Kasum Communications, Inc. v. CPI North Druid Co., 50502

Citation135 Ga.App. 314,217 S.E.2d 492
Decision Date02 July 1975
Docket NumberNo. 50502,No. 1,50502,1
PartiesKASUM COMMUNICATIONS, INC. v. CPI NORTH DRUID COMPANY
CourtUnited States Court of Appeals (Georgia)

Claude E. Hambrick, D. L. Latimore, Jr., Atlanta, for appellant.

Troutman, Sanders, Lockerman & Ashmore, William G. McDaniel, John J. Dalton, Atlanta, for appellee.

MARSHALL, Judge.

The issue presented in this appeal is whether the trial court erred in entering as part of its judgment for the appellee, CPI, an award for $2,404.80 for attorney fees. The lease agreement between the appellant, Kasum, and CPI provided that if CPI had to collect the rent from Kasum through an attorney at law, Kasum agreed to pay 15% thereof as attorney fees. The lease also contained an acceleration clause for rent whenever Kasum defaulted under the lease. In its complaint, as amended, CPI prayed for $30,728.00 for 10 1/2 months 'rent owing' and unpaid. The complaint also contained an 'Attorney's Fee Notice' paragraph, wherein CPI informed Kasum of its intention to enforce the attorney fee provision of the lease. The trial judge, in its order granting CPI's motion for summary judgment, found that Kasum was chargeable for rent due for only six months ($16,032), and on the basis of that amount, awarded attorney fees to CPI for $2,404.80. Kasum's appeal asserts that the award of that attorney fee was erroneous because the notice of enforcement in the complaint was not given after maturity as required by Code Ann. § 20-506. Since the term of the lease was 10 years, Kasum's obligation for rent thereunder, it contends, was not to mature until 1984, and notice prior to that time violated the statute. Held:

Code § 20-506, as last amended by Ga.L.1968, p. 317, provides in pertinent part: '(c) The holder of the note or other evidence of indebtedness, or his attorney at law, shall, after maturity of the obligation, notify in writing the maker, indorser or party sought to be held on said obligation that the provisions relative to payment of attorney's fees in addition to the principal and interest shall be enforced and that such maker, indorser or party sought to be held on said obligation has 10 days from the receipt of such notice to pay the principal and interest without the attorney's fees.' (Emphasis supplied.)

Appellant's contention that the maturity of its obligation under the lease was not until 1984 overlooks the acceleration clause in the lease. That clause provides that upon default by the lessee (Kas...

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5 cases
  • Radioshack Corp. v. Cascade Crossing II
    • United States
    • Georgia Supreme Court
    • October 29, 2007
    ...can be and are properly used with respect to monetary obligations in leases. Holmes v. Bogino, supra; Kasum Communications v. CPI North Druid Co., 135 Ga.App. 314, 217 S.E.2d 492 (1975). A broad interpretation of the phrase "evidence of indebtedness" is also entirely consistent with subsect......
  • Derbyshire v. United Builders Supplies, Inc.
    • United States
    • Georgia Court of Appeals
    • March 13, 1990
    ...439 (1983). The provision for attorney fees in the lease agreement is governed by OCGA § 13-1-11. Kasum Communications v. CPI North Druid Co., 135 Ga.App. 314, 217 S.E.2d 492 (1975). Accord Reach Out v. Capital Assoc., 176 Ga.App. 585, 586(2), 336 S.E.2d 847 (1985); Burgess v. Clermont Prop......
  • Holmes v. Bogino
    • United States
    • Georgia Court of Appeals
    • January 18, 1996
    ...in default. Duff's Enterprises v. B.F. Saul etc. Trust, 170 Ga.App. 9, 10(1), 316 S.E.2d 21 (1984); Kasum Communications v. CPI North Druid Co., 135 Ga.App. 314, 217 S.E.2d 492 (1975). An examination of OCGA § 13-1-11 in its entirety shows that it is generally intended to apply to obligatio......
  • Reach Out, Inc. v. Capital Associates, Inc., 71312
    • United States
    • Georgia Court of Appeals
    • October 28, 1985
    ...§ 13-1-11(a)(2) are not applicable to the lease agreement. This enumeration of error is without merit. See Kasum Communications v. CPI North Druid Co., 135 Ga.App. 314, 217 S.E.2d 492) Judgment reversed. McMURRAY, P.J., and BENHAM, J., concur. ...
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