City of Atlanta v. BENATOR

714 S.E.2d 109, 310 Ga. App. 597
CourtCourt of Appeals of Georgia
DecidedJuly 6, 2011
DocketA11A0769, A11A0770, A11A0771, A11A0772
StatusPublished
Cited by30 cases

This text of 714 S.E.2d 109 (City of Atlanta v. BENATOR) 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
City of Atlanta v. BENATOR, 714 S.E.2d 109, 310 Ga. App. 597 (Ga. Ct. App. 2011).

Opinion

Smith, Presiding Judge.

The consolidated cases in this interlocutory appeal come from a putative class action filed against the city of Atlanta (“the city”), K & V Meter Automation, LLC (“K & V”), Khafra Operations, LLC (“Khafra”), Metals & Materials Engineers, LLC (“MME”), and Neptune Technology Group, Inc. (“Neptune”) 1 by residents who claim they were overcharged for water and sewage use. For the reasons set forth below, we affirm in part, and reverse in part in Case No. A11A0769; affirm in Case No. A11A0770, affirm in part, and reverse in part in Case No. A11A0771; and affirm in part, and reverse in part in Case No. A11A0772.

In their complaint against the defendants, the plaintiffs assert that they were overcharged for water consumption by the city after the city’s contractors (K & V and MME) installed new automatic meter reading technology designed to transmit meter readings to mobile or hand-held devices. They assert that “a programming malfunction in computer software provided by K & V . . . caused a large number of meters to miscalculate water usage . . . ”; that K & V and MME “failed to properly calibrate registers to correspond with the size of meters they were intended to read”; that Khafra improperly estimated water usage; and that the city was refusing to hear appeals from its water customers despite ostensibly providing an appeal process. The plaintiffs also assert that the city

failed to perform a proper investigation and survey of the existing meters prior to starting the project, causing the wrong equipment to be ordered and installed. Of the newly installed or refurbished meters sampled by auditors, more than 75% were found to be damaged in some way. Furthermore, the new meters which were functioning were found to be accurate only 87% of the time, far less than the 100 percent promised by the city.

After filing responsive pleadings, the city, K & V, Khafra, and MME *598 filed motions to dismiss the complaint. In a single order, the trial court granted in whole or in part, and denied in whole or in part the various motions. The trial court granted a certificate of immediate review to MME, the plaintiffs, and the city, and this court granted the parties’ applications for interlocutory review.

In Case No. A11A0769, the city asserts the trial court erred by (1) denying its motion to dismiss each named plaintiff in the putative class action who failed to provide an ante litem notice under OCGA § 36-33-5; and (2) denying its motion to dismiss three counts in the complaint that do not seek money damages under OCGA § 36-33-5. In Case No. A11A0770, the putative class plaintiffs assert the trial court erred by concluding (1) that they were not third-party beneficiaries of the contracts between the city and its contractors (K & Y MME, and Khafra); and (2) that the economic loss rule precluded their negligence claims. In Case Nos. A11A0771 and A11A0772, the city’s contractors contend the trial court erred by denying their motion to dismiss the city’s cross-claims for indemnity and contribution as well as its claim for attorney fees.

Case No. A11A0769

1. The city asserts that the trial court should have granted its motion to dismiss all of the named plaintiffs who failed to provide the required ante litem notice under OCGA § 36-33-5. This statute provides, in relevant part:

(a) No person, firm, or corporation having a claim for money damages against any municipal corporation on account of injuries to person or property shall bring any action against the municipal corporation for such injuries, without first giving notice as provided in subsection (b) of this Code section.
(b) Within six months of the happening of the event upon which a claim against a municipal corporation is predicated, the person, firm, or corporation having the claim shall present the claim in writing to the governing authority of the municipal corporation for adjustment, stating the time, place, and extent of the injury, as nearly as practicable, and the negligence which caused the injury. No action shall be entertained by the courts against the municipal corporation until the cause of action therein has first been presented to the governing authority for adjustment.
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*599 The record shows that the ante litem notice sent to the city by the named plaintiffs’ current counsel stated:

The persons filing claims will include at least Mrs. Lisa Cervera Webb and a class of currently unnamed plaintiffs. The class will consist of persons who have been victim to the City Water Department’s erroneous billing practices. . . . Atlanta resident Mrs. Webb has been over-billed an amount in excess of $2,500 over the past few months. Hundreds of other residents have suffered identical treatment.

According to the city, the only named plaintiff for whom this notice was adequate was Mrs. Webb. Because the other named plaintiffs failed to provide the required ante litem notice, the city argues its motion to dismiss those plaintiffs should have been granted.

This is an issue of first impression in Georgia, but existing case law provides guidance. Notice under the ante litem statute must be provided separately for each individual plaintiff in a non-class action lawsuit. See, e.g., Goen v. City of Atlanta, 224 Ga. App. 484, 485-486 (1) (481 SE2d 244) (1997) (rejecting claim that notice provided by a different plaintiff in another case “on behalf of the named plaintiff in that case and all other persons similarly situated” provided adequate notice under the ante litem statute for a plaintiff in a separate lawsuit). But with regard to analogous prerequisites to suit, action taken by a named plaintiff or plaintiffs is sufficient to satisfy the requirement for other unnamed class members generally. See Schorr v. Countrywide Home Loans, 287 Ga. 570, 571 (697 SE2d 827) (2010) (pre-litigation written demand for liquidated damages under former OCGA § 44-14-3); Barnes v. City of Atlanta, 281 Ga. 256, 257-258 (1) (637 SE2d 4) (2006) (pre-litigation claim for tax refund under OCGA § 48-5-380).

Based upon this law, the city concedes that all members of any class certified in the future would be entitled to participate as general class members. See id. It takes issue, however, with the named plaintiff (Webb) contending that she may represent the interests of other named plaintiffs without class certification and in the absence of an ante litem notice naming each plaintiff. Based upon the public policy expressed in both OCGA § 36-33-5

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Bluebook (online)
714 S.E.2d 109, 310 Ga. App. 597, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-atlanta-v-benator-gactapp-2011.