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Betallic, Inc. v. Deavours

Supreme Court of Georgia
Jan 24, 1994
263 Ga. 796 (Ga. 1994)

Summary

In Betallic, Inc. v. Deavours, 263 Ga. 796 (439 S.E.2d 643) (1994), the Supreme Court affirmed in part and reversed in part the judgment rendered by this court in Deavours v. Hog Mt. Creations, 207 Ga. App. 557 (428 S.E.2d 388) (1993), and directed that we take such further action as may be necessary to give effect to the Supreme Court's opinion.

Summary of this case from Deavours v. Hog Mountain Creations, Inc.

Opinion

S93G0910.

DECIDED JANUARY 24, 1994. RECONSIDERATION DENIED FEBRUARY 18, 1994.

Certiorari to the Court of Appeals of Georgia — 207 Ga. App. 557.

Thompson, O'Brien, Kemp Nasuti, J. Patrick O'Brien, Donna N. Kemp, for appellants.

Glenville Haldi, for appellees.


We agree with the Court of Appeals' conclusion in this case and with that court's construction of OCGA § 9-15-14, except that part where the court finds that a claim for litigation costs and attorney fees assessed for frivolous actions and defenses is available only to a "prevailing party." Deavours v. Hog Mtn. Creations, 207 Ga. App. 557 ( 428 S.E.2d 388) (1993). OCGA § 9-15-14 does not limit recovery to a certain party, but permits any party to recover from another party who has "unnecessarily expanded the proceeding by ... improper conduct, including, but not limited to, abuses of discovery." OCGA § 9-15-14 (b).

Judgment affirmed. Clarke, C. J., Hunt, P. J., Fletcher and Sears-Collins, JJ., concur; Benham, J., concurs in the judgment only; Hunstein, J., and Judge William H. Ison dissent. Carley, J., disqualified.


DECIDED JANUARY 24, 1994 — RECONSIDERATION DENIED FEBRUARY 18, 1994.


The majority has adopted in primary part the interpretation given OCGA § 9-15-14 by the Court of Appeals, i.e., that subsection (e) of that statute allows the recovery of attorney fees and expenses of litigation for abusive litigation only where a motion is filed during a limited 45-day window of opportunity after final termination of the action. Deavours v. Hog Mtn. Creations, 207 Ga. App. 557 (3) ( 428 S.E.2d 388) (1993). I cannot agree. The undisputed purpose of the abusive litigation statute is the "deterrence of litigation abuses." Porter v. Felker, 261 Ga. 421, 422 ( 405 S.E.2d 31) (1991). To effectuate this purpose, I would construe OCGA § 9-15-14 as authorizing a party in response to perceived abusive litigation to assert a claim under the statute at any time up to 45 days after final termination of the underlying litigation, in any manner that places the other party on notice that such a claim has been asserted. This construction is consistent with the spirit and inflicts no damage to the letter of the law. It also would be more congruous with the liberal construction this Court gives other pleading requirements, see, e.g., Franklyn Gesner Fine Paintings v. Ketcham, 252 Ga. 537 ( 314 S.E.2d 903) (1984), in that rather than following the Court of Appeals' elevation of form over substance, it places the emphasis on whether the pleading was sufficient to place the other party on notice as to the nature of the claim asserted. This construction would also best give effect to the intention of the legislature to construe the use of the word "within" in subsection (e) to mean "not later than" rather than "during," Wall v. Youmans, 223 Ga. 191, 192 ( 154 S.E.2d 191) (1967), thereby expanding, rather than restricting, the time period in which such a claim could be filed. As to subsection (e), rather than construing it as restricting abusive litigation claims from the onset of the litigation, I would construe it as extending the period of time available to raise an abusive litigation claim by authorizing the filing of such a claim within 45 days after the final disposition of the action, setting forth that a motion is the appropriate procedural device to raise such a claim in that extended time period.

OCGA § 51-7-80 et seq. sets forth the cause of action for abusive litigation. In those instances where the only damages sustained by the abusive litigation plaintiff consist of attorney fees and expenses of litigation, however, OCGA § 51-7-83 (b) provides that OCGA § 9-15-14 represents the sole avenue of recovery. Subsection (b) of OCGA § 9-15-14 extends the ambit of the statute beyond the filing of claims and defenses, see id. at (a), to encompass abuses that occur within the course of the litigation itself.

The reasonableness of this construction is evident in those situations — expressly addressed in OCGA § 9-15-14 (b) — where the claim is based on a party's abuse of discovery procedures although that party's underlying claim is valid. Immediate assertion of the abusive discovery claim followed by prompt disposition thereof could serve to discourage any further such abuses during the course of the litigation. Under the majority's construction of the statute, the victim of the discovery abuse has no choice but to wait until the final disposition of the entire action before asserting her claim, a result which virtually eliminates the deterrent effect of OCGA § 9-15-14.

Because this construction of OCGA § 9-15-14 best effectuates the drafters' intent that the statute should be liberally employed as an enforcement tool to discourage litigation abuse, I cannot agree with the majority's adoption of the Court of Appeals' interpretation, which establishes OCGA § 9-15-14 as a procedural trap for the unwary victim of abusive litigation.

I am authorized to state that Judge William H. Ison joins in this dissent.


Summaries of

Betallic, Inc. v. Deavours

Supreme Court of Georgia
Jan 24, 1994
263 Ga. 796 (Ga. 1994)

In Betallic, Inc. v. Deavours, 263 Ga. 796 (439 S.E.2d 643) (1994), the Supreme Court affirmed in part and reversed in part the judgment rendered by this court in Deavours v. Hog Mt. Creations, 207 Ga. App. 557 (428 S.E.2d 388) (1993), and directed that we take such further action as may be necessary to give effect to the Supreme Court's opinion.

Summary of this case from Deavours v. Hog Mountain Creations, Inc.

In Betallic, the Supreme Court agreed with our construction of OCGA § 9-15-14, but disagreed with that portion of our opinion quoting In the Interest of M. A. K., 202 Ga. App. 342 (1) (414 S.E.2d 288) (1991), stating that a claim for litigation costs and attorney fees under OCGA § 9-15-14 was available only to a "prevailing party."

Summary of this case from Deavours v. Hog Mountain Creations, Inc.

In Deavours, supra, the trial court granted an award of attorney fees and expenses of litigation to appellee-defendants based on their initial counterclaims for such an award pursuant to OCGA § 9-15-14.

Summary of this case from Deavours v. Hog Mountain Creations, Inc.
Case details for

Betallic, Inc. v. Deavours

Case Details

Full title:BETALLIC, INC. et al. v. DEAVOURS et al

Court:Supreme Court of Georgia

Date published: Jan 24, 1994

Citations

263 Ga. 796 (Ga. 1994)
439 S.E.2d 643

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