Contract Harvesters, Inc. v. Mead Coated Board, Inc.

522 S.E.2d 260, 239 Ga. App. 853, 99 Fulton County D. Rep. 3347, 1999 Ga. App. LEXIS 1171
CourtCourt of Appeals of Georgia
DecidedSeptember 8, 1999
DocketA99A1092
StatusPublished
Cited by4 cases

This text of 522 S.E.2d 260 (Contract Harvesters, Inc. v. Mead Coated Board, Inc.) 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
Contract Harvesters, Inc. v. Mead Coated Board, Inc., 522 S.E.2d 260, 239 Ga. App. 853, 99 Fulton County D. Rep. 3347, 1999 Ga. App. LEXIS 1171 (Ga. Ct. App. 1999).

Opinion

Eldridge, Judge.

Appellant, Contract Harvesters, Inc. (“Contract Harvesters”), appeals from the trial court’s grant of summary judgment in favor of the appellees, Mead Coated Board, Inc. (“Mead”) and Sam Rigdon.

To prevail at summary judgment under OCGA § 9-11-56, the moving party must demonstrate that there is no genuine issue of material fact and that the undisputed facts, viewed in the light most favorable to the nonmoving party, warrant judgment as a matter of law. OCGA § 9-11-56 (c). Summary judgment appeals are de novo reviews because summary judgment rulings are strictly matters of law and are not based at all on finding of facts, made by court or jury, nor on weighing of evidence, nor on credibility of witnesses. Summary judgment rulings are based on undisputed facts.

(Citations and punctuation omitted.) Jenkins v. Brice, 231 Ga. App. 843-844 (499 SE2d 734) (1998); Lau’s Corp. v. Haskins, 261 Ga. 491 (405 SE2d 474) (1991).

Viewed in the light most favorable to the appellant as the non-moving party, the evidence shows the following: Contract Harvesters is a Georgia corporation which was engaged in the logging business. Charles Hester is the President and sole shareholder of Contract Harvesters. Contract Harvesters began to do business with the predecessor of Mead in approximately 1965 or 1966 and continued the business relationship with Mead until June 23, 1993. For several years prior to 1993, Contract Harvesters and Mead entered into an annual contract each January. Each annual contract ended on December 31 of the year in which it was signed. The annual contract did not identify any specific tracts or volume of timber to be cut. Separate contracts or addenda to the annual Timber Cutting Agreement were *854 entered into between Mead and Contract Harvesters during the course of each annual Timber Cutting Agreement and became part of the annual agreement. These agreements were entitled “Delivery Orders,” and described the individual tract to be cut, the date by which such timber was to be harvested, and the price to be paid for the timber. The price to be paid for the timber under each delivery order was separately negotiated and took into account a number of factors, including the location of the tract and the terrain of the land on which the timber was to be cut. Under the terms of the annual contract, delivery orders which were not completed the preceding year became part of the annual contract entered into in January of the new year. This case arose out of events which occurred in 1993.

1. Contract Harvesters alleges that the trial court erred in granting appellees’ motion for summary judgment, in that there is a genuine issue of fact as to the appellees’ breach of the January 2, 1993, written contract with Contract Harvesters.

Both parties agree that they entered into an annual timber cutting agreement on January 2, 1993, which was effective through December 31, 1993. The 1993 annual contract set forth the general terms governing Contract Harvesters’ timber harvesting work on behalf of Mead. The parties further agree that there were nine delivery orders which were entered into between the parties that became addenda to and part of the 1993 annual contract. Each delivery order contained a description of a tract of timber to be cut, the price Contract Harvesters would be paid for the timber, and the dates for performance. The 1993 annual contract and the nine addenda thereto were signed by Sam T. Rigdon, who was a District Manager for Mead, on behalf of Mead, and by Charles Hester on behalf of Contract Harvesters.

Around April 1993, Rigdon, on behalf of Mead, orally informed Contract Harvesters that it would not be given any new delivery orders because its production was no longer needed and because it had cut over the line on some tracts. Rigdon further orally informed Contract Harvesters that it had sixty days to complete work on the delivery orders that were pending. The last day that Contract Harvesters was allowed to deliver cut timber to Mead was June 23,1993. Appellees argue that they did not breach the contract by electing not to give Contract Harvesters additional tracts of timber to cut and by requiring Contract Harvesters to complete its work under the contract within 60 days. However, it is undisputed that all nine delivery orders gave Contract Harvesters substantial time beyond June 23, 1993, the last date Contract Harvesters was allowed to deliver timber to Mead, to complete the cutting and delivery of the timber.

Charles Hester testified that, out of the nine delivery orders, three delivery orders had not been completed when Contract Har *855 vesters was given notice, without reason and opportunity to cure, that it had sixty days to complete its work; that Contract Harvesters was unable to complete cutting the timber on these three tracts due to Mead’s premature termination of the contract; that the remaining timber left on these three tracts was given to other loggers to cut; and that Contract Harvesters was not paid for the timber it was unable to cut due to the premature termination of the contract by Mead. Hester further testified that Contract Harvesters ceased doing business on June 23, 1993, because Mead was the only company for which it cut timber.

Further, paragraph 17 of the 1993 annual contract set forth the procedure for early termination of the contract. Under paragraph 17, the contract could “be terminated by either party in the event of a breach of the Agreement by the other party, if such breach [had] not been cured within ten (10) days after written notice to the party accused of breaching the Agreement, setting out the nature of such breach.” There was no evidence of record that Mead followed the requirements of paragraph 17 prior to terminating the contract.

Consequently, a genuine issue of fact exists as to such claim, and it was error for the trial court to grant the appellees’ motion for summary judgment on the breach of the January 2, 1993 written contract.

2. Contract Harvesters contends that the trial court erred in granting the appellees’ motion for summary judgment on its claim based on the appellees’ agreement to provide Contract Harvesters with a minimum quota of 850 to 1,000 cords of timber per week. While Contract Harvesters asserts that it brought this claim under the alternative theories of breach of oral contract and fraud as a tort, this was not asserted in the trial court. At the trial level, Contract Harvesters only set forth a claim for fraud. “Grounds for reversal which may be considered on appeal are limited to those which were argued before the trial court.” (Citations and punctuation omitted.) In the Interest of C.W, 227 Ga. App. 763, 767-768 (3) (490 SE2d 442) (1997). Therefore, this Court will not consider the oral contract claim on appeal.

In its answer and at summary judgment, Mead denied that it promised Contract Harvesters a certain quota of timber to be cut weekly. However, Contract Harvesters submitted evidence to the contrary, creating a material issue of fact as to fraud.

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Bluebook (online)
522 S.E.2d 260, 239 Ga. App. 853, 99 Fulton County D. Rep. 3347, 1999 Ga. App. LEXIS 1171, Counsel Stack Legal Research, https://law.counselstack.com/opinion/contract-harvesters-inc-v-mead-coated-board-inc-gactapp-1999.