Justia Georgia Supreme Court Opinion Summaries

Articles Posted in Consumer Law
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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

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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

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Purchasers sued Developers and Brokers, alleging that at the time of their purchases in a 26-story condominium, Developers had already undertaken plans to develop a 46-story building directly across the street. Developers advertised "spectacular city views" from the 26-story condominium and Brokers advised that any future developments to the south of the building would be low to mid-rise office buildings. Purchasers alleged that they paid substantial premiums for their views of the city which was now blocked by the 46-story building. At issue was whether the Court of Appeals erred when it reversed the trial court's grant of judgment on the pleadings on Purchasers' claims for fraud, negligent misrepresentation, negligent supervision and violation of the Georgia's fair business practices statute. The court held that the trial court was correct in finding that Purchasers did not properly elect rescission as a remedy, and the Court of Appeals erred in reversing the decision; the Court of Appeals erred in holding that Purchasers were not bound by the agreements they signed; because there can be no justifiable reliance where Purchasers were bound by their agreements, the Court of Appeals erred in holding that Purchasers' fraud-based claims could proceed; and the trial court correctly found that Purchasers did not sufficiently plead a cause of action against Developers for negligent supervision and the Court of Appeals erred when it reversed the trial court's decision on that count.