SECOND DI VI SI ON

DOYLE, C. J.

, M I LLER, P. J.

, and REESE, J.

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

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

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

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

M ay 9, 2017



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A1 7 A0 51 9 . LEE et al . v . PARK.

R E E S E

, J u d g e.

Keu m So o n Lee a n d h er at t o rn ey

, Ken n o n Peeb les

, J r. (co l l ect i vel y

, “ Lee”),

ap p eal fro m t h e tri al co u rt ’ s o rd er di rect i ng t h em to p ay $ 9

, 5 7 0 i n at t o rn ey fees t o Ai

So o k Park

. 1 Lee co n t en d s t h a t t h e co u rt ab u s ed i t s d is cret i o n i n fi n d i n g t h at h er

cl ai m s l ack ed s u b s t a n t i a l ju s t i fi cat i o n an d

, b as ed up o n t hat fi n d in g

, award i n g Park

at t o rn ey fees u n d er OCGA § 9-1 5 -1 4 (b ). Fo r t h e reas o n s t h at fo ll o w

, i n fra, we ag ree

an d rev ers e.

Th e reco rd s h o ws t hat

, i n J u n e 2 0 1 2, Lee an d So k Su n Y u n bo u g h t an ex i s t i n g

At l an t a b u s i n e s s kn o wn as “ Sp ri n g Sp a.” Al t h o u gh Lee an d Yu n h ad no fo rm al

ag reem en t

, t h ey o p erat ed t h e b u s i n es s as an eq u al p art n ers h i p

, sh ari n g m an ag em en t

1 Th i s Co urt g ran t ed Lee’ s ap p l i cat io n fo r d i s cret i o n ary rev iew.res p o n s i b i l i t i e s

. In Feb ru ary 2 0 1 3

, t h ey

ex ecu t ed a fo u r-y ear l eas e fo r t he p rem i s es

t h at l i st ed t h e t en an t as “ Sp ri ng Sp a, L.L.C.” T he l eas e was s i g n ed b y th e “ t en an t s ,”

Yu n an d An t h o n y Paru m al

, wh o was Lee’ s b o y fri en d ; Paru m al al s o i n i t i al ed each

p ag e o f t h e l eas e. On M ay 3 0

, 2 0 1 3

, h o wev er, Yu n s ol d 1 0 0 p ercen t o f t h e o wn ers h ip

o f t h e b us i n es s t o Park fo r $ 55 ,0 0 0, wi t h o u t Lee’ s k n o wl ed g e or co n s en t

. Park

i m m ed i at el y t o o k p o s s es s i o n o f t h e p rem i ses

.

A few day s l at er, Lee l earn ed ab o u t t h e s al e an d co n t act ed Park t o in fo rm h er

o f h er (Lee’ s ) own ers h i p i n t eres t i n t h e s p a. A cco rd i ng to Paru m al

, Park t o l d t h em

t h at

, o n t h e d ay s h e p u rch as ed t h e s p a, s h e h ad h eard t h at Yu n h ad a p a r t n e r i n t h e

b u s i n es s , b u t wh en s h e as k ed Yu n ab o ut i t , Yu n res p on d ed , “ Oh

, I wi l l t ak e care o f

i t

. ”

In Au g u st 2 0 14

, Lee fi led s u i t ag ai n s t Yu n an d Park

. Ag ai n s t Yu n

, s he as s ert ed

c l ai m s fo r b reach o f co n t ract

, frau d

, an d co n v ers i o n. Sh e al so s ou g h t a d ecl arat o ry

ju d g m en t t hat Park ’ s p u rch as e o f t h e b us i n es s was v oi d an d a p erm an en t i nju n ct i o n

b arri ng Park fro m t h e p rem i s es

. In ad d i t i o n

, s he as s ert ed a cl ai m fo r u n ju s t

en ri ch m en t ag ai ns t Park

, s eek i n g rei m b u rs em en t fo r ren t an d i n s u ran ce p ay m en t s fo r

t h e b u s i n es s t h at s he h ad m ad e aft er t h e s al e, wh i l e s h e was s t i l l as s ert i n g h e r

o wn ers hi p i n t eres t i n t h e s p a.

