SECOND DI VI SI ON
A NDREWS, P. J.

, M C F A D DEN and RA

Y, JJ.

N O T IC E : M otions for r e c ons i de r a tion m us t be ph y sic a l ly r e ce iv ed i n our c le r k ’s offic 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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October 20, 2014



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A1 4 A1 31 6 . OW EN v . BANK OF THE OZARKS.

M C F A D D E N , J u d g e.

Th i s ap p eal i s fro m a g ran t o f s u m m ary ju dg m en t t o a b an k o n t wo p ro m i s s o ry

n o t es s i g n ed b y ap p el l an t in fav o r o f t h e b an k ’ s pred eces s o r. Ap p el lan t ’ s d efen s es are

b arred b y th e D’Oen ch

, Du h me d o ct ri n e , w h i ch g en eral l y ren d ers o ral ag reem en t s

b et ween d eb t o rs an d fai l ed b an k s un en fo rceab l e ag ai n s t ban k i n g au t h o ri t i es an d t h ei r

as s i g n ees

. Co n s eq u en t l y t h ere are n o g en u in e i s s u es o f m at eri al fact

, an d w e affi rm

.

Su m m ary ju d g m en t is p ro p er wh en t h ere i s n o gen u i n e i s s u e o f m at eri al fact

an d t h e m o v an t i s en ti t l ed t o ju d g m en t as a m at t er o f l aw. OCGA § 9 -1 1 -5 6 (c). “ A

d e n o v o st an d ard o f rev iew ap pl i es t o an ap p eal fro m a g ran t o f s u m m ary ju d g m en t

,

an d we v iew t h e ev i d en ce, an d al l reas o n ab l e co n cl u s i o n s an d in feren ces d rawn fro mi t

, in t he l i g h t m o s t fav o rab l e t o t h e n o n m o v an t

. ” W o od en v. S yn o vu s Ba nk

, 3 2 5 Ga.

Ap p . 8 7 6 , 8 7 6 -8 7 7 (7 56 SE2 d 1 9 ) (2 0 1 4 ) (ci t at i o n o m i t t ed ).

So v i ewed

, t h e reco rd s h ows t h at ap p el l an t Ben jam i n Carl Owen ex ecu t ed t wo

p ro m i s s o ry n ot es i n fav or o f Fi rs t Ch o ice Co m m u n it y Ban k

. On A p ri l 1 0

, 2 0 0 9

, h e

ex ecu t ed a n o t e fo r $ 28 8 ,0 0 0 an d o n Decem b er 2 2, 2 0 0 9

, h e ex ecu t ed a n o t e fo r

$ 5 1 3 ,5 6 0 .9 7

. On A p ri l 2 9

, 2 0 1 1

, Fi rs t Ch oi ce fai l ed

, an d t h e FDIC was ap p o i n t ed as

i t s recei v er. Th e FDIC as s i gn ed Owen ’ s n o tes t o ap p el l ee Ban k o f t he Ozark s (“ t h e

b an k”), v i a al l on g es an d a Pu rch as e an d As s u m p t i on Ag reem en t

.

Owen d efau l t ed o n t h e n o t es , an d t h e ban k dem an d ed p ay m en t

. Aft er Owen

fai l ed to pay , t h e b an k fi l ed t h e i n s t an t co m p l ai n t. Fi n d i n g th at Owen d id n o t d i s p u t e

t h e e x i s t e n c e o f t h e l o an s, h i s ex ecu t i o n o f t h e l o an d o cu m en ts

, an d t h e b an k ’ s

cal cu l at io n o f t h e b al an ce d u e, th e t ri al co u rt d et erm i n ed t hat t h e ban k h ad es t ab l i s h ed

a p ri m a faci e cas e as a m at t er o f l aw. See L. D. F

. Fa mi l y Fa r m, In c. v. Ch a r t er b a nk

,

3 2 6 Ga. Ap p

. 3 6 1

, 3 6 3 (7 5 6 S E 2 d 5 9 3 ) (2 01 4 ). Th e co u rt t hen h el d t h at Owen h ad

n o t es t ab l i s h ed a v al i d affi rm at i v e d efen s e an d g ran t ed s u m m ary ju d g m en t i n fav o r

o f t h e b an k . Owen ap p eal s

.

