Eckerd Corp. v. Alterman Real Estate, Ltd.

598 S.E.2d 510, 266 Ga. App. 860, 2004 Fulton County D. Rep. 787, 2004 Ga. App. LEXIS 274
CourtCourt of Appeals of Georgia
DecidedFebruary 25, 2004
DocketA03A2284
StatusPublished

This text of 598 S.E.2d 510 (Eckerd Corp. v. Alterman Real Estate, 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
Eckerd Corp. v. Alterman Real Estate, Ltd., 598 S.E.2d 510, 266 Ga. App. 860, 2004 Fulton County D. Rep. 787, 2004 Ga. App. LEXIS 274 (Ga. Ct. App. 2004).

Opinion

Barnes, Judge.

Eckerd Corporation appeals from the final judgment of the trial court granting a writ of possession and awarding past due rent to Alterman Real Estate, Ltd. Eckerd contends the trial court misconstrued the lease and erred by granting the writ of possession and ordering payment of past due rents.

In 1978, Eckerd andAlterman’s predecessor in title to a shopping center executed a twenty-year lease for commercial space in the shopping center with options to renew for four successive five-year periods. Later, Alterman purchased the shopping center. The lease required payment of an annual fixed sum as rent and also required Eckerd to pay an annual “percentage rent” amount that was equal to two percent of its gross receipts less the fixed rental amount.

In the eighteenth year of the lease Eckerd reconditioned the premises, and, under a provision in the lease authorizing, in certain circumstances, set-offs for such expenses against the percentage rent due, attempted to reduce the percentage rent by the costs of reconditioning the premises. This led to a dispute between Eckerd and Alterman over whether sufficient time remained on the lease to entitle Eckerd to the set-off. The dispute culminated in Alterman denying that Eckerd was authorized to take the credit it sought.

Nevertheless, Eckerd reduced its next percentage rent payment by the amount of reconditioning expenses it deemed appropriate. Contending that Eckerd was in default under the lease, Alterman rejected the payment and filed a dispossessory. Eckerd answered and filed a counterclaim for breach of contract and attorney fees. After the parties filed cross-motions for summary judgment, the trial court granted Alterman partial summary judgment upholding Alterman’s position that Eckerd was not entitled to a credit for the reconditioning expenses. The trial court, however, reserved ruling on whether a writ of possession should be granted to Alterman.

Eckerd appealed from that judgment pursuant to OCGA § 9-11-56 (h), and the appeal was docketed in this court as Case No. A03A0945 (“Eckerd I”). In that appeal, Eckerd enumerated the following errors:

[861]*8611. The trial court erred in construing Section 12 (B) of the Lease when it found that the language “provided there remains at least ten years of unexpired term or extension thereof’ related only to years remaining in the 20 year base term and/or exercised options.
2. The trial court erred in construing the phrase “[t]he Tenant’s total costs of such reconditioning shall become a credit against percentage rents ... which may accrue during the three (3) consecutive lease years ending after the completion of such remodeling,” as both a condition precedent and a time limitation as to Eckerd’s right to accrue the credit.
3. The trial court erred in holding that Eckerd failed to satisfy any time limitation for the accrual of its credit, as it is undisputed that Eckerd notified Alterman of the credit on October 8,1999, within three years of the reconditioning, and within a reasonable time.
4. Even if the accrual language in Enumeration No. 2 is construed as either a condition precedent or a time limitation, the trial court erred by not holding that Alterman waived strict compliance with the condition by waiting until months after Eckerd timely notified Alterman of Eckerd’s intent to exercise the credit.

This court, however, did not address the merits of these enumerations. Instead, we dismissed Eckerd I because Eckerd did not file its notice of appeal within seven days of the trial court’s order, as required in dispossessory cases by OCGA § 44-7-56. Eckerd did not seek certiorari to contest our dismissal of Eckerd I.

