Camp v. Eichelkraut

539 S.E.2d 588, 246 Ga. App. 275, 2000 Fulton County D. Rep. 3983, 2000 Ga. App. LEXIS 1153
CourtCourt of Appeals of Georgia
DecidedSeptember 21, 2000
DocketA00A1746; A00A1747; A00A1748
StatusPublished
Cited by24 cases

This text of 539 S.E.2d 588 (Camp v. Eichelkraut) 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
Camp v. Eichelkraut, 539 S.E.2d 588, 246 Ga. App. 275, 2000 Fulton County D. Rep. 3983, 2000 Ga. App. LEXIS 1153 (Ga. Ct. App. 2000).

Opinion

Miller, Judge.

The following chronology is relevant to the disposition of these three appeals:

Jack Nicholson and Patricia Eichelkraut each owned ten percent of two closely held companies with Wayne M. Camp owning the remaining eighty percent. The companies provided forensic accounting and consulting services to surety and fidelity companies. When *276 Eichelkraut noticed questionable tax and accounting practices, she brought it to the attention of Nicholson, and they agreed to sue Camp for allegedly diverting money from the companies. On April 28, 1995, the morning of trial, Eichelkraut and Camp reached a settlement agreement which was reduced to writing and executed by all the parties a week later.

In the formal settlement agreement, they released each other and dismissed the suit. Eichelkraut and Nicholson sold their interests in the businesses to Camp and his companies in exchange for payments of $145,000 and $175,000, respectively. All parties agreed to a “NON-DISPARAGEMENT” provision whereby they would “cease and refrain from making any disparaging or defamatory remarks or comments regarding one another. . . .” This was understood by the parties to prohibit even truthful statements that put another in a bad light. And, in a “CONFIDENTIALITY” provision, they promised “not to disclose, directly or indirectly, any financial information . . . previously obtained,” except as may be required pursuant to valid order or subpoena of a court of competent jurisdiction or at the request of a government regulatory agency. They also agreed to a mutual exchange or return of personal property, whereby Camp was entitled to “retrieve” any “original business records, [R]olodexes, diaries and computer disks” believed to be in Nicholson’s or Eichelkraut’s possession. At the time the agreement was executed, Nicholson’s attorney (and Eichelkraut’s former attorney) possessed a box of documents consisting of corporate documents, business records, and files Nicholson and Eichelkraut had copied from the office files. Nicholson and Eichelkraut warranted that they had not “copied any original (or copies thereof) documents which they are tendering back. ...”

Meanwhile, Monte Green, a former employee fired by Camp for allegedly befriending Nicholson and Eichelkraut, decided to inform the police that Camp’s businesses were engaged in illegal activities. Before contacting the police, Green attempted to enlist Nicholson’s help. Nicholson declined, but alerted Eichelkraut that Green was contacting the police. Eichelkraut contacted Camp to alert him.

Green informed the Douglasville Chief of Police, Joe Whisenant, that he had reason to believe Camp was guilty of some kind of fraudulent behavior involving the Safeco and Continental insurance companies, and that Nicholson had information that could help with any investigation. In three interviews with police, including an interview with fraud investigators for the sureties Safeco and Continental present, Green outlined his suspicions that Camp was involved in fraud.

As a result of the tip from Green, Chief Whisenant telephoned Nicholson and “asked him to come in and see [him],” in order to con *277 firm or deny Green’s allegations. Nicholson refused to talk of any specifics without a subpoena, although he explained generally how the surety business works. Nicholson also gave Chief Whisenant the names of trustworthy contacts with the sureties. In response to a subpoena for the production of evidence in a grand jury criminal investigation, Nicholson (or his counsel) provided the police with the box of documents (invoices and time sheets, etc.) used by Eichelkraut and Nicholson in their first suit against Camp. After he testified before the grand jury, Nicholson was twice summoned back to Chief Whisenant’s office, where he spoke with Safeco and Continental representatives as well as the police. While insisting that he truthfully answered all questions posed to him, Nicholson also conceded his truthful answers were disparaging of Camp.

In September 1995, Eichelkraut composed and Nicholson edited three anonymous letters, one sent to a federal judge who had appointed Camp as a bankruptcy trustee or administrator in an interpleader action against a fidelity bond, one sent to the ethics committee of the Georgia Society of Certified Public Accountants, and the third sent to the business editor of an Atlanta newspaper, all referencing the Douglas County police investigation of Camp for alleged insurance fraud.

In response, Camp brought the instant action against Nicholson and Eichelkraut alleging breach of the nondisparagement clause and other provisions of the settlement agreement and also for tortious interference with contractual and business relations. Nicholson and Eichelkraut counterclaimed for breach of contract (nonpayment), disparagement, and interference with contractual and business relations. In an earlier appeal, this Court affirmed the grant of partial summary judgment to Camp, holding the three letters violated the nondisparagement section of the settlement agreement 1 and were not privileged under OCGA § 51-5-7 in Camp’s contract claim. 2

On remand, the case went to a jury to determine Camp’s damages and to decide the counterclaims. The trial court directed a verdict that Nicholson breached the financial confidentiality and nondisparagement covenants of the settlement agreement by speaking with representatives of Safeco and Continental. The court further directed a verdict that Nicholson and Eichelkraut breached the promise to return all personal belongings, memorabilia, and original records.

In special interrogatories, the jury returned verdicts against Eichelkraut for breach of contract ($145,000), against Nicholson for breach of contract ($175,000), against Eichelkraut for tortious inter *278 ference with business relations (in favor of the companies now wholly owned by Camp for $100,000 total), but further in favor of both Eichelkraut and Nicholson against Camp on their counterclaims for tortious interference with business relations ($240,000 and $276,753, respectively). 3 The trial judge initially granted Camp’s motion for judgment notwithstanding the verdict on the tortious interference claims of Eichelkraut and Nicholson, but later vacated this decision and reinstated the verdicts on those claims.

From the final judgment on the jury’s verdicts, all three parties appeal. In Case No. A00A1746, Camp enumerates as error the denial of his motion for j.n.o.v. as to the damages assessed against him for tortious interference. In Case No. A00A1747, Eichelkraut enumerates the direction of the verdicts against her for breach of contract and the denial of her motion for j.n.o.v. regarding tortious interference. In Case No. A00A1748, Nicholson enumerates the direction of the verdicts against him on Camp’s breach of contract claims. The cases are hereby consolidated for disposition on appeal.

1. Tortious Interference.

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Bluebook (online)
539 S.E.2d 588, 246 Ga. App. 275, 2000 Fulton County D. Rep. 3983, 2000 Ga. App. LEXIS 1153, Counsel Stack Legal Research, https://law.counselstack.com/opinion/camp-v-eichelkraut-gactapp-2000.