THI RD DI VI SI ON

DOYLE, P. J.

, REESE and BROWN, 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.

https ://w w w

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

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

H I S

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

TH E TIM E S S E T B Y

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

.

M ar ch 10, 2022



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A2 1 A1 80 9 . CARLISLE v . BROE.

A2 1 A1 81 4 . BROE v . THE CRAFTY YANK, LLC.

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

Th es e cas es trace back to a l o n g -ru n n in g d is p u t e in v o l v i n g Th e Craft y Yan k,

LLC, a co m

p an y m an ag ed b y M ark Bro e, an d Jo h n Carl i s l e (n o w d eceas ed ) reg ard i n g

a l eas e an d a b rew p ub b u s in es s cal led Th e Eag l e an d Th e Li on

. 1 Th e p u b o p erat ed

o n co m m erci al p ro p ert y

l eas ed b y

Ho m e Pl ace Pro pert i es

, In c., t o Th e Craft y Yan k

an d Bro e. Two l aws ui ts re l e v an t t o t h es e ap p eal s en s u ed : Ho m e Pl ace Real t y s u ed

Bro e in Feb ru ary 2 0 1 3 seek i n g da m a ge s rel at ed to al l eg ed b reach es o f th e co m m erci al

1 A s u g g es t i o n o f d eat h i n t h e reco rd i n di cat es t hat Carl i s le d i ed o n M arch 3 0,

2 0 2 1

. Fo r p u rp o s es o f t h i s ap p eal

, an d ab s en t an y rel ev an t d i st i n ct i o n b et ween

Carl i s l e an d h i s es t at e, we refer t o C a r l i s le an d h i s es t at e i n t erch an g eab l y as

“ Carl i s l e.”l eas e 2 (“ L an d l o rd Ten an t Laws u i t ”), an d Th e Craft y Yan k in M ay 2 0 1 3 s u ed Bro e fo r

d am ag es al l eg ed l y ari si n g fro m Bro e’ s co n d u ct wh i l e ru nn i n g t he b u s i n es s

(“ Fi d u ci ary

Du t y Laws u i t ”).

In t h e Lan d l ord Ten an t Laws u i t

, Cas e No

. A 21 A1 8 0 9, Carl i sl e, wh o was al s o

t h e p res i den t o f Ho m e Pl ace Real t y

, ap peal s fro m a p o s t -ap p eal o rd er en t eri n g a

ju d g m en t i n h i s fav o r b u t n o t award i n g h i m d am ag es o r a n ew t ri al

.

In t h e Fi d u ci ary Du t y Laws u i t

, Cas e No

. A2 1 A1 8 14

, d efen d an t Bro e ap p eal s

fro m an o rd er g ran t i ng s u m m ary ju d g m en t t o p l ai n ti ff Th e Craft y Yan k as t o Bro e’ s

l i ab i l i t y fo r cl ai m s o f b reach o f fi d u ci ary d u t y , b reach o f co n t ract , an d co n v ers i o n

.

Fo r t h e reas o n s t h at fo l l o w, we affi rm in Cas e No

. A2 1 A 1 8 09 an d rev ers e in

Cas e No . A2 1A1 8 1 4

.

Ca s e No . A2 1 A1 8 0 9

Pr o ced u r al Ba ckg r o un d

. Th e rel ev an t b ack g ro un d w as fi rs t reco u n t ed b y t h i s

Co u rt i n Ca r li s l e v. Br o e (Ca r l i s l e I) : 3

[Th e Lan dl o rd Ten an t Laws u i t ] ari s es ou t o f a d i s p u t e o v er a

co m m erci al l eas e ag reem en t (t h e “ Leas e”) en t ered i n t o i n Sep t em b er

2 Bro e fi l ed rel at ed co u n tercl ai m s ag ai ns t H o m e Pl ace an d ad d ed Carl i s l e as a

co u nt ercl ai m

d efen d an t

.

3 3 3 7 Ga. Ap p . 4 0 8 (7 8 7 SE2 d 3 4 0 ) (2 0 1 6 ).

22 0 1 1

. Un d er th e Leas e, p rem i s es l o cat ed i n Gri ffi n

, Ge o rg i a (t he

“ Prem i s es ”) were l eas ed t o Th e Craft y Yan k

, I n c

. (t h e “ Ten an t ”) b y

Carl is l e. Bro e, Th e Craft y Y an k ’ s CEO, p ers o n al l y g u aran t eed th e

Ten an t ’ s p erfo rm an ce o f t he Leas e. Carl i s l e cl ai m s t h e Ten an t b eg an

v i o l at i n g th e Leas e i n n u m ero u s way s s h ort l y aft er t h e b u si n es s b eg an

o p erat i o n u n der t h e Leas e. Carl i s l e al l eg es t h e T en an t vi o l at ed st at e an d

l o cal laws

, a s w e l l as perm i t t ed cu s t o m ers to v an d al i ze t he Prem i s es

,

i n t erfered w i t h ot h er t en an t s ’ u s e an d en jo y m en t of t h e P r em i s es

, an d

fai l ed t o p ay fo r wo rk p erfo rm ed o n t h e Prem i s es t hat res u l t ed i n a l ien

b ei n g fi l ed o n t h e t it l e o f t h e Prem is es

.

On J an u ary 5

, 2 0 1 3

, Carl i s l e t o o k p o s s es s i o n an d co n t ro l o f th e

Prem i ses an d s ecu red al l t h e p ers o nal p ro p ert y wi t h i n

. I n a n e

- m a i l t o

t h e Ten an t

, Carl i s l e cl ai m ed h e was s ei zi n g t h e Prem i s es d u e to Ten an t ’ s

v i o l at i o n s o f p arag rap h s 1 8 an d 1 9 o f t h e L eas e. Carl i s l e co n t en ded t hat

p arag rap h 2 7 o f t h e Leas e au th o ri zed h i m t o reen ter an d t ak e p o ss es s i o n

o f t h e Prem is es

, an d Parag rap h 2 4 au t h o ri zed h im t o s ecu re al l p ers o nal

p ro p ert y o n t h e Prem is es

. He g av e t h e T en an t fi v e d ay s t o b eco m e

co m p li an t wi t h th e L eas e o r t h e Leas e wo ul d b e t erm i nat ed

. Bro e, wh o

act ed as th e a g e n t fo r t h e Ten an t

, s en t Carl is l e co rres p o n d en ce o n

J an u ary 1 0

, 2 0 13

, t h ro ug h h i s at t orn ey

, i n d i cat in g t h e Ten an t ’ s d es i re t o

t erm i n at e t h e Leas e.

On Feb ru ary 8

, 2 0 1 3

, Carl i s le bro u gh t t h e u n d erl y i n g act i o n

ag ai ns t Bro e, as g u aran t o r, s eek i n g p ay m e n t o f ou t s t an d i n g ren t

, l at e

fees

, an d t h e co st o f rep ai rs t o th e Prem is es

. Bro e fi l ed an an s wer an d

co u n t ercl a i m t h at i n cl u d ed cl ai m s fo r decl arat ory ju d g m en t

, wro n g fu l

3ev i ct i o n

, t r e spa ss, co n v ers i o n

, b reach of co n t ract

, p un i ti v e d am ag es

, an d

at t o rn ey fees

. On S e p t em b er 2 2

, 2 0 1 4

, Bro e fi l ed a m o t i o n fo r p art i al

s u m m ary ju d g m en t o n hi s cl ai m s fo r d ecl arat o ry ju d g m en t

, w r on g fu l

ev i ct i o n

, t res p as s

, an d co n v ers i o n

, arg u i ng t h at t h e Leas e w as i n v al i d

an d t h u s th e T en an t w as n o t s u b ject to t h e t erm s o f t h e Leas e. Car l i s l e

fi led h i s own m o t i o n fo r s u m m ary ju d g m en t o n Feb ru ary 1 3

, 2 0 1 5

,

co n t en d i n g t h at Bro e’ s cl ai m s fo r w ro n g fu l ev i ct i on an d tres pas s s h o u l d

b e d i s m i s sed as a m at t er o f l aw.

