FI RST DI VI SI ON

BA RNES, P. J.

, M ERCI ER and BROWN, 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 26, 2019



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A1 9 A0 04 0

. O C ONEE FEDERAL SAVINGS AND LOAN

ASSOCIATION v

. BROW N et al

.

B A R N E S , Pres i d i n g J ud g e.

In t h i s c a s e

, Ken n et h A. Bro wn an d Ap ri l M

. Bro wn s u ed Oco n ee Fed eral

Fi n an c i al Co rp orat i o n an d Oco n ee Fed eral Sav i n g s an d Lo an As s o ci at i o n

(co l l ect i v el y

, “ Oco n ee Fed eral ”), Bri an C. Ran ck

, an d San d ers

, Ran ck & Sk i l l i n g P.

C. (co l l ect i v el y “ t he Ran ck d efen d an t s ”) al leg i n g n um ero u s cau ses o f act i o n s ari s i n g

fro m t h e co u p l e’ s fai led at t em p t t o m o d i fy cert ai n l o an s an d Oco n ee Fed eral ’ s

at t em p t ed f o r e c l o s u re s al e. 1 In a rel at ed ap p eal

, Oco n ee Fed er a l S a vi n gs a n d Lo a n

As s n

. v. Br o wn

, 3 4 9 Ga. Ap p

. 5 4 (8 2 5 SE2 d 4 5 6 ) (2 0 1 9 ) (“ Oco n ee I” ), t h i s Co u rt

rev ers ed t h e g ran t o f an i n terl o cu t o ry i n ju n ct io n en

jo i ni n g t he fo recl o s u re s al e o f t h e

1 Th e Ran ck d efen d an ts were d i s m is s ed wi t h p reju d i ce fro m t he act i o n

.s u b

ject p ro p ert y o wn ed by t h e Bro wn s, up o n fi n d in g t h at t h e B r o w n s h ad n ot

t en d ered t o Oco n ee Fed eral t he am o u n t d u e u n d er a h o m e eq u it y l i ne o f cred i t

(“ HELOC”) ag reem en t. Id

. at 6 5

.

Oco n ee Fed eral al s o fi l ed a m ot i o n fo r s um m ary ju d g m en t o n i t s co u n t ercl ai m

fo r pay m en t o f t h e m o n i es d ue u n d er t he l o an s an d o n t h e Bro wn s ’ s u b s t an t i v e

cl ai m s

, t h e t ri al co u rt ’ s d en ial o f wh ich p ro v i d es t h e b as i s fo r t h e p res en t ap p eal

. Th e

t ri al co urt i s s u ed a cert ifi cat e fo r i m m ed i at e rev i ew, a n d O c o n e e Fed eral fi l ed an

ap p li cat io n fo r an i n t erl o cu to ry ap p eal

, wh i ch t hi s Co u rt g ran t ed

. On ap p eal

, Oco nee

Fed eral co n t en d s th at t h e t ri al co u rt ’ s o rd er erred i n d en y i n g i t s m ot i o n fo r s u m m ary

ju d g m en t o n i t s co un t ercl ai m fo r p ay m en t o f t h e bal an ces o n t h e u n derl y i n g l o an s an d

i n d en y i n g i t s m ot i o n fo r s u m m ary ju d gm en t as t o t h e Bro wn s ’ cl ai m s

.

Su m m ary ju d g m en t i s p ro p er i f t h e p l ead i n gs an d ev i d en ce “ s ho w th at t h ere i s

n o g e n u i n e i s s u e as to an y m at eri al fact an d t h at t h e m o v i n g p art y i s en t i t l ed t o a

ju d g m en t as a m at t er o f l aw[.] ” OCGA § 9 -1 1 -5 6 (c). Fo l l o wi n g a t ri al co u rt ’ s g ran t

o r d en i al o f s u m

m ary ju d g m en t

, we co n d u ct a d e n o v o rev i ew, co n s t ru i n g al l

reas on ab l e i n feren ces in t he l i g h t m o s t fav o rab le t o t h e n o n m o v i n g part y

. Co ch ra n

v. Ken d r i ck

, 2 9 7 Ga. 6 5 5

, 6 58 (2 ) (7 7 8 SE2 d 1 ) (2 0 1 5 ). “ W e d o n o t res o l v e d i s p u t ed

fact s, reco n ci l e t h e i s s u es , wei g h t h e ev id en ce, o r d et erm i ne i t s cred i b i l it y

, as t h o s e

2m at t ers m

u s t b e s u b m i t t ed t o a ju ry fo r res o lu ti o n

. ” To o kes v. Mu r r a y

, 2 9 7 G a. Ap p.

7 6 5

, 7 6 6 (6 78 SE2 d 2 0 9 ) (2 0 0 9 ). Fo l l o w i ng ou r rev i ew an d fo r th e reas o n s t h at

b el o w, we affi rm th e t ri al co u rt ’ s d en i al o f s u m m ary ju d g m en t o n t h e Bro wn s ’ g o o d

fai t h an d fai r d eal i n g

, p u n i ti ve d am ag es

, an d at t o rn ey fees cl ai m s

, an d rev ers e t h e t ri al

co u rt ’ s d en i al o f s u m

m ary ju d gm en t as t o t h e rem ai ni n g cl ai m s

. 2

Th e Bro wn s ob t ai n ed a h o m e l o an fo r $ 1 3 6 ,0 0 0 fro m Oco n ee Fed eral i n 2 0 0 3

(t he “ 2 0 0 3 Lo an ”) an d a $ 4 0,0 0 0 HELOC fro m O co n ee Fed eral i n 2 0 0 7

. 3 Bo t h l o an s

were s ecu red b y t h e i r r e s i d en t i al p ro p ert y

. In 2 01 5

, t he Bro wn s s u bm i t t ed l o an

m o di fi cat i o n ap p l i cat i o n s fo r t h e 2 0 0 3 Lo an an d t h e HELOC. 4 Th e Bro wn s al l eg ed

t h at du ri ng th is p eri od

, Oco n ee Fed eral p ro m i s e d t h e m t h at t h ei r lo an s w o u l d b e

m o di fi ed an d t h at t h ey were i n s t ru ct ed n ot t o m ak e l o an p ay m en t s w h i l e t h ei r l o an s

2 W e al s o ad o p t th e fact s a n d p r o c e d u r a l h i s to ry as s et fo rt h i n Oco n ee I

, 3 4 9 Ga.

Ap p

. at 5 4-5 7. M oreo v er, “ [i ] t i s wel l es t ab l i s h ed t h at an y i ss u e t h at w as r a i s e d a n d

res o l v ed i n an earl ier ap p eal i s t h e l aw o f th e cas e an d i s b i n d i ng o n t h i s Co u rt [.] ”

(Pu n ct u at i o n o m it t ed .) Ro s s v. S t at e , 3 1 0 Ga. Ap p . 3 2 6 , 3 2 7 (7 1 3 SE2 d 4 3 8 ) (2 0 1 1 ).

3 Th e ex p i rat i o n o f th e d raw p eri o d f o r t h e HELOC was M ay 1 5, 2 0 1 7

, at w h i ch

p o i n t t h e u n p ai d b al an ce was d u e i n a b al l o o n p ay m en t

.

4 A l t ho u g h t he ex act p eri o d i n t i m e i s u ncl ear fro m t he reco rd , t h e 2 0 0 3 Lo an was

o wn ed at s o m e p o in t b y Fred d i e M a c

, b u t was t ran s ferred b ack t o Oco n ee Fed eral i n

Sep t em b er 20 1 5. Du ri n g t h e p eri o d t h at Fred d i e Mac o wn ed th e l oan

, Oco n ee Fed eral was

t h e s erv i cer o n t h e l oan

.

3were b ei n g co n s id ered fo r t h e m o d i fi cat i o ns

. Th e Bro wn s m ad e t h ei r l as t l o an

p ay m en t s o n t h e m o rt g a g e l o an an d HELOC in Ap ri l 2 0 1 5

. Oco n ee Fed eral

s u b s eq u en t l y

d en i ed t h e l o an m o d i fi cat i o n ap p l i cat i o n s i n Sep t em b er 2 0 1 5

.

On Decem

b er 1 7

, 2 0 15

, t h e Bro wn s s en t a q ual i fi ed wri t t en req u es t (“ QW R”)

l et t er t o Oco n ee Fed eral ’ s co u n s e l

, t h e Ran ck fi rm

, un d er t h e fed eral Real Es t at e

Set t l em en t Pro ced u res Act

, 1 2 USC § 2 6 0 1 et s eq

. (“ RESP A ” )

, s e e k i n g cert ai n

i n fo rm at i o n an d d o cu m en t s rel at ed t o t he HELOC. On J an u ary 1 5

, 2 0 1 6

, Oco nee

Fe d e ral

, t h ro u gh co u ns el

, res p o n d ed t o t he req u es t an d ad vi s ed t h e Bro wn s t h at i t s

i n t ern al i n v es t ig at i o n h a d n o t i d en t ifi ed an y i n accu raci es i n t h e cred it s an d d eb i t s

at t ri b u t ed t o t h e Bro wn s ’ l oan s

. Th e l et t er n o t ed a “ p os s i b l e d is crep an cy ” i n h o w t wo

p ay m en t s were ap p l i ed i n Oct o b er 2 0 1 1 b u t e x p l ai n ed th at O co n ee Fed eral wo u ld

s eek cl ari fi cat i o n fro m t h e Bro wn s ab o ut h ow t h ey i n t en d ed t h e p a ym en t t o b e

ap p li ed

.

On J an u ary 2 9

, 20 1 6

, aft er Oco n ee Fed eral in i t i at ed fo recl o su re pro ceed i ng s

u n d er t he HELOC an d s ecu ri t y d eed

, t he Bro wn s fi led t he fi rs t o f t h ree am en d ed

co m p l ai n t s

, “ s eek i n g i n

j u n ct i v e rel i ef t o en

jo i n t h e fo recl o s u re an d rai s in g m u l t i p l e

c l ai m s o f wro n gfu l fo recl o s u re, b reach of co n t ract

, an d frau d .” Oco n ee I

, 3 4 9 Ga.

