Bryant v. Randall

261 S.E.2d 400, 244 Ga. 676, 1979 Ga. LEXIS 1378
CourtSupreme Court of Georgia
DecidedOctober 30, 1979
Docket34771, 34772
StatusPublished
Cited by3 cases

This text of 261 S.E.2d 400 (Bryant v. Randall) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bryant v. Randall, 261 S.E.2d 400, 244 Ga. 676, 1979 Ga. LEXIS 1378 (Ga. 1979).

Opinions

Bowles, Justice.

Goble W. Bryant and Philip F. Florence brought suit in the Superior Court of DeKalb County against Charles M. Randall, Silvey Bearden and Jack W. Ellis, by which [677]*677they sought to enjoin the foreclosure of a deed to secure debt, cancellation of the original deed to secure debt and the assignment thereof; damages, both general and punitive; and attorney fees. The complaint was later amended to amplify the claim. Ellis was never served with process. The complaint against Bearden was dismissed.

The case against Randall was tried by the court without a jury, and although the underlying facts are somewhat complicated, most of the essential facts were stipulated by the parties for the purposes of trial. Briefly, the trial court was authorized to find that on June 13, 1969, Silvey Bearden owned 45 acres of land in Forsyth County, Georgia, which she sold to Jack W. Ellis. To secure payment of the balance of the purchase price, Ellis delivered to Bearden his deed to secure debt and promissory note, payable in installments, the last of which was due on June 8, 1974. On June 20, 1969, Ellis sold a one-third undivided interest in the land to plaintiffs Bryant and Florence so that the three of them became tenants in common. On September 24,1973, Ellis, Bryant and Florence conveyed the tract to First Towne Associates, Inc., subject to the indebtedness owed to Bearden, and the purchaser delivered to Ellis, Bryant and Florence three separate promissory notes and a deed to secure debt for the balance of the purchase money. Thereafter, Ellis transferred and assigned his First Towne Associates note to Fulton Exchange Bank as collateral for a personal loan.

Ellis defaulted on this loan from the Fulton Bank. To avoid foreclosure, Bryant and Florence paid the bank and took an assignment of the bank’s interest in that note and deed to secure debt. When Ellis failed to repay Bryant and Florence, they advertised and sold Ellis’ interest in the property under a power of sale contained in the bank’s security deed, bidding in the property at the foreclosure sale in the names of these two.

On September 24, 1973, First Towne conveyed the land to Soncett Properties, Inc., which assumed and agreed to pay the indebtedness owed to Bearden, as first mortgagee, as well as the indebtedness owed to Ellis, Bryant and Florence, as the second mortgagees. Soncett took bare legal title to the land as nominee for the benefit [678]*678of the Forsyth-Shiloh Four Hundred Group, an unincorporated group of investors, commonly called a land syndication, comprised of eleven investors or co-tenants, one of whom was the defendant Randall. It was Soncett’s and the Group’s intention that title should remain vested in Soncett while actual beneficial ownership was to reside in the Group. The eleven members of the Group entered into a written contract entitled "Agreement of Cotenancy” which, among other terms, named Randall as property manager for the Group, making him responsible for handling the Group’s checking account; for receiving funds from the other investors; for depositing the same in the Group’s account; for using these funds to pay any indebtedness encumbering the property, including the first and second mortgages, and all taxes. Pursuant to the property management contract, Randall received rent from the land’s tenant in the amount of $115 per month, or a total sum of $460 between July and October, 1976.

On September 24, 1973, the balance due on the first mortgage was $7,221.33. That same day Randall received from the other ten investors and deposited in the Group’s checking account the sum of $57,000, of which $39,892.50 was paid out by check to the closing attorneys for disbursement in accordance with a settlement statement of even date. Randall disbursed the remaining funds by checks as follows: $1,700 to Jackson and Crosset for their attorney fees for handling the closing and title insurance premium; $400 to Randall for reimbursement of survey expenses; $5,400 to Teate, one of the investors, for his share of the real estate commission; $4,800 to Randall, individually, for his share of the real estate commission; and $4,800 to one Gordon Jackson for his share of the real estate commission. According to the settlement statement pertaining to the conveyance of the land from First Towne to Soncett, a real estate commission totaling $18,000 was to be paid to Atlanta Properties and to Soncett Properties, one-half to each. The $4,800 real estate commission payment to Randall was in partial satisfaction of the $9,000 owed to Atlanta Properties under the settlement statement. On October 30, 1973, after the foregoing disbursements were made the Group’s checking account [679]*679was reduced to $7.50.

In connection with the conveyance of the land from First Towne to Soncett, the latter delivered to Randall a promissory note in the amount of $3,000, which note when added to the $5,400 check to Teate and the two $4,800 checks to Randall and Jackson, respectively, equalled the total real estate commission paid in the transaction.

On May 13, 1974, Randall drew a check on the account of Randall Investment Properties (his trade name) in the amount of $7,566.61 and caused the same to be delivered to Bearden. This check was delivered to Bearden by Teate, who was acting at Randall’s request. Teate caused Bearden to execute a transfer and assignment of Ellis’ deed to secure debt to Randall. The promissory note in connection with that first mortgage was also delivered to Teate by Bearden but was not endorsed. Both documents were delivered by Teate to Randall. The transfer and assignment from Bearden to Randall was not recorded until December 2, 1976.

Each investor’s pro rata share of the first mortgage payment owed to Bearden was calculated and determined by the court to be the total sum of $7,566.61. Randall’s individual part of that obligation came to $378.33. On June 13, 1974, the sum of $7,240.84 was deposited to Randall’s account and the source of this deposit was check No. 10 drawn on the Group’s account by Randall and made payable to himself. On June 8, 1974 the sum of $7,188.28 was deposited in the Group’s account and the source of these funds was the Group’s investors, with the exception of Randall. The $7,566.61, minus Randall’s payment of $378.33, equals $7,188.28. Randall drew check No. 10 payable to himself in the amount of $7,240.84 from the Group’s account, which he deposited into his Randall Investment Properties account.

On July 13,1974, the sum of $8,240.96 was deposited in the Group account and these funds came from the various Group members. Funds from the Group account were used to make the July, 1974 payment on the second mortgage originally held by Ellis, Bryant and Florence. Randall drew three separate checks to these individuals totaling $6,690.24. The July, 1976 installment on the second mortgage has not been paid, though Randall [680]*680received a letter from Bryant setting forth the amounts of the payments due to him and Florence on July 9, 1976. County taxes for 1975 and 1976 have not been paid.

On or about February 2, 1977, Randall initiated foreclosure proceedings under the power of sale contained in the deed to secure debt which he obtained from Bearden. Randall, as property manager and agent for the group knew that the Group was obligated under the agreement of cotenancy to pay the first and second mortgages on the land and pay all taxes levied on the land. As a member of the Group, Randall was aware that the Group might decide to terminate their syndication and abandon their interest in the land.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Realty World-Druid Realty, Inc. v. Hooper Properties, Inc.
383 S.E.2d 164 (Court of Appeals of Georgia, 1989)
Miller & Meier & Associates v. Diedrich
329 S.E.2d 918 (Court of Appeals of Georgia, 1985)
Bryant v. Randall
264 S.E.2d 231 (Supreme Court of Georgia, 1980)

Cite This Page — Counsel Stack

Bluebook (online)
261 S.E.2d 400, 244 Ga. 676, 1979 Ga. LEXIS 1378, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bryant-v-randall-ga-1979.