Th e tri al co u rt en t ered an ord er o n t h e cro ss -cl ai m s fo r s u m m ary

ju d g m en t o n J ul y 1 7, 2 0 1 5

. Th i s ord er co n so l i d at ed th e t ri al co u rt ’ s

ru l i n g s o n p en d i n g m o ti o n s i n t h is an d sev eral o t h er rel at ed cas es

. W i t h

res p ect t o t h e m o ti o n s fo r s u m m ary ju d gm en t rel ev an t t o t h i s cas e, th e

t ri al co u rt d en i ed Carl i s l e’ s m o t i o n fo r s um m ary ju d g m en t as t o Bro e’ s

cl ai m s fo r wro n g fu l ev i ct i o n an d t res p as s

. . . an d award ed s u m m ary

ju d g m en t t o Bro e, fi n d in g C a r l i s le l i ab l e fo r wro n g fu l ev i ct i o n an d

t res p as s [; ] Bro e’ s co n v ers i o n cl ai m was wi t h drawn

. [Carl i s l e’ s ] ap peal

fo l l o wed

. 4

On ap peal

, t h i s Co u rt ru l ed t h at t h ere were fact u al i s s u es reg ard i ng t h e p ay m en t

o f cert ai n l at e fees a n d t h erefo re Carl i s l e’ s ri g h t to reen t er t h e Prem i s es :

“ A c co rd i n gl y

, t h e gran t o f s u m m ary j u d g m en t i n fav o r o f Bro e o n h is cl ai m s o f

wro ng fu l ev i ct i on an d t res p as s

. . . an d t h e d en i al o f s um m ary ju dg m en t as t o Carl is l e

4 Id . at 4 0 9 -4 1 0

.

4o n t h e s am e i s h ereb y v acat ed

, an d t h e t ri al co u rt i s ord ered t o m ak e d et erm i n at i on s

co n si s t en t wi t h t h i s o p i ni on .” 5

On rem an d

, a t ri al en s u ed

, an d t h e ju ry fo un d i n fav o r o f t en an t Bro e, award i n g

h i m $ 2 51 ,6 8 1 .2 3 i n d am ag es

, wh i c h i n c l u ded $ 1 0 0 ,0 0 0 i n p un i t i v e d am ag es an d

$ 6 1 ,3 2 8 .7 3 i n at t o rn ey fees

. Carl i s le ap p eal ed th e d en i al o f h i s m o t i o n fo r n ew t ri al

an d ju dg m en t n o t wi t h st an d i n g t h e v erd i ct (“ J N OV”), as rec o u n ted i n t h i s Co urt ’ s

u n p u b l i s hed o p i n i o n i n Ca r l i s l e v. Br o e 6 ( Ca r l i s l e II ). 7

[T] h e [t ri al ] ev i d en ce s h o ws t h at Bro e an d Carl i s l e en tered i n t o a

l eas e i n wh i ch Bro e w ould r e nt s pace fo r a b r e w p u b i n a b u i l d i n g

Carl is l e o wn ed in Gri ffi n

, G e or gia

. P e r t he te r m s of the le a s e

, B r oe w ould

pay $ 3 ,0 0 0 p er m on t h fo r a fi v e-y ear le a s e

. R e nt w a s due o n the f i r st of

t h e m o nt h

, wi t h l at e fees as s es s ed at $ 2 5 p er d ay

. . . . [T] he la nd l o rd

r e ta ine d the r ight to t erm i n at e t h e l eas e fo r ei t h er fai l ure t o p ay an y

p o rt io n of the r e nt or f

o r the f a ilur e to a bi d e b y an y o f t h e l eas e t erm s

, wit h

s ev en d ay s n o t i ce req u i red i n ei t h er cas e. A d d i t i o n al l y

, u nd er

[Parag rap h ] 2 4 o f t he l eas e, “ [i ] f an d wh en ev er t he T e na nt is in de f

a ult

in pa y m e nt of a ny m

one y

, w h et h er

. . . d eem ed as ren t

, or an y p art of the

r e nt, the L a n d lor d m a y

, w itho u t n ot i ce o r an y fo rm o f leg al pro ces s

, en t er

5 Id . at 4 1 3

.

6 Cas e No . A1 9 A1 8 2 1 (d eci d ed M arch 1 1 , 2 0 2 0 ).

7 As need ed

, we hav e rel ied o n t h e reco rd i n Ca r l i s l e II (Cas e No

. A1 9 A1 8 2 1 ),

wh i ch rem ai n s wi t h t h i s Co urt at t h e p res en t t im e.

5u p o n the P r e m ises an d s ei ze, rem o v e an d s el l t h e Ten an t ’ s g o o d s [.] ” In

co n ju n ct i o n wi t h this pr ovisi o n

, [ P a r a g r a ph] 27 ( g) p ro vi d es : “ [i ] f th e

Lan d l ord reen t ers t he Prem i s es o r t erm i n at es this L e a s e, t h en

. . . aft er

reen try

, t h e Lan d l o rd m ay t erm i n at e t h e Leas e o n g i vi n g 5 d ay s wri t ten

n o t i ce o f term in at i o n t o t h e T e n a n t

. W i t h ou t t h i s n o t i ce, reen t ry o f th e

Prem i ses b y

t h e Lan d l o rd o r i t s ag en t s wi l l n o t t erm i n at e t h i s Leas e.”

Bro e s i g n ed t h e leas e an d b eg an ren o v at in g t he s p ace to i n st al l th e

b rewery

. H e o bt ai n ed s ev eral i n v es t o rs

, i n cl u di n g Carl i s l e, an d Carl i s l e

s o l i ci t ed ad d i t i o n al inve stor s. H e a lso f or m e d a c o r por a tion, Th e Craft y

Yan k

, LLC, as t h e o wn er o f t h e pub. B r oe w a s a n e m ploy e e o f the pub,

w it h an em

p l o y m en t co n t ract th at o ffered h i m a bas e p ay o f $ 48 ,0 0 0 p er

y ear fo r t h ree y ears

.

T h e p u b o pen ed i n March of 2 0 1 2 [,] an d al m o st im m ed i at e l y

Carl is l e b eg an t o co m

p l ai n ab o u t t he cu s t o m ers an d v an d al i s m

. Carl i s l e

al s o s t art ed d em an di n g t h at B r oe pa y a sha r e of the utilitie s in t he

c om m on a r e a

, but B r oe r e f

u s ed . Carl i s l e t h en t ri ed t o i n creas e t h e ren t

,

s t art ed b l o ck in g acces s t o t h e hal l way b at h ro o m s aft er h o u rs

, an d l o ck ed

t h e d o o rs t h at l ead fro m t h e b u i l d i n g i n t o t h e p u b

. Th e p u b ’ s b u s i n es s

s u ffered d u e t o Carl i sl e’ s act i o ns

.

