Lee v. Green Land Co., Inc.
Lee v. Green Land Co., Inc.
Dissenting Opinion
dissenting.
Art. VI, Sec. VI, Par. Ill (2) of the Georgia Constitution of 1983 clearly and unambiguously states that “[u]nless otherwise provided by law, the Supreme Court shall have appellate jurisdiction” over “[a]ll equity cases.” Because the distinction between equity and legal cases is so fundamental, neither the construction nor application of this simply worded jurisdictional grant has been the previous source of any great controversy. However, even though the General Assembly has not elected to “otherwise provide by law,” a majority of this Court today reconstrues Art. VI, Sec. VI, Par. Ill (2) so as to require that our already over-burdened Court of Appeals assume jurisdiction over an entire class of cases which that constitutional provision mandates that we and we alone decide. I cannot concur in such an unconstitutional and unwarranted shifting of this Court’s judicial responsi
Actions at law and in equity differ in that they seek enforcement of mutually exclusive remedies.
Equity jurisdiction is established and allowed for the protection and relief of parties, where, from any peculiar circumstances, the operation of the general rules of law would be deficient in protecting from anticipated wrong or relieving for injuries done.
OCGA § 23-1-3. “Equity will not take cognizance of a plain legal right where an adequate and complete remedy is provided by law . . . .” OCGA § 23-1-4. “If the court at law has full power to grant the party all the relief to which he is entitled, there is no ground for the exercise of equity’s jurisdiction. [Cits.]” Morton v. Gardner, 242 Ga. 852, 856 (252 SE2d 413) (1979). “Generally, equity jurisprudence embraces the same matters of jurisdiction and modes of remedy as were allowed and practiced in England.” OCGA § 23-1-2. “Most of the specific grounds of such jurisdiction, as recognized and established by the English high court of chancery, are codified in [T]itle [23] of the Code.” Grimmett v. Barnwell, 184 Ga. 461, 466 (2) (192 SE 191) (1937).
It has long been recognized that an action at law is not converted into an equity case within this Court’s jurisdiction merely because the defendant raises an equitable defense to the plaintiff’s legal claim. Equitable Life Assur. Society v. Bischoff, 179 Ga. 255 (175 SE 560) (1934). Likewise, a proceeding does not constitute an equity case simply because the plaintiff seeks injunctive relief, since an injunction is only a form of equitable relief and not an independent equitable claim. If the underlying claim is legal and the injunctive relief is otherwise completely dependent upon the resolution of that legal issue, this Court does not have appellate jurisdiction over the case. Beauchamp v. Knight, 261 Ga. 608 (409 SE2d 208) (1991). A case in which the grant or denial of equitable relief is only ancillary to the underlying legal issues, or is a matter of routine once the underlying issue of law is resolved, is not an equity case for appellate jurisdictional purposes. Saxton v. Coastal Dialysis & Medical Clinic, 267 Ga. 177, 178-179 (476 SE2d 587) (1996).
However, the present áppeal is from the grant of summary judgment in favor of the defendant in an action for specific performance. “Specific performance of contracts is a branch of equity jurisprudence. . . .” Bernstein v. Fagelson, 166 Ga. 281, 286-287 (142 SE 862) (1928). Unlike an injunction, specific performance is never only a form of ancillary equitable relief, but is an entirely independent equi
The majority relies exclusively upon Beauchamp v. Knight, supra, as the authority for its holding that this Court lacks jurisdiction over this appeal. That reliance is misplaced, however, since Beauchamp was not a specific performance case. Indeed, Beauchamp was not even an equity case, since it involved a boundary line dispute in which the equitable relief was merely ancillary and the only issue on appeal was the applicable venue for such a legal action. Under long-standing authority, such an appeal is not within this Court’s equity jurisdiction, and Beauchamp correctly reaffirmed that established jurisdictional principle. Since Beauchamp was not a specific performance case, however, any additional discussion in the opinion of this Court’s jurisdiction over such cases is obiter dicta.
