lfu l

m i s co n du ct

, m al i ce, frau d

, wan t o n n es s, op p res si o n

, or t h at en t ire wan t o f care wh i ch

wo u l d rai s e th e pres u m

p t i o n o f co n s ci o us i n d i fferen ce t o co n s eq u en ces .” O CGA §

5 1 -1 2-5

. 1 (b ). BOA i s co rrect

, o f co u rs e, t h at p u n i t i v e d am ag es are g en eral l y n ot

av ai l ab l e i n an act i o n fo r breach o f co n t ract

. See Tr u s t Co

. Ba nk v. C & S Tr u s t Co

. ,

2 6 0 Ga. 1 2 4

, 1 2 6 (1 ) (3 9 0 SE2 d 5 8 9 ) (1 9 9 0 ); La yer v. Cl i p p er Pet r o l eu m, In c

., 3 1 9

Ga. Ap p

. 4 1 0

, 4 2 0 (8 ) (7 3 5 SE2 d 6 5 ) (2 01 2 ). Ho wev er, a b reach of fi d uci ary d u t y

wi l l s u p p o rt an award o f p u ni ti v e d am ag es

. See Bu nch v. Byi n g to n

, 2 9 2 Ga. Ap p

. 4 9 7,

1 9 W e reject BOA’ s i ni t i al arg u m en t t h at t h e M aree Part i es wai ved t h ei r cl ai m

fo r p u n i t i v e d am ag es b y n ot ad dres s i n g i t i n t h ei r s u m m ary ju dg m en t b ri efi n g b el o w.

T h ro u g h an i n d ep en d en t rev i ew o f t h e reco rd

, we fi n d th at t h ey di d i n fact a d d r e s s

p u n i t i v e d am ag es in t h ei r J u n e 8

, 2 0 1 2 o p p o s i t i on b ri ef an d al s o at t h e heari n g o n t h e

cro s s -m o t i o n s

.

315 0 4 (4 ) (6 6 4 S E 2 d 84 2 ) (2 0 0 8 ). Becau s e we fo u n d in Di v i s i o n 7 t hat t h e M aree

Part ies ’ co un t ercl ai m fo r b reach o f fi d u ci ary du t y s u rv i v es

, an d b ecau s e t h ey h a v e

p r e s e n t e d ev i d en ce fro m wh i ch a ju ry co u l d pro p erl y co n cl u d e t h at an award o f

p u n i t i v e d am ag es i s warran t ed

, t h i s e n u m erat i o n o f erro r fai l s

. See Fer n a n d ez v.

W eb S i n g u l ar i t

y, In c

. , 2 9 9 Ga. Ap p . 1 1

, 2 0 (7 ) (6 8 1 SE2 d 7 17 ) (2 0 0 9 ).

9

. Las tl y

, BOA m ai n t ai ns t h at t he t ri al co u rt s h o u l d h av e g ran t ed i t s req u es t fo r

an o rd er p erm it t i n g t h e pay m en t o f at t orn ey fees o u t o f ROM AR’ s jo in t fu n d s

. As

d i s cu s s ed in D i v i s i on 4, ROM AR i s o n l y p erm i t t ed t he p ay m en t of an y reas o n ab l e

at t o rn ey fees i t m ay

h av e i n cu rred t h at w o u ld b e au t h o ri zed u n d er Parag rap h 1 4 (b )

o f t h e Ag reem en t

, i .e., t h os e as s o ci at ed wi th th e ap po i n t m en t of an ap p rai s er t o as s i s t

i n t he ap p rai s al an d d i vi s io n o f ROM AR’ s as s et s

.

In s u m

, we affi rm t h e t ri al co u rt ’ s o rd er g ran t i n g di s s o l ut i o n an d s u m m ary

ju d g m en t t o BOA as t o t he M aree Part i es ’ co n v ers i o n cl ai m

. W e a f f i rm t h e t ri al

c o u rt ’ s o rd er d en y i ng s u m m ary ju d gm en t t o BOA as t o t h e M aree P a r t i e s ’

co u nt ercl ai m s fo r breach o f co n t ra c t a n d b reach o f t h e d u t y o f g o od fai th an d fai r

d eal i ng as t o BOA’ s m an ag em en t o f th e 8 00 0 M i l ler Co u rt Pro pert y

, b reach o f

f i d u c i ary d u ty

, an d fo r at t o rn ey fees p u rs u an t t o OCGA § 1 3 -6 -1 1

. W e rev er s e t h e

t ri a l c o u rt ’ s den i al o f s u m m ary j u d g m en t t o BOA as t o t h e M aree Part i es ’

32co u nt ercl ai m s fo r breach o f co n t ract an d b reach of t h e d u t y o f g o od fai th an d fai r

d eal i ng wi t h res p ect t o BOA’ s p ay m e n t o f a t to rn ey fees as so ci at ed wi t h t h e

p rep arat i o n of an am en d ed Ag re e m e n t

. W e fu rt h er fi n d t h at t h e M aree Part i es ’

co u nt ercl ai m fo r p un i t i v e d am ag es s u rv i v es su m m ary j u d gm en t

. An d fi n al l y

, we

rev ers e t h e t ri al co u rt ’ s den i al o f s u m m ar y j u d g m en t o n t he M aree Part i es ’

co u nt ercl ai m fo r b r e a ch o f co n t ract w i t h res p ect t o BOA’ s p ay m en t o f cert ai n

at t o rn ey fees u s i n g ROM AR fu n d s an d t h erefo re rem an d fo r fu rt h er p ro ceed i ng s

co n si s t en t wi t h t h i s o p i ni on

.

Ju d g men t s a ff i r m ed i n p a r t

, r ever s ed i n p ar t an d ca ses r ema n d ed

. Ph i p p s

, C.

J., a n d El l i n g t o n , P. J., co n cu r

.

33