Justia Georgia Supreme Court Opinion Summaries

Articles Posted in Real Estate & Property Law
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This case involved a dispute over title to a 7.63 acre parcel of land located in Bacon County. The parcel was originally part of a 95-acre parcel owned by H.S. Carter that was taken by Bacon County via eminent domain proceedings commenced in 1973. As a result of the condemnation proceedings, Bacon County acquired over 2500 acres for creating a public recreation project known as Lake Alma and the Carter parcel was just one of the parcels condemned for that purpose. The proposed Lake Alma was part of a larger urban development project so that the City of Alma and Bacon County could execute a development plan that included, among other things, an industrial park, a waste water treatment plant, and improvement of the local airport, in addition to construction of Lake Alma. The other projects were completed but the Lake Alma project was abandoned and never constructed. After the project was abandoned, at the request of the city and county, the General Assembly passed an amendment to OCGA 36-9-3 that permitted counties to sell back to the original owners land that had been acquired for development, but the legislation failed to provide for repurchase of land by the heirs of the original owners. By that time, H.S. Carter was deceased and his original parcel was one of the only parcels condemned for construction that was not repurchased by the original owner. In 2010, OCGA 36-9-3 was amended again to grant the heirs of the original landowners the right to repurchase the land. Heirs of H. S. Carter sought to repurchase the original 95-acre parcel. The City of Alma executed a quit claim deed to Bacon County conveying its undivided interest in the 95 acres and, that same day, Bacon County executed a quit claim deed conveying all of its undivided interest in the property to the heirs. The heirs then filed a petition to quiet title and for ejectment against Darling and Southeastern Maintenance with respect to the 7.63 acres. Darling asserted it was entitled to summary judgment with respect to the quiet title and claim for ejection because, as a result of the county’s previous conveyance of the disputed property to the Development Authority and the subsequent chain of conveyances by which Darling ultimately obtained title, the heirs did not have title to that property. Without addressing Darling’s bona fide purchaser argument, the trial court entered judgment in favor of the heirs along with a decree that title to the property vested in them and was superior to Darling’s claim of title. Upon review of the matter, the Supreme Court concluded the trial court erred in concluding that the heirs’ title was superior to that of Darling’s as a result of Bacon County’s failure to comply with the requirements of OCGA 36-9-2 with respect to a 2003 conveyance of its interest in the property to the Bacon County Development Authority. Furthermore, the trial court erred in finding the 2003 conveyance to Southeastern Maintenance was invalid as a result of the governing authorities’ failure to formulate a new economic development plan. The trial court’s order granting summary judgment to the Carter heirs was reversed and the decree establishing title was vacated. View "Darling International, Inc. v Carter" on Justia Law

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Mary Jane Nelson and other litigants appealed a trial court's order granting summary judgment to the Georgia Sheriffs Youth Homes and other entities in a quiet title action. In their sole contention of error in this appeal, Nelson argued the trial court erred in granting summary judgment without the final report of the special master being filed. As the Georgia Supreme Court has recognized, "[i]f no demand for a jury trial is filed prior to the time he hears the case, the special master is the arbiter of law and fact and decides all issues in the case." And, as in this case, there was a demand for a jury trial filed before the special master holds a hearing, the trial court had jurisdiction to proceed to trial. The fact that a demand for a jury trial was filed pursuant to OCGA 23-3-66 does not mean that the trial court cannot grant summary judgment when warranted. Accordingly, Nelsons did not show an error in the trial court's grant of summary judgment. View "Nelson v. Georgia Sheriffs Youth Homes, Inc." on Justia Law

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This case stemmed from an effort by Mortgage Alliance Corporation (“MAC”) a residential subdivision called "Silverstone." In August 2008, MAC sued the county and various county officials alleging, among other things, that an August 2006 letter to MAC from the county's sole commissioner, which said that the county's position was that any proposal to develop MAC's property as a subdivision would need to comply with a recent amendment to the county's land use ordinances, resulted in a taking of MAC's property without just compensation. The trial court granted summary judgment to the defendants on the ground that MAC's complaint was untimely. The Court of Appeals affirmed, and the Supreme Court granted MAC's petition for certiorari. Upon review, the Supreme Court concluded that this case was resolved on the ground that the August 2006 Letter was not a “decision” within the meaning of the applicable statute, and the county never made a final decision on MAC's Silverstone proposal. Consequently, MAC's inverse condemnation claim never ripened for judicial review, and the trial court should have granted summary judgment to the defendants on this ground. Although the trial court and the Court of Appeals erred in concluding there was an appealable decision, they reached the right result, and therefore the Court affirmed the appellate court's judgment. View "Mortgage Alliance Corp. v. Pickens County" on Justia Law

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Stephen and Elizabeth Schultz contracted with Benchmark Builders, Inc. for the construction of a home. The Schultzes refused to close because they claimed the home was not built in conformance with the contract and Benchmark sued for specific performance or, in the alternative, for money damages for breach of contract. The Schultzes answered and filed a counterclaim for breach of contract seeking money damages for the return of earnest money they had paid and also for the value of certain fixtures they purchased and that had been installed in the home. They also sought attorney fees resulting from the alleged breach. The jury returned a verdict form that found for the Schultzes both as to Benchmark's claim and the Schultzes' counterclaim. The jury awarded the Schultzes zero dollars on the claim for light fixtures, zero dollars for return of the earnest money, and $16,555 on the claim for attorney fees. The Court of Appeals held the Schultzes were entitled, as the “prevailing party” to the award of attorney fees pursuant to the parties' contract and thus affirmed the award. The issue before the Supreme Court on appeal was whether the Court of Appeals erred in finding that the parties' contract allowed for an award of attorney fees to a party that recovered no money damages or other relief that it sought. Under the terms of the contract, the fact that the jury did not award actual damages did not mean the Schultzes could not be deemed the prevailing party to the lawsuit. The Supreme Court affirmed the appellate court's decision. View "Benchmark Builders, Inc. v. Schultz" on Justia Law

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In a foreclosure action, the trial court granted partial summary judgment to bankruptcy trustee J. Coleman Tidwell against National City Mortgage Company. Addressing its jurisdiction sua sponte, the Court of Appeals dismissed the appeal on the grounds that PNC Bank, N.A. was not a party to the foreclosure and therefore lacked standing to appeal the order entered against National City. The Supreme Court granted certiorari to consider whether the Court of Appeals correctly held that PNC Bank lacked standing to appeal on behalf of its predecessor National City Mortgage Company. Because the Court of Appeals erred in concluding that the appeal must be dismissed due to the trial court's failure to substitute or join PNC Bank as a party under OCGA 9-11-25 (c), the Court reversed and remanded the case for the Court of Appeals to address issues raised in this appeal. View "National City Mortgage Co. v. Tidwell " on Justia Law

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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

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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

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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

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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

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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