Sung General Contracting, Inc. v. Saks Management and Associates, LLC

CourtCourt of Appeals of Georgia
DecidedSeptember 10, 2020
DocketA20A1086
StatusPublished

This text of Sung General Contracting, Inc. v. Saks Management and Associates, LLC (Sung General Contracting, Inc. v. Saks Management and Associates, 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
Sung General Contracting, Inc. v. Saks Management and Associates, LLC, (Ga. Ct. App. 2020).

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.

August 21, 2020

In the Court of Appeals of Georgia

A20A1085, A20A1086. SAKS MANAGEMENT AND ASSOCIATES, LLC. v. SUNG GENERAL CONTRACTING, INC. et al.; and vice versa.

MCFADDEN, Chief Judge.

These cases involve a dispute between the owner of an apartment complex and

various individuals and companies involved in the work of renovating the complex.

After the owner, Saks Management and Associates, LLC, terminated its contract with

the general contractor, Sung General Contracting, Inc., this litigation followed.

In Case No. A20A1085, Saks appeals the denial of its motion for summary

judgment on Sung General Contracting’s counterclaims, arguing that they are barred

because Sung General Contracting was not licensed when Sung General Contracting

entered the contract with Saks. In Case No. A20A1086, Sung General Contracting cross-appeals the denial of its motion for summary judgment on all of Saks’ claims

other than breach of contract.

We agree with Saks that Sung General Contracting’s counterclaims are barred

because Sung General Contracting did not have a state general contractor license

when it entered the contract with Saks. So we reverse in Case No. A20A1085. We

hold that Sung General Contracting was entitled to summary judgment on Saks’

claims for fraud, conversion, and piercing the corporate veil, but not on Saks’ other

claims. So we affirm in part and reverse in part in Case No. A20A1086.

1. Procedural and factual background.

“Summary judgment is proper ‘if the pleadings, depositions, answers to

interrogatories, and admissions on file, together with the affidavits, if any, show that

there is no genuine issue as to any material fact and that the moving party is entitled

to a judgment as a matter of law.’ OCGA § 9-11-56 (c).” Cowart v. Widener, 287 Ga.

622, 623 (1) (a) (697 SE2d 779) (2010). “On appeal from the denial or grant of

summary judgment, the appellate court must conduct a de novo review of the

evidence to determine whether there exists a genuine issue of material fact, and

whether the undisputed facts, viewed in the light most favorable to the nonmoving

2 party, warrant judgment as a matter of law.” Newstrom v. Auto-Owners Ins. Co., 343

Ga. App. 576, 577 (1) (807 SE2d 501) (2017) (citation omitted).

So viewed, the record shows that in July 2016, Sung General Contracting and

Saks entered a contract for work on Saks’ apartment complex on Sylvan Road in

Atlanta. Chol Chung is the sole owner of Sung General Contracting. He has always

referred to himself as Sung Chung and uses that name in his business. Chol Chung

and Sung General Contracting have never been licensed contractors.

In August 2016, the city of Atlanta issued a stop work order on the project

because required permits had not been issued. Sung General Contracting hired

professional engineer and licensed general contractor Sung Chung to help obtain the

permits. Although Chol Chung is known as Sung Chung and owns Sung General

Contracting, he and professional engineer Sung Chung are different people. Sung

Chung asked Chol Chung to get a letter from Saks to facilitate obtaining the permits,

so Chol Chung requested a letter of acknowledgment from the owner of Saks and the

general manager of the complex. Chol Chung told them what needed to be in the

letter. The September 21, 2016 letter stated:

To Whom It May Concern:

3 In June 2016, Yorkminster Square Apartments PKA The New Park At Sylvan located at 2001 Sylvan Road SW, Atlanta, GA 30310, was purchased by Saks Management and Associates, LLC represented by Louis Beria. The property is currently undergoing renovations and upgrades contracted by Sung General Contracting Inc. Saks Management and Associates, LLC. acknowledges Sung Chung as lead contractor for purposes of permit acquisition and communication with the City of Atlanta.

Although Chol Chung goes by the name Sung Chung, he never informed the owner

that he is not the Sung Chung referenced in the letter. Saks emailed the letter to Chol

Chung, who forwarded it to professional engineer Sung Chung, who sent the letter

to the city and got the permits.

The July 2016 contract anticipated that the work would be substantially

complete by March 31, 2017. Saks timely made the first three of five contemplated

payments. The fourth payment was due March 25, 2017. On February 1, 2017, Sung

General Contracting demanded full payment by February 3, and threatened to stop

work because it had expected a payment (outside the scheduled payments) but that

payment was not made and Saks had brought in outside contractors. Saks paid

$200,000 and the parties accelerated the date for completion of the first phase of the

project to February 28, 2017. Sung General Contracting did not finish the work by

4 February 28, 2017, but it continued working until March 24, 2017, when Saks

terminated the contract.

Saks filed this complaint against multiple defendants, including Sung General

Contracting, Chol Chung, and professional engineer Sung Chung, alleging multiple

claims, including breach of contract, negligence, conversion, unjust enrichment, and

fraud. The defendants answered and Sung General Contracting filed counterclaims

for, among other things, breach of contract, quantum meruit, and unjust enrichment.

Saks moved for summary judgement on Sung General Contracting’s counterclaims.

The defendants moved for summary judgment on most of Saks’ claims. The trial court

denied the parties’ motions for summary judgment, and these appeals followed. (The

notice of cross-appeal specified that the “defendants” appealed. But only defendant

Sung General Contracting filed a brief in either A20A1085 or A20A1086, so the

other defendants’ appeal is deemed abandoned, leaving Sung General Contracting as

the sole cross-appellant. See City of Brookhaven v. City of Chamblee, 329 Ga. App.

346 n. 2 (765 SE2d 33) (2014).)

2. The denial of Saks’ motion for summary judgment on Sung General

Contracting’s counterclaims.

(a) OCGA § 43-41-17 (b).

5 Saks argues that it is entitled to summary judgment on Sung General

Contracting’s counterclaims because OCGA § 43-41-17 (b), which concerns

residential and general contractor licensing requirements, bars Sung General

Contracting’s claims. We agree.

“The statutes at issue in this case are included in Chapter 41 of Title 43 of the

Georgia Code, which provides a broad statewide licensing system for residential and

general contractors. . . .” Restor-It v. Beck, 352 Ga. App. 613, 615 (835 SE2d 398)

(2019). OCGA § 43-41-17 (a) provides, in pertinent part, that no person shall have

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