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N O T IC E : M otions for re c ons i de r a tion m us t be

phy s ic a lly re ce iv e d in our cle r k’s off i c e w ithin te n

da y s of the da te of de c is ion to be de e m ed tim e ly file d.

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Jul y 13, 2015



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A1 5 A0 48 6 . CLARK v . AGGEORGIA FARM CREDIT ACA.

M C M ILLI A N , J u dg e.

Ap p el l an t Do n al d Cl ark (“ D o n al d”) fi l ed a co m p lai n t

, as am en d ed an d recas t

s ev eral t i m es

, ag ai n s t ap p el lee Ag Geo rg i a Farm Cred it ACA (“ Ag Geo rg i a”) 1 s eek i n g

d am ag es ari s i n g fro m t h e al leg ed b reach o f cert ai n d e e d s t o s ecu re d eb t an d t h e

wro ng fu l fo recl o s u re o f a 2 78 acre farm i n W i l co x Co u nt y

, G eo rg i a (t h e “ Farm ”) t h at

Do n al d jo i nt l y o wn ed 2 wi t h h i s b ro t h er Harri s E d wi n Cl ark (“ E d w i n ”; co l l ect i v el y

referred t o as “ t h e Bro t h ers ”). T h e t ri al co u rt g ran t ed p art i a l s um m ary ju d g m en t to

1 As t h e n am e i m

p l i es , Ag Geo rg ia m ak es l o an s fo r ag ri cu l t u ral p u rp os es

.

2 Th e Bro th ers each o wn ed a o n e h al f u n di v i d ed i n t eres t i n t he Farm

.Ag Geo rg i a, an d Do n al d t i m el y fi l ed an ap p eal t o th i s Co urt

. 3 Hav i n g ca r e f u l l y

co n si d ered t h e i s s u es rai s ed i n t h i s ap p eal , we n o w rev ers e.

Th e u n d erl y i n g fact s are e sse ntia lly undispute d. Th e Bro t h ers jo i n t ly p u rch as ed

t h e Farm s o m et i m e d u ri n g t h e 1 9 8 0 ’ s an d o p erat ed t h e Farm t o g et h er fo r m an y y ears

.

In 1 9 97

, t h e Bro t hers o b t ai n ed i n d i v i d u al l o an s fro m A g Geo rg ia’ s p r e d eces s o r, at

wh i ch t i m e t h ey jo i n t l y ex ecu t ed t wo d eed s t o s ecu re d eb t p l ed gi n g t h e Farm as

s ecu ri t y fo r t h e l o an s (co l l ect i v el y referred t o as t h e “ 19 9 7 Deed s”).

Acco rd i ng to Ag Geo rg i a, t h e 1 9 9 7 Deed s were s et t o ex p i re on Decem b er 1,

2 0 0 4

, an d i n Oct o b er 2 0 0 4

, th e Bro t h ers jo i nt l y ex ecu t ed t wo new s ecu ri t y d eed s

(DSD No

. 1 an d DSD No

. 2 ; co l l ect iv el y referred t o as t h e “ 2 0 0 4 Deed s ”) p l ed g i n g

t h e Farm t o s ecu re cert ai n i d en t i fi ed ex i s t i n g l o an s

, w h i ch A g Geo rg i a h ad

i n d i v i d u al l y ex ten d ed t o t h e Bro t h ers

. Mo re s p eci fi cal ly

, DSD No

. 1 id en t i fi ed an

ex i s t in g l o an t o Do n al d

, wh o was n am ed as t h e so l e “ Bo rro wer” un d er t h at d eed

, an d

D S D N o

. 2 i d en ti fi ed an ex i s t i ng lo an t o Ed w i n

, wh o was l i s t ed as t h e s o l e

“ Bo rro wer” i n DSD No

. 2. Do n al d an d Ed wi n

, w ho w ere d efi n ed as t h e

“ Un d ers i g n ed

, wh et h er o n e o r m o re,” jo i n tl y ex ecu t ed t h e 2 0 04 Deed s

. Th e 2 0 0 4

3 Do n al d al s o m o v ed fo r p art i al s um m ary ju dg m en t

, an d t h e t ri al co u rt d en i ed

h i s m o t i o n i n t h e s am e o rd er.

2Deed s were i n m an y res p ect s i d en t i cal t o th e 1 9 9 7 D eed s 4 an d co n t ai n ed m an y o f t h e

s am e t erm s an d co n di t i o n s, i n cl u d in g “ o p en en d ” an d “ d rag n et ” cl au s es

, wh i ch m ad e

ad d it i o n al l o an s

, ad v an ces

, an d o t h er i n d eb t ed n es s s u b ject t o t h e 2 0 0 4 Deed s u n d er

cert ai n co n d it i o n s

.

Ed wi n p ai d o ff t h e d eb t id en t i fi ed i n D SD No

. 2 i n J an u ary 20 0 5

, an d Do n al d

p ai d o ff t h e d eb t i d en t ifi ed in DSD No

. 1 i n Feb ru ary 2 0 0 5

. In t he s u m m er o f 2 0 0 4,

t h e Bro t hers h ad a d i sag reem en t o v er a m at t er u n rel at ed t o t h ei r farm in g op erat i o n s

,

an d i n t he en s u i n g m o n t h s t h ei r rel at i o n s h i p d et eri o rat ed t o t h e po i n t t h at t h ey ceas ed

farm i n g t o g et h er s h ort ly aft e r t h e no t es were p ai d o ff. Ho wev er, t he Bro t h ers

co n ti n u ed t o farm s ep arat el y , an d i n Ap ri l 2 0 0 5 Do n al d o b t ai n ed an o t h er l o an fro m

Ag Geo rg i a, w h ich was ev i d en ced b y a p r o m i s s ory n o t e in fav o r o f Ag Geo rg i a fo r

$ 8 0 ,0 0 0

. In 2 0 0 7

, Do n al d ob t ai n ed t wo ad d it i on al lo an s an d ex ecu t ed two ad d i t i o n al

p ro m i s s o ry

n o t es i n fav o r o f Ag Geo rg i a. 5

In 2 0 0 8, A g Geo rg i a n o t i fi ed D o n al d th at h e was i n d efau lt o n hi s Su b s eq u en t

Lo an s an d warn ed h im t h at i t i n t en d ed t o in i ti at e a fo recl o s u re act i on i f h e d i d n o t

4 Th e 1 9 9 7 D eed s an d 2 0 0 4 Deed s wi l l b e co l lect i v el y referred t o a s “ t h e

Deed s .”

