SECOND DI VI SI ON

A NDREWS, P. J.

M I LLER, P. J. and PETERSON, 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 ar ch 4, 2016



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A1 5 A2 13 5

. HEANY et al

. v

. BENNETT STREET PROPERTIES,

LP PE-0 3 5

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

Dav i d He a n y a n d Th i rs t y Do g

, In c. b ro ug h t s ui t ag ai n st Ben n et t St reet

Pro p ert i es

, L.P., t he o wn er o f p rem i ses Th i rs t y Do g fo rm erl y occu p i ed

, al leg i n g t h at

Ben net t St reet i m

p erm i ss i b l y ret ai n ed cert ai n fi x t u res an d o t h er p ers on al p ro p ert y

aft er Th i rs t y Do g v acat ed th e p rem i s es

. T h ey rai s ed cl ai m s fo r co n v ers i o n, reas o n ab l e

h i re, an d frau d

. Hean y an d Th i rs t y Do g ap p eal fro m an o rd er den y i n g t h ei r m o t i o n fo r

s u m m ary ju d g m en t an d g ran t i n g Ben n et t St reet ’ s m o t i o n fo r s u m m ary ju d g m en t

.

Ap p el l an t s arg u e t h at t h e t ri al co u rt erred b y co ncl u d i n g th at t h ey h ad l o s t an y ri g ht

t h ey m i g ht h av e h ad t o t h e i tem s i n q u es t io n

. Becau s e we fi n d g en u i n e d i s p u t es o f

m at eri al fact o n t h at p o in t

, w e affi rm t h e t ri al co u rt ’ s d en i al o f Th i rs t y Do g an dHean y ’ s m o t i o n fo r s um m ary ju d g m en t b ut rev ers e th e t ri al co u rt ’ s g ran t o f s u m m ary

ju d g m en t t o Ben n et t St reet

.

Ben n et t St reet i s t h e o wn er o f cert ai n prem is es l o cat ed at 2 1 1 0 Peach tree Ro ad

i n At l an t a (“ t h e Prem i s es ”). In 2 0 0 7

, Ben n et t St reet a l l o w e d a p ri o r leas e fo r t h e

Prem is es t o b e as si g ned t o An t h o n y LaRo cco

, wh o o p en ed a res t au ran t n am ed Vi t a.

LaRo cco t h en as s i g n ed t h e leas e t o Vi t a LLC. Ch ip Pat t ers o n g u aran t eed t h e l eas e. 1

Vi t a g av e Pat t ers o n ’ s co m p an y

, LaSal l e As s o ci at es LLLP, a s ecu ri t y i n teres t i n i t s

fi xt u res an d o t h er i t em s l o cat ed o n th e Prem i ses

, as ev i d en ced b y a UCC Fi n an ci n g

St at em en t fi l ed i n Feb ru ary 2 0 08

. Vi t a was u n s u cces s fu l an d cl o s ed aro un d t h e en d

o f 2 0 09

.

Hean y was an i n v es t o r i n Vi t a, l oan i n g m o ney t o LaRo cco fo r t he res t au ran t

.

In ret u rn

, Hean y tes t i fi ed

, h e an d LaRo cco u l t i m at el y ag reed t h at Hean y wo u l d o wn

Vi t a’ s eq u i p m en t an d fi x t u res

. Hean y s ai d h e un d ers to o d at th e t i m e o f t h at u n wri t t en

ag reem en t t h at LaRo cco o wn ed t h o se fi xt u res

, b ut l at er learn ed t h at t h ey h ad b een

as s i g n ed t o Pat t ers o n

. Hean y t es t ifi ed t h at “ wi t h i n a d ay o r s o” aft er t h e Ap ri l 2 0 1 1

ev i ct io n by Ben net t St reet

, LaSal l e “ as si g n ed t h e UCC” fo r t he res t au ran t ’ s fi x t u res

1 Ben n et t St reet u l t i m at el y s u ed Pat t e r s o n o n t h e g u aran t y ; t h e cas e s et t l ed in

2 0 1 2 , an d Pat t ers o n i s n o t a p art y t o t h i s act i o n

.

2t o h im

. A UCC fi n an ci n g s t at em en t as s i g n i n g t h e s ecu ri t y in t eres t i n t h e fi xt u res fro m

LaSal l e t o Hean y

was fi l ed o n Au g u s t 2 9 , 2 0 1 4

.