2Du ri n g a b en ch t ri al

, Yu n t es t i fi ed t h at t h e fi rs t t i m e s h e m et o r s p ok e wi t h Park

a b o u t s el l i n g t h e b us i n es s was o n t h e d ay t h e s al e co n tract s were ex ecu t ed an d t h e

s al e was cl o s ed

, May 3 0

, 2 0 1 3

. Acco rd i n g t o Yu n

, Lee n ev er h a d a n o wn ers h ip

i n t eres t i n t h e s p a, s o Yu n di d n ot t el l Park t h at L ee was a p art -o wn er o f t h e b u s i n es s

.

Yu n al s o t es ti fi ed t h at sh e cal l ed t h e b u si nes s ’ l an dl o rd o n t h e d ay o f t h e sal e t o t el l

h i m t h at Park wa s p u rch as i n g t h e s p a an d w o u l d b e as s u m i n g t h e leas e fo r t h e

p rem i s es

. Th e l an d l o rd was o u t o f t o wn

, h o w ev er, an d h e t o l d Y u n t h a t h e wo u ld

ad d res s t h e i s s u e wh en h e ret u rn ed t o At l an t a. 2

Park t es t i fi ed t h at s he h ad wan t ed t o p u rch as e a s p a i n At lan t a an d t h at a fri en d

t o l d h e r ab o u t Yu n ’ s b u s in es s

. Acco rd i ng t o Park

, Yu n red u ced t h e i n it i al as k i n g

p ri ce fo r t h e s p a b ecau s e Yu n w an ted t o h av e a “ q u i ck sal e.” Park ad m i t ted t h at s h e

fi rs t m e t Y u n

, s i g n ed t h e s al es co n t ract

, an d cl os ed on th e p urch as e o f t h e s p a i n a

s i ng l e d ay

, M ay 3 0

, 2 01 3

. W h en q u es t i o n ed ab o u t t h e l eas e, wh i c h co n t ai n ed t h e

s i gn at u res o f t wo ten an t s – Yu n an d Paru m al

– Park fi rs t t es t i fi ed t h at s he d i d n o t s ee

Paru m al ’ s s i g n at ure, ad d i n g t h at i f s h e h ad s een h i s s i g n at u re, t h en s h e wo u l d n ot

2 Th e reco rd s h o w s t h at t h e l an d l o rd n ev er ap p ro v ed a ch an g e t o t h e l eas e to

n am e Park as t h e t en an t

, n o r d i d Park ex ecu t e a n ew l eas e. Acco rd i n g t o t h e l an d l o rd

, h e had fo rg o t t en ab o u t t h e is s u e b y t he t i m e h e ret u rn ed t o A t l an t a, an d n o o n e

co n tact ed h i m ab o u t ch an g i n g t h e l eas e, s o he b el i ev ed t h at t h e s i t u at i on h ad ret u rn ed

t o t he s t at u s q u o

.

3h av e p u rch as ed t h e b u si n es s

. Aft er h er co u n sel s h o wed h er t h e l eas e, h o w e v er, s h e

ad m i t t ed t h at s he h ad s een t h e s i g n at u re, b u t as s u m ed t hat Paru m al was a l an d l o rd an d

i g n o red h i s s i g n at u re. Sh e ex p l ai n ed t hat t he fi rs t p ag e o f t h e l eas e i d en t i fi ed t h e

t en an t as “ Sp ri n g Sp a” an d t h at

, b ecau s e s h e was b u y i n g t h e bu s i nes s fro m a Ko rean

p ers o n (Yu n ), s h e o n l y p ai d at t en ti o n t o th e Ko rean n am es o n t h e co n t ract

. Park al s o

ad m i t t ed t h at s h e d i d n o t i n v e s t i g at e t o s ee i f t h e b u s i n es s h ad an y o u t s t an d i n g

ex p en s es o r tax es d u e p ri o r t o b u y in g t h e s p a. An d

, al t h ou g h sh e was p u rch as i n g an

es t ab l i s h ed b u si n es s

, Park p res en t ed n o ev ide nc e th at s h e as ked to s ee Y u n ’ s p u rch as e

ag reem en t t o en s u re th at Yu n w a s t h e s p a’ s s o le o w n er, t h at s h e i n q u i red ab o u t t h e

b u s i n es s ’ i n co m e an d ex p en s e h i s t ory

, or t h at s h e as k ed to rev i ew t h e b us i n es s ’ p as t

ch eck i n g acco un t s t at em en t s o r acco u n t i n g reco rd s

.

