Artson, LLC v. Hudson
322 Ga. App. 859
| Ga. Ct. App. | 2013Background
- Artson LLC, Virginia-based, has four equal shareholders: Lawyer, Doris Artis, Denise Hudson, and David Hudson.
- David and Denise divorced in 2008; in 2009, a resolution removed David as Artson’s managing member and revoked his authority.
- Artson sued David in Cobb County for conversion, accounting, and attorney fees; David counterclaimed and sought relief against Denise.
- David filed a third-party complaint against Denise and sought to add her as a third-party defendant; a consent order added Denise as a third-party defendant.
- David later moved to add Doris as a party and to pierce Artson’s veil; the trial court held hearings on these motions and on Artson’s summary judgment/dismissal requests.
- The trial court dismissed the case under OCGA § 9-11-19, finding Doris and Lawyer indispensable and lacking Georgia personal jurisdiction; Artson appeals.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Doris and Lawyer are indispensable parties under OCGA 9-11-19 | Artson argues they are not indispensable | David contends joinder is required for complete relief | No reversible error; court properly dismissed for lack of jurisdiction and inability to provide complete relief |
| Whether dismissal for failure to join indispensable parties was proper given no motion by David to dismiss on that ground | Artson claims waiver/notice issue; argues lack of motion should impact | David asserted indispensable-party issue through pleadings and related motions | Dismissal proper; issue could be raised in pleadings or motions; not waived |
| Whether attorney fees under OCGA 9-11-37(a)(4)(B) were payable | Artson seeks fees for motion to compel discovery | David’s motion was substantially justified; no fee award warranted | No abuse of discretion; fees denied |
Key Cases Cited
- Dixon v. Cole, 277 Ga. 353 (2003) (five-factor test for indispensable parties; lack of personal jurisdiction supports dismissal)
- Gardner v. Gardner, 276 Ga. 189 (2003) (complete relief and joinder considerations; discretion to require joinder)
- Wright v. Safari Club Intl., 307 Ga. App. 136 (2010) (joinder and indispensable parties; procedural posture)
- Adams v. Wright, 162 Ga. App. 550 (1982) (waiver of indispensable-party defect if not raised timely)
- Innovative Clinical & Consulting Svcs. v. First Nat. Bank of Ames, Iowa, 279 Ga. 672 (2005) (limits of long-arm jurisdiction; disclosure of requirements for personal jurisdiction)
- Oglesby v. Deal, 311 Ga. App. 622 (2011) (long-arm jurisdiction and personal jurisdiction considerations)