FI FTH DI VI SI ON

M CFA DDEN, P. J.

, BRA NCH and BETHEL, 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.

http://w w w .ga a ppe a l s .us /r ule s

June 20, 2017



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A1 7 A0 50 9

. M ONTIA v. FIRST-CITIZENS B A N K & TRUST

COM PANY et al

.

M C F A D D E N , Pres id i n g J u d g e.

In t h i s q u i et t it l e act i o n

, p et i t i o n er M u ri el M o nt i a ap p eal s fro m t wo o rd ers : t h e

t ri al co u rt ’ s g ran t o f a m o t i o n t o d i s m i s s fo r fai l u re t o s t at e a cl ai m fi l ed by

res p o n d en ts Ocwen Lo an Serv i ci n g

, L LC (“ Ocwen ”) an d HSBC Ban k USA Nat i o n al

As s oci at i o n as Tru s t ee fo r Ace Secu ri t i es C o r p

. Ho m e Eq u i t y Lo an Tru s t Seri es

2 0 0 3 -OP1 (“ HSBC”), an d t h e t ri al co u rt ’ s g ran t o f a m o t i o n fo r j u d gm en t o n t h e

p l ead i n g s an d fo r s u m

m ary ju dg m en t fi l ed b y res p o n d en t Fi rs t-Ci t i zen s Ban k & Tru s t

Co m p an y (“ Fi rs t -Ci t i zen s ”). In s ev eral en u m e r at i o n s, M o nt i a arg ues t h at t h e t ri al

c o u r t erred i n g ran t in g t h es e m o t io n s rat her t h an s ub m i t ti n g t h e cas e t o a s p eci a l

m as t er. W e fi n d

, h o wev er, t h at t h e t ri al co u rt was au th o ri zed t o d i s m i s s th e p et i t i o nfo r fai l u re t o s t at e a cl ai m an d t o g ran t ju d g m en t o n t he p l ead i ng s wi t h o u t s u b m i t t i n g

t h e cas e t o a s peci al m as t er, s o we affi rm

. G i v e n t h i s d i s p o s it i on

, t h e i s s u e o f

s u m m ary ju d g m en t i s m oo t

. W hi t e v. Lu mp ki n

, 2 72 Ga. 3 9 8 (5 2 9 SE2 d 87 9 ) (2 0 0 0 ).

Th i s act io n i n v o l v es real p ro p er t y acq u i red b y Mo n t i a i n 2 0 03

. Th e p ro p ert y

i s s u b ject t o t wo r e c o r d ed d eed s t o secu re d eb t. On e d eed t o s ecu re d eb t i s i n fav o r

o f an en ti t y t hat l a t e r as s i g n ed t h e d eed t o H SBC. HSBC u sed Ocwen

, a l o an

s erv i ci n g co m

p an y

, t o t ry t o co l l ect t h at d eb t fro m M o n ti a. Th e s eco n d d eed t o s ecu re

d eb t is i n fav o r o f an en t i ty t h at l at er wen t i n to recei vers h i p ; i t s recei v er s u bs eq u en t l y

as s i g n ed t h e d eed t o Cap it o l Ci t y Ban k & Tru s t

, a di v i s i o n o f an d as s u m ed n am e u s ed

b y Fi rs t -Ci t i zen s

.

M o n t i a fi led a p et i t i o n t o q u i et t i t le ag ai n s t al l t h e wo rl d u n d er OCGA § § 2 3 -3

-

6 0 et s eq

. o f Geo rg i a’ s Qu i et T i t l e Act

. Sh e al l eg ed i n h er p et i t i o n t h at Fi rs t -Ci t i zen s

,

Ocwen

, an d HSBC h ad cl ai m s ad v ers e t o h e r i n teres t i n t h e p ro p ert y t h at were

wi t h o u t l eg al b as is an d co ns t it u t ed cl o u d s o n h er t i tl e. Sh e al s o as k ed t h at t h e cas e b e

s u b m i t t ed t o a s p eci al m as t er p u rs u an t t o OCGA § 2 3 -3 -6 3

.