Reg ard i n g Lee’ s u n

ju s t en ri ch m en t cl ai m s eek i n g rei m b u rs em en t fo r ren t an d

i n s u ran ce p ay m en t s s h e had m ad e aft er Park p urch as ed t h e b u si n es s

, Park as s ert ed fo r

t h e fi rs t t i m e at t ri al 3 t h at s h e had p ai d bu s i n es s ex pen s es t h at h ad b een i n cu rred p ri o r

t o h er p u r c h a s e o f t h e s p a. Acco rd i n g to Park

, t h es e ex p en s es i n cl u d ed $ 5 ,8 8 0 in

3 Th e reco rd s h o w s t h at Park d i d n o t as s ert a s et -o ff d efen se in h er an s wer, d id

n o t fi l e a co u n t ercl ai m fo r h er p ay m en t o f t he ex p en s es

, an d d id n ot rai se t h e i s s u e o f

s et -o ff o r cl ai m an y d am ag e s i n t h e p re-t ri al o rd er. In fact

, d uri n g t h e h eari n g

, t h e

co u rt s p eci fi cal l y as k ed Park ’ s co u n s e l w h et h er h e was as s ert i n g a co u n t ercl ai m

ag ai n s t Lee, an d h e rep l i ed t h at h e was n o t.

4p ro p ert y t ax es

, “ ab ou t m ay be $ 2 ,0 0 0 ” fo r t h e w at er b i l l

, $ 5 2 0 fo r tel ep h o n e s erv i ce,

$ 6 0 0 fo r g as an d el ec t r i c i t y, $ 5 00 fo r l an d s cap i n g, an d “ a l i t t l e o v er $ 2 ,0 0 0 ” in

p ay ro l l t ax es

. 4

Th e t ri al co u rt s u b seq uen t l y en t e red j u d gm en t i n fav or o f L ee o n h er cl ai m s

ag ai n s t Yu n b as ed u p o n i t s co n cl u si o n th at Lee h ad a 5 0 p ercen t o wn ers h i p i n t eres t

i n t h e s p a, an d i t award ed h er b o t h d am ag es an d at t o rn ey fees

. W i t h res p ect t o Lee’ s

cl ai m s ag ai n s t Park

, ho wev er, th e co u rt ru l ed t h at Park was a b o n a fi d e p u rch as er fo r

v al u e wh o “ di d no t h av e an y reas o n t o s u s p ect t h at [Lee] o r an y o n e el s e cl ai m ed an

i n t eres t i n t h e Sp ri n g Sp a at t h e t i m e s h e p u rch as ed t he b u s i n es s .” Th e co u rt fu rt h er

ru l ed t h at Park ’ s p u rch as e o f t h e s p a was v al i d an d b in d i n g

. Fi n al l y

, o n Lee’ s u n ju s t

en ri ch m en t cl ai m s

, t h e co u rt ru l ed t h at t h e ren t an d i n s u ran ce p ay m en t s t h at L ee m ad e

aft er t h e s al e were v ol un t ari l y pa i d a f t e r s h e h ad n o ti ce o f h er p o t en t i al cl ai m s an d

t h at Lee’ s p ay m en t s were “ p ro perl y s et o ff ag ai n s t p ay m en t s m ad e b y Defen d an t Park

fo r d eb t s o w ed b y

t h e b u s i n es s p ri o r t o Park p u rch as in g i t .”

4 Al t h o u g h t h e reco rd s h o ws t h at t h e t o t al o f t h es e p ay m en t s eq u al s $ 1 1 ,6 0 0,

t h e t o t al i s act u al l y $ 1 1

, 5 0 0

. No t ab l y

, o n l y th e am o u n t o f t h e p ro p ert y t ax p ay m en t

was s u p p o rt ed b y an y d o cu m en t ary ev i d en ce. Park ’ s t es t i m o n y as t o t h e am o u n t s s h e

p ai d o n t h e rem ai n i n g b i l l s ap p ears t o b e h er ap pro x i m at i o ns

.

