Lawrence v. Direct Mortgage Lenders Corp.
Lawrence v. Direct Mortgage Lenders Corp.
Opinion of the Court
Direct Mortgage Lenders Corporation sued Rodney Lawrence alleging that he breached an agreement to lease a trailer, converted the trailer to his own use, and wrongfully obtained title to a truck from Direct Mortgage by presenting a bad check for the purchase price. After a bench trial, the trial court entered a judgment in favor of Direct Mortgage and against Lawrence in the amount of $1,500 as past due rent on the trailer claim; $30,750 on the truck claim; $1,800 in attorney fees pursuant to OCGA § 9-15-14 (b); and $50,000 in punitive damages.
On appeal Lawrence claims the trial court erred: (1) by refusing to continue the trial to permit him to conduct discovery; (2) by erroneously admitting parol evidence; (3) by awarding punitive damages; and (4) by awarding attorney fees. For the reasons set forth below, the judgment should be affirmed except for the award of attorney fees.
1. The trial court did not abuse its discretion by refusing to continue the trial to allow Lawrence to commence discovery.
Direct Mortgage filed its complaint on November 16, 2000, and Lawrence (represented by defense counsel) filed an answer and counterclaim on November 21, 2000. On January 9, 2001, Lawrence’s defense counsel filed a motion to withdraw as attorney of record on the basis that Lawrence had failed to pay attorney fees. The trial court granted the motion and allowed defense counsel to withdraw on January 25, 2001. On January 17, 2001, before defense counsel withdrew, Direct Mortgage served defense counsel with an amendment to the complaint adding the truck claim. The case was subsequently placed on the trial calendar for trial on February 26, 2001. When the
Lawrence also objected to trying the claim raised in the amendment to the complaint on the basis that the amendment was not located in the court’s file prior to the call of the case. The record shows that the filed amendment had been misplaced by the trial court clerk, and the trial court allowed a copy of the amendment to be filed on the day of the trial to complete the record. Lawrence raised no objection in the trial court, and makes no claim in this appeal, that he did not receive proper notice of the amendment to the complaint. The record shows that Lawrence’s first defense counsel was served with the amendment over a month prior to the trial date, and subsequent defense counsel who appeared for Lawrence at the call of the case indicated that he had reviewed the file and was aware of the amendment.
Contrary to Lawrence’s argument, USCR 5.1 did not give him a right to conduct discovery for a six-month period of time after he filed his answer. Rule 5.1 provides that:
In order for a party to utilize the court’s compulsory process to compel discovery, any desired discovery procedures must first be commenced promptly, pursued diligently and completed without unnecessary delay and within six months after the filing of the answer. At any time, the court, in its discretion, may extend, reopen or shorten the time to utilize the court’s compulsory process to compel discovery.
This rule does not require that Lawrence be given six months in which to complete discovery. Alexander v. Macon-Bibb County Urban Dev. Auth. &c., 257 Ga. 181, 184 (357 SE2d 62) (1987); Walton v. Datry, 185 Ga. App. 88, 90 (363 SE2d 295) (1987). Rather, the time for conducting discovery rests in the sound discretion of the trial court. “A trial court has wide discretion to shorten, extend, or reopen the time for discovery, and its decision will not be reversed unless a clear abuse of that discretion is shown.” Woelper v. Piedmont Cotton
In the present case, Lawrence made no effort to conduct discovery after he filed his answer on November 21, 2000, or after the amendment to the complaint was served, or after he was notified that the case had been placed on the court’s trial calendar. The first defense counsel withdrew because Lawrence failed to pay him, and Lawrence did not obtain and meet with his new defense counsel until the day before the case was set for trial. Given Lawrence’s complete lack of diligence in failing to conduct any discovery prior to the trial date, we find the trial court did not abuse its discretion by denying the motion made at the start of the trial to continue the case so discovery could be commenced. Woelper, 266 Ga. at 473.
2. Lawrence waived his claim that the trial court erroneously admitted parol evidence by failing to make any objection when the evidence was introduced. Golden Peanut Co. v. Bass, 249 Ga. App. 224, 239 (547 SE2d 637) (2001).
