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Myers v. Texaco Refining & Marketing, Inc.
205 Ga. App. 292
Ga. Ct. App.
1992
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*1 Judgmеnt Birdsong, Beasley, J., J., P. concurs. con- affirmed. specially. curs Judge, concurring specially.

Beasley, i.e., 1, The issue discussed and decided in Division the search of jacket pocket marijuana it, the by and seizure of the from is not raised

appellant abyss ator most falls into the same of abandonment as disposed inof 3. those Division liberally errors, read,

The enumeration of contends that the reasons, search warrant curred before its issuance of defective for seven that its oc- execution beyond scope, its and that items three physical evidence have should been excluded because left in the jury overnight during trial, room deliberations the first which was mistried.

Appellant’s argument validity addresses the of the warrant and its does It issuance. does not address the execution of the warrant. Nor pat-down jacket address the and seizure of items from the pocket diazepam (bottle (marijuana) appellant’s pants pockets two plastic bag methamphetamine, bullets, one .22 other). containing $1,012

wallet in the It does not show how war- invalidly authority subject rant, issued, if him, еliminates the to a vis- during pat-down weapons. execution, itor the warrant’s to a search for attacking argu- to contention, As ment the final evidence, chain merely restates it. Based on the 2, authorities cited at the end of Division I concur respect appellant’s challenge validity and issuance of premises. the search warrant for I co-defendant’s concur Division 3 I and do not reach the issue decided Division 1. July Decided July 1992.

Reconsideration denied appellant. Hester, Hester Hester, & Frank B. for Attorney, Fuller, C. Andrew District Wilbanks, Jr., John G. As- Attorney, appellee. sistant District for A92A0261. et al. MYERS v. TEXACO REFINING &

MARKETING, INC. Presiding Judge. Birdsong, Buffington personal injuries slipped Vivian sustained when she fell as a customer at a Texaco service station and food mart. She Refining premises, & Mar- of the the owner filed suit individually facility, Myers, (Texaco), operator keting, Inc. (Myers), Jiffy Texaco cross-claimed and others. Mart and d/b/a operation pursuant Myers, claiming to their contract fully Myers agreed and in- defend business, and covenanted of the demnify alleged cross-claim also claims. Texaco’s Texaco for such liability *2 provide Myers’ insurance for failure to breach of contract coverage ‍‌​‌​​​​​​​‌‌​‌​‌​​​‌​​​‌​​​​‌‌‌​‌‌‌​​​​‌‌‌‌​​​​​‍for Texaco. Myers against were severed from the trial

Texaco’s cross-claims personal injury jury Buffington’s returned a verdict for claims. The plus apportioned against Myers Buffington, $43,650 interest et al. for plus against costs, $162,475 interest and costs. Texaco for Myers against and breach for indemnification Texaco’s cross-claims the liability provision provisions were then heard. The insurance Paragraphs issue are 9 and 10 of the contract. pertinent part:

Paragraph in “INDEMNITY— Con- [Myers] fully protect, agrees defend, indem- tractor nify covenants and every claim, . each and and hold harmless Texaco . . de- any liability, expense (including cost, mand or cause of action and attorney expenses), damage . . . in reasonable fees and or loss con- may any therewith, which be made asserted . . . third nection or parties age personal injury property ... on account of or death or dam- by, arising way of, to, in

caused incidental or con- except performance hereunder, nection with the as of the services negli- ... to have determined resulted Texaco’s sole gence..” (Emphasis supplied.)

Paragraph pertinent part provides: in “INSURANCE—The [Myers] maintain, . . Contractor coverage shall at his sole cost . the insurance evidencing required set ... A forth below. certificate specifically quoting insurance and the indemnification set Agreement Compre- forth . shall be delivered to Texaco. . . C. Liability [in amounts]. hensive General policy Insurance ... stated This among liability cover, risks, shall other the contractual as- Agree- sumed under the indemnification set forth Liability liability . . ment. . E. Excess Insurance—Excess insurance comprehensive general liability coverage over . . . with minimum lim- policies $1,000,000.00. its of All such insurance shall be endorsed to show Texaco as an additional insured.” summary judgment.