5Fo l l owi n g en t r y o f t h e ju d g m en t, Park fi led a m o t i o n fo r at t o rn ey fees u n d er

OCGA § 9 -1 5 -1 4. Th e co u rt g ran t ed t h e m o t i o n, ru l i ng t h at Park was en t i t l ed t o fees

u n d er OCGA § 9 -1 5 -1 4 (b ) b ecau s e Lee’ s cl ai m s ag ai ns t h er “ l ack ed s u b s t an t i al

ju s t ifi cat i o n i n t h at t h ey were ‘ s u b s t an t i al l y fri vo l o u s

, s u b s t an ti al l y g ro u n d l es s

, an d

s u b s t an t i al l y v ex at i ou s

. ’ ” Th e co u rt fo u n d t h at “ [n ] o cred i b l e ev i d en ce was p res en t ed

t h at wo u l d i n di cat e D efen dan t Park was p laced o n n ot i ce o f Lee’ s cl ai m of o wn ers h ip

o r t h at Park fai l ed t o ex erci s e d u e d i l i g en ce reg ard i n g o wn ers h i p o f t h e b u s i n es s p ri o r

t o pu rch as i n g Sp ri n g Sp a.” In ad d i t i o n

, t h e co u rt rei terat ed i t s p rev io u s fi n d i n g t h at

Lee’ s p o s t -s al e p ay m en t s o n b e h a lf o f t h e b u s in es s w ere pro p erl y s et -o ff b y Park ’ s

pa y m e n t of the bu s i n es s ’ p re-s al e d eb t s. Acco rd in g l y

, t h e co u rt award ed Park at t or ne y

fees i n t he am o u n t o f $ 9 ,5 7 0, jo i n t l y an d s ev eral l y ag ai n st Lee an d h er t ri al co u n s el

.

Th i s ap p eal fo l l o wed

.

OCGA § 9 -1 5 -1 4 (b ) g i v es a t ri al co u rt t h e di s cret i on t o award at t o rn ey fees in

s ev eral ci rcu m s t an ces

, i n cl u d i n g wh ere “ an at t o rn ey o r p art y b ro u g h t o r d efen d ed an

act i on

, o r an y p art t h ereo f, t h at l ack ed s u bs t an t i al ju s t i fi cat i o n [.] ” “ [L] ack ed

s u b s t an t i al ju s t i fi cat io n m e a n s s u b s t an t i al l y fri vo l o u s

, s u bs t an t i al l y gro u n d l es s

, o r

s u b s t an t i al l y v ex at i o u s.” 5 W e rev i ew a t ri al co u rt ’ s award o f at t o rn ey fees u n d er

5 OCGA § 9 -1 5 -1 4 (b ).

6OCGA § 9 -1 5

- 1 4 ( b ) fo r an ab u s e o f di s cret io n

. 6 W i t h t hes e g u id i ng p ri n ci p l es in

m i n d , we t urn n o w t o Lee’ s s p eci fi c cl ai m s o f erro r.

1

. Lee arg u es t hat t h e t ri al co u rt ab u s ed i t s d i s cret i on in award i n g Park at t o rn ey

fees b as ed u p o n a fi n d i n g t h a t h er eq u i t ab le cl ai m s ag ai n s t Park l ack ed s u b s t an t i al

ju s t ifi cat i o n

. W i t h res p ect t o t he cl ai m s fo r a de c l a r at o ry ju d g m en t an d i n ju n ct i v e

rel i ef, Lee m ai n t ai n s t hat s h e p res en t ed ev i d en ce t h at creat ed a l eg it i m at e f act u al

d i s p u t e as t o wh et h er Park w as a b o na fi de p u rch as er fo r v al u e. W e ag ree.

