ARC GAMING & TECHNOLOGIES, LLC v. HIRAM IMP, INC.

CourtCourt of Appeals of Georgia
DecidedJune 2, 2025
DocketA25A0415
StatusPublished

This text of ARC GAMING & TECHNOLOGIES, LLC v. HIRAM IMP, INC. (ARC GAMING & TECHNOLOGIES, LLC v. HIRAM IMP, INC.) 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
ARC GAMING & TECHNOLOGIES, LLC v. HIRAM IMP, INC., (Ga. Ct. App. 2025).

Opinion

THIRD DIVISION DOYLE, P. J., MARKLE and PADGETT, JJ.

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

June 2, 2025

In the Court of Appeals of Georgia A25A0415. ARC GAMING & TECHNOLOGIES, LLC v. HIRAM IMP, INC. et al.

MARKLE, Judge.

Arc Gaming & Technologies, LLC a/k/a Lucky Bucks, LLC (“Arc”) is in the

business of coin-operated amusement machines (“COAMs”). Following a dispute

between Arc and Hiram Imp, Inc. and its owner, Anil Patel, (collectively “Hiram”),

concerning their COAM location agreement, Arc sought arbitration. Hiram failed to

pay its share of the arbitration fees, and Arc moved for default judgment pursuant to

OCGA § 50-27-104 (d) (2) (2021).1 The arbitration hearing officer denied Arc’s

1 Under OCGA § 50-27-102 (d) (2) (2021), when a hearing officer oversees a dispute involving COAM agreements, the parties share the costs equally “[a]nd [i]f any party fails to timely pay the costs of the hearing officer’s review within ten days of service of notice of costs by the hearing officer, the hearing officer shall grant a default judgment on liability against the nonpaying party.” motion for default judgment, and Arc sought review by the Georgia Lottery

Corporation (“GLC”). The GLC affirmed and Arc filed a timely petition for writ of

certiorari pursuant to OCGA § 5-4-6.2 The superior court denied the petition as

premature, and it remanded the case for further proceedings in arbitration. Arc

appeals, claiming that the superior court erred in concluding that its petition was

premature and not ripe for consideration. For the following reasons, we affirm.

The ownership and operation of COAMs is a highly regulated industry, governed by an extensive statutory scheme. Importantly, the GLC has jurisdiction of all disputes between and among any licensees or former licensees relating in any way to any agreement involving COAMs. Such disputes are initially referred to a hearing officer, who conducts a hearing in accordance with GLC rules, which must be consistent with the Georgia Arbitration Code. Once the hearing officer issues a decision, that decision may be appealed to the chief executive officer of the GLC. In turn, appeals from actions of the chief executive officer shall be to the Superior Court of Fulton County.

(Citations, punctuation, and footnotes omitted.) Singh et al. v. Ultra Group of

Companies, Inc., 374 Ga. App. 22, 24-25 (910 SE2d 834) (2024); see also OCGA § 50-

27-102 (d) (5) (2021). Where, as here, a case turns on statutory interpretation and

2 The General Assembly has since repealed this statute. In its place, the General Assembly enacted OCGA §§ 5-3-2 and 5-3-6, which became effective after Arc filed its petition for writ of certiorari. Under the new statutory scheme, there is “a uniform procedure” to appeal via a “petition for review.” OCGA §§ 5-3-2 (b) (1) and 5-3-6 (a). 2 resolution of questions of law, we apply a de novo standard of review. Amazing

Amusements Group v. Wilson, 353 Ga. App. 256 (835 SE2d 781) (2019).

The underlying action arises from a location agreement dispute between Arc,

the owner of certain COAMs, and Hiram, a location licensee, which allowed Arc to

operate COAMs on its properties. After Hiram notified Arc it was terminating the

contract effective May 9, 2022, Arc filed an action for injunctive relief, declaratory

judgment, breach of contract, and attorney’s fees and costs. Arc based its claim on a

location agreement that it asserted was in effect until May 2028.

Arc filed a demand for arbitration of the dispute and was referred to National

Arbitration and Mediation (“NAM”). See OCGA § 50-27-102 (d) (1) and (2) (2023)

(all disputes between master licensees, location owners, and location operators must

be referred to an arbitration hearing officer). Hiram answered and alleged that a

separate location agreement was applicable, which expired in May 2022.

While the case was proceeding in arbitration, Arc received an email, seeking

payments for the overdue balance Hiram owed for the arbitration costs. Arc contacted

Hiram to inquire whether it planned on paying the outstanding invoice. After

receiving no response, Arc paid the outstanding amount.

3 Thereafter, Arc filed a motion for default judgment as to liability against Hiram,

arguing that its failure to pay the arbitration costs resulted in an automatic default

under OCGA § 50-27-102 (d) (2) (2021). Following a hearing, the hearing officer

denied Arc’s default judgment motion, explaining that the notice of costs was not sent

by the hearing officer as required by the statute, but instead the invoice was sent by

NAM administrators. See OCGA § 50-27-102 (d) (2) (2021).

Arc timely appealed to the GLC chief executive officer. See GLC Rule 13.2.5

(a) (3) (a party “aggrieved by the Order entered by a Hearing Officer appointed under

OCGA §50-27-102 (d), may appeal by filing a Request for Reconsideration with the

Chief Executive Officer . . . no later than ten (10) days after receipt of the Order.”).

The GLC did not issue a ruling on Arc’s request within 30 days, thereby affirming the

hearing officer’s order as a matter of law. See GLC Rule 13.2.5 (1) (b) (4). Arc then

filed a timely petition for writ of certiorari pursuant to OCGA § 5-4-6.

The same day it filed its appeal with the GLC, Arc also filed a motion for

reconsideration with the hearing officer. See GLC Rule 13.2.5 (a) (1). After a hearing,

the hearing officer denied Arc’s motion for reconsideration. Arc then filed an appeal

of the denial of its motion for reconsideration with the GLC chief executive officer.

4 After no action by the GLC, the hearing officer’s decision was affirmed by operation

of law. See GLC Rule 13.2.5 (1) (b) (4). Arc filed a timely petition for review to the

superior court pursuant to OCGA § 5-3-1 et seq.

The superior court consolidated the petition for review into the petition for writ

of certiorari.3 The superior court subsequently denied Arc’s petition for writ of

certiorari as premature because the arbitration remained pending, and there was no

final judgment, as required under OCGA § 5-4-6.

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ARC GAMING & TECHNOLOGIES, LLC v. HIRAM IMP, INC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/arc-gaming-technologies-llc-v-hiram-imp-inc-gactapp-2025.