5 Th e Ap ri l 2 00 5 an d 2 0 0 7 l o an s wi l l b e referred t o as “ Do n al d ’ s Su b s eq u en t

Lo an s .”

3s at i s fact o ri l y r e s t ru ct u re t h e l oan s

. D o n al d fai l ed t o cu re t h e d efau l t or o t h erwi s e

res t ru ct u re t h e l oan s

, an d i n Ap ri l 2 0 0 9, Ag Geo rg i a no t ifi ed Ed wi n an d Do n al d t h at

Do n al d was in d efau l t on h i s Su b s eq u en t Lo an s as w el l a s a n a d d i t i o n al n o t e h e

ex e c u t e d i n March 5

, 2 0 0 4

, 6 an d th at it i n t en d ed t o i n it i at e ju d i ci al fo recl o s u re

p ro ceed in g s u n d er t h e t erm s o f DSD No

. 1 if D o n al d d i d n o t s at i s fy t h e o u t s t an d i n g

d eb t, w h i ch at t h at t i m e was s li g h t l y o v er $1 9 3 ,0 00 i n cl u d i n g i n t eres t an d fees

, wi t h in

t en d ay s

. Al t h o u g h Ed wi n ap p aren t l y d i d n o t h av e an y o u ts tan d i n g l o an s to

Ag Geo rg i a at th at t i m e, aft er h e was n o t i fi ed o f t h e p en d in g fo recl o s ure h e req u es t ed

an d recei v ed a $ 1 9 0 ,0 0 0 l o an fro m Ag G eo rg i a, wh i ch was ev i d en ced b y a p ro m i s s o ry

n o t e h e s i g n ed o n Ap ri l 9

, 2 0 09 (h erei n aft er re f e r red t o as “ Ed wi n ’ s Su b s eq u en t

Lo an ”). Ag Geo rg i a d i d n ot p ro v i d e no t i ce t o Do n al d o f Ed w i n ’ s Su b s eq u en t Lo an

,

n o r d id i t at t em

p t t o o b t ai n Do n al d ’ s wri t t en co ns en t p ri or t o ex t en d in g t h e l o an

.

Aft er p ro v i d i n g additiona l notic e of de f a u lt a nd a d ve r t i s i n g t h e s al e, Ag Geo rg i a

fo recl o s ed o n t h e 2 00 4 Deed s i n Au g u s t 2 0 0 9, at wh i ch t i m e D o n al d ’ s o u t s t an d i n g

d eb t am ou n t ed t o ap p ro x i m at el y $ 1 9 8 ,7 4 8 .7 0 an d Ed w i n ’s o u t st an d i n g d eb t

am ou n t ed t o $ 1 9 1 ,8 3 8 .2 1

. Ed w i n e n t e r e d t h e hi g h es t b i d at th e fo recl os u re s al e,

6 Th e p u rp o s e of t he M arch 4

, 2 00 4 l o an was t o fi n an ce Do n al d ’ s s h are o f t h e

p u rch as e p ri ce o f an i rri gat i o n p i vo t h e h ad pu rch as ed wi th E d wi n

, an d Ag Geo rg i a

was g ran ted a s ecu ri t y

i nt eres t i n t he p i v o t t o s ecu re t h e l o an

.

4p u rch as in g t he Farm fo r $ 3 9 2 ,4 8 0

. Do n al d was p res en t at t h e fo recl o su re s al e b u t d id

n o t o b j ect o r ch al len g e t h e s al e at t h at t i m e.

Ov er t h ree ye a r s aft er t h e fo recl o s ure sal e, D o n al d i n s t i t u t ed t h e p res en t

p ro ceed in g s

, co n t en d i n g

, am on g o th er t h i n g s

, t h at Ag Geo rg i a i m p ro p erl y ex erci s ed

t h e p o wer o f s al e i n t h e 2 0 0 4 Deed s b ecau s e DSD No

. 1 d i d n o t s ecu re h i s p rev i ou s

i n d eb t ed n es s o t her th an i nd eb t ed n es s s p eci fi cal ly i d en t i fi ed i n th e d eed

, an d n ei t h er

h i s n o r Ed wi n ’ s s ub s e q u e n t in d eb t ed n es s was s ecu red by th e 20 0 4 Deed s b ecau s e

Ag Geo rg i a d i d n o t o b t ai n t h e co n sen t o f t he “ n o n -b orro wi n g ” b ro t h er t o th e o t h er

b ro t h er’ s l oan s

. Fu rt her, D on al d al s o ch al l en g ed t h e fo recl os u re o n t h e b as i s t h at

Ag Geo rg i a was n o t th e h o l d e r o f e i t h er t he n o t es o r t h e 2 00 4 Deed s at t h e t i m e i t

institute d the f

or e c losu re p ro ceed i n g s

. 7 Bo t h p art i es fi l ed m ot i o n s fo r part i al s u m m ary

ju d g m en t

, an d fo l l owi ng a h eari n g

, t h e t ri al co u rt en t ered a wri t t en o rd er d en y i n g

Do n al d ’s m o t io n fo r p art i al s u m m ary ju d g m en t an d g ran ti n g p art ial s u m m ary

ju d g m en t t o Ag Geo rg i a o n Do n al d ’ s cl ai m s fo r breach o f co n tract an d wro n g fu l

fo recl o s u r e

. W e ag ree wi t h D o n al d t h at t h e t ri al co u rt erred b y g ran t i n g s u m m ary

7 Pu rs u an t t o a Gen eral Fi n an ci n g Ag reem en t

, Ag Geo rg i a as s i g n ed t h e n o t es

an d d eed s t o Ag Fi rs t Farm Cred i t Ban k ( “ A g F i rs t ”), wh i ch p ro v i d ed fu n d i n g fo r

Ag Geo rg i a’ s l o an s t h ro ug h a l i n e o f cred i t

.

