THI RD DI VI SI ON

DI LLA R D, C. J.

, GOBEI L and HODGES, JJ.

N O T IC E : M otions for r e c ons i de r a tion m us t be

ph y sic a l ly r e ce iv ed i n our c le r k ’s offic e w ithin te n

da y s of the da te of de c is ion to be de e m ed tim e ly file d.

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

June 25, 2019



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A1 9 A0 13 9 . CALLAW AY v . W ILLARD.

D I LLA R D , Ch i ef J u d g e.

W i l l i am Cal l away ap p eal s t h e t ri al co u rt ’ s g ran t o f p art i al su m m ary ju d g m en t

t o Lu ci n d a Du rh am W i l l ard (“ Lu ci n d a”) 1 i n her act i on ag ai n s t Cal laway

, i n d i v i d u al l y

1 Becau s e m an y o f th e rel ev an t p ar t i e s s hare t h e s am e las t n am e, i t i s h el p fu l

t o i den t i fy t h em at th e o u t s et

. T wo o f Lu ci n da’ s b ro t h ers , Hu gh “ L ee” Du rh am an d

W al l ace “ Bry an t ” Du rh am

, were p art i es b el o w an d h av e fi l ed a jo i n t ap pel l ee b ri ef,

i n wh i ch t h ey

ad o pt Lu ci nd a’ s b ri ef i n i t s e n t i r et y

, as s ert in g t h at “ [t ] h e l aw an d t h e

f a ct s ap p l i cab l e t o al l th ree [s i b l i n g s ] are ex act l y t he s am e.” Si m i l arl y

, b e l o w

, Lu ci n d a s u b m i t t ed a ll of th e rel ev an t s u m m ary -ju d gm en t fi l i n g s in o n l y h er n am e, an d

Lee an d Bry an t ad o p t ed t h em

. Fo r eas e of referen ce, w e refer t o al l t h ree ap p el l ees

co l l ect i v el y as “ Lu ci n d a

, ” e x c e p t wh en i t i s n eces s ary t o id en t i fy t h em s ep arat el y

. Lawren ce H. Du rh am (“ Lawren ce”), t h e o n l y o t h er Du rh am s i b li n g

, is rel ev an t to

s o m e of t h e i s s u es b e f

o r e us

, b u t h e di ed d u ri n g t h e co u rs e o f t h e un d erl y i n g

l i ti g at i o n

. L awren ce “ Co d y ” Du rh am was l at er s u bs t i t u ted as a p art y i n h i s cap aci t y

as t h e p e r s o n a l rep res en t at iv e o f h i s fat h er’ s es t at e, b ut Lawren ce’ s es tat e i s n o t a

p art y t o t h i s ap p eal . Las t l y , we refer t o M arjo ri e H. Du rh am

, t h e ap p el l ees ’ m o t h er,

as “ Du rh am ” t h ro u gh o u t t h e o pi n i o n

.an d as tru s tee o f t h e M arjo ri e H. Du rh am Irrev o cab l e Tru s t (t h e “ D u rh am Tru s t ” o r

“ Tru s t ”), s eek i n g a fi nal acco u nt i n g o f t he T ru s t

, wh i ch des i g nat ed h er an d h er t h ree

s i bl i n gs as rem ai n d er b en efi ci ari es

. 2

Cal l away as sert s t h at t h e t ri al co urt erred i n fi n d in g as a m at ter of l aw t h at (1 )

h e was req u i r e d t o di st ri b u t e th e t ru st co rp u s t o th e rem ai n d er b en efi ci ari es

i m m ed i at el y u p o n D u rh am ’ s d eat h ; (2 ) h e was req u i red t o d i sg o rg e t ru st ee fees

,

at t o rn ey fees

, an d c e r t a i n co s t s p ai d t o h i m b y t h e Tru s t aft er M ay 3, 2 0 1 2 ; (3 ) h e

v i o l at ed h i s d u ty o f l o y al t y b y m ak i n g a p re-l i t i g at i o n set t lem en t o ffer to Lu ci n d a; (4 )

h e lack ed th e au t ho ri t y t o d i s t ri b u t e t ru s t as s et s t o o r fo r t h e ben efi t o f Lawren ce,

wi t h o u t res o l vi n g Lu ci n d a’ s pen d i n g m o t i on fo r s et -o ff an d h i s m o t i o n fo r ap p ro v al

o f h is acco u n t i n g ; (5 ) h e lack ed t h e au t h o ri ty t o l eas e t ru s t p ro p ert y t o a rem ai n d er

b en efi ci ary

wi t h ou t fi rs t res o l v i n g t h e i s s u es rai s ed in t h e afo rem en t i on ed m o t i o n s ;

( 6 ) h e v i o l at ed hi s d u ty t o p ro v i d e rep o rt s an d acco u n t s o f t he Tru s t wi t h o u t fi rs t

ad d res s i n g t h e i s s u es pres en t ed b y h i s m o ti o n fo r rev i ew an d ap p ro val o f acco u n t i n g;

2 Th i s i s t h e s eco n d t i m e L u ci nd a an d Cal l away h av e b een b efo re t h i s Co u rt to

res o l ve i s s ues rel at ed t o t h e Du rh am Tru s t

. See Ca l l a wa y v. W i l l a r d

, 3 2 1 Ga. Ap p.

3 4 9 (7 39 SE2 d 5 3 3 ) (2 0 1 3 ) (“ Ca l l a wa y 1 ”). Sp eci fi cal l y

, i n Ca l l a wa y I

, we ad d res s ed

o n l y t h e i n t er r o rem cl au s e i n th e Du rh am Tru s t

, wh i ch i s n o t at i s s u e i n th i s ap p eal

. S ee i d

. at 3 4 9

, 3 5 6 (2 ) (b ), 3 5 8 -5 9 (3 ) (a)-(b ) (affi rm i n g t h e t ri al co u rt ’ s fi n d i n g t h at

Lu ci n d a, Bry an t

, an d Lee di d n o t vi o l at e t h e Tru s t ’ s i n t er ro r em cl au s e an d

rem an di n g fo r fu rt h er p ro ceed i n g s).

2an d (7 ) t h e Tru s t d i d n ot h o ld t it l e t o a p ro p ert y k n o w n as D o wd y Farm pri o r t o M ay

1 2

, 2 0 17

. Cal l a w a y al s o co n ten d s t h at th e t ri al co urt erred i n st ri k i n g affi d av i t s h e

s u b m i t t ed i n res p on s e t o L u c i n d a ’ s m o t i o n fo r p art i al s u m m ary ju d g m en t

. Fo r t h e

reas on s s et fo rt h i nf

r a , we affi rm

.

Vi ewi n g t h e e v i d en ce in t h e l i g h t m o s t fav o rab l e t o Cal laway ( i .e.

, t h e

n o n m o v an t ), 3 t h e reco rd s h o ws th at o n Ap ri l 1 3

, 2 0 0 0

, Du rh am creat ed an i rrev o cab l e

t ru s t

, des ig n at i n g h ers el f as t he s o l e l i fet i m e b en efi ci ary an d Cal l away as t h e t ru s t ee.

In d o i n g s o

, D u r h am

co n v ey ed t o Cal l away

an d h i s su cces s o rs p ro p ert y referred to

as Tru s t Track A an d Tru s t Track B, wh i ch were d es cri bed i n an at t ach m en t t o t h e

t ru s t i n s tru m en t an d w ere co l lect i v el y referred t o as “ t h e Tru s t Es t at e.” Du rh am al s o

i n d i cat ed t h at ad d i t i o n al p ro p ert i es m ay b e ad d ed t o t h e Tru s t Es t at e fro m t im e t o t i m e

i f accep t ab le t o t h e t ru s t ee. A n d rel ev an t t o t h e i n s t an t d i s p u t e, th e Tru s t p ro vi d ed t h at

u p o n Du rh am ’ s d eat h

, al l of t h e rem ai n i n g t ru s t p ro p ert y “ s h al l b e d i st ri b u t ed t o [h er]

fo u r c h i l d r e n

, w i t h p ro p ert i es d es ig n at ed as T ru s t T ract A b ei n g co nv ey ed to

Lawren c e H. Du rh am i n fee si m p l e, an d t h e p ro pert ies d es i gn at ed as Tru s t Tract B

b ei n g co n v ey ed t o Bry a n t D u rh am

, Lee Du rh am

, an d Lu ci nd a D. W il l ard i n fee

s i m p l e

. ” Tract A an d Tract B were co m p ri s ed o f real p ro p ert y

, an d fo r p u rp o s es o f

3 S ee, e.g

. , Kel l

y v. Ha r r i s , 3 2 9 Ga. Ap p . 7 5 2 , 7 5 2 (7 6 6 SE2 d 1 4 6 ) (2 0 1 4 ).

3m an ag em en t an d fi n al d i s t ri b ut i o n o f t h e Tru s t Es t at e, t h e Tru s t req u i red t h at t h e fai rm ark et v al u e o f t h e p ro p ert i es i n Tract A were eq ual to th e fai r-m ark et val u e o f t h e

p ro p ert i es i n Tract B. Ad d it i o n al l y

, t h e Tru s t pro v i ded t h at cert ai n i nd eb ted n es s m u s t

b e pai d b efo re t h e t wo tru s t t ract s were di s t ri b u t ed t o Du rh am ’ s ch i l d ren ( i .e.

, t h e

rem ai n d er b en efi ci ari es ). Du rh am p as sed away o n M ay 3

, 2 0 0 9, an d n o t wi t h s t an d i n g

t h es e t ru s t p ro v i s i on s

, Cal l away d i d no t d is tri b u t e t h e tru s t p ro p ert y t o t he rem ai n d er

b en efi ci ari es

. In deed

, th ere i s n o t h i n g i n t h e reco rd o r t he p art ies ’ b ri efs t o s u g g es t

t h a t

— a t l e a s t as o f t h e 2 0 1 8 o rd er t h at i s t h e s u b j ect of t h i s ap p eal

— h e ev er m ad e

s u ch di s t ri b u t i o n s. 4

On J an u ary 9

, 2 0 14

, Lu ci n d a fi l ed a v eri fi ed pet i t i o n fo r a fi nal acco u n t i n g

u n d er OCGA § 5 3 -1 2 -2 4 3 ag ai n s t Cal l away

, in d iv i du al l y

, an d i n h i s cap aci t y as

t ru s t ee o f t h e Du rh am T ru st

. L u ci n d a al s o s o u g h t at t o rn ey fees an d co s t s of l i t i g at i o n

ag ai n s t Cal l away p ers o n al ly

. Th ereaft er, t h e co urt i s s u ed an o rd er co m p el l i n g

C a l l away to s u bm it a t ru s t acco u n t i n g

. On M ay 1

, 2 0 1 5, Lu ci n d a am e n d e d h e r

p et i t i o n

, ad d i n g a cl ai m fo r d i s t ri b u t i o n of t h e Tru s t Es t at e an d det a i l i ng s p eci fi c

i n s t an ces i n wh i ch Cal l away al l eg ed l y en g ag ed i n i m p ro p er o r u n au t h o ri zed co n d u ct

4 Th e rem ai n i n g ev i d en ce n eces s ary to res o l v e t h i s ap p eal

, v i ewed i n t h e l i g ht

m o st fav o rab le t o Cal l away , i s s et fo rt h i n f r a i n t h e rel ev an t d i v i s i o n s.

4as t ru s t ee. Di s co v ery en s u ed

, a n d o n Ap ri l 2 5

, 20 1 7, Lu ci n d a 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

, s eek i n g a j u d gm en t es t ab l i s h i n g Cal l away ’ s l i ab i l i t y fo r

h i s v a r i o u s act i on s o r i nact io ns t h at s h e al l eg ed v io l at ed h i s fi du ci ary d ut i es an d

p ro v is i o n s o f th e t ru s t i n s t ru m e n t

. B u t t h ro ug h o ut her s u p p o rt i n g b ri ef, Lu ci n d a

co n ten d ed t hat t h e ex act am o un t o f “ cred i t s ” o wed b y C a l l away t o t h e Tru s t fo r

cert ai n cl ai m s s h o u ld b e “ s et b y t h e fi nd er o f fact .” Ul t i m at el y

, fo l l owi n g a h eari n g,

t h e t ri al co u r t g r a n ted Lu ci n d a’ s m o t i o n fo r p art i al s u m m ary ju d g m en t

, an d ag reed

wi t h h er t h at th e ex act am o u n t Cal l away o w ed t o t h e Tru s t m us t b e d et erm i ned b y t h e

fact fi n d er. Th i s ap p eal fo l l o ws

.

