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ADI Fin. Servs. Inc. v. City of Atlanta

Nothing in the parties' agreement for recovery auditor services required the city to pursue collection of past due revenue.

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ADI Financial Services, Inc. appeals from the trial court’s order granting summary judgment to the City of Atlanta in this contract action. We affirm for the reasons set forth below. On or about June 13, 2007, ADI entered into a one-year contract, entitled “City Contract Agreement for FC-6006007918, Audit of Duplicate Payments” the “Agreement”. Under the Agreement, ADI agreed to provide “recovery auditor services,” which involved reviewing “accounts payable vendor files to identify duplicate payments” made by the City. In return, the City agreed to pay ADI 20 percent of all identified “duplicate payments” returned to the City. The Agreement provided that “further service under this Agreement, if desired, will require an amendment to this Agreement and the allocations of additional funds by the City.”1 Additionally, the City could make changes “within the general scope of the Agreement,” but “if any changes cause an increase or decrease in “ADI’s cost of performing any part of the Services . . . then a written amendment to the Agreement reflecting that change will be negotiated and entered into between the City and ADI.”

At the end of the first year, the Agreement was subject to a one-year renewal option at “the sole discretion of the City.” And the City had the right to terminate the Agreement “for its convenience” at any time upon 30 days written notice. The City also had the right to terminate in the event of ADI’s default. The Agreement further provided that “if this Agreement is so terminated, ADI shall be paid for Services satisfactorily completed.”

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