5ju d g m en t t o Ag Geo rg i a an d d en y i n g Do n al d ’ s m ot i o n on th es e cl ai m s an d

acco rd i n g l y

rev ers e.

1

. Th e 2 0 04 Deed s co n t ai n t h ree s ect i on s t h at s et o ut t he i n deb t ed nes s s ecu red

b y t h e deed s

. Sect i on On e o f each d eed id en t ifi es a s peci fi c p re-ex i s t i n g i n d i v i d u al

n o t e fo r a s p eci fi c l o a n m ad e t o each b ro t h er fo r wh i ch th e Farm was pl ed g ed as

s ecu ri t y ; Sect i o n T w o ad d res s es o n l y s u bs eq u en t “ ad d i t i o n al ” l oan s m ad e t o t h e

“ Bo rro wer” th at are ev i d en ced b y a n o t e o r no t es ; an d Sect i o n T h ree ap p l i es t o b o th

p re-ex i s ti n g i n d eb t ed n es s as wel l as i n d eb t ed nes s t hat m ay b e “ co n t ract ed ” aft er t h e

ex ecu t i o n o f t h e Deed s. As s t at ed ab o v e, t h e s p eci fi cal l y i den t i fi ed i n d eb t ed n es s o f

each b ro t h er s p eci fi ed in Sect i o n On e h as b een s at i s fi ed

, an d t h us is n o t at i s s u e h ere.

Ho wev er, we m

u s t d et erm i n e wh et h er t h e Bro t h ers ’ Su b s eq u en t Lo an s were s ecu red

u n d er Sect i o n Two

, an d wh e t h e r D o n al d ’ s M arch 2 0 0 4 lo an was s ecu red u n d er

Sect i o n Th ree.

“ Un d er Geo rg i a l aw, a s ecu ri t y d eed wh i ch i n cl u d es a p o w er o f s al e i s a

co n tract an d i t s pro vi s io n s are co n t ro l l i n g as t o t h e r i g h t s o f th e part i es t h eret o an d

t h ei r p ri v i es .” S t ewa r t v

. S un t r u s t Mt

g

., In c.

,

_

_ _ Ga. Ap p

._

_ _ (3 ) (Cas e No

.

A 1 4 A2 0 4 7

, d eci d ed M arch 2 7

, 2 0 1 5 ). An d [t ] h e co n st ru ct i o n of an u n am b i g u o u s

d eed

, l i k e t h e co n s t ru ct i o n o f an y o t her co n t ract

, i s a q u es t i o n fo r d et erm i n at i o n by

6t h e co u rt

. ” Tu r k v. Jef f r eys -McEl r a t h Mf

g

. Co

. , 2 0 7 Ga. 7 3

, 7 6 (2 ) (6 0 SE2 d 1 6 6 )

(1 9 5 0). Un d er G eo rg ia l aw, t h e card i n al ru l e o f co n t ract co n s t ru ct io n i s to as cert ai n

t h e i n t en t i o n o f t h e p art i es

, as s e t o u t i n t h e l an g uag e o f t h e co n t ract

. Sh ep h er d v.

Gr eer

, Kl o si c & Da u gh er t

y

, 3 2 5 Ga. Ap p

. 1 8 8, 1 8 9 -1 9 0 (7 5 0 SE2 d 4 6 3) (2 0 1 3 ) (t h e

o v erarch i n g co n s id erat i o n “ i s to effect u at e t h e i n ten t o f t h e p art i es as s et o u t i n t h e

l an g u ag e o f t h e ag reem en t”).

[I] f t h at i n t en ti o n i s cl ear an d i t co n trav en es no ru l e o f l aw an d su ffi ci en t

wo rd s are u s ed t o arri v e at t h e i n t en t io n

, i t s h al l b e en fo rced i rres p ect iv e

o f al l t ec h n i c a l o r arb i t rary ru l es o f co n s t ru ct i on

. Fu rt h er, th e

co n s t ru ct io n wh ich wi l l u p h o l d a co nt ract i n wh ol e an d i n ev ery p art i s

t o b e p referred , an d t h e wh o l e co n t ract s h ou l d b e l o o k ed t o i n arri v i n g

at th e co n s t ru ct i o n o f an y p art

. M o reo v er, n o co ns t ru ct i o n i s req u i red o r

ev en p erm it t ed wh en t h e l a n g u ag e em p l o y ed b y t he p art i es i n th e

co n t ract i s p l ai n

, u n am

b i g uo u s

, an d cap ab le o f o n l y o ne reas o n ab l e

i n t erp ret at i o n

.

(Ci t at i o n s an d p u n ct u at i o n o m i t t ed .) Id . at 1 9 0

.

(a) Sect i o n Two a n d S

u b s eq u e n t Lo a n s

. Un d er Sect i o n Two (“ o p en en d

cl au s e”) o f t h e Deed s

, t h e Farm was pl ed g ed t o s ecu re n o t o n l y t h e l o an s s peci fi cal l y

i d en t i fi ed i n t h e Deed s , b u t al s o

(2 ) al l ad d i t i o n al l o an s an d ad v an ces t h at m ay s u b s eq u en t ly b e m ad e t o

Bo rro wer ( o r t o an y o n e or m o re o f th e part i es des i g n at ed as

7Un d ers i g n ed o r Bo rro wer, wi t h t h e wri tt en co ns en t of t h e rem ai n d er o f

s ai d Un ders i g n ed o r Bo rro wer), by Len d er, wh i ch w i l l b e ev i d en ced b y

a n o t e o r n o t es . . .”

