Omni Builders Risk, Inc. v. Bennett

750 S.E.2d 499, 325 Ga. App. 293
CourtCourt of Appeals of Georgia
DecidedNovember 21, 2013
DocketA13A1137; A13A1138
StatusPublished
Cited by6 cases

This text of 750 S.E.2d 499 (Omni Builders Risk, Inc. v. Bennett) 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
Omni Builders Risk, Inc. v. Bennett, 750 S.E.2d 499, 325 Ga. App. 293 (Ga. Ct. App. 2013).

Opinion

Branch, Judge.

These companion appeals mark the second appearance of this dispute before us. Plaintiff Lori Bennett brought a discrimination charge before the Equal Employment Opportunity Commission (“EEOC”) against her ex-employer, Omni Builders Risk, Inc. (“Omni”), on the ground that Bennett had been terminated because she had become pregnant. After an effort at mediation, Bennett sued Omni to enforce a settlement agreement allegedly reached there and also sued James Dillard, Omni’s president and majority shareholder, for fraudulent inducement because he allegedly induced her to participate in the mediation. Omni counterclaimed for breach of the mediation agreement, which had provided that the parties’ negotiations could not become the subject of litigation. In Omni Builders Risk v. Bennett (“Omni Builders /”), 313 Ga. App. 358 (721 SE2d 563) (2011) (physical precedent only), this Court reversed a grant of partial summary judgment to Bennett because mediation had not produced a settlement agreement in that Dillard had refused to sign a proposed agreement. Id. at 362 (l).1 On remand, Omni moved to add Bennett’s counsel and counsel’s law firm as party defendants to Omni’s counterclaim for breach of the mediation agreement. The trial court granted Bennett’s motion for summary judgment as to Omni’s counterclaim on the ground that the mediation agreement was a contract between the parties and the mediation company, and “not a contract creating obligations between [Bennett] and [Omni] or the other signatories thereto.” The trial court also denied Dillard’s motions to add Bennett’s counsel and her law firm as party defendants to Omni’s counterclaim and for attorney fees under OCGA § 9-15-14.

In Case No. A13A1137, Omni argues that the trial court erred when it dismissed Omni’s counterclaim for breach of the mediation agreement and when it denied Omni’s motion to add Bennett’s counsel and her law firm as party defendants to that counterclaim. In Case No. A13A1138, Dillard’s daughter2 argues that the trial court erred when it refused to conduct an evidentiary hearing on her motion for attorney fees under OCGA § 9-15-14 and when it denied her motion to add Bennett’s counsel and her law firm as parties. We [294]*294affirm in Case No. A13A1137 and reverse and remand for further proceedings in Case No. A13A1138.

The underlying facts are set out in our previous opinion as follows:

During the pendency of the EEOC claim, per Bennett’s employment contract with Omni, on November 2, 2008, the parties attended a mediation at which [Dillard,] Bennett and their respective attorneys were present. The four attendees signed a mediation agreement which provided guidelines for the mediation process.

Omni Builders I, supra at 359. The mediation agreement was reached by what the preamble to the document called “the undersigned parties,” including Dillard, Dillard’s counsel, Bennett, and Bennett’s counsel. The mediation agreement specified that the mediation service’s “contract for services is with the attorney(s),” from whom the mediation service “expect[ed] payment.” The agreement also provided that “[a]ll that occurs during the mediation process shall be confidential and may not be recorded, and shall not be revealed in any subsequent legal proceedings or otherwise,” and that “[a]ll parties agree not to institute any action based on the mediation.”

During the mediation,

the parties preliminarily agreed to settle the claim for $65,000, after which the mediator prepared a “settlement memorandum” which had signature lines for both parties and their attorneys. The memorandum provided that Bennett would release all claims and withdraw the discrimination charge filed with the EEOC, and accept $65,000 in damages, and Omni would pay the mediation costs. The memorandum included a provision for $2,000 in liquidated damages for breach of the settlement agreement. Bennett and Dillard were in separate caucus rooms during this time, and Dillard’s attorney averred that the mediator prepared the memorandum after several hours of negotiation and took the proposal to Bennett and her attorney first for their signatures. After Bennett and her attorney signed the memorandum, the mediator took the memorandum to Dillard and his attorney. The attorney signed the document, but Dillard refused and left the mediation. The mediator returned to Bennett and her attorney and told them about the incident.

[295]*295Omni Builders I, supra at 359. Bennett then brought this action against Omni for breach of the settlement agreement and expenses of litigation under OCGA § 13-6-11, and against Dillard personally for fraudulent inducement.

Bennett’s claim for fraudulent inducement alleged that Dillard had “represented to [Bennett] that he had a good faith interest in settling their dispute when he agreed to mediate it”; that Bennett had “relied on [Dillard’s] representation” as she prepared for and attended the mediation; and that “when [Dillard] suddenly and inexplicably refused to abide by the terms of the settlement agreement created by and assented to by the parties,” Bennett suffered damages “equaling wages lost while attending the mediation and attorney [ ] fees incurred as a result of the mediation.” At deposition, however, Bennett testified that she knew that her employment contract required her to mediate any dispute with Omni, that Dillard had made no representation on which she relied in preparing for or attending the mediation, that she was not aware that her counsel had added a claim of fraudulent inducement against Dillard, and that counsel had instructed her not to answer whether she had authorized them to sue Dillard personally.

In his answer, Dillard alleged that Bennett had failed to state a claim for fraud. Dillard also moved for a more definite statement of that claim. On December 8, 2009, Bennett’s counsel sent Dillard’s counsel an e-mail to the effect that Dillard’s motion was “convincing” such that Bennett would dismiss her fraudulent inducement claim. On December 15, 2009, Bennett dismissed the fraudulent inducement claim without prejudice. In his deposition, Dillard testified that although “a lot of people... assumed” that Omni or its insurer “would have to pay some sort of money” in order to settle Bennett’s claim, Dillard himself “knew” that the case would not require settlement.

At an April 2012 hearing on pending motions in the case, the trial court barred Dillard from examining Bennett’s counsel concerning the framing and prosecution of Bennett’s fraudulent inducement claim. In its final orders, the court granted Bennett’s oral motion for summary judgment on Omni’s counterclaim, denied Omni’s motion to add Bennett’s counsel and her law firm as party defendants to that counterclaim, and denied Dillard’s motion for fees, concluding that there was “a great deal of circumstantial evidence from which [Bennett] and her attorneys could have reasonably believed that a fraudulent inducement claim against Dillard was well-founded.” These appeals followed.

[296]*296 Case No. A13A1137

1.

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Cite This Page — Counsel Stack

Bluebook (online)
750 S.E.2d 499, 325 Ga. App. 293, Counsel Stack Legal Research, https://law.counselstack.com/opinion/omni-builders-risk-inc-v-bennett-gactapp-2013.