White v. Shamrock Building Systems, Inc.

669 S.E.2d 168, 294 Ga. App. 340, 28 I.E.R. Cas. (BNA) 875, 2008 Fulton County D. Rep. 3236, 2008 Ga. App. LEXIS 1095
CourtCourt of Appeals of Georgia
DecidedOctober 9, 2008
DocketA08A1157, A08A1158
StatusPublished
Cited by29 cases

This text of 669 S.E.2d 168 (White v. Shamrock Building Systems, 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
White v. Shamrock Building Systems, Inc., 669 S.E.2d 168, 294 Ga. App. 340, 28 I.E.R. Cas. (BNA) 875, 2008 Fulton County D. Rep. 3236, 2008 Ga. App. LEXIS 1095 (Ga. Ct. App. 2008).

Opinion

MlKELL, Judge.

In this lawsuit, Shamrock Building Systems, Inc. (“Shamrock”) alleges that its former employee, Mitchell Cooke, started a competing business, Cooke Enterprises, Inc. (collectively, the “Cooke Defendants”), while still employed by Shamrock, executed a profitable construction contract with White Property Acquisition/Management, LLC (“WPA”) and conspired with WPA and its owner, Dewey C. White (collectively, the “White Defendants”), to breach Cooke’s fiduciary duties to Shamrock. The White Defendants and the Cooke Defendants (collectively, the Defendants) each filed motions for summary judgment. The trial court denied the motions 1 and issued the Defendants certificates of immediate review. We granted the *341 White Defendants’ application for interlocutory appeal, and in Case No. A08A1157, we reverse, finding no genuine issue of fact on Shamrock’s claims against them. The Cooke Defendants have cross-appealed the denial of their motion for summary judgment, 2 and in Case No. A08A1158, we affirm that judgment. 3

The same standard of review applies to both cases.

On appeal from the grant of summary judgment the appellate court conducts a de novo review of the evidence to determine whether there is a genuine issue of material fact and whether the undisputed facts, viewed in the light most favorable to the nonmoving party, warrant judgment as a matter of law. 4

Viewed in the light most favorable to Shamrock, the nonmovant, the record contains evidence of the following facts. Shamrock is a small commercial construction firm, primarily engaged in the business of constructing mini-storage facilities. Shamrock hired Cooke in 1998 as an at-will employee to estimate the cost of Shamrock’s prospective construction projects. In 2001, Cooke was responsible for soliciting business for Shamrock. In the first part of that year, Seamus Burke, who is responsible for Shamrock’s daily operations, became dissatisfied with Cooke’s performance. The men had a meeting on June 21, 2001, the outcome of which is disputed. According to Burke, Cooke offered to resign, but it was decided that Cooke would remain with Shamrock. Burke deposed that he and Cooke discussed a consulting arrangement, but Cooke’s employment status never changed. Cooke, on the other hand, deposed that Burke agreed that Cooke would not remain as an employee but would be associated with Shamrock only as a consultant, to be paid on a per-project basis. Cooke thus believed he was free to seek potential projects for himself and to work for other contractors. To that end, Cooke started his own competing construction business and began soliciting bids.

In 2001, the White Defendants decided to construct a mini-storage facility on a portion of certain undeveloped property owned by WPA in Forsyth County (the “Paddocks Project”). In August *342 2001, Cooke submitted one of three bids to the White Defendants to construct the Paddocks Project. On August 29, 2001, the White Defendants entered into a preliminary letter of intent with Cooke’s entity, which at the time was identified as “the Cooke Company,” authorizing Cooke to proceed with civil and architectural design on the Paddocks Project. Ultimately, the White Defendants selected Cooke Enterprises to serve as WPA’s general contractor on the Paddocks Project by executing a construction contract dated March 21, 2002. The contract price was $3,343,978, which included $750,000 for the value of the land. Cooke Enterprises agreed to reimburse WPA for the land costs.

At the time Cooke submitted his bid for the Paddocks Project, he represented to the White Defendants that he was free to undertake projects on his own behalf. Cooke averred that the White Defendants never took any affirmative steps to encourage him to form Cooke Enterprises or to alter his relationship with Shamrock. White stated that when Cooke submitted the bid, he did not disclose that he was associated with Shamrock. Shamrock did not submit a bid on the project and has never done business with the White Defendants.

Daniel B. Curtis, a consultant to Shamrock who recommended Shamrock as a general contractor on various self-storage projects, submitted an affidavit in response to the Defendants’ motions for summary judgment. In that affidavit, Curtis stated that he met with White and performed an economic feasibility study for White on the Paddocks Project; that several months later, White asked Curtis for a recommendation for a general contractor, and he recommended Shamrock; that Curtis told White that Cooke was the “contact person” for Shamrock; that Curtis arranged and attended a meeting between Cooke and White, but Curtis did not recall that Shamrock’s name was mentioned at that meeting; and that Curtis subsequently learned that Cooke had used the meeting to negotiate the contract for his own rival business.

Shamrock first became aware of the Paddocks Project on or about March 20, 2002, when it discovered documents concerning the project in Cooke’s vehicle. Burke immediately fired Cooke. Shamrock, however, never advised White that Shamrock believed that it should have been given an opportunity to bid on the project. Shamrock waited almost a year and a half after filing suit against the Cooke Defendants to bring claims against the White Defendants.

In its second amended complaint, Shamrock asserted the following claims: breach of fiduciary obligations; breach of duties of loyalty, good faith and fair dealing; and breach of duty not to compete with an employer against Cooke (Count 1), and against Cooke Enterprises and the White Defendants (Count 2); and tortious interference with business relations against the White Defendants (Count 3).

*343 Case No. A08A1157

1. The White Defendants contend that the trial court erred in denying their motion for summary judgment on Count 2 of the complaint. Despite its nomenclature, Count 2 actually asserts that the White Defendants conspired with the Cooke Defendants to aid and abet the breach of Cooke’s obligations to Shamrock, and to aid and abet Cooke by improperly competing with Shamrock by diverting the Paddocks Project business opportunity. Shamrock points to Curtis’s affidavit as evidence that the White Defendants either knew, or should have known, that Cooke was associated with Shamrock at the time he submitted his bid for the Paddocks Project and that the White Defendants had a duty to investigate Cooke’s relationship with Shamrock prior to doing business with him. The White Defendants contend that it is immaterial whether Cooke was still a full-time employee of Shamrock in August 2001, or, as he contends, a consultant, because Cooke independently decided to pursue his own competing business without the White Defendants taking any affirmative steps to encourage the competing business. We agree with the White Defendants.

“[W]e are mindful that there is no magic in mere nomenclature in the designation of causes of action.” 5

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Bluebook (online)
669 S.E.2d 168, 294 Ga. App. 340, 28 I.E.R. Cas. (BNA) 875, 2008 Fulton County D. Rep. 3236, 2008 Ga. App. LEXIS 1095, Counsel Stack Legal Research, https://law.counselstack.com/opinion/white-v-shamrock-building-systems-inc-gactapp-2008.