As s et o u t ab o v e, Sect i on T wo co n s i s ts o f t wo p art s

– a p ar e n t h e t i c a l an d

l an g u ag e o u t s i de t he p aren t h et i cal

. A cco rd i n g t o t h e l an g u ag e o u t s i d e t h e

p aren t h et i cal

, th e p ro p ert y p l ed g ed i n t h e d eed s act s as s ecu ri t y u n d er t h e fo l l o wi n g

ci rcu m s t an ces : 1 ) al l s ub s eq u en t l o an s

, 2 ) ev i d en ced b y a n o t e o r no t es

, an d 3 ) m ad e

t o t he “ Bo rro wer.” Ho wev er, in s i t u at i o ns wh ere t h e l an g uag e i n s i d e t h e paren t h et i cal

ap p li es

, an ad d it i o n al req u i r e m e n t

– w ri t t en co n s en t b y t h e “ rem ai n d er” o f t h e

Un d ers ig n ed o r Bo rro wer – i s cl earl y i m p o s ed as a co n d i t i o n fo r t h e d eed t o s ecu re

a s u b s eq u en t d eb t. T h u s

, we can n o t s i m p ly i gn o re th e l an g u ag e i n s i d e t h e

p aren t h et i cal b ecau s e cl earl y t h at l an g uag e ap p l i es in s o m e ci rcu m s t an ces . Th e k ey

q u es ti o n t h en i s u nd er wh at ci rcu m s tan ces d o es t h e co n s en t req u i rem en t ap p l y

.

W e fi rs t ex am i n e wh et h er t h i s q u es t io n can be an s w ered s o lel y b y referen ce to

t h e l an g u ag e o f th e 2 0 0 4 Deed s

. Ag G eo rg i a s ei zes o n t h e fact t h at t h e paren t h et i cal

refers to “ p art i es ,” i n t h e p l u ral rat h er t h an “ part y ” i n t he s i n g u l ar, an d u rg es t h at

co n sen t i s o n l y req u ired w h en 1 ) t h ere are m u l t i p l e “ part i es ” wh o h av e b een i d en t i fi ed

as Bo rro wer, o r 2 ) wh en t h ere are m u l t i p l e p art ies i d en ti fi ed as Un d ers ig n ed an d n o n e

8o f t h em i s al s o t h e s o l e i d en t i fi ed Bo rro wer. Th us

, Ag Geo rg i a arg u es th a t S e ct i o n

Two co m es i nt o p l ay

i n o n ly t wo ci rcu m s t an ces

– w here an ad d it i on al l o an i s m ad e

t o a Bo rro wer, a n d t here are m u l t i p le p ers o n s d es i gn at ed as Bo rro w er, o r wh en a n

ad d it i o n al l o an i s m ad e t o an Un d ers ig n ed

, an d t h ere are m ul t i p l e p ers o n s d es i g n at ed

as Un d ers i g n ed an d t h e Un d ers i g n ed wh o recei v es t h e ad d i t i o nal l oan i s n o t al s o t h e

s o l e bo rro wer. Bu t Ag Geo rg i a’ s read i n g o f Sect i o n Two o n t h e o n e han d ap p ears to

i g n o re t h at t h e p h ras e “ o r t o an y o n e or m o re” i m m ed i at el y pre c ed es t h e wo rd

“ p art i es ,” an d o n t h e o t h er h an d ap p ears to read i n t o t h e cl au s e co n di ti o n s t h at d o n ot

ap p ear i n t he p aren t h et i cal

.

Do n al d arg u es t h at t h e p ro p er m ean i n g o f Sect i o n Two i s b es t u n d ers t o o d by

i n s ert i n g t h e p ro p er nam es o f t h e p a r t i e s i n t o t h e d eed s

. Fo r ex am p l e, acco rd i n g to

Do n al d

, DSD No

. 1 secu red al l s u b s eq u en t l o a n s “ m ad e to [Do n al d ] (o r t o an y o n e

o r m o re of t h e p art i es d es i g n at ed as [Ed wi n an d Do n al d ] o r [Do n al d ] wi t h t h e wri t t en

co n sen t o f t h e rem ai n d er o f sai d [Ed w i n an d Do nal d ] o r [Do n al d ] ).” Th u s

, Do n al d

a r g u es

, u n d er t h i s i n t erp ret at i o n

, t h e co n s en t o f t h e n on -b o rro wi n g b ro t h e r w a s

req u i red

.

Al t h ou g h b o t h o f th es e i n t erp ret at i o n s are s t rai n ed an d ap p ear t o read l an g u ag e

i n t o or o u t o f th e p aren t het i cal i n o rd er t o reach t h ei r in t erp ret at i o n, we c a n n o t s a y

9t h at ei t her i n t erp ret at i o n i s u n reas o n ab l e. Fu rt h er, an y i nt erp ret at i o n we p l ace o n t h e

s ect i on wo u l d s u ffer fro m t he s am e d efect s

. “ [W ] e h av e d efi n ed am bi g u i t y t o m ean

‘ du p l i ci ty

, i n d is t i nct n es s

, an u n cert ai n t y o f m ean i n g o r ex pres s i o n u s ed in a wri t t en

i n s t ru m en t

, an d i t al s o si g ni fi es b ei n g o p en t o vari ou s i n terp ret at i o ns .” (Ci t at i o n an d

p u n ct u at i o n o m i t t ed .) Sh ep h er d

, 3 25 Ga. Ap p. at 1 9 0

. Ho r wi t z v. W ei l

, 2 7 5 Ga. 4 6 7,

4 6 8 (5 6 9 SE2 d 5 1 5 ) (2 0 0 2 ) (“ Am b i g u i t y in a co n t ract is d efi ned as d u p l i ci t y

