BLACKBURN, Senior Appellate Judge.
This case involves a "corporate divorce" between appellants Mirko Di Giacomantonio and Rosa, Inc. and appellees Sandro Romagnoli, The Emilio Civeli Group, Inc., Irven Penn, L.J. Hooker Corporation (Worldwide), Inc., and IB Penn, Ltd. Giacomantonio and Rosa appeal from two different orders entered by the trial court. The first order granted summary judgment in favor of appellees on Giacomantonio and Rosa's tort claims against them, based on the trial court's finding that the involuntary withdrawal provisions contained in the contracts at issue were enforceable against Giacomantonio and Rosa. The second order entered
On appeal, Giacomantonio and Rosa claim that the trial court erred: (1) in denying their motion for a temporary injunction granting Giacomantonio 50 percent of the voting rights in the companies he co-owned with Romagnoli and Penn or alternatively, to appoint a receiver to manage those companies and conduct an accounting; (2) in holding that because the involuntary withdrawal provisions were enforceable against Giacomantonio, he was precluded from asserting tort claims for fraud and breach of fiduciary duty; and (3) in failing to award Giacomantonio and Rosa a one-time lump sum payment, rather than allowing that sum to be paid out over a ten-year period. Discerning no error, we affirm.
The grant or denial of a motion seeking either a temporary injunction or the appointment of a receiver will not be interfered with by this Court in the absence of a manifest abuse of discretion. Cherokee County v. City of Holly Springs
The undisputed record shows that Giacomantonio and Romagnoli
During 2003, Giacomantonio began divorce proceedings from his first wife. He was represented during that divorce by a succession of attorneys, not including Penn. He often consulted with his attorneys and with Penn and Romagnoli about the issue of his wife's potential interest in the three companies. He eventually agreed that his financial situation justified his being involuntarily withdrawn from the three companies, which precluded his participating as an interest holder in the companies; however, the companies did loan him money to fund his child support and custody-related expenses. He then sold his interests in Companies 2 and 3 to Romagnoli and Penn, who in turn formed additional companies (owned solely by themselves) to run more new restaurants.
With regard to the transactional documents effecting his withdrawal and loans
The final judgment and decree in Giacomantonio's divorce (entered on February 28, 2005) incorporated a settlement agreement between Giacomantonio and his wife. That agreement provided in relevant part:
In early 2007, the parties restructured the ownership of several restaurants and Companies 2 and 3 so that all the entities were owned by one of three new LLCs. Pursuant to three separate operating agreements executed by Giacomantonio, Romagnoli, and Penn on March 1, 2007, the restaurants became owned by LLC No. 1;
Giacomantonio testified that he paid no money in exchange for his ownership interest in the three new LLCs. He further stated that he received the operating agreements several days before he signed them; that he attempted to read the documents; and that he discussed them with the same attorney that had finalized his divorce settlement. Giacomantonio also testified that Penn had prepared all the documents, that he viewed Penn as his personal attorney, and that he had paid Penn for his legal services, as evidenced by the fact that Penn had received an ownership interest in each of the companies.
In April 2007, Romagnoli and Penn notified Giacomantonio that he had triggered an involuntary withdrawal from the three LLCs. The involuntary withdrawal was premised on the fact that Giacomantonio's divorce decree entitled his ex-wife to part of his ownership interest in LLC Nos. 2 and 3, in that the operating agreements transferred to Giacomantonio an ownership interest in both Companies 2 and 3 only two years after the entry of the divorce judgment.
Giacomantonio then initiated the current action, alleging that the involuntary withdrawal provisions were not enforceable against him because Romagnoli and Penn had fraudulently represented to him that (1) the LLC operating agreements granted him 50 percent of the voting rights in each of three LLCs; and (2) the provision in his divorce decree that would entitle his ex-wife to any part of his ownership interest in Companies 2 and 3 expired two years after it was entered, rather than three. Giacomantonio therefore sought a preliminary injunction granting him a 50 percent voting interest in the new LLCs or, alternatively, the appointment
The trial court denied Giacomantonio's motion for injunctive relief or, alternatively, the appointment of a receiver, finding that Giacomantonio had failed to establish that he had no adequate remedies at law and that he had put forth no evidence of fraud, waste, abuse, or mismanagement of the new LLCs. Romagnoli and Penn thereafter moved for summary judgment, arguing that the involuntary withdrawal provisions were enforceable against Giacomantonio, and that Giacomantonio's 2005 divorce decree constituted an event that triggered the involuntary withdrawal provisions. The trial court entered an order finding that the operating agreements were enforceable against Giacomantonio and granting Romagnoli and Penn summary judgment on that issue. Specifically, the trial court found that the operating agreements were valid and enforceable because Giacomantonio had put forth no evidence to support his claims for "fraud, negligent misrepresentation, breach of fiduciary duty, and conspiracy, all of which if found would void the contracts." At a subsequent hearing, the trial court clarified that its summary judgment order effectively disposed of Giacomantonio's tort claims, because that order found the operating agreements to be valid and enforceable and any claims Giacomantonio had against Romagnoli and Penn would necessarily be based on those contracts.