Ap p

. at 5 7 -5 8

. Oco n ee Fed eral t h en can cel l ed t h e s ch ed ul ed fo recl o s ure, b u t res u m ed

4t h e fo recl o s u re p ro ceed i n g s on M arch 2

, 2 0 1 8 b ecau s e t h e Bro wn s h ad fa i l e d t o

“ rep ay t h ei r d eb t u n d er t he HELOC ag reem en t i n fu ll b y t h e m at uri t y d at e o f M ay 1 5,

2 0 1 7 .” Id

. at 58 -5 9

. Th e t ri al co u rt

, h o wev er, g ran t ed th e Bro wn s i n ju n ct iv e rel i ef to

s t op t h e fo recl o s u re s al e u po n t h e Bro wn s’ ten d er o f $ 2

, 7 0 0 i n t o t h e t ri al co urt ’ s

reg i s try

. 5

In t h ei r s ub s eq u en t t h i rd am en d ed co m pl ai n t

, t h e Bro wn s al l e g e d cau s es o f

act i on fo r: (1 ) breach o f co n t ract ; (2 ) an t i ci p at o ry rep u d i at i on ; (3 ) b reach o f t h e d u t y

o f g o o d fai t h an d fai r d eal i n g ; (4 ) v i o l at io n s o f t h e Geo rg i a Fai r L en d i n g Act

(“ GFLA”), O CGA § 7 -6 A-1 et s e q

. ; (5 ) frau d ; (6 ) neg li g en ce; (7 ) v i o l at i o n s o f

RESPA; (8 ) i n

j u n ct i v e an d d ecl arat o ry rel i ef; (9 ) pu n i t i v e d am ag es an d at t o rn ey fees

.

Oco nee Fed eral fi led a m o t i o n fo r s u m m ary ju d g m en t

, wh i ch t he t ri al co u rt d en i ed

,

s t at i n g on l y t h at “ [t ] h i s Defen d an t h av i n g fi l ed a [m ] o t i o n fo r [s ] u m m ary [j] u d g m en t

an d aft er h av i n g co n s i d ered al l m at t ers o f reco rd an d o ral arg u m en t b y co u n s el , t h e

Co u rt h ereb y d et erm i n es th at t h ere are g en ui n e i s su es o f m at eri al fact s

, an d t h at t h e

[m ] o t i on s h o u l d b e DENIED.” It i s fro m t h at o rd er t h at Oco n ee Fed eral ap p eal s

.

5 A s n o t ed i n fra, t h e t ri al co u rt ’ s g ran t o f i n ju n ct i v e rel i ef t o t h e Bro wn s wa s

rev ers ed i n Oco n ee I

.

51

. O co nee Fed eral fi rs t co n t en d s th at t h e t ri al co u rt erred i n d en y i n g s u m m ary

ju d g m en t as t o i t s co u nt ercl ai m s fo r p ay m en t o f t h e 2 0 0 3 Lo an an d 2 00 7 HELOC. 6

It co n t en d s t h at p ri m a faci e cas es were p ro v en as t o b o t h l o an s i n t hat Oco n ee Fed eral

p ro d uced t h e no t es

, es t ab l i s h ed t h a t t he Bro wn s ex ecu t ed t he n ot es

, an d t h at t h e

co u pl e s u b s eq u en t l y d efau l ted o n t h e n o t es

. Th u s

, Oco nee Fed eral arg u es

, as

t h ereaft er t h e Bro wn s d i d n o t m eet t h ei r b urd en o f es t ab li s hi n g a d efen se i n res p o n s e,

s u m m ary j u d g m en t s h o u l d h av e b een g ran ted to Oco n ee Fed eral

. T h e Bro wn s

m ai n t ai n t h at Oco n ee Fed eral i s es t op p ed fro m c o l lect i n g o n t h e n o tes b ecau s e t h e

b an k m ad e i t i m

p o s s i bl e t o p ay t h o u g h i t s u n eq u i t ab l e act s

, i n cl u d i n g b l o ck i n g o n l i n e

p ay m en t s, refu s i n g p ay m en t s

, an d p rem at u rel y rep o rt i n g t h e co up l e as i n defau l t

. Th e

Bro w n s ch aract eri ze Oco nee Fed eral ’ s al l eg ed act i o n s an d i n a c t i o ns as creat i n g an

eq u it ab l e ex t en s i o n o f th e t i m e req u i red fo r p ay m en t o f t h e l o an s

. Th e Bro wn s fu rt h er

as s ert t h at t h e s u b

j ect l o an s are n ei t h er d u e n o r en fo rceab l e an d th at q u es t i o n s rem ai n

reg ard i n g t h e am o u n ts d u e.

It is u n di s pu t ed t h at t he Bro wn s ob t ai n ed a h o m e lo an fro m Oco n ee Fed eral in

2 0 0 3 an d a HELOC fro m Oco n ee Fed eral i n 2 0 07

, an d t h at bo t h l o an s w ere s ecu red

6 Oco n ee Fed eral ’s a n s w e r p u t fo rt h a co u nt ercl ai m fo r “ co m p l ai n t o n n o t es ”

al l eg i ng t h at t h e Bro wn s’ i n deb t ed n es s o n th e 2 0 0 3 l o an was $ 3 8 ,6 8 3 .8 2 as o f Feb ru ary

2 5 , 2 0 1 6 an d , as o f t h e s am e d at e, $ 4 2 ,9 1 7

. 2 9 o n t h e 2 0 0 7 HELOC.

6b y t hei r res i d en t ial p ro p ert y

. 7 Th e 2 0 0 3 Lo an pro v i ded t h at fai lu re t o m ak e m o n t h l y

p ay m en t s wo u l d co n st i t u t e a d efau l t an d

, t hat u p on wri t t en no t i ce an d fai l u re t o cu re

wi t h i n 3 0 d ay s

, Oco n ee Fed eral h ad t h e ri gh t t o accel erat e t h e l o an

. Th e HELOC al s o

p ro v id ed t h at fai l u re t o p ay wo u l d co n s ti t ut e d efau l t an d t h at t h e b al an ce o f t h e l o an

was d ue at th e ex p i rat i o n o f t h e 1 2 0 m o nt h d raw p eri o d o n M ay 1 0, 2 0 1 7

. It is fu rt h er

u n d i s p u t ed t h at t h e Bro wn s h ad n o t m ad e p ay m en t s o n ei t h er l o an s i n ce M ay 2 0 1 5.

“ In a s u i t o n a n o t e, wh en s i g n at u res are ad m i t t ed o r es t ab l i sh ed

, p ro d u ct i o n o f

t h e i n s t r u m en t en t i tl es a ho l d er t o reco v er o n i t un l es s t h e d efen dan t es t ab l i s h es a

d efen s e.” (Ci t at i o n o m i t t ed .) Hea t h v. Bo s to n Ca p it a l Co r p

. Ta x Cr ed i t Fu n d VIII

,

2 5 3 G a

. A p p

. 5 3 7

, 5 3 8 (1 ) (5 5 9 SE2 d 7 4 3 ) (2 0 0 2 ). See al so Na sh v. To wn s h ip

In ves t men t

s, LLC

, 3 2 0 Ga. Ap p

. 4 9 4

, 4 9 5 (7 4 0 SE2 d 2 3 6 ) (2 0 1 3 ) ; Br a s wel l v. Ba n k

o f Ea r l y

, 2 2 9 Ga. Ap p

. 4 4 5, 4 4 7 (4 9 4 SE2 d 2 7 7 ) (1 9 9 7 ). Up o n rev i ew o f t h e reco rd

,

an d co n s t ru i n g t h e ev id en ce i n fav o r o f t h e Bro wn s

, we fi n d t h at Oco n ee Fed eral

m ad e t h e req u i red p ri m a faci e s h o wi n g t o reco v er u n der t h e n o t es

.

Th e Bro wn s rai s e v ari o u s defen ses

, i n cl u d i ng t h at O co n ee Fed eral reject ed

t en d er, t h at t h e am o u n t owed u n d er t he l o an s i s d i s p u t ed

, an d eq u it ab l e es to p p el

, in

7 Th e l o an s were i n i t i al l y p ro v i d ed b y St ep h en s Fed eral Ban k

, wh i ch s ub s eq u en t l y

m erg ed wi t h Oco n ee Fed eral

.

7t h at t h ey h ad r e l ied o n Oco n ee Fed eral ’ s p ro m i s e t o m o d i fy t h ei r HELOC l o an

.

Ho wev er, as to t h e H ELOC, in Oco n ee I we fo u n d t h at “ n on e o f t he Bro wn s ’ cl ai m s

ex c u s e t h em fro m t h e req u i rem en t t h at t h ey t en d er p ay m en t t o Oco n ee Fed eral .”

Oco nee I

, 3 4 9 G a. Ap p

. at 6 5

. Sp eci fi cal l y we fo u n d t h at “ t h e Bro wn s ’ cl ai m t h at t h e

am ou n t o wed i s i n d i s p u te d oes n o t ex cu s e t h em fro m t h e req u i rem en t t h at t h ey t en d er

p ay m en t t o Oco n ee Fed eral ,” t h at t h e “ t en d er m u s t b e co n t i n u o u s

, an d t h e Bro wn s

h av e n o t s h o wn t h at t h ey h av e t en d ered an y p ay m en t t o O c o n e e Fed eral aft er t h e

HELOC deb t m at u red o r th at Oco n ee Fed eral wo u l d h av e refu s ed an y s uch t en d er,”

t h at “ t h e Bro wn s [are n o t ] ex cu s ed fro m th e t en d er req u irem en t bas ed o n t hei r cl ai m s

t h at O c o n ee Fed eral prev en t ed t h em fro m p ay in g t h ei r d eb t b y d en y i n g t h ei r

ap p li cat io n t o m o d i fy t h e HELOC an d in r e p o rt i n g t h em as del i n q u en t t o cred i t

ag en ci es ,” an d t h at “ [s ] i m i larl y u n av ai l i n g i s t h e Bro wn s ’ rel at ed cl ai m th at Oco nee

Fed eral i s es t o pp ed fro m co l l ect i n g o n t h e H ELOC d eb t d u e t o i t s p u rp o rt ed p ro m i s es

reg ard i n g t h e ap p l i cat i o n t o m o d i fy t h e d eb t

. ” Id . at 6 3 -6 4.