,

i n d i s t in ct n es s o r an un cert ai n ty o f m ean i n g o r ex p res s i o n

. ” ). In o t h er wo rd s

, “ [a]

wo rd o r p h ras e i s a m

bi g u o u s wh en it s m ean i ng i s u ncert ai n an d i t m ay b e fai rl y

u n d ers t o o d i n m o re way s t h an o n e.” Fr eu n d v. W ar r en , 3 2 0 Ga. Ap p. 7 6 5 , 7 6 9 , n

. 4

(7 4 0 SE2 d 7 2 7 ) (2 0 1 3 ). Acco rd i n g l y

, w e co n cl ud e t h at Sect i o n Two i s am b i g u o u s to

t h e ex t en t th at i t f

a i l s t o s p eci fy wh en co n s en t t o s ub s eq u en t l o an s i s req u i red as a

co n di t i o n p reced en t t o a s u b seq u en t d eb t b ei ng s ecu red b y t he d eed

.

B e c a u s e S ect i o n Two i s am b i g u o u s

, we m

u s t n o w at t em

p t t o res o l v e t h a t

am bi g ui t y b y ap p l y i n g t h e s t at u t o ry ru l es o f co n s t ru ct i o n t o as cert ai n t h e i n t en t o f t h e

p art i es

. See OCGA § 1 3-3 -2

. “ If a t erm us ed i n a co n t ract i s o f u n cert ai n m ean i n g an d

m ay b e fai rl y u n d ers t o o d i n m o re way s t h an o n e, i t i s am b ig u ou s

, an d we ap p l y

t h e

ru l es o f co n t ract co n s t ru ct i on i n an effo rt t o res o l v e th e am b i g u i ty

. Th e p r o p er

co n st ru ct i o n o f a co nt ract i s a q u es t io n o f l aw fo r a co u rt t o d et erm i n e.” (Ci t at i o n s an d

10p u n ct u at i o n om i t t ed .) Ga r r et t v. S o u t h er n Hea l t h Co r

p

. of E ll i j a y, In c.

, 3 2 0 Ga. Ap p.

1 7 6

, 1 8 2 (1 ) (7 3 9 SE2 d 6 6 1 ) (2 0 1 3 ). Th u s, “ i t i s o n l y wh en t h e am bi g u i t y rem ai n s

aft er ap p l y i n g th e ru l es o f co n s t ru ct i o n t h at a ju ry m u s t res o l v e t h e i ss u e of wh at t h e

am bi g uo u s l an g u ag e m ean s .” S h ep h er d , 3 2 5 Ga. Ap p . at 1 9 2

.

On e p ri m ary ru l e o f s t at u t o ry co n st ru ct i o n req u i r e s u s t o co n st ru e an y

am bi g ui t y m o st s tro n g l y ag ai n s t t h e p art y wh o d raft ed th e ag reem en t

. Her t z Eq u i p.

Ren ta l Co r

p

. v. Eva ns

, 2 60 Ga. 5 3 2 (3 9 7 SE2 d 6 9 2 ) (1 9 9 0 ) ; S e e a l s o W i l l es en v.

Er n es t Co mmu n ica t i o ns

, In c., 3 2 3 Ga. Ap p

. 4 5 7

, 46 0 (1 ) (7 4 6 SE2 d 75 5 ) (2 0 1 3 ). It

i s u n d i sp u ted in t hi s cas e t h at Ag G eo rg i a d r a f t e d t h e 2 0 0 4 Deed s

, an d t h u s as an

i n i t i al m at t er t h e Deed s m u s t b e co n st ru ed ag ai n s t Ag Geo rg i a.

Fu rt her, i f a p art y i nt en d s t o co n t ract away a s u b s t an t i al ri gh t

, s uch as h av i n g

fu t u re e n c u m

b r an ces p l aced o n t h ei r p ro p ert y i n t eres t s wi t h o u t th ei r kn o wl ed g e o r

co n sen t

, s u ch m

u s t p l ai n l y ap p ear fro m t h e co n t ract

. Co vi n g t o n v. Br ewer

, 1 0 1 Ga.

A p p

. 7 24

, 7 2 9 (3 ) (1 15 SE2 d 3 68 ) (1 9 6 0 ) (“ si nce co n t ract s m u s t b e co n s t r u e d

acco rd i n g t o t h e i nt en t i o n o f t h e p art i es at t h e t i m e o f t h e i r ex ecu ti o n i t wi l l n o t b e

p res u m ed t h at p art i es i n t en d t o co n t ract away th ei r l eg al ri gh t s i n reg ard t o a s u b ject

m at t er no t cl earl y ap p eari ng t h erei n ”). Ad d i t io n al l y

, “ [t ] h e l aws wh i ch ex i s t at t h e

t i m e an d p l ace o f t h e m ak i n g o f a co n t ract

, en t er i nt o an d fo rm a p art o f i t ; an d t h e

11p art i es m

u s t b e pres u m ed t o h av e co nt ract ed wi t h referen ce t o su ch laws a n d t h ei r

effect o n t h e su b

ject m at t er.” (Ci t at io n s an d p u n ct u at i on o m i t t ed .) M a g n et i c

Res o n a n ce Pl u s

, In c. v. Ima g i n g S ys t ems In t l

. , 2 7 3 Ga. 5 2 5

, 5 2 7 (2 ) (5 4 3 SE2 d 3 2 )

(2 0 0 1).

