Ferguson v. Atlantic Land & Development Corp.

279 S.E.2d 470, 158 Ga. App. 33, 1981 Ga. App. LEXIS 2059
CourtCourt of Appeals of Georgia
DecidedMarch 17, 1981
Docket61167; 61296
StatusPublished
Cited by3 cases

This text of 279 S.E.2d 470 (Ferguson v. Atlantic Land & Development Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ferguson v. Atlantic Land & Development Corp., 279 S.E.2d 470, 158 Ga. App. 33, 1981 Ga. App. LEXIS 2059 (Ga. Ct. App. 1981).

Opinion

McMurray, Presiding Judge.

These appeals involve further litigation by and between the parties which has not been settled by two previous appeals. See Ferguson v. Golf Course Consultants, 243 Ga. 112 (252 SE2d 907), and Ferguson v. Bishop, 150 Ga. App. 469 (258 SE2d 143). Reference is here made to these two cases for a full understanding of the facts involved. However, we add the following:

Ferguson and Ullman had an oral joint venture relative to real [34]*34property involved in these cases. Ferguson had bought the land in his own name from one of Ullman’s many corporations to help Ullman avoid foreclosure. They orally agreed for another Ullman corporation to then develop the land, for Ullman to find a buyer, and for the proceeds to be divided between Ferguson and Ullman when Ullman found a buyer. A buyer was found. Without first consulting with Ferguson, Ullman signed Ferguson’s name on a warranty deed transferring the property from Ferguson as grantor to the corporation, Golf Course Consultants, Inc. Ralph A. Wade served as treasurer of Golf Course Consultants, Inc. Joyce E. Kitchens was a de facto employee of Golf Course Consultants, Inc., although paid by another corporation; but she performed services for both corporations. The warranty deed, which caused all the trouble, was undated but was duly witnessed by Ullman and Wade and notarized by Kitchens. Wade contends that the warranty deed was undated and unsigned by the grantor when he witnessed it as a convenience, being under the impression that Ullman would then take it to Ferguson to obtain his signature. Thereafter it was returned to him by Ullman with Ferguson’s signature (a forgery) thereon, and he (Wade) had it properly recorded. He contends that he had no knowledge of any forgery as to Ferguson’s deed at the time he signed as a witness, admitting, however, it was undated and unsigned.

Certain improvements were made to the property by the corporation, and part of it was thereafter sold to Atlantic Land & Development Corp. (hereinafter referred to as “Atlantic”), a bona fide purchaser for value of part of the property here involved (a total of 40 lots).

When Ferguson was notified about the sale he expressed no dissatisfaction but was glad to hear about the sale and received a check representing part of the proceeds of the sale. Later, however, Ferguson wanted Ullman to pay him additional sums in return for his not raising any issue as to his signature by Ullman. When Ullman refused, Ferguson proceeded to sue in equity to quiet title. A number of parties were involved as defendants. See Ferguson v. Golf Course Consultants, 243 Ga. 112, supra.

Ferguson also filed another action against a number of defendants, including those in the first suit as well as others, alleging that they individually and jointly acted to defraud him by forging his name to the deed purporting to transfer the property from him to Golf Course Consultants, Inc. See Ferguson v. Bishop, 150 Ga. App. 469, supra. Ferguson therein sought damages and to cancel defendant Atlantic’s deed to the property. By amendment the allegations of fraud against the defendants were changed to allegations of negligence and forgery and for damages against all concerned.

[35]*35When Atlantic closed the purchase of the 40 lots it had borrowed $116,500 from a bank. Defendant Atlantic in its answer to the quiet title suit, counterclaimed for title to be decreed in it. In its answer filed to the other suit it filed a counterclaim against Ferguson and cross claims against Ullman, Golf Course Consultants, Inc., Wade, Kitchens, and others, seeking damages for the various costs and expenses incurred by it by reason of the filing of the actions against it.