A f t er Vi t a cl o s ed aro u n d t he en d o f 20 0 9

, a s po rt s bar n am ed Th i rs t y D o g

o p en ed o n t h e Prem i ses

. H ean y

, wh o s ai d he h ad a “ co rp o rat e fi l in g ” fo r Th i rs t y Do g,

i n v es t ed ad d i t io nal m o ney i n t h e n ew res t au ran t

, s u ch t h at h e b el i ev ed t h at h e o wn ed

i t

. Hean y cl ai m s t h at h e si g n ed a d o cu m en t as s i g n in g V i t a’ s leas e fo r t h e Prem i s es to

Th i rs t y Do g an d p o i n t s t o a d o cu m en t i n th e reco rd t o t h at effect

. Ben n et t St reet

accep t ed r en t ch eck s li s t i n g Th i rs t y Do g as t h e p ay o r, al t h o ug h Ben n et t St reet ’ s

m an ag i n g p art n er J ack Bro wn t es t i fi ed th at h e c o n s i d ered t h e ch eck s t o h av e co m e

fro m V i t a. Bro wn ack n o wl ed ged t h at h e s i g n ed a fo rm s o t h at T h i rs t y Do g co u l d g et

a l i q u o r l i cen se. Bu t Bro wn d en i es s i g n i n g an y n ew l eas e o r as s i g nm en t o f t h e l eas e

t o Th i rs ty D o g

. Ben n et t St reet c o n t e n d s t h at t he p u rp o rt ed l eas e as s i g nm en t i n t h e

reco rd i s a fo rg ery

.

Th i rs t y Do g

, wh i ch s t ru g g l ed as w el l

, cl o s ed aro u n d t h e en d o f 2 0 1 0

. In t h e fal l

o f 2 0 1 0

, Ben n et t St r e e t f i l ed a d i sp o ss es s o ry act i on ag ai n st Vi t a. On J an u ary 1 3,

2 0 1 1

, a co n s en t o rd er was en t ered g ran t i n g Ben net t St reet p os s es s i o n o f t h e Prem i s es

an d a $2 0 3 ,1 7 8 .4 1 ju d g m en t ag ai n s t Vi ta fo r p as t ren t an d t ax es

. T h i rs t y Do g was n ot

l i st ed as a part y t o t h at act i o n , b u t i t s l awy er s ig n ed s ep arat el y as h av i n g co n s en t ed

3t o t h e o rd er o n b eh al f o f b o t h Vi t a an d Th i rs t y Do g

. Th e o rd er pro v id ed

, “ Defen d an t

h av in g ag reed to v acat e t h e l eas ed p rem i ses an d del i v er p o s s es s i o n o f s am e to

Pl ai n t i f f o n o r b efo re J an u ary 1 3

, 2 0 1 1

, Pl ai n ti ff i s en t i t l ed t o a W ri t o f Po s s es s i o n

wh i ch s h al l b e i s s ued i n s t an t er.” Un d ern eat h t h e s i g n at u re o f Th i rs ty D o g ’ s at t o rn ey

,

a n ot e p ro vi d ed t h at Th i rs t y Do g “ j o i n s i n t h e ex ecu t i o n o f t hi s Co n s en t Ord er to

ag ree t o s am e an d t o wai v e an y an d al l cl ai m s i t m ay

h av e ag ai n st Pl ai n t i ff.”

M ean wh i l e, Hean y was tr

y ing to se ll T h i rs t y Do g ’ s as s et s

, wi th LaRo cco act i n g

as h i s l i ai s o n t o a b ro k er. Th ey en t ered in t o n eg o t i at i on s t o s el l t h e as s et s t o By t h e

Gl as s LLC, o f wh ich Fran k Sk i was t h e m an ag i n g m em b e r

. LaRo cco t es t i fi ed by

affi d av i t t h at fro m

J an u ary 2 0 11 t h ro u g h t h e t i m e o f t h e ev i ct i o n

, Th irs t y Do g p ai d

Ben net t St reet ab o u t $ 4 7 ,5 0 0 t o re m ai n i n t h e p ro p ert y (k eep i ng fu rn i t ure, fi x t u res

an d eq u i p m en t t h ere) an d t o co n t i n u e n eg o t i at i on s wi t h Sk i

. Ben net t St reet

ack n owl ed ges t h at i t ag reed t o p o s t p o ne t h e ev i c t i o n t o al l ow n eg o ti at i o n s to

co n ti n u e, al t ho u g h i t s ay s it s ag reem en t w as wi t h Vi t a, n o t Hean y o r Th i rs t y Do g

, as

m em o ri al i zed in a wri t t en ag reem en t s i g n ed b y Bro w n o n b eh al f o f Ben n et t St reet an d