Pu rs uan t t o OCGA § 4 4 -1 4 -1 (b ), “ o p en -en d ” o r “ drag n et ” cl au s es co n t ai n ed

i n m o rt gag es o r d eed s co nv ey i n g real t y t o s ecu re a d eb t h av e b een l im it ed t o “ d eb t s

o r o bl i g at i on s ari si n g ex co nt ract u

, . . . b et ween t h e o r i g in a l p a rt ies t o t h e s ecu ri t y

i n s t r umen t .” (Em

p has i s s u p p l i ed .) Th u s

, “ [u ] n l e s s t h e secu ri t y in s t ru m en t cl earl y

co n tem p l at es jo i n t an d s ev eral l i ab i l i ty

, al l o f t h e g ran t o rs t o t h e s ecu ri t y i n s t ru m en t

c onta ini ng t h e op en -en d ed cl au s e m u s t b e part i es t o t h e s ep arat e i nd eb t ed n es s

, t hough

n o t al l o f th e p art i es t o t he s ep a r a t e i n d e b t ed n es s m u s t b e part ies t o t he s ecu ri t y

i n s t ru m en t

. ” (Fo o t n o t es o m it t ed .) Fran k S. Al ex an d er, Geo r g i a Rea l Es t a t e Fi n a nce

a n d Fo r ecl o s u re La w, p

. 3 7

, § 2-3 (2 0 1 4 -2 0 1 5 ed .). See al s o Hi l l v. Per ki n s

, 2 1 8 Ga.

3 5 4 (1 2 7 SE2 d 9 0 9 ) (1 9 62 ) ; C o r d e l e Ba n ki n g Co

. v. Po wer s

, 2 1 7 Ga. 6 1 6, 6 1 9 (1 )

& (2 ) (1 2 4 SE2 d 2 75 ) (1 9 6 2 ) (t h e i n d i v i d u al i n deb t ed nes s o f on e o f th e gran t o rs i s

n o t th e d eb t o f b o t h o f g ran t o rs an d d oes no t fal l wi th i n t h e o p en -en d cl au s e o f t h e

s ecu ri t y d eed ); In re Fel

ker

, 1 8 1 Ban k r. 10 1 7 (Ban k r. M .D. Ga. 1 9 9 5 ); Amer i cu s

Fi n a nce Co

. v. W

il s o n

, 1 8 9 Ga. 6 3 5 ( 1 ) (7 SE2 d 2 5 9 ) (1 9 4 0 ); cf. S u t t o n v. At l a n t i c

12Ba n k & Tr u s t Co

. , 1 6 7 Ga. Ap p

. 8 6 1

, 86 3 (3 0 7 SE2 d 74 6 ) (1 9 83 ) (s u b s eq u en t d eb t s

were d eem ed s ecu red w h ere i t was cl ear t h at th e g ran to rs i n cl u d ed ei t h er t h e s i n g u l ar

o r t h e p l u r a l g r a n to rs an d t h at i t was u n co n t rad i ct ed t h at al l th e p art i es t o t h e d eed

i n t en d ed t h at t h e deb t s o f o n e b o rro wer wo u l d b e s ecu red by d eed ). As o u r Su p rem e

Co u rt h as ex p l ai n ed

, “ i t is o b v i o u s t h at an ad d i t io n al d eb t o f o ne cred i t o r can n o t

o p era t e a s a h o o k t o g rab a d rag n et w h i ch carri es w it h i t th e p ro p ert y i n t eres t s o f a

p art y o th er t h an t h e cred i t or i n t h e s ep arat e t ran s act i o n .” W i l l i s v. R a bu n Co u n t

y

Ba n k , 2 4 9 Ga. 4 93 , 4 9 4 (2 9 1 SE2 d 7 1 5 ) (1 9 8 2).

In t h i s cas e, t h e 2 0 04 Secu ri t y D eed s were ex p res s l y “ m a d e

. . . bet ween H.

Ed wi n Cl ark an d Do n al d L. Cl ark ,” as “ Un d ers i g n ed

, . . . an d Ag Geo rg i a.” Bo th

E d w i n a n d Do n al d are t h e G ran t o rs u n der t he 2 0 04 Deed s an d t h ey

, al o n g wi t h

Ag Ge o r g i a, as t h e Gran tee, are t h e o ri g i n al p art i es t o t h e d eed s

. Th e co n s en t

req u i rem en t

, as as s ert ed b y D o nal d

, i s th u s wh o l l y co n s i s t en t wi t h ex i s t i n g l aw i n t h at

wi t h o u t t h e ex pres s co ns en t o f t h e n o n -b o rro wi n g b ro th er, t h e pro p ert y wo ul d n o t b e

au t o m at i cal l y

p l ed g ed t o s ecu re t h e d eb t o f t h e b o rro wi n g b ro t h er. 8

8 If Ag Geo rg i a w a n t ed t o av o i d t h e l im it at i o n wi t h o u t o b t ai n i n g t h e ex p res s

co n sen t o f t h e o th er b ro t h er, it co u ld h av e i n cl u d ed l an gu ag e i n t h e deed s peci fi cal l y

referen ci n g OCGA § 4 4 -1 4 -1 an d p l ai n l y an d u n am b ig u o u s l y p ro vi d ed t h at t h e n o n

b o rro wi ng b ro th er co n s en t ed t o h i s s h are o f t he real t y act i n g as s ecu ri ty fo r t h e o t h er

b ro t h er’ s fu t ure l o an s

.

13Ad d it i on al l y

, ”[t ] h e p art i es ’ i n t erp ret at i o n i s en ti t led t o great

, i f n o t co n t ro l l i n g,

i n fl u en ce, an d w i l l g en eral l y b e ad o p ted an d fo l l o w ed b y t he co u rt s

, p art i cu l a r ly wh en

t h e p art i es ’ i n t erp ret at i o n is m ad e b efo re an y co n t ro v ers y

, o r wh en t h e co ns t ru ct i o n

o f o ne p art y is ag ai n s t h i s i nt eres t

. ” (Ci t at i o ns an d p u n ct u at i o n o m i t ted .) An d e r s o n

v. An d er s o n

, 2 7 4 Ga. 22 4

, 22 6 (2 ) (5 5 2 SE2 d 8 0 1 ) (2 0 0 1 ). Th u s

, “ th e c o ns t ru ct i o n

p l aced u p o n a co nt ract b y t he p art i es t h eret o , as s h own b y t h ei r act s an d co n d u ct

, i s

en t i t l ed t o m

u c h wei g ht an d m ay b e co n cl u s i v e u p on t hem .” (Ci t at i o n s an d

p u n ct u at i o n o m i t t ed

. ) Co h en v. S a n d y S p ri n g s Cr o s s i n g As so cs

., L.P.

