Pierre-Louis v. Francois (In re Francois)

525 B.R. 531
CourtUnited States Bankruptcy Court, N.D. Georgia
DecidedFebruary 13, 2015
DocketCASE NO. 12-61217-MHM; ADVERSARY PROCEEDING NO. 14-5098
StatusPublished

This text of 525 B.R. 531 (Pierre-Louis v. Francois (In re Francois)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pierre-Louis v. Francois (In re Francois), 525 B.R. 531 (Ga. 2015).

Opinion

ORDER ON MOTION FOR SUMMARY JUDGMENT

MARGARET H. MURPHY, UNITED STATES BANKRUPTCY JUDGE

This adversary proceeding is before the court on Trustee’s Motion for Summary Judgment, filed November 17, 2014 (Doc. No. 33) (the “Motion”). Plaintiff filed a complaint initiating this adversary proceeding April 1, 2014. The Chapter 13 Trustee (“Trustee”) filed a Motion to Intervene April 29, 2014 (Doc. No. 7), which was granted by order entered May 15, 2014 (Doc. No. 9). Trustee now asserts that no material facts remain at issue, and that Trustee is entitled to summary judgment.

BACKGROUND

The parties in this case dispute the ownership of real property located at 617 Champions Drive, McDonough, GA 30215 in Henry County (the “Property”). Plaintiff received a warranty deed for the Property December 27, 2010, from The Patterson Real Estate Group, Inc. and Jeff Neisler as grantors (the “Warranty Deed”). On the same day, Plaintiff executed a security deed (the “Security Deed”) in favor of Mortgage Electronic Registration Systems, Inc., as nominee for Community Capital Bank, in connection with a promissory note Plaintiff executed in favor of Community Capital Bank in the sum of $268,306.00 (the “Note”). Defendants have admitted the existence of the Security Deed. The Warranty Deed and the Security Deed were recorded December 30, 2010 in Henry County, Georgia. On February 2, 2011, Plaintiff executed what purports to be a quitclaim deed to the Property, with Jean Marie Guitton Francois and Jeen Jean Baptiste Francois (“Defendants”) as grantees, and was recorded February 2, 2011 in Henry County, Georgia (the “Quitclaim Deed”). On its face, the Quitclaim Deed states, “[f]or valuable consideration, the Grantor hereby quitclaims and transfers all right, title, and interest held by the Grantor in the following described real estate and improvements to the Grantee, and his or her heirs and assigns, to have and hold forever, located at 617 Champions Drive, City of McDonough, State of Georgia.”

The parties’ relationship to the Property is disputed. Plaintiff claims that she had agreed with Defendants that she would move from New Jersey to Georgia, purchase the home for Defendants, and Defendants would make the monthly payments on the Note; in exchange, Defendants were to care for Plaintiff and her disabled daughter. Defendants deny this arrangement. Additionally, Plaintiff and Defendants disagree as to the circumstances surrounding the Quitclaim Deed, with Plaintiff stating that it was her belief that the Quitclaim Deed was signed merely to give Defendants the ability to claim tax relief for the mortgage payments that were being made.

CONCLUSIONS OF LAW

Pursuant to FRCP 56(c), incorporated in Bankruptcy Rule 7056, a party moving for summary judgment is entitled to prevail if no genuine issue of material fact exists and the moving party is entitled to judgment as a matter of law. Only disputes of fact which might affect the outcome of the proceeding will preclude summary judgment. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). On summary judgment, the inferences to be drawn from the underly[534]*534ing facts contained in such materials must be viewed in the light most favorable to the party opposing the motion. United States v. Diebold, Inc., 369 U.S. 654, 655, 82 S.Ct. 993, 8 L.Ed.2d 176 (1962).

It is a matter of law that “[a]ny contract for sale of lands, or any interest in, or concerning lands” must be in writing and signed by the party to be charged with the obligation. Ga. Code Ann. § 13-5-30 (West). Concerning the transfer of property, a quitclaim deed can convey from grantor to grantee only such interest as the grantor has in the real property. Georgia Lien Servs., Inc. v. Barrett, 272 Ga.App. 656, 657, 613 S.E.2d 180 (2005). Additionally, parties are barred from introducing parol evidence as a means of placing conditions on a quitclaim deed that is absolute on its face. Se.Timberlands, Inc. v. Haiseal Timber, Inc., 224 Ga.App. 98, 102, 479 S.E.2d 443 (1996). If the conveyance from grantor to grantee is found to be valid, then a failure to carry out a promise or other consideration does not invalidate the conveyance. Barrett v. Simmons, 235 Ga. 600, 601, 221 S.E.2d 25 (1975). This would result in a breach of the terms of a contract, but would not change the legal standing of the conveyance. Id. Like any other contract dispute, a plaintiff must seek a redress through an action for the value of that consideration—in this case, the value of the support she would have received. Bolton v. Morris, 209 Ga. 153, 154, 71 S.E.2d 217 (1952). However, if the consideration for the bargain includes one party providing “support for life,” and the special circumstances of fraud or insolvency arise, rescinding the deed would be the more appropriate remedy. Id.

An implied trust is defined as a “resulting trust as described in Code Section 53-12-130 or a constructive trust as described in Code Section 53-12-132. Ga. Code Ann. § 53-12-2 (West).

Implied trusts are either resulting or constructive. In an implied resulting trust the intention of the parties is an essential element, although no valid agreement setting up such an intention is shown, but such mutual intent is implied only from proven facts and circumstances. An implied constructive trust is different, in that here there is no intention of the parties to create such a relationship, but on the contrary in most, if not every ease, such a trust arises by virtue of the fraudulent conduct of one misappropriating the money of another, and the trust arises contrary to any intent on his part. 4 Pomeroy’s Equity Jurisprudence, §§ 1031,1044.

Loggins v. Daves, 201 Ga. 628, 628, 40 S.E.2d 520 (1946). A constructive trust is a means by which a court can prevent unjust enrichment from occurring. Whiten v. Murray, 267 Ga.App. 417, 420, 599 S.E.2d 346 (2004). It is inherently-unjust to allow “ ‘one with a legal interest in a piece of property a windfall recovery when the beneficial interest should flow to another.’ ” Id. (quoting Weekes v. Gay, 243 Ga. 784, 786, 256 S.E.2d 901 (1979)). Therefore, “ ‘[a] court of law may entertain [implied trusts]; but when the case is complicated, especially when it has a flavor of fraud, equity will not banish them, and remit the parties to another forum.’ ” Whiten, 267 Ga.App. at 423, 599 S.E.2d 346 (quoting Bateman v. Patterson, 212 Ga.

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Bluebook (online)
525 B.R. 531, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pierre-louis-v-francois-in-re-francois-ganb-2015.