Towery v. Massey

345 S.E.2d 90, 179 Ga. App. 61, 1986 Ga. App. LEXIS 1810
CourtCourt of Appeals of Georgia
DecidedApril 24, 1986
Docket72213
StatusPublished
Cited by2 cases

This text of 345 S.E.2d 90 (Towery v. Massey) 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
Towery v. Massey, 345 S.E.2d 90, 179 Ga. App. 61, 1986 Ga. App. LEXIS 1810 (Ga. Ct. App. 1986).

Opinion

Banke, Chief Judge.

The appellee, Robert Massey, sued the three appellants, M. A. Towery, Multi-Color Press, Inc., and One-Stop Graphics, Inc., to recover damages for fraud and breach of contract. The suit arose from a dispute between the parties involving their respective rights in connection with the termination of a lease pertaining to certain printing equipment. This appeal is from a judgment entered on a verdict in Massey’s favor.

The equipment lease was executed on September 28, 1978, between appellant Multi-Color Press, Inc., as lessee, and C & S National Bank, as lessor. C & S was joined as a defendant below but obtained a favorable verdict and is not a party to this appeal. The lease called for Multi-Color to make 48 monthly rental payments to C & S in the amount of $756.48 each, following which Multi-Color was to have the option of purchasing the equipment for $1. Appellant Towery, acting as Multi-Color’s president, signed the lease on the company’s behalf and also personally guaranteed Multi-Color’s obligation to make the lease payments.

[62]*62In August of 1980, the appellee, Massey, added his personal guarantee to the lease and agreed to take over the monthly payments in return for Towery’s oral promise to allow him to exercise the lessee’s option of purchasing the equipment for $1 at the end of the lease term. Massey testified that Towery further agreed “that I could sell any of the equipment that I wanted to during the period of the lease, provided that the money was applied to the lease payments or the lease amount that the equipment was on the lease with C & S Bank. Any overage that would be sold for — I could keep that.”

Towery’s willingness to transfer to Massey what amounted to Multi-Color’s equity of redemption in the equipment stemmed from the fact that he (Towery) had been experiencing financial difficulties and was two months behind in his payments on the lease. According to Massey, C & S National Bank, as lessor, agreed to waive these two payments until the end of the lease term in order to encourage him to add his personal guarantee to the obligation. Massey’s willingness to assume the obligation apparently stemmed from his belief that he could sublease the equipment for more than the amount of the lease payments. However, this contemplated sublease never materialized, and it does not appear that Massey ever received any income from the equipment. Notwithstanding this, he continued to make the lease payments to C & S throughout the following year, although he was often late in doing so and apparently missed one payment altogether.

In September of 1981, C & S notified both Towery and Massey that because of the payment missed by Massey, as well as the two payments previously missed by Towery, it intended to accelerate the remaining lease payments and, if the accelerated balance were not paid in full by the end of the year, to repossess the equipment. On or about December 14, 1981, Towery tendered to the bank the full remaining balance due of $17,616.80 and received in return a bill of sale for the equipment. There was testimony at trial that the equipment was worth approximately $35,000 at this time.

Massey testified that in November of 1981, shortly before Towery’s redemption of the property took place, Towery’s nephew, Charles Murray, approached him (Massey) about the possibility of purchasing his “interest” in the equipment, with a view towards using the equipment to form a new printing business with Towery. Massey testified that he agreed to this request and further agreed to give Murray until January to come up with the money. Murray and Towery did in fact subsequently go into the printing business together, under the name One-Stop Graphics, Inc., using the equipment which had been the subject of the lease agreement.

Massey maintained that the reason he did not involve himself in Towery’s redemption of the equipment from the bank was because of his understanding, as confirmed in subsequent conversations with [63]*63Towery, that Murray intended to pay for his (Massey’s) interest in the property. After Towery obtained title to the equipment, however, both he and Murray took the position that they had no obligation to Massey whatever. Massey’s fraud and breach of contract claims are based on the resulting defeat of his alleged rights with respect to the property.

Originally, the jury awarded Massey $12,103.68 as actual damages for breach of contract (this being the total amount of the lease payments Massey had made to C & S), plus $1 as punitive damages for fraud and $5,000 as attorney fees based on fraud. After examining the written verdict, the trial court asked the foreman if the jury had intended to award any actual damages for fraud, and the foreman responded that they had not. The following discussion then transpired:

“THE COURT: In view of the statements made by the foreman, let me ask first of all, do all the jurors agree with the statement made by the foreman in regard to the jury finding in favor of the defendants in regard to the fraud claim, that is, no amount of money will be awarded for actual damages for fraud? Is there any member of the jury who does not agree that is the jury’s verdict? If so, raise your 'hand at this time.

“At this time the Court will, based upon the statement made by the jury, reform the verdict to reflect the intentions of the jury and that is the Court would delete the one dollar punitive damages and the $5,000 attorney’s fees as being inappropriate, inasmuch as there is no finding as to actual damages for fraud in the case — as amended, not amended, but reformed by the Court, the Court accepts the verdict at this time.

“Counsel wish to come around and inspect this verdict?

“THE FOREMAN: Your Honor, may I address the Court?

“THE COURT: Yes, sir.

“THE FOREMAN: We are concerned citizens that want to participate as meaningfully and as intelligently as we can in the judicial process.

“We have sat through three days of lengthy and involved and complex testimony. We have listened to your charge this morning that ran for some 40 minutes, which you read in our presence. We have tried to make a decision as just as we knew how on the basis of that testimony and what we would, could remember of that complicated charge which you read.

“We did not understand that the failure to assess actual damages would prejudice our decision to render attorney’s fees for the plaintiff. Had we known that, we would have done otherwise, I assuré you. It is not our intention as a jury that these attorney’s fees be [deleted] from the basis of the award to the plaintiff.

“We came here because we wanted to do the right thing and we [64]*64feel like that, well, quite frankly, I feel like that we have been — I am a little upset. Do you understand how we feel?

“THE COURT: Yes, sir. The Court did charge you as to when you could make an award of attorney’s fees and when you could not. If the jury’s finding is that there was not a finding of fraud in the case, then I am assuming that that verdict was based upon the evidence that you heard and that you found that there was not fraud in the case.

“THE FOREMAN: We did find fraud. We did.

“THE COURT: Well, I just asked if there were any actual damages as to fraud and you said no.

“THE FOREMAN: We did not understand that in order to find for fraud that we would have to assess actual damages.

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Bluebook (online)
345 S.E.2d 90, 179 Ga. App. 61, 1986 Ga. App. LEXIS 1810, Counsel Stack Legal Research, https://law.counselstack.com/opinion/towery-v-massey-gactapp-1986.