1

. Cal l away fi rs t arg u es t h at t h e t ri al co u rt erred i n s t ri k i n g t h ree affi d av i t s t h at

h e s u bm i t t ed at t h e s u m

m ary -ju d g m en t h eari n g . W e d i s ag ree.

At t h e h eari n g o n Lu ci n da’ s m o t i o n fo r p art i al s u m m ary ju d g m en t , Cal l away

s o u g h t t o s u b m it affi d av i t s ex ecu t ed b y h i m s el f, J i m m y San d s, an d Ran dy W at ers

.

Sp eci fi cal l y

, Cal l away ’ s affi d av i t d et ai led t he h i s t o ry o f t h e b an k st o ck o wn ed b y t h e

T r ust. 5 S a nds—

w h o i s a real es t at e b ro k er, au ct i o n eer, an d g en eral ap pr a ise r

— a ve r r e d

5 In i t i al l y

, Cal l away s u b m i t t ed t wo a f f ida vits tha t h e ex ecu t ed

. On e was en t i t l ed

“ Affi dav i t o f W il l iam E. Cal l away

, Jr.” an d th e ot h er was en t i t l ed “ A ffi d a v i t

Reg ard in g t h e Hi s to ry o f Ban k St o ck M arjo ri e H. Du rh am Irrev o cab l e T r u s t .”

Al t h o u g h b o t h affi d av it s w ere d i s cu ss ed at t h e h eari n g, Cal l away l at er wi t h d rew h i s

p ers o n al affi d av i t

, an d as a res u l t

, o n l y t h e b an k -s t o ck affi d av i t i s at i s su e o n ap p eal

.

5t h at

, o n a n u m b er o f o ccas i o n s

, h e as s i s t ed Cal laway wi t h vari ou s m at t ers reg ard i n g

t h e t ru st p ro p ert y

. Hi s affi d av i t p ri m ari l y rel at es t o ap p rai s al s o f v ari o u s t ru s t

p ro p ert i es an d hi s as ses s m en t t h at t h e fai r-m ark et v al u e o f s i x o f t h o se p ro p ert i es h ad

b een red u ced a s a r e s u l t o f co n s erv at i o n eas em en t s

. W at ers

— wh o is a reg i s t ered

fo res t er— av erred t hat he had b een ret ai n ed o n a nu m b er o f o ccas i o n s b y Du rh am an d

s o m e o f her fam i l y m e m

b ers to m an ag e an d p eri o d i cal ly arran g e fo r s al es o f t h ei r

t i m b er h o l d i ng s

. An d h i s affi d av i t rel at es p ri m ari l y t o h i s rel at i o n s h i p s wi t h Du rh am

an d Cal l away

, th e p ro ces s b y wh i ch t h ey d eci d ed t o s el l ti m b er, an d h o w t h os e s al es

were co nd u ct ed

.

Lu ci n d a m o v ed t o s t ri k e t h e affi d av it s

, arg u i n g t h at t h ey co n t ai n ed h ears ay an d

were n o t rel ev an t t o t h e i s s ue s b efo re t h e t ri al co u rt

. A d i s cu s s i o n t h en en s u ed

b et ween t h e co u rt an d p art i es

, d u ri n g wh i ch th e co u rt an d Lu ci n d a rep eat ed l y

ex p res s ed co n cern s t hat

, wh i l e t h e affi d av i t s m i g ht b e rel ev an t t o t h e i s s u es s u b m i t t ed

t o t h e fact f

i n d e r i n a l at er p ro ceed i n g

, t h ey were n o t rel ev an t to t h e li m i ted i s s u es

b efo re t h e co u rt i n L u ci n da’ s m o t i o n fo r p art i a l s u m m ary ju d g m en t

. An d ev en

Cal l away ag reed s ev eral t i m es t h at

, i f t h e i ss u es rai s ed b y t h e affi d av it s wo u l d n o t b e

d eci d ed at t h e s u m

m a r y -ju d g m en t p h as e, ex cl u di n g t h em at t h at t i m e was ap p ro p ri at e.

In d eed

, at o n e p oi n t

, Cal l away i n d i cat ed t h at i f i ss u es reg ard in g wh et h er h i s act i on s

6as tru st ee were ju s ti fi ed o r p ru d en t wo u l d n o t b e ad d res s ed at t he su m m ary -ju d g m en t

s t ag e, “ [h e] [ d i d ] [n o t ] t h i n k t h e affi d av it s pro p erl y rel at e[d ] ” t o t h e pro ceed i n g s

.

Ul t i m at el y

, fi n d i n g t h at t he affi d av i t s were n o t rel ev an t t o t h e i n s t an t p ro ceed i n g s

, t h e

t ri al co u rt ex cl u d ed t h em fro m co n s i d erat io n o n l y wi t h res p ect t o Lu ci n d a’ s m o t i o n

fo r p art i al s u m

m ary ju d g m en t

. An d wh i le Cal l away o b ject ed “ ju s t fo r t h e reco rd [,] ”

h e p ro v i d ed n o b as is fo r th i s o b ject i o n

, an d he d i d n o t wi t h d raw hi s earl i er st at em en t s

reg ard i n g wh et h er t h e affi d av i t s were rel ev an t i n t h e co n t ex t o f Lu ci n d a’ s m o t i o n fo r

p art i al s u m

m ary ju d gm en t

.

Th e det erm in at i o n o f wh et h er ev id en ce is rel ev an t

, o f co u rs e, “ l i es wi t h i n t h e

d i s cret i o n o f th e t ri al co u rt

, wh o s e d eci s i on wi l l n o t b e d i s t u rb ed o n ap p eal ab s en t an

ab u se of d i s cret i o n

. ” 6 An d al t h o u gh Geo rg i a l aw fav o rs t h e ad m i s s i o n o f rel ev an t

ev i d e n ce, “ ev i d en ce th at d o es n o t b ear d i rect l y o r i n d i rect l y o n th e q u es t i o n s b ei n g

t ri ed sh o u l d b e ex cl u d ed as i rrel ev an t .” 7

C a l l a w a y n o w arg ues

, gen eral l y

, t h at t h e t ri al co u rt erred in ex cl u d i n g t h e

a f f i d av i t s s u m

m ari zed ab o v e b ecau s e i t s o rd er g ran t i ng part ial s u m m ary ju d g m e n t

6 S mi t h v. S a ul s bu r y , 2 8 6 Ga. Ap p . 3 2 2 , 3 25 (2 ) (6 4 9 SE2 d 3 44 ) (2 0 0 7 ).

7 Id

. ( p u n ct u at i o n o m i t t ed ); s ee OCGA § 2 4 -4 -4 0 2 (“ E v id en ce wh i ch i s n ot

rel ev an t s h al l n o t b e ad m i s si b l e.”).

7“ res o l v e[d ] i s s ues as a m at ter o f l aw wi th res p ect t o wh i ch t h e affi d av i ts cl earl y an d

u n eq ui v o cal l y creat e g en u in e i s s u es o f fact t h a t m u s t be res o l v ed b y a j u ry .” He

fu rt her co n t en d s t h at t h e t r i a l c o u rt was req ui red t o det erm in e wh i ch p art s o f t h e

affi d av i ts were ad m i s s i bl e an d co u l d n o t s t ri k e t h em i n th ei r en t i ret y wi t h o u t fi rs t

m ak i n g fi n d i n g s o f fact an d co n cl u s i o n s o f law. Bu t Cal l away do es n o t id en t i fy an y

s p eci fi c p o rt io n s o f t h e t ri al co u rt ’ s ten -p ag e o rd er th at d eci d es an i s s u e t o wh i ch an y

o f t h e affi d av i t s were rel ev an t

. Li k ewi s e, Cal laway d o es n o t s peci fy wh i ch p o rt i on s

o f wh i ch affi d av it h e bel i ev es are rel ev an t t o t h e i s su es ul t i m at el y d eci d ed b y t h e

co u rt

. Fu rt herm o re, in ad di t i o n t o Cal laway ’ s co m p l et e l ack o f s peci fi ci t y

, we are

fu rt her i m

p ed ed i n rev i ewi ng th i s cl ai m o f erro r b y t h e v ol u m i n o u s reco rd i n t h i s

cas e, wh ich i n cl u d es 1 7 v ol u m es co m p ri s ed o f s ev eral t ran scri pt s as wel l as a 2 ,7 5 1

p ag e reco rd

. As w e h av e p rev i o u s l y ex p l ai n ed

, we wi l l n o t “ cu l l t h e reco rd o n b eh al f

o f a p art y

, p art i cu larl y in a cas e s u ch as t h i s wh ere t h e reco rd is vo l u m i n o us .” 8 Th u s

,

b ecau s e Cal l away h as n o t id en t i fi ed wh ich po rt i o n s o f th e affi d av it s h e b el i ev es were

8 Ro l l es t o n v. Ch er r

y , 2 2 6 Ga. Ap p. 7 5 0

, 7 5 5 (3 ) (4 8 7 SE2 d 3 5 4 ) (1 9 9 7 ); s ee

Ha r ri s v. S t a t e

, 25 6 G a. Ap p

. 1 2 0

, 1 2 2 (2 ) (5 6 7 SE2 d 3 9 4 ) (2 0 0 2 ) (“ W e h av e

rep eat ed l y h el d t h at i t i s n o t t h e fu n ct i o n o f t h i s co u rt t o cu l l th e reco rd o n b eh al f o f

a p art y

. T h i s i s p art icu l arl y t ru e i n a cas e s u ch as t h i s wh ere t h e t r a n scri p t al o n e

ex ceed s 1 ,5 0 0 p ag es .” (fo o tn o t e an d p u n ct u at io n o m it t ed )).

8erro neo u s l y ex cl u d ed an d t h e t ri al co u rt fi n d i ng s to w h i ch t h ey were rel ev an t

, h e fai l s

t o p ro v i d e u s wi t h an y

s p eci fi c erro r t o rev i ew. 9

2

. Nex t

, Cal laway as s ert s s ev eral cl ai m s of erro r re l a t e d t o t h e t ri al co urt ’ s

fi nd i ng s as t o wh et h er hi s act i o n s o r i n act i o ns i n h i s cap aci t y as t ru s t ee o f t h e Du rh am

Tru s t v io l at ed th e t erm s o f th e Tru s t or hi s fi d u ci ary d u t i es

. A s ex pl ai n ed i n fr a

, each

o f h i s cl ai m s o f erro r i n t h i s reg ard l ack m eri t

. 1 0

Th e card i n al ru l e in co n st ru i n g a t ru st in s t ru m en t i s t o “ d i s cern t he i nt en t o f t h e

s et t l o r an d t o effect uat e t h at i n ten t wi t h i n t h e l an g u ag e us ed an d wi t h i n wh at t h e l aw

9 Th e o n l y l eg al au t h o ri t y Cal l away p ro v i d es i n s u p p o rt o f hi s cl ai m t h at a t ri al

co u rt can n o t ex cl u d e an en t i re affi d av i t wi t h o u t fi rs t m ak i n g fi n d i n gs as t o wh et h er

an y p ort io n o f affi d av it i s ad m i s s i b l e i s S u ll i va n v. Fa b e

, 1 9 8 Ga. Ap p

. 8 2 4 (4 0 3

SE2 d 2 0 8) (1 9 9 1), wh i ch i s read i l y di s t i n g ui s h ab l e. Un l ik e th i s cas e, S u l li va n d o es

n o t ad d res s wh et h er an affi dav i t can be ex cl u ded i n i ts en t i ret y b ecau s e t h e su b s t an ce

o r s u bject m at t er o f t h e affi d av i t i s wh o l l y i rrel ev an t

. In s t ead

, Su l l i va n h el d th at a t ri al

co u rt m u s t co n s i d er w h et h er a n y p o r t i on of an affi d av i t i s i n t ech n i ca l co mp l i a nce

wi t h a s t a t u t e befo re s t ri ki n g i t i n i ts en t i ret y

. S ee i d

. at 8 2 7 (2 ). H ere, t h ere h as b een

n o ch al l en g e t o an y

o f t h e affi d av i t s ’ t ech n i cal co m p l i an ce wi t h a s t at u t e.

