CS-Lakeview at Gwinnett v. Simon Property Group

659 S.E.2d 359 (2008)

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CS-Lakeview at Gwinnett v. Simon Property Group

Georgia Supreme Court
659 S.E.2d 359 (2008)

Facts

CS-Lakeview at Gwinnett, Inc. and related entities (collectively, CS) (collectively, plaintiffs) entered into a settlement agreement with Simon Property Group, Inc. (Simon) (defendant) and others to resolve a complex, multiparty dispute regarding certain assets of a joint venture in which CS and Simon participated. Per the settlement, Simon received certain property in Georgia (property), but the agreement, which contained a choice-of-law clause selecting Delaware law, gave CS a right of first refusal to purchase the property. After Simon sold the property to a third party, CS sued Simon for violating CS’s first-refusal rights. The trial court granted summary judgment to Simon, ruling that the first-refusal clause was invalid under Delaware’s rule against perpetuities. The court of appeals affirmed. CS appealed, arguing that Georgia courts should reform the settlement agreement to correct the parties’ alleged mutual mistake of law by selecting Delaware law. Accordingly, CS argued that Georgia courts should apply Georgia law, under which the first-refusal clause was valid.

Rule of Law

Issue

Holding and Reasoning (Carley, J.)

Dissent (Sears, C.J.)

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