Gwinnett County v. Old Peachtree Partners, LLC
329 Ga. App. 540
| Ga. Ct. App. | 2014Background
- Gwinnett County settled with Old Peachtree Partners, LLC to buy two parcels for 1,867 acres? and 16.203 acres for $5,265,975 and $5,265,975? (note: amounts in text) as part of resolving a road project and related litigation.
- Board initially rejected the settlement offer in May 2009 but county attorney was authorized to present a counteroffer to Old Peachtree.
- Old Peachtree verbally accepted the counteroffer on May 12, 2009; settlement documents were prepared for closing.
- Board voted against the purchase on August 4, 2009, after which the county refused to perform the settlement.
- Old Peachtree filed counterclaims and later sought enforcement of the settlement, prejudgment interest, and incidental damages.
- Trial court ultimately enforced the settlement; the county released funds and closed on the parcels, leading to an appellate challenge on prejudgment interest and incidental damages.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| When prejudgment interest accrues on the second parcel | Old Peachtree: interest begins when due and payable under contract. | Gwinnett: interest accrues only after possession or binding payment occurs. | Accrual starts when due; based on contract terms, not possession. |
| Timeliness and viability of prejudgment-interest demand | Old Peachtree made timely written demands prior to final judgment. | Gwinnett: timing issues could bar interest. | Demand before final judgment satisfied; no reversal on this ground. |
| Entitlement to incidental damages alongside specific performance | Old Peachtree may recover incidental damages caused by partial breach while seeking specific performance. | Gwinnett: specific performance precludes damages that would have resulted from non-performance. | Incidental damages may be awarded when necessary to make the party whole. |
Key Cases Cited
- In re Estate of Miraglia, 290 Ga. App. 28 (Ga. App. 2008) (liquidated claims accrue prejudgment interest)
- Rivergate Corp. v. Atlanta Indoor Advertising Concepts, 210 Ga. App. 501 (Ga. App. 1993) (liquidated claims bear interest)
- Crisler v. Haugabook, 290 Ga. 863 (Ga. 2012) (demand for prejudgment interest prerequisite)
- Shepard v. Gettys, 206 Ga. 392 (Ga. 1950) (timing of purchase-money interest under specific circumstances)
- Adams v. Foster, 141 Ga. 438 (Ga. 1914) (possession rule for interest where cash transaction contemplated)
- Lively v. Munday, 201 Ga. 409 (Ga. 1946) (possession timing controls interest accrual in cash-like transactions)
- Golden v. Frazier, 244 Ga. 685 (Ga. 1979) (incidental damages allowed to make plaintiff whole)