Pu rs uan t t o OCGA § 9 -1 1 -6 0 (h ), “ [a] n y ru l i n g b y t h e Su prem e Co u rt o r t h e

Co u rt of Ap p eal s i n a cas e s h al l b e b i n d i n g i n al l s u b s eq u en t p ro ceed in g s i n t h at cas e

i n t h e l o wer co u rt an d i n t h e Su p rem e Co u rt o r t h e Co u rt o f Ap p eal s as th e cas e m ay

b e.” See Fu l t o n

–

DeKa l b Ho s

p

. Au t h

. v. W

al ker

, 2 1 6 Ga. Ap p

. 7 8 6, 7 8 8 (1 ) (4 5 6 SE2 d

89 7 ) (1 9 95 ); Hi cks v. M cGee

, 2 89 Ga. 5 7 3, 57 7 -5 7 8 (2 ) (7 1 3 SE2 d 8 41 ) (2 0 1 1 ) (“ [A]

ru l i n g b y t h e Su p rem e Co urt o r t h e Co u rt o f Ap p eal s i n a cas e s hal l b e b i n d in g i n al l

s u b s eq u en t p ro ceed i ng s i n t h a t ca s e i n t h e l ower co u rt an d i n t h e Su p rem e Co u rt o r

t h e Co u rt o f Ap p eal s

, as t h e cas e m ay b e. Geo rg i a’ s ap p el l at e co u rt s are req u i red to

ad h ere t o t h e l aw of t h e cas e ru l e i n al l m at t ers wh ich t h ey co n s i d er.

. . . [A] p p el l at e

ru l i n gs rem ai n b in d i n g as b et ween p art i es t o a cas e, s o l o n g as t h e ev i d en t iary p o s t u re

o f t h e cas e rem ai n s u n ch an g ed [.] ”) (p u n ct u at i o n o m it ted ; em ph as i s i n o ri gi n al ).

In l i gh t o f t h i s Co u rt ’ s ru l i n g i n Oco n ee I as t o t h e Bro wn s ’ d efen ses

, an d g i v en

t h at Oco nee Fed eral es t ab l i s h ed a p ri m a faci e cas e as t o t h e o ut s t an d i n g d eb t u n d er

t h e H ELOC an d t h at th e Bro wn s fai l ed t o es tab l i s h a d efen s e, t h e t ri al co u rt erred in

d en y i n g Oco n ee Fed e r a l ’s m o t i o n fo r s u m m ary ju d g m en t o n i ts co u n t ercl ai m fo r

p ay m en t o f t h e HELOC d eb t

. Th e Bro wn s p u t fo rt h i d en ti cal d efen s e s r e g a rd i n g

p ay m en t o f t h e 2 0 0 3 Lo an

, an d t h us as Oco n ee Fed eral al so es tab l i s h ed a p ri m a faci e

cas e as t o t hat d eb t, we fi n d th i s Co u rt ’ s ru l i n g i n O co n ee I co n t ro l l i n g as t o p ay m en t

o f t he 2 0 0 3 Lo an as wel l

. Acco rd i n g l y

, t h e tri al co u rt al s o erred i n d en y i n g s u m m ary

ju d g m en t t o Oco n ee Fed eral o n i t s co u n tercl ai m fo r p ay m en t o f t h e 2 0 0 3 Lo an

.

2

. Oco n ee Fed eral al s o co n t en d s th at t h e tri al co urt erred i n d en y i n g i t s m o t i o n

fo r s um m ary ju dg m en t o n t h e Bro wn s ’ c l ai m s

. Th e Bro wn s ’ co m pl ai n t

, as t h ri ce

9a m e n d ed

, al l eg ed 1 3 co u n t s i ncl u d i n g : i n ju n ct iv e rel i ef, d ecl arat o ry j u d gm en t

, br e a c h

o f co n t ract

, an t i ci p at o ry rep u di at i o n

, b reach o f g o o d fai th an d fai r d eal i n g, vi o l at i o n

o f t h e GFLA, frau d

, co n s p i racy

, n eg li g en ce, p u n i t i v e d am ag es

, v i o l at io n o f RESPA,

an d at t o rn ey s fees

. 8

a

. Decl a r a to ry Ju d

g men t 9

Th e Bro wn s s o u g ht a d ecl arat o ry j u d gm en t p u rs uan t t o OCGA § 9 -4 -2

,

al l eg in g a j u s t i ci ab l e co n tro v ers y b et ween t h e p art i es as t o t he o wn ers h i p o f t h e t wo

l o an s ; t h e v al i d i t y o f t h e secu ri t y d eed s an d p ro m i s s o ry n ot es o n wh i ch Oco nee

Fed eral s eek s t o fo recl os e; t h e b al an ce d u e o n t h e l oan s ; an d Oco nee Fed eral ’ s ri g h t s

an d du t i es i n s erv i ci n g th e l o an s

, fo recl o s i n g t h e l oan s an d i n at t em p t in g t o co l l ect t h e

l o an s

. O n ap p eal

, Oco n ee Fed eral as s ert s th at s u m m ary ju d g m en t was pro p er as to

t h i s cl ai m b ecau s e t h ere i s n o ju s t i ci ab l e i ss u e b et ween th e part i es

. Acco rd i n g to

Oco nee Fed eral

, t h e lo an s h av e m at ured

, an d t he Bro wn s d o n ot al l eg e an y fu t u re act

8 Th e co m

p lai n t al so al l eg ed v i o l at i o n o f t he Fai r Deb t Co l lect i o n Pract i ces Act

(“ FDCPA”) ag ai n s t t h e Ran ck d efen d an t s wh o

, as p rev io u s l y n o t ed

, were d is m i s s ed w i t h

p reju d i ce fro m

t h e act i o n

.

9 Th e Bro w n s al so s o u g h t i n ju n ct i v e rel i ef, t h e g ran t of wh i ch was rev ers ed i n

Oco n ee I

. Th u s

, t hat h o l d in g es t ab l i sh ed t h e law o f t h e cas e as to t hat cl ai m i n t h e p res en t

ap p eal

. S e e S e c u r i t

y Li f e In s

. Co

. v. Cl ar k

, 2 7 3 Ga. 4 4

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

OCGA § 9 -1 1 -6 0 (h ) (s et t in g fo rt h t h e l aw o f t h e cas e ru l e fo r ru l i n g s b y t h e Su p rem e

Co u rt an d t h e Co u rt o f Ap p eal s ).

10o r co n d u ct u p o n wh i ch t h ey face u n cert ai n i ty ; th u s

, t he co up l e i n es s en ce i s s eek i n g

an ad v i s o ry ru li n g as to t h ei r p u rp o rt ed d efen se. In co n t ras t

, t h e Bro wn s co n t en d t h at

t h ere rem ai n s a co n tro vers y “ reg ard i n g t he s tat u s o f th ei r l o an s an d s ecu ri t y d eed s .”

To o b tai n d ecl arat o ry

rel i ef,

[t ] h e p l ai n t i ff m

u s t s h o w f

a c t s o r ci rcu m s t an ces wh ereb y i t i s i n a

p o s i t i o n o f u n cert ai n ty o r i n s ecu ri t y b ecau s e o f a d i s p ut e an d of h av i n g

t o tak e s o m e fu t u re act i o n wh i ch i s p ro p erl y i n ci d en t t o it s al l eg ed ri g ht

,

an d wh i c h f

u t u re act i o n wi th o u t d i rect i o n fro m t h e co u rt m i g h t

reas o n ab l y jeo p ard i ze i t s i n t eres t

. A d ecl arat ory ju d g m en t m a y n o t be

g ran ted in th e ab s en ce of a ju s t i ci ab l e co n t ro v e r s y

. Th e o b ject o f th e

d ecl arat o ry ju dg m en t i s to p erm i t d et erm i n at i o n o f a co n tro v ers y b ef o r e

o b l i gat i o n s are rep u d i at ed o r ri g h t s are v io l at ed

. As m an y t i m es p oi n ted

o u t b y th i s co u rt

, i t s pu rp o s e i s t o perm it on e wh o i s wal k i n g i n t h e dark

t o as cert ai n wh ere h e i s an d wh ere h e i s g o i n g

, t o t urn o n t h e l i g h t b ef o r e

h e s t ep s rat h er t h an aft er h e h as s t ep p ed i n a h o l e.

(Ci t at i o n s an d pu n ct u at i o n o m i t t ed ; em ph as i s in o ri g in al .) Fa r m & Ho me Li fe In s

. Co

.

v. S kel t on

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

An act u al co n tro vers y ri p e fo r ad ju d i cat i o n d o es n ot neces s ari l y refl ect a

ju s t ici ab l e co n t ro v ers y fo r p u rp o s es o f a d ecl arat o ry ju d g m e n t

. Id

. Th e Bro wn s ’

u n cert ai nt y reg ard i n g t h e st at us o f t h ei r lo an s an d s ecu ri ty d eed s m ay p res en t i s s u es

ri pe fo r ad

ju d icat i o n

, b u t t h e Bro w n s d o n o t s h o w h o w t h ey face an y u n cert ai n t y

11ab o ut fu t u re ri g h t s o r o b l i gat i o n s s u ch t h at a ju s t i c i a b l e i ss u e is p res en t ed

. Th e

o b l i g at i o ns u n d er t h e l o an s an d s ecu ri t y d ee d s are s et fo rt h o n t h e face o f each

d o cu m en t

, an d fo r p urp o s es o f a d ecl arat o r y ju dg m en t

, t h e Bro wn s h av e n ot

d em o n s t rat ed “ t h e need o f a n y d i rect i on fro m th e t ri al co u rt wi t h res p ect to fu t u re

co n du ct o n [t h ei r] p art w h ich m ig h t i ncreas e [t h ei r] l i ab i l i t y o r o t h erwi s e affect [t h ei r]

i n t eres t s .” Fa r m & Ho m e Li f e In s

. Co

., 2 3 5 Ga. Ap p. at 5 0 8. See Ri ch a r d s o n v.

