SECOND DI VI SI ON

M I LLER, P. J.

, M ERCI ER and C OOM ER, 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.

https ://w w w

. ga a ppe a ls .us /r ule s

D E A D LIN E S A R E N O LO N G E R TO LLE D IN T

H I S

C O U R T. A LL FILIN G S M U ST B E S U B M I TTE D WITH IN

TH E TIM E S S E T B Y

O U R C O U R T R U LE S

.

Nov em ber 2, 2020



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A2 0 A1 47 4

. TRICO ENVIRONM ENTAL SERVIC E S, INC. v

. KNIGHT PETROLEUM COM PANY et al

.

M I LLE R , Pres i d i n g J u d g e.

In t h i s d i s p u te i n v ol v i n g real p ro p ert y l ocat ed i n M eri wet h er Co u n t y

, G eo rg i a,

Tri co En v i ro n m en t al Serv i ces

, In c. (“ Tri co En v i r o n m en t al ”) ap p eal s fro m t h e t ri al

c o u r t ’s g ran t o f s u m

m ary ju d g m en t i n fav o r o f Kn i g h t Pet ro l eu m Co m pan y an d J P

Cap it al an d In s uran ce, In c. (“ t h e Defen d an t s ”). On ap p ea l

, Tri co E n v i ro n m en t al

arg u es t h at t h e t ri al co u rt erred i n g ran t i ng s u m m ary j u d gm en t becau s e g en u i n e i s s u es

o f m at eri al fact rem ai n o n i t s b reach o f warran ty

, n eg l i gen t m i s rep res en t at i o n, b reach

o f co n t ract

, an d t ort i o u s i n t erferen ce wi t h b us i n es s rel at io n s cl ai m s

. Fo r t h e reas on s

t h a t fo l l o w, w e rev ers e t h e t ri al co u rt ’ s o rd er g ran t i n g s u m m ary ju d g m en t o n Tri c o

En v iro nm en t al ’ s brea c h o f warran t y cl ai m

, b ut w e affi rm t h e t ri al co u rt ’ s o rd erg ran t i n g s u m m ary ju d g m en t o n Tri co En v iro n m en t al ’ s b reach o f co n t ract

, n eg l i g en t

m i s rep res en t at i o n , an d t o rt i o u s i n t erferen ce wi t h b u s i n es s rel at i o n s cl ai m s

.

Su m m ary ju d g m en t i s p ro p er i f t he p l ead i n g s an d ev i d en ce s h o w t hat

t h ere i s n o g e n u i n e i s s u e as t o an y m at eri al fact an d t hat t h e m o v i n g

p art y is en t i t l ed t o a ju dg m en t as a m at t er o f l aw. On ap p eal fro m a t ri al

co u rt ’ s g ran t o f su m

m ary ju d g m e n t

, w e 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 o n ab l e i n feren ces i n t h e l i g h t m o s t fav o rab le t o th e

n o n m o v i n g p art y

.

(Ci t at i o n o m i t t ed .) P er

f o r m a nce Fo o d Gr o u

p , In c. v. Da vi s

, 3 4 6 Ga. A p p

. 48 7

, 4 8 8

(8 1 6 SE2 d 4 6 8 ) (2 0 1 8 ).

So v i ewed

, t h e reco rd s h ows t h at d uri n g th e 1 9 70 s

, t h e Ci t y o f W o od b u ry was

co n st ru ct i n g a s ewer s y s t em al o n g th e b o u n d ari es o f cert ai n p ro pert y l ocat ed in

Wo od b u ry

, G eo rg i a, t h at was o wn ed b y Bi l l y Kn i g h t

. Acco rd in g t o t h e Ci t y o f

W o o d b ury

, Kn i g h t h ad req u es t ed t h at th e ci t y in s t al l th e s ewer li n e to p rev en t t h e

co n st ru ct i o n o f t h e s ewer l i n e fro m d i s t u rb i ng h i s g as s t at i o n, wh i ch was l o cat ed o n

t h e p ro p ert y

. In 1 9 9 2

, Kn i g ht Pet ro l eu m acq u ired t h e p ro p ert y fro m Bi l ly K ni g h t v i a

warran t y d eed

. 1 Pri o r t o cl o s i n g o n t h e p ro p ert y

, Kn i g h t Pet ro l eu m o b t ai n ed a p l at

s u rv ey o f t h e p ro p ert y

, an d t h e su rv ey d i d n ot s h o w t h e ex i s t en ce o f a s ewer l i n e, n o r

1 Bi l l y Kn i g h t h ad al s o acq u i red t h e p ro p ert y v i a warran t y d eed i n 1 9 6 7

.

