Justia Real Estate & Property Law Opinion Summaries

George and Catherine Dickens appealed the City of Statesboro's Zoning Board of Appeals denial of their application to construct a 2,160-square-foot detached garage on their property. The Dickenses then filed a petition for mandamus and damages at superior court to compel the City to issue their building permit. The City moved for summary judgment, which the superior court summarily denied. The trial court issued a certificate of immediate review, and the City applied for interlocutory appeal. Because the Dickenses were required to seek judicial review at superior court by way of a petition for a writ of certiorari rather than a petition for mandamus, the Supreme Court reversed the trial court’s decision and remanded the case back to the trial court for dismissal. View "City of Statesboro v. Dickens" on Justia Law

The Stephens County Board of Commissioners decided to abandon a 3,000-foot-long, dead-end county road that ran along the side of a mountain and served no existing homes or businesses. Owners of some undeveloped lots on the Road and others sued the Board, and the trial court set aside the decision. Based on that ruling, the court issued a writ of mandamus requiring the Board to repair and maintain the Road. The court also ordered the Board to pay attorney fees and later granted summary judgment against the Board on its counterclaims. The Board appealed. Upon review, the Supreme Court concluded that the trial court failed to give proper deference to the Board's decision to abandon the Road and reversed the trial court's decisions. View "Scarborough v. Hunter" on Justia Law

Appellant Alstep, Inc. obtained a multimillion dollar loan from Appellee State Bank and Trust Company (SB&T) for the purchase of a sandwich shop, gas station and liquor store. Alstep fell behind on loan payments, and the Bank conducted a non-judicial foreclosure. SB&T was the highest bidder at the sale, and applied the proceeds of that sale to Alstep's loan balance. There was still a deficit. The Bank demanded immediate possession of the property, but Alstep refused. Despite receiving notice of a temporary restraining order, Alstep continued to operate the gas station and otherwise make use of the property. SB&T filed and served Alstep with an emergency motion for appointment of a receiver. SB&T cited three grounds in support of its motion: (1) that Alstep converted rent from the property's tenant (the sandwich shop) that should have gone to SB&T; (2) that Alstep was depleting the property that served as collateral for its debt; and (3) that SB&T needed to take control of the property to guard against its potential liability under state and federal environmental regulations as the owner of the gas station. Appellant never filed a response to the motion, but ultimately challenged the trial court's appointment of a receiver. The Supreme Court held that the trial court had broad discretion in deciding whether to appoint a receiver, and found no abuse of that discretion. View "Alstep, Inc. v. State Bank & Trust Co." on Justia Law

The trial court in this case ruled that there was no conflict between the 2010 amendment to OCGA 48-5-2 (3) and a 1981 local constitutional amendment providing for the assessment of homestead property in Muscogee County for school and consolidated city-county government taxing purposes. The court further ruled that the 2010 amendment controlled the determination of the fair market value of appellee John Yeoman's recently-purchased homestead property. The Columbus Board of Tax Assessors appeals, but finding no error in the trial court's judgment, the Supreme Court affirmed. View "Columbus Board of Tax Assessors v. Yeoman" on Justia Law

The United States District Court for the Northern District of Georgia certified three questions regarding the operation of the State's law governing non-judicial foreclosure to the Georgia Supreme Court. After careful analysis, the Georgia Court concluded that current law did not require a party seeking to exercise a power of sale in a deed to secure debt to hold, in addition to the deed, the promissory note evidencing the underlying debt. The Court also concluded that the plain language of the State statute governing notice to the debtor (OCGA 44-14-162.2), required only that the notice identify "the individual or entity [with] full authority to negotiate, amend, and modify all terms of the mortgage with the debtor." This construction of OCGA 44-14-162.2 rendered moot the third and final certified question. View "You v. JP Morgan Chase Bank, N.A." on Justia Law

This appeal arose from appellee Bank of America, N.A.'s attempts to enforce the terms of the promissory note and deed to secure debt executed in its favor by appellant Johnta M. Austin ("Borrower"). The Bank sued to collect the debt it claimed the Borrower owed as a result of default, including attorney fees, and the trial court awarded the Bank summary judgment. The issue came on appeal to the Georgia Supreme Court because the constitutionality of the statute at issue was called into question. The Court has long held that "all presumptions are in favor of the constitutionality of an act of the legislature and that before an [a]ct of the legislature can be declared unconstitutional, the conflict between it and the fundamental law must be clear and palpable and [the] Court must be clearly satisfied of its unconstitutionality." The Court found that the statute in this case bore a rational relation to the purpose for which the statute was intended, namely to provide debtors with the opportunity to avoid the contractual obligation to pay the creditor’s attorney fees by allowing the debtor a last chance to pay the balance of the debt and avoid litigation. Further, the Court concluded that the application of OCGA 13-1-11 to arrive at the amount of the award of attorney fees in this case was neither punitive nor violative of Borrowers’ due process rights, nor was the award contrary to the intent of the statute. View "Austin v. Bank of America N.A." on Justia Law

