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PRESTON CARROLL CO., INC. v. Morrison Assur. Co.
326 S.E.2d 486
Ga. Ct. App.
1985
Check Treatment

*1 412 accepted Company, Ti- Publishing R. Don Kalle Press ‘7s/ individually.” granting strike, the motion to V. P. and

tle Exec. /s/ face, con- on was between Fort when contract “shows trial court that the held My- agreement strued as a matter of Ray Corporation Don defendant Motels ers News-Press individually obligated on said contract.” Kalle not R. was oral motion to strike, for as a motion to strike was couched summary judgment, judgment pleadings, and was con on the or presumably (f). A OCGA 9-11-12 strike, under strued as a motion to complaint allegation be has been held to motion to strike an (Jillson analogous v. state claim for failure to to a motion to dismiss 476)). App. Barton, A motion to dismiss Ga. 769 SE2d 139 granted be unless under for failure to state a claim is not to pleadings, sey (Mas plaintiffs light in a most favorable to the construed 830)), App. plaintiff Perkerson, can es v. Ga. that would entitle 895 129 it to relief the defen tablish no set of facts Properties, 242 Ga. v. 462 Atlanta Assoc. Westminster dant. Savings 252); Assn., 148 Ga. v. Atlanta Moultrie Federal 77); County, App. App. v. Monroe Harrell 489). 20); App. Eason, Christner v. accepted disregard We fact Kalle ad- are unable individually,” president vertising executive vice “and contract as give meaning possible can to those words other than relates no liability. may jury of the case It that under circumstances liability or trial Kalle, can that no was intended attach determine (or proper mo- function of a motion to strike but this is not a dismiss) pleadings, including contract, are con- tion where plaintiff resolved its favor. strued favor of the and all doubts Goolsby Regents System, v. Univ. 165). count, erred. trial court part. Carley part reversed in affirmed Beasley, JJ., concur. Polonsky, appellant. K.

Louis Wayne Watkins, Bond,

Kirk R. W. COMPANY, et INC. al. 69086. PRESTON CARROLL ASSURANCE COMPANY. MORRISON (326 SE2d Presiding Judge. Deen, Company, appellants, Con- Inc. and CFW Preston Carroll Inc., joint formed a venture and Company, struction contracted Clayton County Authority for the construction a waste Water May water effluent field. On entered into sev- Builders, (Simplicity), part eral subcontracts with Inc. appellee, of the work under the water contract. The Morri- Company, compensated surety, son issued Assurance *2 sake, payment $171,814 and Simplicity’s the amounts of bonds $79,699. and 25, 1980, appellants

On the the terminated various sub- to alleged multiple contracts due the latter’s breaches Subsequently, appellants requested ap- the contract. the the that pellee performance payment honor the and Sim- completing bonds plicity’s paying work and the bills outstanding for materials. On 28, 1980, March the appellants demanded the first initi- against Simplicity; ate suit appellants never heeded the demand. 4, 1981, unpaid supplier March of Simplicity filed suit against the appellants, Simplicity, respective their bonding and com- panies. appellants against turn asserted a ap- cross-claim pellee for its refusal the performance payment to honor bonds. eventually The appellee for summary judgment moved on the cross- claim, on the basis that discharged from its obligations under payment bonds because of the failure to file suit against Simplicity within surety’s three months of the mand, and appeal this followed from trial court’s of that motion. Held: 103-205)

OCGA 10-7-24 (formerly Ann. provides Code § § “[a]ny surety, guarantor, endorser, or any time after the debt on due, he is liable becomes may give writing notice to the cred- itor ... proceed to .; and, to principal. collect the debt from the . if the creditor or holder refuses or fails commence an action space (the of three months after such principal notice within being jurisdiction state), endorser, guarantor, surety this giving notice, subsequent as cosureties, well as all endorsers and all shall be discharged.” On April Court held that applies section to compensated as well as uncompensated sureties. Balboa Ins. Co. v. A. J. Kellos Constr.

In the instant it is undisputed appellants failed to proceed (which against Simplicity was within the jurisdiction) state’s within three months of the notice given by the appellee March more, 1980. Under authority, the above without the appellee would be entitled to summary judgment as matter a of law.

