Mock v. CANTERBURY REALTY COMPANY

264 S.E.2d 489, 152 Ga. App. 872, 1980 Ga. App. LEXIS 1639
Court of Appeals of Georgia·Decided January 8, 1980·No. 58414·Published·Cited by 40 cases

Opinions

Birdsong, Judge.

Summary judgment. The appellants, Mock and Tam-O-Shanter Properties, Inc. (TOS), undertook to purchase several hundred acres of land divided into separate parcels, most parcels being individually held by separate banks. The banks held title to the land due to deeds in lieu of foreclosure executed by an earlier developer. Each bank held title to a portion of the entire tract equivalent in ratio to that bank’s portion of the entire loan to the original developer. TOS, together with Mock as its principle owner, executed security deeds to the several banks in addition to a minimal cash down payment. Each bank established a schedule of installment payments on the security deeds to be made by TOS based upon the projected sale of lots and houses thereon. TOS and Mock (and Mock’s real estate firm) entered into an agreement with the appellee, Canterbury Realty Co., whereby Canterbury agreed to aggressively promote lots and homes for sale by TOS. Among other financial arrangements, TOS executed four notes to Canterbury. In substance each note reflected TOS’ payment of deferred real estate commissions due Canterbury arising from TOS’ purchase from a bank of that bank’s undivided interest in the whole parcel of real property. Minimum payment on any annual installment due on a Canterbury note was 5% of the cash amounts paid in partial liquidation of the purchase price to the particular bank [873] from whom the land was purchased. In effect the face amount of each promissory note for commissions from TOS to Canterbury was based upon the total purchase price paid by TOS to the selling bank. However, to limit the financial impact upon TOS which was in the process of purchasing a several million dollar development, to be paid to the selling banks over a period of several years from funds generated by the development of the lots and sale of homes thereon, TOS was not obligated to pay Canterbury the entire real estate commission at the outset. Nevertheless, each note called for a sum certain to be paid, this amount being equal to the real estate commission payable for a sale of a particular tract at the full price as if paid in one payment. The installment payments called for in each note were based upon the projection of minimum sales generated by Canterbury during each year of the existence of the note. There was a provision also that TOS could pay partial prepayments on the note, with such partial prepayments credited to the next annual principal payment due. Apparently this provision contemplated that Canterbury might generate more than the minimum sales during any given year. If Canterbury failed to generate the promised sales, TOS also had the right to terminate the exclusive agency granted to Canterbury. Each note however also provided that Canterbury had the right to declare the total amount due and forthwith payable in advance of the maturity date upon the failure of TOS to pay when due any one of the installments. It is uncontested that each of the notes was executed by TOS, remain unpaid, and that demand for payment has been made by Canterbury.

In addition to the four notes executed by TOS, Mock in his individual capacity executed a $5,000 note to Canterbury. This note was prepared on a standard business form entitled "Real Estate Note — Equal Monthly Payments.” However, the note as executed was an unequivocal promise by Mock to pay to Canterbury the sum of $5,000. The face of the form note provided blanks for stating a rate of interest and a number of monthly installments, in amounts and frequency to be inserted. These spaces were not filled in on the face of the note. The form note also provided a blank to insert the place at [874] which principal and interest might be paid as well as provisions for a security deed. Neither were these blanks filled. In substance then the note provided only that Mock would pay Canterbury the sum of $5,000.

Canterbury filed suit against several defendants, including Mock as an individual and TOS as a corporate defendant. In its complaint Canterbury sought to recover the $5,000 from Mock on the individuad note and a sum of $44,863.12 from TOS based upon the four notes signed by TOS in favor of Canterbury, in addition to certain other claims. Mock and TOS filed an answer denying the indebtedness and filed a counterclaim. The counterclaim asserted that Canterbury had "meddled” in the affairs of TOS to the extent that major lenders had refused to continue to make advances to TOS requiring TOS to execute deeds back to the lenders in lieu of foreclosure. TOS sought in excess of $1,000,000 as punitive damages as a deterrence to Canterbury. The trial court granted summary judgment to Canterbury as to the note executed by Mock and as to the four notes executed by TOS, but did not mention or otherwise dispose of the remaining counts of the complaint or the counterclaim. The court entered final judgment on the notes in the amount claimed. The briefs reflect that Canterbury has sought a fi. fa. on the judgment. Mock and TOS bring this appeal enumerating two alleged errors. Held:

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

Mock v. CANTERBURY REALTY COMPANY, 264 S.E.2d 489, 152 Ga. App. 872, 1980 Ga. App. LEXIS 1639 (Ga. Ct. App. 1980).

264 S.E.2d 489 (Mock v. CANTERBURY REALTY COMPANY) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

West v. Diduro
718 S.E.2d 815 (Court of Appeals of Georgia, 2011)
Automated Print, Inc. v. Edgar
654 S.E.2d 413 (Court of Appeals of Georgia, 2007)
Simmons v. Regions Bank
567 S.E.2d 49 (Court of Appeals of Georgia, 2002)
Parker v. Crider Poultry, Inc.
549 S.E.2d 711 (Court of Appeals of Georgia, 2001)
Ackerman v. First National Bank of Grady County
521 S.E.2d 221 (Court of Appeals of Georgia, 1999)
Williams v. Crispaire Corp.
483 S.E.2d 653 (Court of Appeals of Georgia, 1997)
In Re Paz
179 B.R. 743 (S.D. Georgia, 1995)
Anziano v. Appalachee Enterprises, Inc.
432 S.E.2d 117 (Court of Appeals of Georgia, 1993)
Crolley v. Haygood Contracting, Inc.
429 S.E.2d 93 (Court of Appeals of Georgia, 1993)
Optopics Laboratories Corp. v. Sherman Laboratories, Inc.
619 A.2d 614 (New Jersey Superior Court App Division, 1993)
Lefemine v. Baron
573 So. 2d 326 (Supreme Court of Florida, 1991)
Petrey v. Brinsfield
392 S.E.2d 51 (Court of Appeals of Georgia, 1990)
Mark Singleton Buick, Inc. v. Taylor
391 S.E.2d 435 (Court of Appeals of Georgia, 1990)
Segrest v. Intown True Value Hardware, Inc.
379 S.E.2d 615 (Court of Appeals of Georgia, 1989)
Brunson v. C. B. A., Inc.
376 S.E.2d 706 (Court of Appeals of Georgia, 1988)
Finnegan v. Davidson Co.
362 S.E.2d 117 (Court of Appeals of Georgia, 1987)
Henderson v. Caughran
356 S.E.2d 721 (Court of Appeals of Georgia, 1987)
Thorpe v. Robert F. Bullock, Inc.
348 S.E.2d 55 (Court of Appeals of Georgia, 1986)