In Oct o b er, Bro e fai l ed t o pay th e ren t b y t h e f i rs t o f t h e m o n th

.

He p ai d i t o n Oct o b er 4 t h

. . . a n d p a i d t h e $ 7 5 l at e fees b y a s ep arat e

ch eck

. H o w e v er, t h e ch eck b o u n ced b efo re i t u l t i m at el y cl eared o n

Oct o b er 1 2

. Bro e t en d ered an o t h er $ 1 5 0 c he c k to c ove r la t e f e e s

, fo r a

6t o t al o f $ 22 5 i n l at e fees

, l eav i n g a b al an ce d u e of $ 50

. Bro e m a d e th e

ren t al p ay m en t s fo r t h e res t o f 2 0 1 2 an d fo r J an u ary 2 0 13

.

N e v ert h el es s

, i n earl y J an u ary

, Carlisle loc k e d the d oor s of the pub

an d n o t i fi ed Bro e b y l et t er t h at h e was i n b reach o f t h e l eas e an d t hat

Carl is l e was t ak i ng p o s s es s i o n o f t h e p ro pert y

. Sp eci fi cal l y

, Carl i s l e

ex p l ai n ed t hat Bro e v i o l at ed t h e term s o f th e l eas e by fai li n g t o ex erci s e

co n t ro l o v er t h e p u b ’ s cu s t o m ers

, wh i ch res u l t ed i n il leg al a c t i v i t y o n

,

an d d am ag e to

, t h e p ro p ert y

, fai l i n g t o rei m b u rs e C a r lisle f

o r r e pa ir s to

the p ro p ert y

, an d du e t o t h e d efau l t i n p ay m en t o f t he l at e fees

. P e r the

te r m s of [ P a r a gr a

ph] 27 ( g), Carl i sl e t o o k p o ss es s i o n o f t h e p ro p ert y an d

g av e Bro e fi v e d ay s t o rem ed y t h e v io l at i o n s.

Carl is l e i m

p o s ed s ev eral co n d i ti o n s b efo re h e w o u l d al l o w Bro e

t o reo pen t he p u b

, i ncl u d i n g h i ri n g s ecu ri t y

, ch an g in g t he p u b ’ s h o u rs

,

an d g i v i ng Carl i s l e acces s to a ll f ina nc ia l doc um e nts. Ov er t h e n ex t fi ve

d ay s

, Bro e an d Carl i s l e fai l ed t o co m e to an ag reem en t

, an d Bro e

t erm i n at ed t h e l eas e. Bro e b el i ev ed t h at t h e real reas o n Carl i s l e loc ke d

him ou t o f t h e p u b was b ecau s e h e h ad refu s ed t o p ay ad d it i on al ren t an d

Carl is l e wan t ed t o t ak e co n t ro l o f t h e b u s i n es s

.

In h i s own t es t i m o n y

, Carl i s l e ad m i tt ed t h at h e to o k co n t ro l o f th e

p u b t o e n d i l l eg al act iv i t i es

. . . an d b ecau s e i t w as o b v io u s t h at th e

b u s i n es s was fai l i n g an d t h at th e c ustom e r s w e r e out of c on t ro l

. Carl i s l e

al s o t es t i fi ed t h at h e h ad t h e ri g h t t o reen t er the p ro p ert y u n d er t he l eas e

wh en Bro e fai l ed t o pay al l t h e l at e fees t h a t w e r e d u e. Aft er Carl i s l e

7s u ed Bro e fo r b reach o f co n t ract

, Bro e co u nt ercl ai m ed fo r w ro n g f u l

ev i ct i o n an d t res p as s

.

Fo l l owi n g a s ev en -d ay t ri al

, th e ju ry fo u nd i n fav o r o f Bro e, an d

award ed d am ag es in the a m ount of $9 0 ,5 0 0; p u n i t i v e d am ag es o f

$ 1 0 0 ,0 0 0[; ] an d at t o rn ey

fees i n t h e am o u n t o f $ 6 1,3 2 8 .7 3

, wh i ch w as

l at er o ff-s et by $ 1 4 7 .5 0

, fo r a t o t al o f $ 2 5 1,6 8 1 .2 3 in da m a g e s an d

at t o rn ey fees

. Carl i s l e fi led m o t i o n s fo r J NOV an d a ne w tr ia l, both of

w hic h the tr i al co u rt d en i ed aft er a h eari ng

. Carl i s l e n o w ap p eal s [i n

Ca r l i s l e II

]

. 8

In Ca r l i sl e II

, t h i s Co u rt h el d :

Carl is l e was en t i t l ed t o J

NOV b ecau s e t h e ev i d en ce s h owed t h at Bro e

b reach ed t h e l eas e wh en h e fai l ed t o pay t h e fu ll am o u n t o f t h e l at e fees

,

an d t h us Carl i s l e was en ti t l ed to reen t er t h e p ro p ert y [u n d er t h e t erm s o f

t h e l eas e]

. . . . [T] h ere was n o co n fl i ct i n th e ev i d en ce ab o ut t h e Oct ob er

l at e p ay m en t

, an d t h e o n l y co n cl u s io n fo r t he ju ry t o reach was t hat

Bro e’ s b reach au t h o ri zed Carl i s l e t o reen ter. Carl i s l e was t h erefo re

en t i t l ed t o J

NOV, an d t h e t ri al co u rt erred i n d en y i n g t h e m o t i o n

. 9

Pr es en t Ap

pea l

. Th e ab o v e p ro ced ural h i st o ry bri n g s u s to th e p res en t ap p eal

,

wh i ch aro s e fro m t h e p ro ceed i ng s aft er t h e cas e was rem an d ed

.

8 (Fo o t n ot es o m i t t ed .) Id

.

9 Id

.

8Fo l l owi n g rem an d , t h e t ri al co u rt en t ered t h e fo l l o w in g o rd er:

Up o n rem i t t i t u r fro m t h e G e o r g i a Co u rt o f Ap p eal s i n [ Ca r l i s l e

II ,] t h i s m a t ter [co m es ] b efo re t h e [t ri al co u rt ]

. . . . [Carl i s l e] arg u e[s ]

t h at h i s cl i en t w as n o t o n l y en t i t l ed to a ju d g m en t i n Carl i s l e’ s fav o r, b u t

al s o fo r an award o f d am ag es an d at to rn ey fees

. [Bro e] arg u e[s ] th at t h i s

Co u rt [d o es ] n o t h av e ju ri s d ict i o n t o award d am ag es an d at t o rn ey fees [,]

an d i f t he Geo rg i a C o u r t o f Ap p eal s i n t en d ed s u ch award

, t h at th e

[ap p el l at e ] o p i ni o n wo u l d h av e in cl u d ed a d i rect i o n fo r s u ch award o r

t o s u b m i t t h e i s s u e o f d a m a g e s t o a ju ry

. T h i s Co u rt i s h es i t an t to ad d

l an g uag e o r i n t en t t o t h e wri t t en o p i n i o n of t h e Geo rg ia Co u rt o f

Ap p eal s

.

Th erefo re, p u rs u an t t o th e Co u rt o f Ap p eal ’ s o p i ni o n an d

Rem i t t i t u r, i t is o rd ered t h at Carl i s l e’ s m o t i o n fo r [J NOV] i s h ereb y

Gran t ed an d J ud g m en t i n fav o r o f Carl i s l e i s h ereb y en t ered

.

