Butler v. Turner

555 S.E.2d 427, 274 Ga. 566, 2001 Fulton County D. Rep. 3481, 2001 Ga. LEXIS 898
CourtSupreme Court of Georgia
DecidedNovember 19, 2001
DocketS00G1928
StatusPublished
Cited by22 cases

This text of 555 S.E.2d 427 (Butler v. Turner) 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
Butler v. Turner, 555 S.E.2d 427, 274 Ga. 566, 2001 Fulton County D. Rep. 3481, 2001 Ga. LEXIS 898 (Ga. 2001).

Opinions

Hines, Justice.

We granted certiorari to the Court of Appeals in Turner v. Butler, 245 Ga. App. 250 (537 SE2d 703) (2000), to consider: (1) whether the Court of Appeals erred in holding that a parent who assigns to the Department of Human Resources (DHR) the parent’s rights to seek child support as a condition of receiving benefits is in privity with the DHR in its action to establish a child support obligation under OCGA § 19-11-8; and (2) whether such parent may sue the other parent for fraud and deceit based on alleged misrepresentations made during the action to establish child support. For the reasons which follow, we answer in the affirmative, and consequently, reverse the judgment of the Court of Appeals.

Ardith Butler and Dale Turner had a child out of wedlock in 1984. They did not marry and Butler was the sole provider of support for the child until 1993 when she applied for public assistance from the DHR.1 Butler began receiving benefits in October 1993, and they [567]*567continued for about a year. In 1994, the DHR brought a child support recovery action against Turner in order to establish paternity, to recover support payments for the child made by the DHR, and to direct Turner to provide future support for the child. A 1995 consent order, establishing Turner as the child’s biological father, required Turner to reimburse the state in the amount of $1,057 and to pay $400 per month in child support to the Office of Child Support Enforcement. The amount of ordered child support was based on the application of statutory child support guidelines to a finding that Turner’s gross income was $2,350 per month or $28,000 per year.2

In 1997, Butler, on behalf of the child, filed a petition against Turner for upward modification of child support. Butler claimed that at the time of a 1998 hearing in the modification action, she discovered that Turner had fraudulently misrepresented his income in the DHR action.3 A temporary order entered in the modification action found Turner’s gross income in 1997 to be $300,000, and directed that his monthly child support payments be increased to $1,600 per month.4

In 1998, Butler filed suit against Turner for damages for fraud and deceit.5 She claimed that in the course of the DHR’s child support recovery action Turner fraudulently misrepresented, inter alia, his gross annual income to be $28,200, when in fact his gross annual income was in excess of $100,000, and that Turner made such fraudulent misrepresentation so that his child support obligation would be set at an amount much lower than he was legally obligated to pay.6 Butler asked for, inter alia, damages representing the difference between the child support Turner paid and the amount he should have paid and exemplary damages for Turner’s wilful and wanton acts and deceit and for his conscious indifference to the consequences of his actions.

Turner moved for a directed verdict in the fraud and deceit action on the bases that the consent judgment in the child support [568]*568recovery action was res judicata and binding until reversed or set aside and that it was then too late to set it aside because a motion to set aside a judgment because of fraud must be brought within three years of the entry of the judgment. The trial court denied the motion, ruling that the doctrine of res judicata was inapplicable because Butler was not a privy of the DHR insofar as concerned the consent judgment. The action was tried before a jury which returned a verdict in favor of Butler for $40,000 in compensatory damages and $20,000 in attorney fees and litigation expenses. The trial court denied Turner’s motion for judgment notwithstanding the verdict which was based on the same grounds argued in the motion for directed verdict.

The Court of Appeals concluded that the trial court erred in denying Turner’s motions for directed verdict and judgment notwithstanding the verdict and reversed. It reasoned that Butler and DHR were in privity in the 1994 DHR action to establish Turner’s child support obligation and, therefore, her claim was precluded by res judicata. The Court of Appeals also concluded that if Butler was not a privy of the DHR in the earlier proceeding, then she was a stranger to it and had no standing to bring the suit for fraud and deceit.

1. The Court of Appeals erred in finding privity, and thereby the bar of res judicata. The doctrine of res judicata provides that “A judgment of a court of competent jurisdiction shall be conclusive between the same parties and their privies as to all matters put in issue or which under the rules of law might have been put in issue in the cause wherein the judgment was rendered until the judgment is reversed or set aside.” OCGA § 9-12-40. That is, res judicata “prevents the re-litigation of all claims which have already been adjudicated, or which could have been adjudicated, between identical parties or their privies in identical causes of action.” Waldroup v. Greene County Hosp. Auth., 265 Ga. 864, 865 (1) (463 SE2d 5) (1995). The related doctrine of collateral estoppel, which involves issue preclusion, also requires the identity of the parties or their privies in both actions. Gwinnett County Bd. of Tax Assessors v. GE Capital Computer Svcs., 273 Ga. 175, 178 (1) (538 SE2d 746) (2000). A privy has generally been defined as one who is represented at trial and who is in law so connected with a party to the judgment as to have such an identity of interest that the party to the judgment represented the same legal right. Pinkard v. Morris, 215 Ga. App. 297, 298 (1) (450 SE2d 330) (1994). See also Waldroup v. Greene County Hosp. Auth., supra at 866, footnote 6. It has also been said that “[b]efore privity can be established, the interests of the party must fully ‘represent’ the interests of the privy and be fully congruent with those interests.” Pinkard v. Morris at 298 (1), citing Miller v. Charles, 211 Ga. App. 386, 388 (1) (439 SE2d 88) (1993).

Under this definition, Butler plainly was not a privy of the DHR [569]*569in the child support recovery action. The DHR initiated the action against Turner after Butler was required to assign her rights to the DHR. See OCGA § 19-11-6. Butler was not a plaintiff in the suit, had no control over the litigation, and expressly was not represented by the DHR. While in a support proceeding, the DHR stands, to some degree, in the shoes of the party seeking support, it does not have a complete identity of interest. Allen v. Ga. Dept. of Human Resources, 262 Ga. 521, 524 (2) (423 SE2d 383) (1992). For example, in the case of a child not receiving public assistance, the DHR, unlike the parent, is not authorized to seek modification of child support solely because of a change in either parent’s financial circumstances. Id. at 523 (2). See also Dept. of Human Resources v. Fleeman, 263 Ga. 756 (439 SE2d 474) (1994). The DHR’s purpose here was to recoup monies expended by the State on behalf of the child and to attempt to secure continuing support for the child. See OCGA §

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Bluebook (online)
555 S.E.2d 427, 274 Ga. 566, 2001 Fulton County D. Rep. 3481, 2001 Ga. LEXIS 898, Counsel Stack Legal Research, https://law.counselstack.com/opinion/butler-v-turner-ga-2001.