1 0 As t o each cl a i m o f erro r d i s cu s sed i n f r a

, t h e t ri al co u rt m ad e s o m e o f i t s

o wn fi n d i n g s

, b u t i t al s o fo u nd t h at s u m m ary ju dg m en t was warran t ed fo r t h e reas on s

s et fo rt h i n Lu ci n d a’ s m o ti o n fo r p art i al s u m m ary ju dg m en t an d s u p p o rt i ng b ri efs

. Th u s, i n rev i ewi n g t h e tri al co urt ’ s fi n d i n g s

, we v i ew t h e arg u m en t s Lu ci n d a m ad e

b el o w as i n co rp orat ed i n t o t h e co u rt ’ s o rd er.

9wi l l p erm i t .” 1 1 A n d i n t h e ev en t o f d o u b t fu l o r am b i g u o us l an gu ag e, we ad h ere t o t h e

“ ru le o f co n tra p ro feren d u m

, co n s tru i n g t h e l an g u ag e ag ai n s t t h e m ak er o f t h e

d o cu m en t .” 1 2 Bu t i n co n s t ru i n g an ex p res s tru s t, s u ch as t h e Du rh am Tru st

, we l o o k

f i r s t a n d fo rem o s t to “ t h e l an g u ag e t h erei n to effect u at e t h e in t en t o f t h e s et t l o r [ ],

[an d ] [w] e t u rn t o paro l ev i d en ce o n ly i f t h e t ru s t i n s t ru m en t i s am b i g u o u s

. . . .” 1 3

Fi n al l y

, t h e ex is t en ce o r n o n ex i s t en ce o f a n a m b i g u i t y i s “ a q u es t io n o f l aw fo r t h e

co u rt .” 1 4 W i t h t hes e g u i di ng pri n ci p l es i n m in d

, we t u rn no w t o Cal l away ’ s s p eci fi c

cl ai m s

.

(a) Di st r ib u t i o n o

f t h e Tr us t Pr o

p er t y. Cal l away arg u es t hat th e t ri al co u rt erred

i n fi nd i ng t h at t he t erm s of t h e Tru st req u ired h i m t o d is t ri b u t e t h e t ru s t co rp u s t o t h e

rem ai n d er b en efi ci ari es i m m ed i at el y aft er Du rh am

d i ed i n M ay

2 00 9

.

1 1 S mi t h v. Ha l l u m

, 2 86 Ga. 8 3 4

, 8 34 ( 6 9 1 S E 2 d 8 4 8) (2 0 1 0 ) (p u n ct u at i o n

o m it t ed ); a cco r d S t r a n g e v. To wn s , 3 30 Ga. Ap p . 8 76 , 8 7 7 (7 6 9 SE2 d 6 0 4 ) (2 0 1 5 ).

1 2 Per l i n g v. Ci t i

z en s & S

. Na t

. Ba n k

, 2 5 0 Ga. 6 7 4

, 6 7 6 (3 0 0 SE2 d 6 4 9) (1 9 8 3 ).

1 3 W el l s Fa r g o Ba nk, N.A. v. Co o k

, 3 3 2 G a. Ap p

. 8 3 4, 84 3 (2 ) (7 75 SE2 d 1 9 9 )

(2 0 1 5); acco r d Ovr evi k v. Ovr evi k

, 2 4 2 Ga. Ap p

. 9 5

, 97 (1 ) (5 2 7 SE2 d 5 8 6 ) (2 0 0 0 )

.

1 4 Mi t ch el l v. Ca mb r i d

g e Pr o p. O wn er s As s ’n

, In c

., 2 7 6 Ga. A p p

. 3 26

, 3 2 7 (1 )

(6 2 3 SE2 d 5 1 1) (2 0 0 5 ); a cco r d Y

. C. Dev. In c. v. No r to n

, 3 4 4 Ga

. A p p

. 6 9

, 7 3 (1 )

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

10Al t h ou g h Cal l away ’ s ch aract eri zat i o n of h i s cl ai m of erro r s u g g es ts ot h erwi s e,

t h e t ri al co u rt di d n o t f in d t h at h e was req u i red t o d i s t ri bu t e t ru s t p ro p ert y to

Du rh am ’ s ch i l dren i mmed i a t el y aft er s he d i ed

. In s t ead

, t h e co u rt fo u n d t h at Cal l away

was req u ired t o d i s t ri bu t e i t “ w it h i n a reas o nab le p eri o d o f t i m e” aft er h er d eat h

. Th e

co u rt th en co n cl u d ed t h at Cal l away ’ s co n t i n u ed fai l u re t o d is t ri b u t e an y o f t h e t ru s t

p ro p ert y t o Lu ci n d a d u ri n g t h e n i n e years aft er t h e Tru st term i n at ed was

u n reas o nab l e. A n d i n d eed

, at a h eari n g on Decem ber 1 7

, 2 0 1 4

, ap p ro xi m at el y fi v e

y ears aft er Du rh am d i ed

, Cal l away ad m i t t ed t h at h e h ad n o t y et d i st ri b u t ed t h e t ru s t

p ro p ert y t o t h e rem ai n der b en efi ci ari es

. Th en

, i n a 2 0 17 s u m m ary -ju d g m en t fi l i n g

,

Cal l away c o n c ed ed th at Lu ci n d a’ s cl ai m t h at h e s t i l l h ad n o t d i s tri b u t ed an y o f t h e

t ru s t p ro p ert y

t o h er was “ es s en t i al l y

t ru e.”

In rel ev an t p art , Sect io n (4 ) (f) o f t h e Du rh am Tru s t p ro v i d es :

Up o n t h e d

ea t h o f t h e Do n or

/ B en ef i ci a r y [ i .e.

, Du rh am ]

, al l o f th e

p ro p ert y rem ai n i n g in t h e h an d s of t h e T ru s tee s h al l b e d i s t r ib u ted t o

[h er] fo u r ch i l d ren

, wi t h p r o p e r t i es d es i g n at ed as Tru s t T ract A b ei n g

co n v ey ed to L awren ce H. Du rh am i n fee s i m p l e, an d p ro p ert i es

d es i gn at ed as Tru s t Tr a c t B b ei n g co nv ey ed to Bry an t Du rh am

, Lee

Du rh am [,] an d Lu ci n da D. W il l ard i n fee s i m p l e. . . .” 1 5

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

11Su ffi ce i t t o s ay

, t he p l ai n l an gu ag e o f Sect i o n (4 ) (f) of t h e Tru s t r eq u i r ed Cal l away

t o d i s t ri b ut e t h e rem ai n i n g t ru s t p ro p ert y t o Du rh am ’ s fo u r ch i l d ren u p o n h er d ea t h

,

an d i t p r o v i d ed t he m an n er i n wh i ch h e was t o d i vi d e t he p ro p ert y am o ng t h em

.

Cal l away d o es n o t d i s p ut e t h is req u irem en t, b u t h e co n t en d s t h a t t h e Tru s t al s o

req u i red h i m t o p ay o ff al l ex i s t i n g i n d eb t ed n e s s o f t h e Tru s t pri o r t o s u ch

d i s t ri b u t i o n

. In m ak in g t h i s arg u m en t Cal l away rel i es o n s u b s e q u e n t lan g u ag e in

Sect i o n 4 (f) o f t h e Tru s t , wh ich p ro v id es :

Each tru st t ract s h al l be s u b ject t o an eq u al p o rt i o n o f an y i n d eb t ed n es s

o wed b y an d / o r s ecu red b y t h e Tru s t Es t at e, an d s h al l b e s u b ject t o an y

i n d eb t ed n es s an d / o r l i a

bility o f Do n o r o r D o n o r’ s Es t at e, i n cl u d i n g co s t s

o f ad m i n i s t rat i o n an d es t at e t ax l i ab il i ti es

, wh i ch sai d i n d eb t ed n es s

an d / or l i ab i l i t y s h al l b e p ai d

, ut i l i zi n g s ai d two t ru s t tract s eq ual l y

, b y

m y [t ] ru st ee p r i o r t o t h e f

i n a l d i s t r i b u t i o n t o [Do n o r’ s ] ch i l d ren

. T he

d eci si o n of [t h e] [t ] ru s tee as t o t h e m ean s

, m et h od [,] an d m an n er o f s ai d

p ay m en t an d d i s t ri b u ti o n s h al l b e fi n al , b in d i n g , an d ab s o l u t e. 1 6

Cal l away arg ues t hat req u i ri n g h i m to d is t ri b u t e t h e t ru st as set s i m m ed i at el y

fo l l o w i n g D u rh am ’ s d eat h wo u l d ren d er h i s ab i l i t y t o p ay o ff t h e rel ev an t

i n d e b t ed n es s i m

p o s s i b l e. Bu t ag ai n

, t h e t ri al co u rt i m p o s ed n o s u ch req u i rem en t

.

In s t ead

, wh i l e t h e part i es d i s p ut e wh et h er Sect i on 4 (f) of t he Tru s t req u i red Cal l away

1 6 (Em p has is s u pp l i ed ).

12t o pay off th e T r u s t ’ s i n d eb t ed n es s o r o n l y Du rh am ’ s pers o n al d eb t s p ri o r to

d i s t ri b u t i n g t h e p ro pert y

, t h e t ri al co u rt fo u n d t hat Cal l away was req u ired t o ex ecu t e

al l o f h i s d ut ies u n der t h e Sect i on wi t h i n a reas o n ab le am o un t o f t im e. Th u s

,

Cal l away ’ s arg u m en t b as ed o n t h e l an g u ag e o f Sect i o n 4 (f) s i m p ly do es n o t rel at e to

t h e t ri al co urt ’ s a ct u a l

ru l i n g

.

Cal l away fu rt h er co n t en ds t h at

, u n der Sect i o n 3 o f t he t ru st i n s t ru m en t

, h e was

en t i t l ed t o a “ p eri o d o f no t l es s t h an 3 6 m o n t h s t o eq u al i ze t h e u t i l i za t i o n o f a s s e t s

b et ween th e t wo t ract s ” b efo re d i s t ri b u ti n g t h e tru s t as s et s

. Set t i n g as i d e t h at t h i s 3 6

-

m o nt h p eri o d has l o n g s i n ce pas s ed

, Cal l away ’ s rel i an ce o n Sect io n 3 to s up p o rt h i s

co n ti n u ed fai l u re t o d i s t ri bu t e t r u s t a s s e ts i s m i s pl aced

. In rel ev an t p art

, t h e Tru s t

p ro v id es :

It i s h ereb y d i rect ed t h at m y Tru s t ee, i n t h e ma n a g emen t o f t hi s Tr u s t

a n d t h e Tr u s t E

s t at e

, s h al l u t i l i

z e eq ual l y t h e as s et s fro m Tru s t T ract A

an d Tru s t Tract B, t o t he ex t en t t h at su ch u t i l i zat i on sh al l b e co n s i st en t

wi t h b o th go o d fo res t ry m an ag em en t p ract i c e s a n d s ou n d b u s i n es s

m an ag em en t p ract i ces ; p ro v i d ed h o wev er, t h at m y Tru st ee s h al l h av e a

p eri o d o f n ot l es s t h an 3 6 m o n t h s to eq u al i ze t h e u ti l i zat i o n o f a s s e t s

b et ween t h e t wo t ract s ; an d p ro v i d ed h o wev er fu rt h er, t h at m y Tru s t ee,

i n h i s s o l e d i s cret i on

, s h al l b e au t h o ri zed an d em p o wered t o b o rro w

13fu n d s ag ai n s t ei t h er t ru s t t ract fo r t h e s p eci fi c p u rp o s es o f m ai n t a i n i n g

eq u al n et v al ues b et ween t h e t wo t ru s t t ract s

. 1 7

.

