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OFC Capital v. Schmidtlein Electrical, Inc.
Citations: 656 S.E.2d 272; 289 Ga. App. 143; 2008 Fulton County D. Rep. 112; 2008 Ga. App. LEXIS 21Docket: A07A1636
Court: Court of Appeals of Georgia; January 9, 2008; Georgia; State Appellate Court
OFC Capital sued Schmidtlein Electrical, Inc. and its principals for breach of contract due to non-payment under a lease agreement assigned to OFC by NorVergence, Inc. Schmidtlein moved to dismiss the complaint, claiming the forum selection clause in the lease was unenforceable and that OFC failed to include NorVergence as an indispensable party. The trial court granted the dismissal, but did not specify which ground was the basis. OFC appealed, and the Court of Appeals of Georgia reversed the trial court's decision. The court noted that the forum selection clause had previously been upheld in OFC Capital v. Colonial Distribution, establishing that it was enforceable since it informed the defendant of potential assignments and the applicable venue for lawsuits. Consequently, the trial court erred in dismissing the case based on this ground. As for the second ground regarding the necessity of joining NorVergence, the appellate court could not determine if the trial court addressed this issue. It clarified that dismissal on this basis requires a finding of indispensability and a failure to join after an opportunity. The case was remanded to the trial court for further findings on this matter. The judgment was reversed and the case remanded with instructions. Judges Barnes and Miller concurred.