Justia Georgia Supreme Court Opinion Summaries

In October 2022, Starship Enterprises of Atlanta, Inc. filed a lawsuit against Gwinnett County, challenging a 2015 county ordinance regulating "Adult Establishments." Starship, which owns two stores in Gwinnett County, had previously filed a similar lawsuit in 2017, which it voluntarily dismissed. The county, however, maintained its counterclaim, and the trial court granted the county a permanent injunction restraining Starship from "regularly making more than 100 sexual devices available for sale" at each of its locations. Starship appealed the decision, but the Court of Appeals affirmed the trial court’s grant of a permanent injunction against Starship.In the second lawsuit, Starship invoked a constitutional amendment that waives sovereign immunity for certain lawsuits, including lawsuits against a county for declaratory judgment and related injunctive relief. The trial court dismissed Starship’s lawsuit, holding that it was barred by sovereign immunity and by res judicata. Starship appealed to the Court of Appeals, which transferred the case to the Supreme Court of Georgia due to the novel constitutional question involved.The Supreme Court of Georgia concluded that although the constitutional waiver of sovereign immunity applied to Starship’s lawsuit, the suit was barred by res judicata. The court found that Starship's lawsuit sought relief from the county's prospective acts of enforcement, which will occur after January 1, 2021, and therefore the county’s sovereign immunity was waived under the constitutional amendment. However, the court also found that the lawsuit was barred by res judicata because the constitutional matters Starship now sought to raise could have been raised in the previous lawsuit. Therefore, the court affirmed the trial court’s order dismissing the lawsuit. View "STARSHIP ENTERPRISES OF ATLANTA, INC. v. GWINNETT COUNTY" on Justia Law

In the case before the Supreme Court of Georgia, Premier Pediatric Providers, LLC was sued by Kennesaw Pediatrics, P.C. for access to its business records. The lower court granted Kennesaw Pediatrics summary judgment, which Premier appealed. Under state law, Premier had 30 days to file the hearing transcript as part of the appeal record, which it failed to do. Months later, Kennesaw Pediatrics moved to dismiss the appeal citing Premier's inexcusable and unreasonable delay in filing the transcript. Premier countered by filing the transcript and explaining that it had mistakenly believed the transcript was filed shortly after the notice of appeal. The trial court found the delay not inexcusable and denied Kennesaw Pediatrics' motion to dismiss. However, the Court of Appeals reversed the trial court's order and dismissed the appeal. The Supreme Court of Georgia granted review to clarify the standard for appellate review of a trial court’s decision whether to dismiss an appeal under state law and to assess whether the Court of Appeals correctly applied the statute.The Supreme Court of Georgia vacated in part and reversed in part the Court of Appeals’ decision. The court held that the Court of Appeals correctly noted that the trial court’s order was subject to review for abuse of discretion. However, the Supreme Court disagreed with the Court of Appeals' conclusion that the trial court abused its discretion in denying Kennesaw Pediatrics’s motion to dismiss the appeal. The Supreme Court also clarified that an appellate court may not dismiss an appeal based on the failure to timely file a transcript. Instead, the statute gives the trial court discretion to decide whether to dismiss an appeal. View "PREMIER PEDIATRIC PROVIDERS, LLC v. KENNESAW PEDIATRICS, P.C." on Justia Law

The Georgia Supreme Court granted certiorari in this case to decide whether revenue generated from the lease of a bona fide coin operated amusement machine (“COAM”) qualified as “gross revenues” exempt from taxation under OCGA § 48-8-3 (43). Funvestment Group, LLC, the lessee of the COAMs at issue and the owner of the location where the COAMs were available for play, argued that revenues generated from the lease of COAMs were considered “gross revenues” exempt from sales and use tax. The Court of Appeals concluded that the subject lease revenues were not “gross revenues” and that the exemption only applied to money inserted into COAMs for play. The Supreme Court concluded the Court of Appeals erred in reaching this conclusion, and thus reversed the Court of Appeals' judgment. View "Funvestment Group, LLC v. Crittenden" on Justia Law

The petitioners here—two motorcycle dealerships who sought to enforce restrictive covenants against a former employee under Florida law— asked the Georgia Supreme Court to reconsider the application of a public-policy exception, citing recent changes in Georgia law that required a more flexible and permissive approach to enforcing restrictive covenants. When contracting parties choose the law of a jurisdiction other than Georgia to govern their contractual relations, Georgia courts generally honored that choice unless applying the foreign law would violate Georgia's public policy. Having taken a fresh look, the Supreme Court concluded that Georgia law remained "the touchstone for determining whether a given restrictive covenant is enforceable in our courts, even where the contract says another state’s law applies." After a careful review of Georgia decisional law and statutory history in this space, the Court found the Georgia legislature has codified this view, including with the recent enactment of the Georgia Restrictive Covenants Act. In this case, the trial court accepted the parties’ choice of Florida law to govern the employment contracts at issue without first determining whether the restrictive covenants in the contracts complied with the GRCA. The Court of Appeals reversed, and in doing so, correctly identified application of the GRCA as the first step in the analysis of whether the public-policy exception overrides the parties’ choice of foreign law. But because the Supreme Court set out a clear framework for that analysis in this opinion, it left it for the trial court to apply that framework in the first instance. The Court therefore vacated the decisions below for further review by the trial court. View "Motorsports of Conyers, LLC, et al. v. Burbach" on Justia Law

