Dodson v. Sykes Industrial Holdings, LLC

752 S.E.2d 45, 324 Ga. App. 871, 2013 Fulton County D. Rep. 3753, 37 I.E.R. Cas. (BNA) 356, 2013 WL 6085257, 2013 Ga. App. LEXIS 949
CourtCourt of Appeals of Georgia
DecidedNovember 20, 2013
DocketA13A0940
StatusPublished
Cited by7 cases

This text of 752 S.E.2d 45 (Dodson v. Sykes Industrial Holdings, LLC) 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
Dodson v. Sykes Industrial Holdings, LLC, 752 S.E.2d 45, 324 Ga. App. 871, 2013 Fulton County D. Rep. 3753, 37 I.E.R. Cas. (BNA) 356, 2013 WL 6085257, 2013 Ga. App. LEXIS 949 (Ga. Ct. App. 2013).

Opinion

Branch, Judge.

Donald R. Dodson brought suit alleging that he has an ownership interest in and an employment agreement with Sykes Industrial Holdings, LLC (“Sykes LLC”) and that the company failed to honor those agreements and failed to pay him for his services. The defendants contend that Dodson was only ever a trainee and that they never agreed that Dodson would be an owner or receive commissions. The trial court granted summary judgment in favor of the defendants, and Dodson appeals. We hold that the trial court erred by granting summary judgment because Dodson had a motion to compel pending that appears reasonably calculated to lead to the discovery of admissible evidence and he moved for a continuance of the hearing on the motion for summary judgment so that the court could address his motion first. We agree and therefore vacate and remand for further proceedings.

Summary judgment is proper when there is no genuine issue of material fact and the movant is entitled to judgment as a matter of law. OCGA § 9-11-56 (c). We review a grant or denial of summary judgment de novo and construe the evidence in the light most favorable to the nonmovant. Home Builders Assn. of Savannah v. Chatham County, 276 Ga. 243, 245 (1) (577 SE2d 564) (2003).

Construed in favor of Dodson, the evidence shows that in 2009, following a downturn in sales at Sykes LLC, Ralph H. Sykes, the founder, president, and 98 percent owner of Sykes LLC,1 was looking to expand his industrial pump sales business when he met Dodson, who was interested in helping to increase sales for the company. Sykes told Dodson that they would be partners with Dodson owning [872]*87240 percent of the company and that, as part of his compensation, Dodson would receive a commission of 40 percent of the gross profits generated by his accounts. Dodson and Sykes also agreed that in lieu of Dodson’s initial capital contribution, the company would retain Dodson’s initial commission payments to bolster the Company’s assets. Dodson began to work for Sykes LLC in mid 2009, and, at one point, Sykes wrote a letter to a third party stating that “we hired Don Dodson ... whose sole responsibility is to call on engineering firms.” Sykes referred to Dodson as his partner from time to time and described his relationship with Dodson as a partnership to at least one employee. On one occasion, Dodson and Sykes jointly held a meeting for the employees in which they said they would be offering a revenue sharing plan.

In early 2010, Sykes had his accountant George Hillegass draw up contracts regarding Dodson’s relationship with the company. The draft “Operating Agreement,” which Sykes and Dodson referred to as a partnership agreement, provided that Dodson would own 40 percent of the company. The draft employment agreement provided that Dodson would get 40 percent of the gross profits that he helped generate. The parties, however, never signed the written agreements, although, according to Dodson, Sykes gave his word that he would sign them.

