Jennette v. National Community Development Services, Inc

520 S.E.2d 231, 239 Ga. App. 221, 99 Fulton County D. Rep. 2695, 1999 Ga. App. LEXIS 914
CourtCourt of Appeals of Georgia
DecidedJune 28, 1999
DocketA99A0079
StatusPublished
Cited by16 cases

This text of 520 S.E.2d 231 (Jennette v. National Community Development Services, 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
Jennette v. National Community Development Services, Inc, 520 S.E.2d 231, 239 Ga. App. 221, 99 Fulton County D. Rep. 2695, 1999 Ga. App. LEXIS 914 (Ga. Ct. App. 1999).

Opinion

Smith, Judge.

Mark L. Jennette appeals from rulings of the trial court in favor of National Community Development Services, Inc. (“NCDS”), in an action brought by NCDS against Jennette alleging that while acting as NCDS’s agent, Jennette breached various agreements and his fiduciary duties of “loyalty, good faith, honesty, and fair dealing” by diverting business to himself. Jennette answered the complaint, alleging that the agreements were not enforceable and denying agency and breach of fiduciary duty. He also asserted several counterclaims. The parties filed cross-motions for summary judgment, and the trial court denied summary judgment to either party on all issues with the exception of Jennette’s counterclaims for conversion and punitive damages. As to those, the trial court granted summary judgment to NCDS. The case was then tried by the court without the intervention of a jury, resulting in a judgment in favor of NCDS in the amount of $235,000. On appeal, Jennette contends the trial court erred in finding that an agency relationship existed between the parties, in awarding damages to NCDS, in awarding summary judgment to NCDS on his counterclaim for conversion, and in failing to award summary judgment in his favor for sums due him as compensation. We find no error, and we affirm the judgment.

The record shows that NCDS is in the business of creating and managing fund raising campaigns for nonprofit entities, including chambers of commerce, colleges and universities, and economic development organizations. This case arose out of business transactions that occurred while Jennette was working as an independent contractor “senior associate” for NCDS, developing projects for customers. When Jennette expressed interest in developing new busi *222 ness, Howard C. Benson, NCDS’s Chief Executive Officer, offered to pay him a commission of ten percent of the gross revenue realized by NCDS on business he developed if he acted as NCDS’s representative in developing business. Other independent contractors were paid similar “finder’s fees.”

In the fall of 1993, one such customer, Macon College, contacted NCDS and asked to have a representative visit its campus to discuss fund raising services. Benson asked Jennette to visit the college and attempt to secure the college’s fund raising business for NCDS. Jen-nette met with the college’s Vice President for Business Affairs, Jack Ragland, who was also the Treasurer of the Macon College Foundation. The college decided to hire NCDS. Additionally, during that fall, he secured for NCDS the business of conducting feasibility studies for Darton College and the Albany State College Foundation. He also made contacts on behalf of NCDS with a group of organizations comprised of Wesleyan College, Andrew College, and the Georgia United Methodist Commission on Higher Education & Campus Ministry (“the Methodist Group”) concerning a feasibility study.

On January 6, 1994, while Jennette was in Huntsville, Alabama, working on a fund raising campaign for NCDS, Benson traveled to Huntsville to work out some problems with the campaign. At that meeting, Jennette informed Benson that the Huntsville campaign would be his last for NCDS, and that when the Huntsville campaign was over, he would begin working on his own. No discussion took place regarding how clients and potential clients would be handled when Jennette began working on his own. Toward the end of January 1994, Jennette formed a sole proprietorship called Advancement & Development Services (“ADS”).

In February 1994, Jennette submitted a proposed contract with NCDS for the first phase of the Macon College project, a feasibility study. He visited Macon College to pick up the college’s check for $15,000, in payment for the feasibility study. But he refused to accept a check payable to NCDS and instructed Ragland to void that and write another check, payable to ADS. Jennette told Ragland that NCDS had been split, with one division doing more development commission work and the other doing more for nonprofit organizations. Ragland testified that Jennette said ADS had been set up as a special division; Ragland believed it was still part of NCDS. Jennette substituted ADS for NCDS not only on the check, but also in the written agreements covering the fund raising project.