Un l ik e Sect i o n 4 (f), t h e fo reg o i n g s e c t i o n m a kes n o m en t i o n o f Cal l away ’ s d u ti es

f o l l o wi n g Du rh am ’ s d eat h

, i n s t ead p ro v i d i n g i ns t ru ct i o ns fo r h i s ma n a g emen t o f t h e

Tru s t an d req u i ri ng h i m t o ma i n t a i n eq ual n et v al u es o f b o t h t ru s t t r a c t s

. B e cau s e

Cal l away was req u i red t o d is t ri b u t e t h o s e as set s u p o n Du rh am ’ s d eat h

, Sect i o n 3 can

o n l y ap pl y t o h i s act i o n s as t ru s t ee d u ri n g t h e l i fe o f t h e Tru s t

. Fu rt h er, Sect i o n 3 d o es

n o t s et a t i m e l i m i t fo r co m pl ian ce wi t h i t s pro v is i on s

, b u t i n st ead

, i t p ro v i d es fo r an

u n s p eci fi ed t i m e p eri o d o f n o t l es s t h an 3 6 -m o nt h s fo r co m pl i an ce. Su ch an o p en

en d ed t i m e p e r i o d

, i f it ap p l i ed aft er Du rh am d i ed

, i s i n co n s i s t en t wi th Du rh am ’ s

m an d at e t o d i s t ri b ut e t h e t ru s t p r o p ert y u p o n h er d eat h

. Th us

, Cal l away ’ s

i n t erp ret at io n t h at Sect i o n 3 a l l o wed h i m at l eas t 3 6 m o n t h s fo l l o wi n g Du rh am ’ s

d eat h t o di s t r i b u t e t r u s t as s et s t o h er ch i l d ren i s b el i ed b y t h e p l ai n l an g u ag e o f t h e

Tru s t

. 1 8

As p rev i o u s ly m en t i o n ed

, Cal l awa y d o e s n o t ex p res s l y ob ject t o t h e t ri al

co u rt ’ s fi n d i n g th at h e w as req ui red t o co m pl y wi th Sect i on 4 (f) wi t h i n a reas o n ab l e

1 7 (Em p has is s u pp l i ed ).

1 8 S ee s u p r a n o t es 1 1 -1 4 & acco m p an y i n g t ex t

.

14am ou n t o f t i m e fo l l o wi n g Du rh am ’ s d eat h

. Bu t h e arg u es t h at t h e i s s u e o f w h at

co n st i t u t es a reas o n ab l e am o u n t o f t i m e m u s t b e res o l ved b y a ju ry

. An d h e i s co rrect

t h at

, “ [g ] en eral l y

, t h e qu es t i o n o f w h a t i s an u n reas o n ab l e p eri od o f ti m e i s o n e fo r

t h e ju r y.” 1 9 Cal laway ig n o res

, h o wev er, t h at Geo rg i a co urt s ro u ti n el y d eci d e t h at

l en g t h y d el ay s i n p erfo rm i n g a l eg al o r co n t ract ual o bl i g at i o n m uch s h o rt er t h an t h e

o n e at i s s u e h er e c o n s t i t u te an u n reas o n ab l e d el ay as a m at t er o f l aw. 2 0 Here,

es p eci al ly g i v e n t h e u nam b i g u o u s lan g u ag e o f t h e Tru s t i ns t ru m en t t h at Cal l away

m u st di s tri b ut e t h e t ru s t as s et s u p o n D ur h am’

s d ea t h

, we co n cl ud e t h at Cal l away ’ s

fai l u re t o d o s o f

o r a t l e a s t n i n e y ears i s u n reas o n ab le as a m at t er o f l aw. Th u s

, t h e

1 9 Kl i n g b ei l

v. Ren b a u m , 1 4 6 Ga. Ap p . 5 9 1, 5 9 3 (3 ) ( 2 4 6 SE2 d 6 9 8 ) (1 9 7 8 ).

2 0 S ee, e.g

. , Pr o t ect ive In s

. Co

. v. Jo h n so n

, 2 5 6 G a

. 7 1 3

, 7 1 4 (1 ) (3 5 2 SE2 d

7 6 0 ) (1 98 7 ) (h ol d i n g t h at a 43 -m o n t h d el ay i n g i v i n g i n s u rer n o t i ce o f a cl ai m

, wh en

s u ch n o t i ce was req u i red t o b e g i v en “ p ro m p t l y

, ” an d a 1 7

- m o n t h d el ay i n s eek i n g

cert ai n b en efi t s were b ot h u n reas o nab l e as a m at t er o f l aw); Or i o n Ca p i t al Pa r t n er

s

, L.P. v. W es t i n g ho u s e E l ec. Co r

p

. , 2 2 3 Ga. Ap p

. 5 3 9

, 5 4 3 (2 ) (b ) (4 7 8 SE2 d 3 8 2 )

(1 9 9 6) (h o l d i n g t hat a s ev en -m o n t h d el ay i n at t em p ti n g to res ci nd a co n t ract

, wh i ch

was an o p t i on un d er it s t erm s

, was “ t o o l a t e as a m at ter o f l aw t o co n st i t u t e an

effect i v e res ci s s i o n o r reas o n ab l e o ffer t o res ci n d t h e ag reem en t ”); Ll o yd v. Ho d ge

, 1 9 1 Ga

. Ap p

. 3 5 5

, 3 5 5-5 6 (3 8 1 SE2 d 5 4 0 ) (1 9 8 9) (h o l d i n g t h at a fi v e-an d-a-h al fm o nt h d el ay i n pay i ng cert ai n co u rt co s t s w a s u n reas o nab l e an d in ex cu s ab l e as a

m at t er o f l aw); Fer

g u s o n v. Ba nk o

f Da ws o n

, 5 7 Ga. A p p

. 6 39

, 6 3 9 (2 ) (1 9 6 SE 1 9 5 )

(1 9 3 8) (h o l d i n g t hat

, wh en a co n t ract o f s al e pro v i des n o s p eci fi c t i m e fo r

p erfo rm an ce, a reas o n ab l e t i m e i s t o b e al lo wed

, an d a s i x -an d -a-h al f-m o n t h d el ay in

ex ecu t i n g t h e s al e aft er th e co n t ract was e x e c u t ed was an u n reas o n ab l e d el ay as a

m at t er o f l aw).

15t ri al co u rt d i d n o t err in g ran t i ng s u m m ary ju dg m en t t o Lu ci nd a as t o h er cl ai m fo r t h e

d i s t ri b u t i o n o f t ru s t as s et s

. 2 1

(b ) Tr u s t ee a n d A t t o r n ey Fees

. Cal l away n ex t arg u es t h at th e t ri al co u rt erred

i n fi n di n g t h at h e was req u i red

, as a m at t er o f l aw, t o d i s g o rg e t ru s tee fees

, at t o rn ey

fees

, an d co s ts p ai d t o h i m fro m t ru s t fu n d s aft er M ay

3 , 2 0 12

. 2 2

2 1 S ee Mu n fo rd v. Peep les

, 1 5 2 Ga. 3 1

, 4 5 -4 6 (2 ) (1 0 8 SE 4 5 4 ) (1 9 2 1) (h o l d i n g

t h a t a p r o v i s i o n i n a w i l l s h o u l d n o t b e i n t erp ret ed s u ch t h at “ a t ru s t ee co u l d

arb i t rari ly p ro l o n g t h e tru st in h i s o wn i nt eres t as ag ai n s t t h e in t eres t o f t h e ces t u i q u e

t ru s t

. Th e ru le h as b een s t at ed t h at

. . . [wh en ] th e creat o r o f a tru s t m ak es i ts d u rat i o n

d i s cret i o n ary wi t h t h e t ru s t ee, s t il l s u ch d i s cret i o n is no t a r b i t rary

, b u t m u s t b e

ex erci s ed reas o nab l y an d i n t h e i n t eres t o f t h e ces t ui q u e t ru st ” (p u n ct u at i o n

o m it t ed )); O vr evi k

, 2 4 2 G a. Ap p

. at 9 8 -9 9 (3 ) (h ol d i n g th at t h e s o l e pu rp o s e o f a t ru s t

was fu l fi ll ed wh en b o t h s et t l ors h ad d i ed an d t h e t ri al co u rt p ro p erl y term i n at ed t h e

t ru s t an d o rd ered di st ri b u t io n o f t h e t ru s t p ro p ert y i n acco rd an ce wi th th e t erm s o f t h e

t ru s t ); s ee a l

s o s u pr a n o t e 2 0

.

2 2 Reg ard i n g t h i s cl ai m o f erro r, Cal l away ad o p t s i n i t s en t i ret y t h e p ort i o n o f

h i s b ri ef ad d res si n g t he cl ai m o f erro r at i ss u e i n Di v i s io n 2 (a) s u p r a

. Bu t g i v en t h at

we h av e al read y co ns i dered an d reject ed t h o s e arg u m en t s

, we wi ll n o t ad d res s t h em

ag ai n

. Ad d it i on al l y

, Cal l away s u m m ari l y co n t en d s t h at pay m en t s h e m ad e wi t h t ru s t

fu n d s to t hi rd part i es fo r s erv i ces were n eces s ary t o ret ai n se r v i c e s

. Bu t t h i s

co n cl u s o ry al l eg at i o n

, w h ich was u n s u p p o rt ed b y reco rd ci t at io n s

, l eg al au th o ri t y

, o r

m ean i n g f u l a r g u m e n t

, fai l s t o al l eg e a s p eci fi c t ri al co u rt erro r wi t h res p ect t o an y

p art i cu l ar p ay m en t t o an i d en t i fi ed th i rd p art y fo r th i s Co u rt t o rev i ew. S ee s u p r a n o t e

8 & acco m

p an y i ng t ex t; A l

s to n & Bi r d

, LLP v. Mel l on Ven t u res II, L.P.

, 3 0 7 Ga. Ap p.

6 4 0

, 64 8 (6 ) (b ) (7 0 6 SE2 d 6 5 2 ) (2 0 1 0 ) (“ Ou r ap p el l at e co urt s are co u rt s fo r t h e

co rrect io n o f erro rs o f l aw co m m i t t ed i n t h e t ri al co u rt .”).

16In i t s o rd er, t he t ri al co urt fo u n d t h at

, aft er t h e Tru s t t erm i n at ed up o n Du rh am ’ s

d eat h

, Cal l away was no t au t h o ri zed t o co n t i n u e pay i n g h i m s el f t ru st ee fees

, at t o rn ey

fees

, an d co s ts fro m t ru s t as s et s

. Th e co urt n o ted t h at

, wh i l e i s s u es o f fact rem ai n ed

a s t o t h e ex act a mo u n t “ o f cred i t s d u e fro m [Cal l away ] [,] i n d i v i d u al ly

, t o t h e T r u s t

as a res u l t o f [h is v ari o u s ] u n au t h o ri zed act i o n s

, [t h e] p o rt io n o f th e cred i t s d u e are

as cert ai n ab l e as a m at t er o f l aw wi t h res p ect t o [t h e afo rem en t io n ed ] fees an d co s t s .”

Ad d i t i o n al l y

, t he co u rt fo u n d

, as we h av e, t h at t h e pl ai n an d u n am b i gu o us l an g u ag e

o f t h e t r u s t i n s t ru m en t d i d n o t p ro v i d e Cal l away a peri o d of 3 6 m on t h s t o fi n i s h

ad m i n is t eri n g th e T ru st a f t e r i t t e rm i n at ed

. Th e co u rt fu rt h er fo u n d t h at

,

n o t wi t h s t an d i n g Cal l away ’ s co nt en ti o n t h at h e h ad a 3 6 -m o n th “ w i n d d o w n ” p eri o d,

h e co n t i nu ed t o p ay h im s el f fees an d co s t s fro m t ru s t as s et s ev en aft er t h at t i m e p eri o d

ex p ired o n M ay 3

, 2 01 2

. Bu t u l t i m at el y

, t he co u rt ex cl u ded t h at 36 -m o n t h p eri o d an d

fo u n d Cal l away o w ed th e Tru s t t h e t ru s t ee fees

, at t o rn ey fees

, an d o t h er co s t s t h at h e

recei v ed a f t er M ay 3 , 2 0 1 2. 2 3

2 3 Th e t ri al c o u r t fo u n d t h at Cal l away m u st d i sg o rg e an d p ay

i n t h e p ri n ci p al

am ou n t of $ 1 0 5 ,0 0 0 w i t h an ad d i t i on al $ 35 ,7 6 5 .7 2 i n accru ed i n t eres t as of Ap ri l 2 4,

2 0 1 8

, fo r a t ot al d i s g o rg em en t o f $ 1 4 0

, 7 6 5 .7 2 wi t h $ 2 2.2 9 d u e p er d i em aft er Ap ri l

2 4

, 20 1 8

. W h i le Cal l away arg u es t hat h e w as en t i t l ed t o t h es e fees u n der th e t erm s o f

t h e Tru s t , h e d oes n o t di s pu t e t h e t ri al co u rt ’ s cal cu l at i o n o f t h e fees an d co s t s

.

