BADICHI v. ALBION TRADING, INC. Et Al.
341 Ga. App. 375
| Ga. Ct. App. | 2017Background
- Plaintiffs (Albion and related LLCs) sued Badichi (an Israeli citizen) alleging he holds a 50% beneficial/equitable (but not legal) interest in multiple apartment LLCs and sought declaratory relief, accounting and fees.
- Badichi filed a special-appearance answer and a motion to dismiss for insufficient service and lack of jurisdiction; discovery was served while his motion was pending.
- Badichi timely objected to discovery requests (including requests for admissions) arguing lack of service and that discovery was stayed; after the court denied his motion to dismiss, he served supplemental substantive responses denying the admissions.
- Plaintiffs moved for partial summary judgment contending Badichi failed to respond to requests for admissions, so the matters were conclusively admitted; the trial court granted the motion in a brief order citing plaintiffs’ brief.
- The Court of Appeals vacated and remanded, holding the record does not show the trial court either ruled objections insufficient or held the required sufficiency hearing before deeming answers admitted; factual disputes (estoppel, unclean hands, fraud in conveyance) remain precluding summary judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Badichi’s initial objections / later supplemental responses were deemed admissions under OCGA § 9-11-36 | Plaintiffs: Badichi failed to timely respond (objections = no response), so requests are conclusively admitted | Badichi: timely objected and later served substantive supplemental answers; no court order found them insufficient | Court: Vacated grant; where a party timely objects and supplements, the requesting party must move to determine sufficiency and the court must order or hold a hearing before deeming admissions; no such order/hearing appears here |
| Whether summary judgment was proper absent admissions | Plaintiffs: affidavits and admissions establish no genuine issue of material fact; plaintiffs entitled to declaratory judgment on ownership interests | Badichi: factual issues remain (estoppel, unclean hands, fraudulent conveyance) that preclude judgment as a matter of law | Court: Summary judgment improper at this stage because material factual disputes remain and the grant relied on improperly deemed admissions |
Key Cases Cited
- Tavakolian v. Agio Corp., 304 Ga. App. 660 (discussing when admissions may be deemed and requirement to move to determine sufficiency)
- G. H. Bass & Co. v. Fulton County Bd. of Tax Assessors, 268 Ga. 327 (failure to respond at all can result in admissions)
- Contract Mgmt. Consultants, Inc. v. Huddle House, Inc., 134 Ga. App. 566 (court must order responding party to answer when objection is overruled)
- Monolith Cos., LLC v. Hunter Douglas Hospitality, Inc., 333 Ga. App. 898 (failure to object or respond results in conclusive admission)
- Neal v. State Farm Fire & Casualty Co., 300 Ga. App. 68 (late responses can cause admissions)
- McClarty v. Trigild, Inc., 333 Ga. App. 112 (remand appropriate where admissions were improperly deemed)