2d i d i t m ak e a n y r e feren ce t o an y u t i l i t y eas em en t. Th e warran t y d eed co n v ey ed by

Bi l l y Kn i g h t al s o d i d n o t referen ce a s ewer l i n e o r a u t il i t y eas em en t

.

On Sep tem

b er 9

, 2 0 0 5

, Tri co En v i ro n m en t al p urch as ed th e p ro p ert y fro m

Kn i gh t Pet ro l eu m

v i a warran t y

d eed . At t he t i m e o f t h e p u rch as e, Hen ry An d ers o n,

Kn i gh t Pet ro l eu m ’ s p res id en t

, pro v i d ed an affi d av i t to Tri co E n v i ro n m en t al av erri n g

t h at “ s ai d real es t at e, t h e i m pro v em en t s

, eq u i p m en t, ap pl i an ces

, o r fi x t u res at t ach ed

t h eret o are fr e e an d cl ear o f al l l i en s

, en cu m b ran ces

, res t ri ct i o n s

, as s es s m en t s

,

en cro ach m en t s, l eas es

, t en an ci es an d occu p a nc ie s

. . . . ” T r ic o E nviro n m en t al o b t ai n ed

a lo an fro m J P Cap it al t o fi n an ce t h e p u rch as e, g ran t ed JP Cap i t al a s ecu ri ty d eed in

t h e am o un t o f $ 20 0 ,0 0 0 , an d u s ed t h e p ro p ert y t o o p erat e a fru i t s t an d

.

Tri co E n v i ro n m en t a l e v e n t u al ly fel l b eh i nd i n i t s p ay m en t s o n t h e l o an

, an d,

v i a a let t er d at ed J an u ary 2 6

, 2 0 1 6

, J P Cap i t al n o t i fi ed Tri co En v i ro n m en t al t h at i t

wo u l d i n it i at e fo r e c l o s u re pro ceed i n g s u n les s T ri co En v iro n m en t al p ai d wi t h i n 1 0

d ay s a t o t al d eb t o f $ 12 2 ,5 1 1 .5 5 p l u s a t t o rn ey fees

. O n Feb ru ary 9

, 2 0 16

, Tri co

En v iro nm en t al p ai d J P Cap i t al $ 4 ,1 2 5. Ch arl es Hu d s o n

, Tri co En v i ro n m en t al ’ s

o wn er, co n t act ed W i l l i am “ Bi ll ” J on es ,” J P Cap i t al ’ s p res i d en t

, an d as k ed wh et h er

J P Cap i t al wo u l d co n t in u e s erv i ci n g t h e l o an

, an d J on es t o l d Hu d s o n “ n o” an d t h at

h e wo u l d p refer fo r Hu d so n t o o b t ai n fi n an ci ng el s ewh ere.

3Hu d so n t h en co nt act ed Jo h n Bark er fro m Fi rs t Ban k o f Pi k e (“ Pi ke”) t o s eek

refi n an ci n g o f t he l o an

. In a l et t er d at ed Feb ru ary 2 4

, 2 0 1 6, J o n es t o l d Bark er t h at J P

Cap it al wo u l d no t fo recl o s e o n t h e p ro p ert y i f p ay m en t was t en dered b y Feb ru ary 2 9,

2 0 1 6

, in t h e a m o u n t o f $ 11 9 ,0 9 2 .0 5

. Hu d s o n s u b s eq u en tl y p ro v i d ed a ch eck t o J P

Cap it al in th e am o u n t of $ 1 1 9,0 9 2 .0 5 o n Feb ru ary 29

, 2 0 16

. A cco rd i n g t o Ch ri s t i n a

St ep h en s, an acco u nt a n t

, t h e ch eck w as recei v ed b u t s h e i n fo rm ed Hu d so n t h at t h e

ch eck w as i n su ffi ci en t b ecau s e t he at t o rn ey fees an d co s t s as s o ci at ed wi t h t h e

fo r e c l o su re p ro ceed i ng s were s t i l l o wed an d were m i s t ak en l y l eft o u t o f t h e p ay o ff

am ou n t

. J P Cap i t al lat er s to p p ed i t s fo recl o s u re p ro ceed in g s

, b u t it n o t i fi ed Pi k e an d

Tri co En vi ro n m en t al i n sep arat e l et t ers t h at i t wo u l d h av e t o p ay a b al an ce o f $ 8 2 0

fo r t h e at t o rn ey

fees an d fo recl o s u re co s t s fo r i t t o rel eas e i t s l ien

.

In J an u ary 2 01 7

, T r i c o En v i ro n m en t al so u gh t t o red ev el o p t h e p ro p ert y to

co n st ru ct a res t au ran t an d g i ft s h o p t h ro u g h an ad d i t io n al l oan fro m Pi k e. Pi ke,

h o wev er, d ecl i n ed t o p ro v i d e t h e fi n a n c i n g un l es s JP Cap i t al rel eas ed i t s l i en

.