17On ap p eal

, Cal l away co rrect l y n ot es t h at Sect io n 1 2 o f t h e T ru s t pro v i d es fo r

t h e am ou n t o f tru s t ee fees an d ex p en s es th at he m u s t be p ai d fo r h i s s erv i ces as t ru s t ee

an d wh en s u c h p a ym e n t s w ere t o b e m ad e. He t h en arg ues t h at b ecau s e h e was

en t i t l ed t o a p eri o d of at leas t 36 m o n t h s t o “ eq u al i ze t h e u t i l i zat i o n o f as s et s b et ween

t h e t wo [t ru s t t ract s] , i t d efi es l o g i c” fo r t h e t ri al co u rt t o co n cl u de t h at Du rh am d id

n o t in t en d fo r h im t o b e pai d fo r h i s t r u s t ee an d at t o rn ey s erv i ces aft er h er d eat h.

Acco rd in g t o Cal l away

, n o reas o n ab l e pers o n

, an d es peci al l y n o t an at to rn ey

, wo u ld

rem ai n s i g n at o ry t o m i l l i o ns o f d o l l ars o f d eb t wi t h o u t b ei n g p ai d fo r h i s s erv i ces

, an d

t h u s

, t h e o n l y lo gi cal i n t erp ret at i o n o f t h e T ru s t i n s t ru m en t i s t h at he was en t i t l ed to

b e p ai d s u ch fees

.

As t o Cal laway ’ s rel i an ce o n t h e 3 6 -m on t h t i m e peri o d p ro v i d ed fo r i n Sect i o n

3 o f t h e Tru s t

, we hav e al read y h el d i n Di v i s i o n 2 (a) s u p ra t h at i t ap p l i es to

Cal l away ’ s ma n a gemen t o f t h e Tru s t du r i n g t he l i fe o f t h e Tru s t

. An d co n trary t o h i s

rep eat ed as s e r t i o n s o t h erwi s e, Sect i o n 4 (f), n o t Sect i o n 3

, p ert ai n s t o t h e d u t i es h e

was req ui red t o p er f

o r m a f t e r Du rh am ’ s d eat h

. It ap p ears t h at

, i n an ab u n d an ce o f

cau t i on

, t h e t r i a l co u rt o rd ered Cal l away t o p ay o n l y t h e fees an d co s t s h e recei v ed

aft er M ay 3

, 2 0 1 2

, rat h er t h an aft er Du rh am ’ s M ay 20 0 9 d eat h

. In m a k i n g t h at

d et erm i n at i o n

, t h e t ri al co u rt p ro p erl y b as ed i t s d eci s i o n p ri m ari ly o n t h e l an g u ag e o f

18t h e t ru s t in s t ru m en t

, rat h er t h an o n wh at a “ reas o n ab l e at t o rn ey ” wo u l d h av e ag reed

t o b e p ai d

. 2 4

Cal l away al s o al l eg es th at

, b et ween M ay 9

, 20 0 9

, an d Decem b er 1 7

, 2 0 1 4

, t h e

t i m b e r s a l e s an d n eg o ti at i o n s he en g ag ed i n o n b eh al f o f th e Tru s t g en erat ed m o re

t h an t wo m i ll i on d o l l a r s o f Tru s t i n co m e, wh i ch al l o wed hi m t o m ak e s i g n i fi can t

h ead w ay t o ward p ay i n g o ff t h e Tru s t ’ s i n deb t ed nes s

. Bu t ag ai n

, fo ll o wi n g Du rh am ’ s

d eat h

, Cal l away was au th ori zed o n l y to p ay o ff t h e rel ev an t i n d e b t e d n es s an d

d i s t ri b u t e t h e tru s t p ro p ert y wi t h i n a r ea s o n ab l e p er i o d o f t i me

. Cal l away p ro v i d es

n o leg al au t h o ri ty o r s u b st an t i ve arg um en ts t o s u p p o rt h i s ap p aren t b el i ef t h at t h e

p l ai n l an g u ag e o f t he Tru s t au t h o ri zed h i m to co nt i n ue en g ag i n g i n b u s i n es s

t ran s act io n s fo r o v er fi v e y ears aft er Du rh am d i ed

, wh et h er h i s act i on s b en efi t t ed t h e

Tru s t o r n o t

. I n su m

, Cal l away h as n o t i den t i fi ed a l eg al o r fact ual erro r i n t h e t ri al

co u rt ’ s fi nd i ng t hat h e was n o t au t h o ri zed to co n t i nu e co l lect i n g fees an d co st s o f t h e

Tru s t t h ree y ears aft er Du rh am ’ s d eat h

. 2 5

2 4 S ee s u p r a n o t es 1 1 -1 4 & acco m p an y i n g t ex t

.

2 5 Cal l away p r o v id es o n l y t w o ci t at io n s t o l eg al au t h o ri t y i n s up p ort o f h i s

co n ten t i o n t h a t h e is n o t l i ab le fo r fees an d co st s p ai d t o h i m fro m t ru s t as s et s aft er

M ay 3

, 2 01 2 : OCGA § 53 -1 2 -2 6 0 an d Rel i a n ce Tr

. Co

. v. Ca nd l er

, 2 9 4 Ga. 1 5 (7 5 1

SE2 d 4 7) (2 0 1 3 ). An d h e s u m m ari l y co nt en d s t h a t

, u n d er OCGA § 5 3 -1 2 -2 6 0 an d

Ca n d l er

, h e i s no t l iab l e fo r an y act i o n s h e t o o k as t ru s t ee u n l es s a ju ry fi n d s h e act ed

19(c) Pr e-l i t i g a t i o n S et tl emen t Pr o

p o s al

. Cal l away al so arg u es th at t h e t ri al co u rt

erred in fi n d i n g t h at he v io l at ed h i s du t y o f l o y al t y b y m ak i n g a p re-l i t i g at i o n

s et t l em en t p ro p o s al t o Lu ci n d a, Bry an t

, an d Lee fo r d i s t ri b u t i o n o f t h ei r res p ect i v e

s h ares o f t ru s t p ro pert y i n ex ch a n g e f o r a fu l l an d co m

p l et e rel eas e o f hi m fro m

l i ab i l i t y as t ru s t ee.

On J an u ary 8

, 20 1 4

, over f o u r -a n d -h a lf yea r s aft er Du rh am ’ s deat h

, Cal l away

s en t a let t er to L u ci n d a’ s co un s el

, u p d at i n g h i m o n v ari o us m at t ers rel at ed t o t h e

s t at u s o f t h e T ru st

, i n cl u d i n g i t s as s et s an d i n deb t ed nes s

. Cal l away t h en p ro p os ed t h at

h e co n v ey to Lu ci n da, Lee, an d Bry an t t h ei r res p ect i v e s h ares of t ru s t as set s s u b ject

t o d eb t s o wed b y th e T ru st

. An d i n co n cl u s i o n, Cal l away s t at ed t h at “ [t ] h e

co n vey an ces an d fi n al d is t ri b u t i o n o f t h e Tru s t [are] s ub ject t o t h e s i m

u l t an eo us [ ]

ex ecu t i o n o f a fu l l an d co m p let e rel eas e o f m

y s el f as Tru st ee.”

i n b ad fai t h

. Bu t h e p ro v i d es n o fu rt h er di s cu s s i o n a s t o t h e ap p l icat i o n o f t h o s e

au t h o ri t ies t o t he fact s o f t h i s cas e o r an y arg u m en ts i n s up p o rt o f t h i s b are as s ert i o n.

S ee B r i tt a i n v. S t a te

, 3 29 Ga. Ap p

. 6 8 9

, 70 4 (4 ) (a) (7 6 6 SE2 d 1 06 ) (2 0 1 4) (“ [M ] ere

co n cl u s o ry s t at em en t s are n ot t h e t y p e of m ean i n g fu l arg u m en t co n t em p lat ed b y [t h i s

Co u rt ’ s ] ru l es .” (p u n ct u at i o n o m i t t ed )). M o reo v er, we fai l t o s ee h o w t h e req u i rem en t

t h a t a t r u s t ee g en eral l y p erfo rm h i s du t i es in g oo d fai t h b ears an y rel at i on t o t h e

i n s t an t ci rcu m s tan ces

, wh en t h e act i o n s t ak en b y Cal l away were co m p l e t e l y

u n a u t h o r i z ed , reg ard l es s o f wh et h er h e act ed i n g o o d o r b ad fai t h

.

20At a h eari n g o n Decem b er 1 7

, 2 01 4

, Cal l away was as k ed ab o u t t he J an u ary

2 0 1 4 l et t er, an d t h e fo l l o wi n g ex ch an g e o ccu rred :

Q: So i t ’ s y o ur i n t en t to d i s t ri b u t e Tru st Tract B t o L u ci n d a, Bry an t [ ,]

an d Lee?

A: I m ad e an o ffer i n i ti al l y w h en al l t h i s cam e up t o s p l i t t h e d eb t an d

co n v ey o ut t h e p ro p ert y

. An d I n ev er recei v ed a re s p o n s e

. An d y o u

k n o w

. . . si n ce t h e b en efi ci ari es h av e n ev er b een ab le t o ag ree t o

an y t h i n g

, i f t h e p ro p ert y i s co nv ey ed wi t h ou t t h e d eb t b ei ng pai d th e

b an k i s go i n g t o en d u p fo recl o s i ng i t b ecau s e n o b o d y wi l l ag ree t o h o w

i t ’ s g o in g t o b e d i v i d e d a n d wh o i s g o i ng t o p ay wh at

. An d th at is n ’ t

wh at [Du rh am ] wan ted

.

Q: An d t h e offer t h at y o u ’ re t al k i n g ab o u t t o d is tri b u t e t h e p ro p ert y

, t hat

was co n di t i o n ed o n a si m

u l t an eo us fu ll an d co m

p let e rel eas e o f y o u rs el f,

ri gh t?

A: Y e a h

. I d o n ’ t wan t t o d i s t ri b ut e i t o u t an d th en

— y o u k n o w, b e i n

l i ti g at i o n fo rev er.

Q: Yo u’ re n o t g o i n g to gi v e i t t o t he b en efi ci ari es u n l es s y o u ’ re rel eas ed

,

ri gh t?

A. W h y wo u l d I?

21Lu ci n d a arg u ed b el o w t h at

, u n d er O C G A § 5 3-1 2 -2 4 6 (a), a t ru s t ee can n o t

co n di t i o n p erfo rm an ce o f a m an d at o ry fi du ci ary du t y o n a rel eas e fro m l i ab i l i t y

, an d

t h e t r i a l co u rt ag reed

. In d eed

, OCGA § 5 3-1 2 -2 46 (a) p ro v id es : “ A t ru s t ee s h al l

ad m i n is t er t h e t ru s t s o l el

y in t he i n t eres t s o f t h e b en efi ci ari es .” 2 6 A n d h ere, s ev e r al

y ears aft er Du rh am ’ s d eat h

, Cal l away ex p res s l y co n d i ti o n ed t h e ex ecu t i o n o f h i s

m an d at o ry d u t y t o d is t ri b u te t ru s t as set s to th e rem ai n d er b en efi ci ari es u p o n

Du rh am ’ s d eat h o n a co m p l et e rel eas e o f an y l eg al l i ab il i t y rel at ed t o h i s ro l e as

t ru s t ee. N eed l es s t o s ay

, s et t i ng s u ch a p reco n d i t i o n t o di st ri bu t i o n o f T ru s t p ro p ert y

v i o l at es t he p l ai n term s o f Sect i o n 4 (f) of t h e Tru s t, d et ai l ed s u p r a

, an d su ch a rel eas e

wo u l d s ol el y b en efi t Cal l away t o t h e p o t en t ial d et ri m en t o f t h e rem ai n d er

b en efi ci ari es

. Th e o n l y preco n d i t i o n t o d i s tri b ut i on o f th e tru s t as s et s was t h e

p ay m en t o f cert ai n d eb t s

, an d Ca l l a w a y f ai l s t o i d en t i fy a n

y l a n g u a g e i n t h e t ru s t

d o cu m en t ev i d en ci n g Du r h a m ’s i n t en t t o ab s o l v e h i m o f al l l iab i l i t y fo r an y

m i s co n du ct t hat h e m i g h t en g ag e i n as t ru s t ee.