Th e t ri al co u rt d i d n o t award an y d am ag e s to Carl i s le, an d h e n ow ap p eal s

,

arg u i n g t h at t h e co u rt erred aft er h i s s u cces s fu l ap p eal by n o t award i n g h i m d am ag es

(t o t h e ex t en t t h at t h ey are n ot i n d i s p u t e) o r h o ld i n g a t ri a l a s t o d am ag es o n h i s

cl ai m s ag ai n s t Bro e. W e d i s ag ree.

Carl is l e p o i n t s t o h i s m o t i o n fo r JNOV an d as s ert s t h at he i s en t i t l ed to

d am ag es b ec au se h e s ou g h t an o rd er “ s et t i n g as i de t h e ju ry ’ s v erd i ct an d ju d g m en t

t h ereo n

, g ran t [i n g ] j u d gm en t t o t he Defen d an t or, in t h e al t ern at i v e, g ran t [i n g

9Carl i s l e] a n ew t ri al .” Bu t h is s u p p l em en t al m o t io n an d b ri ef o n t h i s i s s u e, fi l ed aft er

t h e t ran s cri p t was p rep ared

, ap p ro p ri at el y cl ari fi es t h e i s s ue:

D u ri n g th e t ri al o f th i s cas e

. . . [Carl i s le] m ad e M o t i o n s fo r Di rect e d

Verd i ct co n cern i n g Pl ai n t i ff’ s cl ai m s i n ref e ren ce t o t h e re-en t eri n g o f

t h e Prem is es an d at t o rn ey ’ s fees

. Th e [t ri al c o u rt ] d en i ed [Carl i s l e’ s ]

m o t i o n s [,]

. . . an d [Carl i s l e] i s n o w a d d r e s s i n g t h es e m at t ers wi t h th e

[t ri al co urt ] p u rs u an t t o h i s M o t i o n fo r [J NOV]

.

Th e m o t i o n s eek s a n ew t ri al an d “ i n t h e al t ern at i ve to d i rect i n g a v erd i ct i n fav o r o f”

Carl i s l e.

Th u s

, as ex p l ai n ed in Carl i s l e’ s b ri efi n g i n t h e t ri al co urt

, t h e rel i ef h e s o u g ht

(an d was en t i t l ed to ) w as a di rect ed v erd i ct i n fav o r o f Carl i s l e on Br o e’s “cl a i ms in

r ef er en ce t o t h e re-en t er i n g o f t h e Pr emi s es ,” i

. e., t h e w ro n g fu l ev i ct i o n an d t res p as s

t h at s u p p o rt ed t h e d am ag es award i n fav o r o f Bro e. On ap p eal i n C a rl i s l e II

, t h i s

Co u rt h el d t h at t h e ev i d en ce d em an d ed s u ch a v erd i ct in l ig h t o f Carl i s l e’ s au t h o ri t y

t o en t er t he p rem i ses aft er Bro e b reach ed t h e l eas e b y p ay i n g o n l y $ 2 2 5 of $ 2 7 5 in

l at e fees he o wed

. Bas ed o n t h i s b reach an d au t h o ri t y t o en t er, t h ere was n o t res p as s

o r wro n g fu l ev ict i o n

, as t h e Ca r l i s le II o p i ni o n co n cl u d ed : “ [T] he o nl y co n cl us i o n fo r

t h e ju ry t o reach was t hat Bro e’ s b reach au t h o ri zed Carl i s le t o reen t er. Carl i s l e was

t h erefo re en t i t l ed t o J

NOV, an d t h e t ri al co u rt erred i n d en y i n g t he m o t i o n .”

10On rem an d, th e t ri al co u rt co rrect l y g r an ted Carl i s l e’ s m o t i o n fo r J NOV an d

en t ered a j u d g m en t i n h i s fav o r. Th is el i m i n at ed t he d am ag es an d at t o rn ey fees

award ed t o Bro e b as ed o n h i s cl ai m s

, an d i t w as co n s is t en t wi t h th e m o t i o n Carl is l e

m ad e i n t h e t ri al co u rt as wel l as t h i s Co u rt ’ s ru l i n g i n fav or o f Carl i sl e i n Ca r l i s l e II

.

A n y a l t e r n at i v e rel ief Carl i s l e s o u g h t d o es n o t req u i re rev ers al

— as reco u n t ed i n

Ca r l is l e II

, t h ere was co n fl i ct i n g ev i d en ce as t o Carl is l e’ s m o t i ves an d co n d u ct in

en t eri n g t h e p ro pert y

. 1 0 Un der t h es e ci rcu m st an ces , we affi rm t h e t ri al co u rt ’ s p o s t

ap p eal o rd er en t eri n g a ju d gm en t i n fav o r o f Carl is l e o n Bro e’ s cl ai m s an d at t o rn ey

fee award

.

Ca s e No . A2 1 A1 8 1 4

Th i s ap p eal ari s es f

r o m t h e g ran t of s um m ary ju d g m en t as t o Bro e’ s l i ab i l i t y

i n Th e Craft y Yan k ’ s s u i t ag ai n s t h i m i n t h e Fi d u ci ary Du t y Laws u it

. As n ot ed ab o ve,

1 0 See g en eral l y Es t a te o

f Cr o o k v. Fo st er

, 3 3 3 Ga. Ap p

. 3 6

, 3 8 (1 ) (7 7 5 SE2 d

2 8 6 ) (2 0 1 5 ) (“ W h en co ns i deri n g wh et h er th e tri al co u rt erred b y g ran t i n g a m o t i o n

fo r J NOV, we rev i ew an d res o l v e t h e ev i den ce an d an y d o u b t s or am bi g u i t i es i n fav o r

o f t h e v erd ict ; a J NOV i s no t p ro p er u n l es s t h ere is n o co n fl i ct i n t h e ev i den ce as to

an y m at eri al i s s u e an d t h e ev i d en ce i n t ro d u ced

, w i t h a l l r e a s o n ab le d ed u ct i on s

t h erefro m d em an d s a cert ai n v erd i ct

. Th us

, a J NOV m ay b e gran t ed o n l y wh en

, wi t h o u t wei g h i n g t h e cred i b i l i t y o f t h e e v i d e nce, t h ere can b e bu t o n e reas o n ab l e

co n cl u s i o n as to t h e p ro p er ju d g m en t. If t h e ev i den ce i s co nfl i ct in g

, o r i f in su ffi ci en t

ev i d en ce ex i st s t o m ak e a ‘ o n e-way ’ v erd i ct p ro p er, a J N OV s h o u l d n o t b e g ran t ed .”)

(p u n ct u at i o n an d em

p h as i s o m i t t ed ), q u o t in g Pl a ne v. Un i f or ce MIS S

vcs

. of Ga

. , 2 3 2

Ga. Ap p . 7 5 7 , 7 5 8 (5 0 3 SE2 d 6 2 1 ) (1 9 9 8 ).

