294 Ga. 12
Ga.2013Background
- Schultz contracted with Benchmark Builders, Inc. for construction of a home.
- Schultzes refused to close, alleging the home did not conform to the contract; Benchmark sued for specific performance or monetary damages.
- Schultzes counterclaimed for the return of earnest money, value of light fixtures installed, and attorney fees arising from the alleged breach.
- Trial court/jury awarded Schultzes no damages for light fixtures or earnest money but awarded $16,555 for attorney fees.
- Court of Appeals in Benchmark III held the Schultzes were entitled to attorney fees as the prevailing party despite no monetary damages.
- Georgia Supreme Court granted certiorari to decide whether contractually authorized attorney fees can be awarded to a prevailing party who recovered no money damages.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the contract allows attorney fees to the prevailing party regardless of monetary relief. | Benchmark argues no award unless monetary relief is obtained. | Schultzes contend contract permits fees in addition to other relief, not contingent on damages. | Contract permits separate attorney-fee recovery for the prevailing party. |
| Whether the Schultzes were the prevailing party given zero monetary damages on some claims. | Benchmark would appear not to prevail absent damages. | Prevailing party status arises from success on merits, not just monetary relief. | Schultzes were the prevailing party on the merits and under the contract, entitling them to fees. |
Key Cases Cited
- Magnetic Resonance Plus, Inc. v. Imaging Systems Int’l., 273 Ga. 525 (Ga. 2001) (prevailing party may recover attorney fees even without monetary relief if contract authorizes it)
- Floyd v. Logisticare, Inc., 255 Ga. App. 702 (Ga. App. 2002) (distinguishes cases where prevailing party status is improper when merits are not shown)
- Benchmark Builders, Inc. v. Schultz, 315 Ga. App. 64 (Ga. App. 2012) (addressed whether contract allowed attorney fees when plaintiff recovered no money damages)