Sykes began to pay Dodson in December 2010 with a check in the amount of $10,000, followed by checks for $13,000 on January 24, 2011, and $15,000 on February 8, 2011. A company document dated January 17, 2011, entitled “Pumps Order Log” for the year 2010 lists Dodson as the salesman on 37 of the company’s 89 customers. According to Dodson’s calculations, the document shows that for the year 2010, he was credited with $4,091,020 in total sales revenue, with a gross profit to the company totaling $1,407,352.34. In February 2011, Dodson asked Sykes for an accounting and payment of his commissions, but Sykes told Dodson that he thought that Dodson’s earned commissions and share in the company should remain in the company accounts for the time being. On March 14, 2011, however, Sykes paid Dodson an additional $15,000 followed by $100,000 on March 25, 2011. In May 2011, Gail Scoggins, who handles bookkeeping, accounting, office management, and other functions for the company, asked Dodson in an e-mail to provide her with an update on 24 sales accounts. But Dodson received no further payments. In July 2011, Sykes told Dodson that one of the company’s pump suppliers had been lost, that he would be winding down the company, and that no further “distributions” would be made. Sykes admits that he never told Dodson that he was not living up to expectations at the company.

[873]*873Contrary to the evidence construed in favor of Dodson, Sykes deposed that he could not say whether the company had ever actually hired Dodson but that Dodson was an unpaid trainee and never rose above that level. Sykes only paid Dodson the $153,000 as a “stipend” for “living expenses” because Dodson said he needed the money, and Sykes testified that the payments were not related to Dodson’s sales performance or any purported ownership interest. Sykes also testified that Dodson would have been paid when he made a profit but that he never generated any profits during his training period. Sykes further testified that Dodson was never officially an employee of the company; rather, he was an independent contractor. Sykes testified that none of the accounts listed in the e-mail exchange between Dodson and Scoggins were actually Dodson’s accounts and that salesmen were never paid based on the Pumps Order Log. Finally Sykes testified that he never signed the draft Operating Agreement or employment agreement, that he never gave his word that he would do so, and that he never promised Dodson an ownership interest in the company or that he would be paid a 40 percent commission.

On August 29, 2011, Dodson filed a verified complaint against Sykes and Sykes LLC for injunctive relief, appointment of a receiver, and damages for breach of contract and several torts arising out of the alleged partnership and employment agreements.2 On October 10, 2011, the defendants filed a verified answer and asserted counterclaims. On October 31, 2011, Dodson noticed the deposition of Sykes for November 17,2011, and served Sykes with a request to produce 15 types of documents at his deposition. Dodson purported to make the request pursuant to OCGA §§ 9-11-34 and former 24-10-26, and the final sentence of the request states, “Should the date and time of this deposition be changed for any reason, this Request to Produce shall remain in full force and effect.” It is not disputed that the defendants did not provide a written response to the document request. Dodson states that at the request of the defendants, the deposition was reset to December 23 to accommodate the schedule of the defendants.

[874]*874On December 13, 2011, however, the defendants moved for summary judgment and requested a hearing on the motion. Although Sykes’s deposition took place on December 23, 2011, on January 6, 2012, Dodson filed an emergency motion to extend the time to respond to the motion for summary judgment and for attorney fees on the grounds that, as of the filing of the motion for summary judgment, depositions had not been taken, the parties had yet to respond to discovery requests, and, in general, discovery had not been completed. Moreover, although Dodson had been able to depose Sykes, Dodson had not received a copy of the transcript, and he needed to take depositions of Scoggins and Hillegass. Finally, Dodson asserted that the defendants had refused to consent to such an extension of time.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

American Civil Liberties Union, Inc. v. Zeh
864 S.E.2d 422 (Supreme Court of Georgia, 2021)
Lamario Garrett v. Department of Human Services
Court of Appeals of Georgia, 2020
Collie Chandler v. Liberty Mutual Fire Insurance Company
773 S.E.2d 876 (Court of Appeals of Georgia, 2015)
915 Indian Trail, LLC v. State Bank & Trust Co.
759 S.E.2d 654 (Court of Appeals of Georgia, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
752 S.E.2d 45, 324 Ga. App. 871, 2013 Fulton County D. Rep. 3753, 37 I.E.R. Cas. (BNA) 356, 2013 WL 6085257, 2013 Ga. App. LEXIS 949, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dodson-v-sykes-industrial-holdings-llc-gactapp-2013.