M o n t i a h ers el f arran g ed fo r s erv i ce o f p ro ces s u p o n th e res p o nd en t s

, al t h o u g h

g e n eral l y t h e Q u iet T i t l e Act req u i res t h at s erv i ce b e m ad e by a s p eci al m a s t e r

.

OCGA § 2 3 -3 -6 5 (b ); W

o o d r u f f v. Mo rg a n C o u n t

y

, 2 8 4 Ga. 6 51

, 6 5 1 -6 5 2 (1 ) (6 7 0

2SE2 d 4 1 5 ) (2 0 0 8). Becau s e “ a s p eci al m as ter was n ev er ap po i n t ed s uch th at s erv i ce

co u ld b e p ro p erl y co m

pl et ed pu rs u an t t o t h e Qu i et T i t l e A ct [,] t h e [res p o n den t s ] were

n o t req u i red t o a n s w e r [M o n t i a’ s p et i ti o n .] ” W o od r uf f

, 2 8 4 Ga. at 6 5 2 (1 ).

Nev ert h el es s

, O cwen

, HSBC, an d Fi rs t -Ci t i zen s an s w ered t h e p et i t i o n an d fi l ed t h ei r

m o ti o n s. Ocwen an d HSBC fi l ed a jo i n t m o t i o n t o d i s m i ss t he p et it i o n fo r fai l u re to

s t at e a cl ai m

. Fi rs t-Ci ti zen s fi l ed a m o t i o n fo r ju d g m en t on t h e p l ead i n g s

, b as i n g t h at

req u es t o n t h e p e t i t i o n

, th e an s wer, an d t h e d o cu m en t s at t ach ed t o t h o s e p l ead i n g s

.

(In i ts m o t i o n

, Fi rs t -Ci ti zen s al s o s o u g h t s um m ary ju d g m en t b as e d o n ev i d en ce

o u t s i d e t h e p lead i ng s

. ) Th e t ri al co u rt g ran t ed t h e m ot i o n s w i thout s ub m i t t i n g t h e cas e

t o a s p eci al m as t er.

Th e m o t i o n t o di s m is s an d t h e m o t i o n fo r ju d g m en t o n t h e p l ead in g s p res en t ed

t h e t r i al co urt wi t h t h e s am e q u es ti o n: wo u ld Mo n t i a b e en t i t l ed t o rel i ef u nd er an y

s t at e o f fact s t h at s h e co ul d p ro v e i n s u pp o rt o f h er cl ai m ? W h ere, as h ere,

t h e p art y m o v i n g fo r ju d g m en t o n t h e p l ead i n g s d o es n o t in t ro d u ce

affi d av i t s ,[ 1 ] d ep o s i t i o ns

, o r i n t e r r o g a t o ri es i n s u p p o rt o f h i s m o t i o n

,

s u ch m o t io n is t h e eq u i v al en t o f a m ot io n t o d is m i ss t h e co m p l ai n t fo r

fai l u re t o st at e a cl ai m u p o n w h i ch rel ief can b e g ran t ed

. T h e m o t i o n t o

1 Fi rs t -Ci t i zen d i d in t ro d u ce an affi dav i t to s u p p ort i t s req u es t fo r s u m m ary

ju d g m en t

. It s m o t i o n an d b ri ef m ak e cl ear, h o wev er, t h at Fi rs t-Ci t i zen d i d n o t rel y o n

t h e affi d av i t t o s u p p o rt i t s req u es t fo r ju d g m en t o n t h e p lead i n g s.

3d i s m i s s s h o u l d n o t b e g ran t ed u n l e s s t h e av erm en t s i n t h e co m p l ai n t

d i s cl o s e wi th ce r t a i n t y t h at t h e p lai n t i ff wo u l d n ot be en ti t l ed t o rel i ef

u n d er an y s t at e o f fact s wh i ch co u l d be p ro v ed i n s u p p ort o f h i s [o r h er]

cl ai m

.

