COEN v. APTEAN, INC. et al.
S18G1638
Supreme Court of Georgia
307 Ga. 826
FINAL COPY
NAHMIAS, Presiding Justice.
The parties in this case have spent years engaged in a series of lawsuits. The case now before this Court concerns a claim of abusive litigation that Timothy Coen filed based on a previous contract lawsuit against his former employer that was resolved in his favor. In his abusive litigation case, Coen seeks punitive damages. In Coen v. Aptean, Inc., 346 Ga. App. 815, 816 SE2d 64 (2018), the Court of Appeals upheld the trial court‘s ruling that punitive damages are not available for a statutory abusive litigation claim. See id. at 823-824. The Court of Appeals relied on its prior decisions that in turn rely on dicta in footnote 3 of this Court‘s opinion in Yost v. Torok, 256 Ga. 92, 95 n.3, 344 SE2d 414 (1986), which was decided three years before the current abusive litigation statutes,
We granted Coen‘s petition for certiorari to decide whether that statute authorizes the recovery of punitive damages. As explained below, we conclude that punitive damages generally may be recovered in an abusive litigation lawsuit (as long as the lawsuit is not solely to recover damages for injury to peace, happiness, or feelings),1 because the text of
Accordingly, we reverse the holding in Division 2 of the Court of Appeals‘s opinion and remand the case for further proceedings consistent with this opinion.
Coen then filed a motion for attorney fees and litigation expenses under
In 2015, Coen filed three abusive litigation lawsuits in Fulton
In September 2016, Coen filed a single renewal action under
intentionally overaggressive litigation strategy . . . caused delay[;] unnecessarily caused him time, trouble and mental distress; unnecessarily expanded the proceedings; and unjustifiably forced [him] to incur substantial fees and expenses at high financial risk to himself and his family, all to recover an obviously valid debt.
In October 2016, the defendants filed motions to dismiss Coen‘s claims. In May 2017, after a hearing, the trial court granted the motions to dismiss. The court held that Coen‘s claim of abusive litigation failed because he did not plead special damages (and he had already recovered attorney fees and litigation costs for the underlying contract lawsuit); his claim for damages based on injury to peace, happiness, or feelings was not a stand-alone claim but was subsumed by — and thus failed with — the abusive litigation claim; and his pleading for punitive damages failed because punitive damages are not available in an abusive litigation lawsuit. The court also held that Coen‘s claim for attorney fees failed because it was
The Court of Appeals affirmed in part and reversed in part the trial court‘s dismissal of Coen‘s complaint. See Coen, 346 Ga. App. at 816. In Division 2 of its opinion, the Court of Appeals affirmed the dismissal of Coen‘s request for punitive damages, agreeing with the trial court‘s holding that a plaintiff cannot recover punitive damages for a statutory abusive litigation claim. See id. at 823-824. The Court of Appeals reversed the trial court‘s holding that Coen was required to plead special damages, see id. at 821-823; that holding is not at issue here. Coen petitioned for a writ of certiorari, arguing that the Court of Appeals‘s holding as to punitive damages is wrong because
2. (a) The abusive litigation statutory tort
In 1989, the General Assembly created the statutory tort of “abusive litigation,” defined as follows:
Any person who takes an active part in the initiation, continuation, or procurement of civil proceedings against another shall be liable for abusive litigation if such person acts:
(1) With malice; and
(2) Without substantial justification.
On and after April 3, 1989, no claim other than as provided in this article or in Code Section 9-15-14 shall be allowed, whether statutory or common law, for the torts of malicious use of civil proceedings, malicious abuse of civil process, nor abusive litigation, provided that claims filed prior to such date shall not be affected. This article is the exclusive remedy for abusive litigation.
(b) “[A]ll damages allowed by law as proven by the evidence.”
“[A]ll damages” is a broad phrase. In Gordon v. Atlanta Cas. Co., 279 Ga. 148, 611 SE2d 24 (2005), for example, this Court applied a broad interpretation of the adjective “all” in holding that a plaintiff who was entitled to recover “all sums” under an automobile insurance statute could recover for the death of his son in a car accident, explaining:
The language of the statute is plain and it is not illogical. It clearly states that the insurer is to pay “all sums which [the] insured shall be legally entitled to recover as damages from the owner or operator of an uninsured motor vehicle.” All means all, every single one.
