International Images, Inc. v. Smith
| Citation | 318 S.E.2d 711,171 Ga.App. 172 |
| Decision Date | 03 May 1984 |
| Docket Number | No. 68179,68179 |
| Parties | INTERNATIONAL IMAGES, INC. et al. v. SMITH. |
| Court | United States Court of Appeals (Georgia) |
Paul D. Smith, Jr., Decatur, for appellants.
Jack C. Bell, Gainesville, for appellee.
Trover. Construing the evidence in this case in the light most favorable toward the prevailing party and resolving all conflicts against appellants, as apparently the jury did (Cotton v. John W. Eshelman & Sons, 137 Ga.App. 360, 365, 223 S.E.2d 757), the jury was entitled to conclude the following:
On or before May 1979, Maloy and Chrietzberg determined to build a prototype of a pontoon supported houseboat with the intent of custom manufacturing such boats. At the time in May of 1979, Maloy and Chrietzberg were officers of International Images, Inc., a corporation used for advertising and other purposes. After the decision to make the first boat was made, Maloy together with Chrietzberg went to Lake Lanier at the suggestion of a friend to talk with Smith about renting space adjacent to lake Lanier to store material to be used in building the houseboat. Though his statement was disputed, Smith testified that at the time of this discussion, nothing was said about a corporation. Smith was under the belief that Maloy in his individual and personal capacity rented a shed and obtained permission to use Smith's dock in order to float and launch the projected houseboat. Over the next three years, Maloy individually paid Smith the stipulated rent for the shed. Sometimes Smith collected the rent personally in cash by going to Maloy's place of business. Other times Maloy paid by check. These checks were written upon a corporate account of International Images, Inc., and later upon the account of The Great Inland Ship Company. All assets of International Images, Inc., relating to the houseboat were transferred to The Great Inland Ship Company after the shed was rented in May 1979. It is undisputed that Smith was not aware of the existence of the successor corporation nor shown any papers concerning the transfer to The Great Inland Ship Company. In fact there was evidence to support a jury conclusion that Smith was unaware of any interest in the shed by either corporation until this dispute arose in May 1982.
Two events occurred in May 1982, that brought the present controversy to a head. Maloy failed to make rental payments for two consecutive months. Smith called Maloy's office but was unable to make contact with Maloy or find out where Maloy might be. In fact, Maloy had been arrested upon a charge of child molestation, removed to jail, and did not come back to his place of business. Chrietzberg, an attorney, represented Maloy in the criminal proceedings. Maloy was convicted and sentenced to a number of years to serve. As a result Chrietzberg "purchased" Maloy's interest in the houseboat by transferring Maloy's share in The Great Inland Ship Co. to himself. Chrietzberg then determined to change the pontoon design of the boat, simplifying the construction and lessening the need for much of the material stored in the shed rented to the company by Smith. Chrietzberg advertised the material for sale.
On a particular weekend in May 1982, Chrietzberg took an interested buyer to the shed to look at the stored material. At that time, Chrietzberg for the first time took a complete inventory of the contents of the shed. As Chrietzberg left the shed, Smith came up and complained that Maloy was two months delinquent in rental payments. It was at this time that Chrietzberg informed Smith that Maloy was in jail and that he was now the sole owner of the material stored in the shed. Chrietzberg informed Smith that he intended to sell some of the material to pay the corporation's delinquent rent and had advertised for that purpose. Smith refused to allow Chrietzberg the right to remove anything from the shed until the rent was paid and some proof was shown that Chrietzberg was now the owner rather than Maloy. Chrietzberg left with his buyer without submitting any documentary evidence of ownership.
A week later, Chrietzberg returned to the shed a second time. This time an automobile was parked so close to the shed door that no one could enter it. Once again Smith demanded the payment of his back rent and some proof that Chrietzberg was now the owner of the material in the shed. Once again, Chrietzberg left.
International Images, Inc. and The Great Inland Ship Company (hereinafter referred to as "Chrietzberg") then brought this suit in trover demanding the fair value of the goods rather than the return. It is uncontested that Smith makes no claim to ownership of the corporate chattels claimed by Chrietzberg and in effect concedes that the property in fact is the property of Chrietzberg and/or The Great Inland Ship Co. It also is uncontested that Chrietzberg has made no effort to pay the two months delinquent rent, nor ever shown any corporate papers to Smith.
After a trial by jury, with full instructions to the jury, the jury found against Chrietzberg and in favor of Smith's counterclaim for two months rent in the amount of $300. Appellants bring this appeal enumerating several alleged errors, treated hereinafter. Held:
1. In essence enumerations 1, 3, 4, and 5 argue that the state of the evidence demanded a finding in favor of Chrietzberg and failed to support a finding in favor of Smith.
Both parties are in agreement that a bailment is involved. Smith in his counterclaim sought damages for a breach of the lease agreement whereas Chrietzberg complained that Smith had exercised possessory rights over property belonging to the corporation and thus converted the property. In order to present a cause of...
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