Both Texaco and filed motions for summary granted judgment The trial court Texaco’s motion for regard summary Myers’ judg- and denied motion for deliberately ment. on Texaco’s The trial court refrained from provi- Myers’ liability procurement claim for breach of the sion. pursuant contract, Texas

The trial court determined that to the construing indemnity agreements governs; Texas law adopted has “express negligence according doctrine” to which the in- tent to tract; must be stated within the four corners of the con- indemnity language Paragraph standing alone, “express negligence doctrine”; failed to but that the indemnity provisions quirements Paragraph together with the insurance re- Myers’ 10 satisfied the doctrine inasmuch as against personal injury intent to Texaco losses and attor- ney expenses expressed fees and within the four corners of the compliance contract and in with Texas law. pay $162,475

The trial court ordered Texaco for the personal injury judgment against attorney Texaco, $32,900.50in fees plus $5,325.53 costs, interest. contends that under the doctrine” the indemnity provision is unenforceable because it does not provide indemnifies Texaco claims out of negligence; Texaco’s own insurance Myers; Myers against and that the and the together impose duty construed do not such a so, contends he is not liable to joint negligencе. this claim and Texaco’s Held: *3 complicated

1. Rather than rule on the indemnification issue under Texas law and undetermined, leave the breach of contract issue the trial court should have ruled on the issue of breach of contract for Myers’ provide liability failure to insurance with Texaco as named Myers required insured. The that was to defend and Myers separate Texaco tract this claim does not relieve of the con- obligation provide liability particularly insurance, to insofar as peculiar damages may Although arise from this breaсh of contract. cross-appeal give Texaco pression issue, did not on this we decline to im- might give dead, that the issue is since that room for more litigation. (d). § See OCGA 5-6-34 provides Myers maintain, that “shall at his sole comprehensive general liability cost. . . [and] insurance excess liabil- ity specified paragraph provides: [in amounts].” insurance The then policies “All such insurance shall be endorsed to show Texaco as an (Emphasis supplied.) undisputed My- additional insured.’’'’ It is procure Myers ers did Rather, such insurance. asserts that Texaco by compliance provision. its conduct waived with this A conclusion is regardless Myers required demanded that whether was to required procure liability Texaco, to insurance for Texaco. If the reason, were unenforceable for the re- quirement Myers procure liability insurance for Texaco becomes everything. required Texaco is not to have raised the breach of con- appeal pending tract it, issue on or else lose because it is still below. (b). summary judgment grant to Texaco § OCGA 9-11-54 See indemnity to not relieve оf the issue does on the Myers’ liability provide de- insurance. As to its failure to answer for waiver, favored and must be law a waiver is not fense of unequivocal. voluntary, knowing, & Aban- See EGL 28A Waiver and (1985 ed.). evidentiary hearing seq. donment, quired An be re- § et3 (under being given special damages, with consideration as to provide liability Myers’ appropriate pleadings) to failure to indemnity provision unenforceable, light of its assertion that the contrary protection altogether to with no at all leaves Texaco which the to this gave plain indisputable contract, rise and which terms of litigation. correctly summary judgment granted to Texaco

2. The trial court though issue, stated. The indem- not for the reasons nity provision within its own terms the intent for contains and Texaco’s Texaco for this claim necessary to construe this is not procurement provision in order to find such intent. with the insurance parties’ express “Agreement intent that the shall be con- strued in accordance with the Laws of the State of Texas” will be Georgia public application honored unless of Texas law contravеnes policy prejudicial Georgia’s Nasco, Inc. v. Gim- interests. See or is (2) (238 England Mtg. bert, New McLaughlin, Security Co. v. 87 Ga. 1 SE contends the adopted by doctrine” Court that when to a contract seek indemnification of the negligence, indemnitee its own such an “specifically tention the four corners of the must be stated within Ethyl Corp. Constr. contract.” Daniel Myers, public pol- According such a view is consistent with icy upon negligent which “is reluctant ‍‌​‌​​​​​​​‌‌​‌​‌​​​‌​​​‌​​​​‌‌‌​‌‌‌​​​​‌‌‌‌​​​​​‍to cast the burden of actions ‘(i)t those who are not at fault. Thus is well established Georgia that contractual indemnities do not extend to losses caused an indemnitee’s own unless the contract (Cits.)’ [Cits.] states that the of the indemnitee is covered. ‘ closely “The words of the contract will be scrutinized to discover *4 every pre- whether such an intent is revealed them and sumption against explicit language In such intention. the absence of contrary, interpret [Georgia] to the courts will not an agreement promise by as a the indemnitor to save the indemnitee (Cits.)’ negligence.” [Cit.] . . . harmless on account of the latter’s own ‘Georgia imply agreement indemnify courts never another for ” (Cits.)’ express language. All- one’s own in the absence of City App. 692, Atlanta, state Co. v. Ins. 693 quoted policy just