A b o n a fi d e p u rch as er fo r v al u e i s p ro t ect ed ag ai n s t o ut s t an d i n g i nt eres t s i n a

p u rch as ed p ro pert y o f wh i ch he o r s h e h ad n o n o t i ce. 7 “ To q ual i fy as a b o n a fi d e

p u rch as er fo r v al u e wi t h o ut n ot i ce, a p art y m u s t h av e n ei th er act u al n o r co n s t ru ct i v e

n o t i c e o f t h e m at t er at i s s u e.” 8 “ No t i ce s uffi ci en t t o ex ci t e at ten t i o n an d p ut a p art y

6 DeKa l b Co u n t

y v. Ad a m s , 2 6 3 Ga. Ap p . 2 0 1, 2 0 3 (5 8 7 SE2 d 3 02 ) (2 0 0 3 ).

7 See OCGA § § 2 3 -1 -1 9 (“ If o n e wi th n o t i ce s el l s t o o n e wi t h o u t n ot i ce, t h e

l at t er s h al l b e p ro tect ed .”); 23 -1 -2 0 (“ A b o n a fi d e p u rch as er fo r v al u e wi t h ou t n o t i ce

o f an eq u i t y wi l l no t b e i n t erfered wi t h b y eq u i t y .”); 2 3 -2 -3 4 (“ E q u i ty wi l l g ran t rel i ef

as b et w een t h e o ri g i n al p art i es or t h ei r p ri v i es i n l aw, i n fact

, or i n es t at e, ex cep t b o n a

fi de p urch as ers fo r val u e wi th o u t n o t i ce.”); s ee al s o Mo n tg omer y v. Ba rr o w

, 2 8 6 Ga.

8 9 6 , 8 9 7 (1 ) (6 9 2 SE2 d 3 51 ) (2 0 1 0 ).

8 Vi r g i n i a Hi gh l a n d Ci vi c As s n

. v. Pa ces Pr o per t i es

, 2 5 0 Ga. Ap p

. 7 2

, 7 4 (5 5 0

SE2 d 1 2 8) (2 0 0 1) (fo ot n o t e o m i t t ed ). Acco rd Ro la n v. Gl a s s

, 3 0 5 G a. Ap p

. 2 1 7

, 2 1 8

(1 ) (6 99 SE2 d 4 28 ) (2 0 1 0 ).

7o n i nq u iry s h al l b e n o t i ce of ev ery t h in g t o wh ich i t i s aft erward s fo un d t h at s u ch

i n q u i ry m i gh t h av e l ed

. Ig n o ran ce o f a fact d u e t o n eg l i gen ce s h al l b e eq u i v al en t t o

k n o wl ed ge i n fi x i n g th e ri g h t s o f p art i es

. ” 9 W h et h er t he ci rcu m s t an ces were su ffi ci en t

t o p u t a p art y o n no t i ce o f a n al l eg ed frau d u l en t tran s fer an d t h e o p p o s i n g p art y ’ s

i n t eres t i n t h e p ro p ert y at is s u e i s a q u es t i o n of fact t o b e d et erm i n ed b y t h e t ri er o f

fact

. 1 0 An d an award o f at t o rn ey fees u n d er OCGA § 9-1 5 -1 4 ( b ) i s n o t warran t ed

wh ere t he cl ai m a t i s su e i s d ep en d en t u p o n t h e res ol u t i o n o f a fact u al o r l eg al

d i s p u t e. 1 1

9 W h i t en v. Mu rr a

y

, 2 6 7 Ga. Ap p

. 4 1 7, 4 2 1 (2 ) (5 9 9 SE2 d 3 4 6 ) (2 0 04 ) (ci t at i o n

an d p un ct u at i o n o m i tt ed ). See M o n t g o m er y

, 2 8 6 Ga. at 89 7 (1 ) (h o l di n g t h at “ an y

ci rcu m s t an c e w h i c h w o ul d p l ace a m an o f o rd i n ary pru d en ce fu l l y u p o n h is g u ard

,

an d i n du ce s eri o u s i nq u i ry

, i s s u ffi ci en t t o c o n s t i t u te n o ti ce o f a p ri o r u n reco rd ed

d eed

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

1 0 R. W

. H o ld co

, In c. v. S CI/

RW H ol d co

, In c.