Id. at 149 (emphasis in original; quoting
Punitive damages are a type of damages “allowed by law” in tort cases under certain limited conditions. See
The defendants point out that this Court held in another case that a statute allowing a plaintiff to recover “any damages sustained” did not provide for the recovery of punitive damages. See Lyman v. Cellchem Intl., Inc., 300 Ga. 475, 477, 796 SE2d 255 (2017). We reached that conclusion in Lyman, however, primarily because “punitive damages generally are not ‘sustained’ by a plaintiff, but are imposed upon a defendant based on that defendant‘s wrongful conduct.” Id. at 477. Lyman‘s reasoning does not apply to
(c) “[I]ncluding costs and expenses of litigation and reasonable attorney‘s fees.”
The defendants argue that “all damages” is also limited by the
Traditionally, litigation costs and expenses and attorney fees have not been clearly recoverable in abusive litigation cases. Attorney fees and expenses of litigation generally were not recoverable in the common-law torts of malicious abuse and
3. Although the words of
(a) Malicious abuse and malicious use of legal process.
Before 1986, claims of abusive litigation in Georgia could be brought as one of two common law torts: malicious abuse of legal process and malicious use of legal process. See Juchter v. Boehm, Bendheim & Co., 67 Ga. 534, 538 (1881) (“That the right exists to sue in all cases of the malicious abuse, or use of legal process without probable cause, is universally recognized, and needs no citation of authority.“). See also Porter v. Johnson, 96 Ga. 145, 146-148, 23 SE 123 (1895)
Important to this case, however, plaintiffs in both malicious abuse and malicious use of process cases could recover punitive damages. See Dixie Broadcasting, 209 Ga. at 106 (“The right to recover damages exists equally in both classes of cases; but vindictive or punitive damages are only allowed where the act of the defendant was influenced by malicious motives and without probable cause.” (quoting Juchter, 67 Ga. at 538-539)); Woodley v. Coker, 119 Ga. 226, 226, 46 SE 89 (1903) (“Punitive damages are recoverable in an action for the malicious use of process in a civil suit.“); Crusselle v. Pugh, 71 Ga. 744, 747 (1883) (“[A] right of action exists in all cases of malicious abuse of legal process, or its use without probable cause, and . . . punitive damages may be recovered in such cases.“); Multiple Realty, Inc. v. Walker, 119 Ga. App. 393, 396, 167 SE2d 380 (1969)
(b) Yost v. Torok.
In 1986, this Court decided Yost v. Torok, 256 Ga. 92, 344 SE2d 414 (1986), in which certiorari was granted to “determine whether the Toroks’ complaint stated a claim for malicious abuse of process.” Id. at 92. Instead of deciding that particular question, the Yost Court announced major changes to the two common law torts dealing with abusive litigation.11 The Court began the opinion by discussing the elements and complexities of the two torts and noting the difficulties plaintiffs could have in recovering under those torts, explaining that the torts “provide remedies only for extraordinary circumstances”
The Court then turned from this background discussion of the perceived problems with the common law to redefining the malicious abuse and malicious use of process torts in this way:
The tort system can (and should) provide within its own structure the means for preventing its abuse. To accomplish this, we now delineate a remedy which will (a)12
merge, by redefinition, the common-law claims of malicious abuse and malicious use; (b) assure against chain-reaction litigation by requiring that any such claim be presented as a part of the underlying action; (c) specify a procedural mode for the disposition of the claim.
After this statement comes a footnote discussing a law review article that the Court apparently considered in fashioning the new claim. The “unfounded litigation” cause of action proposed in the article would “allow recovery of punitive damages” based on “proof of malice or other aggravating circumstances.” Yost, 256 Ga. at 95 n.4 (citing Scott Partridge, Joseph Wilkinson, & Allen Krouse, A Complaint Based on Rumors: Countering Frivolous Litigation, 31 Loy. L. Rev. 221, 254-263 (1985)). The Court also cited a law review note that advocated for the creation of a uniform statutory approach to “the problem of unfounded litigation,” and explained that in such a claim “[f]actual dishonesty and other extreme abuses could justify punitive damages.” John Raymond Jones, Liability for Proceeding with Unfounded Litigation, 33 Vand. L. Rev. 743, 772 (1980).
The Court proceeded to “re-define the elements of the common-
Any party who shall assert a claim, defense, or other position with respect to which there exists such a complete absence of any justiciable issue of law or fact that it reasonably could not be believed that a court would accept the asserted claim, defense, or other position; or any party who shall bring or defend an action, or any part thereof, that lacks substantial justification, or is interposed for delay or harassment; or any party who unnecessarily expands the proceeding by other improper conduct, including, but not limited to, abuses of discovery procedures, shall be liable in tort to an opposing party who suffers damage thereby.