3. There was evidence supporting the award of punitive damages, and the amount awarded was not excessive.
The original complaint included an allegation that Lawrence converted a trailer owned by Direct Mortgage and sought punitive damages for the conversion. In an amendment to the complaint, Direct Mortgage alleged that Lawrence purchased and obtained title to a truck from Direct Mortgage by presenting a bad check in the amount of $30,750. The amendment sought to recover $30,750 from Lawrence but did not allege a conversion or pray for punitive damages. In the judgment in favor of Direct Mortgage, the trial court made findings with respect to Lawrence’s conduct on the trailer claim and the truck claim. The court found that “Defendant’s actions constituted wilful conversion” and awarded $50,000 in punitive damages. Although the judgment did not specify whether the conduct justifying the award of punitive damages related to the trailer claim or the truck claim, the trial court made clear in its oral pronouncement of judgment at the trial that it intended to award punitive damages solely on the conversion claim stated in the complaint which prayed for the award of those damages. When the written judgment is read in conjunction with the court’s oral pronouncement of judgment, it is clear that punitive damages were awarded based on the trial court’s finding that Lawrence converted and refused to return the trailer to Direct Mortgage after he stopped paying the rent due. In the Interest of L. H., 242 Ga. App. 659, 660 (530 SE2d 753) (2000).
The record shows that Lawrence came into possession of the trailer lawfully pursuant to his agreement to lease it from Direct Mortgage. Where a defendant lawfully acquires, possession of the property at issue, there is no conversion in the absence of proof that
The trial court made a finding in compliance with OCGA § 51-12-5.1 (d) (1) that an award of punitive damages was justified, but it awarded $50,000 in punitive damages without complying with the procedural requirements of § 51-12-5.1 (d) (2) that it hold a bifurcated hearing to consider the amount of punitive damages to be awarded. Nevertheless, because no objection was raised to this deficiency in the trial court, the error was waived. Shaw v. Ruiz, 207 Ga. App. 299, 300 (428 SE2d 98) (1993); Wal-Mart Stores v. Forkner, 221 Ga. App. 209, 210 (471 SE2d 30) (1996).
Although the $50,000 in punitive damages awarded substantially exceeded the compensatory damages of $1,500 awarded on the trailer claim, the award was not excessive given the evidence of misconduct before the trial court. Punitive damages are not awarded based on the actual harm caused, but to punish reprehensible conduct and deter its occurrence in the future. Hosp. Auth. of Gwinnett County v. Jones, 259 Ga. 759, 761-766 (386 SE2d 120) (1989). “Because deterrence is based on factors other than the actual harm caused, we have rejected the notion that punitive damages must necessarily bear some relationship to the actual damages awarded by the [court].” (Emphasis omitted.) Hosp. Auth. of Gwinnett County v. Jones, 261 Ga. 613, 614 (1) (409 SE2d 501) (1991). The trial court did not abuse its discretion in awarding punitive damages in the amount of $50,000. Hosp. Auth. of Gwinnett County, 259 Ga. at 766; Moody v. Dykes, 269 Ga. 217, 221-222 (496 SE2d 907) (1998); Time Warner
4. The trial court also awarded Direct Mortgage $1,800 in attorney fees pursuant to OCGA § 9-15-14 (b) based on the court’s finding that there was no substantial justification for Lawrence’s defense to the claim asserted in the amended complaint that he obtained title to the truck by presenting a bad check. Evidence was presented that Direct Mortgage incurred attorney fees in the amount of $1,800 for prosecution of the entire case. Although the trial court did not abuse its discretion in awarding attorney fees in some amount pursuant to § 9-15-14 (b) (Haggard v. Bd. of Regents &c. of Ga., 257 Ga. 524, 527 (360 SE2d 566) (1987)), Direct Mortgage was only entitled to attorney fees attributable to the conduct that the trial court found justified the award. Accordingly, we reverse the attorney fees award and remand the case to the trial court for a hearing to allow Direct Mortgage to establish what portion of the $1,800 in attorney fees it expended on the entire case was attributable to the successful truck claim asserted in the amendment to the complaint. Duncan v. Cropsey, 210 Ga. App. 814, 815-816 (437 SE2d 787) (1993).
Judgment affirmed in part, reversed in part and case remanded with directions.
The trial court took judicial notice of the writ of possession it granted in the case and the sworn statements contained in the request for the writ.
Whether the award of punitive damages was excessive under the Due Process Clause of the Fourteenth Amendment to the United States Constitution was not raised as an issue in this case. Accordingly, there is no need to address whether the award conforms with the substantive standards for determining compliance with federal due process set forth in BMW of North America v. Gore, 517 U. S. 559 (116 SC 1589, 134 LE2d 809) (1996). Cooper Indus. v. Leatherman Tool Group, 532 U. S. 424, 433, n. 7 (121 SC 1678, 149 LE2d 674) (2001); Brouming-Ferris Indus. &c. v. Kelco Disposal, 492 U. S. 257, 276-277 (109 SC 2909, 106 LE2d 219) (1989). Nor do we apply the de novo standard of review required for appellate review of the federal due process issue by Cooper Indus., 532 U. S. at 430-434. Since no federal constitutional due process issue was raised, state standards apply to determine the validity of the award, and the standard for appellate review of the award for excessiveness under state common law is whether the trial court abused its discretion. Hosp. Auth. of Gwinnett County, 259 Ga. at 766; Cooper Indus., 532 U. S. at 433-434; Time Warner, 254 Ga. App. at 601 (2) (a) (ii).
