Navy Federal Credit Union v. Pearl McCrea

Court of Appeals of Georgia·Decided May 4, 2016·No. A16A0332·Published

Opinion

FIFTH DIVISION

PHIPPS, P. J.,

DILLARD and PETERSON, JJ.

NOTICE: Motions for reconsideration must be physically received in our clerk’s office within ten days of the date of decision to be deemed timely filed.

http://www.gaappeals.us/rules

May 4, 2016

In the Court of Appeals of Georgia A16A0332. NAVY FEDERAL CREDIT UNION v. MCCREA.

DILLARD, Judge.

In this interlocutory appeal, Navy Federal Credit Union (“NFCU”) seeks reversal of the trial court’s denial of its motion for reconsideration of the court’s earlier denial of its motion for summary judgment in its declaratory-judgment action against Pearl McCrea involving a dispute over title to land.1 On appeal, NFCU argues

1 An application for interlocutory appeal was the proper avenue for obtaining appellate review at this stage in the proceedings. See Mayor & Aldermen of City of Savannah v. Norman J. Bass Constr. Co., 264 Ga. 16, 17 (1) (441 SE2d 63) (1994) (“[A]n order denying a motion for reconsideration [of the denial of a motion to dismiss] is an interlocutory order that, just as any other interlocutory order, can be the subject of an application for interlocutory appeal if a certificate of immediate review is obtained from the trial court.”); Rollins v. Communications v. Henderson, Few & Co., 140 Ga. App. 504, 504 (1) (231 SE2d 412) (1976) (holding that an appellant properly sought interlocutory review of the trial court’s denial of a motion for reconsideration of a prior order that was not a final, appealable judgment).

that it was entitled to summary judgment because the undisputed evidence shows that it owns the subject property and that McCrea has no interest in it. NFCU further contends that McCrea presented no evidence to support any of her counterclaims. For the reasons set forth infra, we reverse the trial court’s denial of summary judgment to NFCU.2 Viewing the evidence in the light most favorable to McCrea, the nonmoving party,3 the record shows that on January 30, 2007, McCrea purchased the subject property, which is located in Ellenwood, Georgia (the “property”), and she obtained a warranty deed from the seller. On the same day, McCrea executed a “Joint Tenancy with Survivorship Warranty Deed,” conveying the property in fee simple to Gary and Vickie Fox. A few months later, in June 2007, the Foxes used the property to secure

2 After NFCU initially filed its appeal in this Court, we transferred its appeal to the Supreme Court of Georgia, believing that it was subject to that Court’s jurisdiction over cases respecting title to land. But the Supreme Court transferred the appeal back to this Court, explaining that the case did not fall within its title-to-land jurisdiction because, although NFCU sought to establish the validity of its title to land, it had not “filed an ejectment or other similar action that seeks to recover possession of the land from [McCrea].” See, e.g., Graham v. Tallent, 235 Ga. 47, 49 (218 SE2d 799) (1975) (“[T]he case before us is not a case respecting title to land for the reason that this case is not an action of ejectment or a statutory substitute, and it seeks sale by foreclosure rather than recovery of the land.”).

3 See, e.g., Vratsinas Const. Co. v. Chitwood, 314 Ga. App. 357, 357-58 (723 SE2d 740) (2012).

a loan from NFCU for $70,000 and executed a security deed in favor of NFCU to that effect.

In 2011, McCrea filed suit against the Foxes for, inter alia, breach of contract, undue influence, and fraud (the “Foxes Case”), claiming that the Foxes fraudulently induced her to purchase the property and convey it to them in exchange for promises that they would take care of her and the property. McCrea alleged that the Foxes did not fulfill their promises, and she was unaware that they secured a loan with the property. In addition to damages, McCrea requested that the property be returned to her free and clear of any liens or encumbrances incurred by the Foxes. On April 25, 2011, McCrea also filed a notice of lis pendens regarding her dispute with the Foxes over the property. And although the Foxes Case had not yet been resolved, on January 30, 2012, McCrea executed a quitclaim deed purporting to transfer title to the property to a third party. Eventually, in August 2012, the Foxes Case proceeded to a jury trial, and the jury found in favor of McCrea, awarding her $88,300 in damages. The trial court then issued an order, affirming the jury’s verdict and awarding McCrea a total of $88,575 in damages, interest, and costs.

Thereafter, on December 4, 2012, NFCU, which was not a party to the Foxes Case, sold the property in a foreclosure sale because the Foxes defaulted on their

loan. Then, on June 26, 2013, NFCU filed this action against McCrea to quiet title to the property and to set aside her lis-pendens notice. McCrea filed an answer, asserting several affirmative defenses, as well as counterclaims for intentional infliction of emotional distress, unjust enrichment, and stubborn litigiousness. NFCU next filed an amended complaint, removing its quiet-title claim and adding a claim for declaratory relief. On December 3, 2013, McCrea filed a motion for summary judgment, and after responding to the motion, NFCU filed a second amended complaint, seeking only a declaratory judgment that it owns the property unencumbered by any claim of interest made by McCrea. In her response, McCrea added an additional counterclaim for the foreclosure sale to be declared void and set aside.

Subsequently, NFCU filed a competing motion for summary judgment, arguing that the outcome of the Foxes Case had no bearing on its ownership of the property and that McCrea’s counterclaims, which were all derivative of her claimed interest in the property, lacked evidentiary support. Ultimately, the trial court denied summary judgment to both parties, noting only that there were “genuine issues of material fact, including, but not limited to, any notice that [NFCU] may have had of the particular legal encumbrances on [the] property.” The order, however, did not mention

McCrea’s counterclaims. NFCU then filed a motion for reconsideration, which the court also denied. Thereafter, we granted NFCU’s application for an interlocutory appeal, and this appeal follows.

At the outset, we note that summary judgment is proper when “there is no genuine issue of material fact and the movant is entitled to judgment as a matter of law.”4 Additionally, a de novo standard of review applies to an appeal from a grant or denial of summary judgment, and we “view the evidence, and all reasonable conclusions and inferences drawn from it, in the light most favorable to the nonmovant.”5 With these guiding principles in mind, we turn now to NFCU’s specific claims of error.

1. NFCU first argues that the trial court erred in denying its motion for summary judgment as to its request for declaratory relief because the undisputed evidence establishes that it owns the property free and clear of any claimed interest by McCrea. We agree.

In the case sub judice, McCrea, who has not filed an appellate brief, essentially argued to the trial court that the warranty deed she executed, transferring the property

4 Id. at 357 (punctuation omitted).

5 Id. at 357-58 (punctuation omitted).

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