Ph i l l ip s

, 3 0 2 Ga. A pp

. 3 0 5

, 3 1 0 (1 ) (6 9 0 SE2 d 9 1 8 ) (2 0 1 0 ) (a d ecl arat o ry ju d g m en t

n o t p erm i t t ed to “ s i m

p l y

. . . h av e t h e t ri al co u rt deci d e t h e p ro p ri et y o f p as t co n d u ct

co m m i t t ed b y [t h e d efen d an t ] ”).

Th u s

, t h e t ri al co u rt erred i n d en y in g s u m m ary ju d g m en t to O co n ee Fed eral o n

t h i s cl ai m

.

b . Br ea ch o

f Co n tr a ct

Th e Bro wn s al l eg ed b reach of co n tract fo r Oco n ee Fed eral ’ s failur e to “ p ro v i d e

[t hem ] w i t h cert ai n n o t i ces reg ard i ng t h e accel erat io n o f t h e am o u n t s d u e u n d er t h e

i n s t ru m en t s,” or no t i ce p ri o r t o t h e accel erat i o n o f t h e l o an s an d i n i t i at i o n o f t h e

fo recl o s ure. Th ey as s ert e d tha t O c one e F e de r a l was co n t ract u al l y o b l i g at ed t o p ro v i d e

t i m el y wri t t en n ot i ce b efo re i t a c c e l e r a ted t h e am o u n t d u e o n t h e l o an s o r i n i t i at ed

fo recl o s ure; p erm i t t h e Bro wn s t o rei ns t at e t h e l o an s b y p ay i n g t h e b al an ce d u e; an d

12al l o w t h e Bro wn s to rei n s t at e an d accep t t h e t o t al b al an ce o wed o n on e o r m ore o f t h e

l o an s

.

“ Th e el em en ts fo r a b reach o f co n tract cl ai m i n Geo rg i a are t h e (1 ) b reach an d

t h e (2 ) res u l t an t d am ag es (3 ) t o t he p art y w h o h as t h e r i g h t t o co m p l ai n ab o u t t h e

co n tract b ei n g b ro k e n .” ( F o o t no t e o m i t t ed .) Du ke Ga l is h, LLC v. Ma n to n

, 3 0 8 Ga.

Ap p

. 3 16

, 32 0 (2 ) (7 0 7 SE2 d 5 5 5 ) (2 0 1 1). O co n ee Fed eral c o n t e n d s t h a t t h e t ri al

co u rt erred in d en y i ng i t s m o t i o n fo r s um m ary ju d g m en t o n t h e Bro w n s ’ cl ai m

b ecau s e t h e co u pl e can n o t s h o w an y m at eri al b reach o r an y

d am ag es . Acco rd i n g to

Oco nee Fed eral

, t h i s cl ai m fai ls b ecau se i t was b as ed o n Oco nee Fed eral ’ s al l e g ed

fai l u re t o p ro v i d e cert ai n n o t ices ab o u t t h e accel erat io n o f t he d eb ts an d i m p en d i n g

fo recl o s ure, b u t t h ere was n o fo recl o s ure an d t h us n o d am ag es . W e ag ree.

“ Dam ag es reco v erab l e fo r a b reach o f co nt ract are s u ch as ari s e n at u ral l y an d

acco rd i n g t o t he u s u al co u rs e o f t h i n g s fro m s u ch b reach an d s u ch as t h e p art i es

co n tem p l at ed

, wh en t h e co n tract was m ad e, as t h e p ro b a b l e r e s u l t o f i t s b reach .”

OCGA § 1 3

- 6

- 2

. Ev en i f we as s u m e, wi t h o ut d eci d i n g

, t h at t h e fai l u re t o g i v e t h e

Bro w n s n o t i ce o f t he accel erat i o n o f t h e n ot es an d i m p en d i n g fo recl o s ure ev i n ced a

b reach o f c ert ai n co nt ract u al o b l i gat i o n s

, t o p rev ai l o n t h ei r cl ai m fo r b reach o f

13co n tract

, t h e Bro wn s s t il l had t o s h o w d am ag es res u l t i n g fro m Oco n ee Fed eral ’ s

fai l u re t o g i v e n o ti ce.

In t h ei r co m

p l ai n t

, t h e Bro wn s o n l y al l eg ed t h at t h ey s u ffered “ d am ag es i n an

am ou n t t o be p ro v en at t r i a l

, ” a n d i n t h ei r ap p el l at e res p o ns e, o n l y as s ert t h at t h ere

was a b reach o f t h e co n t ract ual ob l i g at io n t o p ro v id e n o t i ce. Th ey h av e co m e fo rward

wi t h n o ev i d en ce s h o wi n g h o w Oco n ee Fed eral ’ s fai l u re t o pro v i de no t i ce o f t h e

accel erat i o n an d i m

p en d i n g fo recl o s e cau s ed th em harm

. In s t ead

, t h e ev i d en ce

d em o n s t r a t es t h at th e fo recl os u re s al e was can cel l ed

, an d Oco n ee Fed eral fu rt h er

s t ip u l at ed t h at i t h ad n o i m m ed i at e p l an s t o rei ni t i at e fo recl o s ure of th e p ro p ert y

.

Fu rt h er, u p o n t h e Bro wn s ’ m o t i o n t o t en d er fu n d s in t o t h e co u rt reg i s t ry

, t h e t ri al

co u rt p erm i t ted th e co u p le t o “ d ep o s i t fu n d s p rev i o u s ly t en d ered b y [t he Bro wn s ] i n to

t h e reg i s t ry o f [t he] Co urt an d t o d ep o s i t fu t u re p ay m en t s i n t o t he reg i s t ry as t h ey are

t en d ered b y

[t h e Bro wn s .] ” 1 0

1 0 Th e Bro wn s’ m o t i o n fo r t en d er p ro v i d ed :

W h ereas

, a cu rren t d i s p ut e b et ween t h e part i es ex i s t s i n rel at i o n t o [ t h e

Bro wn s ’ ] l o an s

, an d i n an eff o r t t o d e m o n st rat e [t h e Bro wn s ’ ] i n t en t i o ns t o

co m p l y wi t h t hei r fi n an ci al o b l i g at i o n s

, [t h e Bro wn s ]

, i n g oo d fai th

, req u es t

t h at t h is Co u rt en t er an o rd er au t h o ri zi n g [t h e Bro wn s ] t o ten d er i n t o t h e

reg i s t ry o f t he Co u rt th e t o t al am ou n t [t h e Bro wn s ] o we fro m M ay 2 0 1 5 u n t i l

M ay 2 0 1 6

, a n d au t h o ri zi n g al l fu t u re m on t h l y p ay m en t s d u e t o D efen d an t

14Fo r t h e Bro wn s t o s u cceed o n t h i s b reach o f co n t ract cl ai m , t hey

m u s t s h ow th at t h e p rem at u re o r i m pro p er ex erci se o f so m e p o wer u nd er

t h e d eed (accel erat i o n or s al e) res u l t ed i n d am ag es th at wo u l d n o t h av e

o ccu rred bu t f

o r t h e b reach

. In cas es s u ch as t hi s

, wh ere t h ere was n o

a c t u al ex erci s e o f t h e p o wer o f s al e, th e o nl y po s s i b l e h arm m u s t b e

t raced b ack t o t h e al l eg ed l y u nau t h o ri zed accel erat i o n o f t h e n o t e.

( F o o t n o t es o m i t t ed

. ) Ba t es v. JP Mo r g a n Ch a s e Ba n k

, 7 6 8 F3 d 1 1 2 6

, 1 1 3 2 -1 1 3 3

(1 1 t h Ci r. 2 0 1 4 ).

Th e Bro wn s h av e n ot m ad e th i s s h owi n g

. Th u s

, t h e t ri al co u rt erred i n d en y i n g

Oco nee Fed eral ’ s m o t i o n fo r s u m m ary ju d gm en t as t o t h i s cl ai m

.

c. An t i ci p a to ry Rep u di a t i o n

Oco n ee Fed eral al s o co n t en d s t h at s um m ar y ju d g m en t s h ou l d hav e b een

g ran t ed o n t h e Bro wn s ’ an t i ci p at o ry rep u di at io n cl ai m

. It arg u es t h at t h e cl ai m fai l s

b ecau s e Oco n ee Fed eral d i d n o t rep u di at e t h e “ en t i re co n t ract ” wi t h t h e Bro wn s an d

Oco n ee Fed eral fro m [t h e Bro w n s ] p u r s u a n t to [t h e s ub ject ] l o an s

. . . b e

d ep o s i t ed in t he reg i st ry o f t h e Co u rt u n t i l t h e Co u rt en t ers a Fi n al Ju d gm en t

i n t h i s m at t er.

15t h at t h e Bro wn s m u st s h o w “ an u n q u al i fi ed rep u d i at i o n o f t h e en t i re co n t ract p ri o r to

t h e t i m e fo r p erfo rm an ce” t o es t ab l is h s u ch a cl ai m

.