1. Alterman’s motion to dismiss the appeal based on res judicata arising from the prior dismissal is denied.

2. After the remittitur issued in Eckerd I, Alterman renewed its request for a writ of possession, and the trial court entered an order holding that for the reasons stated in its grant of partial summary judgment it found that Eckerd had not paid rent when due, ordered Eckerd to pay Alterman past due rent, and granted Alterman a writ of possession. Eckerd now appeals from that order, and this appeal has been docketed in this court as Case No. A03A2284 (“Eckerd II”).

The following errors are enumerated in Eckerd II:

1. The trial court erred in issuing the writ of possession as Eckerd paid all rents when due, and had an expressed agreement with Alterman that the disputed percentage rent of $38,780.00 did not have to be paid into court as the case proceeded;
[862]*8622. The trial court erred in construing Section 12 (B) of the Lease when it found that the language “provided there remains at least ten years of unexpired term or extension thereof’ related only to years remaining in the 20 year base term and/or exercised options;
3. The trial court erred in construing the phrase “[t]he Tenant’s total costs of such reconditioning shall become a credit against percentage rents ... which may accrue during the three (3) consecutive lease years ending after the completion of such remodeling,” as both a condition precedent and a time limitation as to Eckerd’s right to accrue the credit[; and]
4. The trial court erred in holding that Eckerd failed to satisfy any time limitation for the accrual of its credit, as it is undisputed that Eckerd notified Alterman of the credit on October 8,1999, within three years of the reconditioning, and within a reasonable time.

Comparison of the enumerations of error in both appeals shows that enumerations of error 2 through 4 in Eckerd II seek to relitigate the identical issues that Eckerd attempted to litigate in Eckerd I in enumerations of error 1 through 3. Under our appellate practices, however, this cannot be done. In Mitchell v. Oliver, 254 Ga. 112 (327 SE2d 216) (1985), our Supreme Court held:

If the losing party suffers dismissal of his § 9-11-56 (h) appeal for failure to fulfill procedural requirements, the losing party should, in return for his privilege of direct appeal, suffer the same sanction of res judicata which attaches to a final judgment from which a procedurally defective appeal is taken. Therefore, we hold that a losing party on summary judgment who puts the machinery of immediate appellate review under OCGA § 9-11-56 (h) into motion, yet commits a procedural default fatal to his appeal, is foreclosed from thereafter resubmitting the matter for review on appeal of the final judgment.

Id. at 114 (1). The principle announced in Mitchell v. Oliver was recently reaffirmed in Canoeside Properties v. Livsey, 277 Ga. 425 (589 SE2d 116) (2003). Moreover, we cannot revisit our earlier action in dismissing Eckerd’s first appeal because that ruling is binding on this court under the law of the case rule. OCGA § 9-11-60 (h); Dicks v.

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Young v. Turner Heritage Homes, Inc.
526 S.E.2d 82 (Court of Appeals of Georgia, 1999)
Lau's Corp., Inc. v. Haskins
405 S.E.2d 474 (Supreme Court of Georgia, 1991)
Mitchell v. Oliver
327 S.E.2d 216 (Supreme Court of Georgia, 1985)
Desai v. Silver Dollar City, Inc.
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Moore v. Goldome Credit Corp.
370 S.E.2d 843 (Court of Appeals of Georgia, 1988)
Eckerd Corp. v. Alterman Properties, Ltd.
589 S.E.2d 660 (Court of Appeals of Georgia, 2003)
Canoeside Properties, Inc. v. Livsey
589 S.E.2d 116 (Supreme Court of Georgia, 2003)
Dicks v. Zurich American Insurance
499 S.E.2d 169 (Court of Appeals of Georgia, 1998)

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Bluebook (online)
598 S.E.2d 510, 266 Ga. App. 860, 2004 Fulton County D. Rep. 787, 2004 Ga. App. LEXIS 274, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eckerd-corp-v-alterman-real-estate-ltd-gactapp-2004.