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King Industrial Realty, Inc. v. Worthington Custom Plastics, Inc.

Citations: 249 Ga. App. 501; 549 S.E.2d 153; 2001 Fulton County D. Rep. 1614; 2001 Ga. App. LEXIS 545Docket: A01A0375

Court: Court of Appeals of Georgia; May 7, 2001; Georgia; State Appellate Court

Narrative Opinion Summary

In this case, King Industrial Realty, Inc. initiated legal action against Worthington Custom Plastics, Inc., alleging breach of an exclusive right of sale agreement related to commercial property. King sought damages for commission, marketing services, and attorney fees under OCGA 13-6-11. The trial court granted Worthington's motion for partial summary judgment concerning the commission and attorney fees claims. The court found that the listing agreement, effective from May 1, 1996, necessitated a commission only if a purchaser was secured within the agreement's term. Worthington leased the property to American Millwork on July 24, 1996, with an option to purchase, and the property was sold on April 15, 1999. King argued that securing a lessee with an option equated to securing a purchaser. However, the court held that the sale after the agreement's expiration did not entitle King to a commission. The trial court's summary judgment was affirmed, confirming that the agreement's language clearly delineated commission terms, and the claim for attorney fees was not viable. Judges Smith and Barnes concurred with the decision, emphasizing the contractual interpretation and procedural correctness in the judgment.

Legal Issues Addressed

Award of Attorney Fees under OCGA 13-6-11

Application: The trial court's ruling that King was not entitled to attorney fees was upheld, as the breach of contract claim was not successful.

Reasoning: The trial court granted Worthington's motion for partial summary judgment on the first and third counts.

Breach of Exclusive Right of Sale Agreement

Application: The court analyzed whether King Industrial Realty, Inc. was entitled to a commission based on the lease agreement, concluding that the terms required a purchaser to be secured during the agreement's term.

Reasoning: The court determined that the listing agreement explicitly required a commission only if a purchaser, not a lessee, was secured during its term.

Interpretation of Contractual Terms

Application: The court addressed King's contention that the trial court misinterpreted the agreement, affirming that the language of the contract was clear and did not support King's claims for commission post-expiration.

Reasoning: King contended that the trial court misinterpreted the agreement's language and that it should be allowed to pursue all claims.

Summary Judgment in Contract Disputes

Application: The court affirmed the granting of partial summary judgment, holding that there was no genuine dispute as to any material fact regarding the entitlement to commission or attorney fees.

Reasoning: The trial court granted Worthington's motion for partial summary judgment on the first and third counts.