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Gold Kist Inc. v. Moody

The trial court could not presume that a prior judge followed the law of the case on remand where that judge failed to do so on remand from a prior appeal.

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This is the fifth appearance of this case before this Court.1 Gold Kist is a Georgia agricultural cooperative, and the plaintiffs are former coop members who were under individual egg production contracts until 1989, when Gold Kist assigned the contracts to another company. The underlying issue in this case is whether the plaintiffs were entitled to an immediate payment of all profits Gold Kist made in selling the plaintiffs’ eggs or whether the coop was entitled to retain a portion of the profits as “notified equity,” and actually pay out those profits 20 years later.

The trial court originally ruled that Gold Kist was contractually required to pay out all the profits to the plaintiffs, but this Court reversed in its third opinion in this case, Gold Kist v. Wilson, 227 Ga. App. 848 490 SE2d 466 1997.2 The Court held that the trial court erred in finding that Gold Kist should have paid the full face amount of the notified equity to the plaintiffs. But the Court affirmed the trial court’s holding that the egg production contracts were for personal services, and thus that they could not be assigned without the plaintiffs’ prior consent. Therefore, the plaintiffs were entitled to recover the profits they would have been paid absent the assignment. The case was remanded for further proceedings.

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