[T] h e an t i ci p at o ry rep u d i at io n o f a co nt ract o c cu rs w h en o n e p art y

t h eret o rep u d i at es h i s co n t ract u al o b l i g at i o n t o p erfo rm p ri o r t o t h e t i m e

s u c h p erfo rm an ce i s req u i red u nd er th e t erm s o f t h e co n t ract

. W h i l e

t ech ni cal l y s u ch a rep ud i at i o n i s n ot a b reach of co n t ract

, t h e co n t ract ual

t i m e fo r p erfo rm an ce n o t h av i n g arri v ed

, t h e law reco g n i zes th at u nd er

cert ai n ci rcu m s t an ces t h e i n n o cen t p art y t o t h e co n t ract m ay t reat s u ch

an an t i ci p at o ry rep u d iat i o n as a b reach t h ereo f. Th u s wh en o n e p art y t o

a bi l at eral co nt ract o f m

ut u al d ep en d en t p ro m i ses ab s o l u t el y refu s es t o

p erfo rm an d rep u d i at es th e co n t ract p ri o r t o t h e t i m e of h i s p erfo rm an ce,

t h e i n no cen t p art y i s at l i b ert y t o co n s i d er hi m s el f ab so l v ed fro m an y

fu t u re p erfo rm an ce o n h i s p art [.]

(Pu n ct u at i o n an d ci t at i o n s o m i t t ed .) CCE Fed

. Cr ed i t U n i o n v. Ch es s er

, 1 5 0 Ga.

Ap p . 3 2 8 , 3 3 0 (1 ) (2 5 8 SE2 d 2 ) (1 9 79 ).

Th e Bro wn s al l e g e d t h at Oco n ee Fed eral an t i ci pat o ri l y rep u d i at ed i t s

co n tract ual o bl i g at i o ns un der t h e 20 0 3 Lo an an d secu ri t y d eed

, an d t h e 2 0 0 7 s ecu ri t y

d eed an d HELOC, b y reject i n g t h e co u p l e’ s at t em p t s t o t en d er p ay m en t

, by

i n s t ru ct i n g t h em n o t t o m ak e p ay m en t s o n t he l o an wh i l e t h e l o an m od i fi cat i o n was

b ei n g co n s i d e r e d

, an d b y dem an d i ng t h at th e Bro w n s s i g n away t h ei r leg al an d

16s t at u to ry ri gh t s

. Th e co u p le as s ert s t h at i n reject i n g t h ei r t en d er o f p ay m en t

, Oco nee

Fed eral rep u d i at ed i ts d ut i es t o accep t p ay m en ts an d ap p ly t h em t h ereo n.

“ Th e b reach w h ich w i l l fo rm th e b as is fo r t h i s t y p e o f act i o n i s an un q u al i fi ed

rep u d i at i o n o f t h e en ti re co n t ract p ri o r t o th e t i m e fo r p erfo rm an ce. Th e rep u d i at i o n

m u st g o to t h e wh o l e co nt ract .” (Ci t at i o n an d p u n ct u at i on o m i t t ed .) E s q u i r e Ca r

p et

Mi l l s v. Ken n es aw Tr a n s

p

., 18 6 Ga. Ap p

. 3 6 7

, 3 7 0 (3 ) (3 6 7 SE2 d 56 9 ) (1 9 8 8 ). Here,

t h ere co u l d b e n o a n t i c i p at o ry rep u d i at io n o f th e wh o le co n t ract b ecau se Oco nee

Fed eral h ad p erfo rm ed it s p ri m ary p u rp o s es u n d er t h e c o n t r act s b y p ro v i d i n g t h e

Bro w n s wi t h l oan s p urs u an t t o t h e 2 0 0 3 n o te an d t h e 2 0 07 H ELOC. Co ff ee Bu tl er

S er v. v. S a ch a

, 2 5 8 Ga. 1 9 2

, 19 3 (1 ) (3 6 6 SE2 d 6 7 2 ) (1 9 8 8 ) (es t ab li sh i n g t h at t h e

d o ct ri n e wo ul d ap pl y o n l y i f t h ere i s an u n q u al ifi ed rep u d i a t i o n o f t h e en t i re

o b l i g at i o n p ri o r t o t h e t i m e o f p erfo rm an ce).

Th u s

, t h e t r i al co urt erred in d en y i n g Oco n ee Fed eral s um m ary ju d g m en t o n

t h i s cl ai m as wel l

.

d . Go o d Fa i t h a n d Fa ir

Dea l i n g

Oco n ee Fed eral co n t e n d s t h at t h e t ri al co u rt erred i n d en y in g i t s m o t i o n fo r

s u m m ary ju d g m en t o n t h e Bro wn s ’ cl ai m s fo r b reach o f t h e i m p l i ed co ven an t o f g o o d

fai t h an d fai r d eal i ng

. W e d o n o t ag ree.

17Ev ery co n tract im p l i es a co ven an t o f g o o d fai t h a n d f a i r d eal in g i n t h e

co n tract ’ s perfo rm an ce an d en fo rcem en t. W ir el es sMD v. Hea l th ca r e.co m Co r p

., 2 7 1

Ga. Ap p. 4 6 1

, 4 6 8 (2 ) (6 1 0 SE2 d 3 5 2 ) (2 0 0 5 ). Th e i m p l i e d c o v en an t m o d i fi es an d

b eco m es a p art o f t h e p ro v i s i o n s o f t h e co n tract

, b u t t h e co v en an t can n ot b e b reach ed

ap art fro m t h e co n t ract p ro v i s i o n s i t m o d ifi es an d t h e r e f o r e can n o t p ro v i d e an

i n d ep en den t b as i s fo r l i ab il i t y

. S t u a r t En t er s

. In t l

. v. Peyka n

, In c

., 2 5 2 Ga. Ap p

. 2 3 1,

2 3 3 -2 3 4 (2 ) (5 5 5 SE2 d 8 8 1 ) (2 0 0 1 ). H o wev er, t h at i m p l i ed d ut y “ r e q u i res b o th

p a r t i e s t o a co n t ract to p erfo rm t h ei r p ro m i s es an d p ro v i d e s uch co o p erat i o n as i s

req u i red fo r t h e o t h er p art y ’ s p erfo rm an ce.” (Ci t at i o n o m i t t ed .) Ih es i a b a v. P el l et i er

,

2 1 4 Ga. Ap p . 7 2 1 , 7 2 4 (2 ) (4 48 SE2 d 9 2 0 ) (1 9 9 4).

Th u s

, w h en ev er t h e co o p erat i o n o f th e p ro m i s ee is n eces sary fo r t he

p erfo rm an ce o f t h e p ro m i s e, t h ere i s a co n d i ti o n i m p li ed t hat th e

co o p erat i o n wi l l b e gi ven

. Ho wev er, i t i s eq u al l y s et t l ed t h at t h ere can

b e n o b reach o f a n i m

p l i ed co v en an t o f g o o d fai t h wh ere a p art y t o a

co n t ract h as do n e wh at t he p ro v is i o n s o f t h e co n tract ex p res s l y g iv e h i m

t h e ri g h t t o d o

.

(Ci t at i o n s an d pu n ct u at i o n o m i t t ed

. ) W h i sen a n t v. Fu lt o n F

ed

. S a v

. & c.

, 2 0 0 Ga. Ap p.

3 1 , 3 3 (1 ) (4 0 6 SE2 d 7 9 3 ) (1 9 91 ).

18In t h ei r laws u i t, th e Bro w n s al l eg ed th at O co n ee Fed eral vi o l at ed t h is i m p l i ed

co n tract ual d u t y b y co d i n g t h ei r l o an s to p rev en t el ect ro n i c p ay m en t

, fai l i n g t o n o t i fy

t h em o f t h e ch an g es to t h e el ect ro n i c p ay m en t s y st em

, fal s el y co m m u n i cat i n g t h a t

t h ey were i n d efau l t of t h ei r l o an s

, refu s i n g t en d er o f p ay m en t, an d m i s ap p l y i n g

p ay m en t s. Th e 2 0 0 3 L o an req u i red th e Bro wn s t o m ak e m o n th ly p ay m en t s

, an d p er

t h e at t en d an t secu ri t y d eed

, t h e p ay m en t s wo u l d b e “ accep ted an d a p p l i ed b y [t h e]

Len der” t o t h i s deb t

. L i k ewi s e, t h e Bro w n s w ere al s o req u i r e d t o m ak e p ay m en t s

u n d er t he 2 0 0 7 HEL O C a n d s ecu ri t y d eed

. Oco n ee Fed eral h ad a co n t ract u al d u t y

,

ei t h er ex p res s o r i m

pl i ed

, t o act i n g o o d fai t h i n p erfo rm i n g u nd er t h e co n tract i n s u ch

a way t h at wo u l d p erm i t t h e Bro wn s to fu lfi l l t h ei r co n t ract u al o b l i g at i o n t o m ak e t h e

p ay m en t s. “ An i m

pl i e d t e r m i n an ag reem en t ex i s t s wh ere i t i s reas on ab l e an d

n eces s a r y t o e f

fect th e fu l l p u rp o s e o f t h e co n t ract an d i s s o cl earl y wi t h i n t h e

co n tem p l at i o n o f t h e p art i es t h at t h ey d eem ed i t u n n eces s ary t o s tat e.”(Ci t at i o n

o m it t ed .) Fi sh er

v. To o mb s Co u n t

y Nu r s i n g Ho me , 2 2 3 Ga. Ap p . 8 4 2

, 8 4 5 (2 ) (4 7 9

SE2 d 1 8 0 ) (1 9 9 6 ). Becau se t h ere rem ai n g en u i n e i s su es o f m at eri al fact reg ard i n g

wh et h er Oco n ee Fed eral ’ s h an d l i n g o f t h e Bro w n s ’ pay m en t s o n t h e l o an s s h o wed a

l ack o f g o o d fai t h a n d f

a i r d eal i n g

, t h e t ri al co u rt di d n o t err i n d en y i ng s u m m ary

ju d g m en t as t o t h i s cl ai m

.