Nev ert h el es s

, Cal l away ap p ears to s u g g e s t t h at t h e 2 0 1 4 l et t er was

m i s i n t erp ret ed b y t h e t ri al co u rt

, an d h e d i scu s s es th e co n t en t s o f t he l et ter as wel l as

t h e ci rcu m s t an ces s u rro u n d i n g wh en i t was wri tt en

. Cal l away cl ai m s t h at hi s p ro p o s al

2 6 (Em p has is s u pp l i ed ).

22was “ cl earl y i n t en ded as a s p eed i er al t ern at i v e t o h i s co n t i n ued s erv i ce as [t ] ru s t ee[,]

wh i ch req u i red h i m

t o p ay o ff al l [t ] ru s t i n d eb t ed n es s p ri o r t o d i s t ri b ut io n o f [t ] ru s t

p r o p e r t y s ecu ri n g t h e i nd eb t ed n es s .” Bu t o n ce ag ai n

, wi th ou t pro v i di n g an y l eg a l

au t h o ri t y reg ard i n g fi d u ci ary d u t i es o r ap p ly i n g s u c h a u t h o ri t y t o t h e s p eci fi c fact s

o f t h i s cas e, Cal l away s i m p l y p res en t s hi s vers i o n o f t h e fact s

, m o s t o f wh i ch are n ot

s u p p ort ed b y ci t at io n s to t he reco rd

. Th en

, i n co n cl us i o n

, h e s u m m ari l y co n t en d s t h at

t h e t ri al co u rt erred b y fi n d i n g t hat t h e l et t er co n s t i t u t ed a v i o lat i o n o f h i s d u t i es u n d er

OCGA § 5 3 -1 2-2 46 (a) b ecau s e t h ere was n o e v i d e n ce t o s up p o rt i t

. Bu t ag ai n

, an

ap p el l an t m

u s t s u p p o rt en u m erat i o n s o f erro r wi t h arg u m en t an d ci t at i o n s o f

au t h o ri t y

, an d “ m ere co n cl u s o ry s t at em en t s are n ot t h e t y p e o f m ean i n g fu l arg u m en t

co n tem p l at ed b y o ur ru les .” 2 7

Reg ard l es s

, Cal l away i s m i s t ak en t h at t h ere was n o ev i den ce t o s up p o rt t h e t ri al

co u rt ’ s fi n di n g t hat t h e s et t l em en t o ffer v i o l at ed h i s fi d u ci ary du t i es un d er OCGA §

5 3 -1 2-2 46 (a). In d eed

, t h e J an u ary 2 0 1 4 let t er cl earl y an d u n am b i gu o u s l y s t at ed t h at

Cal l away wo ul d n o t d i s t ri b u t e Tru s t T r act B, as ma n d a t ed by Sect i o n (4 ) (f) o f t h e

Tru s t

, u n les s L u ci n da, Lee, an d Bry an t rel eas ed hi m o f an y T ru s t -rel at ed l i ab i l i t y

, an d

2 7 Fa r mer v. Dep ’t o

f Co r r

., 3 46 Ga. Ap p

. 38 7

, 39 4 (2 ) (8 1 6 SE2 d 3 76 ) (2 0 1 8 )

(p u n ct u at i o n o m i t t ed ).

23h e lat er t es t i fi ed th at h e d i d s o t o p ro t ect h i ms el f fro m b ei n g “ i n l i t i gat i o n fo rev er.”

As o u r Su p rem e Co u rt h as ex p l ai n ed

,

[ a ] t es t am en tary tru s t ee m u s t act

, n ot o nl y fo r t h e b en efi t o f t h e t ru s t

es t at e, b u t al s o i n s u ch a way as n o t t o g ai n an y ad v an t ag e, d i rect ly o r

i n d i rect l y

, ex cep t su ch as t h e l aw s p eci fi cal ly g i ves h i m ; an d h e owes an

u n d i v i d ed d u t y t o t h e b e n e f i c i ary

, an d m

u s t no t p l ace h i m s el f i n a

p o s i t i o n wh ere hi s pers o n al i n t eres t wi ll co nfl i ct wi t h t he i n t eres t o f th e

b en efi ci ary

. 2 8

Here, Cal l away ad m i t t ed l y m ad e h is o ffer t o ex ecu t e h i s m an d at o ry d u ty t o d i s t ri b u t e

t ru s t p ro p ert y co n t i n g en t on i m m u n i ty fro m l i ab i li t y fo r h i s act i o ns as t ru s t ee. Do i n g

s o was fo r h i s s o l e b en efi t

, an d p os s i b l y t o t h e d et ri m en t o f t h e b en efi ci ari es . Th u s

,

t h e t ri al co u rt d i d n o t err i n fi n d i n g t h at h i s co n d u ct v io l a t ed h i s fi d u ci ary d u ti es

u n d er OCGA § 53 -1 2 -2 4 6

. 2 9

2 8 Ha n s o n v. Fi r

s t S t a t e Ba n k & Tr

. Co

. , 2 5 9 Ga. 7 1 0

, 7 11 (4 ) (3 8 5 SE2 d 2 6 6 )

(1 9 8 9) (p u n ct u at i o n o m i t t ed ); s ee Ri n g er v. Lo ckh a r t

, 2 4 0 Ga. 8 2, 8 5 (2 3 9 SE2 d 3 4 9 )

(1 9 7 7) (“ Th e b ro ad ru l e o f eq u i t y

. . . i s t h at i t i s t h e d u t y of a t ru s t ee n o t t o

. . . d o an y

act i n co n s i s t en t wi t h t h e i n t eres t o f t he b en efi ci ary

. . . . W h en ev e r h e h as p l aced

h i m s el f i n a p o s i t i o n t h at hi s p ers o n al i n t eres t has or m ay c o m e i n co n fl i ct wi t h h i s

d u t i es as t ru s tee, a co u rt o f eq u i t y n ev er h es it at es t o rem o ve h i m

. In s u ch

ci rcu m s t an ces t h e co urt d o es n o t s t o p t o i n qu i re w het h er t h e t ran s act i o ns co m p l ai n ed

o f were fai r o r u n fai r; t h e i n q u i ry s t o p s wh en s u ch rel at i on i s d i scl o s ed

. ” (p u n ct u at i o n

an d ci t at i o n o m i t t ed )).

2 9 S ee Jo n a s v. Jo n a s

, 2 80 Ga. Ap p

. 1 5 5

, 16 1 (6 3 3 SE2 d 5 4 4) (2 0 0 6 ) (“ If o n e

o f t h e i n t eres t s i n v o l v ed i s t h at o f th e t ru s t ee p ers o nal l y

, sel fi s h n es s i s ap t t o l ead h er

243

. In h i s n ex t t hree cl ai m s o f erro r, Cal l away co nt en d s t h at t h e tri al co u rt erred

i n m ak i n g cert ai n fi n d i n g s wi t h o u t fi rs t ru l i n g o n Lu ci n d a’ s p en d i n g m o t i o n fo r s et

o ff o r h i s p en di n g m o t i o n fo r rev i ew an d ap pro v al o f a c c o un t i n g

. Sp eci fi cal l y

,

Cal l away arg u es th at t he tri al co u rt erred i n fi n di n g

, b efo re ru l i n g on t h e s et -o ff an d

acco u n t in g m o t i o n s

, t h at h e l ack ed t h e au t ho ri t y t o d i s t ri bu t e t ru s t as s et s t o o r fo r t h e

b en efi t o f Lawren ce o r hi s es t at e an d to l eas e t ru s t p ro p ert y t o Lawren ce. Cal l away

al s o arg u es th at t he t ri al co u rt erred i n fi n d i ng t h at h e v i ol at ed h i s d ut y to p ro v i d e

rep o rt s an d acco u nt s wi t h ou t h av i n g ru l ed o n hi s acco u n t i n g m o t i o n

. Bu t t h es e

co n ten t i o n s are l i k ewi se wi th o u t m eri t.

A s an i n i t i al m at t er, Cal l away n ev er arg u ed t o t h e t ri al co u rt t h at ru l i n g o n

Lu ci n d a’ s m o t i o n fo r p art ial su m m ary ju d g m en t wo u l d be i m p ro p er u n l es s th e co u rt

fi rs t ru l ed o n h i s acco u n t i ng m o t i o n

. In f a ct

, at t h e s u m

m ary -ju d gm en t h eari n g,

t o gi v e h ers el f an ad v an t ag e[,]

. . . i t i s n o t n eces sary fo r t h e b en efi ci ari es t o s h o w t h at

t h e t ru s t ee act ed i n b ad fai t h

, g ai n ed an ad v an t ag e, o r t h at th ey were har m ed

. Th e

t ru s t ee m u s t av o id b ei n g p l aced i n s u ch a p os i t i o n

, an d i f s h e can n o t av o i d i t

, s h e m ay

res i gn

, m ay fu l l y i n fo rm t h e b en efi ci ari es o f t h e co nfl i ct

, o r m ay req u es t t he co u rt to

ap p oi n t a g u ard i an ad l i t em t o p ro tect th e u n p ro t ect ed i n t eres t s .” (p u n ct u at i o n

o m it t ed ); Bl o o d

wo r t h v. Bl o o dwo r t h

, 2 6 0 Ga. Ap p

. 4 6 6, 4 7 1 (1 ) (5 7 9 SE2 d 8 5 8 )

(2 0 0 3) (“ An ad m i n i s t rat o r or ex ecu t o r i s a t r u s t ee i n v es t ed wi th a s o l em n t ru s t to

m an ag e t h e es t at e u n d er h i s co n t ro l t o t he b es t ad van t ag e o f t h os e i n t eres t ed i n i t

. .

. . N o th i n g can b e t o l erat ed wh i ch co m e s i n t o co n fl i ct o r co m p et i t i o n wi t h t h e

i n t eres t s an d wel fare o f t h o s e i n t eres t ed i n t h e es t at e.” (p u n ct uat i on o m i t ted )).

25Lu ci n d a’ s co un s el in di cat ed t h at h e h ad “ ju s t recei v ed ” an u p d at e to t h e acco u n t i n g

m o ti o n

, b u t h e h ad no t had a ch an ce t o rev iew i t

, an d Cal l away m ad e n o o bject i o n to

co n ti n u i n g wi t h t h e h eari n g d es p i t e t h at m o t i o n b ei n g u n res ol v ed

. Th u s

, b ecau s e t h i s

cl ai m was n o t rai s ed o r ru led u p o n i n t h e t ri al co u rt

, i t p res en t s n o erro r t o rev i ew o n

ap p eal

. 3 0

Cal l away d i d as s ert

, h o wev er, b ot h at t h e s u m m ary -ju d g m en t h e ari n g an d in

h i s s u m m ary -ju d g m en t res p o n s e b ri ef, t h at a ru li ng o n Lu ci n d a’ s m o t i o n fo r p art i al

s u m m ary ju d g m en t wo u l d b e p rem at ure u n les s t h e co u rt f i rs t ru l ed o n h er p en d i n g

m o ti o n fo r s et -o ff. An d h e n o w arg u es t h at t h e t ri al co u rt erred i n f i n d i n g t h at h e

l ack ed au t h o ri t y t o d i s t ri b u t e or l eas e t ru st as s et s t o Lawren ce wi t h o u t fi rs t ru l i n g o n

Lu ci n d a’ s m o t i o n fo r s et -o ff.

