You are viewing a free summary from Descrybe.ai. For citation checking, legal issue analysis, and other advanced tools, explore our Legal Research Toolkit — not free, but close.

Unipay, Inc. v. Lynk Systems, Inc.

Citations: 251 Ga. App. 674; 555 S.E.2d 78; 2001 Fulton County D. Rep. 3022; 45 U.C.C. Rep. Serv. 2d (West) 808; 2001 Ga. App. LEXIS 1120Docket: A01A0832

Court: Court of Appeals of Georgia; October 3, 2001; Georgia; State Appellate Court

Narrative Opinion Summary

In this commercial dispute, Lynk Systems, Inc. filed a lawsuit against Unipay, Inc. to recover $164,202.54 for electronic credit card processing equipment pursuant to a contract governed by the Uniform Commercial Code (UCC). Lynk also sought litigation expenses under OCGA § 13-6-11. The trial court granted summary judgment in favor of Lynk, finding Unipay liable for the full contract price despite claims of undelivered equipment. Unipay admitted to ordering the equipment and acknowledged a partial debt of $90,161.54 but contended that items valued at $74,041 were either missing or incomplete. The appellate court determined that factual disputes regarding the delivery of equipment precluded summary judgment, allowing Unipay to potentially dispute liability for the undelivered items. The court noted that any underdelivery constituted a nonconforming tender under UCC provisions, thereby permitting Unipay to treat it as an offer to pay only for delivered items at the contract rate. Consequently, the appellate court reversed the trial court's judgment and remanded the case for further proceedings to address the factual disputes and Lynk's claim for litigation expenses.

Legal Issues Addressed

Litigation Expenses under OCGA § 13-6-11

Application: The case was remanded for a jury to consider the claim for litigation expenses, as the appellate court reversed the trial court's summary judgment.

Reasoning: The judgment of the trial court was reversed, and the case was remanded for a jury to consider Lynk's claim for litigation expenses.

Summary Judgment - Factual Dispute

Application: The court evaluated the presence of factual disputes regarding the delivery of equipment and determined these issues precluded summary judgment.

Reasoning: Lynk contested Unipay's evidence, it acknowledged that there was a factual dispute regarding whether all ordered items were delivered.

Uniform Commercial Code - Nonconforming Tender

Application: The appellate court considered whether Unipay's acceptance of a nonconforming tender under the UCC allowed them to dispute liability for undelivered equipment.

Reasoning: The appellate court affirmed that if there was underdelivery, it was a nonconforming tender and Unipay was entitled to treat it as an offer to pay for the delivered items at the contract rate.