Myers Georgia law and are con contends the adopted by doctrine” with the sistent provision in courts, this case unenforce authorize us to find the Myers indemnify state that will because it does able Myers negligence. arising out of Texaco’s own a claim Texaco virtually indemnity provision in this case is identical asserts that the Singleton wanting by v. Court to the one found Corp., which the Crown Central Petroleum 729 SW2d as to Appeals Davis, Ford, Texas, Oil v. Bacon & Court of Texas 782 SW2d meet the guage stating nify Gulf (1) Singleton “The failed to stated: express negligence test, because it contained no direct lan parties that contractor would indem intended negligence. the owner’s owner for the own only Rather, could, best, be inferred that such was the language stated that the accidents for which intent because indemnity apply arising neg will not are those out of the owner’s sole ligence.” support Myers contentions, In of its relies on Linden- Masonry Alimak, McDonald, 82; Inc. v. Coast SW2d Gulf compаre Boyd Owens-Illinois, Co., 239; v. Amoco 739 SW2d Production Drilling, 528; Adams Resources &c. v. Resource 761 SW2d 63. properly find, however, law,

We that Texas construed require law, does not us to find that this is unenforceable as regards grounds Texaco’s that it does not contain necessary express Regardless governs the tract, intent. whose law a con- requires give meaning every law us to term rather meaningless, than construe term as and to construe a contract so uphold every part; if as to the contract whole and construc- goes strongly against party doubtful, tion is “that which . most . . undertaking generally preferred.” § to be OCGA 13- (4) statutory sup- 2-2 This mandate is of more than force posed presumption, arising Georgia law, whether out of Texas or parties the Texaco’s never intended that Texas for

joint negligence. agrees every personal from and injury “each and claim ... on account of arising performance . . . hereunder, out of . . . of the services except negligence.” (Empha- . . . resulted from sole Texaco’s supplied.) language personal injury sis sulted from indemnification. But every” This clear. If this had re- negligence, Myers sole

Texaco’s would not be liable for is liable to for “each and necessarily claim; other kind of includes a claim joint out of indemnify If the had intended would not any negligence

Texaco from a claim Tex- they aco, event, would have said so. In that would not

297 negligence. arising excepted only “sole” out of Texaco’s claims have In being having any or reason for construe -this order to indemnify meaning all, Texaco as to claims at an directly arising joint negligence deduced. must be out of ignore plain language Georgia permit us to law does not Since meaningless, if Texas law dictates a to construe it as a contract or conclusion that this of is unenforceable as a statement pub- against joint negligence, such law would be demnification for policy interpret in their reasonable mean- this state to contracts lic of parties. ing according Lewis, Hull v. See to the intent of the undertaking by joint a SE This whole contract is Ga. joint undertaking Texaco; include that this would joint negligence is not unreasonable. indemnification for Texaco’s except indemnify from all clаims those That would arising negligence In “sole” is likewise reasonable. or- from Texaco’s indemnify der to conclude aco’s did not mean to Texaco for Tex- that effect be would required, “excepting” language which claims case in. negligence be We cannot construe Texaco’s “sole” this contract toward such a result. would nonsense. City supra, prove Atlanta, Allstate Ins. Co. v. cited to

