Rainbow Real Investors, Lp v. Red Oak Village Condominium Association, Inc.

CourtCourt of Appeals of Georgia
DecidedAugust 4, 2025
DocketA25A0811
StatusPublished

This text of Rainbow Real Investors, Lp v. Red Oak Village Condominium Association, Inc. (Rainbow Real Investors, Lp v. Red Oak Village Condominium Association, Inc.) 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
Rainbow Real Investors, Lp v. Red Oak Village Condominium Association, Inc., (Ga. Ct. App. 2025).

Opinion

FIRST DIVISION BROWN, C. J., BARNES, P. J., and WATKINS, 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

August 4, 2025

In the Court of Appeals of Georgia A25A0811. RAINBOW REAL INVESTORS, LP v. RED OAK VILLAGE CONDOMINIUM ASSOCIATION, INC.

BARNES, Presiding Judge.

In this case arising from claims of continuing nuisance and trespass, the trial

court denied the motion to open default judgment filed by defendant Rainbow Real

Investors, LP (“Rainbow”) and subsequently granted summary judgment in favor of

the plaintiff Red Oak Village Condominium Association, Inc. (“Association”).

Rainbow now appeals these rulings. For the reasons discussed below, we affirm.

The record reflects that the Association is a domestic non-profit corporation

and the condominium association for Red Oak Village (“Village”) located in Athens-

Clarke County, Georgia, and the Association maintains the common areas of the

Village, including the parking lot, landscaping, and stormwater drainage facilities. Rainbow owns the property adjacent to the Village and leases it to a skilled nursing

and rehabilitation center. Rainbow’s property is uphill from the Village, and Rainbow

does not own a drainage easement over the Village’s common areas.

On April 11, 2023, the Association sued Rainbow, alleging that as a result of

Rainbow’s acts and omissions, “the flow of water from [Rainbow’s] property has been

concentrated, increased by artificial means, and diverted onto the common [areas] of

[the] Village,” causing ongoing erosion and sedimentation problems. The Association

asserted claims for continuing nuisance and trespass, and it sought damages, attorney

fees under OCGA § 13-6-11, and permanent injunctive relief.

On April 18, 2023, Rainbow was served with the summons and complaint.

Because Rainbow did not timely file an answer, the lawsuit went into automatic

2 default. See OCGA § 9-11-55 (a).1 Following entry of the automatic default, Rainbow

did not open the default as a matter of right within 15 days. See id.

On June 8, 2023, the Association moved for default judgment, and the trial

court granted the motion on July 17, 2023. In its order, the trial court concluded that

as a result of its default, Rainbow admitted that it owned the property adjacent to the

Association, and that it had concentrated, increased by artificial means, and diverted

1 See OCGA § 9-11-55 (a) provides: If in any case an answer has not been filed within the time required by this chapter, the case shall automatically become in default unless the time for filing the answer has been extended as provided by law. The default may be opened as a matter of right by the filing of such defenses within 15 days of the day of default, upon the payment of costs. If the case is still in default after the expiration of the period of 15 days, the plaintiff at any time thereafter shall be entitled to verdict and judgment by default, in open court or in chambers, as if every item and paragraph of the complaint or other original pleading were supported by proper evidence, without the intervention of a jury, unless the action is one ex delicto or involves unliquidated damages, in which event the plaintiff shall be required to introduce evidence and establish the amount of damages before the court without a jury, with the right of the defendant to introduce evidence as to damages and the right of either to move for a new trial in respect of such damages; provided, however, in the event a defendant, though in default, has placed damages in issue by filing a pleading raising such issue, either party shall be entitled, upon demand, to a jury trial of the issue as to damages. An action based upon open account shall not be considered one for unliquidated damages within the meaning of this Code section. 3 the flow of water onto the common areas of the Village, which resulted in erosion and

sedimentation problems in those areas. The trial court further concluded that based

on those admissions, Rainbow was liable for committing a trespass and creating a

continuing nuisance that infringed upon the Association’s property rights, entitling

the Association to damages, attorney fees, and injunctive relief. The trial court

reserved ruling on the “amount of damages and the nature of the remedy to abate the

nuisance and trespass,” which would be determined in a future hearing.

On March 21, 2024, the Association moved for summary judgment, contending

that as a result of the entry of default judgment on liability, Rainbow had admitted

each and every material allegation of the complaint, and based on the affidavits and

exhibits it was submitting with its motion, there were no genuine issues of material

fact as to the amount of damages owed to the Association and its entitlement to

injunctive relief. Among other damages, the Association sought to recover $98,650

in estimated costs to remediate and prevent the excessive stormwater runoff that

continued to flow from Rainbow’s property onto the Village’s common areas.2

2 See generally Ga. Northeastern R. Co. v. Lusk, 277 Ga. 245, 247 (2) (587 SE2d 643) (2003) (noting that under Georgia law, the cost to repair or restore land may be an appropriate measure of damages in a nuisance action); Sumitomo Corp. of America v. Deal, 256 Ga. App. 703, 708 (4) (569 SE2d 608) (2002) (“[T]he cost of repair often 4 Although Rainbow was aware in July 2023 that a default judgment had been

entered against it, it did not move to open the default at that time. Approximately nine

months later, on April 22, 2024, Rainbow filed its motion to open the default

judgment pursuant to OCGA § 9-11-55 (b),3 contending that its failure to answer was

the result of excusable neglect and that a proper case had been made for opening

default because it relied on its tenant to undertake a defense of the lawsuit on its behalf

based on an indemnification provision in their lease agreement. That same day,

Rainbow also filed a brief in opposition to the Association’s motion for summary

judgment, contending, among other things, that the Association’s engineering expert

failed to lay a proper foundation for admission of the written estimate of remediation

has been held to be an appropriate measure of damages in cases involving a continuing nuisance or trespass.”) (citations and punctuation omitted). 3 OCGA § 9-11-55 (b) provides: At any time before final judgment, the court, in its discretion, upon payment of costs, may allow the default to be opened for providential cause preventing the filing of required pleadings or for excusable neglect or where the judge, from all the facts, shall determine that a proper case has been made for the default to be opened, on terms to be fixed by the court. In order to allow the default to be thus opened, the showing shall be made under oath, shall set up a meritorious defense, shall offer to plead instanter, and shall announce ready to proceed with the trial.

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