A22A1540 Judgment
A22A1540 Judgment
RICKMAN, C. J.,
MILLER, P. J., and PIPKIN, J.
NOT TO BE OFFICIALLY
REPORTED
RICKMAN, Judge.
and Jon and Courtney Wheeler, filed suit against the City of Brookhaven (“the City”),
and John A. Ernst (“the mayor”), Christian M. Sigman (“the city manager”), Linley
Jones, Hyun Jong Park aka John Park, Bates D. Mattison, and Joseph Gebbia (“the
council members”), in their official and individual capacities after Ardent’s effort to
redevelop certain home sites in the City of Brookhaven was unsuccessful. Following
a jury verdict in favor of Ardent and the Wheelers, the defendants1 appeal contending,
inter alia, the trial court erred by finding that the City waived sovereign immunity and
1
The jury found in favor of the council members and they are not parties to this
appeal.
by admitting other acts evidence. For the following reasons, we reverse the judgment
and remand this case for proceedings consistent with this opinion.
We view the facts in the light most favorable to the jury’s verdict. See Maki v.
Real Estate Expert Advisors, 358 Ga. App. 337, 337 (855 SE2d 72) (2021). So
viewed, the record shows that Ardent desired to build a development in the City of
Brookhaven surrounding a dead end street, Bramblewood Drive. At the time Ardent
communities in the place of the single family homes and ultimately was successful
application to the City to allow for townhomes and requested the abandonment of
Bramblewood Drive. Ardent obtained an appraisal for Bramblewood Drive and the
appraiser valued the road at $250,249.00. After submitting the application, the city
manager indicated that the City would like to buy a portion of the properties for a
public safety facility. Despite not knowing the contract price for the properties, the
city manager offered five percent above their contract price for the properties it
2
Thereafter, a city official sent Ardent a letter notifying it that the City had
decided it would not recommend abandoning Bramblewood Drive. The city manager
indicated that despite the City’s recommendation to not abandon the road, the City
would abandon it for $3,000,000. Ardent refused to pay $3,000,000 for the road and
the City responded that it would potentially consider a lower price for the road in
exchange for a different kind of development. Ardent then proposed a new site plan
Ultimately, Ardent and the City could not come to an agreement because the
City wanted Ardent to use a lower income number to qualify for affordable housing
and the City insisted upon a “clawback” provision which would force Ardent to split
the profits with the City for a period of time. Courtney Wheeler, a Bramblewood
home owner who had a contract with Ardent, testified that she moved to Nevada
because of the deal with Ardent and after the deal fell through, she was unable to sell
her house and ultimately incurred lost profits and expenses because she and her
The jury found that the mayor and city manager acted with malice and, together
with the City, tortiously interfered with the business and contractual relationship of
Ardent and the Wheelers, that the City violated Ardent’s right to procedural due
3
process, that the City, the mayor, and the city manager acted in bad faith, were
stubbornly litigous, and/or caused Ardent and the Wheelers unnecessary expense,
entitling them to attorney fees, and that Ardent and the Wheelers were entitled to
punitive damages because the actions of the mayor and the city manager showed
1. The City contends that the trial court erred by finding that the City waived
sovereign immunity.
governmental functions with immunity from civil liability, which only the General
Assembly (or the Constitution itself) may waive.” Atlantic. Specialty Ins. Co. v. City
of Coll. Park, 313 Ga. 294, 299 (2) (869 SE2d 492) (2022). “A municipal corporation
shall not waive its immunity by the purchase of liability insurance, except as provided
in Code Section 33-24-51 or 36-92-2, or unless the policy of insurance issued covers
an occurrence for which the defense of sovereign immunity is available, and then only
The City obtained coverage through the Georgia Interlocal Risk Management
Agency (“GIRMA”) but the declarations section specifically stated that “this
document is not an insurance contract and . . . shall not waive the sovereign immunity
4
of the Member.” Accordingly, under a plain reading of the declarations, the defense
of sovereign immunity would still apply. See Atlantic Specialty Ins. Co., 313 Ga. at
303 (3) (the city did not waive sovereign immunity where its insurance policy
contained an endorsement stating that the policy “does not constitute, nor reflect an
intent by [the city], to waive or forego any defenses of sovereign and governmental
immunity available to any Insured[.]”); Gatto v. City of Statesboro, 353 Ga. App. 178,
183-184 (2) (834 SE2d 623) (2019) (holding that the city did not waive sovereign
immunity when the liability insurance policy contained an endorsement stating that
“[t]his policy and any coverages associated therewith does not constitute, nor reflect
immunity availability to any Insured[.]”). It was Ardent’s burden to prove that the
City waived sovereign immunity and it failed to meet that burden. See Sharma v. City
of Alpharetta, 361 Ga. App. 692, 692-693 (865 SE2d 287) (2021) (“the burden of
proof is on the party seeking the waiver of immunity”). Accordingly, because Ardent
failed to meet its burden to prove that immunity was waived by the City’s purchase
of insurance, we reverse the judgment against the City and its officials in their official
capacity.