Co x v. Tu r n er

, 2 6 8 Ga. Ap p

. 30 5 (1 ) (6 0 1 SE2 d 7 28 ) (2 0 0 4 ) (ci t at io n o m i t t ed ). W h en

ru l i n g o n a m o t i o n t o d i s m i s s fo r fai l u re t o s t at e a cl ai m or a m o ti o n fo r ju dg m en t o n

t h e p lead i n g s

, a tri al co u rt m ay co n s i d er ex h i b i t s at t ach ed t o an d i n co rp o rat ed i n t o t h e

co m p l ai n t an d an s wer. See OCGA § 9 -1 1 -1 0 (c); Tr op

, In c. v. Ci t y of Br o okh a ven

,

2 9 6 Ga. 8 5

, 8 9 (2 ) (7 6 4 SE2 d 3 9 8 ) (2 0 1 4 ); S h e l n u t t v. Ma

yo r a n d Al d

er men o f t h e

Ci t y o f S a va n n a h

, 3 3 3 G a

. Ap p

. 4 46 (7 7 6 SE2 d 6 5 0 ) (2 0 1 5 ). W e rev i ew t h e t ri al

co u rt ’ s ru l i n g s on th es e m o t i o n s d e n o v o

. S o u t h wes t Hea l t h & W

el l n es s, LLC v. W

o r k

,

2 8 2 Ga. Ap p . 6 1 9 , 6 2 3 (2 ) (6 39 SE2 d 5 7 0 ) (2 0 0 6).

OCGA § 2 3 -3 -6 2 s et s fo rt h t h e s t at u t ory req ui rem en t s o f a p et i t i o n t o q u i et t i t l e

ag ai n s t al l t he wo rl d u n d e r OC G A § § 2 3-3 -6 0 et s eq

. A p et i t io n t h at

, o n i t s face,

ap p ears t o b e in n o nco m p l ian ce wi t h OCGA § 2 3 -3 -6 2 i s su b jec t t o d i s m i s s al

b ecau s e, “ [i ] n t h at cas e, n o ev i d en ce wh i ch m i gh t b e in tro d u ced wi t h in th e fram ewo rk

o f t h e [p et i t io n ] co u l d s u st ai n a g ran t o f rel i ef.” GHG, In c. v. Br ya n

, 2 75 Ga

. A p p

.

3 3 6 (1 ) (5 6 6 SE2 d 6 6 2 ) (2 0 0 2 ) (ci tat i o n an d p u n ct u at i on o m it t ed ). A p e t i t i o n m u s t

co n tai n

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

, a “ s p eci fi cat i o n o f t h e p et i t io n er’ s i n teres t i n th e l an d [.] ”

4OCGA § 2 3 -3 -6 s (b ). Th e p et i t io n er “ m u st as sert t h at [s ] h e ho l ds s o m e cu rren t reco rd

t i tl e o r cu rren t p res cri p t i v e t i t l e, i n o rd er t o m ai n t ai n h [ e r ] s u i t .” Smi t h v. Geo r g ia

Ka o l in Co

. , 2 6 9 Ga. 4 7 5

, 47 7 (2 ) (4 9 8 SE2 d 2 6 6 ) (1 9 9 8 ) (ci t at i o n

, pu n ct uat i o n

, an d

em ph as i s o m i t t ed ). Th e “ p l ai nt i ff’ s ri g h t t o reco v ery o r rel i ef d ep en d s u p o n t h e

s t ren gt h o f h [er] own t i t l e to t h e real t y i n v o l v ed

, n o t t h e w eak n es s o f h [er] op p o n en t s ’

ev i d en ce.” Id . (ci t at i on an d p u n ct u at i o n o m i t ted ).

