Bostick v. Cmm Properties, Inc.
297 Ga. 55
Ga.2015Background
- In January 1992, Diversified leased a grocery-store premises to Bostick; Diversified later assigned its rights to Ingram in August 1992.
- In October 2000, Bostick, with Ingram's approval, subleased the property to CMM under the master lease terms.
- In June 2005, Ingram sued CMM and three individual guarantors for default and liquidated damages under the master lease; Bostick was not a party to that suit.
- The trial court granted summary judgment for the CMM parties, finding the liquidated damages a penalty; Ingram did not appeal that judgment.
- In January 2010, Ingram filed a rent/breach suit against Bostick seeking the same liquidated damages.
- In November 2010, Bostick filed a third‑party complaint against the CMM parties; a consent judgment later provided that Ingram would receive a judgment against Bostick, but would not collect it directly; any recovery from the CMM parties would be shared two‑thirds to Ingram and one‑third to Bostick.
- The trial court later granted summary judgment for the CMM parties on res judicata grounds; the Court of Appeals affirmed the res judicata result, deeming Bostick a privy of the CMM parties; the Georgia Supreme Court reversed, holding the analysis premised on a mistaken understanding of res judicata and remanded for reconsideration.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Bostick can be precluded by res judicata as a privy of CMM parties | Bostick was not a party to the first suit; no adversarial relationship. | CMM parties argue Bostick and CMM were privies with a sufficient identity of parties. | No; res judicata cannot bar Bostick due to lack of adversarial relation. |
| Whether there was proper identity of parties for res judicata | Adversaries in the second action were not the same as in the first action. | Privies and identity of parties support res judicata. | Identity of parties requirement not met; court erred. |
| Whether the consent judgment affects the res judicata analysis | Consent judgment does not retroactively create adversarial relation. | Consent arrangement influences the scope of the action but does not fix res judicata against Bostick. | Remand to reconsider in light of the misapplication of res judicata. |
Key Cases Cited
- Body of Christ Overcoming Church of God v. Brinson, 287 Ga. 485 (2010) (defines scope of res judicata in Georgia: identity of cause, parties, and adjudication on the merits)
- Karan v. Auto–Owners Ins., 280 Ga. 545 (2006) (requires identity of the cause of action and parties or privies)
- Church of God v. Brinson, 287 Ga. 485 (2010) (reiterates three elements for res judicata application)