Ad d i t i o n al l y

, Tri co En v i ro n m en t al al s o d i s co vered t h e ex is t en ce o f a fo rce m ai n

s ewer l in e on t h e p ro p ert y b el on g i n g t o t h e Ci t y o f W o od b u ry

. Th e Ci t y o f W o o d bu ry

wo u l d no t co n s en t t o Tri co En v i ro n m en t al b ui l d i n g o n t o p o f t h e s ewer l i ne, b u t i t

was wi l l i n g to m o v e t h e s ewer t o an o th er l o cat i o n o n t he pro p ert y i f Tri co

4En v iro nm en t al g av e i t an e a s e m en t t o acces s an d m ai n t ai n t h e s ewer l i ne.

Co n s t ru ct i o n fo r th e n ew s ewer was p ut o n h o ld

, h o w ev er, d u e t o J P C a p i t al ’ s

u n wi l l i n g n es s t o rel eas e i t s l ien . J P Cap i t al l at er rel eas ed i ts l i en i n M ay 2 01 8

.

T r i co En v iro nm en t al fi l ed t h e i n s t an t s ui t ag ai n s t t h e Ci t y of W oodbur y

, K night

Pet ro l eu m

, an d JP Cap i t al an d as s ert ed cl ai m s fo r tres p as s o r i n v ers e co n dem n at i o n

ag ai n s t t h e Ci t y o f W o od b u ry

, b reach o f warran t y d eed an d fai l u re to d i s cl o s e ag ai n s t

Kn i gh t Pet ro l eu m

, an d b reach o f c o n t ract ag ai n s t J P Cap i t al

. 2 In an am en d ed

co m p l ai n t

, Tri co En v i ro nm en t al as sert ed ad d it i on a l c l ai m s fo r n eg l i g en t

m i s rep res en t at i o n ag ai n s t Kn i gh t Pet ro l eu m an d i n t erferen ce wi t h b u s i n es s rel at i on s

ag ai n s t J P Cap it al

. 3 Kn i g h t Pet ro l eu m an d JP Cap i t al an s wered t h e co m p l ai nt

, an d J P

Cap it al fi l ed a co u n t ercl ai m ag ai n s t Tri co En v i ro n m en t al fo r b reach o f co n t ract an d

at t o rn ey fees

. Kn i g h t P e tro leu m an d J P Cap it al l at er fi l ed m o t i o n s fo r s u m m ary

ju d g m en t , wh i ch t h e t ri al co u rt l at er g ran t ed . Th i s ap peal fo l l owed

. 4

2 Tri co En v i ro n m en tal lat er d i sm is sed i t s cl ai m s ag ai n s t t h e Ci t y o f W oo d b u ry

.

3 Tri co En v i ro nm en t al l at er fi l ed a s eco n d am en ded co m p l ai n t

, p l e a d i n g t h at

t h e s e w e r l i n e i s an en cu m bran ce t h at i n terferes wi t h i t s u s e an d en jo y m en t o f t h e

p ro p ert y

.

4 Tri co En v i ro n m en t al co n ced ed b el o w t h at Kn i g h t Pet ro l eu m was en t i t l ed to

s u m m ary ju d g m en t o n i t s fai l u re t o d i scl o s e cl ai m

.

51

. Fi rs t

, Tri co En v i ro nm en t al arg u e s t h at t h e t ri al co u rt erred in g ran t i n g

sum m ary ju d g m en t on i t s b reach o f warran t y cl ai m

. Sp eci fi c a lly

, T r ic o E nvir onm e nta l

ar g u e s t h a t Kn ig h t Pet ro l eu m g av e i t a warran t y t h at t h e p ro p ert y was free o f

e n c u m b ran ces wh en

, in fact

, a fo rce m ai n s ewer l i n e bel o n g i n g t o t h e Ci t y o f

W o o d b ury t rav ers ed th e p ro p ert y

. W e ag ree an d co n cl u d e t hat t h e tri al co u rt erred in

g ran t i n g s u m

m ary ju d gm en t o n t h is cl ai m

.