Do cu m en t s referen ced i n an d at t ach ed t o t h e p et i t i o n an d an s wers i n t h i s cas e

s h o w t h at M o n t i a w as t h e g ran t o r o f t wo deed s t o s ecu re d eb t o n t h e p ro p ert y

. In h er

p et i t i o n

, M o n t i a as sert ed t h at s h e h el d t i t l e to t h e p ro p ert y b y v i r t u e o f a reco rd ed

warran t y d eed t h at s h e at t ach ed t o h er p et i t i o n

. Bu t sh e al s o ack no wl ed g ed t h e

ex i s t e n ce o f t h e reco rd ed s ecu ri t y d eed in fav o r o f Op t i o n On e an d at t ach ed t o h er

p et i t i o n a co p y o f t he as s i g n m en t o f t h at d eed t o HSBC; an d HSBC at t ach ed a co py

o f t hat s ecu ri t y d eed t o i t s an s wer. An d al t h o u gh

, i n h er p e t i t i o n, Mo nt i a d i d n ot

m en t i o n t h e reco rd ed s ecu ri t y d eed t h at l at er was as si g n ed to Fi rs t -C i t i zen s

, s h e

ack n owl ed ged an d at t ach ed t o h er p et i t i o n a co p y of t hat as s i gn m en t

, an d F i r s t

Ci t i zen s at t ach ed a co p y

o f t h at s ecu ri t y d eed t o i t s an s wer.

5A g ran t o r o f a d eed t o s ecu re d eb t wh o h as n o t p ai d th e d eb t h as n o l eg al t i t l e

t o th e pro p ert y at i s s u e. See McCa rt er v. Ba n ker s Tr us t Co

. , 2 4 7 Ga. A p p

. 12 9

, 1 3 2

(2 ) (5 43 SE2 d 7 55 ) (2 0 0 0 ).

A d eed t o s ecu re d e b t p a s s es l eg al t i t l e t o t h e l en d er wh en th e deed t o

s ecu re d eb t i s c reat ed

, an d th e o wn er h as a m ere eq u i t y o f red em p t i o n

an d ri g h t o f p o ss es s i o n o f t h e real t y u n t il t h e s ecu r ed d eb t has b een

s at i s fi ed i n fu l l.

. . . [A] s a m at t er o f l aw, t i t l e d oes n o t pas s b ack t o th e

g ran to r i n t h e ab s en ce o f fu l l p ay m en t o f t h e d eb t

.

Pa t el v. J. P. Mo r

g a n Ch a s e Ba n k, N. A.

, 3 2 7 Ga. Ap p. 3 2 1

, 3 2 3 (1 ) (7 5 7 SE2 d 4 6 0 )

(2 0 1 4) (ci t at i o n s o m i t t ed ). A p ers o n wh o se pro p ert y i s s u bject to a d eed t o s ecu re

d eb t can n o t prev ai l i n a q u i et t i t l e act i o n u n l es s sh e h as s at i s fi ed t h e deb t

. See Ta yl o r

,

Bea n & W

h i t a ker Mt

g

. Co r p

. v. Br o wn

, 2 7 6 Ga. 8 4 8, 8 5 0 (2 ) (5 8 3 SE2 d 8 44 ) (2 0 0 3 ).

Co n seq u en t l y

, t h e d o cu m en t s at t ach ed t o t h e co m p l ai n t an d an s wer refl ect t h at

M o n ti a d i d n o t h av e l eg al t i t l e t o t h e p ro p ert y

. An d M o n t i a d i d n o t as s ert i n h er

p et i t i o n t h at sh e h ad sat i sfi ed t h e d eb t s o n h er p ro p ert y m em o ri al ized b y t h e d eed s to

s ecu re d eb t

. In st ead

, s h e m erel y an d s u m m ari l y as s ert ed t h at s he h ad l eg al t i t l e t o t h e

p ro p ert y an d t h e res p on den t s d i d n o t

. H e r s t at em en t s t o t h is effect were n o t wel l

p l ead ed fact s b u t l eg al co n cl u s i o n s. “ T h e tri a l co u rt was n o t req u ired t o accep t

[ M o n t i a ’s ] l eg al co n cl u s io n s in co n s i d erat i o n o f t he m o ti o n fo r ju d g m en t o n t h e

6p l ead i n g s [an d th e m o ti o n t o di s m is s ] wh ere t here were n o s p eci fi cal l y pl ed fact s to

s u p p ort t he co n cl us i on s

. ” No va r e Gr o u p v. Sa r i f

, 2 9 0 Ga. 1 8 6

, 1 9 1 ( 4 ) ( 7 1 8 S E2 d

3 0 4 ) (2 0 11 ). Becau s e M on t i a’ s p et i t i o n d i d n ot co m p l y wi t h th e req u i rem en t s o f

OCGA § 2 3 -3 -6 2

, sh e fai l e d t o s t at e a cl ai m fo r q u i et t i t l e fo r wh i ch rel i ef can b e

g ran t ed

. See GHG, In c.

