BENCHMARK BUILDERS, INC. v. Schultz
315 Ga. App. 64
Ga. Ct. App.2012Background
- GA Supreme Court reversed the GA Court of Appeals on waiver issue and void/illegal award when only attorney fees were awarded without damages under OCGA § 13-6-11.
- Remand to determine if contract permitted attorney fees as a separate claim rather than under OCGA § 13-6-11.
- Benchmark sued Schultz for breach; Schultz counterclaimed for breach seeking earnest money and attorney fees; jury found for Schultz on counterclaim but awarded no actual damages.
- Jury awarded Schultz $16,552 in attorney fees under the contract-based, separate-fee claim.
- Contract provision stated the prevailing party in enforcing or interpreting the agreement was entitled to recover reasonable attorney’s fees, separable from other relief.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the contract permits a separate attorney fees claim | Benchmark argues prevailing party must recover only on actual damages | Schultz asserts contract allows fees as a separate claim for prevailing party | Contract permits separate attorney fees claim for prevailing party |
| Whether Schultz was the prevailing party despite no monetary damages | Benchmark contends no money damages means no prevailing party under contract | Schultz prevailed on contract claims and earned fees under the contract | Schultz prevailed under the contract and could recover fees |
Key Cases Cited
- Magnetic Resonance Plus, Inc. v. Imaging Systems Intl., 273 Ga. 525 (2001) (distinguishes contract-fed fee awards from statutory fee awards)
- Hutchinson v. Composite State Bd. of Med. Examiners, 263 Ga. 186 (1993) (limits of prevailing party concept in some contexts)
- Benchmark Builders, Inc. v. Schultz, 289 Ga. 329 (2011) (contractual fees when no controlling statute; fee as separate claim)
- Benchmark Builders, Inc. v. Schultz, 302 Ga.App. 888 (2010) (earlier appellate ruling on waiver of objections to verdict form)