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294 Ga. 12
Ga.
2013
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Background

  • 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)
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Case Details

Case Name: Benchmark Builders, Inc. v. Schultz
Court Name: Supreme Court of Georgia
Date Published: Nov 4, 2013
Citations: 294 Ga. 12; 751 S.E.2d 45; 2013 Fulton County D. Rep. 3326; 2013 Ga. LEXIS 886; 2013 WL 5878120; S12G1256
Docket Number: S12G1256
Court Abbreviation: Ga.
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