As t o l eas in g t ru s t p ro p ert y t o Lawren ce, Cal l away m is ch aract eri zes t h e t ri al

c o u r t ’ s ru l i n g. In s t ead o f fi n di ng t h at Cal l away w as u n au t ho ri zed to l eas e p ro p ert y

t o Lawren ce, th e t ri al co urt fo u n d t h a t C a l l a w a y l ack ed t h e au t h o ri t y t o p er mi t

3 0 S ee O VIP, In c. v. Bl o ckb u s t er Text i l es

, LLC

, 2 89 Ga. Ap p. 2 7 6

, 2 7 8 (1 ) (6 5 6

SE2 d 9 0 7 ) (2 0 08 ) (“ [I] s s u es p res en t ed fo r t h e fi rs t ti m e o n ap p eal fu rn i sh no t h i n g fo r

u s t o rev i ew, fo r t h i s i s a co u rt fo r co rrect i o n o f erro rs o f l aw co m m it t ed b y t h e t ri al

co u rt wh ere p ro p er ex cep t i o n i s t ak en

. On e m ay n o t ab an d o n an i s s u e i n t h e t ri al co u rt

an d o n ap p eal rai se q ues t i on s o r i s s u es n ei th er r a i s e d n o r ru l ed o n b el o w.”

(p u n ct u at i o n o m i t t ed )).

26L a w r e n ce

, h i s es t at e, or an y o t h er t h i rd p art y t o l eas e t ru s t pro p ert y an d ret ai n t h e

p ro ceed s rat h er th an r e m i t t i n g t h em t o t he Tru st

. Reg ard l es s

, b as ed o n Cal l away ’ s

p referen t i al treat m en t o f L awren ce, Lu ci n da fi l ed a m o t i o n t o s et -o ff a ny d i s t ri b u t i on s

t o h i s e s t a te b y d eb t s i t o wed t o t h e T ru s t. Sp eci fi cal l y

, Lu ci n d a co n t en d ed t h at

Lawren ce’ s es t at e o wed t h e t ru s t $ 2 ,0 0 0 ,0 0 0

, an d t h at t h i s d eb t m u s t b e p ai d t o t h e

Tru s t b efo re di st ri b u ti o n o f t h e Tru s t as s et s g en eral l y o r t o L awren ce’ s es t at e.

Lu ci n d a fu rt h er arg ued t h at

, t o t h e ex t en t t h at t h e s et -o ff fro m Lawren ce’ s es t at e d o es

n o t m ak e t h e Tru s t wh o l e fo r th e d i s t ri b u t i o n s t o an d i n fav or o f Lawren ce, Cal l away

m u st p ay t h e bal an ce. As to t h i s i s su e, th e t ri al co urt fo u n d t h at

, u n d e r t h e p l ai n

l an g u ag e o f th e Tru s t

, Cal l away was u n au t h o ri ze d t o en g ag e i n s u ch p referen t i al

t reat m e n t o f Lawren ce, b u t t h at t h e fi n d er o f fact m u s t d et erm i n e t he a m o u n t o f

cred i t s d u e fro m

Cal l away p ers o n al ly fo r t h i s i m p ro p er co n d u ct

. Th e t ri al co u rt d id

n o t ru l e on w h et h er t h at am o u n t wo u l d b e s et -o ff b y p ay m en ts m ad e fro m Lawren ce’ s

es t at e.

In h i s ap p el lat e b ri ef, Cal l away d et ai l s hi s ju s t i fi cat i on s fo r g i v i n g p referen t i al

t reat m en t t o Lawren ce, as s ert i n g t h at an y act i o n Lu ci n d a i n it i at es t o reco v er d am ag es

fo r t h i s co n d u ct d ep en d s o n t he o u t co m e o f h er s et -o ff m o t i on

. Bu t C al l away i s

m i s t ak en t h at t h e t ri al co u r t m u s t f i rs t ru l e o n Lu ci n d a’ s s et -o ff m o ti o n b efo re

27d eci d i n g wh et h er Cal l away ’ s p referen t ial treat m en t of Lawren ce v i o lat ed t h e p l ai n

l an g u ag e o f t h e Tru s t

. As h e ack n o w l ed g es

, th e am o u n t o f d am ag es award ed as t o t h i s

cl ai m wi l l be d eci d ed by a ju ry

. T h e c o u r t ’s ru li n g on t h e s et -o ff m o t i on

, th en

, wi l l

rel at e s o l el y t o th e ju ry ’ s cal c u l a t i o n o f d am ag es an d h o w m u ch o f t h o s e d am ag es

s h o u ld b e s et -o ff b y Lawren ce’ s es t at e. Th is Co u rt reg ul arl y ap pro v es o f b i fu rcat ed

p ro ceed in g s i n wh i ch l i ab i l i t y i s d eci d ed as a m at t er o f l aw o r b y d e f a u l t b efo re

d am ag es are res o l ved at t ri al

. 3 1 Th u s

, t he t ri al co u rt d i d n o t err i n d eci d i n g Cal l away ’ s

l i a b i l i t y wi t h res p ect t o h is p referen t i al t reat m en t wi t h o u t fi rs t ru l i n g o n Lu ci n d a’ s

s et -o ff m o ti o n

.

4

. Fi n al l y

, Cal l away arg u es t h at t h e t ri al co u rt erred in fi n d in g t hat t h e Tru s t d id

n o t h ol d t i tl e t o real p ro p ert y k n o wn as D o wd y Farm u n t il a c o n v e y a n c e o f t h at

3 1 S ee F er di n a n d v. Ci t

y o f E. Po i nt

, 2 8 8 Ga. Ap p

. 1 5 2, 1 5 3 -5 4

, 1 60 (6 5 3 SE2 d

5 2 9 ) (2 0 07 ) (affi rm i n g t h e t ri al co u rt ’ s o rd er g ran t i n g p art i al s u m m ary ju d g m en t as

t o a b reach -o f-co n t ract cl ai m

, bu t rev ers i n g t h e t ri al co u rt ’ s award o f d am ag es an d

rem an di n g f

o r f u rt h er p ro ceed i n g s ); Per f o r m a n ce Mech

. Co

. v. Hea t Tr a n s f er

Co n t ro l

, In c

., 2 4 7 Ga. A p p. 4 36

, 4 3 6 -3 7 (5 4 3 SE2 d 8 0 8 ) (2 0 00 ) (affi rm i n g ju d g m en t

wh en t h e t r i al co u rt g ran t ed p art i al s u m m ary ju d g m en t t o th e pl ai n t i ff, an d t h e

rem ai n i n g i s s u es were s u b m i t t ed t o a ju ry

, wh i ch award ed d am ag es an d fo u n d t h at t h e

d efen d a n t w a s e n t i t l ed t o s et -o ff o f a p o rt i o n o f t ho s e d am ag es ); K-Ma r t Co r p

. v.

Ha cket t

, 2 3 7 Ga. Ap p

. 1 2 7

, 1 2 7 -2 8

, 1 3 4 ( 5 ) ( 5 1 4 SE2 d 8 8 4) (1 9 9 9 ) (affi rm i n g t h e

ju d g m en t i n a to rt act i o n

, wh en l i a b i l i t y was es t ab l i s h ed b y d efau lt ju d g m en t an d a

ju ry t ri al was h el d s o l el y o n t h e i s s u e o f d am ag es ); W hi t l ey v. Gwi n n et t Ct

y

., 2 2 1 Ga.

Ap p

. 1 8

, 1 9 -2 0 (2 ) (4 7 0 SE2 d 7 2 4 ) (1 9 9 6 ) (affi rm in g t h e t ri al co u rt ’ s d eci s i o n to

b i fu rcat e i s s u es o f l i ab i l it y an d d am ag es i n a wro n g fu l d eat h act i o n ).

28p ro p ert y o n M ay 1 2, 2 0 1 7

, b eca u s e an earl ier d eed ex ecu ted i n 2 0 0 7 was v o i d fo r

fai l i n g t o co m

p l y wi t h OCGA § 5 3-1 2 -2 5 (a).

On J an u ary 26

, 2 0 0 7

, Lawren ce co nv ey ed Do wd y F a r m t o t h e “ M arjo ri e

Du rh am Irrev o cab l e Tru s t .” Th ereaft er, t h e Tru st p ai d ex p en s es as own er o f Do wd y

Farm

, i n cl u d i n g t ax es an d l o an i nt eres t

, aft er b o rro wi n g m o n ey fo r t he p u rch as e.

Years l at er, on M ay 1 2

, 2 0 17

, Co d y

, as ad m i n i s t rat or o f Lawren ce’ s es t at e, rev i s ed

t h e d eed t o co n v ey Do wd y Farm t o “ W i ll i am E. Cal l away

, J r., Tru st ee o f t h e M arjo ri e

H. Du rh am Irrev o cab l e T ru s t [,] ” rat h er t h a n th e Tru s t i t s el f. An d i n her m o t i o n fo r

p art i al s u m

m ary ju d g m en t

, Lu ci n d a s o u g h t a ru li n g t h at

, as a m at t er o f law, t h e Tru s t

d i d no t o wn Do wd y Farm u nt i l t h e M ay 1 2, 20 1 7 co n v ey an ce becau s e u n d er OCGA

§ 5 3 -1 2 -2 5 (a) an d o t h er co nt ro l l i n g au t h o ri t y

, th e 2 0 0 7 co n vey an ce di d n o t t ran s fer

l eg al t i t l e t o Cal l away

, as t ru s tee. Th e t ri al co u rt ag reed

, fi n d i n g t h at th e farm d i d n ot

b eco m e t ru s t p ro p ert y

u n t il t h e 2 0 1 7 co n v ey an ce.

OCGA § 53 -1 2 -2 5 (a) pro v id es t h at “ [t ] ran s fer of p ro p ert y i n t ru s t s h al l req u i re

a t ran s fer o f l eg al ti t l e t o t h e t r u s t e e

. ” An d p res u m ab l y

, Co d y co rrect ed t h e d eed

co n vey in g Do wd y Farm i n 2 0 1 7 t o co n vey i t t o C a l l a w a y

, rat h er th an t h e Tru s t

, to

co m p l y wi t h t h i s s t at ut e. In co n s i d eri n g Cal l away ’ s arg u m en t t h at t h e 20 0 7 d eed was

v al i d

, we m

u s t fi rs t co n s i d er w h et h er O CGA § 5 3 -1 2 -2 5 (a) ap p li ed t o th e 2 0 0 7

29co n vey an ce b ecau s e “ [t h at ] p ro v i s i o n d i d n o t g o i n to effect u n t i l J ul y 1

, 2 0 1 0 .” 3 2 Th e

Rev is ed Tru s t Co de o f 2 0 1 0 (“ Rev i s ed Co d e”) ap p l i es t o an y tru s t reg ard l es s o f t h e

d at e i t was creat ed

, “ [e] x cep t t o t h e ex ten t i t w o u l d im p ai r v es t ed ri g h t s an d ex cep t

as o th erwi s e p ro v id ed b y l aw.” 3 3 In Ro s e v. W a l d r i p

, 3 4 we h el d t hat OCGA § 5 3 -1 2 -2 5

(a) d i d n o t ap p l y ret ro act i v el y t o a co n v ey an ce m ad e b efo re i t s effect i v e d at e b ecau s e

t h at s t at u te req u ires a fo rm al t ran s fer o f t ru s t p ro p ert y

, an d t he p ri o r l aw d i d n o t

. 3 5 W e

fu rt her h el d t h at b ecau s e t he rem ai nd er b en efi ci ary ’ s ri g h ts to t ru s t as s et s h ad al read y

v es t ed i n 2 0 0 8 w h en t h e l i fet i m e b en efi ci ary d i ed b efo re t h e Re v i s e d C o d e was

en act ed i n 2 0 1 0

, OCGA § 5 3 -1 2 -2 5 (a) d i d n o t ap p l y ret ro act i v el y to t h e co n v ey an ce

at is s u e. 3 6 Ul t i m at el y

, w e hel d t h at “ b efo re en act m en t o f t h e Rev is ed Co d e, a s et tl o r

3 2 Ro s e v. W

a l d r i p , 3 1 6 Ga. Ap p

. 8 1 2, 8 1 6 (1 ) (b ) (i ) (7 3 0 SE2 d 5 2 9 ) (2 0 1 2 ),

ci t i n g G a. L. 2 0 10 , p . 5 0 6 , § 1

.