Owen arg u es t h at wh et h er t h e p art ies had m o di fi ed t h e re-p ay m en t t erm s o f t h e

n o t es was a q u es t i o n o f fact

. Sp eci fi cal l y , h e arg u es t h at Fi rs t Ch o i ce h ad ag reed t h at

2Owen wo u l d p ay i n t eres t o n t h e l o an s d u ri n g t h ei r t erm s ; t h at Owen wo ul d p ay t h e

p ri n ci p al wh en t h e p r o p e r t i e s s ecu ri n g t h e l o an s were s ol d ; an d t h at Fi rs t Ch o i ce

wo u l d co n t i n u e to ren ew t h e lo an s u n t i l t hen

. As ev i d en ce o f th i s ag reem en t

, Owen

p o i n t s t o h is o wn affi d av i t

. Owen d o es n o t al l eg e t h at t h i s ag reem en t was in wri t i n g,

n o r d o es he p oi n t to an y wri t i n g i n t h e reco rd refl ect i n g th e ag reem en t

. H e al s o arg u es

t h at b ecau s e of t h i s o ral ag reem en t

, t h e b an k w as es t op p ed fro m en fo rci n g t h e t erm s

o f t h e n o t es an d h ad a d u t y t o m i t i g at e i t s d am ag es b y fo recl o s in g o n t h e p ro p ert i es

s ecu ri n g t h e n o t es

.

Th e t ri al co u rt ru l ed t h a t O w e n ’ s d efen ses were b arred by t h e d o ct ri n e

an n ou n ced i n D ’Oen ch

, Du h me & Co

. v. Fed . Dep os i t In s . Co rp

. , 3 1 5 U.S. 4 4 7 (6 2

SCt 6 7 6

, 8 6 LE 9 56 ) (1 9 4 2 ) an d b y 1 2 USC § 1 8 23 (e), a p ro v i s io n of t h e Fi n an ci al

In s t i t u t i o n s Refo rm , Reco very an d En fo rcem en t Act t h at co d i fi ed t h e D ’Oen ch

,

Du h me d o ct ri n e. See Fi r

s t U n io n Na t l

. B a n k v

. H

a ll

, 1 2 3 F3 d 1 3 7 4, 1 3 7 9 n

. 9 (III)

(B) (1 1 t h Ci r. 1 9 9 7 ). W e ag ree.

Un d er D’Oen ch

, Du h m e , i n g en eral

, “ o ral ag reem en t s b et we e n d e b t o rs an d

fai l ed b an k s wi l l no t b e en fo rced ag ai n s t b an k i n g au t h o ri t i es ” an d t h ei r as s i g n ees

.

Gr a vi t t v. Ba n k o

f t h e Oz ar ks

, 3 2 6 Ga. Ap p

. 4 6 1

, 4 6 4 (1 ) (7 5 6 SE2 d 6 9 5 ) (2 0 1 4 )

(ci t at i o n s o m i t ted ). “

D’Oen c h

, Du h m e an d i t s p ro g en y en ab l e t h e FDIC, an d b an k s

3t h at acq u i re i n s o l v en t b an k s ’ as s et s fro m t h e FDIC

, t o m a k e q u i ck an d accu rat e

ap p rai s al s o f t h e val u e o f i n so l v en t b an k s ’ as s et s b y p ro t ect i ng t h e FDIC an d i t s

t ran s ferees ag ai ns t u n di s c l o s ed ag reem en t s th at wo u l d un ex p ect ed l y di m i n i s h t h e

v al u e o f t h os e as s et s

. ” Fi r s t Un i o n , 1 2 3 F3 d at 1 3 7 9 (III) (B) (fo o t n o t e o m i t t ed ).

Owen arg u es t hat t h e D’Oen ch

, Du hme d o ct ri n e d o es n o t ap p ly b ecau s e i n i t s

ag reem en t wi t h t he FDIC, t h e b an k vo l u nt ari l y accep t ed t h e m o d i f i c at i o n s t o t h e

t erm s of t h e l o a n s

. He p o i n ts t o p arag rap h 2.1 (n ) i n t h e Pu rch as e an d As s u m p t i o n

Ag reem en t bet ween t h e FDIC an d t h e b an k

. T h at p arag rap h

, en t i t l e d Li ab i l i ti es

As s um ed b y

As su m i n g In s ti t u t i o n , p ro v i d es ,

Th e As s u m i ng In s t i t u t i o n ex p res sl y as s u m es at Bo o k V al u e (s u bject t o

a d ju s t m en t p u rs u an t t o A rt i cl e VIII) an d ag rees t o p ay , p erfo rm a n d

d i s ch arg e, al l o f t h e fo l l o wi n g l i ab il i ti es o f th e F a i l e d Ban k as o f th e