11Th e Craft y Yan k o wn ed an d o p erat ed a b rew p u b cal l ed Th e Eag l e an d T h e Li o n

, an d

Bro e was a m an ag i ng m em ber o f T h e Craft y Y an k p u rs u an t t o an o p e r at i n g

ag reem en t

. Bro e al s o wo rk ed as an em p l o y ee, m an ag i n g th e p u b pu rs u an t t o an

e m p l o y m en t ag reem en t

. W h en t h e b u si n es s rel at i on s h i p s o u red

, Th e Craft y Yan k

s u ed Bro e i n 2 01 3

, a s sert i n g cl ai m s fo r b reach o f fi d u ci ary d ut y as th e i n i t i al

m an ag i n g m em

b er o f T he Craft y Yan k

, co n v ers i on

, an d b reach o f co n t ract

. Bro e

an s wered

, an d ev en t u al l y T h e Craft y Yan k fi l ed t h e fi rs t o f two m o t i o n s fo r s u m m ary

ju d g m e n t; t h e t ri al co u rt d en ied t h e fi rs t o n e b ecau s e t h e reco rd rev eal ed fact u al

d i s p u t es (i n cl u d i n g an affi d av i t fi l ed b y Bro e d en y i ng m al feas an ce). 1 1 A ft er t h e 2 0 1 7

1 1 In res po n s e t o Th e Craft y Yan k ’ s o ri g i n al m o t i o n fo r s u m m a r y ju d g m en t

, Bro e’ s affi d av i t av erred

, i n p art :

[T] h e bu s i n es s was s lo w t o g ro w. [Th e C raft y Yan k ] di d n o t h av e

en o u g h i n co m e t o s at i s fy al l o f i t s o b l i g at i o n s

, an d cas h d i d n o t al way s

arri v e as ex p ect ed

. I d i d m y b es t to m an ag e [Th e Craft y Yan k ’ s ]

f i nan ces b y p ri o ri t i zi n g p ay m en t s

. I m ad e s u re [Th e Craft y Y a n k ’s ]

e m p lo y ees an d i t s cri t i cal s u pp l iers were p ai d s o t h at Eag l e a n d L i o n

co u l d co n ti n u e to o p e r a t e

. I t o o k o n l y a s m al l p o rt i on of m y s al ary as

g en eral m an ag er.

W i th res p ect t o an al l eg ed i m p ro p er al co h o l p u rch as e, Bro e d en i ed m ak i n g t h e

p u rch as e, an d ex p l ai n ed t h at h e so l d s o m e a l r e a d y b rewed b eer t o a d is tri b u t o r to

rai s e m o n ey

t o p ay t h e b u s i n es s ’ s t ax o b li g at i o n s.

12t ri al i n t h e Lan d l o rd Ten an t Laws u i t

, T he Craft y Yan k ag ai n m o v ed fo r s u m m ary

ju d g m en t i n t h i s cas e as t o Bro e’ s l i ab i l i t y b as ed o n h i s t es t i m o n y

at t hat t ri al

.

Th e Craft y Yan k s u p po rt ed i t s m o t i o n wi t h an affi d av i t b y Carl i s l e, wh o

av erred t he fo ll o wi ng , i n rel ev an t p art :

[W ] h i le m an ag i n g t h e d ay t o d ay op erat i o ns o f [Th e Craft y Yan k ] an d

[Th e Eag l e an d th e Li o n ,]

. . . Bro e b l at an t l y d i s reg ard ed h i s o b li g at i o n s

p u rs uan t t o t h e Op erat i n g Ag reem en t an d Em p l o y m en t Ag reem en t

,

g ro s sl y m i s m an ag ed t h e fi n an ces o f t h e Co m p an y an d co nceal ed h i s

act i o n s fro m t h e m em

b e r s o f t h e Co m

pan y

, co n v ert ed pro p ert y o f th e

Co m p an y fo r h i s o wn u s e an d t h e u s e o f h is fam i l y

, an d co n t i nu ed t o t ry

t o wreck t h e Co m

p an y aft er h e w as fi red p u rs u an t t o t he Em p l o y m en t

Ag reem en t

.

. . .

M ark Bro e rep ort ed d i fferen t i n fo rm at i o n co ncern i n g t h e s al es o f

t h e Co m p an y to t h e st at e t h a n w h a t h e rep o rt ed t o t h e m em b ers o f th e

Co m p an y

. . . .

M ark Bro e p ro v i ded a fi nan ci al rep o rt t o t h e m em b ers o f th e

Co m p an y t hat d i d n o t m en ti o n t h e Co m pan y ’ s ch eck i n g acco u n t w h i l e

h o l d i n g i n t ern al acco u n t i n g reco rd s i n d icat i n g t h at s ai d acco u n t h ad a

b al an ce o f -$ 6 ,2 3 6.0 0

. . . .

13M ark Bro e p ro v i ded a fi nan ci al rep o rt t o t h e m em b ers o f th e

Co m p an y o n Sep t em

b er 2 4

, 2 0 12 t hat i nd i cat ed t h at th e Co m p an y ’ s net

i n co m e fo r t h e y ear was -$ 5 8 ,3 3 8

. 8 2 t hro u g h Au g u s t wh i l e m ai nt ai n i n g

i n t ern al reco rd s t h at s h o wed t h e act u al n et i n co m e fo r t h e y ear was

-$ 2 4 8 ,8 5 4 .7 3

.

. . .

M ark Bro e freq u en t l y d ep o s i t e d larg e s u m s o f m o n ey fro m h i s

fam i l y t hat h e cal l ed “ l o an s ” wi t h o u t p ro v i d i n g n o t i ce o r o bt ai n i n g

ap p ro v al fro m

t h e o t h er m em

b ers o f t he Co m

p an y

. . . .

M ark Bro e i l leg al l y b o u g h t li q u o r an d b eer fro m a ret ai l er fo r th e

Co m p an y t o [res el l ] at t h e Bu si n es s i n No vem b er an d D ecem

b er 2 0 1 2

.

M o n t h s aft er b ei n g rem o ved [,]

. . . M ark Bro e o b tai n ed b eer t hat

was o wn ed b y t h e Co m p an y an d s o l d t h e b eer t o a d i s t ri b u t o r fo r

$ 2 ,0 3 8.3 5

. In s t ead o f ret u rn i n g th e fu n d s t o t he Co m p a n y, M r. Bro e

frau d u l en tl y an d wi t h o u t t h e co n s en t o f t he Co m p an y

, creat ed a fak e

b an k acco u n t i n t h e n am e o f t h e Co m p an y t o d ep o s i t t h e ch eck wri t ten

t o t h e Co m

p an y an d t h en wi t h d rew t h e cas h fro m th e acco u nt f o r h i s

o wn u s e.

M ark Broe c on ti n u es t o h o l d th e fi n an ci al reco rd s o f t h e Co m p an y

i n h i s p o s s es s i o n on t h e co m p u t er i n h i s bed ro o m an d [h as ] refu s ed t o

p ro v i d e t h e reco rd s t o t h e Co m p an y

.

14Th e affi d av i t av erred t hat th es e fact s were u n di s p ut ed

, rel y i n g on ci t at i o n s t o Bro e’ s

earl ier t es t i m on y in t h e Lan d l o rd Ten an t Laws ui t

.

Bro e res po n d ed b y o p p o si n g t h e m o t i o n an d fi l i n g an affi d av i t of hi s at t o rn ey

au t h en t i cat i n g t ran s cri p t ex cerp t s t h at m o re fu l l y rel at ed t h e co nt ex t fo r Bro e’ s t ri al

t es t i m o ny

.

Fo l l owi n g a heari n g

, t h e t ri al co u rt en t ered an ord er rel yi n g o n t h e affi d av i t s

an d Bro e’ s t ri al tes t im o n y fro m t h e Lan dl o rd Ten an t Laws u i t to g ran t s u m m ary

ju d g m en t t o Th e Craft y Yan k as t o Bro e’ s l i ab i l i t y fo r b reach o f fi d u ci ary d u t i es

,

b reach of co n t ract

, an d co n v ers i o n

. Th e t ri al co u rt ’ s o rd er s t at ed t h at t h e d i sp o s i t i v e

fact s were n o t i n d i s p u t e, an d i t l i s t ed i ts fi n d i ng s o f fact as t o Bro e’ s c o n d u c t t h at

s u p p ort ed Th e Craft y

Yan k ’ s cl ai m s

.