Georgia policy express negli law and are consistent authority (Georgia gence doctrine, Scarboro, State Tel. Co. v. and its (2) (251 309)) App. 390, both involved contracts expressed indemnify which no intent was the indemnitee for claims solely. negligence,jointly Thus, out of the indemnitee’s own “ ‘ “[t]he the statement that will words of the contract be scrutinized closely against party [to to discover whether such an intent a negligence] actually every his own is revealed them and ’ ” (Allstate presumption supra intention,” Co., is Ins. attempts party’s refers to to create indemnification for a own negligence reasonably where no such intent be inferred. Cer tainly where there is no hint that an indemnitor means to negligence, presumption another from his own creating such an thin air. Such was the case both Georgia Allstate Ins. Co. and State Tel. and that is the context presumption-against-indemnification in which their reference to a very must be understood. Those contracts were different from the one plainly expresses case, in this which the intent for to indem nify degree negligence, Texaco for some of Texaco’s own for it re quires arising every except indemnification each and of Texaco for claim one pub Furthermore, sole

out of its the statement policy Georgia upon lic Allstate Ins. Co. State Tel. Co. rests the idea that we are reluctant to cast the burden of actions “upon actually those who are not at fault.” Allstate Ins. Co. at 693. negli necessarily policy where the weakened a of such

The basis gence indemnitee, joint and the the indemnitor is at fault. indemnitor in such case the (Allstate State Co. and Ins. cases same These “ ‘ closely Co.) require “to discover the contract ‍‌​‌​​​​​​​‌‌​‌​‌​​​‌​​​‌​​​​‌‌‌​‌‌‌​​​​‌‌‌‌​​​​​‍us to scrutinize Tel. negli- against his own indemnitee [an intent to whether gence] ’ ” supra Allstate, This at 693. in disapproval revealed them.” the idea its face is statement on *6 plain language reasonably may such as inferred from intent exists not be indemnify its own The intent to in this case. plainly expressed. merely “implied” joint negligence Con- but is is policy, patent statutory public inference law and sistent with our may interpretation plain language an obvious drawn from be public pol- doing prevents required; this, our if law us from Texas icy requires supra Nasco, Inc., See law not be followed. that the Texas (2). presumptiоn against indemni- there is a at To conclude (though merely joint negligence it because the contract fication for else) say “Myers nothing indemnifies did not could mean (4): joint negligence,” § “The 13-2-2 construc- will violate OCGA for tion preferred, every part uphold in in is to be whole and which will a contract arriving into the whole contract should be looked and any part.” construction Accordingly, is enforceable this indemnification joint negligence. The trial court claim for Texaco’s as to this summary judgment granting this issue. in to Texaco on did not err cоntrary Myers’ assertions, Moreover, this contract is not to 3. Supreme virtually inadequate to the one held identical Corp., supra Singleton Petroleum at 729 v. Crown Central Court Singleton agreement provided that the claims for SW2d 690. The arising of “the activ- were those which the owner was indemnified per- [cjontractor with the work to be ities ... or connection only arising excepting contract, claims out of . . . this formed under Singleton resulting [o]wner.” v. accidents from the sole provi- Corp., That Crown Central Petroleum 117-118. only arising out of indemnifies the owner as to сlaims sion on its face arising apply contractor”; does not to a claim “the activities of the it with the of the owner unless it arises connection out of conduct performed contract, and even then the owner work to be not indemnified Texas not under the negligence. arising

for claims out of his sole say why that contract “does Court did not found (Singleton, ‘express negligence’ rule,” 729 SW2d at 691), Oil Texas cases such as and we cannot bind ourselves to Gulf recognize Corp. supra, Ford, Davis, the am- v. Bacon & which do not biguous in the Sin- limited nature of the whole clause Singleton gleton the one ilk contract is contract. Of the same Masonry supra, Owens-Illinois, in agreed Coast v. where the contractor Gulf arising “any the owner from loss act or contractor.” That omission of owner its face indemnifies the for claims out of the contractor’s acts or omissions. expressed No intention is that contract to the owner for authority conduct, claims for this case. out of the owner’s so case is no indemnity provisions Doubtless there are Texas in which cases they require interpretation аre so clear that no to find indemnifica- (see supra; Boyd Ford, Davis, tion Amoco Production required Oil v. Bacon & Gulf supra), interpretation but the fact that an plain or that an obvious inference must be made from unambiguous language, provi- case, such as does not make a Georgia presumption fact, sion unenforceable under law. In is to contrary. § OCGA 13-2-2 The claim this case did not arise Therefore, from Texaco’s sole under the terms of agreement, excepted Myers’ promise this claim is not demnify. Any other construction make nоnsense of the contract preferred and is not under law. Accordingly, under rules of contract construction with respect governed by law, to this contract the intent of joint negligence clearly unmistakably Texaco’s ex- pressed. Summary judgment to Texaco on the indemnification issue *7 proper; judgment was the trial court’s award to Texaco on the amount attorney expenses regard indemnity pro- and for fees and with to the affirmed, vision is and the case is remanded for resolution of the issue Myers’ provide liability of breach of сontract damages relating for Texaco and thereto. Judgment Sognier, and case remanded with direction. affirmed McMurray, Carley, Pope, J., Cooper, J., C. P. J.,P. Andrews and Beasley,

Johnson, JJ., J., concur. dissents. Judge, dissenting.

