Greene County School Districtv.Circle Y Construction, Inc.
Greene County School District contracted with Circle Y Construction for construction-management services under a contract with no termination date. After the District terminated the agreement, Circle Y sued for breach of contract. The District argued that the contract was void as an illegal multi-year obligation because it lacked provisions required by OCGA § 20-2-506(b). The trial court denied dismissal, and the Court of Appeals affirmed on alternative grounds. The Georgia Supreme Court held that the Court of Appeals did not need to construe the statute's proprietary-function exception. Circle Y's complaint alleged that the projects were approved by Greene County voters through an educational local option sales tax, and those allegations, taken as true at the dismissal stage, established that the contract was not void as a matter of law for lack of voter approval. The Supreme Court therefore affirmed the denial of dismissal but vacated the portion of the Court of Appeals opinion construing OCGA § 20-2-506(h). It remanded with direction. Justice Nahmias concurred in the judgment only.
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