Dissenting Opinion
dissenting.
I respectfully dissent, because the conduct of the trial judge was arbitrary and capricious, evidencing a prejudice against the defendant.
On November 16, 2000, Rodney Lawrence, defendant, was sued in the State Court of Gwinnett County by Direct Mortgage Lenders Corporation for breach of contract to purchase and conversion of a 1999 camper trailer. On November 17, 2000, Lawrence was personally served. On November 16, 2000, the trial court granted ex parte
On January 9, 2001, prior defense counsel made a written motion to withdraw for failure by the defendant to pay for services, and on January 25, 2001, the trial court allowed defense counsel to withdraw. Prior to the expiration of the period for discovery and while the defendant was unrepresented, the trial court had the case expeditiously calendared for a bench trial for February 26, 2001, only 71 days after answer and without a written order shortening the time for discovery and trial. From January 9, 2001, through February 24, 2001, the defendant was effectively unrepresented by counsel to conduct discovery on his behalf of complex legal and factual issues. The defendant orally moved for a continuance, which was denied.
At a bench trial on February 26, 2001, after the defendant objected to trial on the new claim for the truck, the trial court overruled this objection and ordered the clerk to file the courtesy copy of the amendment to plaintiff’s complaint when the clerk could not find evidence that the amendment had ever been filed of record with the trial court; thus, the trial court had plaintiff file the amendment to the complaint at trial to assert this new independent claim for $30,750 for the purchase of a truck and dishonor of the check. The amendment filed bore a certificate of service on the defendant dated January 17, 2001; however, this service was made on the first defense counsel, who the plaintiff was on notice on that date had a pending motion to withdraw and who was allowed to withdraw eight days later on January 25. The trial court had received a courtesy copy of the amendment from the plaintiff and allowed the plaintiff to go forward over objection of defense counsel even though this new claim constituted the majority of the consequential damages claimed and had not been filed of record until the objection was made as to its absence from the court records.
The trial court conducted the bench trial of the issues raised in the complaint and the tardily amended complaint, entering a judgment for $1,500 rent on the trailer; the new claim of $30,750 purchase price of the truck; $1,800 in attorney fees under OCGA § 9-15-14 (b) for lack of substantial justification for the defense of payment on the new claim; and punitive damages of $50,000, without making specific findings of fact as to the bad faith conduct under OCGA § 13-6-11, OCGA § 9-15-14 (b) lack of substantial justification on the new claim, or OCGA § 51-12-5.1 aggravated conduct for punitive damages.
Uniform Superior Court Rule 5.1 provides that the parties have six months from the filing of the answer to complete discovery; however, “[a]t any time, the court, in its discretion, may . . . shorten the time to utilize the court’s compulsory process to compel discovery.”
At trial, the trial court attempted to justify its exercise of discretion in shortening discovery and articulated reasons on the record just prior to trial when the defendant, through new counsel, renewed his oral motion for continuance, because discovery had not been completed. “This man went for three months [(from January 9 until January 24, counsel was seeking to withdraw and was putting in no additional work to perform discovery; from January 25 until February 24 the defendant was unrepresented)] without doing anything [paying his first attorney]. He’s acted at his own peril.” The reasons stated were: (1) “the first attorney that was retained by Mr. Lawrence filed a motion to withdraw because he was not paid. That gave me some pause for concern because for weeks [(January 25 to February 26)] after that, there was not another notice of appearance filed by another attorney.” However, the defendant had new counsel request a continuance at trial. Second,
[g]iven what was presented to me in the prejudgment writ of possession affidavit, given the mobile nature of the assets that allegedly [(the trial court granted immediate seizure)], according to the pleadings, belong to the plaintiff, I felt that it was incumbent upon me to expedite these proceedings to make sure that the plaintiff was not deprived of any assets which may or may not rightfully belong to it.
I expedited that process [(no written order or notice)] when Mr. Lawrence, in my opinion, just didn’t take this seriously, number one, by not paying the attorney that first filed an entry of appearance and that I let withdraw, and number two, by not hiring another attorney expeditiously [(it took defendant 31 days)] so that an attorney could file an entry of appearance and get started in the discovery process.
