TermNet Merchant Services, Inc. v. Phillips, No. S03G1157.
| Court | Supreme Court of Georgia |
| Writing for the Court | SEARS, Presiding Justice. |
| Citation | 277 Ga. 342,588 S.E.2d 745 |
| Parties | TERMNET MERCHANT SERVICES, INC. v. PHILLIPS. |
| Docket Number | No. S03G1157. |
| Decision Date | 10 November 2003 |
588 S.E.2d 745
277 Ga. 342
v.
PHILLIPS
No. S03G1157.
Supreme Court of Georgia.
November 10, 2003.
Gregory R. Crochet, Carr, Tabb, Pope & Freeman, LLP, W. Pitts Carr, Atlanta for appellee.
SEARS, Presiding Justice.
We granted certiorari to consider whether a trial court has discretion to deny a claim for attorney fees brought pursuant to OCGA § 13-1-11, despite undisputed compliance with the requirements of that statute. Based upon the statute's language and legislative history, we conclude that attorney fees sought under OCGA § 13-1-11 are mandatory where the statute's conditions have been clearly satisfied. Therefore, we reverse.
In 1996, appellee Andrew Phillips entered into both an employment agreement and a stock purchase agreement with appellant TermNet Merchant Services, Inc. ("TermNet"). At roughly the same time, Phillips executed a promissory note payable to TermNet in the principal amount of
TermNet made a demand on Phillips to pay the balance of the note and put Phillips on notice that if the note was not paid in full within 10 days of the demand letter's receipt, TermNet would enforce the note's attorney fees provision. When its demand was not satisfied, TermNet sued Phillips for, among other things, contract breach and failure to make payments under the note. The trial court bifurcated the case, and ordered that all claims arising from the employment contract and stock purchase agreement—both of which contained arbitration provisions—be submitted to binding arbitration. At the same time, the trial court retained jurisdiction over the claims pertaining to the note, which contained no arbitration provision.
The trial court found that Phillips was liable on the note for the principal, interest and late fees, and granted TermNet partial summary judgment.1 At that time, the trial court reserved judgment on whether to award TermNet attorney fees under OCGA § 13-1-11, as requested. One month later, the arbitration panel entered an award in TermNet's favor on its claims pertaining to the stock option and employment contracts. The arbitration panel's award included an award of attorney fees. The trial court then confirmed the panel's award, but denied TermNet's request for statutory attorney fees under OCGA § 13-1-11 with regard to its efforts to collect on the note.
TermNet appealed the denial of its request for attorney fees. Even though the Court of Appeals found that TermNet had satisfied all of OCGA § 13-1-11's requirements, it nonetheless affirmed the trial court's denial of TermNet's request for fees.2 The Court of Appeals reasoned that the trial court must have deemed the arbitration award—which, as stated, included an award of attorney fees—sufficient to compensate TermNet for fees it incurred in pursuing all of its claims, including those pertaining to the note. TermNet's petition for certiorari was granted so that this Court could consider whether a trial court has discretion to deny a request for attorney fees pursuant to OCGA § 13-1-11 despite undisputed compliance with all the conditions of that statute.
1. OCGA § 13-1-11(a) provides in pertinent part that:
...588 S.E.2d 747Obligations to pay attorney['] fees upon any note or other evidence of indebtedness, in addition to the rate of interest specified therein, shall be valid and enforceable and collectible [277 Ga. 344] as a part of such debt if such note or other evidence of indebtedness is collected by or through an attorney after
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RES–GA SCL, LLC. v. Stonecrest Land, LLC, Nos. A15A0458
...to deny fees under section 13–1–11 when all the conditions of that statute are unquestionably satisfied.TermNet Merch. Svcs. v. Phillips, 277 Ga. 342, 344–345(1), 588 S.E.2d 745 (2003) (footnote omitted). (a) Brock contends that the notices set forth above do not comply with the statute bec......
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Patton v. Vanterpool, S17A0767
...it that construction which will effectuate the legislative intent and purpose") (punctuation omitted); TermNet Merchant Svcs. v. Phillips, 277 Ga. 342, 344 (1), 588 S.E.2d 745 (2003) (citing Gen. Elec. Credit Corp. v. Brooks, 242 Ga. 109, 112, 249 S.E.2d 596 (1978) for the proposition that ......
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Fas Capital, LLC v. Carr, Civil Action No. 1:11–cv–3224–JEC.
...(4) the ten day period has expired, and (5) the debt is collected by or through an attorney. TermNet Merch. Serv., Inc. v. Phillips, 277 Ga. 342, 344, 588 S.E.2d 745 (2003). Given the mandatory language of § 13–1–11, the Court does not have discretion to deny attorney's fees when all of its......
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FAS Capital, LLC v. Carr, Civil Action No. 1:11–cv–3224–JEC.
...(4) the ten day period has expired, and (5) the debt is collected by or through an attorney. TermNet Merch. Serv., Inc. v. Phillips, 277 Ga. 342, 344, 588 S.E.2d 745 (2003). Given the mandatory language of § 13–1–11, the Court does not have discretion to deny attorney's fees when all of its......
-
RES–GA SCL, LLC. v. Stonecrest Land, LLC, Nos. A15A0458
...to deny fees under section 13–1–11 when all the conditions of that statute are unquestionably satisfied.TermNet Merch. Svcs. v. Phillips, 277 Ga. 342, 344–345(1), 588 S.E.2d 745 (2003) (footnote omitted). (a) Brock contends that the notices set forth above do not comply with the statute bec......
-
Patton v. Vanterpool, S17A0767
...it that construction which will effectuate the legislative intent and purpose") (punctuation omitted); TermNet Merchant Svcs. v. Phillips, 277 Ga. 342, 344 (1), 588 S.E.2d 745 (2003) (citing Gen. Elec. Credit Corp. v. Brooks, 242 Ga. 109, 112, 249 S.E.2d 596 (1978) for the proposition that ......
-
Fas Capital, LLC v. Carr, Civil Action No. 1:11–cv–3224–JEC.
...(4) the ten day period has expired, and (5) the debt is collected by or through an attorney. TermNet Merch. Serv., Inc. v. Phillips, 277 Ga. 342, 344, 588 S.E.2d 745 (2003). Given the mandatory language of § 13–1–11, the Court does not have discretion to deny attorney's fees when all of its......
-
FAS Capital, LLC v. Carr, Civil Action No. 1:11–cv–3224–JEC.
...(4) the ten day period has expired, and (5) the debt is collected by or through an attorney. TermNet Merch. Serv., Inc. v. Phillips, 277 Ga. 342, 344, 588 S.E.2d 745 (2003). Given the mandatory language of § 13–1–11, the Court does not have discretion to deny attorney's fees when all of its......