COEN v. APTEAN, INC. Et Al.

816 S.E.2d 64
CourtCourt of Appeals of Georgia
DecidedJune 4, 2018
DocketA18A0522
StatusPublished
Cited by6 cases

This text of 816 S.E.2d 64 (COEN v. APTEAN, INC. Et Al.) 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
COEN v. APTEAN, INC. Et Al., 816 S.E.2d 64 (Ga. Ct. App. 2018).

Opinion

Barnes, Presiding Judge.

Timothy F. Coen appeals the trial court's order dismissing his complaint alleging abusive litigation against his former employer, the employer's law firm, and several other defendants. The complaint alleged that the defendants engaged in abusive litigation under OCGA § 51-7-80 et seq. based on their conduct and tactics in a prior lawsuit and sought damages for mental distress under OCGA § 51-12-6 and punitive damages under OCGA § 51-12-5.1. The trial court dismissed the complaint for failure to state a claim upon which relief could be granted because it lacked allegations of special damages sustained by Coen and because punitive damages were not available for statutory abusive litigation claims.

For the reasons set forth below, we conclude that a plaintiff pursuing a statutory abusive litigation claim is not required to plead special damages and instead can elect to seek general damages for mental distress under OCGA § 51-12-6 for a defendant's malicious, wilful, or wanton misconduct in the underlying litigation. In contrast, we conclude that, as established by our precedent, a plaintiff cannot recover punitive damages under OCGA § 51-12-5.1 for a statutory abusive litigation claim. Accordingly, we affirm in part and reverse in part the trial court's dismissal of Coen's complaint for abusive litigation.

*68 We begin with the well-settled standard that a motion to dismiss for failure to state a claim upon which relief may be granted should not be sustained unless (1) the allegations of the complaint disclose with certainty that the claimant would not be entitled to relief under any state of provable facts asserted in support thereof; and (2) the movant establishes that the claimant could not possibly introduce evidence within the framework of the complaint sufficient to warrant a grant of the relief sought. If, within the framework of the complaint, evidence may be introduced which will sustain a grant of the relief sought by the claimant, the complaint is sufficient and a motion to dismiss should be denied. In deciding a motion to dismiss, all pleadings are to be construed most favorably to the party who filed them, and all doubts regarding such pleadings must be resolved in the filing party's favor. On appeal, a trial court's ruling on a motion to dismiss for failure to state a claim for which relief may be granted is reviewed de novo.

(Citations and punctuation omitted.) RES-GA McDonough, LLC v. Taylor English Duma LLP , 302 Ga. 444 , 445-446, 807 S.E.2d 381 (2017). Guided by these principles, we turn to the record in the present case.

The Contract Lawsuit. The allegations of abusive litigation relate to a breach of contract lawsuit that Coen filed in 2012 against his former employer, CDC Software Corporation, in the State Court of DeKalb County in which Coen sought severance payments allegedly owed to him as part of his discharge from the company (the "Contract Lawsuit"). 1 In the Contract Lawsuit, the trial court granted partial summary judgment to Coen on several counts of his complaint, including breach of contract. Pursuant to OCGA § 9-15-14 (a) and (b), the trial court thereafter entered an order granting attorney fees and expenses to Coen against CDC Software, its law firm, Sutherland Asbill & Brennan LLP n/k/a Eversheds Sutherland (the "Sutherland Firm"), and Aptean. The trial court found that the defendants had "adopted a strategy of litigation by attrition" and had "vigorously litigated baseless defenses in the hopes of litigating [Coen], an individual with very limited resources, to the point where he could no longer afford to continue without settling for a lesser sum." The trial court concluded that the defendants' "strategy constitutes the very bad faith OCGA § 9-15-14 exists to prevent, and the very bad faith that warrants an award of attorney[ ] fees and expenses." Based on its findings and conclusions regarding the defendants' misconduct, the trial court awarded Coen $174,400.00 in attorney fees and $2,084.80 in expenses.

The Initial Abusive Litigation Lawsuits. Coen voluntarily dismissed his remaining claims in the Contract Lawsuit in September 2014. In 2015, Coen filed three abusive litigation actions in the State Court of Fulton County, relying on the trial court's findings of misconduct in the Contract Lawsuit. 2 Specifically, in February 2015, he filed an abusive litigation lawsuit against the Sutherland Firm and Allegra Lawrence-Hardy, a partner in the Sutherland Firm who was involved in CDC Software's defense in the Contract Lawsuit. In September 2015, Coen filed an abusive litigation lawsuit against Gabriel Mendel, an associate with the Sutherland Firm involved in the Contract Lawsuit. 3 In June 2015, Coen filed an abusive litigation lawsuit against CDC Software, its successor Aptean, and several of their corporate officers and directors 4 (collectively, the "CDC

*69 Software Defendants"). Coen voluntarily dismissed without prejudice these abusive litigation lawsuits in May 2016. 5

The Present Abusive Litigation Lawsuit. In September 2016, Coen filed the present abusive litigation action against the CDC Software Defendants and the Sutherland Firm, Lawrence-Hardy, and Mendel (collectively, the "Sutherland Defendants") in the State Court of DeKalb County, alleging that the present action was a valid renewal of the prior abusive litigation lawsuits that Coen had voluntarily dismissed. 6 The complaint alleged that the CDC Software Defendants and the Sutherland Defendants had acted with malice and without substantial justification in the Contract Lawsuit by denying that CDC Software owed any payment whatsoever to Coen, despite an employment contract to the contrary, and by asserting baseless, boilerplate affirmative defenses without substantial justification for a wrongful purpose. The complaint further alleged that as a result of the aggressive, unfounded conduct of the defendants in the Contract Lawsuit, Coen was forced to litigate over a protracted period of almost two years against a defense with no basis whatsoever in order to recover a valid debt.

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Cite This Page — Counsel Stack

Bluebook (online)
816 S.E.2d 64, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coen-v-aptean-inc-et-al-gactapp-2018.