3 3 OCGA § 5 3 -1 2 -1 ( b ) ; s ee Ga. Co n s t

. art

. I, § 1

, ¶ X (1 9 83 ) (“ No b i l l o f

a t t a i n d er, ex p o s t fact o l aw, ret ro act i ve l aw, o r l aws i m p ai ri n g t h e o b li g a t i o n o f

co n tract or m ak i n g i rrev o cab l e g ran t of s p eci al pri v i l eg es o r i m m u n i t ies s h al l b e

p as s ed .”).

3 4 3 1 6 Ga. Ap p . 8 1 2.

3 5 S ee Id

. at 8 1 6 (1 ) (b ) (i ).

3 6 S ee id

. at 8 1 7 (1 ) (b ) (i ); s ee W o od r uf f v. Tr

. Co

. o

f Ga

. , 2 33 Ga. 1 3 5, 1 4 1 (2 )

(2 1 0 SE2 d 3 21 ) (1 9 7 4 ) (“ An es t at e i s v es t e d wh e n t h ere i s an i m m ed i at e ri g h t o f

en jo y m en t o r a p res en t fi x ed ri g h t o f fu t u re en jo y m en t .”).

30wh o decl a red a t r u s t n a mi n g hi ms el f a s t r u s t ee was n o t req u i red to s ep a r a t e l y an d

fo rm al l y t ran sfer t h e d es i g n at ed p ro p ert y i n to th e t ru s t .” 3 7 Su b seq u en tl y

, i n Gi b so n

v. Gi bs o n

, 3 8 th e Su prem e Co u rt o f Geo rg i a cl ari fi ed t h at o u r h o l d i n g i n Ro s e ap p li es

o n l y t o s el f-s et t l ed t ru st i n wh i ch t h e s et tl o r i s al s o t h e t ru s t ee. 3 9 Th u s

, b ecau s e t h e

Du rh am Tru st i s n ot a s el f-s et t l ed t ru st

, o u r h o ld i n g i n R o s e t h at a s ep arat e an d fo rm al

t ran s fer o f t h e p ro p ert y

i n t o t h e t ru s t was n o t req ui red i s i nap p l icab l e i n t hi s cas e.

Nev ert h el es s

, as p rev i o u s l y m e n t i o n ed

, t h e G eo rg i a Co n s ti t u t i o n fo rb i d s t h e

ret ro act i v e ap p l i cat i o n o f l aws t h at i n ju re v es ted ri g h t s

. 4 0 Here, li k e t h e b en efi ci ari es

i n Ro s e an d G i b s o n

, Lu ci nd a’ s ri g h t s i n tru s t as s et s v es t ed p ri or t o t he en act m en t o f

t h e Rev i s ed Co d e i n 2 0 10 b ecau s e, u n d er t h e t erm s o f t h e Tru s t

, her ri g h ts t o o k effect

wh en Du rh am d ied i n M ay 2 0 0 9

. 4 1 Un d er s u ch ci rcu m s t an ces

, ap pl y i n g OCGA § 5 3

-

3 7 Ro s e , 3 16 Ga. Ap p . at 8 1 9 (1 ) (b ) (i ) (em ph as i s s u p pl i ed ).

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

3 9 S ee i d

. at 6 3 3 -3 4 (3 ) (c).

4 0 S ee s u p r a at n o te 3 6 & acco m

pan y i n g t ex t

.

4 1 S ee Gi b so n at 6 3 3 -3 4 (3 ) (c). (h o l d i n g t h at th e t ru s t i n s tru m en t al l o wed t h e

b en efi ci ari es t o beg i n m ak i n g wi t h d rawal s im m ed i at el y aft er t h e t ran s fer o f p ro p ert y

, wh i ch m ean t ap p l icat i o n o f t h e Rev i s ed Co d e co u l d i m pai r t h e b en efi ci ary ’ s ri g ht s

,

an d ci t i n g Ro s e ’ s h o l d in g th at a rem ai n d er b en efi ci ary ’ s ri gh t s i n a t ru st h ad al read y

v es t ed b efo re t h e Rev i sed Co d e was en act ed in 20 1 0 b ecau s e, u n der t h e t ru s t ’ s t erm s

, h er ri gh t s t o t ru s t as s et s t o o k effect u p o n s et t lo r’ s d eat h i n 2 0 0 8).

311 2 -2 5 (a) ret ro act i v el y c oul d i m p erm i s s i b l y affect Lu ci n d a’ s ves t ed ri g h ts

. 4 2 Th u s

, we

m u st det erm i n e wh et her, at t h e t i m e of t h e 2 0 0 7 t ran s fer, “ t h e l aw req u i red t h at t h e

as s et s b e fo rm al l y t ran sferred t o t h e t ru s tee.” 4 3 A n d ap p l y i n g th e an al y si s in Gi b s o n

,

wh i ch i s an al o go u s t o t h i s cas e, we co n cl u d e t h at i t d i d

. 4 4 In d eed , t he Tru s t Co d e i n

2 0 0 7 defi n ed a “ t ru st ee” as “ th e p ers o n h o l d i n g l eg al t it l e to t h e p ro p ert y i n t ru s t .” 4 5

Th i s s t at ut o ry d efi n i t i o n al s o p ro v i d es t h at “ th e t ru s t e e m u s t h o l d l eg al t i t l e t o t h e

as s et s i n q u es t i on fo r t hem t o b e co n s i d ered i n tru s t .” 4 6 Th u s

, reg ard l es s o f t h e

req u i rem en t s i n t h e Rev i s ed Co d e, t h e ap p l i cab l e law in 2 0 0 7 req ui red t h at l eg al t i t l e

t o Do wd y Farm b e co n v ey ed t o Cal l away

, as t r u s t e e o f t h e D u rh am Tru s t

, fo r i t to

b eco m e t ru s t p ro p ert y

. Un d er t h es e ci rcu m s t an ces

, t h e t ri al co u rt co rrect ly co n cl u d ed

4 2 S ee i d

. (h o l d i n g t h at

, b ecau s e t h e t r ust instr um e nt he r e a ll owed t h e b en efi ci ary

t o b eg i n m ak i n g wi th d rawal s i m m e d i at el y [aft er t h e pre-2 01 0 co nv ey an ce]

,

ap p li cat io n o f t h e Rev i s ed Co d e t o i n v al i dat e a p urp o rt ed t ran s fer t o t h e t ru s t co u ld

i m p ai r h er v es t ed ri gh t s ).

4 3 Id

. at 63 4 (3 ) (c).

4 4 S e e i d

. (co n cl u d i n g th at

, at l eas t i n t h e cas e o f a s et t l o r wh o d id n o t n am e

h i m s el f as a t ru s t ee, t he l aw at t h e t i m e o f t h e M ay 20 1 0 co n v ey an ce, w h i ch occu rred

b efo re t h e en act m en t o f t h e R e v i s e d C o de l at er t h at y ear, req ui red t h at p ro p ert y b e

fo rm al l y t ran s ferred t o t h e t ru s t ee t o b eco m e a t ru st as s et ).

4 5 Fo rm er OCGA § 5 3 -1 2 -2 (1 1 ) (2 0 0 7). W e n o t e t h at t h i s st at u t e was carri ed

o v er wi t h a s li gh t rev i si o n t o t h e n ew Tru s t Co d e at OCGA § 5 3 -1 2 -2 (1 6).

4 6 Gi b s o n

, 3 0 1 Ga. at 6 3 4 ( 3 ) (c).

32t h at t he farm d id no t beco m e t ru s t p ro p ert y u n ti l t h e 2 0 1 7 deed s at i s fi ed t h at

req u i rem en t

. 4 7

Fi n al l y

, we ack n o w l ed g e t h at t h e t ri al co u rt i m p ro p erl y fo un d t h at OCGA § 5 3

-

1 2 -2 5 (a) ap p l i ed ret ro act i v el y t o t h e 2 00 7 co n v ey an ce o f Do wd y Farm

. Bu t a g ran t

o f s u m m ary ju dg m en t m

u s t b e affi rm ed i f “ i t i s ri g h t fo r an y reas o n , wh et h er s t at ed

o r u n s t at ed i n th e tri al co u rt ’ s o rd er, s o lo n g as t h e m o v an t rai s ed th e i s s u e in t h e t ri al

co u rt an d t h e n o n m o v an t h ad a fai r o p p ort u n i t y t o res p o n d.” 4 8 An d h ere, al t h o u g h

Lu ci n d a i n i t ial l y arg ued i n h er m o t i o n fo r p a r t i a l s u m m ary ju d g m en t o n l y t h at t h e

2 0 0 7 d eed was vo id b ecau s e OCGA § 5 3-1 2 -2 5 (a) ap pl i ed

, s h e at t ach ed th e Gi b so n

4 7 Aft er d is cu s s i n g t h e ap p l i cat io n o f Ro se an d Gi b s o n t o t h is cas e, Cal l away

s u m m ari ly s t at es t h at “ [i ] n an y ev en t, h av i n g ex erci s ed o p en n o t o ri o u s

, ex cl u s i v e[,]

an d co n ti n u o u s g o o d fai th p o s s es s i o n o f t h e Do w d y Farm u n d er co l or o f t i t l e b y t h e

W arran t y Deed fo r a p eri o d o f s e v e n y ears

, b y J an uary o f 2 01 4

, t h e Tru s t h ad

acq u ired t i t l e t h eret o by p res cri p t i o n u n d er [OCGA] § 4 4-5 -1 6 4.” Bu t as wi t h s ev eral

o f h i s p ri o r co n t en t i o n s, Cal l away h as ab an d o n e d a n y a r gu m en t b as ed o n OCGA §

4 4 -5 -1 6 4 b ecau se h e fai l s t o ci t e t o an y ev i d en ce i n th e v o l u m i n ou s reco rd

, p ro v i d e

an y fact u al d et ai l s t o s u p p o rt t h i s al l eg at i o n

, o r m ak e an y m ean i n g fu l arg u m e n t s to

s u p p ort i t

. T h u s

, we d ecl i n e to ad d res s t h e ap p li cat i o n o f OCGA § 4 4 -5 -1 6 4 t o t h e

fact s o f t h is cas e. S

ee s u pr a n o t e 8 & acco m

p an y in g t e x t ; S i r da h v. N. S p r i ng s

As s o cs

. , LLLP

, 3 0 4 Ga. Ap p

. 34 8

, 3 5 2 (2 ) (6 9 6 SE2 d 3 91 ) (2 0 1 0 ) (“ Pu rs u an t t o Co u rt

o f Ap p ea l s R u l e 2 5 (a) (3 ), an ap p el l an t m u s t s u p p o rt en u m erat i o n s o f erro r wi th

arg u m en t an d ci t at i on s o f au t h ori t y

, an d m ere co ncl u s ory s tat em en t s are n o t t h e t y p e

o f m ean in g fu l arg um en t co n t em p l at ed b y Ru l e 2 5 (a) (3 ).” (p u n ct u at i o n o m i t t ed )).

4 8 Geo r g i a -Pa c., LLC v. Fi el d

s

, 2 9 3 Ga. 4 9 9 , 5 0 4 (2 ) (7 4 8 SE2 d 4 0 7 ) (2 0 1 3 )

(em p h as i s o m it t ed ).

33o p i n i o n

, i n i t s e n t i ret y

, t o h er m o t i o n

, an d i m p o rt an t ly

, b o t h p art i es ad dres s ed t h e

i s su es rai s ed i n G i b so n i n s u b s eq u en t res p o n s i v e fi li ng s

. Un der s u ch ci rcu m s t an ces

,

we fi n d t h at t h e i s s ues ad d res s ed i n Gi b s o n

, an d rel i ed o n herei n, were s u ffi ci en t l y

rai s ed b efo re t h e t ri al co u rt

. Th u s

, we m ay affi rm t h e tri al co u rt ’ s fi n d in g s becau s e i t

was co rrect u n d er Gi b so n

, ev en t h ou g h i t s b as is fo r t h i s ru li ng was i n erro r. 4 9

Fo r al l th es e reas o ns

, we affi rm t h e t ri al co urt ’ s gran t o f p a rt i al s u m m ary

ju d g m en t t o Lu ci nd a.

Ju d g men t a f f i r m ed . Go b ei l

a n d Ho d g es , JJ., co n cu r

.

4 9 S ee s u p r a n o t e 4 8 & acco m

p an y i ng t ex t

.

34