, 2 3 8 G a. Ap p.

7 1 1 , 7 1 2 -7 1 3 (5 2 0 SE2 d 1 7 ) (1 9 9 9 ).

Al t h ou g h n o t ex p res sl y ack no w l ed g ed b y Ag Geo rg i a, it ap p ears u n d i s p u t ed

t h at Ag Geo rg i a h ad ro u t i n el y o b t ai ned t h e n o n -b o rro wi ng b ro t h er’ s co n s en t t o l o an s

ex t en d ed t o th e ot h er b ro t h er u n d er t h e v i rt u al l y id en t i cal S e c t i o n T w o o f t h e 1 9 9 7

d eed s, 9 an d t h e o n l y reas o n t h at ap p ears i n t h e reco rd t o ex p l ai n wh y Ag Geo rg i a

ceas ed o b t ai n i n g t h e wri t ten co n s en t s was t es t i m o n y b y an Ag Geo rg i a fo rm er

em pl o y ee t h at d u e to ch an g es i n i t s co m p u ter p ro g ram

, t he co n s en t s were n o l o n g er

9 On e s u ch co n s e n t

, e x e c u t ed b y Ed wi n i n 2 0 0 2

, i s co n t ai n ed i n t h e reco rd

. Th at co n s en t p ro v i d es : “ [t ] h e u n d ers i gn ed (wh et h er o n e o r m o re), h av i n g an i n t eres t

i n t h e real p ro p ert y des cri b ed i n t h e s ecu ri t y in st ru m en t ab o v e referen ced

, h ereb y

co n sen t t o t h e m ak i n g o f an ad v an ce i n th e am o u nt o f $2 1 7,3 0 0 .0 0 an d ack n o wl ed g e

t h at s u ch i s s ecu red b y

t h e s ecu ri t y

i n s t ru m en t

. ”

14au t o m at i cal l y g en erat ed wh en t h e l o an d o cu m en t s were g en erat ed

. Fu rt h er, Do n al d

t es t i fi ed an d av erred t h a t A g G eo rg i a h ad req u es t ed t h at he t ak e a co n s en t fo rm to

Ed wi n t o s i g n fo r o ne o f h i s s u b s eq u en t l o an s

. Acco rd i n g l y, A g G e o r g i a’ s o wn

p ract i ces d em o n s t rat e t h a t a t l eas t u p u n t i l a cert ai n p o i n t

, i t h ad ad h ered t o t h e

l an g u ag e i n s i d e t h e p aren t h et i cal wh en ex t en d i ng a l o an t o o n e o f t h e Bro t h ers

.

Ap p li cat i o n o f t h es e wel l -es t ab l i s h ed ru l es o f s t at u t o ry co n s tru ct i on res o l v es

t h e am b i g u i t y i n t h i s cas e i n fav o r o f t h e co n st ru ct io n p l a c e d o n Sect io n Two by

Do n al d

. Acco rd i n g ly , we co n cl u d e t h at Sect i o n Two req u i red wri tt en co n s en t fro m

t h e n o n -b o rro wi n g b ro t h er in ord er fo r t h e Farm t o b e p l ed g ed as s ecu ri t y fo r fu t u re

l o an s t o t h e o t her b r ot her. It fo ll o w s t h at Ag Geo rg i a wro n g fu l l y fo recl o s ed o n

Do n al d ’ s S u b seq uen t Lo an s an d Ed wi n ’ s 20 0 9 Lo an b ecau s e n o co n s en t was

o b t ai n ed an d n o n e o f t h o s e d eb t s were s ecu red b y t h e 2 0 04 Deed s

.

(b ) S ect i o n Th r ee a nd th e Ma r ch 2 0 0 4 Lo a n

. Bu t t h at d o es n ot en d o ur an al y s i s

b ecau s e A g Geo rg i a arg u es t h at ev en i f Ag Geo rg i a w as req u i red t o o b t ai n co n s en t

u n d er Sect i o n Two

, it s fai lu re t o d o s o d i d n o t ren der t h e fo recl o s ure “ wro n g fu l ”

b ecau s e Do n al d ’ s M ar c h 2 0 0 4 l o an was secu red b y Sect io n Th ree o f DSD No

. 1,

wh i ch d i d n o t co nt ai n an y co n s en t req u i rem en t

. On ce ag ai n

, h o wev er, t h e p art i es

p l ace v ary in g i n t erp ret at i o ns o n t h i s p ro v i s i o n o f t h e d eed

.

15Sect io n Thr e e pr ovide s in r e l ev an t p art t hat “ al l o t h er i nd eb t ed n es s o f Bo rro wer

t o Len d er, no w d u e o r t o b eco m e d u e, (wh et h er d i rect ly o r in d irect l y ) o r h ereaft er to

b e co n t ract ed

, . . .” i s s ecu red u nd er t h e term s o f t h e d eed

. Do nal d arg u es t h at b ecau s e

Sect i o n Th ree refers t o “ o t h e r ” l o an s

, bo t h p re-ex i s t i n g an d t h o s e t h at m i gh t o ccu r

l at er, an d Sect i o n Tw o r e f e r s t o s u b s eq u en t l o an s t h at are ev i d en ced b y a n o t e,

Sect i o n Th ree m

u s t n eces s ari ly refer o n l y t o l o an s w h i ch are n o t ev i d en ced b y a n o t e

o r n ot es

. In co n t ras t, Ag Geo rg i a d i rect s o u r at t en t i o n to t he w o rd “ o th er” an d arg u es

t h at t he u s e o f t h i s wo rd m erel y d i s ti n g ui s h e s t h e d e b t s co v ered b y Sect i o n Th ree

fro m t h o s e co v ered b y

Sect i o n s On e an d Two

.