, 25 0 Ga. Ap p. 4 14

, 41 5 (1 ) (5 5 1

SE2 d 8 2 5) (2 0 0 1).

1 1 See Br o wn v. Ga d

s o n

, 2 9 8 Ga. Ap p

. 6 6 0

, 6 6 1-6 6 2 (6 8 0 SE2 d 6 82 ) (2 0 0 9 );

DeKa l b Co u n t

y

, 2 6 3 Ga. Ap p

. at 2 0 3 -2 0 4 ; see al so Exec. Excel l en ce v. Ma r t i n Br o s

. In ves t men t

s

, 3 0 9 Ga. Ap p

. 2 7 9

, 2 8 6 -2 8 8 ( 2 ) ( 7 1 0 SE2 d 1 6 9 ) (2 0 1 1 ) (award o f

at t o rn ey fees u n d er OCGA § 9-1 5 -1 4 was n o t au t h o ri zed b ecau se t he p l ai nt i ffs m ad e

an ev i d en t i ary s h o wi n g wh i ch

, i f accep ted b y t h e fact fi n d er, wo u l d h av e au t h o ri zed

a ju d g m en t i n th ei r fav o r); s ee g en eral l y Ma r i no v. Cl a r y La kes Ho m eo wn er

s As sn

. , 3 3 1 Ga. Ap p

. 2 0 4, 2 1 1 (3 ) (7 7 0 SE2 d 28 9 ) (2 0 1 5) (wh en g en u i n e i s s u e s o f fact

rem ai n t h at p recl u d e s u m m ary ju d g m en t

, a n a w a rd o f at t orn ey fees u n d er OCGA §

9 -1 5 -1 4 (b ) i s n o t warran t ed ex cep t i n u n u s u al cas es ).

8To s u p p o r t her arg u m en t t h at t h ere was a l eg i t i m at e fact u al d i s p u t e as to

wh et h er Park was a bo n a fi d e p u rch as er fo r v a l u e, Lee p o i n ts t o t he ev i d en ce s h e

p res en t ed at t ri al (s h o wn ab o ve) an d t o Park ’ s in t erro gat o ry res p on s es

, wh i ch s u p p o rt

a fi n d i n g t h at Park fai l ed t o co n d u ct an y i n v es t i gat i on to co n fi rm t h e o w n ers h i p o f t h e

b u s i n es s o r p erfo rm o t h er d u e d i l i g en ce b efo re p u rch as i n g t he b u si nes s

. Fo r ex am p l e,

i n her i n t erro g at ory res po n s es

, Park co n ced ed t h at s he d i d n ot m eet Y un u n t il t h e d ay

s h e pu rch as ed th e bu s i n es s

, s h e n ev er h ad co n tact w it h t h e l an d l o rd befo re at t em p t i n g

t o as s u m e t h e l eas e t h e s am e d ay

, an d s h e n ev er co n s u l t ed an at t orn ey o r real es t at e

ag en t p ri o r t o o r d u ri n g t h e cl o s i n g

. 1 2

Fu rt her, t he ev i den ce at tri al s h o w ed th at Park h ad t h e o p p o rt u n i t y t o read t h e

l eas e ag reem en t t h at sh e was g o i n g t o b e as s u m in g

. It i s u n d i s p u t ed t h at t h e l eas e was

i n i t i al ed an d s i gn ed b y Paru m al

, an d Park s p eci fi cal l y t es t i fi ed t h at s h e s aw h i s

s i gn at u re b u t d i s reg ard ed i t

, in s t ead o f s i m p ly as k i n g wh o Paru m al was an d wh y h e

h ad si g n ed t h e l eas e. Paru m al ’ s s i g nat u re on t h e l eas e s u p p ort s a fi n d i ng th at Park h ad

at l eas t co n s tru ct i ve n o t i ce t h at s o m eo n e el s e h ad an i nt eres t i n t h e b u s i n es s, an d h er

1 2 In fact

, Park ad m i t t ed t h at t h e h an dwri tt en s al es co n t ract ex ecu t ed b y t h e

p art i es was b as ed u p o n a g en eri c s al es co n t ract o b t a i n ed by h er b o y fri en d fro m t h e

In t ern et

, wh i ch h e t h en t ran s cri b ed i n to t h e Ko rean l an g uag e.