Beasley, The issue is the effect of an indemnification in a con- operation tract for services for the of a retail service station and food placed procedurally mart. It is before us as follows. hearing summary judgment

After a on the cross-motions for granted evidence, consideration of the the court Texaco’s motion for summary judgment regard with to its crossclaim for contractual demnity against Myers Myers’ summary and denied cross-motion for judgment. rendering The order stated that inasmuch as the court was indemnity, its decision on Texaco’s crossclaim for contractual ruling portion summary court was not on that of Texaco’s motion for judgment regard upon to its breach of contract crossclaim nor procurement provision. defense of waiver of the insurance challenge: pro- Myers’ appeal The indemnification is a threefold by Paragraph 9, vision, unenforceable virtue of its failure to itself is satisfy provision “express negligence The the Texas doctrine.” indemnification provision, together Paragraphs

construed with the insurance together, 9 and 10 does not doc- negligence trine” and indemnification for The is therefore unenforceable. indemnity provision is likewise unavailable to Texaco to recover attorney its fees and costs. regard appeal” to the court’s

No issue “is raised on portion on the of contract of the crossclaim and so none breach (d); § 5-6-34 Westwind v. Wash- should be addressed. OCGA ington (393 (1) Savings App. Assn., &c. Fed. 195 Ga. SE2d expressly provides parties agree 1. The contract and the indemnity. applied assessing Texas law should be contractual following Texas, in Court of its trend toward a adopted contracts, more strict construction of press has ‍‌​‌​​​​​​​‌‌​‌​‌​​​‌​​​‌​​​​‌‌‌​‌‌‌​​​​‌‌‌‌​​​​​‍an “ex- negligence doctrine,” that when which to a con- tract seek indemnification of the indemnitee from the negligence “specifically of its such an intention must be stated within the four corners of the contract.” 725 SW2d Georgia public policy [2] (Tex. 1987). Ethyl Corp. Such a view is consistent with Daniel Constr. negli- which “is reluctant to cast the burden of ‘(i)t gent upon actually actions those who are not at fault. Thus well established in tend to losses caused that contractual indemnities do not ex- negligence an indemnitee’s own unless the contract ered. closely states that of the indemnitee is cov- ‘ (Cits.)’ [Cits.] “The words of the contract will be scrutinized to discover whether such an intent revealed them every presumption and explicit language In the intention. absence of contrary, [Georgia] interpret

to the cоurts will not indemnity agreement promise by an as a the indemnitor to save the negligence.” indemnitee harmless on account of the latter’s own (Cits.)’ ‘Georgia imply [Cits.] . . . courts never to indem- nify another for one’s own the absence of lan- ” (Cits.)’ guage. City App. Atlanta, Allstate Ins. Co. v. 308) (1992). similarly in Allstate claims”) sweeping (“any ity impose and all and was insufficient liabil- *8 indemnity specific, express, explicit. for because it was not impediment applying There is thus no law. Texas indemnity provision Paragraph 9, own, 2. The of on its does not satisfy express negligence language tеst. The relevant is vir- tually Singleton agreement identical to an v. examined in Crown Cen- (Tex. 1987). Corp., unfavorably tral Petroleum 729 SW2d 690 In com- Singleton paring Ford, the to one Oil v. Bacon & Gulf