Bro e n o w ap peal s

, co n t en d i n g th at t h e t ri al co u rt erred b y g ran ti n g s u m

m ary

ju d g m en t as t o h i s l i ab il i t y t o Th e Craft y Yan k ’ s cl ai m s becau s e t h e reco rd co n t ai n s

g en ui n e is s u es o f m at eri al fact t h at s h o u l d n o t h av e b een s u m m ari l y res o l v ed ag ai n s t

h i m b y t h e t ri al co u rt . W e ag ree.

As a t hres h ol d m at t er, we n o te t h e fam i li ar s u m m ary ju dg m en t s tan d ard : “ To

p rev ai l at s u m

m ary ju d g m en t u n d e r OCGA § 9-1 1 -5 6, t he m o v i n g part y m u s t

d em o n s t rat e t hat t h ere i s n o g en u i n e i s s u e of m at eri al fact an d t h at t h e u n d i s p u t ed

15fact s, v iewed i n t h e l i g ht m o st fav orab l e t o t h e n o nm o v in g p art y , warran t ju d g m en t

as a m at t er o f l aw.” 1 2 If “ t h e part y m o v i n g fo r s u m m ary ju d g m en t i s t h e pl ai n t i ff, h e

m u st m ak e a p ri m a faci e s h o wi n g t hat n o m at eri al is s u es o f fact ex i s t an d t h at h e i s

e n t i t l e d t o ju dg m en t as a m at t er o f l aw b efo re th e b u rd en s h i ft s t o t h e d efen d an t t o

es t ab l i s h a p o s s i b l e d efen s e.” 1 3 Fi n al l y

,

[t ] ri al co u rt ru l i n g s o n s u m m ary ju d g m en t en

jo y no p res u m

p t io n o f

co rrect n es s o n ap p eal

, an d an ap p el l at e co urt m us t s at i s fy i t s el f de n o v o

t h at t h e req u i rem en t s o f OCGA § 9 -1 1 -5 6 (c) h av e been m et

. In m ak i n g

t h at d et erm i n at i o n

, we m u s t v i ew t h e ev i d en c e, an d al l reas o n ab l e

i n feren ces d rawn t herefr o m

, i n t h e li g h t m o s t fav o rab l e t o th e

n o n m o v an t

. ” 1 4

Here, t he t ri al co u rt n o t ed a s eri es o f fact u al fi n d in g s i t h el d were un d i s p u t ed

,

b as ed o n Bro e’ s t ri a l t e s t i m o n y i n t h e Lan d l o rd Ten an t Laws u i t

. Fo r ex am p l e, t h e

o rd er s t at es , i n rel ev an t p art :

1 2 (Ci t at io n s om i t t ed

. ) La u ’s Co r p

. v. H a s k i n s

, 2 61 Ga. 4 9 1 (4 0 5 SE2 d 4 7 4 )

(1 9 9 1).

1 3 Ts el i o s v. S

a rs o u r , 3 4 1 Ga. Ap p . 4 7 1 , 4 7 3 (8 0 0 SE2 d 6 36 ) (2 0 1 7 ).

1 4 (Ci t at i o n s an d p u n c t u a t i o n o m it ted .) Na sh v. Reed

, 3 4 9 Ga. A p p

. 3 8 1,

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

16Th e t ri al co urt fi n d s t h at Bro e m ai n t ai n ed sep arat e i n t ern al reco rd s t hat

were d i fferen t fro m t h o s e reco rd s sh ared wi t h m em b ers o f t h e Co m

p an y

.

. .

Th e Co u rt fi n d s t h at [Bro e] p ro v i d ed fi n an ci al rep o rt s t o t h e Co m p an y

m em b ers o n Sep t em

b er 2 4

, 2 0 1 2 t h at i n d i cat ed th at t h e Co m p an y ’ s net

i n co m e fo r t h e y ear was n eg at i v e (-) $ 58 ,3 3 8

. 8 2 t h ro u g h Au gu s t w h i l e

m ai n t ai n i n g i n t ern al reco rd s th at s h o wed t h e n et i n co m e o f t h e Co m p an y

w a s n eg at i v e (-) $ 2 3 8 ,8 5 4.7 3

. [Bro e] co n ceal ed i nte r na l f ina nc ia l r e por

ts

fro m m em

b ers t h at i nd icat ed l o s s es o f ap p ro x i m at el y $ 8 0 ,0 0 0 b et w een

M arch an d J u l y o f 2 0 12

. [Bro e] u s ed

. . . co m p an y fu nd s t o p ay T om

Bro e’ s res i den t i al cab l e bi l l fo r Ap ri l 2 0 1 2 an d d i d n o t d i s cl o s e th e fact

o n fi n an ci al rep o rt s to t h e m em b ers

. . . . Th e Co u rt fi n d s th at [Bro e]

fai l ed t o acco u n t fo r a w i re t ran s fer t o an u n d i s cl o s ed [reci p i en t ] i n th e

am o u nt o f $ 5 ,5 0 0. Th e Co u rt fi nd s t h at [Bro e] d is b u rs ed co m p an y fu n d s

t o fam i l y m em

bers wi t h o u t t h e req u i si t e ap p ro v al

. . . an d fai l ed t o

p ro p erl y rep o rt t h e d i s b u rs em en ts t o al l m em b ers o f t h e Co m

p an y

. . . .

T h e Co urt fi n d s t h at [Bro e] o b t ai n ed l o an s fo r t h e Co m p an y

wi t h ou t s eek i n g t h e req u i s i t e ap p ro v al o f t h e m em b ers

. . . .

[Bro e] s o l d al co h ol t h at was p u rch as ed at a ret ai l s to re an d res o l d

o n t h e p rem i s es i n a m an n er i nco n s is t en t wi th Geo rg ia l aw i n vi o l at i o n

o f t h e Op erat i ng Ag reem en t

.

17[Bro e] i n h i b i ted [Th e Craft y Yan k ’ s ] acces s t o fu n d s i n th e cred i t

card s y s t em fo l l owi n g t he l an d lo rd ’ s l awfu l re-en try of t h e p rem i ses

. .

. .

[Aft er h is t erm i n at i o n

, Bro e i m p ro p erl y ] o b t ai n ed a ch eck to [Th e

Craft y Yan k ] . . . an d h as n o t acco u n t ed fo r t he fu nd s wh ereab o u t s

.

[Bro e] d i d no t ret u rn co m p an y pro p ert y an d

. . . co n t in u es t o h o l d

fi nan ci al reco rd s

, Q u i ck Bo o k s p ro g ram s an d p ro p ert y o wn ed by [Th e

Craft y Yan k] an d refu s es t o t u rn s ai d reco rd s ov er t o [Th e Craft y Yan k ]

.

Bas ed o n th es e fi n d i n g s

, t h e t ri al co u rt co ncl u d ed t h at th ere is n o d is pu t e t h at

Bro e b reach ed h is fi d u ci ary d u t y t o Th e Craft y Yan k an d th at h e “ act ed i n t en t i o n al l y

,

i n bad fai t h

, wi t h o u t d el i berat i o n

, an d wi t h at l eas t g ro s s n eg l i g en ce.” Li k ewi s e, wi th

res p ect t o b reach of co n t ract

, t h e t ri al co u rt ru l ed t h at t h ere was n o di s p u t e t h at Bro e

“ d i sreg ard ed t h e co n t rac t u al o b l i g at i o n s h e o w ed ” u n der t h e O p erat i n g an d

Em p l o y m en t Ag reem en t s b ecau s e Bro e “ offered n o co m pel l i n g t es t i m o n y t o refu t e

t h e s t at em en t s ” h e m ad e at t ri al

.

