MILTON SHLAPAK v. VAN DAU

Court of Appeals of Georgia·Decided June 18, 2025·No. A25A0406·Published

Opinion

FIFTH DIVISION

MCFADDEN, P. J.,

HODGES and PIPKIN, 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

June 18, 2025

In the Court of Appeals of Georgia A25A0406. SHLAPAK et al. v. DAU.

MCFADDEN, Presiding Judge.

This appeal stems from a business relationship between plaintiffs Milton Shlapak and Shlapak Development Company (“SDC”)1, on the one hand, and defendant Van Dau, on the other hand. Essentially, Shlapak and SDC argue that the parties had a partnership agreement; that in breach of that agreement and the fiduciary duties it imposed, Dau usurped partnership opportunities by diverting them to another entity with which Dau was associated; and that Dau failed to disclose those

1 We use the acronym “SDC” to refer to an incorporated entity for which Shlapak serves as president. Shlapak has also done business as an unincorporated entity of the same name.

opportunities to Shlapak but instead affirmatively misrepresented that no opportunities existed.

The trial court granted summary judgment to Dau on the plaintiffs’ various contract, tort, and equitable claims. Central to that decision was the trial court’s holding that, as a matter of law, the parties had not entered into a partnership agreement and did not have a fiduciary or confidential relationship.

As detailed below, we disagree. We hold that a jury question exists as to whether the parties’ agreement created a partnership and gave rise to fiduciary duties. This holding informs our review of the other issues in this appeal. Given that the parties may have had a fiduciary or confidential relationship by virtue of their agreement, we hold that a jury question exists about whether fraud by Dau tolled the statute of limitation until 2019, when Shlapak claims he first learned of the allegedly usurped opportunities. And we hold that jury questions exist as to the plaintiffs’ claims for fraud, breach of contract, breach of fiduciary duty, an accounting, and attorney fees. We reverse the grant of summary judgment to Dau on those claims.

But we do not find error in the trial court’s grant of summary judgment on the plaintiffs’ claim for unjust enrichment. And the plaintiffs have made no argument

specifically related to the trial court’s grant of summary judgment on their claims for the imposition of a constructive trust or equitable lien. We affirm the grant of summary judgment to Dau on those claims.2 1. Facts “To prevail at summary judgment under OCGA § 9-11-56, the moving party must demonstrate that there is no genuine issue of material fact and that the undisputed facts, viewed in the light most favorable to the nonmoving party, warrant judgment as a matter of law.” Peterson v. Peterson, 303 Ga. 211, 213 (1) (811 SE2d 309) (2018) (citations and punctuation omitted). “On appeal from an order granting or denying summary judgment, we conduct a de novo review, construing the evidence and all reasonable conclusions and inferences therefrom in the light most favorable to the nonmovant.” State Auto. Mut. Ins. Co. v. Todd, 309 Ga. App. 213, 213-214 (1) (709 SE2d 565) (2011) (citation and punctuation omitted).

So viewed, the evidence showed that Shlapak is a businessman with experience in development. In the 1980s, he became acquainted with Dau, a naturalized United

2 Oral argument was held in this case on May 1, 2025, and is archived on the court’s website. See Court of Appeals of Georgia, Oral Argument, Case No. A25A0406 (May 1, 2025), available at https://vimeo.com/1081277055.

States citizen originally from Laos. The two developed a close friendship as well as a business relationship.

Shlapak and Dau discussed the possibility of doing business together in Laos, and they traveled to that country where Dau facilitated Shlapak’s introduction to persons in the Laotian government. In 1989, SDC entered into a memorandum with the Laotian government authorizing SDC to develop natural resources in Laos.

On February 16, 1992, SDC and Dau entered into an agreement (“the 1992 agreement”) in which they agreed to

voluntarily associate themselves together for the purpose of conducting general business with the government of Laos. The business (hereinafter referred to as the “Ventures”) shall include but not be limited to:

(a) Oil and gas concession (3800 sq km) joint venture with Monument Oil;

(b) Hydroelectric dam development and associated timber reserves —

presently under joint venture negotiation with Bechtel Corporation;

(c) Iron mini/mill;

(d) Oil refinery/port development on the coast of Vietnam;

(e) Mining projects;

(f) Infrastructure developments; and

(g) Such other business as may be agreed upon by and between the Parties.

Among other things, the agreement provided that the parties share “[a]ny net profits or losses of the Ventures . . . in equal proportions[,]” that they would “devote reasonably equal amounts of time and attention and use the utmost of [their] skills and ability in furtherance of the Ventures[,]” that they would “have an equal voice in the management of the Ventures[,]” and that they would not “have authority to bind the Parties in making contracts and incurring obligations in the name and on the credit of the Parties without the written express consent of the other Party.” The agreement contained a merger clause and provided that it would “continue until dissolved by mutual agreement of the Parties.”

In their business relationship, Shlapak “depended on [Dau] to tell [him] what was going on and what the projects were. . . .” Dau served as a translator to Shlapak, who did not speak the languages used in Laos. Dau, who ultimately moved back to Laos permanently, was, in Shlapak’s words, “in the field with the people” while

Shlapak remained in the United States, and Shlapak relied on Dau to form relationships with people to advance their common interests.

In 2004, SDC entered into an agreement with a Thai company, CH. Karnchang Public Company Limited (“CK”), to develop a hydroelectric dam known as Nam Ngum II (“NNII”). As part of their agreement, SDC and CK formed Southeast Asia Energy Limited (“SEAN”), in which SDC received an equity stake. Although Dau was not a party to that agreement, Shlapak split SDC’s equity stake equally with Dau, believing that it fell within the profit-sharing terms of the 1992 agreement.

Shortly thereafter, Dau’s portion of the equity stake in SEAN was put into the name of an entity called, at various times, PT Construction or PT (Sole) (“PT”). Shlapak assumed PT was Dau’s company. Although Dau testified that he personally had no ownership interest in PT, he was associated with the company; he served as PT’s president and chairman, and the company was owned by Dau’s brother and later, Dau’s son.

In 2004 or 2005, Shlapak observed Dau leaving a meeting with CK, which surprised him because, as “the main person [with] rights to the dam,” Shlapak had “always been included in meetings with [CK].” When Shlapak questioned Dau about

that meeting, Dau told him it was “nothing” and that he was “just looking into getting some work for [his] brother.”

In fact, Dau was talking with CK about PT doing work on the infrastructure needed for resettlement of persons displaced by the NNII dam, and in 2006 SEAN and PT entered into an agreement for that work. Dau did not share with Shlapak the fact that PT would be doing the resettlement infrastructure work. PT later acquired, with Dau’s assistance, other resource development work for the Laotian government.

In the meantime, Shlapak regularly asked Dau if there was further work that the two could do to advance projects under the 1992 agreement. Dau always replied that there was nothing to work on.

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