Congress Re-Insurance Corp. v. Archer-Western Contractors, Ltd.

487 S.E.2d 679, 226 Ga. App. 829, 97 Fulton County D. Rep. 2364, 1997 Ga. App. LEXIS 784
CourtCourt of Appeals of Georgia
DecidedJune 16, 1997
DocketA97A0616
StatusPublished
Cited by15 cases

This text of 487 S.E.2d 679 (Congress Re-Insurance Corp. v. Archer-Western Contractors, Ltd.) 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
Congress Re-Insurance Corp. v. Archer-Western Contractors, Ltd., 487 S.E.2d 679, 226 Ga. App. 829, 97 Fulton County D. Rep. 2364, 1997 Ga. App. LEXIS 784 (Ga. Ct. App. 1997).

Opinion

Smith, Judge.

In this case, a subcontractor and its surety (the issuer of performance and payment bonds) appeal from judgments entered against them in a third-party action brought by the general contractor, which was sued by a materialman of the subcontractor. We conclude that the trial court correctly entered a default judgment against the subcontractor and granted summary judgment against the subcontractor’s surety, and we therefore affirm.

The record shows that Archer-Western Contractors, Ltd. entered into a contract with the Georgia Department of Transportation for the construction of a transportation management center in Atlanta. Archer subcontracted with Hawkins & Associates Construction Management Group for masonry work. Congress Re-Insurance Corpora *830 tion, Inc. issued payment and performance bonds to Hawkins listing Archer as obligee.

Humphries Concrete Block Company supplied materials to Hawkins for use on the project. When Hawkins refused to pay for the materials, Humphries brought an action under Georgia’s “Little Miller Act” against Archer and Archer’s surety. OCGA §§ 36-82-101 through 36-82-104. Archer then filed this third-party action against Hawkins and Hawkins’s surety, Congress, alleging that the third-party defendants were liable to it for any amounts for which it might be liable to Humphries. 1

In the third-party action, Archer alleged that Congress was a foreign corporation not authorized to transact business in Georgia but engaged in the business of surety insurance in this state. Because Congress did not have a business office in Georgia, Archer served Morgan Insurance Group, Inc. on behalf of Congress, alleging that Morgan was Congress’s agent for service pursuant to OCGA § 33-5-54 because Morgan solicited, made, issued, and delivered surety insurance contracts in Georgia, received premiums and assessments therefor, and was an agent of Congress. Within ten days, Archer mailed a copy of the third-party complaint and summons to Congress. It then filed an affidavit of compliance pursuant to the statute. Id. Hawkins was personally served.

A response to the third-party complaint was filed by Congress’s president, Mohamed Zayed II, acting pro se, in which Congress raised defenses of venue, insufficiency of service of process, and prematurity of the action. In the answer, Congress appears to characterize Morgan as a “consultant” and Congress as a “non-insurance surety” and to deny that Morgan solicited “insurance” on behalf of Congress and that Congress was in the business of surety insurance in Georgia. Zayed alleged that Congress was not amenable to service under OCGA § 33-5-54. In response, Archer again served Congress, this time under the provisions of the Georgia Long Arm Statute, OCGA § 9-10-94.

Hawkins did not file a response to Archer’s third-party complaint, and Archer took a default judgment against Hawkins. Shortly thereafter, Archer moved for summary judgment against Congress. The motion was granted, and judgment was entered against Congress.

1. This appeal purports to be on behalf of both Congress and Hawkins. In fact, Hawkins contends in the first enumeration of error that the trial court erred in entering a default judgment against it *831 when it had “answered” the third-party complaint. But it is clear for several reasons that the “answer” referred to was filed only on behalf of Congress.

First, the answer itself so states: “Now comes the third party defendant, Congress Re-Insurance Corporation, Inc., a non-insurance surety, by and through its president Mr. Mohamed Khairy Mohamed Zayed, II, pro se and pursuant to OCGA § 9-11-4 (c) and other pertinent rules of civil procedure answer [sic] the same.” (Emphasis supplied.) The answer ends by stating that it is “respectfully submitted” on behalf of Congress by its president, Zayed, acting pro se.

Second, regardless of the content or purpose of the document filed, Zayed was not legally permitted to file an answer on behalf of Hawkins. “Only a duly licensed attorney may answer a complaint for a person who does not appear pro se. OCGA § 15-19-51 (a).” Keith v. Alexander Underwriters &c., 219 Ga. App. 36, 38 (463 SE2d 732) (1995). After the date of publication in the advance sheets of the Supreme Court’s decision in Eckles v. Atlanta Technology Group, 267 Ga. 801 (485 SE2d 22) (1997), a non-lawyer may represent a corporation only in a court that is not a court of record. Before that date, representation of a corporation “pro se” by its “chairman” or other appropriate agent was permitted under the holdings of several cases. See, e.g., Universal Scientific v. Wolf, 165 Ga. App. 752 (1) (302 SE2d 616) (1983); Knickerbocker Tax Systems v. Texaco, 130 Ga. App. 383 (203 SE2d 290) (1973); Dixon v. Reliable Loans, 112 Ga. App. 618 (145 SE2d 771) (1965). 2 But an individual non-lawyer totally unrelated to the corporation was never permitted to represent that corporation “pro se.”

Because Zayed could not and did not represent Hawkins when he filed an answer on behalf of Congress, Hawkins was in default when.the trial court entered a default judgment against it. This was not error.

Hawkins did not file a timely notice of appeal from the default judgment and did not seek to set aside the judgment in the trial court. It may not now appeal that judgment.

2. Because no timely appeal was taken from the default judgment, Congress’s claims with regard to that judgment are also without merit. Moreover, although Congress now complains it received no notice of the hearing on the motion for default judgment, the record reflects that it was served with notice of the motion almost two months prior to the hearing. The record does not show that Congress made any objection to the entry of default judgment below. This issue may not be raised for the first time on appeal.

*832 3. Congress next asserts that the trial court lacked personal jurisdiction over it for a variety of reasons.

(a) Congress maintains it was not subject to service under OCGA § 33-5-54 because it is not an “insurance surety.” But Georgia law makes no distinction between “insurance” and “non-insurance” sureties. The issuance of payment and performance bonds is expressly defined as surety insurance pursuant to OCGA § 33-7-7

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Bluebook (online)
487 S.E.2d 679, 226 Ga. App. 829, 97 Fulton County D. Rep. 2364, 1997 Ga. App. LEXIS 784, Counsel Stack Legal Research, https://law.counselstack.com/opinion/congress-re-insurance-corp-v-archer-western-contractors-ltd-gactapp-1997.