Th e t ri al co u rt ’ s fi nd i n g s o f u n d i s p u t ed fact are b as ed o n t h e Carl i s l e affi d av i t

t h at i n t u rn refers to ex cerp t s o f Bro e’ s t ri al t es ti m o n y d u ri n g cro s s -ex am i n at i o n

. Bu t

as p oi n t ed o u t by Bro e, t h es e ex cerp t s

, wh en read i n t h e fu l l n es s o f t h ei r co n t ex t an d

18i n th e l i gh t m o s t fav o rab le t o Bro e, are n o t co n cl us i v e as to hi s l i ab i l it y

. Fo r ex am p l e,

wi t h res p ect t o creat i n g sep arat e fi n an ci al reco rd s fo r t h e b us i n es s an d t h e m em b ers

,

Bro e t es t i fi ed o n cro ss -ex am i n at i o n t h at a cert ai n a l t e r nat i v e s pread s h eet was

i n accu rat e, s t at i ng

, “ I’ v e al read y t es t i fi ed u nd er oat h t h at t h i s i s i n co rrect

. . . . [L] et

m e ex p lai n

. . . . I d i d n o t m ak e t h em

, an d wh o ev er m ad e th em m ad e t h em wro n g l y .”

He al s o d i s p u t ed m ak i n g an o t h er d i s p u t ed fi nan ci al reco rd of a s i m i l ar k in d

. W i th

res p ect to t h e Sep t em

b er 2 4

, 2 0 1 2 d i s cl o s u re t o t h e co m p an y m em

bers wi t h an

al l eg ed d i s crep an cy i n i nco m e, Bro e ex p l ai n ed t he d i s crep an cy by p o i n t i n g o u t t h at

t h e acco u n t i ng p eri o d i n cl u d ed a p o rt i o n o f t i m e wh en t h e p u b was n o t o p erat i n g:

“ [T] h at ’ s wh y

t h ere’ s a b i g n eg at i v e t here.” He h ad p ro v i d ed t h e fi nan ci al rep o rt t o

t h e m em b ers fo r t h e p u rp o s e of cal l i n g a m eet i ng “ t o rev i ew t h e fi n an ci al s an d as s es s

wh ere we s t an d an d d i s cu s s t h e fu t u re.” If b el iev ed

, t h is t es ti m o n y wo u l d s u p p o rt an

i n feren ce t h at Bro e was n o t i nt en t i o nal l y t ry i ng t o m is lead t h e m em b ers

.

Bro e’ s tes t im o n y fu rt h er i n cl u d ed co n t ex t ab ou t al l eg ed co n cea l m e n t o f

fi nan c i a l rep o rt s t h at

, w h en read i n fu l l

, s h o w t hat cert ai n d i s crep an ci es ab o u t l o ss

s t at em en t s were “ m i s t ak en .” Bu t t h e cro s s -ex am i n at i on d o es n o t rev eal m o re ab o ut

Bro e’ s m o t i v e o r t h e i m

p act o f t h e al l eg ed m i s t ak e. Fu rt h er, Bro e ex p l ai n ed t h at a

cert ai n al l eg ed wi t h d rawal o f $ 2 6

, 3 4 0 i n Au gu s t 2 0 1 2 was m o ney t h at m i g h t h av e

19b een u s ed to rep ay a lo an m ad e b y h is m o t h er to t h e b u s i n es s

, b u t it w as so l o n g ag o

h e co u l d n o t recal l wh ere t h e m o n ey wen t

. Th i s t es t i m o n y su p po rt s an i n feren ce t h at

Bro e co ul d h av e wi t h d rawn t h e m o n ey i m p ro p erl y , b u t i t al o ne i s n o t co ncl u s i v e as

t o Bro e’ s m i s u se o f t h e m o n ey

, an d wh en v i ewed i n th e l i g h t m o s t fav o rab le t o Bro e,

i t su p p o rt s an i n feren ce t h at t h e wi t h d rawal p ai d a co m p an y ex p en s e, ev en i f i t was

u n o rt h o do x

. Bro e l i k ewi se d i s p u t ed u si n g co m p an y fu n d s f

o r pers o n al ex p en s es

,

i n cl u d i n g fo r To m Bro e’ s cab l e b i l l

, h e d i s p u t ed l o ck i n g Th e Craft y Yan k ou t o f t h e

co m p an y ’s c r e d i t c ard s y s tem

, an d h e d i s p u t ed an y i m p ro p ri et y i n a wi re t ran s fer

q u es ti o n ed b y

Th e Craft y Yan k ’ s co u n s el

.

In s u m

, as fu l l y o u t l i n ed i n Bro e’ s ap p el l at e b ri ef, t h e reco rd rel i ed u p o n by

Th e Craft y Yan k an d t he t ri al co u rt co n tai n s fact ual d i s p u t es wi t h res p ect t o Bro e’ s

co n du ct an d m o ti v es t h at p recl u d e s u m m ary ju d g m en t at t h i s t i m e a s t o T h e Craft y

Yan k’ s cl ai m s

. T o d em o n s t rat e a b reach of fi d u ci ary d u t y

, Th e C r a f t y Y an k m

u s t

s h o w, i n p art , t h at Bro e fai led t o act “ i n a m an n er he

. . . b el i ev e[d ] i n g o o d fai t h t o

b e in t he b es t i n teres t s o f [Th e Craft y Yan k ] an d w i t h t h e c are an o rd i nary p ru d en t

20p ers o n i n a l i k e p os i ti o n wo u l d ex erci s e u n d er s i m i l ar ci rcu m s tan ces .” 1 5 Al s o

, as a

g en eral ru l e, Geo rg i a l aw

g en eral l y p recl u des cl ai m s ag ai n s t o ffi cers an d d i rect o rs fo r t h ei r

b u s i n es s d eci s i o n s t h at s o u n d i n o rd i n ary n eg l ig en ce, ex cep t t o th e

ex t en t t h at t h o s e d eci s i o n s are s h o w n t o h a v e b e e n m ad e wi t h o u t

d el i b erat i o n

, wi t h o u t t h e req u i s i t e d i l ig en ce t o as cert ai n an d as s es s th e

f a c t s an d ci rcu m s tan ces u p on wh i ch t h e d eci s i o n s are b as ed

, o r i n b a d

fai t h

. 1 6

Th erefo re, t h e m eri t s of Th e Craft y Yan k’ s cl a i m s t u rn o n Bro e’ s l ev el o f

d el i b erat i o n

, d i l i g en ce, a n d b a d f a i t h

. Th e reco rd m ay

rai se q ues t i o n s ab o ut Bro e’ s

co n du ct

, b u t i t d o e s n o t fu l l y d i s p o s e o f t h e t ri ab l e is s u es as t o Bro e’ s co n d u ct

,

i n cl u d i n g h i s d el i b erat i o n

, d i l i g en ce, an d b ad fai t h

. As as s ert ed b y Bro e, t h e b u s i n es s

d i d n o t p erfo rm

as ex p ect ed , an d h i s jo b was m ad e d iffi cu l t b y t h e l ack o f ex p ect ed

i n co m e. Acco rd i n g t o Bro e, h e m ad e ch o i ces ab o u t wh i ch v en d o rs t o p ay

, an d at l eas t

i n p art

, h i s co rres p o n d en ce wi t h t h e m em bers s u g g es t s so m e at t em p t to d i s cl o s e t h e

fi nan ci al d i ffi cu l t y

an d d is cu s s n ex t s tep s

.

