Accelerated Claims, Inc v. Howell & Johnson, LLC

CourtCourt of Appeals of Georgia
DecidedJanuary 25, 2021
DocketA20A1860
StatusPublished

This text of Accelerated Claims, Inc v. Howell & Johnson, LLC (Accelerated Claims, Inc v. Howell & Johnson, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Accelerated Claims, Inc v. Howell & Johnson, LLC, (Ga. Ct. App. 2021).

Opinion

FOURTH DIVISION DILLARD, P. J., RICKMAN, P. J., and BROWN, J.

NOTICE: Motions for reconsideration must be physically received in our clerk’s office within ten days of the date of decision to be deemed timely filed. https://www.gaappeals.us/rules

DEADLINES ARE NO LONGER TOLLED IN THIS COURT. ALL FILINGS MUST BE SUBMITTED WITHIN THE TIMES SET BY OUR COURT RULES.

January 5, 2021

In the Court of Appeals of Georgia A20A1860. ACCELERATED CLAIMS, INC. v. HOWELL & JOHNSON, LLC.

BROWN, Judge.

We granted the application for discretionary appeal of Accelerated Claims, Inc.

(“ACI”), to review the trial court’s post-dismissal order (1) granting non-party Howell

& Johnson, LLC’s motion to enforce a judgment requiring ACI to pay $8,100 in

attorney fees to Howell & Johnson pursuant to OCGA § 9-11-37 for a discovery

dispute, and (2) awarding an additional $4,500 in attorney fees to Howell & Johnson

pursuant to OCGA § 9-15-14. For the reasons that follow, we reverse in part and

vacate in part.

The relevant facts show that Jeffery Hutchins filed a class-action suit against

ACI and two other defendants, Piedmont Athens Regional Medical Center and The Gibson Firm, alleging a fraudulent scheme to recover statutory hospital liens.1 During

discovery, ACI sought to compel non-party law firm Howell & Johnson to produce

the legal file related to its representation of Hutchins in an unrelated personal injury

action resulting from a car accident in 2014. According to ACI, the file was relevant

because the claims asserted in the instant class action suit stemmed from the medical

treatment Hutchins received as a result of the accident. On July 16, 2019, the trial

court found the motion to compel was without justification, and ordered ACI to pay

Howell & Johnson $8,100 in attorney fees under OCGA § 9-11-37 (4) (b). ACI

requested a certificate of immediate review of the order or, in the alternative, to have

the order entered in accordance with OCGA § 9-11-54. The trial court refused both

requests.

On October 17, 2019, Hutchins voluntarily dismissed his complaint without

prejudice under OCGA § 9-11-41 (a). A week later, Piedmont Athens Regional

Medical Center dismissed its counterclaims under OCGA § 9-11-41 (c). On

November 27, 2019, Howell & Johnson filed a motion to enforce order, asking the

trial court to enforce the July 2019 award of attorney fees and to require ACI to pay

1 There is no evidence in the record that the action was ever certified as a class action under OCGA § 9-11-23.

2 the $8,100 in attorney fees. Howell & Johnson also sought payment of an additional

$4,500 in attorney fees for having to file the motion to enforce. ACI objected to the

motion, arguing that the trial court was divested of jurisdiction to enter such an order

because the voluntary dismissal extinguished the case. On March 4, 2020, the trial

court entered an order requiring ACI to pay the $8,100 in attorney fees, which it had

awarded under OCGA § 9-11-37, and assessed an additional $4,500 in attorney fees

under OCGA § 9-15-14 (b). ACI filed an application for discretionary review of the

March 4, 2020 order, which this Court granted.

1. ACI contends that the trial court erred in entering the order enforcing its

award of sanctions under OCGA § 9-11-37 because its jurisdiction had been

terminated by the prior voluntary dismissal of the case under OCGA § 9-11-41. We

agree.

As this Court has held, “[a] voluntary dismissal under OCGA § 9-11-41 (a) is

a matter of right and terminates the action.” (Citation and punctuation omitted.)

Gallagher v. Fiderion Group, 300 Ga. App. 434, 435-436 (1) (685 SE2d 387) (2009).

[T]he effect of a dismissal is so complete that a suit dismissed without prejudice pursuant to OCGA § 9-11-41 leaves the situation the same as if the suit had never been brought in the first place. Thus, it operates to divest the court of jurisdiction, after which the trial court has no

3 authority to enter additional orders, with the possible exception of OCGA § 9-15-14 awards. . . .

(Citations and punctuation omitted.) Id. at 436. “[B]ecause [a] dismissal divests the

court of jurisdiction, orders entered subsequent to the dismissal are deemed a nullity.”

Id. Accordingly, we vacate that portion of the trial court’s order entered on March 4,

2020, granting Howell & Johnson’s motion to enforce.

The trial court relied on Collier v. D & N Trucking Co, 273 Ga. App. 271 (614

SE2d 801) (2005), to conclude that it had the authority to enforce the attorney fee

award here because a trial court “retains jurisdiction [over a voluntarily dismissed

case] for the purpose of enforcing its decrees.” (Citation and punctuation omitted.)

Id. at 272. But, Collier is distinguishable because, unlike the present case, it involved

a proceeding on a motion for contempt. Id. See Carden v. Carden, 266 Ga. App. 149,

150 (1) (596 SE2d 686) (2004) (“The contempt remedy is part of the judiciary’s

inherent power to enforce its orders. As such, an action for contempt is ancillary to

the primary action and is characterized as a motion and not a pleading.”) (footnotes

omitted). See also Brown v. King, 266 Ga. 890, 891 (1) (472 SE2d 65) (1996)

(contempt action is an independent proceeding ancillary to the underlying action).

4 Our ruling should not be interpreted as agreeing with ACI’s contention that the

trial court’s July 16, 2019 ruling, awarding sanctions to Howell & Johnson pursuant

to OCGA § 9-11-37, was extinguished by the voluntary dismissal of the case. Cf.

Gallagher, 300 Ga. App. at 436 (holding that upon dismissal of a case, all prior

orders that were entered in the case are superseded and can no longer be enforced).

Quite the contrary, an award of sanctions under OCGA § 9-11-37 is not an order;

rather, as this Court recently reiterated, “a ruling on a motion for sanctions is a

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Related

Carden v. Carden
596 S.E.2d 686 (Court of Appeals of Georgia, 2004)
Gallagher v. Fiderion Group, LLC
685 S.E.2d 387 (Court of Appeals of Georgia, 2009)
Brown v. King
472 S.E.2d 65 (Supreme Court of Georgia, 1996)
Collier v. D & N TRUCKING CO., LLC
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