Un d er OCGA § 44 -5 -6 2, “ [a] g en eral warran t y of t i tl e ag ai ns t th e cl ai m s o f al l

p ers o n s i ncl u d es co v en an t s o f a ri g h t t o sel l

, o f q u i et en jo y m en t

, an d o f freed o m fro m

en cu m b ran ces .” Al s o

, “ a g en eral warran t y o f t i t l e ag ai n s t t h e cl ai m s o f a l l p ers on s

co v ers d efect s i n t h e ti t l e ev en i f t h ey are k n o w n to t h e p u rch as er at t h e t i m e h e t ak es

t h e d eed

. ” OCGA § 4 4 -5 -6 3 . Th u s

,

[ i ]n a n a c t i o n fo r t h e b reach of a co v en an t o f warran t y o f t it l e, th e

b u rd en i s up o n th e p l ai n t i ff t o sh o w ev i ct i o n u n d er a p aram o u n t

o u t s t an d i n g t i tl e. Th e ru l e s eem s t o b e ev ery wh ere reco g ni zed t hat t o

co n s t i t ut e a b reach o f t h e co v en an t o f w a r r a n t y, an ev ict i o n o r

eq u i val en t di s tu rb an ce b y t i t le p aram ou n t m u s t o ccu r, an d t h at t h e m ere

ex i s ten ce o f an o u t s t an d i n g p aram ou n t t i tl e wi l l n o t co n s ti t ut e a b reach

.

(Ci t at i o n an d p un ct u at i o n o m i tt ed .) La f o n t a i n e v. Al exa n d

er

, 3 4 3 Ga. Ap p

. 6 7 2

, 6 7 8

-

6 7 9 (3 ) (8 0 8 SE2 d 5 0) (2 0 1 7 ). Ad d i t i o n al l y

, as Tri co En v i ro n m en t al co rrect l y arg u es

,

6“ a g en eral warran t y o f ti t le i ncl u d es t h e warran t y of freed o m fro m en cu m b ran ces

, an d

i t i s n o t n eces s ary t o sh o w act u al e v i c t i o n .” (Ci t at i o n o m i t t ed .) M cMu r r a y v.

Ho u s wo r t h

, 2 8 2 Ga. Ap p

. 2 80

, 2 8 6 (2 ) (6 3 8 SE2 d 4 2 1 ) (2 00 6 ); s ee al s o W ei s s v. Ol d

Rep ub l i c Na t

. Ti t l e In s

. Co

. , 2 6 2 Ga. Ap p. 1 2 0

, 1 2 2 (1 ) (5 8 4 SE2 d 7 1 0 ) (2 0 0 3 ) (“ In

a s u i t fo r b r e a c h o f warran ty o f t i t le, t h e b u rd en is on t h e p l ai n t i ff t o s ho w ev i ct i o n

o r t h at wh i ch am o u n ts t o an ev i ct i on o r an o u t s t an d i n g param o u n t ti t le wh i ch h e was

o b l i g ed t o y i el d t o a t h i rd p ers o n .”) (ci t at i o n s o m i t t ed ).

In McMu r r a

y

, s up ra, fo r i n s t an ce

, t h e p l ai n ti ffs p u rch as ed 1 2 -acre p arcel s an d

al s o recei v ed g en e r a l w a r

r a nt i es o f t i t l e i n co nn ect i o n wi t h t h ei r p u rch as e. M cMu r r ay

,

s u p ra, 2 8 2 Ga. A p p. at 2 81

. I n t h e ch ai n o f t it l e t o t h e p ro p ert y

, h o wev er, was a

“ fl o o d wat er ret ard i n g st ru ct u re” eas em en t w hi ch h ad b een g ran t ed t o t h e d i s t ri ct

. Id

.

Th e eas em en t w as fo r t h e co ns t ru ct i on o f a st ru ct u re o r d am

, an d i t g av e t h e g ran t o r

an d t h e s u cces s o rs t h e ri g h t t o u s e t h e eas em en t

. Id

. In rev ers i n g t h e t ri al co urt ’ s

d en ial o f t h e p l ai nt i ffs ’ b reach o f warran ty cl ai m

, we fi rs t n o t ed t h at t h e p l ai n t i ffs

were co m p l ai n in g o f a b reach o f t h e co v en an t of freed o m fro m en cu m b ran ces

, s u ch

as t he cl ai m i n t h e i n s t an t cas e. Id

. at 2 86 (2 ). W e no t ed t h a t “ a n e a s e m e n t i s an

as s ert i o n o f a p aram o u n t q u al i fi ed i n t eres t i n t h e l an d , [an d ] i t s effect m ay cau s e an

ev i ct io n o f t he o w ner o f t h e p ro p ert y bu rd en ed b y t he eas em en t i ns o far as [i t s ]

7e x cl u s i v e u s e o f t h e eas em en t area was co n cern ed .” (Ci tat i o n om i t t ed .) I d

. We

t h erefo re h el d t h at “ [b ] ecau s e t h e e v i d e n c e sh o w [ed ] wi t h o u t d i s p u te t h at t h e

[d efen d an t s] b reach ed t h ei r g en eral warran t i es of ti t l e, t h e s u peri o r co u rt erred in

award i n g s u m

m ary ju d g m en t t o t h e [d efen d an t s ] . . . .” Id

.