19e. Geo r g i a Fa i r Len d i n g Act

Oco n ee Fed er a l co n ten d s t hat t h e t ri al co urt erred i n d en y i ng i t s u m m ary

ju d g m en t o n t h e Bro wn s ’ cl ai m fo r al l eg ed v io l at i o n s o f t h e GFLA. W e ag ree.

Th e Bro wn s al l eg ed t h at Oco n ee Fed eral v i o l at ed t h e s t at ut e du ri n g t h ei r

“ p l an n ed refi n an ce” by en co u rag i n g t h em t o defau l t t h e ex i s ti n g 2 00 3 L o an an d 2 0 0 7

HELOC. Ho wev er t h e ev i d en ce d o es n o t es t ab l i s h t h at t h ere was a p l an n ed refi n an ce

o f t h e lo an s b ecau s e Oco n ee Fed eral den i ed t h e Bro wn s ’ req u es t fo r m o d i fi cat i o n o f

t h e l o an s

.

OCGA § 7

- 6 A

- 3 p ro v id es t h at “ [a] l l ho m e l o an s s h al l b e su b j ect t o t h e

f o l l o wi n g l i m i t at i o n s an d p ro h i b i t ed pract ices ” i n cl u d i n g t h at “ [n ] o cred i t o r o r

s erv i cer s h al l reco m

m en d or en co u rag e d efau lt o n an ex i st i ng l o an o r o t h er d eb t p ri o r

t o an d in co n n ect i o n wi th t h e cl o s i n g o r p l an n ed cl os i n g o f a h o m e l o an t h at

refi n an ces al l o r an y po rt i on of s u ch ex i s t i n g l o an o r deb t [.] ” Bu t, t h e s tat u t e fu rt h er

p ro v id es t h at “ [a] n act i o n u n d er t h i s ch ap t er m ay b e b ro u g h t wi t h i n fi ve y ears aft er

t h e d at e o f t h e fi rs t s ch ed ul ed p ay m en t b y t h e b orro wer u nd er t he h o m e l o an .” OCGA

§ 7-6 A-7 (h ). Th e s t at u t e al so p ro v i d es f o r d a m a g e s “ eq u al t o t h e reco v ery o f t wo

t i m es t h e i n t eres t p ai d u n d er t h e l o an ” as wel l as “ fo rfei t ure o f i n teres t un d er t h e l o an

20fo r an y v i o l at i o n o f p arag rap h (1 ) o r (2 ) o f Co d e Sect i o n 7 -6 A-3 .” OCGA § 7 -6 A-7

(a) (2 ).

Ev en if t h e Bro wn s ’ ap p l i cat i o n fo r a m o d i fi cat i o n co u l d be ch aract eri zed as

a “ p lan n ed cl o s i n g ” un d er t h e GFLA, b ecau se th ere was no en s u in g l o an

, th ere was

n o s ch ed u l ed p aym en t u n d er t h e l o an t ri g g eri ng t h e t i m e p eri od fo r b ri n g i n g an

act i on

, n o r wa s t h e r e an y i nt eres t p ai d o n t he l o an u n d er wh i ch s t at u t ory d am ag es

co u ld b e as s es s ed

.

Th u s

, t h i s cl ai m fai l s an d t h e t ri al co u rt erred i n den y i n g Oco nee Fed eral ’ s

m o ti o n fo r s u m

m ary ju d g m en t as t o t h i s co un t

.

f . Co n s p i r a cy t o Vi o l a te t h e Geo r gi a Fa ir Len d i n g

Act

Oco n ee Fed eral co n t en d s t h at t h e t ri al co u rt erred i n d en y i n g i t s m o t i o n fo r

s u m m ary ju d g m en t o n t h e Bro wn s ’ cl ai m o f co n s p i racy t o v i o l at e t h e GFLA.

To reco ver d a m ag es b as ed o n a cl ai m o f ci v i l co n s p i racy

, a

p l ai n t i ff m

u s t s h o w th at t wo o r m o re p er s o n s co m b i n ed ei t h er t o d o

s o m e act w h i ch i s a t o rt

, o r el s e t o do s o m e l awfu l act b y m et h o d s wh ich

co n s t i t ut e a to rt

. Th e co n s p i racy

. . . i t s el f fu rn i s hes n o cau s e o f act i o n

.

Th e g i s t o f t h e act io n i s n o t t h e co n sp i racy a l l e g e d

, b u t t h e t o rt

co m m i t t ed ag ai n s t t h e p lai n t i ff an d t h e res u l t i n g d am ag e. Th e es sen t i al

el em en t of th e al l eg ed co n sp i racy i s p ro o f o f a co m m o n des i g n

21es t ab l i sh i ng t h at t w o o r m o re p ers o n s in an y m an ner, ei t her p o si t i v el y

o r t aci t ly

, arri v e at a m u t u al u n ders t an d i n g a s t o h o w t h ey wi l l

acco m p l i s h an u n lawfu l d es i g 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 .) Tyl er v. Th o mp s o n

, 3 0 8 Ga. Ap p

. 2 2 1

, 2 2 4 -2 2 5

(3 ) (7 07 SE2 d 1 37 ) (2 0 1 1 ).

Th e Bro wn s ack n o wl ed g e t h at t h ei r cl ai m o f co n s pi racy is d ep en d en t u p o n t h e

v i ab i l i t y o f t h e GFLA cl ai m

. T h u s

, a s t h at cl ai m fai l ed

, t h e co n s p i racy cl ai m al s o

fai l s

. See Dyer v. Ho n ea

, 2 5 2 Ga. Ap p

. 7 3 5

, 7 3 8 (2 ) (5 5 7 SE2 d 2 0 ) ( 2 0 0 1 ) ( “ Th e

ca u s e o f act i o n fo r ci v i l co ns p i racy l ies n o t i n t h e co ns p i racy i t s el f, b u t i n t h e

u n d erl y i n g t ort co m

m i t t ed ag ai n s t t h e p l ai nt i ff an d t he res u l t i n g d am ag e.”) (fo o t n o t e

o m it t ed ).

g . Fr a u d

Oco n ee Fed eral co n t en d s t h a t t h e tri al co u rt erred i n d en y i n g s u m m ary

ju d g m en t o n th e Bro w n s ’ frau d cl ai m

. 1 1 It as s ert s t h at t h e Bro wn s d o n o t s peci fi cal l y

i d en t i fy an y m i s rep res en t at i o n t h at t h ey h av e ju s t i fi ab l y rel i ed o n t o th ei r d et ri m en t

.

1 1 A frau d cl ai m h as fi v e el em en t s : “ a fal s e rep res en t at i o n b y a d efen d an t ; s ci en t er;

i n t en t i on t o in d u ce t h e pl ai n t iff t o act or re f r a i n fro m act in g ; ju s t i fi ab l e rel i an ce b y

p l ai n t i ff; an d d am ag e t o t he p l ai nt iff.”(Ci tat i o n o m it t ed .) W er t z v. Al l en

, 3 1 3 G a. Ap p

. 2 0 2

, 2 0 7 -2 0 8 (2 ) (7 2 1 SE2 d 1 2 2) (2 01 1 ).

22An d fu rt h er, th at t o t h e ex t en t th ey wo u ld s o m ai n t ai n

, an al leg ed p ro m i s e t o m o d i fy

t h e l o an s can n ot b e t h e b as i s o f a frau d cl ai m

. T he Bro wn s m ai n tai n t h at ev en t h o u g h

Oco nee Fed eral k n ew t hat i t p l a n n e d t o fo recl o s e o n t h e co u p l e, i t co n t i n u ed to

rep res en t t o t h e Bro wn s th at t h ey were b ei n g co n s id ered fo r m o d ifi cat i o n

. Ev en

as s u m in g t h at Oco n ee Fed eral p ro m i s ed th e Bro wn s t h at t h ei r l o an m od i fi cat i on s

wo u l d be ap p ro v e d

, t h a t p ro m i s e can n o t s erv e as t h e b as i s o f a cl ai m fo r frau d

b ecau s e

[a] l t h o u g h frau d can b e p red i cat ed o n a m i s rep res en t at i o n as t o a fu t u re

ev en t wh ere t h e d efen d an t k n o ws t h at t h e fu t u re ev en t w i l l n o t tak e

p l ace, frau d can no t b e p red i cat ed on a p ro m i s e wh ich i s u n en fo rceab l e

at t h e t i m e i t i s m ad e. Th e in s t an t al l eg e d o r a l c o n t ract [t o m o d i fy th e

l o an s] was u n en fo rceab l e at t h e t i m e i t was p u rp o rt e d l y m a d e b ecau s e

i t was n o t i n wri t i n g as req u i r e d b y OCGA § 1 3 -5 -3 0 (7 ). Ob v i o u s l y

,

o n e can n ot s u e i n frau d b as ed u p o n t h e al l eg ed breach of an o ral

co n t ract wh i ch wo u l d i t s el f b e u n en fo rceab l e un d er t h e St at u t e o f Frau d

(Ci t at i o n s an d p un ct u at i on om it t ed .) S t u d d a r d v. G eo r

g e D. W a r t h en Ba n k

, 2 0 7 Ga.

