DEKALB COUNTY SCHOOL DISTRICT v. DEKALB AGRICULTURE TECHNOLOGY AND ENVIRONMENT, INC.

Court of Appeals of Georgia·Decided November 2, 2023·No. A23A0787·Published

Opinion

FOURTH DIVISION

DILLARD, P. J.,

RICKMAN and PIPKIN, JJ.

NOTICE: Motions for reconsideration must be physically received in our clerk’s office within ten days of the date of decision to be deemed timely filed.

https://www.gaappeals.us/rules

November 2, 2023

In the Court of Appeals of Georgia A23A0787. DEKALB COUNTY SCHOOL DISTRICT et al. v. DEKALB AGRICULTURE TECHNOLOGY AND ENVIRONMENT, INC. et al.

PIPKIN, Judge.

Various charter schools operating in DeKalb County (collectively “Appellees”1) sued the DeKalb County School District (“the DCSD” or “the District”) and its board members (collectively “Appellants”2) alleging that Appellants have breached the charter schools’ respective contracts in various ways and underfunded

1 Appellees are DeKalb Agriculture Technology & Environment, Inc., DeKalb, Preparatory Academy Charter School, Inc., Leadership Preparatory Academy, Inc., Path Academy, Inc., Tapestry School, Inc., The GLOBE Academy, Inc., and Avondale Education Association.

2 Appellants are the DeKalb County School District, Cheryl Watson-Harris, in her Official Capacity as Superintendent of DeKalb County School District, as well as Marshall D. Orson, Vickie B. Turner, Diijon Dacosta, Michael A. Erwin, Allyson Gevertz, Stan O. Jester, and Joyce Morley, in their Official Capacities as members of the DeKalb County Board of Education.

the schools. The trial court granted partial summary judgment to Appellees as to liability, and Appellants seek review of that decision. As we discuss below, this action is not barred by sovereign immunity; further, we see no reversible error with respect to the grant of summary judgment in favor of Appellees. Accordingly, we affirm the judgment of the trial court.

1. Appellees are seven charter schools authorized by both the DeKalb County Board of Education and Georgia Board of Education. In August 2020, Appellees filed suit for breach of contract against Appellants, arguing that Appellants had violated the express terms of their respective charter agreements, as well certain provisions of the Charter Schools Act of 1998 (“the Act” or “the Charter Schools Act”), see OCGA § 20-2-2060 et seq., that, according to Appellees, are incorporated into the charter agreement as a matter of law. Specifically, and as relevant here, Appellees’ fourth amended complaint asserts as follows: Count I alleges that Appellants improperly reduced funding for certain schools below the contractually required amount; Count II alleges that Appellants failed to include Appellees in allocations of federal funding as required by OCGA § 20-2-2068.1 (c); Count IV alleges that Appellants improperly withheld an administrative fee from funding allocations under OCGA § 20-2-2068.1 (c.2); Count V alleges that Appellants failed to properly calculate and allocate

austerity restoration in accordance with OCGA § 20-2-2068.1 (b) and (c); and, Count VI alleges that Appellants failed to hold certain charter schools harmless from negative midterm funding adjustments consistent with OCGA § 20-2-162 (a).3 The parties subsequently filed competing motions for summary judgment; Appellees sought summary judgment as to liability on each claim -- and to have the issue of damages reserved for the jury -- while Appellants asserted that all claims were barred by sovereign immunity and, alternatively, that Appellees had failed to demonstrate a genuine issue of material fact as to each claim.

Relying on our decision in Cobb County School Dist. v. Learning Center Foundation of Central Cobb, Inc., 348 Ga. App. 66, 68-69 (821 SE2d 127) (2018) (physical precedent only), the trial court concluded, as a preliminary matter, that Appellees’ action sounded in contract and, thus, was not barred by sovereign immunity. As to the merits of Appellees’ claims, the trial court concluded that there was no evidentiary dispute that Appellants had breached the charter agreements by failing to fund certain charter schools at or above their intended funding floors; by failing to allocate federal funds to the charter schools; by improperly retaining fees for administrative services; by withholding austerity restoration funds to which

3 All references to “the complaint” are to Appellees’ fourth amended complaint.

Appellees were entitled; and by failing to hold the charter schools harmless for negative midyear adjustments. Appellants now challenge these rulings on appeal.4 Before addressing the parties’ arguments, we first turn to our well-known standard of review applicable in this appeal: “Summary judgment is warranted when any material fact is undisputed, as shown by the pleadings and record evidence, and this fact entitles the moving party to judgment as a matter of law.” Strength v. Lovett, 311 Ga. App. 35, 39 (2) (714 SE2d 723) (2011). On appeal from the grant of summary judgment, we apply a de novo standard of review. See Latson v. Boaz, 278 Ga. 113, 113 (598 SE2d 485) (2004).

Additionally, this appeal requires us to review and interpret a number of statutory provisions. As we do this, we keep in mind that “we must afford the statutory text its ‘plain and ordinary meaning,’ we must view the statutory text in the context in which it appears, and we must read the statutory text in its most natural and reasonable way, as an ordinary speaker of the English language would.” (Citations

4 There are two additional counts in the complaint that are not part of this appeal. In Count III, Appellees alleged that the District has failed to provide E- SPLOST funds to the charter schools; the trial court granted summary judgment in favor of Appellants as to that claim, and this ruling has not been appealed. In Count VII, Appellees alleged that Appellants have breached the implied covenant of good faith and fair dealing; there is also nothing before this Court regarding this claim.

omitted.) Deal v. Coleman, 294 Ga. 170, 172-173 (1) (a) (751 SE2d 337) (2013). “[F]or context, we may look to other provisions of the same statute, [and] the structure and history of the whole statute[.]” (Citation and punctuation omitted.) Thornton v. State, 310 Ga. 460, 462 (2) (851 SE2d 564) (2020). Where the statutory text is “clear and unambiguous,” we attribute to the statute its plain meaning, and our search for statutory meaning generally ends. See Deal v. Coleman, 294 Ga. at 173 (1) (a). With these principles in mind, we turn to Appellants’ enumerations of error.

2. In two enumerations of error, Appellants claim that Learning Center was wrongly decided and that they are entitled to sovereign immunity. We disagree.

Generally speaking, “sovereign immunity extends to the state and all of its departments and agencies,” Ga. Const. of 1983 Art. 1, Sec. II, Par. IX (e), which includes both the District and its board members. See, e.g., Cook v. Smith, 349 Ga. App. 16, 17-18 (3) (825 SE2d 439) (2019). Sovereign immunity bars tort actions against Appellants, see, e.g., Parr v. Cook County School Dist., 359 Ga. App. 823, 824-825 (1) (860 SE2d 114) (2021), but the defense of sovereign immunity has been “waived as to any action ex contractu for the breach of any written contract.” See Ga. Const. Art. I, Sec. II, Para. IX (c); OCGA § 50-21-1 (a). The question presented here is whether Appellees’ claims that arise from the alleged violation of the Charter

Schools Act sound in tort or in contract. We agree with the trial court that such claims sound in contract and, thus, are not barred by sovereign immunity.

Under the Charter Schools Act, a “charter” is defined as

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DEKALB COUNTY SCHOOL DISTRICT v. DEKALB AGRICULTURE TECHNOLOGY AND ENVIRONMENT, INC., (Ga. Ct. App. 2023).

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