Miller v. Lomax

596 S.E.2d 232, 266 Ga. App. 93, 2004 Fulton County D. Rep. 873, 2004 Ga. App. LEXIS 303
CourtCourt of Appeals of Georgia
DecidedMarch 4, 2004
DocketA03A1945
StatusPublished
Cited by31 cases

This text of 596 S.E.2d 232 (Miller v. Lomax) 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
Miller v. Lomax, 596 S.E.2d 232, 266 Ga. App. 93, 2004 Fulton County D. Rep. 873, 2004 Ga. App. LEXIS 303 (Ga. Ct. App. 2004).

Opinion

Andrews, Presiding Judge.

Estelle Lee Miller, Linda J. Miller, and Robert McCready Miller sued Robert R. Lomax as executor of the estate of Thomas Eugene Miller, Carolyn Baldwin Miller, and Ray’s Uptown Body Shop, Inc. for fraud and breach of contract. By amendment to their complaint, the Miller plaintiffs added claims against Carolyn Miller and Lomax for interference with contract and against Lomax for breach of fiduciary duty. The trial court granted summary judgment to Lomax, Carolyn Miller, and Ray’s. The Miller plaintiffs appeal. For the reasons set forth below, we affirm in part and reverse in part.

To prevail on a motion for summary judgment, the moving party must demonstrate that there is no genuine issue of material fact, and that the undisputed facts, viewed in a light most favorable to the party opposing the motion, warrant judgment as a matter of law. OCGA§ 9-11-56 (c); Lau’s Corp. v. Haskins, 261 Ga. 491 (405 SE2d 474) (1991). A defendant carries this burden by demonstrating the absence of evidence as to one essential element of the plaintiffs case. Should the defendant do so, the plaintiff “cannot rest on its pleadings, but rather must point to specific evidence giving rise to a triable issue.” Id. Our review is de novo. Pyle v. City of Cedartown, 240 Ga. App. 445, 446 (524 SE2d 7) (1999).

Lee Miller and Thomas Miller were married in 1967 and divorced on May 11, 1994. In contemplation of their divorce, Lee Miller and Thomas Miller entered into a Settlement Agreement for the division of the marital property. The Settlement Agreement provided that “[a]s an equitable division of marital property, [Thomas Miller] shall pay to [Lee Miller] the sum of $125,000.00 on March 1, 1994.” The Settlement Agreement also required that Thomas Miller execute a will in which he designated his adopted children, Robert Miller and Linda Miller, and his grandson, Robert Jacob Miller, as beneficiaries of not less than a third of his net estate. Further, the Settlement *94 Agreement required that Thomas Miller “shall not make any conveyance, gift or other disposition of assets in order to substantially reduce his estate and/or to defeat the intent of this [agreement].”

The Settlement Agreement was dated March 1, 1994, and was signed by the parties on March 21,1994. On March 10,1994, Thomas Miller paid Lee Miller $100,000 of the $125,000 contemplated by the Settlement Agreement. On March 14, 1994, Thomas Miller transferred $472,000 to Carolyn Miller, then known as M. C. Baldwin, in what Carolyn Miller claims to be a gift.

Ray’s Uptown Body Shop, Inc. was incorporated on May 27,1994, and received $472,000 in cash from stock subscriptions. Carolyn Miller received 158,000 shares for payment of $158,000; Thomas Miller received 157,000 shares for payment of $157,000; and Ray Hendrix received 157,000 shares for payment of $157,000. The shares owned by Thomas Miller and Hendrix were pledged to Carolyn Miller as collateral for loans made to Thomas Miller and Hendrix by Carolyn Miller to fund the purchase of the shares.

Evidence shows that on May 26, 1994, Thomas Miller, in his individual capacity and as promoter for Ray’s, purchased land from JNO. A. Pope Motor Company for $472,000. The warranty deed of the land purchased by Thomas Miller, with Ray’s as the named grantee, was filed in the superior court on May 27, 1994. Lee Miller and the other plaintiffs contend that the $472,000 purchase of real estate by Thomas Miller and its transfer to Ray’s were separate from and additional to the cash Ray’s received from the subscriptions, and neither Ray’s nor the other defendants have refuted this claim for purposes of summary judgment.

CarolynMiller married Thomas Miller on July 15,1994, and they remained married until Thomas Miller’s death on January 7, 1998. Consistent with the requirements of the Settlement Agreement, Thomas Miller executed a will bequeathing one-third of his property to his daughter, son, and grandson, in equal shares. Attorney Lomax was named executor under the will. After Thomas Miller’s death, Lomax filed a declination of his right to serve as executor. Robert Miller then filed a petition to probate the will in solemn form and for letters of administration. Carolyn Miller filed a caveat to Robert Miller’s petition.

On February 26, 1999, Lomax withdrew his prior declination to serve as executor and offered to serve as executor of Thomas Miller’s estate. After a hearing, the probate judge appointed Lomax as executor of the estate, and this order was not appealed. On September 10,1999, Carolyn Miller filed her application for year’s support with the probate court with a verified list of personal assets of Thomas Miller showing assets, apart from personal effects, of $2,500 in cash ($78,000 excluding secured debt) and 157,000 shares of stock in Ray’s *95 Uptown Body Shop. Lee Miller and Robert Miller filed the underlying suit on October 1, 1999, in the Superior Court of Muscogee County.

Although Carolyn Miller’s application for year’s support shows no significant assets apart from the shares in Ray’s, according to an October 3, 1995 financial statement, Thomas Miller and Carolyn Miller had joint assets of $1,260,000 and net worth of $1,201,000. It also appears that Thomas Miller sold owned real estate in February 1994 for $800,000, and a portion of these monies was used to fund the March 14, 1994 payment to Carolyn Miller.

1. Probate judge. The Miller plaintiffs use a substantial portion of their appellate briefs arguing that because the probate judge had a conflict of interest but failed to recuse herself sua sponte, this “renders all subsequent proceedings nugatory.” However, the underlying claims were filed in the superior court, and the Miller plaintiffs do not demonstrate how the actions of the probate judge are relevant to the issues in this appeal.

2. Lomax, as executor of the estate of Thomas Miller. The Miller plaintiffs claim the trial court erred in granting summary judgment to Lomax in his capacity as executor of the estate of Thomas Miller. We agree.

(a) In the Settlement Agreement, Thomas Miller agreed that he would not make a conveyance or gift or other disposition of assets which would substantially reduce his assets. At issue is whether Thomas Miller breached that agreement when he gave $472,000 to Carolyn Miller on March 14, 1994. Lomax’s contention is that the Settlement Agreement became effective on March 21, 1994, the day of its execution, and prior transactions do not come within its scope. The Miller plaintiffs argue that the Settlement Agreement was effective on March 1, 1994, or March 10, 1994.

It is well settled that, as between the parties to a contract, the effective date of their agreement may precede the date of physical execution. American Cyanamid Co. v. Ring, 248 Ga. 673, 675 (286 SE2d 1) (1982). “[Cjontracting parties may agree to give retroactive effect... to their contracts as they may see fit.” Goldstein v. Ipswich Hosiery Co., 104 Ga. App. 500, 506 (4) (a) (122 SE2d 339) (1961).

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Cite This Page — Counsel Stack

Bluebook (online)
596 S.E.2d 232, 266 Ga. App. 93, 2004 Fulton County D. Rep. 873, 2004 Ga. App. LEXIS 303, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-lomax-gactapp-2004.