Ap p

. 8 0

, 8 1 (2 ) (4 27 SE2 d 5 8) (1 9 9 3 ) (affi rm i n g g ran t o f s u m m ary ju d g m en t o n frau d

cl ai m b as ed o n p ro m i s e t h at was “ u n en fo rceab l e at t h e t i m e i t [was ] m a d e ” w h e r e

al l eg ed p ro m i s e t o ex t en d a l i n e o f cred i t w as i n s u ffi ci en t u n d er t h e s t at u t e o f frau d s );

Des ou z a v. Fed

. Ho me Mo r tg

. Co rp

. , 5 7 2 F.Ap p x

. 7 1 9, 7 2 3 (1 1 t h Ci r. 2 0 1 4 ) (ci t i n g

23S t u d

d a r d an d affi rm i n g d i s t ri ct co u rt ’ s d i s m i s s al o f frau d cl ai m b as ed o n al l eg ed

p ro m i s e t o m o di fy l o an as fai l i ng t o s at is fy Geo rg i a’ s s t at u t e o f frau d s ). See OCGA

§ 1 3 -5 -3 0 (4 ), (7 ) (“ To m ak e t h e fo l l o wi ng o b l i g at i o n s b i n d i n g o n t h e pro m i s o r, t h e

p ro m i s e m

u s t be i n wri t i n g an d s i g ned b y t h e part y t o b e ch arg ed t h erewi t h o r s o m e

p e rs o n l awfu l l y au t h o ri zed b y h i m o r h er: [a] n y co n t ract fo r s al e o f l an d s

, o r an y

i n t eres t i n , o r co n cern i ng l an d s . . . [a] n y co m m i t m en t t o l en d m o n ey

. ”)

M o reo v er,

[m ] ere o p in i o n s

, p red i ct i o n s

, an d co n j ect u res rel at i n g t o fu t u re ev en t s

can n o t fo rm t h e b as i s o f a f r a u d c l a i m

. It i s ax i o m at i c t h at a fal s e

rep res en t at i o n m ad e b y

a d efen d an t

, t o b e act i o n ab l e, m u st rel at e t o

an ex i s t i n g fact or a p as t ev en t

. Frau d can n o t co ns i s t o f m ere b ro k en

p ro m i s es

, u n fi l l ed p red i ct i o n s or erro n eo u s co n ject u re as t o fu t ure

ev en t s

. Rep res en t at i on s co ncern in g e xp ect at i o n s an d h o p es are no t

act i o n ab l e.

Gr een wa l d

v. Od o m , 3 1 4 Ga. Ap p . 4 6 , 5 2 -5 3 (1 ) (7 2 3 SE2 d 3 0 5 ) (2 0 12 ).

Acco rd i n g l y

, t h e t ri al co u rt erred in d en y i n g Oco n ee Fed eral ’ s m o t i o n fo r

s u m m ary ju d g m en t o n t h e Bro wn s ’ frau d cl ai m

.

h . Neg l i g en ce

Oco n ee Fed eral arg u es t h a t t he Bro wn s ’ n eg l i g en ce cl ai m fai l s b ecau s e t h i s

l aws u i t ari s es o u t o f co nt ract s b et ween t h e Bro w n s an d Oco n ee Fed eral

, wh i ch can n ot

24s erv e as t h e b as i s fo r a n eg l i g en ce cl ai m

. 1 2 In t h ei r res p o n s e, t h e Bro wn s arg u e t h at

Oco nee Fed er a l n eg l i g en t l y fai l ed to co m pl y wi t h Fred d i e M ac’ s s erv i ci n g

r e qu i rem en t s

. 1 3 Ho wev er, l o an s erv i ci n g g ui d el i n es be t w e e n F r e ddie M a c a

n d O c one e

Fed eral d i d n o t i m

p o se a d u t y o n Oco n ee Fed eral fo r t h e b en efi t o f th e Bro wn s

, an d

t h i s C o u rt h as reco g n i zed th at Fred d i e M ac’ s s erv i cer g u i d el i n es fo r l o an

m o di fi cat i o n s d o n o t creat e p r i v a t e c au s es o f act i o n fo r i n d iv i d u al b o rro wers

. See

U.S

. Ba n k, N.A. v. Ph i l l i

p s

, 3 1 8 Ga. Ap p

. 8 1 9, 8 2 4 (1 ) (7 34 SE 2 d 7 9 9 ) (2 0 1 2 )

(reco g n i zi n g t hat “ h o m eo wn ers are i n ci den t al b en efi ci ari es o f t h e l o an s erv i cers ’

p art i ci p at i o n i n HAM P [t he fed eral Ho m e Affo rd ab l e M o d i fi cat i o n Pro g ram ] , an d

.

1 2 Th e es s en t i al el em en t s o f a n eg l i gen ce cau s e o f act i on are: (1 )

a d u ty

, or o b l i g at io n

, reco g n i zed b y l aw, req u i ri n g t h e act o r t o

co n fo rm t o a cert ai n s t an d ard o f co n d u ct

, fo r t h e p ro t ect i o n o f

o t h ers ag ai n s t u n reas o n ab l e ri s k s; (2 ) a fai l u re to co nfo rm t o t h e

s t an d ard req u ired ; (3 ) a reas o n ab l y cl o se cau s a l co n n ect i on

b et ween t h e co n d u ct an d t he res u l ti n g i nju ry ; an d (4 ) act u al l o s s

o r d am ag e res u l t i n g t o t h e i nt eres t s o f t he o t h er.

Br o o kvi ew Ho l d i n g

s v. S u a r ez , 2 8 5 Ga. Ap p. 9 0

, 9 1 (6 4 5 SE2 d 5 59 ) (2 0 0 7 ).

1 3 As earl i er n ot ed , at s o m e p o i n t Fred d i e M ac o w ned t h e Bro wn s’ 2 0 03 Lo an , an d

Oco n ee Fed eral was Fred d ie M ac’ s l o an s erv i cer.

25. . Co n g res s d i d no t i n t en d to en d o w h om eo w n ers wi t h th i rd -p art y b en efi ci ary ri g h t s

t o en fo rce HAM P”); Fi el b on Dev. Co

. v. Co l o n y Ba n k

, 2 9 0 G a. Ap p. 8 4 7

, 8 5 5 (3 )

( 6 60 S E 2d 8 01) ( 2008) ( “ [A] d efen d an t ’ s m ere neg l i g en t p erfo rm an ce o f a co nt ract u al

d u t y d o es n o t creat e a t o rt cau s e o f act i o n ; rat h er, a defen d an t ’ s b reach o f a co n t ract

m a y g i v e r i s e t o a t o rt cau s e o f act i o n o n l y i f t h e defen d an t h as al s o b reach ed an

i n d ep en den t d ut y

creat ed b y

s t at u t e o r co m

m o n l aw”).

Th u s

, t h e t ri al co u rt erred i n d en y i n g t h e m o t i o n fo r s u m m ary ju dg m en t o n t h e

Bro w n s ’ n eg l i g en ce cl ai m

.

i

. RES PA Vi o l at io n

Th e Bro wn s al leg ed t h at Oco n ee Fed eral v i o l at ed RESPA b y f a i l i n g to

ack n owl ed ge recei pt o f t h ei r QW R wi t h in fi v e d ay s o r res p o n d w i t h i n 3 0 d ay s as

s t at u t o ri l y req u i red

. Th e Bro wn s al s o al l eg ed t hat t h e ban k fai led t o fo ll ow cert ai n

s t at u to ri l y -m an d at ed l o s s -m i t i g at i o n p ro ced ures

. 1 4

1 4 “ A l o s s -m i t i g at i o n ap p l i cat i o n i s a req u es t b y a b o rro wer fo r an y o f a n u m b er o f

al t ern at i v es t o fo recl o s u re, kn o wn as l o s s m i t i g at i o n o pt i o n s

, i n cl u d i n g

, am on g o t h ers

,

m o d i fi cat i o n o f t h e m o rt g ag e.” (Ci t at i o n an d p u n ct u at i o n o m i t ted .) Ur d a n et a v. W

el l s

Fa r g o Ba n k N.A.

, 7 3 4 F. Ap p x

. 7 0 1

, 7 0 4, n

. 1 (1 1 t h Ci r

. 2 0 1 8 ). In es t ab l i s h i n g h o w a

m o rt g ag e-l o an serv i cer h an d l es a b o rro wer’ s l o ss -m i ti g at i o n

, “ R e g u l at i o n X req u ires a

s erv i cer t o ev al uat e a co m p l et e lo ss -m i t i g at i o n ap p l i cat i o n wi t h i n 3 0 d ay s o f recei p t o f t h e

ap p l i cat i o n. Th e l o an s erv i cer’ s ob l i g at io n s, h o wev er, are tri g gered o n l y wh en t h e s erv i cer

recei v es fro m a b orro wer a co m p l et e l o s s m i t ig at i o n ap p li cat i o n m o re t h an 3 7 d ay s b efo re

a fo recl o s u re s al e.” (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 7 0 5

.

26Oco n ee Fed eral co nt en d s t h at t h e Bro wn s can n o t r e c o v e r o n th e cl ai m fo r

v i o l at i o n o f RESPA. It as s ert s t h at t h e Bro wn s h av e n o t s h o wn a v i ol at i o n o f RESPA

ari s in g fro m t h e req u es t f r o m i n f o rm at i on u n der t h at s t at u t e

, t h at no n e o f t h e

s t a t u t o ry earl y i nt erv en t i o n o r l o s s m i t ig at i o n req u irem en t s ap p l y b ecau s e Oco nee

F e d e r a l q u al ifi es as a “ s m al l s erv i cer” u n d er t he st at u t e, an d t h at ev en i f Oco nee

Fed eral v i o l at ed RESPA, t h e Bro wn s h av e n ot s uffered d am ag es t h erefro m

.

RESPA, 1 2 USC § 2 6 0 1 et s eq

, is a co n s um er p ro t ect i o n st at ut e t h at req u i res

l o an serv i cers of fed eral l y rel at ed m o rt g ag e l o an s t o p ro vi d e t i m el y wri t t en res p o n s es

t o b o rro w ers un d er cert ai n ci rcu m s tan ces

. See Reg u l a t i o n X, 1 2 CFR § 1 0 2 4

. 1

t h ro u g h § 1 0 2 4 .4 (Reg u l at io n X was i s s u ed t o i m p l em en t RESPA) ; F

r e e m a n v.

