PANGBORN, LLC v. ROGER STONECIPHER

CourtCourt of Appeals of Georgia
DecidedJune 27, 2023
DocketA23A0490
StatusPublished

This text of PANGBORN, LLC v. ROGER STONECIPHER (PANGBORN, LLC v. ROGER STONECIPHER) 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
PANGBORN, LLC v. ROGER STONECIPHER, (Ga. Ct. App. 2023).

Opinion

FIFTH DIVISION MCFADDEN, P. J., BROWN and MARKLE, 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 27, 2023

In the Court of Appeals of Georgia A23A0490. PANGBORN, LLC et al. v. STONECIPHER.

MCFADDEN, Presiding Judge.

This case calls upon us to administer Illinois contract construction law. And,

as a preliminary matter, it calls upon us to reiterate that the duty of clerks of court to

file pleadings is ministerial and does not entail exercises of discretion.

This is a contract dispute between Roger Stonecipher and his former

employers, Pangborn, LLC and Pangborn’s owner, United Generations, LLC. The

parties disagree about the amount of a long-term incentive award that Pangborn owes

Stonecipher.

Upon Stonecipher’s termination, the parties entered a separation agreement

under which he is entitled to receive an award in a specified amount “subject to

audited financials.” The agreement does not elaborate. The parties disagree about the circumstances under which the audited financials alter the award and about how such

an alteration is to be calculated.

There had been provisions for such an award and for a method calculating it

in a pre-existing long-term incentive plan that had governed Stonecipher’s award

during his employment, and the award specified in the separation agreement is the

maximum award that would have been available under that plan. But the separation

agreement contains a merger clause that explicitly supersedes that plan.

Nevertheless, relying on that plan’s method of calculation, Pangborn paid

Stonecipher about a third of the amount specified in the separation agreement.

Stonecipher brought this action against Pangborn and United Generations

(collectively, the defendants). He alleged breach of the separation agreement, breach

of the duty of good faith and fair dealing implied in that agreement, and sought

attorney fees under OCGA § 13-6-11.

The trial court granted Stonecipher partial summary judgment on his breach of

contract claim, holding that as a matter of law Stonecipher was entitled to the full

amount of long-term incentive award specified in that agreement. The trial court held

that the agreement’s merger clause prevented him from considering the terms of the

long-term incentive plan in construing the contract. And the trial court held that “the

2 amount and results of the audited financials are inapplicable” to a ruling on

Stonecipher’s summary judgment claim. The trial court also denied the defendants’

cross-motion for summary judgment on all of the claims.

The defendants appeal.1 As to the breach of contract claim, they argue that the

trial court erred in refusing to consider either the long-term incentive plan or

Pangborn’s audited financial statements when construing the separation agreement.

And they argue that, construed in light of those documents, the separation agreement

unambiguously permitted them to pay Stonecipher less than the full amount of the

long-term incentive award.

As detailed below, we find that the long-term incentive plan cannot be

considered when construing the separation agreement. The audited financial

statements are to be considered, but the separation agreement is ambiguous as to how

the audited financial statements are to affect the amount of long-term incentive award

that Pangborn is required to pay Stonecipher.

Under Illinois law, which governs this agreement, extrinsic evidence must be

considered in resolving that ambiguity. Because both sides argued to the trial court

1 Although the defendants sought to appeal the trial court’s order by filing an application for interlocutory review under OCGA § 5-6-34 (b), the order is subject to direct appellate review. See OCGA § 9-11-56 (h).

3 that the agreement was unambiguous, the impact of any extrinsic evidence in

construing the agreement was not raised or ruled upon below. So we reverse the grant

of partial summary judgment to Stonecipher and affirm the denial of summary

judgment to the defendants on the claim for breach of contract.

On the other hand, we also find genuine issues of material fact as to whether

the defendants acted in bad faith, so we affirm the trial court’s denial of summary

judgment to them on Stonecipher’s claims for a breach of the duty of good faith and

fair dealing and for attorney fees.

1. The defendants’ notice of appeal.

Before turning to the merits of this appeal, we note that an issue arose

regarding whether the defendants timely filed their notice of appeal. It appears that

the clerk of the trial court initially rejected the filing because its caption identified the

parties as “Appellants-Defendants” and “Appellee-Plaintiff” rather than “Defendants”

and “Plaintiffs.”

The defendants corrected this perceived imperfection as soon as they learned

of the rejection. But as a consequence of that rejection, the notice of appeal was

initially deemed filed a day late, so Stonecipher moved to dismiss the appeal. The trial

court granted the defendants’ motion to relate the filing of the notice of appeal to the

4 date of the defendants’ initial, timely submission. And Stonecipher, to his credit, then

withdrew his motion.

Nevertheless, we take this opportunity to reiterate that clerks of court “have the

legal duty to file pleadings, not to ascertain their legal effect. These duties of the clerk

relating to the filing of pleadings are ministerial in nature and do not involve the

exercise of discretion.” Alexander v. Gibson, 300 Ga. 394, 395 (794 SE2d 597)

(2016) (citations and punctuation omitted). Accord Ford v. Hanna, 292 Ga. 500, 501

n. 2 (739 SE2d 309) (2013); Hood v. State, 282 Ga. 462, 464 (651 SE2d 88) (2007).

More particularly, there is no authority for the proposition that a notice of

appeal must denominate the parties in the way the trial court clerk undertook to

require. On the contrary, under our Appellate Practice Act, the form of a notice of

appeal is sufficient so long as it substantially complies with the template set forth in

OCGA § 5-6-51. A technically deficient notice of appeal can confer jurisdiction upon

an appellate court so long as it is “sufficient to notify the opposing party that an

appeal [is] being taken [and is] not so defective as to mislead or prejudice him.”

Steele v. Cincinnati Ins. Co., 252 Ga. 58, 60 (311 SE2d 470) (1984).

Where, as here, a timely submitted notice of appeal is sufficient to confer

jurisdiction, the clerk of the trial court does not have the authority to act in a way that

5 would render the filing of the notice untimely and divest the appellate court of

jurisdiction. See generally Hughes v. Sikes, 273 Ga. 804, 805 (1) (546 SE2d 518)

(2001) (“Although the notice of appeal must be filed in the court below, [the appellate

court] alone has the authority to determine whether such filing is sufficient to invoke

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