9fai l u re t o i n q u i re ab o u t i t i s s u ffi ci en t to c r e a t e a n i s s u e of fact as t o wh et h er Park

ex erci s ed d u e d i l i g en ce p ri or t o t h e p u rch as e. 1 3

In an effo rt t o s h o w t h at s h e ex erci s ed d u e d i li g en ce p ri o r t o t h e pu rch as e, Park

co n ten d ed t h at Yu n an d t wo o t h ers p res en t at t h e cl os i n g i n d i cat ed t o h er t h at Yu n

w a s th e s o l e o w n er o f t he b u s i n es s

. Paru m al t es ti fi ed

, h o wev er, th at Park t o l d h i m

s h o rt l y aft er t h e s al e th at

, o n t h e d ay o f t h e cl o s i n g

, s h e l earn ed t h at Y u n h ad a p art n er

i n t h e b u s i n es s

, bu t wh en s h e as k ed Yu n ab o u t i t

, Yu n t ol d Park t h at s h e wo u l d t ak e

care o f i t

. Th i s co n fl i ct i n g ev i d en ce pres en t ed an i s s u e o f fact reg ard in g Park ’ s

co n st ru ct i v e n ot i ce t h at h ad t o b e res o l v ed at t ri al

.

Park al s o ap p aren tl y rel ies on t h e fact t h at Yu n ’ s n am e w as t h e o nl y o n e o n t h e

b u s i n es s ch eck i ng acco un t fo r h er co n cl us i o n t h at Yu n w as t h e s o l e o wn er o f t h e

b u s i n es s . A fact fi nd er co u l d h av e co n cl u d ed t hat s u ch rel i an ce d em o n s t rat ed a l ack

o f d u e d il i g en ce, h o wev er, g i ven t h e ab s en ce o f an y ev i d en ce th at Park rev i ewed p as t

b an k st at em en t s

, i n co m e an d ex p en s e r e p ort s

, o r o t her acco u n ti n g reco rd s o f t h e

o n g o i n g b u s i n es s en terp ri s e t h at s h e was p u rch as i ng an d was i nt en d in g t o co n t i n u e

o p erat i n g u n d er t h e s am e n am e.

1 3 See fo o t n o tes 9 an d 1 0, s u p ra, reg ard i n g co n s t ru ct i v e n o t i ce an d d u e

d i l i g en ce.

10Fi n al l y

, al t h o u g h Park t es t i fi ed t h at s h e ch eck ed t h e Ge org i a Secret ary o f

St at e’ s reco rd s f

o r t h e co rp o rat i o n

, s h e lat er ad m i t t ed t h at s he d i d s o a ft er s h e h ad

p u r c h a s e d t h e bu s in es s

. M o reo v er, t h ere i s n o ev i d en ce t h at s h e co n t act ed t h e

reg i s tered ag en t fo r t h e co rp o ra t i o n

, w h o i s i d en t ifi ed as “ Ken ny S. K. Lee,” to

co n fi rm t h e o wn ers h i p o f t h e b u s i n es s

.

Th u s

, t h e ev i d en ce p res en t ed s ev eral g en u in el y di s p u t ed fact u al i s s u es t h at h ad

t o be res o l v ed b efo re t h e co urt co ul d d et erm i n e wh et h er Park w a s a b o n a fi d e

p u rch as er fo r v al u e. T h e fact t h at t h e t ri al co u rt u l t im at el y ru l ed i n fav o r o f Park o n

t h at d i s p u t e d i s s u e d o es no t m an d at e a fi n d in g t h at Lee’ s eq u i t ab l e cl ai m s were

s u b s t an t i al l y

fri v o l o u s , g ro u n d l es s , o r v ex at i ou s

. 1 4

As p rev i o u s l y s t at e d

, a c o u rt i s n o t au t ho ri zed t o award at t o rn ey fees u n d er

OCGA § 9

- 1 5

- 1 4 (b ) wh ere a ru li n g o n t he cl ai m at i s s u e i s d ep en d en t u p o n t h e