On the same day, Jennette sent a proposal to Dr. Billy Black, President of Albany State College, for a fund raising campaign to be conducted by ADS. This proposal was accepted on March 14, 1994. Dr. Black testified, by affidavit read into the record by stipulation at trial, that when Jennette presented the proposal he understood that *223 ADS was a separate organization, but he thought it would be “affiliated” with NCDS. On February 22,1994, Jennette presented a proposal for a fund raising feasibility study to the Methodist Group, which was accepted the same day. At the time the Methodist Group entered into the contract with ADS, it was under the impression that ADS was a division or branch of NCDS. This group paid ADS for the feasibility study but never went forward with a fund raising campaign.

In April 1994, Jennette informed Macon College that ADS and NCDS would not affiliate in conducting campaigns, and in July 1994, Macon College entered into a contract with ADS for a fund raising campaign. The total receipts received by ADS from Macon College, Albany State College, and the Methodist Group for all studies and campaigns after January 6, 1994, was $235,000.

1. NCDS’s request that we impose a penalty for frivolous appeal is denied.

2. In three enumerations, Jennette contends the trial court erred in concluding that he was an agent for NCDS at any time, after January 6,1994, and after March 1994. He argues that NCDS was unable to prove the requirements for an agency relationship because it could not show that Jennette had the authority to bind NCDS, which is “[a]n essential characteristic of an agent.” Gen. Warranty Corp. Ins. Agents &c. v. Cameron-Hogan, Inc., 182 Ga. App. 434, 436 (1) (356 SE2d 83) (1987).

“An agency relationship arises wherever one person, expressly or by implication, authorizes another to act for him.” (Citation and punctuation omitted.) Atlanta Market Center Mgmt. Co. v. McLane, 269 Ga. 604, 606 (1) (a) (503 SE2d 278) (1998). But to be an agent, one must be “more than the employee delegated ... to look after certain accounts.” Id. One must have “ ‘authority, real or ostensible, to create obligations on behalf of’ ” the principal, “ ‘bringing third parties into contractual relations with’ ” it. Id. The record shows that Jennette did have that authority. Contrary to Jennette’s argument, the fact that he was hired as an independent contractor is not dispos-itive of this issue. As pointed out by NCDS, the terms “independent contractor” and “agent” are neither antonyms nor mutually exclusive. Jennette had both actual and ostensible authority to bind NCDS. He was authorized to sign contracts on behalf of NCDS. Benson testified that Jennette had the authority “[t]o obligate the corporation to perform the work as outlined in a proposal.” Jennette himself admitted signing agreements on behalf of the company. It also appeared to clients that he had that power. No doubt exists that Jen-nette was known to these clients as an NCDS agent and that the clients themselves, in several cases, believed they were dealing with NCDS when they dealt with Jennette.

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

Related

PURNELL v. PEPSICO INC
M.D. Georgia, 2023
Cotiviti, Inc. v. Deagle
S.D. New York, 2020
Janet Bearoff v. Charles Thomas Craton, III
Court of Appeals of Georgia, 2019
Bearoff v. Craton
830 S.E.2d 362 (Court of Appeals of Georgia, 2019)
POPHAM v. LANDMARK AMERICAN INSURANCE COMPANY Et Al.
798 S.E.2d 257 (Court of Appeals of Georgia, 2017)
Helms & Greene, LLC v. Willis
773 S.E.2d 491 (Court of Appeals of Georgia, 2015)
McMillian v. McMillian
713 S.E.2d 920 (Court of Appeals of Georgia, 2011)
KEG Technologies, Inc. v. Laimer
436 F. Supp. 2d 1364 (N.D. Georgia, 2006)
Condrey v. Suntrust Bank of GA
429 F.3d 556 (Fifth Circuit, 2005)
Georgia Farm Bureau Mutual Insurance v. Croley
588 S.E.2d 840 (Court of Appeals of Georgia, 2003)
Corbin v. Regions Bank
574 S.E.2d 616 (Court of Appeals of Georgia, 2002)
Taylor v. Powertel, Inc.
551 S.E.2d 765 (Court of Appeals of Georgia, 2001)
Seals v. Hygrade Distribution & Delivery Systems, Inc.
549 S.E.2d 412 (Court of Appeals of Georgia, 2001)
Tronitec, Inc. v. Shealy
547 S.E.2d 749 (Court of Appeals of Georgia, 2001)
Hooks v. Cobb Center Pawn & Jewelry Brokers, Inc.
527 S.E.2d 566 (Court of Appeals of Georgia, 1999)

Cite This Page — Counsel Stack

Bluebook (online)
520 S.E.2d 231, 239 Ga. App. 221, 99 Fulton County D. Rep. 2695, 1999 Ga. App. LEXIS 914, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jennette-v-national-community-development-services-inc-gactapp-1999.