Opinion ID: 498796
Heading Depth: 1
Heading Rank: 2

Heading: wausau's liability for the interest payments

Text: 6 This case raises a sophisticated question of Georgia law: Whether a surety can be liable for the interest on delinquent payments without first receiving notice that the insured's payments are untimely. Both parties have ably addressed this question; however, we are unable to reach the issue because there are disputed material facts that prevent a summary judgment. 7 We must view the evidence and all factual inferences that flow from the evidence in the light most favorable to the party opposing the motion for summary judgment. Clark v. Union Mutual Life Insurance Co., 692 F.2d 1370, 1372 (11th Cir.1982). If reasonable minds might differ on the inferences arising from undisputed facts, then the court should deny summary judgment. Id. We believe that under the undisputed facts a fact finder could reasonably draw the inference that Augusta had waived its option to collect the interest for the late payments. The fact finder could base this inference on the fact that (1) Augusta never carried the interest charges in its own books; that (2) during the three years, Augusta never sent any invoice that mentioned the interest charges; and that (3) Augusta applied the late payments against the principal, not the accrued interest. Since Augusta's first written demand for interest came within a month of Williams Bridge's bankruptcy, a fact finder could also infer that Augusta's motive for not claiming the interest was to maintain a friendly relationship with its customer, Williams Bridge. Finally, the fact finder could conclude that Augusta demanded the interest only after it realized that Williams Bridge offered no hope of providing any future business. 8 Augusta replies that the affidavits from the President of Williams Bridge and the Vice-President of Augusta, which state that Augusta orally exercised its option to charge interest, dispel the inferences drawn from a lack of written documentation. This is incorrect. To disbelieve the inferences of waiver, a fact finder would have to rely on the credibility of the two executives. Frankly, we would not be surprised if a fact finder rejected the testimony of these two men. Since the courts cannot make credibility judgments on a motion for summary judgment, however, we cannot weigh the inferences from a lack of written documentation against the testimony of the two executives. The affidavits and inferences offer competing conclusions. We must draw all inferences in Wausau's favor. Therefore, we reverse the motion for summary judgment regarding the liability for interest.