However, appears that, it also in failing uncontroverted to com- any mence action the principal following the notice given surety, Houston relied Gen. Ins. Co. v. Brock which the compensated apply to sureties. Title 103 does not Court held that surety compensated pointed “the law for That out that Title We note that common law this state. must found surety princi- largely law of of the common a codification many surety pal, or similar law are the same of the rules of uncompensated compensated Thus we will look sureties. persuasive thereunder, and the cases decided compensated governing Whether sureties. as to the law applied to differ from the law to be rules case-by-case basis.” Id. at sureties must be decided on discharge provision of No to Balboa held that the 463-464. case (now 10-7-24) applied § Code Ann. 103-205 OCGA sureties, law in this state the enactment common compelled neither creditor sue such request discharged principal nor at the of the Brown, Howard v. such an action. the creditor’s failure to commence (3) (54 (1847); Clarkson, SE Thomas expressly Houston Balboa court did not *3 supra, Co., denied Gen. Ins. Co. v. Brock Constr. cannot be contrary. holdings of therefore in- are crux the instant case two particular dispute determining governs volves which rule between appellee. and the overruling generally retroactive, of a is but retroac- decision may overruling application be de- tive of a decision justifiably unjust re- clined where results would accrue to those who 45) upon Walker, lied rule. Walker (1981). Barron, Co. N. Y. v. See also Mutual Ins. Life of 334) (1943), Co., 454, Cas. Flewellen v. Atlanta 463-464 pertinent At in this 250 Ga. 709 i.e., all times suretyship by of and notice at the creation pronouncement manding principal, suit the most recent by Supreme provided Georgia which, 103, of Court that Title question, apply course, in did not included the reliance sureties. We therefore consider pronouncement injustice apply- justifiable, and the of retroactively thereby discharging ing Balboa obvi- application Accordingly, Balboa retroactive of ous. we conclude that summary judgment in for the this case was error and that inappropriate. Pope McMurray, J., J., Banke, C. P. reversed. Sognier Beasley, Birdsong, Carley, Benham, JJ., J., P. concur. JJ., dissent. 8,

Rehearing denied 1, Henry Angel, E. Turnipseed, appellants. William Jr., Slagle, Thompson, DeWitte B. Jefferson Judge, dissenting. Sognier, respectfully

I majority dissent. The determined that Su in preme Co., Court’s decision Balboa Ins. Co. v. A. J. Kellos Constr. 599) (1981) implicitly Ga. 393 overruled its earlier de in v. Brock cision Houston Co. Ga. 460 by retroactively, Balboa declining apply the indi rect effect of the majority’s opinion is to hold Court principle Balboa established a new of law. See Flewellen v. Atlanta 673) 709, Cas. 250 Ga. I disagree.

I nothing contrary find the decisions Balboa and Moreover, Houston. I find that the Balboa decision did not establish law, a new principle clearly but by was instead foreshadowed Houston that warning rules established “[w]hether seq.] now OCGA 10-7-1 et differ [former from the applied law to be must be decided on a case-by-case (Emphasis basis.” Id. supplied.) at agree

Therefore cannot majority’s apply with the refusal to Bal- Flewellen, retroactively. boa supra, adopted the test Huson, Chevron Oil Co. v. 404 U. S. 97 SC 30 LE2d (1971) for retroactivity Court stated that deciding a retroactivity question the court should: “Consider whether the deci- sion be applied nonretroactively principle new by either past precedent relied, overruling litigants on which deciding issue of first impression clearly whose resolution was not Flewellen, supra foreshadowed.” explicitly 712. Balboa did not precedent, past may and while the issue have been one impression, first Balboa resolution was foreshadowed Houston, language supra used at 464. *4 feel that Court’s in Balboa requiring

harsh in paid one who to take steps additional collecting before from that paid, benefits which one has holding nevertheless the in Balboa is the law and we are constrained it. I follow would affirm the trial court’s appellee’s motion for summary judgment.

I am authorized to state that Presiding Judge Birdsong, Judge Carley Judge Beasley join this dissent.

Case Details

Case Name: PRESTON CARROLL CO., INC. v. Morrison Assur. Co.
Court Name: Court of Appeals of Georgia
Date Published: Jan 8, 1985
Citation: 326 S.E.2d 486
Docket Number: 69086
Court Abbreviation: Ga. Ct. App.
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