LaRo cco o n b eh al f of Vi t a. In h i s d ep o s i t i o n

, Hean y ack no wl ed g ed t h at at l eas t

$ 4 0 ,0 0 0 o f t he m o n ey p ai d t o Ben n et t St reet i n earl y 2 01 1 cam e fro m S k i an d was

m ean t t o p rev en t Ben net t St reet fro m f il i n g a d i s p o s s es s ory act i o n an d al l o w

4n eg ot i at i on s wi t h Sk i t o co n t i n ue. Ch aract eri zi n g t he m o ney as earn es t m o ney

, Hean y

s ai d t h at Sk i “ p ai d u s, an d we p ai d t h e ren t .”

Effo rt s t o s el l t h e res tau ran t b u s i n es s t o By th e Gl as s fel l t h ro u g h

, an d By t h e

Gl as s ’ s co u n s el t erm i n at ed t h e d eal wi th Th irs t y Do g in a M arch 3 1

, 2 0 1 1 l et t er. By

t h e Gl as s ’ s l awy er d e m an ded t h e ret u rn of $ 4 0 ,0 0 0 s h e ch aract eri zed as “ earn es t

m o ney ,” as wel l as at to rn ey s ’ fees an d co st s

. Ben n et t St reet en t ered in t o i t s own l eas e

ag reem en t fo r t h e P r e m i s es wi t h By t h e Gl as s i n A p ri l, s el li n g at l eas t s o m e o f t h e

fi xt u res cl ai m ed i n t h i s act i o n t o By t he Gl as s i n an ag reem en t d at ed Ap ri l 2 6

, 2 0 1 1.

Ben net t St r e e t p r o c eed ed wi t h t h e ev i ct i o n

, wh i ch was carri ed o u t by t h e co u n t y

m ars h al ’ s o ffi ce o n Ap ri l 2 9

, 2 0 1 1. Aro un d t h e t i m e o f t h e ev i ct i o n

, Bro wn t o ld

Hean y an d LaRo cco th ey co u l d co m e b ack t h e f o ll o wi n g week an d t ak e ad d i t i o n al

p ro p ert y t h at rem ai n ed o n t h e Prem i s es

, s u ch as t el ev i s i on s

, b u t wh en t h ey ret u rn ed

,

Bro w n refu s ed t o l et t hem tak e ev ery t h i n g t h e y wan t ed

, sp eci fi cal l y i t em s h e s ay s

were “ b ol t ed d o wn [,] th at w ere at t ach ed t o t h e p r o p e r t y [

, ] t h at I co n s i d ered o u rs

. ” 2

2 Al t h o ug h Bro wn ’ s t es t i m o n y s u g ges t s a d i s ag reem en t ov er wh at b el o n g ed to

t h e l an d l o rd an d wh at co n s t i t u ted t rad e fi x t u res t h at co u l d b e r e m o ved by a t en an t

, Ben net t St reet d i d n o t m o v e fo r s u m m ary ju d g m en t o n t h e b as i s t h at t h e p ro p ert y at

i s su e d i d n o t co n s t i t ut e t rad e fi x t u res an d t h erefo re was n ot s ub ject t o rem o v al b y a

t en an t

. Rat her, i n i t s su m

m ary ju d g m en t b ri ef, Ben n et t St reet sai d i t w as “ u n d i s p u t ed

t h at t h e p ro p ert y

at i ss ue i s t rad e fi x t u res .”

5Hean y an d Th i rs t y Do g cl ai m t h at cert ai n p ro p ert y l eft o n t he Prem i ses b e l o n g s to

t h em

. Hean y t es t i fi ed t h at h e p u rch as ed s o m e o f t h e it em s b efo re T h i rs ty Do g o p en ed

,

wh i le o t h er i t em s were o ri g i n al l y p u rch as ed b y

Vi t a o r an ot h er en t i t y

.

Hean y an d Th irs t y D o g s u ed Ben net t St reet t o reco v er d am ag es fo r t h e l o ss o f

t h e p ro p ert y

. Th ey as s ert ed cl ai m s o f co n vers i on

, reas on ab l e h ire, frau d an d

m i s rep res en t at i o n

, p u ni t i v e d am ag es an d at t orn ey s ’ fees

. T h e co n v ers i o n an d

reas on ab l e h i re cl ai m s were b as ed o n t h e prem i se t hat Ben n et t St reet ret ai n ed o r s o ld

t h e p lai n t i ffs ’ p ro p ert y

, wh i l e t h e frau d an d m i s rep res en t at i o n cl ai m was b as ed o n t h e

al l eg at i o n t h at Be n n et t St reet fal s el y rep res en t ed t o t h e p l ai nt i ffs o n t h e d ay o f t h e

ev i ct io n t h at t h ey wo u l d b e ab l e t o ret u rn t o t h e Prem i ses t o rem o v e t h ei r p ro p ert y

.

