Case Summary: Efficiency Lodge, Inc. v. Neason, 319 Ga. 455 (2023)
April 9, 2025
Today we are looking at the case of Efficiency Lodge, Inc. v. Neason, 319 Ga. 455 (2023). The plaintiff in this case is Efficiency Lodge, Inc., an extended-stay motel operator. The defendants are several individuals who had been living in the motel and fell behind on their rent.
The case arose when the motel sought to evict the occupants without going through Georgia’s formal dispossessory process, arguing that they were merely “guests” rather than tenants, as stated in their rental agreements. The occupants contended that they were tenants under Georgia law and could not be removed without proper court proceedings. The trial court sided with the occupants, and the Court of Appeals affirmed. However, the Georgia Supreme Court vacated the Court of Appeals’ decision and remanded the case, instructing the trial court to consider the totality of the circumstances—including the parties’ conduct and expectations—to determine whether a landlord-tenant relationship existed, regardless of how the agreement labeled them.
Operators of extended-stay motels and similar businesses should not rely solely on contract language to define guest status. If residents appear to have the characteristics of tenants, courts may require formal eviction proceedings before removal.