Silver Pigeon Properties, LLC v. Fickling & Co.
316 Ga. App. 167
| Ga. Ct. App. | 2012Background
- Fickling & Company (Fickling) obtained a lease via Ginny Wyatt, an independent Fickling agent, for 1000 Corporate Pointe, Warner Robins, GA in 2006, with a 2007–2009 extension.
- Silver Pigeon Properties, LLC (Silver Pigeon) purchased the property in April 2008 and negotiated a Management Agreement with Fickling that allegedly granted exclusive management rights for 1 year starting April 16, 2008, with annual renewals.
- The Management Agreement provided a 6% commission on operating income for existing and new leases during occupancy, vesting in management of the property.
- After the original term ended in March 2009, Silver Pigeon continued using Fickling’s services and paying commissions until September 1, 2009, when Silver Pigeon advised it would assume management.
- The Air Force continued leasing the space until about March 2011, but Fickling received no commissions after September 1, 2009; Fickling sued for breach of contract, foreclosed broker’s liens, and attorney fees; Silver Pigeon counterclaimed for declaratory relief and to challenge lien validity and termination terms.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the management agreement is void for public policy due to termination terms. | Silver Pigeon argues lack of termination terms violates Rule 520-1-.06(2)(a)(8) of the Georgia Real Estate Commission. | Fickling contends the agreement is not void despite alleged regulatory issues and cites Johnson Realty for controlling standards. | No public policy violation; agreement otherwise valid. |
| Whether Fickling is entitled to 6% commissions through Air Force vacancy date. | Silver Pigeon contends commissions only through termination or vacancy periods. | Fickling argues 6% on operating income applies while tenants occupy space, per the contract. | Fickling awarded 6% commissions through the date tenants vacated, i.e., until vacancy. |
Key Cases Cited
- Aka Mgmt. v. Branch Banking &c., 275 Ga. App. 615, 616 (621 SE2d 576) (2005) (Ga. App. 2005) (contract/termination issues aligned with professional conduct standards)
- Edwards v. Grapefields, Inc., 267 Ga. App. 399, 401-406 (1) (599 SE2d 489) (2004) (Ga. App. 2004) (contracts violating professional licensing rules not per se void as public policy)
- Precision Planning v. Richmark Communities, 298 Ga. App. 78-80 (1) (679 SE2d 43) (2009) (Ga. App. 2009) (waiver/contract construction principles in public policy context)
- RSN Properties v. Engineering Consulting Sues., Ltd., 301 Ga. App. 52 (686 SE2d 853) (2009) (Ga. App. 2009) (public policy/contract issues discussed in related context)