Newell Recycling of Atlanta, Inc. v. Jordan Jones & Goulding, Inc.
288 Ga. 236
| Ga. | 2010Background
- JJ & G designed an automobile shredding facility for Newell under August 1997 letters and a Draft Scope of Work, plus an agreement to prepare a concrete work platform for drainage control.
- After construction, the facility operated and the concrete platform began to fail around May 2000.
- Newell sued JJ & G in August 2004 for breach of contract and professional malpractice.
- JJ & G moved for summary judgment in August 2005, arguing the four-year statute of limitations of OCGA § 9-3-25 applied for implied promises.
- The trial court denied summary judgment in 2008, finding a possible written contract and thus the six-year period of OCGA § 9-3-24 could apply.
- The Court of Appeals reversed, holding that even if a written contract existed, four years under OCGA § 9-3-25 applied to professional malpractice premised on a written contract.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Which statute of limitations applies when professional malpractice is premised on a written contract? | Newell argues 9-3-25 applies if no complete writing; otherwise 9-3-24 applies if writing exists. | JJ & G contends written contract status triggers 9-3-25; otherwise 9-3-24. | Six-year statute applies when a complete written contract exists; four-year applies only if no written contract exists. |
| Does a complete written contract exist between the parties to affect the applicable statute of limitations? | Documents at issue may constitute an enforceable written contract. | Even if written, the nature of the claim is professional malpractice under a written contract, but the four-year limit should not apply if a complete writing exists. | If a complete written contract exists, the six-year period applies to breach of contract and related implied duties; the four-year period applies only where no sufficiently written contract exists. |
Key Cases Cited
- Seaboard Air-Line R. Co. v. Averett, 159 Ga. 876 (Ga. 1925) (six-year writing contract rule governs implied duties arising from writing)
- Adams v. Lee County Bank & etc. Co., 178 Ga. 154 (Ga. 1934) (reiterates six-year writing contract principle)
- Bd. of Regents of the University System of Ga. v. Tyson, 261 Ga. 368 (Ga. 1991) (distinguishes complete written contracts for limitations analysis)
- Nelson v. Nelson, 176 Ga. App. 107 (Ga. App. 1985) (premises four-year vs six-year depending on contract existence)
- Jankowski v. Taylor, Bishop & Lee, 154 Ga. App. 752 (Ga. App. 1980) (malpractice premised on fees alone—no full contract; four-year applies)
- Old Republic Nat. Title Ins. Co. v. Attorney Title Svcs., 299 Ga. App. 6 (Ga. App. 2009) (overruled to treat complete written agreements as six-year)