Bo t h si d es m o ved fo r s u m m ary ju d g m en t

, an d t he tri al co u rt g ran t ed t h e m o t i o n fi l ed

b y Ben n e t t St reet an d den i ed t h e m o t io n fi l ed b y H ean y an d T h i rs ty Do g

. Th e t ri al

co u rt ru l ed t h at

, reg ard l es s o f w h et h er Hean y o r T h i rs ty Do g h ad an y s ecu ri t y i n t eres t

i n t h e t rad e fi x t u res in q u es t io n

, t h ey h ad n o ri gh t t o rem ov e t he t r a d e f i x t u r es

s u b s eq u en t t o t h e d is p o s s es so ry o rd er en t ered i n Jan u ary 2 0 1 1

. Th e co u rt ru l ed t h at

an y t rad e fi x t u res n o t rem o v ed p ri o r t o t h a t t i m e b ecam e t h e p ro pert y o f Ben n et t

St reet

, wh i ch m ean t t h at t he co n v ers i o n an d reas on ab le h i re cl ai m s fai l ed

. Th e co u rt

al s o ru l ed t h at th e frau d an d m i s rep res en t at i o n cl ai m fai l ed b ecau s e t he p l ai n t i ffs d id

6n o t h av e t h e ri g h t t o reco v er t h e t rad e fi x t u res on t h e d ay o f t h e ev i ct i o n an d t h u s an y

fal s e m i srep res en t at i o n b y Ben n et t St reet d id n o t cau se t hei r l o s s o f p o s s es s i o n

.

On ap p eal

, H e a n y an d T h i rs ty Do g co n ten d t h at t he t ri al co u rt erred b y (1 )

g ran t i n g s u m

m ary ju dg m en t fo r Ben n et t d es pi t e a v al i d l eas e as s i g n m en t t o Th i rs t y

Do g t h at w as n ev er t erm i n at ed ; (2 ) h ol d in g t h at Ben n et t St reet was en t i t l ed to p ro ceed

wi t h th e ev i ct i o n o n A p r i l 2 9

, 2 0 1 1

, i rres p ect i v e o f an y o ral ag reem en t t o al l o w

Th i rs t y Do g t o rem ai n in th e p rem i s es t h ro u g h Ap ri l 20 1 1 in ex ch an g e fo r $ 4 7 ,5 0 0;

an d (3 ) ru l i n g t h at Hean y an d Th i rs t y Do g lo s t an y ri g h t t o ret ak e t h ei r pro p ert y aft er

t h e ev i ct i o n d es p i t e an al l eg ed ag reem en t t h a t t h e p ro p ert y co u ld b e rem ov ed t h e

fo l l o w i n g week

. W e c o n s i d e r t h es e arg u m en t s i n t erm s o f t h e cl ai m s m ad e b y t h e

Ap p e l l a n t s

. Al t h o u g h t h e p art ies an d t he t ri al co urt freq u en t l y h av e co nfl at ed t h e

cl ai m s of Th i rs t y D o g an d H ean y

, t h e co m p l ai n t m ak es cl ear t h at t h e i r c o n v ers i o n

cl ai m s are s ep arat e an d b as ed o n d i f f e r e n t t h eo ri es

, s o we wi l l ad d res s t h em

s ep arat el y

.

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

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

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

7t h e l i g h t m o s t f a v o r ab l e t o t h e n o n m o v an t

. Ho me B u i ld er s As s ’n o f S a va n n a h

, In c.

v. Ch a t ha m Ct

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

1

. Th i rs t y

Do g ’ s Cl ai m s fo r Co n v ers i o n an d Reas o nab l e Hi re.

Th e t o rt o f co n v ers i o n o ccu rs th r o u g h “ an act of d o m i n i o n o v er t h e p ers o n al

p ro p er t y o f an o t h er i n co ns i st en t wi t h hi s ri g h t s[.] ” Ro m a n o v. Ga

. Dep t

. of

Co r r ect io n s

, 3 0 3 Ga. Ap p

. 34 7

, 3 4 9 (1 ) (a) (6 9 3 SE2 d 5 2 1) (2 0 1 0 ) (ci t at i o n an d

p u n ct u at i o n o m i t t ed ). A cl ai m fo r reas o n ab l e h i re i s d er i v a t i v e o f a cl ai m fo r

co n vers io n

. S

ee Ewa ld s en v. A t l

. In s

. Br o ker

s

, L.L.C.