In its summary judgment order, the trial court further found that the involuntary withdrawal provisions were intended to operate prospectively and therefore had not been triggered by Giacomantonio's earlier divorce decree. The court did not rule on whether any other event had occurred that would trigger the involuntary withdrawal provisions. Shortly before trial on that issue and on the question of what amount would be owed to Giacomantonio in the event of a buyout, the parties agreed to engage in the valuation process provided for in the operating agreements in the event of an involuntary withdrawal. The parties further stipulated that the trial court would retain the authority to determine whether the valuation process conformed to the operating agreements and whether the terms of any payout proposed by Romagnoli and Penn complied with those contracts. Additionally, Giacomantonio retained the right to have a bench trial on the issue of whether an involuntary withdrawal event had actually occurred.
The valuation process set forth in the operating agreements allowed each side to pick an appraiser to valuate Giacomantonio's interest in the LLCs. The contracts further provided that if the two appraisers could not agree, they could select a third, mutually agreed upon appraiser. After the two appraisers selected by the parties could not agree on either the valuation of Giacomantonio's interest or on the selection of a third appraiser, the trial court, at the parties' request, appointed a third appraiser. That appraiser was designated an officer of the court with the power to compel the production of documents and information from the parties. The third appraiser valued Giacomantonio's interest in the new LLCs at $429,893.71, which included the value of $59,763.81 in debts owed by Giacomantonio to the entities. Based on this appraiser's recommendation, the trial court entered an order of final judgment awarding Giacomantonio $370,129.90,
1. In his first enumeration of error, Giacomantonio asserts that the trial court erred in denying his motion for injunctive relief and the appointment of a receiver. The injunctive relief requested would have
Additionally, Giacomantonio's brief concedes that the issue of whether a receiver should be appointed is relevant only if this Court reverses the order of final judgment entered by the trial court. As set forth below, however, we are affirming that judgment. Accordingly, we need not reach the question of whether the trial court erred in denying the receivership motion. Clark v. State
2. Giacomantonio next asserts that the trial court erred in holding that because the operating agreements were valid and enforceable, his tort claims for fraud and breach of fiduciary duty were barred. We disagree.
"In general, a party alleging fraudulent inducement to enter a contract has two options: (1) affirm the contract and sue for damages from the fraud or breach; or (2) promptly rescind the contract and sue in tort for fraud." (Punctuation omitted.) Donchi, supra, 283 Ga.App. at 163(1), 640 S.E.2d 719. Here, Giacomantonio's complaint alleged, inter alia, fraud and breach of fiduciary duty, in addition to breach of contract. It did not, however, include a claim for rescission, and Giacomantonio has never pursued such a claim. Nor has Giacomantonio appealed from the trial court's finding that the operating agreements are valid and enforceable. "It is therefore apparent that [Giacomantonio], elected to affirm the [operating agreements] and seek damages arising from the alleged" torts and contractual breaches of Romagnoli and Penn. Id.
Significantly, the operating agreements each contained a merger clause. "[W]here [an] allegedly defrauded party affirms a contract which contains a merger or disclaimer provision and retains the benefits, he is estopped from asserting that he relied upon the other party's misrepresentation[s] [in entering the agreement] and his action for fraud must fail." (Punctuation omitted.) Ekeledo v. Amporful.
Here, Giacomantonio elected to affirm the contracts and accept the benefits thereof— benefits which included a 47.5 percent ownership in the three new LLCs, for which Giacomantonio paid no money. This affirmance necessarily included an affirmance of the merger clause found in each document. It therefore bars Giacomantonio from asserting a tort claim based upon any pre-contract
3. Nor do we find any merit in Giacomantonio's argument that the trial court erred in allowing his damages award to be paid over a ten-year period, rather than in one lump sum.
At the pre-trial hearing at which the parties agreed to submit to the valuation process provided for in the operating agreements, the parties further stipulated:
(Emphasis supplied.) The pay-out provisions in the operating agreements provided, in relevant part, that a member's withdrawal price could be paid by the companies giving that member a promissory note, with a minimum term of ten years and a maximum term of fifteen years. As this language demonstrates, a pay-out period of ten years was permissible under the terms of the operating agreements. Indeed, it represents the minimum term allowed by those agreements. Having agreed to a pay-out pursuant to those contracts, Giacomantonio cannot argue on appeal that the trial court erred in refusing to violate the operating agreements and award him a lump sum payment. "[I]t is well established that one cannot complain of a judgment, order, or ruling that [his] own procedure or conduct procured or aided in causing, nor can [he] be heard to complain of or question on appeal a judgment which [he] invokes." (Punctuation omitted.) Freese II, Inc. v. Moses.
For the reasons set forth above, we affirm the trial court's denial of Giacomantonio's motion for a temporary injunction or, alternatively, the appointment of a receiver; affirm the trial court's ruling that because the operating agreements were valid and enforceable, Giacomantonio's tort claims based on alleged, pre-contract misrepresentations were barred; and affirm the trial court's order of final judgment.
Judgment affirmed.
BARNES, P.J., and Senior Appellate Judge WILLIAM LeROY McMURRAY, JR., concur.