Court Opinion

ID: 9849878
Source: CourtListenerOpinion
Date Created: 2023-09-24 04:48:32.226802+00
Date Added: 2024-06-11T09:20:27.756762
License: Public Domain

Birdsong, Presiding Judge,
concurring in part and dissenting in part.
I concur in Division 1, but dissent as to Divisions 2 and 3 for the following reasons:
1. Appellant asserts the trial court failed to employ recognized rules of contract construction in concluding that thé phrase “not less than two years” is definite, clear, and unambiguous, and by failing to *206submit the issue of the parties’ contractual intent as to this matter to the jury. The trial court held that by the plain terms of the contract, the questioned phrase had “no cap” on the time it was to run, and that, as the words were not ambiguous, parol evidence of the party’s intent would not be admissible to show ambiguity. The trial court further directed a verdict against appellant as to its claim on the grounds that the questioned phrase in the clause was unenforceable as it was of indefinite duration, and that the remaining restrictive covenant in the contract also was unenforceable under the precedent of Ward v. Process Control Corp., 247 Ga. 583, 584 (277 SE2d 671).
I agree with the trial court that the phrase “for a period not less than two years” is per se clear and unambiguous and imposes “no cap.” “ ‘Where the terms of a written contract are clear and unambiguous, the court will look to the contract alone to find the intent of the parties.’ ” Howell Mill/Collier Assoc. v. Pennypacker’s, 194 Ga. App. 169, 173 (3) (390 SE2d 257). The restrictive covenant in question, as found by the trial court, failed to contain a date (time) of termination on its face. “With respect to a negative covenant ancillary to a contract of employment, it is essential to the validity of the contract that it contain reasonable limitations both as to time and territory, and that it be ‘not otherwise unreasonable.’ . . . Whether the restraints imposed by an employment contract are reasonable is a question of law for determination by the court.” Orkin Exterminating &c. v. Dewberry, 204 Ga. 794, 802 (1) (51 SE2d 669), overruled in part on other grounds, Barry v. Stanco &c. Prods., 243 Ga. 68, 71 (3) (252 SE2d 491); compare Jenkins v. Jenkins Irrigation, 244 Ga. 95, 98 (2) (259 SE2d 47) (covenant must be strictly limited in time and territorial effect and otherwise reasonable). “If it is not [strictly] limited with regard to either time, territory or scope of activity, the entire covenant fails. Georgia does not employ the ‘blue pencil theory of severability’ when it comes to covenants contained in employment contracts.” Arnall Ins. Agency v. Arnall, 196 Ga. App. 414, 416 (1) (396 SE2d 257). Accordingly, the trial court was correct in declaring the entire covenant in question as unenforceable.
Moreover, if the questioned phrase does not mean what it plainly says, as is the inherent conclusion of the majority when they resort to a less than commonly accepted “vernacular” phrase interpretation to support their holding, then the questioned phrase is ambiguous (see generally McGee v. Southern Gen. Ins. Co., 194 Ga. App. 783, 784 (391 SE2d 669)). Appellant’s assertions notwithstanding, the issue of ambiguity would not automatically become a jury question. “The construction of a contract is a question of law for the court, and ‘even ambiguous contracts are to be construed by the court unless an ambiguity remains after application of applicable rules of construction.’ ” Id.; accord Kusuma v. Metametrix, 191 Ga. App. 255 (2) (381 SE2d *207322). Thus, a contract is to be construed by the court where the language thereof is undisputed but the meaning of that language is in dispute. Avanti Group v. Robert Half &c., 198 Ga. App. 366, 368 (401 SE2d 576). As unequivocally recognized by the trial court, a well-established rule of contract construction “is that an ambiguous contract will be construed most strongly against its maker.” Hunsinger v. Lockheed Corp., 192 Ga. App. 781, 784 (1) (386 SE2d 537). After examining the employment contract in its entirety and applying the above rule of construction, any ambiguity would be resolved against appellant and it becomes clear that the questioned restrictive covenant failed to contain a specific limitation as to time. Compare Mc-Cann v. Glynn Lumber Co., 199 Ga. 669 (1) (34 SE2d 839) (lease contract after properly construed is not ambiguous in the sense that parol evidence would be admissible). Thus, assuming the questioned phrase initially was ambiguous (which seems even more plausible considering this issue had to be addressed in a whole court opinion), we would not reverse the trial court as the ambiguity could be resolved by application of well-recognized provisions of contract construction. And we would not reverse the correct holding of a trial court regardless of the reason thereto attributed. National Consultants v. Burt, 186 Ga. App. 27, 33 (2) (366 SE2d 344).