, 2 6 7 G a. Ap p

. 34 7

, 35 0 (2 ) (5 9 9

SE2 d 2 2 3) (2 0 0 4). Th i rs t y Do g arg u es t hat i t h ad a v al i d as s i g n m en t fro m Vi t a t h at

creat ed a l eas e b et ween Th i r s t y D o g an d Ben n et t St reet t h at was n ev er t erm i n at ed

.

Bas ed o n t h i s al l eg ed l eas e as s i gn m en t

, Th i rs t y Do g cl ai m s t h at Ben n et t St reet

co n vert ed cert ai n t rad e fi x t u res t h at were Th i rs ty Do g’ s t o rem o v e as a t en an t

.

“ A t en an t h as n o ri gh t t o i m p o s e h is su b t en an cy u p o n t h e l an dl o rd wi t h o u t h i s

c o ns en t .” Bl o ck v. Br o wn

, 1 9 9 Ga. Ap p

. 1 2 7, 1 2 8 (1 ) (4 04 SE2 d 2 88 ) ( 1 9 9 1 )

.

Ho wev er, “ wh en t h e lan d l o rd t reat s t h e l eas e as as s i g n ed

, h e i s e s t o p ped fro m

d en y i n g t h e v al i d i t y o f t h e as s i g n m en t.” I d

. A l an d l o rd ’ s el ect i on t o accep t t h e

s u b t en an t as h i s o wn t en an t m ay b e ex p res s o r m ay b e i m p l i ed fro m co n d u ct

. Id

. at

1 2 9 (1 ). W h et h er a l an d l o rd h as accep t ed a s u bt en an t as h i s t en an t is g en eral l y a

8q u es ti o n fo r a ju ry

, al t h o u g h ex p res s co n d u ct b y t he l an d l o rd m ay

s h o w as a m at t er

o f l aw t h at t h e l an d l o r d d i d n o t accep t t h e s u b t en an t

. Mea d o ws v. S i eg al

, 2 1 7 Ga.

Ap p

. 5 9

, 6 0 -6 1 (4 5 6 SE2 d 2 6 8 ) (1 9 9 5 ). In ad d i t i o n t o ev i d en ce th at co u l d im p l y t h at

Ben net t St reet accep t ed a l eas e a s s i g n m e n t fro m Vi t a t o T hi rs t y D o g

, Th i rs t y Do g

p o i n t s t o e v i d e n c e o f an ex pres s accep tan ce, i n t h e fo rm o f t h e wri t ten l eas e

as s i g n m en t b eari n g t he s ig n at u re o f Bro wn

. Bro wn t es t i fi ed t h at h e nev er s i g n ed s u ch

an as s i gn m en t

, an d Ben n et t St reet co n t en d s t h e d o cu m en t i s a “ fo rg ery ,” b u t t h at

m erel y creat es a di sp u te o f fact o v er wh et h er Ben n et t St reet accep t ed a l eas e

as s i g n m en t

.

Reg ard l es s o f wh et h er Ben n et t St reet accep t ed th e l eas e as s i gn m en t fro m Vi t a

t o Th i rs t y Do g

, h owev er, an y l eas e b et w een Th i rs ty Do g an d Ben n et t St reet was

t erm i n at ed b y J an u ary 1 3

, 2 0 1 1

, t h e d at e o f t h e co n s en t ju d g m en t

. Th i rs t y Do g arg u es

t h at n o n o t i ce o f in ten t t o t erm i n at e t h e l eas e was s en t t o Th i rs t y Do g an d i t was n ot

n am ed as a d efen d an t t o an y di s p o s s es s o ry act i o n

. S ee V i r gi n i a Hi g h l a n d As s o cs

. v.

Al l en

, 1 7 4 Ga. Ap p

. 7 0 6

, 7 0 7-7 0 8 (1 ) (3 3 0 SE2 d 8 9 2 ) ( 1 9 8 5 ) ( en t i t y in act u al

p o s s es s i o n o f prem i s es is n eces s ary p art y t o d i s p o s s es s o ry act io n ag ai n st l e s s e e s ) ;

Ma y v. P o o l e

, 1 7 4 Ga. Ap p

. 22 4, 2 2 7 (3 ) (3 2 9 SE2 d 5 6 1 ) (1 9 8 5 ) (t i m el y d em an d fo r

p o s s es s i o n i s co nd i t i o n pre c e d en t to in s t i t u ti o n o f d i s p o s s es so ry p ro ceed i n g s ).