, s u p ra, 2 7 5 G a. at 3 3 6 (1 ). See al so Ba n k o f Amer i ca

, N. A.

v. Jo h n so n

, 2 9 9 G a. 8 6 1, 8 6 4 (2 ) (7 9 2 SE2 d 7 04 ) (2 0 1 6 ) (h ol d in g t ri al co u rt p ro p erl y

g ran t ed m o t i o n t o d i s m i s s p et i ti o n fo r q u iet t i t l e wh ere p et it i o n er n ev er al l eg ed t h at

s ecu ri t y deed o n p ro pert y h ad b een rel i nq u is h ed b ack t o hi m o r o th erwi se can cel l ed

,

an d h e ad m i t t ed h e h ad n o t s at i s fi ed t he d eb t ). Fo r t h i s reas o n

, t he t ri al co u rt was

au t h o ri zed t o g ran t t h e m ot i o n t o d i s m i s s an d t h e m o t i o n f o r ju d g m en t o n t h e

p l ead i n g s

.

Gi v en t h i s d et erm in at i o n

, we are n o t p ers u ad ed by M o n ti a’ s arg um en t t h at t h e

t ri al co u rt s h o u l d h av e s u b m i t t ed t h e cas e t o a s p eci al m as t er. See g en eral l y OCGA

§ 2 3-3 -6 3 (“ Th e co u rt

, u p o n recei p t o f t he p et i t i o n t o g et her wi t h th e p l at an d

i n s t ru m en t s fi l ed t h erewi th

, s h al l su b m i t t h e s am e t o a sp eci al m as t er[.] ”). In q u i et

t i tl e act i o n s ag ai n s t al l t h e wo rl d

, a s p eci al m as t er “ s hal l h av e co m p l et e j u ri s d i ct i o n

wi t h i n t h e s co p e o f t he p l ead i n g s t o as cert a i n an d d et erm i ne t h e v al i d i t y

, n at u re, o r

ex t en t o f p et i ti on er’ s t it l e an d al l o t her i n t eres t s i n th e l an d

, o r an y p art th ereo f, wh i ch

7m ay b e ad v e r s e t o t h e t i t l e cl ai m ed b y t h e pet i t i o n er[.] ” OCGA § 2 3 -3 -6 6

. “ [B] ut

t h ere i s n o au t h o ri t y d i v es t i n g t h e t r i a l c o u rt ’ s ov eral l ju ri s d ict i o n o f t h e cas e.”

Ha r bu ck v. Ho u s to n Co u n ty

, 2 8 4 G a. 4

, 5 (1 ) (6 6 2 SE2 d 1 0 7 ) (2 0 0 8 ) (ci t at i on s

o m it t ed ). An d

, i n a cas e t h at wa s n o t s u b m i t t ed to a s peci al m as t er, o u r Su p rem e

Co u rt n ev e r t h e l es s h el d t h at i t was p ro p er fo r t h e t ri al co u rt to d is m i s s a q u i et t i t l e

p et i t i o n fo r fai li n g to s tat e a cl ai m

. See Ba n k o f Amer i ca

, N. A.

, s u p ra, 29 9 Ga. at 8 6 4

(2 ), rev ers i n g Jo h n so n v. Ba nk o f Amer i ca

, N. A.

, 3 3 3 G a

. A p p

. 5 3 9, 54 3 (3 ) (7 7 3

SE2 d 8 1 0) (2 0 1 5) (i n d i cat i ng t h at cas e h ad n o t b een s u b m i t t ed to a s p eci al m as t er).

Ju d g men t a f f i r m ed . Br a nch a n d

Bet hel , JJ., co n cu r

.

8