Alan Headrick v. Stonepark of Dunwoody Unit Owners Associations Inc.
331 Ga. App. 772
| Ga. Ct. App. | 2015Background
- Condominium complex (Stonepark) built over a debris/waste pit; organic fill caused subsurface subsidence and foundation settlement in multiple buildings.
- Unit owners (Headrick and others) sued the association (Stonepark) and individual board members alleging misrepresentations about repairs, failure to maintain, improper meetings/records, and other breaches of association duties; this is not a purchaser nondisclosure suit.
- Board Members moved to dismiss; trial court initially denied then later (on reconsideration) treated the motion as one for summary judgment and granted it (June 17, 2013). Headrick did not appeal that order.
- Stonepark moved for summary judgment; trial court granted summary judgment to Stonepark on October 10, 2013; counterclaims remain pending so the order was nonfinal. Headrick timely appealed the October 10 order.
- On appeal, the Court of Appeals dismisses Headrick’s challenge to the June 17 order for lack of jurisdiction (appellant failed to timely appeal that interlocutory grant of summary judgment), affirms most of the trial court’s grants of summary judgment, but reverses as to the trial court’s disposition of a fraud claim concerning current owners because Stonepark did not seek summary judgment on that theory.
Issues
| Issue | Headrick's Argument | Stonepark/Board Members' Argument | Held |
|---|---|---|---|
| Jurisdiction to review February 6 order (interlocutory dismissal rulings) | February 6 rulings affecting later October 10 order are reviewable on appeal of that later order | October 10 appeal authorizes review of earlier interlocutory rulings that affect the case | Court has jurisdiction to review February 6 rulings to the extent they affect the October 10 order |
| Jurisdiction to review June 17 grant of summary judgment in favor of Board Members | Court should review June 17 order as part of this appeal | Headrick failed to timely appeal June 17; election to wait bars review here | Dismissed for lack of jurisdiction — appellant elected not to appeal the June 17 order when it was directly appealable |
| Timeliness of trial court rulings and conversion of motions to summary judgment (OCGA § 9-11-12(j)) | Trial court failed to rule within 90 days and should have converted motions to summary judgment earlier | Statute's 90-day directive is directory absent sanction; court later converted motion on reconsideration | No reversible error; statute directory; conversion occurred on reconsideration so argument fails |
| Grant of summary judgment on fraud claim (current owners) | Trial court erred by resolving fraud claim that current owners alleged (representations that repairs would be permanent) | Stonepark argues order is correct for any reason | Reversed as to fraud claim by current owners: Stonepark did not move on that theory, so "right-for-any-reason" doctrine inapplicable |
| Grant of summary judgment on duties to inspect/maintain common areas (Count III) | Headrick says Stonepark failed to maintain non-major defects (sinkholes, cracks, stairs) producing unsafe conditions | Stonepark relied on engineer recommendations; business judgment rule protects board decisions; plaintiffs point to photos but no supporting evidence tying them to separate maintenance failures | Affirmed: plaintiff did not present sufficient evidence distinguishing minor maintenance claims from the major structural issues; business judgment rule and reliance on engineer justified summary judgment |
| Meeting/records/breach claims (Counts IV & V) | Board violated bylaws, excluded members improperly, failed to keep/make records available, causing damages | Stonepark contends bylaws complied with; exclusion for conflict of interest proper; no damages shown | Affirmed: Headrick abandoned challenges to independent damages rationale; trial court's grounds stand |
Key Cases Cited
- Southeast Ceramics v. Klem, 246 Ga. 294 (recognizing that on direct appeal other related rulings may be reviewed)
- Patterson v. Bristol Timber Co., 286 Ga. App. 423 (appellate review of earlier interlocutory orders when appeal taken from later order)
- Board of Regents v. Canas, 295 Ga. App. 505 (order denying motion to dismiss is not directly appealable as a final judgment)
- Hutchison v. Nat. Svc. Indus., 191 Ga. App. 885 (party who fails to timely appeal a grant of partial summary judgment cannot later obtain review in an appeal from a subsequent nonfinal grant)
- Jones v. White, 311 Ga. App. 822 (discussing limits on appellate review of earlier interlocutory orders when a partial summary judgment was not appealed)
- Charles H. Wesley Ed. Foundation v. State Election Bd., 282 Ga. 707 (statutory deadlines that lack sanctions are directory)
- Cobb County v. Robertson, 314 Ga. App. 455 (directory nature of statutory timing when no sanction specified)
- Georgia-Pacific v. Fields, 293 Ga. 499 ("right-for-any-reason" rule for affirming summary judgment when movant raised the issue below)
- Thunderbolt Harbour Phase II Condo. Assn. v. Ryan, 326 Ga. App. 580 (cannot invoke alternative summary judgment grounds on appeal if defendant did not raise them below)
- Vernon Bowdish Builder v. Spalding Lake Homeowners Assn., 196 Ga. App. 370 (disputes over board judgment and action are generally nonactionable)