Aрpellant Bilbub entered into a contract with appellee Ridgeway for the construction and lease of two billboards advertising a Hardee’s restaurant owned by Bilbub. Bilbub sold his interest in the restaurant to Franchise Enterprises, Inc. Thereafter, Bilbub
1. Bilbub contends that the trial court erred in failing to grant its motions fоr directed verdict, judgment notwithstanding the verdict, and new trial because the evidence demanded a finding that the rental contracts between Bilbub and Ridgeway had been discharged and extinguished by novation. Bilbub contends that the parties’ conduct after execution of the contract to purchase between Bilbub and Franchise is sufficient evidence to show a novation, and thus a verdict should have been directed in Bilbub’s favor.
“One simple contract as to the same matter, and on no new consideration, does not destroy another between the same parties; but if new parties are introduced by novation, so as to change the person to whom the obligation is due, the original contract is at an end.” Code Ann. § 20-115. A novation is a complete contract in itself and has four essential elements: (1) a previоus valid obligation, (2) the agreement of all the parties to the new contract, (3) the extinguishment of the old contract, (4) the validity of the nеw one.
Miller-Terrell, Inc. v. Strother,
There may be a novation of debtors, but the novation must be such as to release the original debtor and substitute а new debtor in his place. This release and substitution may be by express terms, or may be inferred from the acts of the parties or by necеssary implication from a construction of the new agreement.
Yancey Bros. Co. v. Bowling,
2. Bilbub next contends that it was error for the trial court to fail to grant appellаnt’s motions for directed verdict, judgment notwithstanding the verdict, or new trial because the evidence did not authorize a jury verdict of $5,750 for attorney fees against Bilbub.
Code Ann. § 20-1404 provides: “The expenses of litigation are not generally allowed as a part of the damages; but if the defendant has acted in bad faith, or has been stubbornly litigious, or has caused the plaintiff unnecessary trouble and expense, the jury may allow them.” It is only necessary for the plaintiff to show that one of the three conditions required by the statute exists.
Employers Liab. Assur. Corp. v. Sheftall,
3. Bilbub also contends thаt the verdict in favor of Ridgeway in the amount of $9,600 damages and $5,750 attorney fees, and the verdict in favor of Bilbub against Franchise in the amount of $9,600, are inconsistent and contrary to law. Bilbub contends that since the jury returned a verdict against Franchise for the exact amount of Ridgеway’s verdict against Bilbub, but without additional attorney fees, Bilbub was vindicated as to liability and the attorney fees exacted were a penalty.
Bilbub filed its third party claim against Franchise based on the indemnification clause of the contract between Bilbub and Franchise, and argues that if it is indemnified as to liability on the contract, it should also be indemnified as to attorney fees. Franchise contends that where Bilbub failed to expressly set forth in the contract any mention of the leases with Ridgeway, Franchise cannot be held responsible for assuming any liability оn such leases. The contract of sale included the following indemnification clause:
“(b) Indemnification of Sellers. Franchise shall indemnify Sellers against any and all claims, demands, losses, costs, obligations, attorneys’ fees, and liabilities that Sellers may incur or suffer as a result of Franchise’s breach of any agreement, covenant or warranty in this agreement. Franchise shall further indemnify Sellers against any claim or loss resulting from Franchise’s breach of or failure to perform after the closing date any duty or obligation of Sellers under any contract, lease, loan agrеement, or other agreement to which Sellers are a party or by which Sellers are otherwise bound at the closing date, but only to the extent that Franchise expressly assumes such duties or obligations hereunder.” (Emphasis supplied.)
Bilbub’s representative admitted that there had been no specific rеference to the Ridgeway leases when the contract between Bilbub and Franchise was executed, and that under the contract, Franchise never expressly assumed the obligation for the Ridgeway leases. We find no ambiguity in the terms of the contract, nor do we find sufficient evidence to show a mutual departure from the terms of the contract. By the terms of the contract, Franchise was not liable fоr any duty it did not expressly assume. In such a case, no construction is required or even permissible when the language employed by the parties in their contract is plain, unambiguous, and capable of only one reasonable interpretation.
R. S. Helms, Inc. v. GST Develop. Co.,
4. In view of our holding in Division 3, appellant Franchise’s other enumerations of error need not be discussed.
Judgment affirmed in Case No. 60677; judgment reversed in Case No. 60676.