Here, t h e reco rd s h o ws t h at at th e t i m e o f th e p u rch as e, Kn i gh t Pet ro l eu m

p ro v i d e d an affi d av i t an d av erred t h at t h e p ro p ert y was “ free an d cl ear o f al l l i en s

,

en cu m b ran ces

, res tri ct i on s

, as s es s m en t s

, en cro ach m en t s, l eas es

, t en an ci es an d

o ccu pan ci es

. . . .” Kn i g h t Pet ro leu m al s o p ro v i d ed a warran t y d eed i n co n n ect i o n wi th

t h e pu rch as e t h at s ai d t h at i t wo u l d “ warran t an d fo rev er d efen d t h e ri g h t an d t i t l e to

t h e

. . . p ro p ert y

, u n t o t he s ai d Gran t ee ag ai n s t t h e cl ai m s o f al l pers o n s wh o m s o ev er.”

W h en Tri co En v i ro n m en t al s o u g h t t o d ev el op t h e p ro p ert y

, i t d i sco v ered t h e pres en ce

o f a sewer l i n e, an d t h e Ci t y o f W o o d b u ry w o u l d n ot co ns en t t o T ri co E n v i ro n m en t al

b u i l d i n g on t o p o f th e s ewer l i n e. T h e Ci t y di d

, h o w ev er, co n sen t t o m o v e t h e s ewer

l i ne t o a n o t h er l o cat io n o n t h e p ro p ert y o n t h e co n d i t i on th at Tri co E n v i ro n m en t al

g ran t i t an eas em en t t o acces s an d m ai n t ai n t h e sewer l i n e. Th u s

, t h ere ap p ears t o b e

ev i d en ce i n t he reco rd t hat t h e Ci t y i s as s ert i n g o r at t em

pt i n g to as s ert i t s eas em en t

ri gh t s i n th e p ro p ert y ag ai n s t Tri co En v i ro nm en t al

. Th erefo re, we co n cl u de t h at t h i s

8ev i d en ce s ho ws th at g en ui n e is s u es o f m at eri al fact rem ai n o n Tri co En v i ro n m en t al ’ s

b reach o f warran t y cl ai m

.

To s u p p o rt i t s arg u m en t tha t the t r ia l c our t c or rect l y g ran t ed s u m

m ary ju d g m en t

o n t he b reach o f warran t y cl ai m

, Kn i g h t Pet ro leu m rel i es o n ou r d eci si o n i n Ro b er t s

v. Ma lu Co n s t r

., In c.

, 2 1 7 Ga. A p p

. 55 1 (4 5 8 SE2 d 1 4 6 ) (1 9 9 5). Th ere, t h e p l ai n t i ff

h ad en t ered i n t o a c o n t r a c t w i t h t h e d efen d an t t o p u rch as e a cert ai n l o t o f real

p ro p ert y

. Id

. T h e d efen d an t ex ecu t ed a w arran t y deed t h at p ro v i d ed t hat t h e l o t “ was

s u i t ab l e fo r t h e co n s t ru ct i o n o f a s i n g le fam i l y d wel li n g, an d t h at t h e l o ts co n v ey ed

were l ot s u p on w h i ch t h e au t h o ri t i es o f [t h e co un t y ] w o u l d p erm i t th e co ns t ru ct i o n

o f s i n g l e fam il y dwel l i n g s .” Id

. W h il e d ev el o p i n g t h e p ro p ert y

, t h e p l ai n t i f f

d i s co v ered wet s oi l had b eg un t o accu m ul at e o n t h e l an d

. Id

. T h e c o u n t y h eal th

d ep art m en t i n fo rm ed t h e p lai nt i ff t h at t h e au t ho ri t y t o i n s t al l a sep t i c t an k o n t h e l ot

h ad b een rev ok ed d u e t o t h e d i s co v ery o f a d rai n ag e eas em en t t h at h ad di rect ed wat er

t h ro u g h th e cen t er o f t h e lo t. Id

. In affi rm in g t h e tri al co u rt ’ s g ran t o f a d i rect ed

v erd i ct o n th e p lai n t i ff’ s b reach o f warran t y cl ai m

, we h el d t h at

, o n a c o v e n an t fo r

q u i et p o s s es s i o n

, lo s s o f p o ss es s i o n h ad t o b e s ho wn an d t h ere was n o ev i d en ce o f an

act u al o r co n s t ru ct i v e ev i ct io n . Id . at 5 5 2 (2 ).

