CRANE COMPOSITES, INC. v. WAYNE FARMS, LLC Et Al.
296 Ga. 271
Ga.2014Background
- Wayne Farms operated a chicken-processing plant where a fire occurred on May 19, 2003; Wayne Farms later sued Crane Composites alleging Crane’s negligence caused the fire to spread.
- OCGA § 9-11-68 (effective April 27, 2006) is a fee-shifting/offer-of-settlement statute allowing a defendant to recover attorney fees if a plaintiff rejects a settlement and the plaintiff’s final judgment is zero or less than 75% of the offer.
- Crane made a $500,000 formal offer on March 4, 2009; Wayne Farms did not accept and the offer was deemed rejected.
- A jury returned a verdict for Crane (no liability) on May 30, 2012; Crane then sought attorney fees under OCGA § 9-11-68, which the trial court denied relying on L. P. Gas.
- The central dispute on appeal: whether § 9-11-68 can be applied in a negligence case where the injury occurred before the statute’s effective date but the lawsuit was filed after that date.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether OCGA § 9-11-68 applies when the injury pre-dates the statute but the suit was filed after its effective date | Applying § 9-11-68 is retroactive and impermissible because it creates a new substantive obligation (fees) tied to an earlier injury; parties’ substantive rights were fixed at time of injury | § 9-11-68 creates substantive rights only as to litigation conduct (attorney fees) and thus operates prospectively when the lawsuit is filed after the statute’s effective date | The statute applies prospectively to suits filed after its effective date even if the injury occurred earlier; judgment reversed and L. P. Gas is overruled |
Key Cases Cited
- Fowler Props. v. Dowland, 282 Ga. 76 (2007) (held § 9-11-68 substantive as to fee liability and could not be applied to suits pending before statute’s enactment)
- L. P. Gas Indus. Equip. Co. v. Burch, 306 Ga. App. 156 (2010) (Court of Appeals decision holding § 9-11-68 inapplicable where injury pre-dated statute; overruled here)
- Georgia Dep’t of Corr. v. Couch, 295 Ga. 469 (2014) (noting fee awards under offer-of-settlement statute depend on parties’ conduct during litigation)
- Enger v. Erwin, 245 Ga. 753 (1980) (distinction between substantive and procedural laws for retroactivity)
- Polito v. Holland, 258 Ga. 54 (1987) (same substantive/procedural retroactivity principle)