Alston & Bird, LLP v. Hatcher Management Holdings, LLC

862 S.E.2d 295, 312 Ga. 350
CourtSupreme Court of Georgia
DecidedAugust 10, 2021
DocketS20G1419
StatusPublished
Cited by19 cases

This text of 862 S.E.2d 295 (Alston & Bird, LLP v. Hatcher Management Holdings, LLC) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alston & Bird, LLP v. Hatcher Management Holdings, LLC, 862 S.E.2d 295, 312 Ga. 350 (Ga. 2021).

Opinion

312 Ga. 350 FINAL COPY

S20G1419. ALSTON & BIRD, LLP v. HATCHER MANAGEMENT HOLDINGS, LLC.

PETERSON, Justice.

We interpret statutory text in the light of the text’s broader

context, both within and without the statute. But we consider that

context only for the light that it sheds on the meaning of the relevant

text; it does not empower us to delete some words and insert others.

And so when we interpret unambiguous statutory text that appears

not to serve the purpose we imagine the statute to have, we must

follow the path of the text, not the apparently different path of the

“purpose.”

And so it is here. The current version of the apportionment

statute, OCGA § 51-12-33, was enacted as part of the Tort Reform

Act of 2005. See Ga. L. 2005, pp. 1, 15, § 12; see also Clark v. Rush,

312 Ga. App. 333, 333 (718 SE2d 555) (2011). Subsection (a) of the

apportionment statute provides that “[w]here an action is brought against one or more persons for injury to person or property[,]” the

total amount of damages otherwise awarded to the plaintiff shall be

reduced in proportion to the plaintiff’s fault. Subsection (b), at first

glance, appears to serve a similar function as to the fault of others:

it requires damages to be apportioned “among the persons who are

liable according to the percentage of fault of each person.” But

subsection (b) has a critical textual difference from subsection (a):

although subsection (a) applies “[w]here an action is brought against

one or more persons[,]” subsection (b) applies only “[w]here an action

is brought against more than one person . . . .”

Although we previously have decided at least one case in which

the provisions of subsection (b) were applied in single-defendant

cases, we have expressly left open the question of whether such an

application was proper. See Zaldivar v. Prickett, 297 Ga. 589, 593

(1) n.3 (774 SE2d 688) (2015) (in a single-defendant case, noting on

certiorari that plaintiff did not dispute the statute’s application, and

“[t]o the extent that [plaintiff] may have argued below that the

statute simply does not apply in this case, we express no opinion

2 about the merit of that argument, and we leave any such argument

to be addressed on remand”). In this case, the Court of Appeals

answered that open question by determining that the

apportionment by percentage of fault directed by subsection (b) does

not apply in single-defendant cases.

We granted certiorari on the question of whether subsection (b)

applies in single-defendant cases and also on the question of

whether an expenses-of-litigation award under OCGA § 13-6-11 is

subject to apportionment. Although we reverse the Court of Appeals

on the latter question and hold that such expenses are not

categorically excluded from apportionment, we conclude that the

Court of Appeals was correct on the scope of application of the

apportionment directed by subsection (b): it applies only in cases

“brought against more than one person,” not in single-defendant

lawsuits like this one. Thus, we affirm in part, reverse in part, and

remand for further proceedings regarding the trial court’s

apportionment of the expenses-of-litigation award.

1. Background.

3 The basic facts in this case are summarized accurately by the

Court of Appeals in Alston & Bird LLP v. Hatcher Management

Holdings, LLC, 355 Ga. App. 525 (843 SE2d 613) (2020) (“Hatcher

II”). Maury Hatcher hired Alston & Bird LLP (“A&B”), and one of its

partners, Jack Sawyer, to form and represent Hatcher Management

Holdings, LLC (“HMH”), a holding company for the assets of the

Hatcher family. See id. at 526. Maury was the initial manager of

HMH and, while serving as manager, embezzled substantial

amounts of company funds. See id. at 527. HMH sued Maury in 2009

and in 2013 won a judgment of over $4 million, but was unable to

collect it. See id. at 528.

In May 2012, after a judge granted partial summary judgment

to HMH in its case against Maury but before that case had been fully

resolved, HMH sued A&B in a separate action for legal malpractice

and breach of fiduciary duty relating to Sawyer’s representation of

HMH. HMH also sought expenses of litigation under OCGA § 13-6-

11, arguing, in relevant part, that A&B acted in bad faith. A&B filed

a notice of nonparty fault pursuant to OCGA § 51-12-33 (d), seeking

4 to apportion any damages among HMH and nonparty Maury, but

the trial court granted HMH’s motion to strike the notice. See Alston

& Bird LLP v. Hatcher Mgmt. Holdings, LLC, 336 Ga. App. 527, 527

(785 SE2d 541) (2016) (“Hatcher I”). A&B applied for and was

granted an interlocutory appeal, and the Court of Appeals reversed,

citing Zaldivar, 297 Ga. at 604 (2), to conclude that the trier of fact

could assign “fault” to a nonparty under OCGA § 51-12-33 (c) to the

extent that A&B could prove that the nonparty committed a breach

of legal duty that was a proximate cause of HMH’s injuries. See

Hatcher I, 336 Ga. App. at 530.

In 2018, a jury found A&B liable for both legal malpractice and

breach of fiduciary duty and awarded to HMH $697,614 in

compensatory damages, $341,831 in interest, and $1,096,561.48 in

expenses of litigation under OCGA § 13-6-11, for a total award of

$2,136,006.48. See Hatcher II, 355 Ga. App. at 529. The jury

apportioned fault for A&B at 32%, HMH at 8%, and nonparty Maury

at 60%. See id. The trial court then reduced the total damages award

by 68% in accordance with the amount of fault allocated to Maury

5 and HMH, and ordered A&B to pay 32% of the total damages award,

which amounted to $683,522.07. See id.

A&B appealed to the Court of Appeals, arguing that there was

insufficient evidence on proximate cause and that the trial court

erred in submitting the issue of prejudgment interest to the jury.

HMH cross-appealed and argued that the trial court erred by

reducing the compensatory damages award based on a nonparty’s

percentage of fault and also by apportioning the OCGA § 13-6-11

award based on the percentages of fault of the plaintiff and a

nonparty.

The Court of Appeals agreed with A&B regarding the issue of

prejudgment interest, but it affirmed the jury’s verdict and agreed

with HMH on both of its cross-claims. See Hatcher II, 355 Ga. App.

at 526. As to HMH’s first claim regarding apportionment of

damages, the Court of Appeals held that subsection (a) was the

applicable portion of the apportionment statute and not subsection

(b), because subsection (b) applies only to suits brought against

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862 S.E.2d 295, 312 Ga. 350, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alston-bird-llp-v-hatcher-management-holdings-llc-ga-2021.