Prenita Alimchandani v. a & M Hospitalities, LLC

CourtCourt of Appeals of Georgia
DecidedMarch 16, 2021
DocketA21A0525
StatusPublished

This text of Prenita Alimchandani v. a & M Hospitalities, LLC (Prenita Alimchandani v. a & M Hospitalities, 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
Prenita Alimchandani v. a & M Hospitalities, LLC, (Ga. Ct. App. 2021).

Opinion

THIRD DIVISION MCFADDEN, C. J., DOYLE, P. J., and HODGES, J.

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 16, 2021

In the Court of Appeals of Georgia A20A1688. A&M HOSPITALITIES, LLC et al. v. DO-058 ALIMCHANDANI. A21A0525. ALIMCHANDANI v. A&M HOSPITALITIES, LLC. DO-021

DOYLE, Presiding Judge.

A decade after Prenita Alimchandani and Jane Motley created A&M

Hospitalities, LLC, Alimchandani filed this action against A&M, Jane, and David

Motley (Jane’s husband), seeking to judicially dissolve A&M and asserting claims

for breach of contract and breach of fiduciary duty.1 The trial court appointed

Christopher A. Cohilas as a limited receiver, which appointment was affirmed by this

1 Alimchandani had a 25 percent ownership in A&M, and Jane Motley had a 75 percent ownership. In 2006, Jane transferred half of her interest in A&M to her husband, David Motley. Court,2 and later appointed him as an auditor/special master. Alimchandani filed an

arbitration demand, and the arbitrator entered an award in favor of A&M and JDS&J

Enterprises, LP,3 on Alimchandani’s claims and in favor of JDS&J on its

counterclaim, and the trial court eventually confirmed the arbitration award. In Case

No. A20A1688, the defendants appeal the trial court’s order appointing Cohilas as

special master/auditor, and in Case No. A21A0525, Alimchandani appeals the trial

court’s confirmation of the arbitration award. For the reasons that follow, we affirm

in Case No. A21A0525, and in Case No. A20A1688, we reverse and vacate the trial

court’s order appointing Cohilas as special master/auditor.4

The record shows that Jane and Alimchandani created A&M, which develops

and operates hotels throughout Georgia, Florida, and Alabama.5 According to

Alimchandani, the Motleys misappropriated and wasted company assets and failed

2 See A&M Hospitalities, LLC v. Alimchandani, 351 Ga. App. 310 (828 SE2d 615) (2019), cert. denied, A&M Hospitalities, LLC v. Alimchandani, Case No. S19C1563 (decided Feb. 10, 2020). 3 In 2012, the Motleys transferred their ownership interests to JDS&J. 4 Because these matters were decided based on the same facts and arise from the same trial court case, we consolidate these appeals for purposes of this opinion. 5 A detailed recitation of the underlying facts and claims is set forth in A&M Hospitalities, 351 Ga. App. at 310-314.

2 to make required distributions, so she filed suit to judicially dissolve A&M and

asserted breach of fiduciary duty and RICO claims.6 In January 2018, Alimchandani

filed an arbitration demand, and she also filed a motion for immediate appointment

of a receiver. In July 2018, the trial court appointed attorney Christopher Cohilas as

a limited receiver for the purposes of audit and discovery. With regard to payment,

the limited receiver order provided that Cohilas was to receive “reasonable

compensation” for his services, paid by A&M.7 The defendants appealed the limited

receiver order.

Following an August 2018 arbitration hearing, the arbitrator issued her final

award on September 28, 2018, finding in favor of the defendants on Alimchandani’s

6 See id. at 311. 7 In full, the payment provision states: “The Receiver and its professionals shall receive reasonable compensation for services, payable from the funds of the Company. The Receiver’s fee shall be based on the standard hourly billing rate of the employees of the Receiver plus reasonable out-of-pocket expenses until the date of the Receiver’s discharge. The Receiver may establish a segregated Retainer Account from the funds of the Company. Every month thereafter, the Receiver shall submit an invoice to the parties for services as a Receiver and, from time to time, invoices for the services of its professionals. Ten days after submission of such invoice and, with no objection by any party, the Receiver shall be entitled to receive payment equal to the amount set forth in the invoice from the Retainer Account. The Retainer Account balance may[ ]be replenished as necessary from the Company’s funds. Upon a request for establishment or replenishment of funds in the Retainer Account, the managers of the Company shall cause the requested amount to be paid from Company funds towards the Retainer Account within three business days.”

3 claims and in favor of JDS&J on its counterclaims, awarding damages in the amount

of $95,093.52, which included $70,800 for attorney fees. On October 1, 2018, the

defendants moved for confirmation of the award, and on December 28, 2018,

Alimchandani filed a motion to vacate the arbitration award.

On May 15, 2019, this Court affirmed the limited receiver order in a published

opinion, concluding that based on the language of the order, the trial court had

actually appointed Cohilas as an auditor, not a receiver, and that the appointment was

not an abuse of discretion.8 While the appeal was pending, the defendants moved for

clarification of the appointment order, challenging Cohilas’s work. In July 2019, the

defendants filed an objection to Cohilas’s billing statements through May 31, 2019,

and the trial court overruled their objections and ordered all of the fees and expenses

paid. On October 7, 2019, based both on this Court’s opinion and the defendants’

motion, the trial court issued a separate order (“the special master/auditor order”)

clarifying Cohilas’s appointment. In the order, which was written by Cohilas, the trial

court explained that Cohilas was appointed as an auditor and special master “as those

terms are contemplated and authorized by OCGA §§ 9-7-1, 9-7-2, 9-7-3, and Uniform

Superior Court Rule [(“USCR”)] 46.” Specifically, the court vested Cohilas with

8 A&M Hospitalities, 351 Ga. App. at 315-316 (1).

4 authority to, among other things: conduct an accounting of A&M ; “hear motions,

allow amendments[,] and pass upon all questions of law and fact” ; “address all

pretrial and discovery matters”; “monitor implementation of and compliance with all

orders of the court[,] and [h]e is permitted to impose upon a party any non-contempt

sanction provided by OCGA §§ 9-11-37 and 9-11-45”; “conduct all trial proceedings

and make and recommend findings of fact on all issues to be decided by the court

without a jury”; and engage in ex parte communications with the parties, counsel, and

the trial court for certain purposes. The special master/auditor order also restated the

5 payment provision in the initial order, with minor changes.9 The defendants appealed

the special master/auditor award on October 11, 2019.

On December 6, 2019, the trial court entered an order of confirmation and

judgment of the final arbitration award, and Alimchandani appealed.10

Case No. A20A1688

9 The new payment provision provides: “The Auditor/Special Master and its professionals shall receive reasonable compensation for services, payable from the funds of the Company.

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