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2. The defendants contend that the trial court erred by admitting other acts
however, be admissible for other purposes, including, but not limited to, proof of
OCGA § 24-4-404 (b) was borrowed from the Federal Rules of Evidence and
so, when we have considered the meaning of Rule 404(b), we consistently have
looked for guidance in the decisions of the federal appellate courts construing and
applying Federal Rule of Evidence 404(b). See Olds v. State, 299 Ga. 65, 69 (2) 786
SE2d 633) (2016). Federal Rule of Evidence 404 (b) applies in both civil and criminal
cases. See Huddleston v. United States, 485 U. S. 681, 685 (108 SCt 1496, 99 LE2d
771) (1988); Agushi v. Duerr, 196 F.3d 754, 760 III (7th Cir. 1999) (“Neither the
plain language of Rule 404(b) (“a person”), nor any other consideration, suggests that
a court should distinguish between the criminal and civil contexts when determining
the admissibility of such evidence. In either case, of course, the court should balance
6
the evidence’s probative value under Rule 401 against considerations such as
prejudice, undue waste of time and confusion of the issues under Rule 403.”)
Pursuant to Rule 404 (b), other acts evidence is admissible only if:
(1) the evidence is relevant to an issue in the case other than the
defendant’s character; (2) the probative value of the evidence is not
“substantially outweighed by the danger of unfair prejudice, confusion
of the issues, or misleading the jury or by considerations of undue delay,
waste of time, or needless presentation of cumulative evidence,” OCGA
§ 24-4-403; and (3) there is sufficient proof for a jury to find by a
preponderance of the evidence that the defendant committed the other
act.
Rouzan v. State, 308 Ga. 894, 899 (2) (843 SE2d 814) (2020).
In this case, Ardent sought to introduce evidence of a prior act involving the
City and another property owner. The prior act included allegations that officials with
the City improperly threatened to take property using eminent domain when their
offer to buy the property was not accepted. Ardent’s trial counsel argued in favor of
the admission of the other act under Rule 404 (b), but only cited to cases under
2
“Georgia lawyers do this Court no favors—and risk obtaining reversible
evidence rulings from trial courts—when they fail to recognize that we are all living
in a new evidence world and are required to analyze and apply the new law.” Davis
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When the trial court admitted the evidence, it found that
there are some similarities between the [other act] and this case; there
are some differences as well. I think both partes will have the
opportunity to present to the jury whether or not . . . they are, in fact,
similar. . . . I don’t think it’s my job right now to say, okay, well, there
might be some differences, so to that extent, they shouldn’t come in. I
think that would be left to the jury.
Here, the trial court erred in performing the 404 (b) analysis. “The new
Evidence Code continues Georgia’s existing harmless error doctrine for erroneous
whether it is highly probable that the error did not contribute to the verdict.” (Citation
and punctuation omitted.) Fassnacht v. Moler, 358 Ga. App. 463, 475-76 (2), (855
SE2d 692) (2021). See Rouzan, 308 Ga. at 900 (2) (applying the harmless error
doctrine to the erroneous admission of Rule 404 (b) evidence). “In determining
whether legal error by the trial court was harmless, we review the record de novo and
weigh the evidence as we would expect reasonable jurors to have done so.” Id.
We cannot say that any error in the admission of the other act evidence was
harmless. The jury expressly found that the mayor and city manager acted with malice
v. State, 299 Ga. 180, 192 (3) (787 SE2d 221) (2016).
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when they interfered with the business and contractual relationship with Ardent and
the Wheelers. It would be impossible to say that any admission of evidence that the
mayor and the city manager engaged in potentially similar conduct with another
“The proper course under this Court’s precedents for similar errors is to vacate
the trial court’s judgment and to remand the case to the trial court with direction to
exercise its discretion to determine under the correct OCGA § 24-4-404 (b) test if the
other acts evidence was properly admitted.” Rouzan, 308 Ga. 894 at 901 (2). “If the
trial court decides under the correct test that the other acts evidence was properly
admitted, then the court should reenter the judgment against [the defendants], who
could then take another appeal challenging that ruling.” Id. If, on the other hand, the
court decides that the other acts evidence should have been excluded, then a new trial
Judgment reversed and case remanded with direction. Miller, P. J., and Pipkin,
J., concur.
3
“We do not address the defendants’ other enumerations of error because they
relate to issues that are unlikely to recur in the event of a retrial. The defendants may
raise them again in a renewed appeal if the trial court does not grant [them] a new
trial and reenters the judgment.” Rouzan, 308 Ga. at 901-902 (3).