299 Ga. 443
Ga.2016Background
- Dolores Moreno acquired residential property in 2004 and gifted Gina a one-half interest in 2007.
- Dolores and Gina signed a written document purporting to be a contract under which Gina would buy Dolores’s remaining half for $75,000 payable in $400 monthly installments.
- Gina made no payments for several years; Dolores sued for breach of contract and sought an equitable accounting between tenants in common. Dolores later died and her estate continued the suit.
- Trial court granted partial summary judgment to Dolores, finding as a matter of law a binding contract, and after a bench trial awarded damages for breach and fair market rent as an accounting adjustment.
- On appeal, Gina argued extrinsic evidence showed the parties never intended a binding contract; the Supreme Court of Georgia found genuine factual disputes and reversed/vacated parts of the judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the signed writing constituted a binding, enforceable contract | The written document is a clear, complete contract obligating Gina to pay $75,000 | The writing was a sham or nonbinding; extrinsic evidence shows no mutual assent or expectation of payment | Reversed summary judgment—genuine factual dispute exists about mutual assent; case must proceed (no contract as a matter of law) |
| Admissibility of parol/extrinsic evidence to show no contract | Parol rule bars extrinsic evidence because writing is facially complete | Parol evidence may be used to show no agreement existed (sham/no intent to be bound) | Parol evidence admissible to show no valid agreement; trial court erred in excluding its effect at summary judgment |
| Measure of damages for alleged breach of contract | Trial court used interest on purchase price from breach to judgment | Gina argued measure should be contract price vs. fair market value at breach | Court did not decide proper measure of damages here because breach is unresolved; vacated damages award |
| Equitable accounting between tenants in common | Dolores sought fair market rent for her half as adjustment | Gina argued accounting depends on whether a contract existed and that award was premature | Award vacated because accounting depends on existence of contract; remanded for further proceedings |
Key Cases Cited
- Cox Broadcasting Corp. v. Nat. Collegiate Athletic Assn., 250 Ga. 391 (sets out objective theory for mutual assent)
- McReynolds v. Krebs, 290 Ga. 850 (extrinsic evidence may be considered to determine mutual assent)
- Quigley v. Jones, 255 Ga. 33 (measure of damages for breach of land-sale contract is contract price minus fair market value)
- Fletcher v. C.W. Matthews Contracting Co., 322 Ga. App. 751 (where extrinsic evidence is disputed, assent is generally a jury question)
