Shafe v. Am. States Ins. Co.

Shafe v. Am. States Ins. Co.

Opinion

 [*315]   [**872]  Miller, Judge.

James C. Shafe, Sales & Management Training Institute of Atlanta, Inc., and Career Training Concepts, Inc. appeal from a grant of summary judgment entered in favor of their insurer, American States Insurance Company (“American States”), finding that no coverage exists under insurance policies issued to them by American States for certain claims asserted against them. Discerning no error, we affirm.

 [*316]  ] “On appeal from a grant of summary judgment, we conduct a de novo review of the evidence to determine if there exists a genuine issue of material fact and whether the undisputed facts, viewed in the light most favorable to the nonmoving party, entitle the movant to judgment as a matter of law. [Cit.]” Smith v. Atlantic Mut. Cos., 283 Ga. App. 349, 350 (641 SE2d 586) (2007).

So viewed, the evidence shows that Shafe is the chief executive officer of Career Training Concepts, Inc. (“CTC”), a closely held company that produces and sells career guidance materials. CTC is the successor in interest to Sales & Management Training Institute of Atlanta, Inc. (“SMT”), another closely held corporation of which  [***2] Shafe served as chief executive officer. From March 1, 1999 until March 1, 2005, American States insured SMT and CTC under a series of commercial general liability policies (collectively “the Policy”). ¹

In 1987, SMT entered into a written contract with Jeannette Nicholson and Career Assessment Atlanta, Inc. (collectively “Nicholson”) for the development of career assessment tools, including an “Interest Inventory,” to be included in a SMT publication entitled “Career Direction.” The agreement explicitly provided that SMT was to retain ownership rights in all work created thereunder by Nicholson.

In late 1993, SMT reached an oral agreement with Nicholson whereby she would develop a different “Interest Inventory” for inclusion in a new publication entitled “Future Focus.” A dispute later developed between the parties over compensation owed Nicholson for this work, with SMT (and later CTC) claiming that it was covered under the parties' 1987 agreement, and Nicholson claiming that the 1987 contract covered  [***3] only the work created for the Career Direction publication.

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