1 4 See Ca mp b el l v. Th e La n d i n g s As sn

. , 3 11 Ga. Ap p. 4 7 6

, 4 8 3 (6 ) (7 1 6 SE2 d

5 4 3 ) (2 0 1 1 ) (“ A p rev ai l i ng part y i s n o t p erfo rce en t i t l ed t o an award o f at to rn ey fees ”

u n d er OCGA § 9 -1 5 -1 4 (b ).) (p u n ct u at i on an d fo o tn o te o m i t t ed ); s ee al s o Res ci g n o

v. Ves a l i

, 3 0 6 Ga. Ap p

. 6 1 0

, 6 1 6 (4 ) (7 0 3 SE2 d 6 5 ) (2 0 1 0 ) (fi n d i n g t h at t h e t ri al co u rt

d i d n o t ab u s e i t s d i s cret i o n i n d en y i n g t h e defen d an t an award of at t o rn ey fees u n d er

OCGA § 9 -1 5 -1 4 (b ), b ecau s e th ere w as so m e ev id en ce t o s u p p o rt t h e p l ai n t iff’ s cas e,

ev en t h o u g h t h e j u ry u l t i m at el y fo u n d i n fav o r o f t h e d efen d an t ); s ee g en eral l y Br o wn

v. Ki n s er

, 2 1 8 Ga. Ap p

. 3 8 5

, 3 8 7 (1 ) (4 6 1 SE2 d 5 6 4 ) (1 9 95 ) (Ev en wh en a t ri al co u rt

g ran t s s u m

m ary ju d g m en t t o a part y p r i o r t o t ri al

, t h e p rev ai li n g p art y i s n ot

au t o m at i cal l y

en t i t l ed t o at t o rn ey

fees u n d er OCGA § 9 -1 5-1 4 .).

11res o l ut i o n o f a fact u al o r leg al di s p u t e. Th u s, we co n cl u de t h at t h e t ri al co u rt ab u s ed

i t s d i s cret i on i n co n c l ud i n g t h at L ee’ s eq u i t ab le cl ai m s were wi t h o u t s u b s t an t i al

ju s t ifi cat i o n

, an d th e award o f at t o rn ey fees un d er OCGA § 9 -1 5 -1 4 (b ) fo r d efen d i n g

ag ai n s t t h es e cl ai m s m

u s t b e rev ers ed

.

2 . Lee al s o ch al l en ges t he po rt i o n of at t o rn ey fees t h at were award ed t o Park

fo r d efen d i n g ag ai n s t Lee’ s u n j u s t en ri ch m en t cl ai m

. Th e reco rd s h o ws th at n o t o n l y

was t h ere a l eg i t im at e fact u al d i s p u t e ab o ut th e fu n d s Lee p ai d

, b u t t h e t ri al co u rt s et

o ff t he am o u n t d u e t o Lee wi t h ex p en d it u res cl ai m ed b y Park fo r ex p en s es t h at were

i n cu rred p ri o r t o h er p u rch as e o f t h e b us i n es s

. Becau s e Park d i d n o t act u al l y p rev ai l

o n Lee’ s u n

j u s t en ri ch m en t cl ai m

, t h e co u rt ab u s ed i t s di s c ret i o n i n award i n g Park

at t o rn ey fees u nd er OCGA § 9 -1 5 -1 4 (b ) fo r d efen d in g ag ai ns t t hi s cl ai m

. 1 5

Ju d g men t r ever sed . Do yl e, C. J., a n d Mi l l er

, P. J., co n cu r

.

1 5 See S ier r a -Co r r a l H

o mes v. Po u r r ez a

, 3 08 Ga. Ap p

. 5 4 3

, 5 48 (7 ) (7 0 8 SE2 d

1 7 ) (2 0 1 1 ) (OCGA § 9 -1 5 -1 4 (b ) “ o n l y p erm i t s at to rn ey fees to b e award ed fo r cl ai m s

t h at are s u cces s fu l .” Becau s e t h e d efen dan t d i d n o t p rev ai l o n an y cl ai m

, i t was n ot

en t i t l ed t o at t o rn ey

fees .) (fo o t n o t e o m i t t ed ).

12