Qu i cken Lo a n s

, 5 6 6 U .S. 6 2 4 (1 3 2 SCt 2 0 3 4

, 20 3 8

, 1 8 2 LE2 d 9 5 5 (2 01 2 ). W h en a

b o rro wer s u b m i t s a QW R— a wri t t en co rres p o n d en ce t h at i n cl u d es t h e b o r r o wer’ s

n am e an d acco u n t a n d s u f fi ci en t d et ai l ab o u t t he i n fo rm at i o n s o u g h t

— t h e s erv i cer

m u st p ro v i d e “ a wri t t en res po n s e ack n o wl ed g i n g recei p t o f t h e co rres p o nd en ce.” 1 2

USC § 2 6 0 5 (e) (creat in g a “ [d ] u t y o f l o an s erv icer t o res p o n d t o b o rro wer in q u i ri es ”).

See al s o 1 2 CFR § 1 0 2 4

. 3 5 (b )(7 ) ( req u i ri n g th at a s erv i cer m u s t i n v es t i g at e an d

res p o n d t o a n o t i ce fro m

a b o rro wer t h at t h e s erv icer “ [f] ai l [ed ] t o p ro v i d e accu rat e

i n fo rm at i o n to a b o rro wer reg ard i n g l o s s m i t i g at io n o p ti o n s an d fo recl o s ure”). Th e

27s erv i cer g en eral l y h as 3 0 b u s i n es s d ay s t o res p o n d t o a n o t i ce o f erro r

. 1 2 U SC §

1 0 2 4 .3 5 (e) (3 ) (i ) (C). A s erv i cer m u st res p on d b y fi x i n g t h e erro r, cred i t i n g t h e

b o rro wer’ s acco u n t

, an d n o ti fy in g th e b o rro wer, o r co n cl u di n g th at t h ere i s n o erro r

b as ed o n an i nv es t i g at i o n an d t h en ex p l ai n i n g t h at co n cl u s i o n i n w ri t i ng t o t h e

b o rro wer. See 12 USC § 2 6 0 5(e) (2 ); 1 2 CFR § 10 2 4 .3 5(e) (1 ) (i ). If t h e s erv i cer fai l s

t o res p o n d ad eq u at el y t o t h e bo rro wer’ s n o t i ce o f erro r, t h en t h e b o rro wer h as a

p ri v at e ri g h t o f act i o n t o s u e th e s erv i cer u nd er RESPA. 1 2 USC § 2 6 0 5 (e) (2 ), (f).

Pret erm it t i n g wh et her Oc o n e e Fed eral i s s u b ject t o Reg u l at io n X an d o t h er

RESPA p ro v i s i o n s

, 1 5 we n o t e t h at t he o n l y rel ief av ai l ab le u n d er RESPA i s an award

o f act ual d am ag es an d ad d i t i o nal d am ag es i n cert ai n ci rcu m s tan ces , s o an as s ert i o n

t h at a s erv i cer b reach ed a d u t y u n d er RESPA wi t h o ut cau s i n g act ual h arm d o es n ot

s t at e a c l a i m u n d er t h e st at ut e. Ren f r o e v. Na t io n s ta r Mo rt

g

. , LLC

, 8 2 2 F3 d 1 2 4 1,

1 2 4 6 (1 1 t h Ci r. 2 01 6 ). See 1 2 USC § 2 60 5 (f) (1 ) ( ex p l ai n i n g th at RESPA m ak es

1 5 Oco nee F e d e ral as s ert s t h at i t s p o s t u re u n d er t h e s t at u t e as a “ s m al l s erv i cer”

ex cep ts it fro m cert ai n n o t i ce an d o t h er p ro v i s i o ns u n d er RESPA an d Reg u l at i o n X. See

1 2 CFR § 1 0 2 6 .4 1(e)(4 ))(i ) (“ A cred i t or, as si g n ee, o r s erv i cer i s ex em p t fro m t h e

req u i rem en ts o f th is s ect i o n fo r m o r t g ag e l o an s s erv i ced b y a s m al l s erv i cer.”) “ A s m al l

s erv i cer i s a s erv i cer t h at : (A) Serv i ces

, t o g et h er wi t h an y af f i l i a t e s

, 5 ,0 00 o r fewer

m o rt g ag e l o an s

, fo r al l o f w h i ch th e s erv i cer (o r an affi l i at e) i s t h e cred i t o r o r as s i g n ee.”

1 2 CFR § 1 0 2 6

. 4 1 (e)(4 ) (i i ).

28v i o l at o rs l i ab l e t o i n d i vi du al b o rro wers fo r “ (A) an y act u al d am ag es t o t h e b o rro wer

as a res u l t o f t h e fai l u re; an d (B) an y ad d it i o n al d am ag es

, as t h e co u rt m ay al l o w, in

t h e c a s e o f a p at t ern o r p ract i ce o f n o n co m p l i an ce wi th t he req u irem en ts o f t h i s

s ect i on ”). Fu rt herm o re, t h e act ual d am ag es m u s t ari s e “ as a res ul t o f” t he s erv i cer’ s

al l eg ed v i o l at i on . 1 2 USC § 2 6 0 5 (f) (1 ) (A).

Th e Bro wn s hav e fai l ed t o s h o w an y s u ch h arm

, an d th u s th e t ri al co u rt erred

i n d en y i n g Oco n ee Fed eral ’ s m o t i o n fo r s u m m ary ju d g m en t o n t h is cl ai m

as wel l

.

j . Pu n i t i ve Da ma g es a n d At t o r n ey Fees

Becau s e th ere rem ai n g en u i n e i s s u es o f m at eri al fact s as to t h e Bro wn s ’ cl ai m

fo r b reach o f t h e co ven an t o f go o d fai t h an d fai r d eal i n g, t h e t ri al co u rt d i d n o t err in

d en y i n g Oco n ee Fed e r a l s u m m ary ju d g m en t as t o pu n i t i ve d am ag es

. See Zh o n g v.

PNC Ba n k

, N.A.

, 3 4 5 Ga. Ap p

. 1 3 5

, 1 4 2 (2 ) (c) (8 12 SE2 d 5 14 ) (2 0 18 ) (“ [P] u n i t i v e

d am ag es m ay b e a w a r d ed ev en wh en act u al d am ag es are s m al l, an d t h ey m ay b e

award ed i n a cas e wh ere t h e p l ai n t i ff recei v es n o m in al b u t n o t act u al d am ag es

.

W h et h er t h e ci rcu m st an ces were s u ffi ci en t l y ag grav at i n g t o a u t h o ri ze p u n i t i v e

d am ag es i s a ju ry q u es t i o n

. ”) (ci t at i o n s an d p u nct u at i o n o m i t t ed ); W el l er v. B l a ke

,

3 1 5 Ga. Ap p

. 2 14

, 21 9 -2 2 0 (3 ) (a) (7 2 6 SE2 d 6 9 8 ) (2 0 1 2 ) (“ W h et her t h e t o rt was

s u ffi ci en t l y ag grav at i n g t o au t h o ri ze p u n it i ve d am ag es i s gen eral l y a j u ry q u es t i o n,

29an d a ju ry m ay award p u n i t iv e d am ag es ev en wh ere t h e cl ear an d co n v i n ci n g

ev i d en ce o n l y creat es an i n feren ce o f th e d efen d an t[‘ s ] co n sci o u s i nd i fferen ce t o t h e

co n seq u en ces o f [i t s] act s .”) (p u n ct u at i o n o m i t t ed ).

W i t h reg ard to at t o rn ey fees

, t h e Bro wn s al l eg ed en t i t l em en t t o at t o rn ey fees

u n d er OCGA § 1 3-6 -1 1 “ o n t h e g ro u nd s t h at [Oco n ee Fed e r a l ] act ed i n b ad fai t h,

were an d are st u bb o r n l y l i t i g i o u s

, an d h av e cau s ed

. . . u n neces s ary tro u b l e an d

ex p en s e.” “ [B] o t h t h e li ab i l i t y fo r an d am o u n t o f at t o rn ey fees p urs u an t to OCGA §

1 3 -6 -1 1 are s ol el y fo r t he ju ry ’ s d et erm i nat i o n

, [an d ] a t ri al co u rt i s n o t au t h o ri zed to

g ran t s u m

m a r y j u d g m en t in fav o r o f a cl ai m an t th erefo r.” 1 6 (Ci t at io n s o m i t t ed .)

Co vi ng t on S

q u a re As s o cs

. v. In g l es M kt s

. , 2 8 7 Ga. 44 5

, 4 4 6 (6 9 6 SE2 d 6 4 9 ) (2 0 1 0 ).

“ [A] l t h o ug h a tri al co u rt i s p erm i t t ed t o g ran t s u ch fees wh en i t s i t s as a t ri er o f fact

,

i t i s n o t a t ri er o f fact o n a m ot i o n fo r s u m m ary ju d g m en t

. ” ( P u n c t u a t i o n o m i t t ed .)

S h er m a n v. Di ckey

, 3 2 2 G a. Ap p

. 2 2 8

, 2 3 4 (2 ) (7 4 4 SE2 d 4 08 ) (2 01 3 ). Th e t ri al co u rt

1 6 O CGA § 1 3 -6 -1 1 p ro v i d es : “ Th e ex p en s es o f l i ti g at i o n gen eral l y sh al l n o t b e

al l o wed as a p a r t o f t h e dam ag es ; b u t wh ere t h e p l ai n ti ff has s p eci al l y p l ead ed an d h as

m ad e p ray er t h erefo r an d wh ere t he d efen d an t h as act ed in b ad fai t h

, h as b een s t u b b o rn l y

l i t i g i o u s, o r h as cau s ed th e p lai n t i ff u n n eces s ary t ro u b le an d ex p en s e, t h e ju ry m ay al l o w

t h em

. ”

30p ro p erl y

d en i ed Oco nee Fed eral ’ s m o ti o n fo r s um m ary ju d g m en t as t o t h e Bro wn s ’

cl ai m fo r at t o rn ey

fees

.

Ju d g men t a f f i r med i n p ar t a n d r ever

s ed in p a r t

. McMi l l i a n a n d Rees e, JJ.,

co n cu r

.

31