Sherman v. Development Authority
321 Ga. App. 550
Ga. Ct. App.2013Background
- Georgia petitioned Fulton County Superior Court for validation of taxable revenue bonds by DAFC to finance a data center project leased to T5@Atlanta, LLC.
- Sherman, a Fulton County resident, sought party status in the bond validation proceeding and filed objections.
- DAFC moved to strike Sherman’s pleadings for failure to follow OCGA § 9-11-24 intervention procedures, and the court granted the motion and also validated the bonds.
- Sherman appealed the strike order and attempted to appeal the bond validation order, contending CPA does not require intervention and challenging the validation on various grounds.
- The appellate court held that the CPA’s intervention procedures apply to bond validations and Sherman failed to intervene, so the pleadings were properly struck; Sherman lacked standing to appeal the validation order.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Do CPA intervention procedures apply to bond validations? | Sherman: CPA does not apply; statute silent on intervention. | DAFC: CPA applies via OCGA § 9-11-81; Hay overruled; intervention required. | CPA interventions apply; failure to intervene supports striking pleadings. |
| Does failure to intervene preclude Sherman’s appeal of the bond validation order? | Sherman argues he should be a party despite no formal intervention. | Sherman must be a party at rendering to appeal; lack of standing bars appeal. | Sherman has no standing to appeal the validation order. |
Key Cases Cited
- Sherman v. Dev. Auth. of Fulton County, 317 Ga. App. 345 (Ga. Ct. App. 2012) (reaffirming de novo review and intervening rights in bond validations)
- Hay v. Dev. Auth. of Walton County, 239 Ga. App. 803 (Ga. Ct. App. 1999) (held no CPA intervention requirement in bond validations absent explicit reference)
- Hardin Constr. Group v. Fuller Enterprises, 265 Ga. 770 (Ga. 1995) (CPA applies to special statutory proceedings; arbitration analogy)
- Anderson v. Flake, 270 Ga. 141 (Ga. 1998) (CPA applies to statutory proceedings in absence of express conflict)
- Rojas v. State of Ga., 269 Ga. 121 (Ga. 1998) (special statutory proceeding; CPA applies)
- Phagan v. State, 287 Ga. 856 (Ga. 2010) (statutory framework; CPA remedies under governing statutes)