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Common Cause/Ga. v. City of Atlanta

City taxpayers cannot bring a derivative action against the city's former mayor on behalf of the city.

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This Court granted certiorari to the Court of Appeals in Common Cause/Georgia v. Campbell , 268 Ga. App. 599 602 SE2d 333 2004, to determine if the Court of Appeals erred in affirming the trial court’s dismissal of the complaint for failure to state a claim upon which relief could be granted. Finding that the dismissal was proper, we affirm. In 1999, the City of Atlanta “City” opened bidding for a five-year contract to manage parking lots at then Hartsfield Atlanta International Airport. Parking Company of America “PCOA”, which was already managing airport parking under an existing contract, submitted the low bid of $465,000 per year; its existing contract was for $697,000 per year. On November 20, 2000, the City passed a resolution that “an appropriate agreement” be entered into with PCOA described as “the recommended operator”, and directed that the Director of the Bureau of Purchasing and Real Estate prepare such an agreement, which was to be approved as to form by the City Attorney and executed by the Mayor. The resolution specifically stated that the agreement would not be binding on the City until executed by the Mayor and delivered to PCOA. Mayor Campbell, however, did not sign a new contract until January 8, 2002. In the interim, PCOA was paid at the higher rate under the existing contract, and received approximately $300,000 more than it would have under the new rate.

Common Cause and Elizabeth Hale Barnett collectively “Common Cause” brought suit on behalf of the City and its taxpayers seeking a judgment against Campbell individually for the approximately $300,000. Campbell moved to dismiss the suit pursuant to OCGA § 9-11-12 b 6.1 The trial court granted the motion and the Court of Appeals affirmed. Further facts can be found in the opinion of the Court of Appeals. See Common Cause/Georgia , supra.

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