9Ho wev er, t h ro u g h co un s el

, Th i rs t y D o g s i g n ed t he co n s en t ju d g m en t th at g av e

Ben net t St reet i m

m ed i at e p o s s es s i o n o f th e p rem i s es

, s p eci fy i ng th at i t “ ag ree[d ] t o

s a m e

. ” A l t h o u g h t h e tri al co u rt m ay b e co rrect t hat t h e wai v er co n t ai n ed i n t h a t

ju d g m en t co u ld n ot reas on ab l y en co m p as s an y cl ai m o f Ap p el l an t s t hat m i g h t ari s e

aft er t h e d at e o f t h at ju d g m en t, we ag ree wi t h t h e t ri al co u rt ’ s o ral ru l i n g at t h e cl o s e

o f th e s u m

m ary j u d gm en t h eari n g t h at i t was cl ear fro m t h e co n s en t ord er “ t h at

Th i rs t y D o g d id n o t h av e an y ri g h t t o p o s s es s i o n o f t h e p rem is es

. ”

OCGA § 4 4 -7 -1 2 p ro v id es :

Du ri n g t h e t erm

o f h i s t en an cy

o r an y co n t i n u at io n t h ereo f o r wh i l e h e

i s in p o s s es s i o n u nd er t h e l an d l o rd

, a t en an t m ay rem ov e trad e fi x t ures

erect ed by h i m

. Aft er th e t erm an d h i s p o s s es s i o n are en d ed

, an y t rad e

fi xt u res rem ai n i n g w i l l b e r eg ard ed as ab an d on ed fo r th e u s e of th e

l an d lo rd an d wi l l b eco m e t h e l an d l o rd ’ s p ro p ert y

.

Un d er t h at ru l e, Th irs t y Do g l o s t an y ri g h t t o rem o v e an y trad e fi x tu res as o f t h e d at e

o f t h e co n s en t ju d g m en t , wh ich g av e p o s s es si on o f t h e p rem i s es t o Ben n et t St reet

.

Ho we v e r

, T h i rs t y Do g h as rai s ed a di s p u t e o f m at eri al fact as t o wh et h er

s u b s eq u en t p ay m en t s to Ben n et t St reet res u rrect ed i t s ri g h t s

. Th i rs t y Do g arg u es t h at

i t s p ay m en t o f $ 4 7 ,5 00 a l l o w e d i t t o rem ai n in t h e Prem i ses an d t h at t h e t ri al co u rt

10erred b y fi n d i n g t h at an y su ch ag reem en t was t oo vag u e to b e en fo rced

. Ben n et t St reet

cl ai m s t h at i t n ev er h ad an y ag reem en t w i t h Th i rs t y Do g t o al l o w i t t o rem ai n o n t h e

Prem is es

, p o i n t i ng to Hean y ’ s dep o si t i o n t es t i m o n y th at $ 4 0 ,0 0 0 o f t h e p ay m en t s to

Ben net t St reet cam e fro m Sk i

. It i s t ru e t h at H ean y t es t i fi ed as m u ch

, b u t h e s ai d t h at

Sk i “ p ai d u s

, an d we p ai d t he ren t

. ” Hean y t es t i fi ed t h at at leas t on e r e a s o n fo r t h e

p ay m en t s was t o al lo w fo r ad d i t i o n al t im e t o co n s u m m at e t he s al e o f t h e res t au ran t

b u s i n es s

. Mo reo v er, Hean y ch aract eri zed t h e m o n ey fro m Sk i as earn es t m o n ey

. In

k eep in g wi t h t h at ch aract eri zat i o n

, w h en By t h e Gl as s ’ s co u n s el t erm i nat ed t h e d eal

wi t h Th i rs t y Do g

, s h e d em an d ed t he refu n d o f “ $ 4 0 ,0 00 refu n d a b l e e arn es t m o n ey

p ai d .” Ben net t St reet p o i n t s t o i t s wri t t en ag reem en t wi t h Vi t a, s i g ned b y LaRo cco

,

b u t an affi d av it fro m LaRo cco s ai d t h at fro m J an u ary 2 0 11 t h ro ug h t h e t i m e o f t h e

ev i ct io n

, Th irs t y Do g p ai d Ben n e t t St reet ab o u t $4 7 ,5 0 0 t o rem ai n i n t h e p ro p ert y

,

k eep in g fu rn i t ure, fi x t ures an d eq u i p m en t t h ere, an d co n ti n u e n eg o t i at i o n s w i t h Sk i

.