301 Davis, Texas, 782 SW2d 30 [1] (Tex. App. — Beaumont 1989), Appeals agreement in “The the Singleton Court of Beaumont stated: Texas express negligence test, it con- con- failed to meet the because language stating intended tained no direct the that the for the of the owner’s tractor owner only negligence. Rather, could, best, be inferred own it language only the acci- was the intent becаuse stated indemnity apply which will not those of the provi- dents for owner’s sion are negligence.” infirmity indemnity sole is the of the Such Linden-Alimak, McDonald, case Inc. v. the at bar. See also — (Tex. 1988); Masonry App. Coast v. 745 SW2d Fort Worth Gulf (Tex. 1987). Compare Boyd Owens-Illinois, 739 SW2d 239 v. Amoco — (Tex. 1990); App. Co., Production 786 SW2d Eastland Atlan- (Tex. 1989); Personnel, v. tic Petro. 768 SW2d Adams Richfield — (Tex. Drilling, App. &c. Resources v. Resource 761 SW2d 63 (14th Dist.) 1988). point language Houston The is that omnibus joint negligence. law, not sufficient to cover provision blanket Under a indemnity only which excludes for sole here, does demnitee not cover because it dоes not expressly say language” mandatory. so. “Direct

3. 9 combined with the procurement provision Paragraph insurance 10 still does not express negligence requirement. Appeals rejected The Texas Court Dallas considered and analogous Spring Valley Co., situation in Adams v. Constr. — (Tex. App. Compare Klepac Champlin Dallas Petro- (5th 1988), leum 842 F2d 746 Cir. in which the issue of whether indemnity language express negligence or doctrine not satisfied the Texas squarely Adams, was In addressed. the court was asked indemnity language conjunction to construe in a subcontract with language procured conjunction from a certificate of insurance express the subcontract to find an intent was subcontractor against liability to negligence. Although the contractor due to the contractor’s physically sep- the certificate of arguendo subcontract, arate document from the the court assumed that the certificate was a condition of the subcontract and within its considering language, four corners. Even inad- combined was an equate statement of assumed for the indemni- tee. language The combined at issue the from the here fails because at most

sought indemnity joint negligence can inferred language procurement provision. Implica- additional of the insurance tion and inference cannot transform omission into an or ex- plicit says, language,” intent, statement of or as Oil “direct Gulf the indemnitee its own concurrent *9 provisions were sufficient. contract in court erred trial summary question judgment on Texaco entitled to 4. Nor was attorney fees and costs. for of its indemnification (Tex. Ind., v. Dresser 776 SW2d 790 Inv. &c. In Construction — (1st Dist.) 1989), Appeals App. in the Texas Court Houston (1st Dist.) not an indem- the issue of whether or addressed Houston express negligence nity test, could contract, which did not meet attorney pay obligate cessfully defending negligence suc- indemnitee’s fees for the indemnitor employee of the indem- claim an citing, could, inter that it The court concluded nitor’s subcontractor. alia, applying holding Texas law two federal court decisions negligent, found where it was not “an indemnitee recover costs express negligence though stan- meet the even the contract did not part in fact ‍‌​‌​​​​​​​‌‌​‌​‌​​​‌​​​‌​​​​‌‌‌​‌‌‌​​​​‌‌‌‌​​​​​‍in Dresser rests on the Id. at 792. The decision dard.” underlying negligent the indemnitee was not found to that tort claim. negligent case, Texaco found to be In this was indemnitee degree joint greater than but to a much tortfeasor/indemni- Myers. tor bar, Furthermore, Dresser, re- unlike case repeated” specific, lengthy, garding that it was “so defense costs “ ‘separate properly as a item of indemnifica- was more characterized ” supra Dresser, tion.’ See at 793. costs, case for indemnification of defense expenses, closely including attorney akin reasonable fees and is more Owens-Corning Fiberglas, 764 SW2d 293 to that Monsanto Co. — Dist.) 1988). (Tex. (1st App. Dresser, As “the Houston noted approximately in Monsanto was words lengthy indemnity length” compare specific, and did “not with the clause” in Dresser.

The unelaborated indemnification of defense costs mention of reasonably sep- the short at bar cannot be found any attempt negligence, at indemnification for arate and distinct from under the Dresser rationale. judgment for Texaco should be reversed. July

Decided July denied

Reconsideration Taylor, Lane, O’Brien, Ormand, L. Russell T. Caswell & Richard Bryant, appellants. for ap- White, Rust, Moffett, Matthew G.

Fortson & Michael J. pellee.

Case Details

Case Name: Myers v. Texaco Refining & Marketing, Inc.
Court Name: Court of Appeals of Georgia
Date Published: Jul 16, 1992
Citation: 205 Ga. App. 292
Docket Number: A92A0261
Court Abbreviation: Ga. Ct. App.
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