9Aft er a cl o se an al y si s o f Ro b er t s an d McMu r r a

y

, we co ncl u d e t h at t h e fact s o f

t h i s cas e are m o re s i m i l a r t o t h o s e i n McMu r r ay t h an in Ro b er t s

, an d t h erefo re we

ap p ly t h e h o l d in g of McMu r r a y t o t h e fact s o f t h i s cas e. Kn i g h t Pet ro l eu m ’ s at t em pt

t o d i s t i n gu i s h t h is cas e fro m o u r d eci s i o n i n McMu r r a y

, s u p ra, al s o fai l s

. Sp eci fi cal l y

,

Kn i gh t Pet ro l eu m at t em

p t s t o d i s t i n g u i s h McMu r r a y b as ed o n t h e n at u re o f t h e

en cu m b ran ce an d i t s vi ew t h at McMu r r a y s ho u l d n o t ex ten d t o cas es wh ere th e s el l er

h ad no k n o w l ed g e o f th e eas em en t at t he t i m e o f t he s al e. Bo t h a r g u m e n t s are

u n av ai l i n g

. Fi rs t

, K

n ig h t fai l s t o fu l l y ex p l ai n t he d i fferen ce b et ween a fl o o d wat er

ret ard i n g s t ru ct u re an d a fo rc e m a i n s ewer l i n e fo r pu rp o s es o f t he an al y s i s fo r a

b reach o f warran t y cl ai m

. Seco n d

, Kn i g h t Pet ro l eu m fai ls t o i d en t ify an y cas e wh ere

a co u rt h as h el d t h at a s el l er m u s t h a v e p r i or k n o wl ed ge o f an en cu m b ran ce o r

eas em en t a t t h e t i m e o f t h e s al e o f p ro p ert y i n o rd er t o b e li ab l e on a b reach o f

warran t y cl ai m

. Acco rd i n gl y

, we co n cl u d e t hat g en u i n e is s u es of fact rem ai n o n Tri co

En v iro nm en t al ’ s b reach o f warran t y cl ai m an d t h at t h e t ri al co u rt t h erefo re erred in

g ran t i n g s u m

m ary ju d gm en t o n t h is cl ai m

.

2

. Seco nd

, Tri co En v i r o n m en t al arg u es th at t h e t ri al co u rt erred i n g ran t i n g

s u m m ary ju d gm en t o n i ts cl ai m t h at Kn i g h t Pet ro l eu m n eg l i gen t l y m i s r e p r e s en t ed

t h at t h ere were n o en cu m b ran ces o n t h e p r o pert y b y co n st ru i n g t h e ev i den ce i n t h e

10reco rd ag ai n s t i t an d b y p res u m i n g fact s t hat were n o t i n ev i d en ce. W e co n cl u d e t h at

t h e t ri al co urt p ro p erl y

g ran t ed s u m

m ary ju d g m en t o n t h is cl ai m

.

“ Th e es s en t i al el em en t s o f a cl ai m o f n eg l i gen t m is rep res en t at i on are: (1 ) t h e

d efen d an t ’ s n eg l i g en t su p p ly o f fal s e i n fo rm at i o n t o fo res eeab l e p ers on s , k n o wn o r

u n k n o wn ; (2 ) s u ch p ers o n s ’ reas o n ab l e rel i an ce u p o n t h at fal s e i n fo rm at i o n; an d (3 )

eco n om i c i n

ju ry p ro x i m at el y res u l t i n g fr om suc h rel i an ce.” (Ci t at io n an d pu n ct u at i o n

o m it t ed .) Ho me Dep o t U

. S

. A., In c. v. W

a b a s h Na t

. Co r

p

. , 3 1 4 Ga. Ap p

. 3 6 0

, 3 6 7 (3 )

(7 2 4 SE2 d 5 3 ) (2 0 1 2 ). “ T h e s am e p r i n c i p l e s ap p ly t o bo t h frau d an d n eg l i g en t

m i s rep res en t at i o n cas es an d t he o n l y re a l d i st i nct i o n b et ween n eg l i g en t

m i s rep res en t at i o n an d frau d i s t h e ab s en ce o f th e el em en t o f k no wl ed g e o f t h e fal s i t y

o f t he i n fo rm at i o n d i s cl o s ed .” (Ci t at i o n an d p u n ct u at i o n o m it t ed .) B o wd en v. Med i ca l

Cen ter

, In c.

,

_ __ G a.

_ _ _, (2 ) (b ) n

. 1 1 (8 4 5 SE2 d 5 5 5 ) (2 0 2 0 ). U n d er t h i s co n s t ru ct

,

we h av e h el d th at “ t h e l aw i n Geo rg i a i s wel l-s et t l ed t h at i n th e p u rch as e an d s al e o f

real es t at e t h ere is an u n d erl y i n g p ri n ci p l e o f l a w t o t h e effect t h at on e can n o t b e

p erm i t t ed t o cl ai m t h at h e has b een d ecei ved b y fal s e rep res en tat i on s ab ou t w h i ch h e

co u ld h av e l earn ed t h e tru th o f th e m at t er an d co u ld h av e av o i d ed dam ag e.” (Ci t at i o n

o m it t ed .) Ha n l o n v. Th o r n t o n

, 2 1 8 Ga. Ap p

. 50 0

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

Th erefo re, “ a fai l u re t o o bt ai n a n d s u p p l y i nfo rm at i on do es n o t s t at e a cl ai m fo r

11n eg li g en t m i s rep res en t at i on .” Fu t ch v. Lo wn d es Co u n t y

, 2 9 7 Ga. Ap p

. 3 0 8, 3 1 2 (4 )

(6 7 6 SE2 d 8 9 2 ) (2 0 0 9 ).