In 2007, Appellant Derick Villanueva acted as the closing attorney for a mortgage-refinance transaction in which Homecomings Financial, LLC served as the lender supplying funds to pay off earlier mortgages on the secured property. Appellee First American Title Insurance Company issued title insurance on the transaction. Pursuant to Villanueva’s instructions, Homecomings wired funds into a specified escrow account. However, the funds were not used to pay off the earlier mortgages; instead, the funds were withdrawn and the account closed by a person not a lawyer. First American paid off the earlier mortgages and, pursuant to its closing protection letter to Homecomings, became "subrogated to all rights and remedies [Homecomings] would have had against any person or property…." First American then filed this lawsuit against appellants, the estate of another attorney, the escrow account, the non-lawyer who withdrew the funds from the escrow account, and others, seeking damages for legal malpractice and breach of a contract with Homecomings. The trial court denied summary judgment to appellants. The issue before the Supreme Court was whether a legal malpractice claims were not per se unassignable. After studying the issue, the Court agreed with the appellate court that legal malpractice claims are not per se unassignable. View "Villanueva v. First American Title Ins. Co." on Justia Law

In 1999, a jury awarded monetary damages and equitable relief to homeowner Kenneth Barngrover. The damages were paid to the trial court's registry shortly after entry of judgment on the verdict, and the Court of Appeals affirmed the judgment in favor of Barngrover in 2001. In its 1999 judgment, the trial court ordered the City of Columbus to abate all nuisances created, maintained and in existence on Barngrover's property, and directed the City to restore the property to its undamaged condition. The trial court expressly retained jurisdiction pursuant to its equitable power to ensure completion of this equitable remedy. A week later, the trial court issued an order clarifying the nuisances to be abated as only those identified by the jury in its verdict. After several years of entering various orders in an effort to provide the equitable relief required by the jury's verdict, the trial court appointed a special master in 2007 to enforce the 1999 judgment. In 2011, the special master concluded that the structures on Barngrover's property were beyond repair, and recommended new ones be built. Further, the special master recommended implementation of the last of the City's abatement plans. Barngrover filed objections to the special master's report and moved to replace the special master. Over his objections, the trial court adopted the special master's report. This appeal to the Supreme Court followed. Upon review, the Supreme Court found no error with the trial court's orders, and affirmed. View "Barngrover v. City of Columbus" on Justia Law

The Unified Government of Athens-Clarke County adopted a Stormwater Utility Ordinance in 2004. Pursuant to the Ordinance, a stormwater utility and stormwater enterprise fund took effect in 2005, and landowners were required to pay certain fees based on their estimated relative contribution to stormwater runoff problems. Despite Unified Government sending Homewood Village, LLC a quarterly stormwater utility bill, Homewood Village did not pay any of their bills since the inception of the program. In 2010, Unified Government sued Homewood Village to recover, among other things, the unpaid fees. In 2011, Homewood Village filed a counterclaim for declaratory judgment, arguing that the Ordinance was an unconstitutional tax which could not be assessed involuntarily. The Superior Court granted Homewood Village's motion for partial summary on its contentions that : (1) Unified Government could not collect unpaid fees under a theory of unpaid account; and (2) Unified Government had not established any of the elements necessary to establish a claim for quantum meruit. In Case No. S12A1836, Homewood Village appealed the trial court's ruling that the Unified Government was authorized to collect stormwater fees from Homewood Village pursuant to its Ordinance, and in Case No. S12X1837 the Unified Government appealed the trial court's rulings in favor of Homewood Village on the issues of unpaid account and quantum meruit. In Case No. S12A1836, the Supreme Court affirmed the trial court's conclusion that the Ordinance imposed a permissible fee and properly granted summary judgment to the Unified Government on its claim to collect the unpaid fees. The Court vacated the judgment in Case No. S12X1837 in light of the trial court's correct decision to grant summary judgment to the Unified Government, Homewood Village's argument relating to quantum meruit or open account was rendered moot. View "Homewood Village, LLC v. Unified Government of Athens-Clarke County" on Justia Law

In 2006, debtor Denise Codrington executed a security deed with appellant Wells Fargo that was recorded with the Clerk of the Superior Court of Fulton County on October 13, 2006. The deed provided: "[i]f one or more riders are executed by Borrower and recorded together with this Security Instrument, the covenants of each such rider shall be incorporated into ...this Security Instrument as if the rider(s) were a part of this Security Instrument." The security deed specifically identified the "ARM Rider" as being incorporated. The last page of the deed was signed by the debtor, the co-debtor (Alvina Codrington), and a notary, but the signature line for an "Unofficial Witness" was left blank. Contemporaneously recorded with the security deed were a number of other exhibits, including a "Waiver of Borrower's Rights." The waiver provided that "the provisions hereof are incorporated into and made a part of the security deed." The parties agreed that the waiver was signed by the debtor, the co-debtor, an unofficial witness, and a notary. In June 2008, the debtor filed for Chapter 7 bankruptcy. Appellee Neil Gordon, Trustee for the debtor's bankruptcy estate, commenced an adversary proceeding against Wells Fargo seeking to avoid Wells Fargo's interest in the property. Appellee asserted that because the security deed lacked the signature of an unofficial witness, it was not duly recorded and it did not provide constructive notice to a subsequent bona fide purchaser, rendering the security deed avoidable per 11 U.S.C. 544. Wells Fargo moved for summary judgment, the bankruptcy court denied the motion, and the bankruptcy court entered judgment in favor of appellee. Wells Fargo appealed to the Eleventh Circuit Court of Appeals which certified two questions to the Georgia Supreme Court: (1) whether a security deed that lacks the signature of an unofficial witness should be considered "duly filed, recorded, and indexed" as required by OCGA 44-14-33; and (2) if no, whether such a situation would nonetheless put a subsequent hypothetical bona fide purchaser on inquiry notice. Upon review, the Supreme Court answered both certified questions in the negative. View "Wells Fargo Bank, N.A. v. Gordon" on Justia Law