L. LIN WOOD v. NICOLE WADE

Court of Appeals of Georgia·Decided February 4, 2022·No. A21A0558·Published

Opinion

FIFTH DIVISION

RICKMAN, C. J.,

MCFADDEN, P. J., and SENIOR APPELLATE JUDGE PHIPPS

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

February 4, 2022

In the Court of Appeals of Georgia A21A0558. WOOD et al. v. WADE et al.

PHIPPS, Senior Appellate Judge.

This appeal arises from a breach of contract and fraud action brought by Nicole Wade, Jonathan Grunberg, Taylor Wilson, and Wade, Grunberg & Wilson, LLC (“Appellees”) against L. Lin Wood and L. Lin Wood P.C. (“Appellants”). The trial court granted the Appellees’ request for an interlocutory injunction to enjoin the Appellants from violating a non-disparagement clause in a settlement agreement between the parties. On appeal, the Appellants contend that the trial court erred by entering the interlocutory injunction, which they argue amounts to an impermissible prior restraint against their constitutional right of free speech. The Appellants also contend that the trial court erred by basing the interlocutory injunction on a

misinterpretation of the plain language of the non-disparagement clause. For the following reasons, we affirm.

The parties are lawyers, who formerly worked together, and their firms. In the context of ending their professional relationship, the parties entered into a settlement agreement which contains the following non-disparagement clause:

3. Non-Disparagement. LLW PC and L. Lin Wood, individually, agree not to disparage WGW.[1] This agreement is not to be construed to imply or suggest that LLW PC and/or L. Lin Wood has disparaged WGW or its members prior to the date of this Agreement. Nothing in this provision prevents the Parties from providing truthful information about each other and its members in response to a court order or subpoena, or during any federal, state, or local governmental body investigation or proceeding. LLW PC and L. Lin Wood, individually, do not seek in this Agreement any legal protection regarding any future disparagement of LLW PC and L. Lin Wood, individually, but shall address any future false and defamatory statements by WGW and its members about LLW PC and L. Lin Wood, individually, on a case-by-case basis as provided by law.

The Appellees filed this lawsuit seeking to enforce the payment of certain fees under the terms of the settlement agreement. Prior to filing their complaint, the

1 The settlement agreement defines LLW PC to mean L. Lin Wood, P.C. and defines WGW to mean, as relevant here, the Appellees.

Appellees provided a copy of the draft complaint to the Appellants. According to Wilson, clients and co-counsel of the Appellees told him that Wood had called them and referred to the Appellees as “extortionists” in at least one phone call. Wood also e-mailed what he contends is a shared client and stated, “Nicole Wade and her law partners are preparing to sue me tomorrow for fraud in a frivolous lawsuit intended to extort money . . . that they did not earn,” “are putting their greed and personal interests ahead of the interests of their clients,” are “crooks,” and are guilty of other “wrongdoing.” (Punctuation omitted.) After the lawsuit was filed, Wood issued a statement that he submitted to the press and posted on social media. In the statement, Wood accused the Appellees of, among other things, engaging “in a disgraceful and unprofessional effort to publicly attack [him],” of participating in a “shakedown effort” “with an intent to damage [his] professional reputation under the guise of the litigation privilege” and “to extort money from [him].”

The Appellees filed a motion seeking a preliminary injunction to enjoin the Appellants from violating the non-disparagement clause. At the hearing on the motion, Wood indicated (through counsel) to the trial court that he wanted to be able to continue to make communications and comments about the Appellees in social media while this litigation is pending. The trial court granted the Appellees’ motion,

finding that the Appellants’ statements that the Appellees had filed a frivolous lawsuit for the purpose of extorting the Appellants, were seeking to be paid money that they did not earn, and were participating in a shakedown effort were disparaging on their face. In the order at issue here, the trial court preliminarily enjoined the Appellants from “[i]ssuing, publishing or making disparaging statements or disparaging comments about [the Appellees] whether orally, in writing, digitally or through social media.” The order stated:

Nothing in this order shall prevent [the Appellants] from providing truthful information about [the Appellees] during this lawsuit, which shall include hearings, pleadings, trials, depositions, or discovery proceedings. Similarly, this [o]rder shall not prevent [the Appellants]

from providing truthful information about [the Appellees] in response to a court order or subpoena, or during any federal, state, or local government body investigation or proceeding.

The Appellants appeal from the order granting the interlocutory injunction.

Whether to grant a request for interlocutory injunctive relief is within the trial court’s discretion, and we will not reverse its decision “unless the trial court made an error of law that contributed to the decision, there was no evidence on an element essential to relief, or the court manifestly abused its discretion.” SRB Investment Svcs., LLLP v. Branch Banking & Trust Co., 289 Ga. 1, 5 (3) (709 SE2d 267) (2011)

(citation and punctuation omitted). See OCGA § 9-5-8 (“The granting and continuing of injunctions shall always rest in the sound discretion of the judge, according to the circumstances of each case.”) “The purpose for granting interlocutory injunctions is to preserve the status quo, as well as balance the conveniences of the parties, pending a final adjudication of the case.” Kinard v. Ryman Farm Homeowners’ Assn., 278 Ga. 149, 149 (598 SE2d 479) (2004) (citation and punctuation omitted).

When deciding whether to issue an interlocutory injunction, a trial court should consider whether:

(1) there is a substantial threat that the moving party will suffer irreparable injury if the injunction is not granted; (2) the threatened injury to the moving party outweighs the threatened harm that the injunction may do to the party being enjoined; (3) there is a substantial likelihood that the moving party will prevail on the merits of [its] claims at trial; and (4) granting the interlocutory injunction will not disserve the public interest. The first factor — substantial threat of irreparable injury if an interlocutory injunction is not entered — is the most important one, given that the main purpose of an interlocutory injunction is to preserve the status quo temporarily to allow the parties and the court time to try the case in an orderly manner.

City of Waycross v. Pierce County Bd. of Commrs., 300 Ga. 109, 111 (1) (793 SE2d 389) (2016) (citation and punctuation omitted). “Because the test for the issuance of

an interlocutory injunction is a balancing test, it [is] not incumbent upon the [movant] to prove all four factors to obtain the interlocutory injunction.” Id.

1. The Appellants’ primary argument for reversal is that the trial court erred as a matter of law by entering an injunction that amounts to an impermissible prior restraint against their constitutional right of free speech. We disagree.

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