Mark Broe v. the Crafty Yank, LLC

CourtCourt of Appeals of Georgia
DecidedMarch 10, 2022
DocketA21A1814
StatusPublished

This text of Mark Broe v. the Crafty Yank, LLC (Mark Broe v. the Crafty Yank, 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
Mark Broe v. the Crafty Yank, LLC, (Ga. Ct. App. 2022).

Opinion

THIRD DIVISION DOYLE, P. J., REESE and BROWN, 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

DEADLINES ARE NO LONGER TOLLED IN THIS COURT. ALL FILINGS MUST BE SUBMITTED WITHIN THE TIMES SET BY OUR COURT RULES.

March 10, 2022

In the Court of Appeals of Georgia A21A1809. CARLISLE v. BROE. A21A1814. BROE v. THE CRAFTY YANK, LLC.

DOYLE, Presiding Judge.

These cases trace back to a long-running dispute involving The Crafty Yank,

LLC, a company managed by Mark Broe, and John Carlisle (now deceased) regarding

a lease and a brew pub business called The Eagle and The Lion.1 The pub operated

on commercial property leased by Home Place Properties, Inc., to The Crafty Yank

and Broe. Two lawsuits relevant to these appeals ensued: Home Place Realty sued

Broe in February 2013 seeking damages related to alleged breaches of the commercial

1 A suggestion of death in the record indicates that Carlisle died on March 30, 2021. For purposes of this appeal, and absent any relevant distinction between Carlisle and his estate, we refer to Carlisle and his estate interchangeably as “Carlisle.” lease2 (“Landlord Tenant Lawsuit”), and The Crafty Yank in May 2013 sued Broe for

damages allegedly arising from Broe’s conduct while running the business

(“Fiduciary Duty Lawsuit”).

In the Landlord Tenant Lawsuit, Case No. A21A1809, Carlisle, who was also

the president of Home Place Realty, appeals from a post-appeal order entering a

judgment in his favor but not awarding him damages or a new trial.

In the Fiduciary Duty Lawsuit, Case No. A21A1814, defendant Broe appeals

from an order granting summary judgment to plaintiff The Crafty Yank as to Broe’s

liability for claims of breach of fiduciary duty, breach of contract, and conversion.

For the reasons that follow, we affirm in Case No. A21A1809 and reverse in

Case No. A21A1814.

Case No. A21A1809

Procedural Background. The relevant background was first recounted by this

Court in Carlisle v. Broe (Carlisle I):3

[The Landlord Tenant Lawsuit] arises out of a dispute over a commercial lease agreement (the “Lease”) entered into in September

2 Broe filed related counterclaims against Home Place and added Carlisle as a counterclaim defendant. 3 337 Ga. App. 408 (787 SE2d 340) (2016).

2 2011. Under the Lease, premises located in Griffin, Georgia (the “Premises”) were leased to The Crafty Yank, Inc. (the “Tenant”) by Carlisle. Broe, The Crafty Yank’s CEO, personally guaranteed the Tenant’s performance of the Lease. Carlisle claims the Tenant began violating the Lease in numerous ways shortly after the business began operation under the Lease. Carlisle alleges the Tenant violated state and local laws, as well as permitted customers to vandalize the Premises, interfered with other tenants’ use and enjoyment of the Premises, and failed to pay for work performed on the Premises that resulted in a lien being filed on the title of the Premises.

On January 5, 2013, Carlisle took possession and control of the Premises and secured all the personal property within. In an e-mail to the Tenant, Carlisle claimed he was seizing the Premises due to Tenant’s violations of paragraphs 18 and 19 of the Lease. Carlisle contended that paragraph 27 of the Lease authorized him to reenter and take possession of the Premises, and Paragraph 24 authorized him to secure all personal property on the Premises. He gave the Tenant five days to become compliant with the Lease or the Lease would be terminated. Broe, who acted as the agent for the Tenant, sent Carlisle correspondence on January 10, 2013, through his attorney, indicating the Tenant’s desire to terminate the Lease.

On February 8, 2013, Carlisle brought the underlying action against Broe, as guarantor, seeking payment of outstanding rent, late fees, and the cost of repairs to the Premises. Broe filed an answer and counterclaim that included claims for declaratory judgment, wrongful

3 eviction, trespass, conversion, breach of contract, punitive damages, and attorney fees. On September 22, 2014, Broe filed a motion for partial summary judgment on his claims for declaratory judgment, wrongful eviction, trespass, and conversion, arguing that the Lease was invalid and thus the Tenant was not subject to the terms of the Lease. Carlisle filed his own motion for summary judgment on February 13, 2015, contending that Broe’s claims for wrongful eviction and trespass should be dismissed as a matter of law.

The trial court entered an order on the cross-claims for summary judgment on July 17, 2015. This order consolidated the trial court’s rulings on pending motions in this and several other related cases. With respect to the motions for summary judgment relevant to this case, the trial court denied Carlisle’s motion for summary judgment as to Broe’s claims for wrongful eviction and trespass . . . and awarded summary judgment to Broe, finding Carlisle liable for wrongful eviction and trespass[;] Broe’s conversion claim was withdrawn. [Carlisle’s] appeal followed.4

On appeal, this Court ruled that there were factual issues regarding the payment

of certain late fees and therefore Carlisle’s right to reenter the Premises:

“Accordingly, the grant of summary judgment in favor of Broe on his claims of

wrongful eviction and trespass . . . and the denial of summary judgment as to Carlisle

4 Id. at 409-410.

4 on the same is hereby vacated, and the trial court is ordered to make determinations

consistent with this opinion.”5

On remand, a trial ensued, and the jury found in favor of tenant Broe, awarding

him $251,681.23 in damages, which included $100,000 in punitive damages and

$61,328.73 in attorney fees. Carlisle appealed the denial of his motion for new trial

and judgment notwithstanding the verdict (“JNOV”), as recounted in this Court’s

unpublished opinion in Carlisle v. Broe6 (Carlisle II).7

[T]he [trial] evidence shows that Broe and Carlisle entered into a lease in which Broe would rent space for a brew pub in a building Carlisle owned in Griffin, Georgia. Per the terms of the lease, Broe would pay $3,000 per month for a five-year lease. Rent was due on the first of the month, with late fees assessed at $25 per day. . . . [T]he landlord retained the right to terminate the lease for either failure to pay any portion of the rent or for the failure to abide by any of the lease terms, with seven days notice required in either case. Additionally, under [Paragraph] 24 of the lease, “[i]f and whenever the Tenant is in default in payment of any money, whether . . . deemed as rent, or any part of the rent, the Landlord may, without notice or any form of legal process, enter

5 Id. at 413. 6 Case No. A19A1821 (decided March 11, 2020). 7 As needed, we have relied on the record in Carlisle II (Case No. A19A1821), which remains with this Court at the present time.

5 upon the Premises and seize, remove and sell the Tenant’s goods[.]” In conjunction with this provision, [Paragraph] 27 (g) provides: “[i]f the Landlord reenters the Premises or terminates this Lease, then . . . after reentry, the Landlord may terminate the Lease on giving 5 days written notice of termination to the Tenant. Without this notice, reentry of the Premises by the Landlord or its agents will not terminate this Lease.”

Broe signed the lease and began renovating the space to install the brewery. He obtained several investors, including Carlisle, and Carlisle solicited additional investors. He also formed a corporation, The Crafty Yank, LLC, as the owner of the pub.

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Bluebook (online)
Mark Broe v. the Crafty Yank, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mark-broe-v-the-crafty-yank-llc-gactapp-2022.