Moreover, that dicta erroneously states that certain previously decided specific performance cases resolved by application of principles of contract law, including Johnson v. Sackett, 256 Ga. 552 (350 SE2d 419) (1986), evince a departure from the established interpretation of our equity jurisdiction. See Beauchamp, supra at 610, fn. 1. Contrary to this statement, a long and unbroken line of pre-Beauchamp decisions recognizes that the propriety of the grant or denial of specific performance is a substantive equitable issue over which this Court has jurisdiction, even though the superior court’s ruling in that regard was predicated upon contractual legal principles. See Kelly v. Vargo, supra; Ga. Southern & Fla. R. Co. v. Taylor, supra. Because specific performance is itself an equitable remedy for the enforcement of contracts, it is counterintuitive to opine that this Court has no jurisdiction over a case in which the superior court’s ruling granting or denying that remedy was predicated upon the principles of contract law. Since contractual principles control the merits of every grant or denial of specific performance, the end result of that anomalous notion is that we would have no jurisdiction over
In addition to the failure to acknowledge that its only authority is the erroneous dicta in Beauchamp, the majority also mistakenly refuses to give effect to our subsequent precedents which do deal with the issue of appellate jurisdiction over specific performance cases. In our 1997 opinion in Geriner v. Branigar Organization, supra at 389-390, we unanimously held that “[t]his Court, rather than the Court of Appeals, has jurisdiction over this case, because the viability of [the] equitable claim for specific performance is an issue to be resolved on appeal. [Cits.] Compare Beauchamp v. Knight, [supra].” See also Engram v. Engram, 265 Ga. 804 (463 SE2d 12) (1995); Coleman v. Coleman, 265 Ga. 568 (459 SE2d 166) (1995). Under the mandate of the landmark decision in Hall v. Hopper, 234 Ga. 625, 629 (3) (216 SE2d 839) (1975), these later cases constitute the controlling authority on the issue of this Court’s jurisdiction over specific performance cases. Compare Redfearn v. Huntcliff Homes Assn., supra (involving an ancillary claim for injunctive relief, rather than an independent equitable civil action such as one for specific performance). Although these subsequent decisions returned this Court to the long-standing rule from which the Beauchamp dicta strayed, the majority now chooses to overrule the former and to adopt the latter. Thus, we have come full circle on the issue of appellate jurisdiction over specific performance cases, except for the unfortunate distinction that — unlike Beauchamp — today’s misinterpretation of our constitution is not just erroneous obiter, but is the holding of this Court in this case.
We have no authority to amend the Georgia Constitution, but we must construe and apply it. Where constitutional language “does not indicate an intention to declare some new principle, sound construction requires that it be construed to have intended no more than
Nevertheless, a majority of this Court has now chosen to follow that path. Under the interpretation of Art. VI, Sec. VI, Par. Ill (2) adopted today, it no longer matters that a substantive equitable issue has been raised in the appeal of an equity case. If a legal question is also presented, the appeal of an equity case now must be transferred to the Court of Appeals. However, this Court’s jurisdiction depends upon the existence of a substantive equitable issue, and we certainly are not divested of that jurisdiction simply because resolution of that equitable issue is dependent upon the application of legal principles. The presence of legal questions in an equity case does not change its nature from an equitable to a legal action. “Equity is ancillary, not antagonistic, to the law; hence, equity follows the law where the rule of law is applicable and follows the analogy of the law where no rule is directly applicable.” OCGA § 23-1-6.
By its focus upon the presence of a legal question in an equity case, today’s opinion has the unavoidable effect of divesting this Court of the very jurisdiction which Art. VI, Sec. VI, Par. Ill (2) of our constitution purports to confer. Unlike the majority, I believe that we should continue to construe that constitutional provision in accordance with the framers’ intent that it serve as the grant of jurisdiction to this Court, not as the basis for this Court to evade its constitutional duties. The only interpretation consistent with that purpose mandates that where, as here, a substantive equitable issue is raised
Dissenting Opinion
dissenting.