Ho wev e r

, w e n e ed no t b el ab o r t h e m ean i n g o f Sect i o n T hree, b ecau s e we

b el i ev e t h e M arch 2 0 04 no t e was u n s ecu r ed fo r an o t her reas o n. As ex p l ai n ed in

Di v is i o n 1 , OCGA § 4 4 -1 4 -1 (b ) s p eci fi cal l y l i m i ts th e op erat i o n o f s u ch o p en -en d

o r d rag n et cl au s es t o “ t he ori g i n al p art i es t o t h e s ecu ri t y i n s tru m en t ,” an d t h u s n ei t h er

t h e p re-ex i st i n g no r t h e s u b s eq u en t d eb t s o f t h e i n d i v i d u al b ro t h ers were s ecu red by

t h e n o te w i t h o u t a cl ear an d u n am b i g u o us ex p res s i o n o f s u ch an i n t en t. See S u t t o n

,

1 6 7 Ga. Ap p

. at 86 3

. Here, t h e M arch 2 0 04 lo an w as o bt ai ned fo r an ex p res s p u rp o s e

o f s ecu ri n g a cert ai n p i ece o f farm eq u i p m en t

, an d t he farm eq u i p m en t p urch as ed wi th

t h e l oan p ro ceed s was p l ed g ed as s ecu ri t y fo r t h e l o an

. On l y o n e o u t s t an d i n g l o an was

16s p eci fi ed i n th e d eed

, an d Do n al d t es t ifi ed t hat t h e p art i es n ev er di s cu ss ed t h e Farm

b ei n g p l ed g ed as ad d it i o n al s ecu ri t y fo r t h e M arch 2 0 0 4 eq u i p m en t l oan

.

Becau s e n o n e o f t h e n o t es d ecl ared i n d efau l t w ere s ecu red b y t h e 2 00 4 Deed s

,

Ag Geo rg i a h ad no au t h o ri t y t o fo recl o s e u n d er t h e t erm s o f t h o s e d eed s

. Acco rd i n g l y

,

t h e t ri al co u rt erred by g ran t i n g p a r t i al s u m m ary ju d g m en t t o Ag G eo rg i a; i n s t ead

,

p art i al s u m

m ary ju d gm en t s h o u l d h av e b een g ran t ed t o Do nal d

.

2

. Becau s e o f o u r h o l d i ng s i n Di v i s i o n s 1 an d 2

, we n eed no t reach t h e q u es t i o n

o f wh et h er Ag Geo rg i a i m pro perl y ex erci s ed t h e p o wer o f sal e co n tai n ed in t h e d eed s

b ecau s e i t h ad as s i g n ed b o t h t h e n o t e s an d t h e 20 0 4 Deed s t o Ag Fi rs t p ri o r to

i n s t i t u t i n g t h e fo recl o su re p ro ceed i n g s

.

Ju d g men t r ever

s ed

. An d r ews

, P. J., Di ll ar d a n d Bo g gs

, JJ., co n cu r

. Ba r n es

, P.

J., Ph i p p s, P. J., a n d Ra

y, J., d i s s en t

.

17A1 5 A0 48 6 . CLARK v . AGGEORGIA FARM CREDIT ACA.

R A Y , J u d g e, d is s en t i n g

.

W h i l e I ag ree w i t h t h e m ajo ri t y 's deci s i o n to rev e r s e t h e s u m m ary ju d g m en t

wh i ch was g ran t ed i n fav o r o f Ag Geo rg i a, al t h o ug h I d o n o t n eces s ari l y ag ree wi th

ev ery t hi n g t h at w as wri tt en i n s u p p o rt o f t hat co n cl u s i o n

, I m u s t di s s en t fro m t h e

m ajo ri ty 's d eci s i o n th at t h e t ri al co u rt s h o ul d h av e i n st ead g ran t ed s u m m ary ju d g m en t

i n fav o r o f Do n al d . In m y v i ew, t h e en t iret y o f t h is d i s p u t e s h o u l d be res o lv ed i n a

ju ry t ri al

. Du e t o t h e i n h eren t i n co n s i s t en cy i n th e ap p li cab l e cl au ses i n t h e l o an

d o cu m en t s

, as wel l as t h e u n i q u e ci rcu m s t an ces o f t h i s cas e wh erei n Do nal d 's cl ai m s

h av e ev o lv ed d u ri n g t h e l i t ig at i o n t o cas t h i m s el f i n a p o s i t i o n of ev en g reat er h arm

d es p it e t h e i m

pl i ci t ack no wl ed g m en t i n h i s o ri g i n al c o m p lai n t t hat s o m e act i o n by

Ag Geo rg i a as t o t h e s u b

ject p ro p ert y was pro p er g i v en hi s i n d eb t ed n es s t h eret o

, an d

t h e fact th at am

b i g u i t y rem ai n s as t o bo t h t h e m ean i n g o f t h e co n t ract p ro v i s i o n s an d

t h e i n t en t o f t h e part i es ev en aft er t h e ap pl i cat io n o f t h e n o rm al ru l es o f co n s t ru ct i o n,I w o u l d i n s t ead ret u rn t h i s cas e t o t h e t ri al co u rt t o al l o w t h e p art i es t o pres en t t h ei r

cl ai m s t o a ju ry to s ort o u t t he res p ect i v e co n t ract ri gh t s an d eq u i t i es o f t he s i t u at i o n.

I a m au t h o ri zed t o s t at e t h at Pres i d in g J u d g e Barn es an d Pres i d i n g J u d g e

Ph i p ps jo i n i n t h i s d i s s en t

.

2