Here, Kn i g h t Pet ro l eu m ’ s pres i d en t t es t i fi ed in h i s d ep os i t i o n t hat h e fi rs t

l earn ed o f t h e s ewer l i ne’ s p res en ce o n t he p ro p ert y d u ri n g th e co urs e o f t h e i n s t an t

act i on

. M o reo v er, t h e reco rd sh o ws t h at Tri co En v i ro n m en t al h ad eq u al o p p o rt u n i t y

t o d i sco v er t h e s e w e r ’ s p res en ce. Tri co En vi ro n m en t al l eas ed th e p ro p ert y fro m

Kn i gh t Pet ro l eu m Co m

p an y fo r ap p ro xi m at el y s i x m o n t h s p ri or t o p u rch as i n g i t

, an d

i t s o wn er t es ti fi ed i n h i s d ep o si t i o n t h at

, i n p rep arat i o n fo r t h e pu rch as e, h e in s p ect ed

t h e p ro p ert y

an d t h at h i s at t o rn ey

“ ch eck ed t h e co u rt ho u s e” reco rd s

.

Th u s

, we co n cl u d e t h at t he t ri al co u rt di d n o t err i n g ran t i n g s u m m ary ju d g m en t

o n t h i s cl ai m

. T ri co En v iro nm en t al ’ s n eg l i g en t m i s rep res en t at i o n cl ai m i s b as ed

s i m p l y o n Kn i g h t Pet ro l eu m ’ s fai l u re t o ob t a i n a n d su p p l y i n fo rm at i o n

, wh i ch i s

i n s u ffi ci en t t o s h o w an en t i t l em en t t o rel i ef on a neg l i g en t m i s rep res en t at i o n cl ai m

.

Fu t ch

, s u p ra, 2 9 7 Ga. Ap p

. at 3 1 2 (4 ). Co ns eq u en t l y

, Tri co En v iro n m en t al ’ s

n eg li g en t m i s rep res en tat i o n cl ai m fai l s

.

Fu rt herm o re, t o t h e ex t en t t h at Tri co En v i ro n m en t al arg u es t h at t h e t ri al co u rt

p res u m ed fact s o u t s i d e of t h e reco rd i n ru li n g o n t h e m o t i o n

, t hi s cl ai m al s o fai l s

. To

s u p p ort th i s cl ai m

, Tri co En v i ro n m en t al rel i es up o n l an gu ag e i n t h e t ri al co urt ’ s o rd er

12t h at s tat e s

, “ [p ] res u m ab l y a ch eck o f Ci t y H al l reco rd s wo ul d h av e i nd i cat ed t h e

p res en ce o f t h e s ewer l i ne.” Th i s s t at em en t d o es n o t s u p p ort t h e co n t en ti on t h at t h e

t ri al co urt rel i ed u p o n ev i d en ce o u t s i de o f t h e reco rd i n ru l i n g on t h e m o t i on

. Th e t ri al

co u rt ’ s rem ark s were m erel y a p art o f i t s l arg er ru l i n g th at T ri co En v i ro m en t al fai l ed

t o ex erci s e d u e d il i g en ce. Su ch a s t at em en t, h o w e v e r

, d o es n o t en t i t l e Tri co

En v iro nm en t al to a rev ers al of t h e t ri al co u rt ’ s s u m m ary ju d g m en t o rd er o n t hi s cl ai m

.

Acco rd in g ly

, t h e t ri al co u rt d i d n o t err i n g ran t i n g s u m m ary ju dg m en t o n th i s cl ai m

.

3

. Nex t

, T ri co En v i ro n m en t al arg u es t h at t h e t ri al co u rt erred i n g ran t i n g

s u m m ary ju d g m en t on it s b reach o f co n t ract cl ai m

. Sp eci fi cal l y

, T ri co E n v i ro n m en t al

arg u es t h at J P Cap i t al b reach ed t h e ag reem en t t h at i t m ad e i n i t s Feb ru ary 2 4 , 2 0 1 6

l et t er t o Pi k e wh erei n J P Cap it al “ g u aran t eed ” t hat i t w o u l d n o t fo recl o s e o n t h e

p ro p ert y i f p ay m en t was m ad e wi t h in a cert ai n t i m e p eri o d

. W e d i s ag ree an d co n cl u d e

t h at t h e t ri al co u rt p ro p erl y g ran t ed s u m

m ary ju dg m en t o n t h i s cl ai m

.

