Serchion v. Capstone Partners, Inc.

679 S.E.2d 40, 298 Ga. App. 73, 2009 Fulton County D. Rep. 1635, 2009 Ga. App. LEXIS 509
CourtCourt of Appeals of Georgia
DecidedMay 4, 2009
DocketA09A0662
StatusPublished
Cited by19 cases

This text of 679 S.E.2d 40 (Serchion v. Capstone Partners, Inc.) 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
Serchion v. Capstone Partners, Inc., 679 S.E.2d 40, 298 Ga. App. 73, 2009 Fulton County D. Rep. 1635, 2009 Ga. App. LEXIS 509 (Ga. Ct. App. 2009).

Opinion

BLACKBURN, Presiding Judge.

In this suit to recover land, William Serchion appeals the trial court’s order granting summary judgment against him and in favor of defendants Capstone Partners, Inc. and JMC Holdings, LLC. He *74 complains that the trial court erred in applying a four-year statute of limitation against him in his claim to recover his land that defendants obtained by allegedly making fraudulent representations to him. Although we agree with Serchion that the four-year statutes of limitation found in OCGA §§ 9-3-30 and 9-3-31 did not apply to bar all his claims, we hold that no admissible evidence showed that either defendant made any misrepresentations to Serchion or his agent. Therefore, as this latter ground was raised and argued below, we affirm the trial court’s order as right for any reason.

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. OCGA § 9-11-56 (c). A de novo standard of review applies to an appeal from a grant 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. Matjoulis v. Integon Gen. Ins. Corp. 1

So viewed, the evidence shows that in September 2001, Serchion agreed to sell certain property to Capstone Partners for $240,000, which agreement was superseded by a January 2002 agreement in which Serchion agreed to sell that same property to JMC Holdings (an affiliate of Capstone) for $290,000 less $50,000 for repairs to be performed by JMC. On February 26, 2002, Serchion executed a deed conveying two parcels of land to JMC Holdings in exchange for $290,000 (less the $50,000 repair amount). However, based on conversations with the real estate agent who represented him in the matter, Serchion (who could not read) believed that he was conveying only one of the parcels to JMC, not both. By early March 2002, Serchion came to realize that he had actually conveyed both parcels, and he sent a letter to Capstone Partners on March 11, 2002, complaining that he had been defrauded. He then executed an affidavit on April 25, 2002, setting forth his allegations that he had been tricked into conveying both parcels, which affidavit was recorded in the real estate records on June 17, 2002.

On April 3, 2007, Serchion filed an action against Capstone Partners and JMC Holdings to cancel the allegedly fraudulent deed, to recover the second parcel, and to recover damages. Capstone and JMC moved for summary judgment, arguing that the applicable statute of limitation had run and further that no evidence showed any misrepresentations by Capstone or JMC. Characterizing the complaint as purely an action to recover damages for fraud or fraud in the inducement, the trial court granted summary judgment on the ground that under OCGA § 9-3-31, such claims must be brought *75 within four years of the date the injury was discovered, which four years expired no later than March 11, 2006. Serchion appeals.

1. Serchion contends that the trial court erred in applying OCGA § 9-3-31 to all of his claims, as at least one of those claims sought to cancel the deed and to recover the property on grounds of fraud. We agree that under Georgia law, an action to cancel a deed and to recover property is subject to an equitable seven-year limitation. See Jones u. Dykes 2 (“Georgia law recognizes an equitable seven-year limit on suits for cancellation of deeds”).

Indeed, “[b]y a long line of decisions of [the Supreme Court of Georgia,] it is established beyond question that an action . . . seeking the cancellation of an alleged fraudulent deed, must be brought within seven years from the time the fraud became known.” Shirley v. Mulligan. 3 See Poore v. Poore 4 (“in suits to recover land, when fraud is charged, it has been held that the period of limitations applicable to an action for the fraud is the same as that which would apply to an action for the land, to wit[,] seven years from the discovery of the fraud”) (punctuation omitted); Jones v. Johnson 5 (“[t]he period of limitation applicable to an action for fraud in procuring the title to land is the same as that which would apply to an action for the land, to wit, seven years from the discovery of the fraud”).

The error committed by the trial court here was the characterization of Serchion’s entire action as merely one to recover damages for fraud. This was inaccurate. Repeatedly alleging that the deed was defective as fraudulently obtained, the complaint in Count 4 requested that the court exercise its equitable powers to force defendants “to deliver up the original of said purported deed and [that] a judgment be entered directing the cancellation thereof” and contained a prayer at the end “[t]hat said Defendants be required by decree of this court to deliver up the original of said purported deed and a judgment be entered canceling the same as a cloud upon Plaintiffs Title. . . .” Only Counts 1 through 3 sought damages caused by the alleged fraud or fraudulent inducement, which claims were subject to either the four-year statute of limitation found in OCGA § 9-3-30 or the four-year statute of limitation found in OCGA § 9-3-31. See Forester v. McDuffie 6 (“[a]n action for fraud and deceit for shortage in acreage of land must be brought within four years after the right of action accrues, pursuant to the four-year *76 period of limitation for damages to realty as set forth in OCGA § 9-3-30”); Kerce v. Bent Tree Corp. 7 (“[a] suit alleging fraudulent inducement in the purchase of property is an action for injury to property, and the four-year statute of limitation contained in OCGA § 9-3-31 ... is applicable”). However, where the action also seeks equitable relief such as recovery of the property or cancellation of the deed, then our court has been careful to distinguish such claims as being subject to a seven-year limitation period. See Phipps v. Wright. 8

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Cite This Page — Counsel Stack

Bluebook (online)
679 S.E.2d 40, 298 Ga. App. 73, 2009 Fulton County D. Rep. 1635, 2009 Ga. App. LEXIS 509, Counsel Stack Legal Research, https://law.counselstack.com/opinion/serchion-v-capstone-partners-inc-gactapp-2009.