However, defense counsel appeared before the trial court 32 days after the trial court granted leave to former counsel to withdraw.
At the call of the case, which had been filed only 101 days, the defendant had counsel who objected to trial being rushed without discovery and requested a continuance to do discovery on complex issues of the nature of transaction, i.e., a usurious loan disguised as a sale, resale and rental with option to purchase, conversion, and punitive damages. Thus, the first reason for the expedited trial had been satisfied by the defendant, i.e., new defense counsel. The second reason was that the assets could be moved; however, within six days of the filing of the suit and based upon the defective affidavit, the plaintiff had recovered possession of the recreational trailer by a prejudgment seizure conducted by the sheriff. The claim for recovery of the truck was asserted by amendment filed on the day of trial, although plaintiff claimed to have served the defendant’s former counsel 40 days prior to trial, according to the certificate of service upon the attorney the trial court had allowed to withdraw. But more importantly, the plaintiff felt safe enough regarding the truck that it delayed asserting its new claim for the truck until nearly three months after filing suit. The record reveals that the amendment was served on former counsel, which should have raised in the trial court’s mind the question of actual notice to the defendant and more
In general, the statements of the trial judge evidenced a prejudice against the defendant for not paying his first counsel or quickly getting new counsel so that the trial court rushed the case to trial while the defendant was a pro se. The reasons given for the exercise of discretion to expedite trial fail to justify the expedited trial and constitute an abuse, because the reasons were without substance in reality; to cut short the normal discovery period, the trial court should do so by written order given prior to calendering the case; in the written order, the trial court should articulate the sound reasons for shortening the discovery period and expediting trial ahead of other older cases. OCGA § 9-11-40 (b). In this case, the trial court’s actions in shortening discovery, rushing the case to bench trial, and denying a continuance should constitute arbitrary and capricious conduct. See SurgiJet, Inc. v. Hicks, supra at 82.
(a) On April 2, 2000, Lawrence executed a note which stated that it was for $5,500 to Direct Mortgage Lenders Corporation due in full on May 12, 2000, with a 1999 Hyline Travel Trailer as security. The note provided for no interest amount on its face. The cashier’s check, which the plaintiff’s testimony claimed was the purchase price of the trailer, showed on its face that these funds were “LOAN PROCEEDS.” On August 21, 2000, title to the camper was recorded in the plaintiff’s name, although it was claimed to have been purchased on April 12, 2000, from Mrs. Lawrence and sold back to the defendant
On November 15,1999, defendant is alleged to have sold a house in Alabama and a 1999 Ford truck to the plaintiff for $30,000 and executed a lease with the option to repurchase with rent of $750 per month; however, there was no written lease regarding the purchase of land by the plaintiff required by the statute of frauds. OCGA § 13-5-30 (4). The title certificate showed that on February 19, 1999, the defendant purchased the Ford truck, that a replacement certificate of title was issued on July 31, 2000, and the plaintiff was the first lienholder. On July 19, 2000, the defendant gave a check to pay off the balance, plus a month’s rent; however, the check bounced. Plaintiff in its amended complaint sued for the bad check.
It is well-established law that
where parties have reduced to writing what appears to be a complete and certain agreement, it will, in the absence of fraud, accident, or mistake, be conclusively presumed that*683 the writing contains the entire contract, and parol evidence of prior or contemporaneous representations or statements can not be allowed to add to, take from, or vary the written instrument.
Albany Fed. Sav. &c. Assn. v. Henderson, 198 Ga. 116, 143 (6) (31 SE2d 20) (1944); see also OCGA § 24-6-1; Schluter v. Perrie, Buker, Stagg &c., 230 Ga. App. 776, 777 (1) (498 SE2d 543) (1998). However, there is no single document which evidences what either party testified was the agreement expressing the intent of the parties, because unwritten portions of a written contract may be established by parol evidence where the writing appears to be an incomplete contract and the parol evidence is consistent with the written instrument. OCGA § 24-6-2; Harden v. Orr, 219 Ga. 54, 56 (131 SE2d 545) (1963); Choice Hotels Intl. v. Ocmulgee Fields, 222 Ga. App. 185, 186-187 (1) (474 SE2d 56) (1996). Where there exist material issues of fact as to the terms and conditions of the contract, which are not all contained in the written instrument, or where an ambiguity in the written terms exists, parol evidence is admissible to explain the intent of the parties. In this case, neither party agrees on what the terms of the contract were, and each party made contentions as to the terms that make the intent of the parties in direct conflict.