Al l o f t h i s creat es a g en u i n e d is p ut e o f m at eri al fact as t o wh et h er, in ex ch an g e

fo r m o n ey fro m Th i rs t y Do g

, Ben n et t St reet ag reed t o ex t en d Th i rs t y Do g ’ s t i m e o f

p o s s es s i o n (an d t h ereb y Th i rs ty Do g ’ s ri g h t t o t h e t rad e fi x t u res ), an d fo r p reci s el y

h o w l o n g

. W e, t herefo re, affi rm t h e t ri al co u rt ’ s d en i al of Th i rs t y Do g ’ s m o t i o n fo r

s u m m ary ju d g m en t o n i ts cl ai m s fo r co n v ers i o n an d reas o n ab l e hi re, as wel l as an y

11as s o ci at ed cl ai m s fo r p u n i ti v e d am ag es an d at t orn ey s ’ fees

, b u t rev ers e t h e t ri al

co u rt ’ s g ran t o f s u m

m ary ju d g m en t t o Ben n et t St reet o n t h o s e cl ai m s

.

2

. Hean y ’ s Cl ai m s fo r Co n v ers i o n an d Reas on ab l e Hi re

Al t h ou g h Th i rs t y D o g’ s cl ai m ap pears t o res t o n i t s p u t at i ve s t at u s as a t en an t

o f Ben n et t St reet

, Hean y ’ s cl ai m i s b as ed on h i s cl ai m ed s t at u s as a h o l d e r o f a

s ecu ri t y i n t eres t i n cert ai n i t em s

. Th e t ri al co u rt ap pears to h av e co n fl at ed t h e cl ai m s

o f Hean y wi t h t ho s e o f Th irs t y Do g, ho wev er, ru l i n g t h a t “ [t ] h e i s s u e o f wh et h er

P l a i n t i f f s h ad a s ecu ri ty i n t eres t i n t h e p ro p ert y is a m o o t p o in t b ecau s e i t h as n o

b eari n g o n wh et h er Pl ai n ti ffs h ad a ri g h t t o rem o ve t h e t rad e fi xt u res o n ce t hei r t erm

o f t en an cy was t erm i n at ed b y t h e M ag is t rat e Co u rt .” Th e t ri al co u rt as s u m ed t h at

,

aft er en t ry o f t he co n s en t ju d g m en t i n t h e d i s p o s s es s ory act i o n

, LaSal l e As s o ci at es

co u ld n o t as s i g n an y i nt eres t i n t h e it em s t o Hean y

, b ecau s e LaSal l e n o l o n g er h ad a

s ecu ri t y in t eres t in t ho s e i t e m s

. By t h at po i n t

, t he t ri al co u rt reas o n ed

, t h e i t em s

b ecam e t h e p ro pert y

o f Ben n et t St reet

.

Ho wev er, a ten an t ’ s ab an d o n m en t o f fi x t ures p u rs u an t to O C G A § 4 4 -7 -1 2

d o es n o t n eces s ari ly ex t i n g u i s h s o m eo ne el s e’ s s ecu ri t y i n t ere s t i n th at p ro p ert y

.

Pu rs u an t t o OCGA § 1 1-9 -3 3 4(f)(2 ), “ [a] s ecu ri t y i n t eres t i n fi x t u res

. . . h as p ri o ri t y

o v er a co n fl i ct i n g i nt eres t o f an en cu m b ran cer o r o wn er o f t h e real p ro p ert y i f

. . .

12[t ] h e d eb t o r h as a ri g h t t o rem o v e t h e g o o d s as ag ai n s t t h e en cu m b ran cer o r o wn er.”

Th at p ri o ri t y o f i n t eres t “ co n t i n u es fo r a reas o nab l e t i m e i f t h e d e b t o r’ s ri g h t to

rem o v e th e g o o d s as ag ai n s t t h e en cu m b ran cer o r o wn er t erm i n at es .” OCGA § 1 1 -9

-

3 3 4 (g ).