2. Appellant asserts the trial court erred when it also ruled unenforceable the contract language prohibiting appellee from taking from appellant elderly care residents.
I believe that the trial court did not err in determining this restrictive covenant also to be unenforceable under the controlling precedent of Ward, supra. The restrictive covenant here at issue pertinently provided that the contractor “will in no way seek to influence or in any other way attempt to take any of the . . . guest residents to any other comparable business.” (Emphasis supplied.) This restrictive covenant in substance is tantamount to a covenant both not to solicit and not to compete, and it is found in the same paragraph of the contract as is the unenforceable covenant not to compete above discussed. “If any covenant not to compete within a given employment contract is unreasonable either in time, territory, or prohibited business activity, then all covenants not to compete within the same employment contract are unenforceable. ... In the present case both the covenant ‘not to solicit’ and the covenant ‘not to compete’ are covenants not to compete for purposes of applying the above rule.” Ward, supra at 584 (2).
Durham v. Stand-By Labor, 230 Ga. 558, 562 (198 SE2d 145) (covenant not to compete and covenant not to disclose can be independently maintained under same employment contract) and Lane Co. v. Taylor, 174 Ga. App. 356 (330 SE2d 112) (covenant of no-hire is severable from covenant not to compete) are distinguishable from *208this case and thus are not persuasive.
3. Additionally, the record contains a prior order of the trial court denying appellant’s motion for temporary restraining order (TRO). This motion refers to certain evidence apparently adduced at a hearing which would establish that even if the above restrictive covenants had been valid, the operative facts failed to establish any violation of the covenant’s terms. Neither the TRO hearing transcript nor the trial transcript has been included with this appeal; accordingly, this court has only a paucity of evidence before us pertaining to these apparently operative case facts. See generally Nodvin v. West, 197 Ga. App. 92, 97 (3c) (397 SE2d 581); Atlanta Cas. Ins. Co. v. Crews, 197 Ga. App. 48, 51 (3) (397 SE2d 466).
4. Further, the majority relies upon certain averments made in the complaint and amended complaint, and admitted in the answers thereto, to bolster their contention that the questioned provision of the contract was only to run for a two-year period. In support of this contention, they cite as cornerstone authority OCGA § 9-11-8 (d) and Martin v. Pierce, 140 Ga. App. 897 (1) (232 SE2d 170).
I agree that if appellee/defendant is to be conclusively bound by her answer admitting averments in the complaint and amended complaint, it would have to be under the precedent of Martin v. Pierce, supra, and related cases. Examination of this precedent reveals that the binding of a party to averments made or admitted in pleadings is predicated on the doctrine of admissions in solemn judicio. I cannot agree that appellee has made such a binding admission. At best the averments of appellant/plaintiff admitted in the answer of appellee/ defendant, regarding the time limitations in the contract would, at most, constitute a conclusion or opinion of the parties as to the legal effect of the instrument sued on, and would not be binding upon the trial judge as to his interpretation of the terms of the contract as a question of law. Southern Bus. Machines v. Norwest Fin. &c., 194 Ga. App. 253, 257-258 (2) (390 SE2d 402); Howell Mill/Collier Assoc. v. Pennypacker’s, supra at 172 (2). Assuming arguendo an enforceable admission had occurred, inherent within the procedure employed by the trial court in determining contract construction was permission for appellee/defendant to withdraw that admission. Thus, the trial court was free to interpret the contract in accordance with those rules of contract construction or interpretation thereto applicable.
Assuming the phrase at issue was also capable of being reasonably interpreted using the so-called “common vernacular method” at most this establishes that the ill-chosen phrase is ambiguous (compare Claussen v. Aetna Cas. &c. Co., 259 Ga. 333 (380 SE2d 686)) permitting the trial court to employ that construction which most strongly goes against the maker (Hertz Equip. Rental Corp. v. Evans, 260 Ga. 532, 533 (397 SE2d 692)).
*209Decided November 6, 1992.
Paul S. Liston, for appellant.
John B. Begonia, for appellee.
Accordingly, I find the result reached by the trial court was not erroneous (National Consultants, supra), and that the judgment should be affirmed in its entirety.
I am authorized to state that Chief Judge Sognier and Judge Andrews join in this dissent.