(b) (1) “[P]unitive damages must be specifically prayed for in [the] complaint,” which must be more than a mere prayer for punitive damages in the ad damnum. OCGA § 51-12-5.1 (d) (1); Drug Emporium v. Peaks, 227 Ga. App. 121, 128-129 (2) (488 SE2d 500) (1997). “We cannot affirm an award of punitive damages in which the trial court declined to follow the procedures and standards now required by OCGA § 51-12-5.1, awarded punitive damages against [the defendant] to a party who did not pray for them.” Id. at 124 (2). “[The plaintiff] is not entitled to punitive damages because the complaint’s prayer for relief contain [ed] no specific prayer for punitive damages (OCGA § 51-12-5.1 (d) (1)) on his behalf from [the defendant] .” Id. at 126 (2) (b). The complaint must set forth a claim for punitive damages as well as the aggravating circumstances which authorize such damages. Id. at 127-128. Thus, the complaint must set forth facts that bring the claim within the aggravating circumstances authorized by statute, i.e., “willful misconduct, malice, fraud, wantonness, oppression, or that . . . want of care which would raise the presumption of conscious indifference to consequences.” OCGA § 51-12-5.1 (b); Drug Emporium v. Peaks, supra at 129. In this case, punitive damages were not properly pled nor prayed for in the complaint, which is an amendable defect prior to retrial.
(2) The trial court in the findings of fact must set forth specifically what has been found to constitute the statutory grounds of spe-
(c) The trial court found a lack of substantial justification for the defense of accord and satisfaction under OCGA § 9-15-14 (b) and bad faith under OCGA § 13-6-11, which both authorize the award of attorney fees and costs of litigation. However, the record is void of evidence to support that $1,800 in attorney fees is either reasonable or related to issues authorizing such award. There were no time sheets for plaintiff’s counsel itemizing what work was related to defendant’s defense of accord and satisfaction or to bad faith; nor was a bill introduced showing what work was done. D’Agnese never testified regarding the plaintiff’s attorney fees incurred. However, plaintiff’s counsel testified in his place that he billed at $225 per hour and had spent eight hours on the case, giving a breakdown of two hours consulting with his client prior to suit; one and a half hours to draft the suit; trial four hours and twenty minutes; and travel time one hour. These legal services were unrelated to the factors authorizing such award, except some unidentified portion of trial time. Significantly, plaintiff’s counsel failed to specify what time he spent at trial or in preparation to deal with the defendant’s defenses that lacked substantial justification, what defense conduct in the transaction constituted bad faith causing expenses of litigation, or that the attorney fees were reasonable.
The award of attorney fees under OCGA § 9-15-14 (b) is discretionary with the trial court; therefore, the any evidence and abuse of
When expenses of litigation are awarded to the plaintiff under OCGA § 13-6-11 for bad faith of the defendant in the transaction, plaintiff’s counsel must show by competent evidence that the attorney fees and expenses were related to the prevailing claim, that the expenses of litigation were caused by such conduct, that the expenses and attorney fees were reasonable, and that the fees were apportioned between the claims asserted and the claim authorizing such award. R. T. Patterson Funeral Home v. Head, 215 Ga. App. 578, 585-586 (5) (451 SE2d 812) (1994). Only attorney fees allocable to efforts to establish liability as to the claim in which defendant engaged in bad faith are recoverable under such statute under such factor. Fuller v. Moister, 248 Ga. 287, 288 (282 SE2d 889) (1981); Southern Cellular Telecom v. Banks, 209 Ga. App. 401, 402-403 (1) (433 SE2d 606) (1993). Plaintiff must prove the actual costs of litigation and the reasonableness of the costs. Crosby v. DeMeyer, 229 Ga. App. 672, 674 (2) (494 SE2d 568) (1997). Where, as here, plaintiff’s counsel testifies about the hours worked, the amount per hour, and what the work was for but failed to testify that the attorney fees were reasonable, such attorney fees are not recoverable. See Hughes v. Great Southern Midway, 265 Ga. 94, 95-96 (1) (454 SE2d 130) (1995); Cannon Air Transport Svcs. v. Stevens Aviation, 249 Ga. App. 514, 519 (6) (548 SE2d 485) (2001); Evans Toyota v. Cronic, 233 Ga. App. 318, 321-322 (2) (503 SE2d 358) (1998).
I am authorized to state that Judge Phipps joins in this dissent.
Uniform State Court Rules state that “[t]he Uniform Rules of the Superior Courts shall be applicable in the State Courts.”
Reference
- Full Case Name
- Lawrence v. Direct Mortgage Lenders Corporation
- Cited By
- 17 cases
- Status
- Published