With reference to the main actions summary judgment was granted in favor of the defendants against the plaintiff Ferguson. The summary judgment was affirmed as to the petition to quiet title in Ferguson v. Golf Course Consultants, Inc., 243 Ga. 112, supra, by reason of Ferguson having knowingly consented to the sale in return for the financial benefits he received, the same being a ratification of his signature by Ullman on the deed. As to the second action filed by Ferguson, summary judgment was also granted to the various other defendants. Ah appeal to this court was transferred to the Supreme Court (action involving cancellation of a deed), and thereafter retransferred back to this court. This court affirmed the summary judgment as to the damage suit by reason of the fact that the forgery was the same and evidence on that issue identical, as the plaintiff Ferguson had ratified the placing of his signature on the deed. See Ferguson v. Bishop, 150 Ga. App. 469, 472, supra.

Summary judgment in favor of Atlantic, as to the plaintiff Ferguson’s claim in the two cases, became final after the appeal. The defendant Atlantic then amended its original answer, counterclaim and cross claims in the second suit, seeking to recover damages it had incurred from the plaintiff as well as the fraud of the co-defendants Ullman, Wade, Kitchens, and Golf Course Consultants, Inc. In Count 1 of its counterclaim against the plaintiff Ferguson it alleged fraudulent misconduct of the plaintiff as well as the fraudulent misconduct of the co-defendants, Ullman, Wade, Kitchens, and Golf Course Consultants, Inc., as imputable to the plaintiff Ferguson, seeking actual and punitive damages arising out of the wilful fraud. Count 2, added to the counterclaim, alleged that the main actions terminated in its favor by reason of the affirmance of summary judgment on appeal, and it sought damages as constituting a malicious use and abuse of process by reason of the plaintiffs actions as being guilty of wilful, malicious, fraudulent, wanton, and oppressive misconduct in total disregard of the rights of the defendant, Atlantic. In Count 3, added by amendment, this defendant sought to recover against plaintiff Ferguson on the theory of libel and slander of its title as being wilful, malicious, and fraudulent misconduct by the plaintiff in total disregard of the rights of the defendant. It also amended its cross claims against the various [36]*36co-defendants seeking injunctive relief with reference to transferring, encumbering, selling, conveying or otherwise disposing of other property and again sought damages, actual and punitive, and attorney fees by reason of the execution of the fraudulent deed which created a cloud upon its title and the actual damages it incurred.

Summary judgment was granted to Atlantic on its cross claims and counterclaim for actual dámages in the amount of $55,398.25, which represented charges and payments it was required to make during the litigation involved; such as interest, holding fees, building permits and increased cost of sewer tap-ins. In these two cases only the defendant Wade and the plaintiff Ferguson appeal. Held:

1. Generally, in this state, the defendant cannot by counterclaim bring an action for damages against the plaintiff for having filed and prosecuted the very action in which the defendant asserts the counterclaim. See Ellis v. Millen Hotel, 192 Ga. 66, 69 (2) (14 SE2d 565); Ga. Veneer & Package Co. v. Fla. Nat. Bank, 198 Ga. 591, 609 (2) (32 SE2d 465); Alexander v. C. & S. Nat. Bank, 212 Ga. 295, 296 (4) (92 SE2d 16); Ga. Ed. Auth. v. Davis, 227 Ga. 36, 40 (178 SE2d 853); Overstreet v. Schulman, 77 Ga. App. 320 (1), 322 (48 SE2d 474); Medoc Corp. v. Keel, 152 Ga. App. 684, 685-688 (2) (263 SE2d 543).

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Related

Walsh v. Hibernia National Bank
288 S.E.2d 29 (Court of Appeals of Georgia, 1981)
Ferguson v. Atlantic Land & Development Corp.
285 S.E.2d 778 (Court of Appeals of Georgia, 1981)
Ferguson v. Atlantic Land & Development Corp.
281 S.E.2d 545 (Supreme Court of Georgia, 1981)

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Bluebook (online)
279 S.E.2d 470, 158 Ga. App. 33, 1981 Ga. App. LEXIS 2059, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ferguson-v-atlantic-land-development-corp-gactapp-1981.