Three cases presented an opportunity for the Georgia Supreme Court to explore the scope and nature of the liability faced by premises owners, occupiers, and security contractors in cases involving personal injuries arising from third-party criminal conduct. Although the underlying appeals varied with respect to their facts and specific issues presented, the resolution of each appeal "necessitates consideration of fundamental principles of premises liability under Georgia law." The Court clarified that the reasonable foreseeability of a third-party criminal act is a determination linked to a proprietor’s duty to keep the premises and approaches safe under OCGA § 51-3-1, and that the totality of the circumstances informs whether a third-party criminal act was reasonably foreseeable. Moreover, the question of reasonable foreseeability is generally reserved to the trier of fact, but the trial court may resolve the issue as a matter of law where no rational juror could determine the issue in favor of the non-moving party. View "Georgia CVS Pharmacy, LLC v. Carmichael" on Justia Law

The three plaintiffs in this case had each rented rooms at an extended-stay motel for some time. They fell behind on their rent and were threatened with immediate eviction. They sued to stop that from happening, claiming that they were in a landlord-tenant relationship with the motel and could not be evicted without dispossessory proceedings in court. The motel argued that it had signed agreements with the plaintiffs that foreclosed their claims because, among other things, the agreement stated that their relationship was one of “Innkeeper and Guest,” and “not . . . Landlord and Tenant.” The trial court agreed with plaintiffs, and the Court of Appeals affirmed. After its review, the Georgia Supreme Court vacated the appellate court's opinion and remanded with direction for the trial court to determine the parties' relationship under the proper legal framework. View "Efficiency Lodge, Inc. v. Neason, et al." on Justia Law

In 2012, Southern States Chemical, Inc. and Southern States Phosphate and Fertilizer Company (collectively, “Southern States”) sued Tampa Tank & Welding, Inc. (“Tampa Tank”) and Corrosion Control, Inc. (“CCI”), claiming damages from a faulty, leaky storage tank that Tampa Tank had installed in 2002. After a decade of litigation and multiple appeals, the trial court dismissed Southern States’s claims with prejudice, concluding that the claims were barred by the applicable statute of repose. Southern States appealed, but finding no reversible error in the trial court's judgment, the Georgia Supreme Court affirmed dismissal. View "Southern States Chemical, Inc. et al. v. Tampa Tank & Welding, Inc." on Justia Law

In November of 2020, the people of Georgia, through the results of a ballot question posed in the general election, amended the State Constitution to allow for a specific waiver of sovereign immunity. This new waiver allowed citizens to sue the State for declaratory relief ("Paragraph V"). To the extent that citizens obtain a favorable ruling on their claim for declaratory relief, they could then also seek injunctive relief to “enforce [the court’s] judgment.” To take advantage of this new waiver of the doctrine of sovereign immunity, however, the Constitution provided that such actions had to be brought “exclusively” against the State. When a plaintiff’s suit violated this exclusivity provision, the Constitution required the suit be dismissed. In the underlying appeal, the plaintiffs’ suit named a defendant for whom a waiver was not provided by Paragraph V. Accordingly, the Constitution required the suit to be dismissed. The Georgia Supreme Court therefore vacated the trial court’s grant of an interlocutory injunction, reversed the denial of the State’s motion to dismiss, and remanded this case with direction that it be dismissed. View "Georgia, et al. v. Sass Group, LLC et al." on Justia Law

This case involved Google LLC’s application of internet search algorithms, which it used to auction off search terms for profit to advertisers, and the interests of Edible IP, LLC, which sought to exercise control over the profit generated from its trade name and associated goodwill. In 2018, Edible IP brought an action against Google arising from Google’s monetization of the name “Edible Arrangements” without permission in its keyword advertising program. Google moved to dismiss the complaint, or in the alternative, to compel arbitration. The trial court granted the motion, dismissing the complaint on several grounds, including that it failed to state a claim, and alternatively compelling the parties to arbitration. Edible IP appealed that order, and the Georgia Court of Appeals affirmed the dismissal for failure to state a claim. The Georgia Supreme Court granted certiorari to address whether the trial court properly granted Google’s motion to dismiss, and after review, affirmed, finding Edible IP did not state a cognizable claim for relief. View "Edible IP, LLC v. Google, LLC" on Justia Law

InComm Financial Services issued pre-paid debit and credit cards under the “Vanilla VISA” brand to cardholders who use the cards to buy goods and services. Global Payments, Inc. was a financial data payment processor. Thieves purchased Vanilla VISA pre-paid debit and credit cards and used them to buy goods and services. Then, using certain merchants that were not the merchants who originally sold the goods and services, the thieves initiated counterfeit electronic “reversal transactions” – basically requests for refunds on behalf of the cardholders. Upon receiving the reversal transaction data from the merchants, Global relayed the data to the VISA network. The VISA network then submitted the reversal transaction data to InComm. InComm received the data, posted the reversal transactions to the cardholder accounts, and then issued credits to the merchants who, in turn, passed the credits on to the thieves holding the Vanilla VISA cards. The thieves then converted those credits (in excess of $1.5 million made over 3,600 transactions) to their use. InComm did not allege that Global participated in creating the counterfeit reversal transactions. InComm asserted that Global was liable for the losses InComm suffered as a consequence of those transactions because Global negligently supplied to the VISA network the data created by the reversal merchants. In support of its claim, InComm asserted that Global, as a payment processor, “had a duty to exercise reasonable care in supplying the VISA Network and its participants with the transactions initiated by the Reversal Merchants.” The Court of Appeals reversed the trial court's order dismissing InComm's negligent misrepresentation claim against Global. Global's petition for certiorari review was granted, and the Georgia Supreme Court concluded that because the allegations of the complaint showed that Global merely transmitted data concerning debit and credit card transactions without representing that the transactions were legitimate, the Court of Appeals erred, and the Supreme Court therefore reversed. View "Global Payments, Inc. v. InComm Financial Services, Inc." on Justia Law