Waldrip v. Voyles

411 S.E.2d 765, 201 Ga. App. 592, 1991 Ga. App. LEXIS 1519
CourtCourt of Appeals of Georgia
DecidedOctober 23, 1991
DocketA91A0774
StatusPublished
Cited by14 cases

This text of 411 S.E.2d 765 (Waldrip v. Voyles) 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
Waldrip v. Voyles, 411 S.E.2d 765, 201 Ga. App. 592, 1991 Ga. App. LEXIS 1519 (Ga. Ct. App. 1991).

Opinions

Sognier, Chief Judge.

Clemmer Hugh Voyles filed suit against Lamar Waldrip d/b/a Best Homes alleging various claims arising from real estate and retail installment contracts executed by the parties. Voyles received partial summary judgment as to liability on one of his claims, and the case was then tried before a jury, which awarded damages of $75,000. The trial court entered judgment on the verdict, and Waldrip filed this appeal.

On April 5, 1974, appellee, as buyer, and appellant, as seller, entered into a contract for the sale of real property (the “land contract”) and a concomitant retail installment contract for purchase of a mobile home located on the property. Both contracts provided for monthly payments by appellee to appellant, and the parties also agreed that appellee would make monthly payments of $6 to appellant for water and sewer service. Since the beginning of their contractual relationship, the parties have been mired in myriad disputes concerning appellant’s claims that appellee was in default on his payments under the contracts, appellant’s attempts to increase the amount to be paid by appellee for water and sewer service, and appellee’s complaints concerning the quality of the water service provided by appellant to the property. Appellee testified at trial that appellant raised the monthly rate for water and sewer service to $10 and later to $18, although the contract provision specifying a payment of only $6 was not amended by the parties. Appellee acknowledged that he [593]*593paid the higher rates for a while, but testified he reduced his payments to $6 when he began to experience problems with the water and sewer service.

When appellee sent checks to appellant for payment of his various obligations, appellee designated on the face of the check the obligation to which the payment was to be applied, which he was entitled to do pursuant to OCGA § 13-4-42. Once the disagreement over the amount to be charged for water and sewer service arose, however, beginning sometime in 1986 appellant disregarded the designations made by appellee and applied some of the payments to the alleged arrearage in appellee’s water and sewer account. As a result, appellant claimed the land contract was in default and informed appellee he intended to exercise his right under the contract to repossess the land. In response, appellee filed this action seeking specific performance of the real estate contract and damages for breach of the contract. He subsequently amended his complaint to allege that appellant’s failure to honor the appropriation of payments appellee made pursuant to OCGA § 13-4-42 constituted an intentional tort, entitling appellee to compensatory and punitive damages. The trial court granted appellee’s demand for specific performance, and the Supreme Court affirmed without opinion. Waldrip v. Voyles, 259 Ga. XXXIII (1989). The trial court then ruled that appellant’s violation of OCGA § 13-4-42 did constitute a tort and that appellee was entitled to summary judgment on the issue of liability for this claim. The issues of breach of contract, attorney fees, and damages for the tort claim were tried to a jury, which awarded $2,000 for breach of contract, $17,000 in attorney fees under OCGA § 13-6-11, and on the tort claim awarded $16,000 in compensatory damages for mental distress and $40,000 in punitive damages.

1. In two enumerations of error, appellant challenges the trial court’s holding that a violation of OCGA § 13-4-42 constitutes a tort. He maintains that the statute merely creates an implied contractual condition, the breach of which has been held to entitle the debtor to extinguishment of the debt, see, e.g., Mayor &c. of Millen v. Clark, 193 Ga. 132 (3) (17 SE2d 742) (1941), and accordingly, he asserts the trial court erred by granting appellee’s motion for partial summary judgment and denying appellant’s motion for directed verdict. Conversely, appellee maintains that OCGA § 13-4-42 imposes a duty on appellant independent of the contract and thus provides a basis for a tort claim.

“It is axiomatic that a single act or course of conduct may constitute not only a breach of contract but an independent tort as well, if in addition to violating a contract obligation it also violates a duty owed to plaintiff independent of [the] contract to avoid harming him. [Cits.]” Orkin Exterminating Co. v. Stevens, 130 Ga. App. 363, 365 [594]*594(203 SE2d 587) (1973). Such duties “ ‘may arise from statute, or flow from relations created by contract, express or implied. The violation of any such specific duty, accompanied with damage, gives a right of action.’ ” Mauldin v. Shaffer, 113 Ga. App. 874, 878 (150 SE2d 150) (1966). “[I]n order to maintain an action ex delicto because of a breach of duty growing out of a contractual relation the breach must be shown to have been a breach of a duty imposed by law and not merely the breach of a duty imposed by the contract itself. [Cits.]” Id. at 879-880.

OCGA § 13-4-42 provides in pertinent part: “When a payment is made by a debtor to a creditor holding several demands against him, the debtor shall have the right to direct the claim to which it shall be appropriated. If the debtor fails to do so, the creditor shall have the right to appropriate the payment at his election.” Our courts have held that if the debtor directs payments pursuant to this statute, the creditor is obligated to apply the payments in accordance with this direction and has no authority to appropriate them in a different manner. Mayor &c. of Millen, supra at 133; Roswell Bank v. Bearse, 118 Ga. App. 610 (164 SE2d 886) (1968). Since this requirement that the creditor honor the debtor’s allocation of payments on multiple obligations arises from OCGA § 13-4-42, not from a contract provision, it follows that this duty of the creditor is a “duty imposed by law and not merely ... a duty imposed by the contract itself.” Mauldin, supra. Accordingly, the breach of that duty gives rise to a cause of action in tort. See id. Accord Sheppard v. Yara Engineering Corp., 248 Ga. 147 (281 SE2d 586) (1981) (lessor under mining lease has tort claim for trespass and conversion against lessee who removed materials not authorized to be removed under the lease); Peters v. Imperial Cabinet Co., 189 Ga. App. 337, 338 (1) (375 SE2d 635) (1988) (where general contractor submitted affidavit of payment averring no outstanding indebtedness although subcontractor had not been paid, subcontractor has cause of action in tort for breach of legal duty to swear truthfully).

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Waldrip v. Voyles
411 S.E.2d 765 (Court of Appeals of Georgia, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
411 S.E.2d 765, 201 Ga. App. 592, 1991 Ga. App. LEXIS 1519, Counsel Stack Legal Research, https://law.counselstack.com/opinion/waldrip-v-voyles-gactapp-1991.