GUGGENHEIM DEVELOPMENT SERVICES LLC v. JMC FLATROCK PARTNERS LLC
4:24-cv-00025
M.D. Ga.Apr 16, 2025Background
- Guggenheim Development Services LLC (Guggenheim), a real estate developer, entered a purchase agreement for property in Columbus, GA, from JMC Flatrock Partners LLC (JMC), who made representations about easements and utilities.
- After performing due diligence, Guggenheim assigned the purchase rights to JL Columbus 1549 LLC (JL Columbus), and the property sale closed in May 2023.
- Plaintiffs later discovered Georgia Power Company had installed an underground power line outside its recorded easement, and Public Service Communications, Inc. (PSC) had a fiber optic line also outside its recorded easement.
- Plaintiffs halted construction on their planned Jiffy Lube facility, incurring delay and costs, and later had to create a new easement for the relocated power line.
- Plaintiffs sued JMC, PSC, and later added Georgia Power, asserting claims for trespass, exceeding recorded easements, negligence, and seeking attorney’s fees. Defendants moved for judgment on the pleadings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing for Trespass / Injury | Guggenheim had possession during discovery of utility lines. | Guggenheim never alleged ownership or possession; not entitled to sue for trespass. | Amended Complaint lacks facts showing Guggenheim’s possession; claims dismissed. |
| "Exceeding Recorded Easement" Tort | Plaintiffs can assert claim without citation to statute/case law. | Claim is duplicative of trespass; no independent cause of action. | Claim is duplicative of trespass; dismissed as to PSC. |
| Attorney’s Fees (Bad Faith) | Plaintiffs specially pleaded for fees due to PSC/JMC’s conduct and threats. | No facts showing bad faith, improper motive, or stubborn litigiousness. | Facts insufficient for fees under O.C.G.A. § 13-6-11; claim dismissed. |
Key Cases Cited
- Douglas Asphalt Co. v. Qore, Inc., 541 F.3d 1269 (11th Cir. 2008) (standard for judgment on the pleadings)
- Galt Auto. Props., LLC v. Advesco, LLC, 850 S.E.2d 759 (Ga. Ct. App. 2020) (ownership or possession required for trespass/injury to realty claim)
- Marshall v. Ga. Power Co., 214 S.E.2d 728 (Ga. Ct. App. 1975) (exceeding an easement is a trespass under Georgia law)
- Herren v. Pettengill, 538 S.E.2d 735 (Ga. 2000) (easements with a fixed location cannot be relocated unilaterally)
- Parris Props., LLC v. Nichols, 700 S.E.2d 848 (Ga. Ct. App. 2010) (same, regarding easement relocation)