Here, Vi t a, t h e d eb t o r wi t h i n t h e m ean i n g o f OCGA § 1 1 -9 -3 3 4 (f)(2 ), h ad a

ri gh t u n d er OCGA § 44 -7 -1 2 to rem o v e an y trad e fi x t u res t h at i t erect ed

, at l eas t u n t i l

“ t h e t erm o f [i ts ] t en an cy or an y co n t i n u at i o n t h ereo f” an d i t s “ p os s es s i on u n d er t h e

l an d l o rd ” en d ed

. Th u s, fo r so m e “ reas o n ab l e” p eri o d o f t i m e, L aSal le’ s s ecu ri t y

i n t eres t i n t h e it em s t o o k p r i o ri t y o v er wh at ev er i nt eres t Ben n et t St reet m i g h t h av e

recei v ed u n d er OCGA § 4 4-7

- 1 2 wh en i t t o o k p o s s es s i on o f t h e p rem i s es

. W h at

co n st i t u t es s u ch a reas o n ab l e t i m e i s a q u es t i on o f fact n o t eas i l y s u s cep t i b l e to

res o l ut i o n o n s u m

m ary ju d g m en t

. S

ee, e.g

., Bi s h o

p v. Va l l ey Ho l d i n g

, In c. , 2 6 1 Ga.

3 9 0

, 3 9 2 n .4 (2 ) (4 0 4 SE2 d 7 7 9 ) (1 9 9 1) (wh at co n s ti t ut es “ reas o n a b l e t i m e” fo r

p erfo rm an ce o f co n t ract i s a q u es t i o n fo r t he t ri er o f fact ). Th erefo re, we affi rm t h e

t ri al co u rt ’ s d en i al o f H ean y ’ s m o t i o n fo r su m m ary j u d gm e n t o n h i s cl ai m s fo r

co n vers io n an d reas o n ab le h i re, as wel l as an y as s o ci at ed cl ai m s fo r p u n it iv e d am ag es

an d at to rn ey s’ fees

, b u t rev ers e t h e t ri al co u rt ’ s g ran t o f s u m m ary ju d g m en t to

Ben net t St reet o n t h o s e cl ai m s

.

133

. Frau d Cl ai m s

Fi n al l y

, Hean y an d Th i rs t y Do g co n t en d t h at t h e t ri al co urt erred b y ru l i n g t h at

t h ey l o s t t h ei r ri g h t t o r e t a k e t h e i r p ro p ert y d es p i t e wh at t h ey ch aract eri ze as an

ag reem en t b y Ben n et t St reet t hat t hey co u l d h av e i n t o M a y 2 0 1 1 to rem o v e t h ei r

p ro p ert y

. Th i s arg u m en t ap p ears t o b e b as ed o n t es t i m o n y by Bro wn

, Ben n et t St reet ’ s

rep res en t at i v e, t hat aro u nd th e t i m e o f t he A p ri l 2 9, 2 0 1 1

, ev i ct i o n h e t ol d H ean y an d

LaRo cco t h at t hey co u ld co m e back t h e fo ll o wi n g w eek an d ret ri ev e t h e res t o f t h ei r

p ro p ert y

. Th e co m

p lai n t fi l ed b y Hean y an d Th irs t y Do g fram es t h i s co n v ers at i o n as

t h e b as is f

o r t h ei r frau d cl ai m s. Th e t ri al co urt co n cl u d ed th at ev i d en ce o f s u ch a

co n vers at i on co ul d n o t p ro v i d e a b as i s fo r th e frau d cl ai m s b e c a u s e t h e Hean y an d

Th i rs t y Do g “ d i d n o t h av e th e ri g h t t o reco v er t he t rad e fi xt u res

. . . wh en t h e ev i ct i o n

t o o k p l ace” an d t h u s “ t h ei r l os s o f p o s s es s io n wa s n o t t he p ro x i m at e cau s e o f

Defen d an t ’ s act .” Bu t, as o u t l i ned ab o v e, g en u in e d i s p u t es o f m at eri al fact p rev en t

t h e Co u rt fro m co n cl u d i n g at t h i s t i m e t h at Hean y an d T h i rs t y Do g d i d n o t h av e t h e

ri gh t t o reco v er t h e t rad e fi xt u res at t h e t i m e o f t h e ev i ct i o n . Acco rd i n g l y

, al t h o u g h

we affi rm t h e t ri al co u rt ’ s den i al o f Hean y an d Th i rs t y Do g ’ s m o t i o n fo r s u m m ary

ju d g m en t o n t h ei r frau d cl ai m s an d an y as s o ci at ed cl ai m s fo r p u n it i ve d am ag es an d

14at t o rn ey s ’ fees

, we rev ers e t he t ri al co u rt ’ s ru l i n g g ran t o f s u m m ary ju d g m en t to

Ben net t St reet o n t h o s e cl ai m s

.

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

s ed i n p a r t

. An d

r ews

, P. J., a n d Mi l l er

, P.

J., co n cu r

.

15