I respectfully dissent.
The first maxim of equity is that equity follows the law. Dolinger v. Driver, 269 Ga. 141, 143 (4) (498 SE2d 252) (1998). Thus, every equity case will of necessity turn on legal issues; and, with that in mind, it could be argued that every equity case must be transferred to the Court of Appeals. Of course, that argument cannot withstand scrutiny. It is only where equitable issues are ancillary to legal issues that a case belongs in the Court of Appeals. Redfearn v. Huntcliff Homes Assn., 271 Ga. 745 (524 SE2d 464) (1999).
In Redfearn, this Court transferred a restrictive covenant case to the Court of Appeals even though the defendants raised an equitable defense of laches. I joined the majority opinion in Redfearn because, under the rationale of Beauchamp v. Knight, 261 Ga. 608 (409 SE2d 208) (1991), that restrictive covenant case was a legal case with an ancillary equitable defense.
In this case, plaintiff seeks specific performance, a purely equitable remedy. See Bernstein v. Fagelson, 166 Ga. 281 (142 SE 862) (1928). Of course, in order to decide whether specific performance lies in this case, we must look at the legal issues. However, the legal issues in this case are ancillary to the equitable remedy, i.e., specific performance.
In the final analysis, the jurisdictional question can be answered
Beauchamp’s assertion that cases seeking specific performance relative to contracts to sell land should be transferred to the Court of Appeals was purely dicta. Thus, Geriner v. Branigar Organization, 268 Ga. 389 (489 SE2d 305) (1997), and Eickhoff v. Eickhoff, 263 Ga. 498 (435 SE2d 914) (1993), did not reject Beauchamp and need not be overruled.
Opinion of the Court
This appeal is brought from the trial court’s denial of a request for the specific performance of appellant’s proposal to make a contract for the sale of land. Under the Supreme Court’s precedent concerning equity jurisdiction, this Court is without jurisdiction to decide this type of appeal, and therefore it is transferred to the Court of Appeals.
Appellant Lee sought to purchase timber property owned by Alabama Life Insurance Company (ALIC), and the two parties executed a document titled “Offer to Purchase,” which included a contingency provision requiring ALIC to obtain a building permit. Appellant gave ALIC a binder, and when ALIC determined it could not satisfy the contingency, it refunded the binder. Appellant then informed ALIC that he waived the contingency and demanded that ALIC close a sale of the property. ALIC refused, and appellant sought specific performance of their “agreement.” As ALIC was in receivership, its parent, appellee Green Land Company, Inc., acquired the property subject to Lee’s claim. This appeal is brought from the trial court’s award of summary judgment in appellee’s favor.
As conceded by the parties in their respective filings both before this Court and the trial court, appellant’s arguments hinge upon whether the “Offer to Purchase” established either a binding contractual offer to sell or an agreement to purchase the subject property. Otherwise, there can be no claim for specific performance. Naturally, resolution of this dispositive issue will depend upon construing the document’s terms.
Cases in which the grant or denial of equitable relief is “merely ancillary to underlying issues of law, or would [be] a matter of routine once the underlying issues of law [are] resolved,” do not fall within the Supreme Court’s jurisdiction over “equity cases.”
Furthermore, this Court has plainly stated that it does not have jurisdiction over cases seeking the specific performance of contractual terms where the issues raised on appeal include the question of whether a valid contract was accepted or rejected.
Bernstein v. Fagelson
Appeal transferred.
Beauchamp v. Knight, 261 Ga. 608, 609 (409 SE2d 208) (1991).
See Carsello v. Touchton, 231 Ga. 878, 880 (204 SE2d 589) (1974).
Beauchamp, 261 Ga. at 610, n. 1.
166 Ga. 281 (142 SE 862) (1928).
268 Ga. 389 (489 SE2d 305) (1997).
263 Ga. 498 (435 SE2d 914) (1993).
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