Court Opinion

ID: 9854008
Source: CourtListenerOpinion
Date Created: 2023-09-24 05:59:03.679428+00
Date Added: 2024-06-11T09:22:52.453791
License: Public Domain

Quillian, Judge,
dissenting.
I dissent from the majority opinion in Division 2. The majority relies principally upon Foote & Davies Co. v. Malony, 115 Ga. 985, 986 (1) (42 SE 413), wherein the court held that "[t]he sum of five hundred dollars stipulated to be paid for a breach of the contract could not be liquidated damages, because it was to be paid over and above all damages sustained.” I find Foote to be both distinguishable and inapplicable. It is distinguishable because there the complainant sought to recover a sum, not specifically agreed to by the parties to represent liquidated damages, in addition to "all damages sustained.” In the instant case the total amount sought by complainant was only that sum designated by both parties as "liquidated damages.” Foote is inapplicable because the complainant sought to recover a substantial sum of money in addition to "all damages sustained.” In this case no sum of money is sought in addition to liquidated damages. No amount is mentioned except that sum agreed by both parties to represent "liquidated damages.” In fact no other sum of money or course of action was sought except an action for "liquidated damages.”
Our disagreement centers on the use by the complainant in the contract, in conjunction with the stipulated damages, of that time honored catchall phrase of lawyers: "and to pursue any and all remedies available to him at law or equity.” We find this phrase to be surplusage. The majority finds it to be a penalty clause. To me I do not find the addition of this phrase to render illegal that which was legal. The use of such a phrase should be moot in this case because it was not used — except that it can be argued that it was used in the sense that the complainant did bring a legal action to collect the liquidated damages. If this is true, then the majority opinion holds that in contracts in which both parties stipulate to liquidated damages, if they add the phrase *778that the party has a right to sue in law to collect such liquidated damages, the addition of that phrase renders the liquidated damages clause unenforceable because it is a penalty.
I cannot agree with that portion of the opinion which states that paragraph 13 of this contract permits the seller to retain the sums certain "and also sue for damages.” That portion of paragraph 13 which they say would permit this is: "and to pursue any and all remedies available to him at law or equity including, but not limited to, an action for specific performance of this contract.” Clearly, if Foote is applicable as the majority says it is, no action at law or equity would permit damages over and above the set sum agreed to be liquidated damages. The only reason for inclusion of a catchall phrase is for the seller to retain and hold open such options as the law may permit. If and when he attempts to exercise such option, at that time the court can determine if the latter action represents a penalty.
It is evident from the wording of the contract that both parties intended the sum of $5,000 to be liquidated damages if the purchaser defaulted on or before November 6, and thereafter the additional earnest money represented by the $45,000 note to represent additional liquidated damages for a later default. The two sums together represented fully liquidated damages. That amount is what the seller sued for and nothing additional was requested, alleged, or intimated.
I find no fault with the paragraph in issue, inasmuch as no additional sum was contemplated or sued for, nor was any additional action instituted.
I am authorized to state that Presiding Judge Deen and Judge Marshall concur in this dissent.