1 5 OCGA § 14 -1 1 -3 0 5 (1 ) (o u t li n i n g t h e d u ti es o f a m an ag er o f a l i m i t e d

l i ab i l i t y co m

p an y ).

1 6 FDIC v. Lo u d

er mi l k , 2 9 5 Ga. 5 7 9, 5 8 5 (1 ) (7 6 1 SE2 d 3 3 2) (2 01 4 ).

21In a s i m i l ar w a y, B r o e ’s t es t i m o n y i s al so n o t co n cl u s i v e as t o w h at co n d u ct

am ou n t ed to a b reach o f h i s em pl o y m en t co n t ract 1 7 an d hi s al l eg ed co n v ers i on

. 1 8 Th e

reco rd co n t ai n s s o m e ev id en ce th at i m pl i cat es Bro e, b u t i t al so co n t ai n s eq u i v o cat i o n,

ex p lan at i o n

, a n d d en i al u n d er o at h by Bro e. “ At bo t t om

, t h e ‘ card i n al ru l e’ o n

s u m m ary ju d g m en t i s t h at ‘ t h e co u rt can n ei t h er re s o l v e t h e fact s no r reco n ci l e t h e

i s su es , b u t o n l y

l oo k t o as cert ai n i f t h ere i s an i s su e.’ ” 1 9

Ev en i f s o m e as p ect s of Bro e’ s co n d u ct ap p e a r in ex p l i cab l e or un d i s p u t ed

,

t h e r e a r e o t h er as p ect s th at are m at eri al l y d i s p u t ed

. Su ch a reco rd can n o t s u p p o rt

s u m m ary ju d g m en t ev en as to l i ab i l i t y b ecau s e an y su b seq u en t res o l u t i o n o f d am ag es

1 7 See gen eral l y Gl o b a l P a ymen t s Di rect v. Fr o n t l i n e P r o c es s i n g Co r p

. , 3 6 0

Ga. Ap p

. 7 5 3

, 7 5 7 -7 5 8 (1 ) ( 8 5 9 SE2 d 9 09 ) (2 0 21 ) (“ Th e el em en t s fo r a breach o f

co n tract cl ai m i n G eo rg ia are t h e (1 ) b reach an d t h e (2 ) res u l t an t d am ag es (3 ) t o t h e

p art y wh o h as t h e ri g ht t o co m p l ai n ab o ut t h e co n tract b ei n g b ro k en .”).

1 8 See g en eral l y Gr

yd er v. Co n l ey

, 3 5 2 G a. Ap p

. 8 91

, 8 9 4 -8 95 (1 ) (8 3 6 SE2 d

1 2 0 ) (2 0 1 9 ) (“ Un d er Geo rg i a l a w

, c onvers i o n co n s i s t s o f an u n au t h o ri zed as s u m p t i o n

an d ex erci s e o f t h e ri g h t o f o w n ers h i p ov er p ers on al p ro pert y b el o n g in g t o an o t h er,

i n h o st i l i t y t o h i s ri g ht s ; an act o f d o m i ni o n o v er t he p ers o n al p ro p ert y of an o t h er

i n co n s i s t en t wi t h hi s ri g ht s ; o r an u n au t h o ri zed ap p ro p ri at i o n. If t he defen d an t cam e

i n t o p o ss es s i on o f th e pro per t y l a w f u ll y

, t h e p l ai n t i ff m

u st sh o w t h at t h e d efen d an t

u n l awfu l l y refu sed t o ret u rn t h e p l ai n t i ff’ s p ro p ert y aft er t h e p l ai n t i ff d em an d ed i t s

ret u rn .”) (ci t at i o n an d p u n ct u at i o n o m i t t ed ).

1 9 Na s h , 3 49 Ga. Ap p . at 3 8 6 (3 ).

22wo u l d d ep en d in p art o n cau s at i o n t h at co ul d n o t b e pars ed o u t fro m t he d is p u t es in

t h e reco rd

. 2 0

[ I ]t is p reci s el y b ecau s e t h ere are b it s o f ev i d en ce i n t h e reco rd wh i c h

creat e g en u i ne i s s u es o f m a t e r i al fact t h at s u m m ary ju d g m en t i s n o t

ap p ro p ri at e i n t h i s cas e. It i s n o t t h e ro l e o f t h i s Co u rt

, b u t i s t he ro le o f

a ju ry t o s ort t h ro u g h t h e ev i d en ce, res o l v e co n fl i ct s

, an d m ak e fi n d i n g s

o f f a c t b as ed on t h e ev i den ce i t fi n d s cred i b l e. A ju ry in arri v i n g at a

co n cl u s i o n u p o n d i s p u ted i s s u es o f f a c t m a y b el i ev e a p art of th e

t es t i m o n y o f a wi t n es s o r wi t n es s es

, an d reject an o th er p art th ereo f, i t

b ei n g t h ei r du t y t o as cert ai n t h e t ru th o f t h e cas e fro m t h e o p i n i on t h ey

en t ert ai n o f al l t h e ev i d en ce s u b m i t t ed fo r t h ei r co n s i d erat i o n

. I n d eed

,

b ecau s e i t is a ju ry ’ s p rero g at i v e t o accep t o r reject

, i n wh o l e o r i n p art

,

t h e ev i den ce s u b m i t t ed

, gen eral l y t h e q u es t i o n o f [i n t en t an d g o o d fai t h ]

i s a q u es t i o n fo r t h e ju ry

. 2 1

Acco rd in g ly

, b as ed o n t h e reco rd b efo re u s

, t h e t ri a l c o u rt erred by g ran t in g p art i al

s u m m ary ju dg m en t t o Th e Craft y Yan k o n i t s b reach o f fi d u ci ary d u t y, b r e a ch o f

co n tract

, an d co n v ers i o n cl ai m s

.

2 0 Fo r ex am

p l e, t h e Craft y

Yan k ’ s co n v ers i o n cl ai m is p red i cat ed i n p art o n a

co m p u t er t h at rem ai n ed in Bro e’s p o ss es s i o n, b u t i t i s al s o b as ed o n “ fai l i n g to

acco u n t f o r ten s o f t ho u s an d s o f d o l l ars o f t h e Co m p an y ’ s fu n d s t h at were earn ed

u n d er hi s ex cl u s iv e m an ag em en t

. . . .” Th e reco rd i s m i x ed as t o t h o se ci rcu m s t an ces

an d t h erefo re t h e i s s u es o f l i ab il i t y an d cau s at i o n

.

2 1 (Ci t at i o n s an d p u n ct u at i o n o m it t ed .) Mo n t g omer y v. Ba rr o w , 2 8 6 Ga. 8 9 6,

8 9 8 -8 9 9 (1 ) (6 9 2 SE2 d 3 5 1 ) (2 0 1 0 ).

23Ju d

g men t a f f i r m ed i n Ca s e No

. A2 1 A1 80 9 a n d j u d gmen t r ever

s ed in Ca s e No

.

A2 1 A 1 8 1 4

. Rees e a nd

Br o wn , JJ., co n cu r

.

24