Damages are not mentioned anywhere else in the description of this new abusive litigation tort; the focus of the redesign was on changing the procedure for bringing the tort and changing what a plaintiff must prove to prevail. See Yost, 256 Ga. at 96. Yost did not purport to tinker with the types of damages that had been available under the common law torts.13 Moreover, punitive damages were not
In support of this dicta, Yost cited only
As discussed above, in Yost’s holdings — the new cause of action and procedures that the Court crafted — there is no mention
(c) Snellings v. Sheppard.
After Yost, the law in Georgia as to the availability of punitive damages in abusive litigation torts remained what it had always been — punitive damages were generally recoverable in such cases as long as the plaintiffs were not seeking damages solely for injury
Eight years later in Snellings, the Court of Appeals addressed the question of whether the statutory abusive litigation tort allowed punitive damages to be recovered under
In fact, because the opposite of the premise on which Snellings relied is true, the reasoning employed in that opinion actually supports the opposite of Snellings’s conclusion. Because the General Assembly was legislating in a legal landscape where punitive damages were — and traditionally had been — allowed in abusive litigation torts (not based solely on injured feelings), it is presumed that the phrase “all damages allowed by law” includes punitive damages. See May, 295 Ga. at 397 (“[T]o the extent that statutory text can be as reasonably understood to conform to the common law
The defendants contend that even if the holding of Snellings was wrong, we should follow it because the legislature did not amend
4. Finally, the defendants assert that because, as Yost said in its footnote 3 dicta, the abusive litigation tort is already a deterrent, the addition of punitive damages is impermissibly duplicative. Over a century of Georgia law before Yost disagreed with that broad assertion, and so do we. The defendants argue that because every plaintiff who brings an abusive litigation action must prove that the defendant acted “with malice,” see
This argument clearly fails with regard to abusive litigation actions in which the plaintiff seeks damages only for injury to peace, happiness, or feelings under
For all of these reasons, we conclude that
5. The defendants also point out some perceived deficiencies in
Judgment reversed in part, and case remanded. All the Justices
Certiorari to the Court of Appeals of Georgia — 346 Ga. App. 815.
Charles M. Cork III, for appellant.
Balch & Bingham, Michael J. Bowers, Matthew B. Ames, Jessica F. Nwokocha, Jena C. Lombard; Alston & Bird, Steven M. Collins, Samuel R. Rutherford, Elizabeth B. Brown; Robbins Ross Alloy Belinfante Littlefield, Richard L. Robbins, Alexa R. Ross, Rachel F. Gage, for appellees.
Notes
In State Farm Mutual Automobile Insurance Co. v. Weathers, 260 Ga. 123, 123, 392 SE2d 1 (1990), this Court approved the Court of Appeals‘s holding in Roman v. Terrell, 195 Ga. App. 219, 393 SE2d 83 (1990), that the “all sums” statutory language that had been at issue in Gordon did not cover punitive damages because the statute provided for the recovery of all sums which the insured was entitled to recover as damages “because of bodily injury to or death” and “because of injury to or destruction of property.” Roman, 195 Ga. App. at 220. Much like we did later in Lyman, the Court of Appeals reasoned that this language did not include punitive damages because “an award of punitive damages stems from the tortfeasor‘s conduct rather than from the victim‘s bodily injury or property damage.” Roman, 195 Ga. App. at 221. The Court of Appeals also noted, however, that when other courts have interpreted provisions that provide coverage for “all sums” without linking those sums to physical injury or property damage, the courts “have usually found the statutory language ‘plain’ and permitted the recovery of punitive damages.” Id. at 220.
(a) In any civil action in any court of record of this state, reasonable and necessary attorney‘s fees and expenses of litigation shall be awarded to any party against whom another party has asserted a claim, defense, or other position with respect to which there existed such a complete absence of any justiciable issue of law or fact that it could not be reasonably believed that a court would accept the asserted claim, defense, or other position. Attorney‘s fees and expenses so awarded shall be assessed against the party asserting such claim, defense, or other position, or against that party‘s attorney, or against both in such manner as is just.
(b) The court may assess reasonable and necessary
attorney’s fees and expenses of litigation in any civil action in any court of record if, upon the motion of any party or the court itself, it finds that an attorney or party brought or defended an action, or any part thereof, that lacked substantial justification or that the action, or any part thereof, was interposed for delay or harassment, or if it finds that an attorney or party unnecessarily expanded the proceeding by other improper conduct, including, but not limited to, abuses of discovery procedures available under Chapter 11 of this title, the “Georgia Civil Practice Act.” As used in this Code section, “lacked substantial justification” means substantially frivolous, substantially groundless, or substantially vexatious.
. . .
(e) Attorney’s fees and expenses under this Code section may be requested by motion at any time during the course of the action but not later than 45 days after the final disposition of the action.