Ban k Cl o s i n g Dat e, ex cep t as o t herw i s e p ro v i d ed i n t h i s A g reem en t
(s u ch l i ab i l i t i es referred t o as “ Li ab i l i t i es As s u m ed ”): a l l as s et -rel at ed

o ffen s i v e l i t i g a t i o n l iab i l i t i es an d al l as s et -rel at ed defen s i v e l i t i gat i o n

l i ab i l i t i es , b u t on l

y t o t h e ext en t

s u ch l i a bi l i t i es r el a t e t o a s s et s s u b j ect

t o a S ha r ed -Lo ss Ag r eemen t

, an d p r o v i d ed t h at al l o th er d efen s iv e

l i ti g at i o n an d an y cl as s act i o n s wi t h res p ect to cred it card b u s i n es s are

ret ai ned b y

t h e Recei v er.

(Em p h as i s s u p p li ed .) A Co m

m erci al Sh ared- L oss Ag reem en t i s at tach ed as an ex h i b i t

t o t h e Pu rch as e an d As s u m p t i o n Ag reem en t

. Bu t Owen do es n o t p o i nt t o an y

4ev i d en ce (o r ev en arg u e) t h at hi s l o an s were s u b ject t o t h e Sh ared -Lo s s Ag reem en t

.

In t h e ab sen ce o f s p eci fi c al l eg at i o n s o r ev i d en ce t h at t he l o an s are s h ared -l o s s l o an s ,

t h e reco rd p ro v i des n o s up p o rt fo r h i s cl ai m th at Parag rap h 2 .1 (n ) ap p l ies t o ex cep t

h i s o b l i g at i o n fro m t h e D’Oen ch , Du h me d o ct ri n e.

Ev en as s u m i ng t h at Owen ’ s l o an s are s ub ject t o t h e Sh ared -Lo s s Ag reem en t

,

h e h as no t s h o wn t h at h e can av ai l h i m s el f o f Parag rap h 2 .1 (n ), b ecau s e h e h as n ot

s h o wn t h at h e i s an in t en d ed b en efi ci ary o f t hat p ro v i s i o n i n p art i cu l ar o r o f t h e

co n tract s b et ween t h e FDIC an d t h e b an k i n g en eral . See A r ch er W . Co n t r s ., Lt d

. v.

Es t a t e o f Pi t t s , 29 2 Ga. 2 1 9

, 2 2 6 -2 2 7 (2 ) (7 3 5 SE2 d 7 7 2 ) (2 0 1 2 ) (t h i rd p art y

b en efi ci ary can o n l y en fo rce t h o s e p ro m i s es m ad e d i r e c t l y fo r h is b en efi t ). Th e

Sh ared -Lo s s Ag reem en t ex p res s l y p ro vi d es t h at i t

i s fo r t h e s ol e an d ex cl u s i v e b en efi t o f t h e part i es an d t h ei r res p ect iv e

p erm i t t ed s u cces s o rs an d p erm i t t ed as s i g n s an d th ere s h al l b e n o o t h er

t h i rd p art y b en efi ci ari es

. No t h i n g i n t h is Ag reem en t s h al l b e co n s t ru ed

t o g ran t t o an y o t h er Pers o n an y ri g h t

, rem ed y or cl ai m u n d er or i n

res p ect o f t h i s Ag reem en t o r an y p ro v i s i o n h ereo f.

Owen can n o t ove r c om e the a pplic a tion of the l o n g s tan d i n g D’Oen ch

, Du hme d o ct ri n e

b y rel y i n g o n co n tract u al l an gu ag e wh i ch t h e b an k an d t h e FDIC n ev er i nt en d ed to

b en e f i t h i m

. See B a n k o

f t h e Oz a r

ks v. Cr o cket t

, 20 1 3 U.S. D i st

. LEXIS 1 0 7 0 3 5

5(Cas e No

. 3 : 1 3 -CV-2 3

, M

. D. Ga. d eci d ed J ul y 3 1

, 20 1 3 ); Ca i r es v. JPMo r g a n Ch a s e

Ba n k

, 88 0 FSu pp 2 d 2 8 8, 3 0 1 -3 0 2 (1 ) (b ) (D. Co n n

. 20 1 2 ). G i v en o u r h o l d i n g t h at t h e

o ral ag reem en t i s n o t en fo rceab l e, Owen ’ s rem ai ni n g arg um en ts h av e n o m eri t

.

Ju d g men t a f f i r m ed . An d

r ews , P. J., a n d

Ra y, J., co n cu r

.

6