“ Th e el em en t s 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 h e p a rt y wh o h as t h e ri 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 en .” (Ci t at i on o m i t t ed .) No r t on v. Bu d get Ren t A Ca r S

ys t em, In c.

,

3 0 7 Ga. A p p

. 5 0 1

, 5 0 2 (7 0 5 SE2 d 3 0 5 ) (2 0 1 0 ). Here, as i t d id b el o w, Tri co

En v iro nm en t al b as es i t s b reach o f co n t ract cl ai m o n th e l aw o f a c c o r d an d

13s at i s fact i o n

. As su m i n g

, wi t h o u t d eci d in g

, t h at Tri co En v i ro nm en t al was a t h i rd -p art y

b en efi ci ary t o t h e l e t t er b et ween J P Cap i t al an d Pi ke s u ch t hat i t co u l d s eek i t s

en fo rcem en t

, Tri co E n v i ro n m en t al wo ul d s t i l l n o t p rev ai l o n t he t h eo ry o f acco rd an d

s at i s fact i o n

.

An acco rd an d s at is fact i on o ccu rs wh en t h e p art i es to an ag reem en t

, b y

a s u bs eq u en t ag reem en t

, h av e s at is fi ed t he fo rm er ag reem e n t

, an d th e

l at t er ag ree m en t h as b een ex ecu ted

. An acco rd an d sat i sfact i o n i s a

co n t ract

, wh ich req u i res a m eet i n g o f t h e m i n d s t o ren der i t v al id an d

b i n d i n g

. A d efi n i te o ffer an d co m p l et e accep t an ce, fo r co n s i d e r a t i o n

,

creat e a b i n d i n g co n t ract

.

(Ci t at i o n s an d p u n ct uat i o n o m it t ed

. ) U S A Mf g

. Co r p

., v. Per f ect i o n

- S c h wa n k, In c.

,

2 7 1 Ga. Ap p . 6 3 6 , 6 3 8 (1 ) (6 10 SE2 d 6 0 0 ) (2 0 0 5). An d, u n der OCGA § 1 3 -3 -1 , an

es s en t i al el em en t t o co n t ract fo rm at i on i s “ t he as s en t o f t h e p art i es t o t h e t erm s o f t h e

co n tract

, an d a s u b

ject m at t er u p o n wh i ch t he co nt ract can o p erat e.” “ [A] s a g en eral

ru l e, wh et h er t h ere i s an acco rd an d s at i s fact i o n is a q u es t i o n fo r t h e ju ry

. H o wev er,

t h ere are cas es wh ere t he i s su e o f acco rd an d s at i s fact i o n h as b een p ro p erl y d eci d ed

o n s u m m ary ju d g m en t .” (Ci t at i o n s an d pu n ct uat i o n o m i t t ed .) US A Mf g

. Co r p.

, s u p ra,

2 7 1 Ga. Ap p . at 6 38 (1 ).

14Here, i n t h e let t er fro m J P Cap i t al t o t h e p res i d e n t o f Fi rs t Ban k o f Pi k e, J P

Cap it al “ gu aran tee[d ] ” t h at it wo u l d n o t pu rs u e fo recl o s ure o n th e p ro pert y p ro v i d ed

t h at it recei v ed p ay m en t i n th e am o un t o f $ 11 9 ,0 9 2.0 5

. A t n o po i n t i n t h e l et t er,

h o wev er, d i d J P Cap i t al p ro m is e t h at i t wo ul d al s o rel eas e i t s li en o n th e p ro p ert y i f

p ay m en t was recei v ed i n t h e am o u n t referen ced ab o v e. In d eed

, t h e l e t t er m ak es n o

m en t i o n wh at s oev er as t o t h e l i en an d wh at act i o n wo u l d be t ak en w i t h reg ard t o t h e

l i en i f p ay m en t i n t h e ab o ve-s t at ed am o u n t was recei v ed

. Fu rt h erm o re, t h e reco rd i s

cl ear t h at J P Cap i t a l i n fo rm ed Tri co En v i ro n m en t al an d Fi rs t Ban k o f Pi k e t h at

ad d it i o n al s t ep s were req u i red t o rel eas e t h e l ien

, an d T ri co E nv i ro nm en t al m ak es n o

arg u m en t t hat i t s at i s fi ed t h e ad d i t i o n al co n d i t i o n s fo r t h e l ien t o b e rel eas ed

. No r i s

t h ere an y ev i d en ce i n t h e reco rd t h at Tri co En v i ro n m en t al co n di t i o n ed t h e accep t an ce

o f t h e ch eck o n t he rel eas e of t h e l i e n

. A cco rd i n gl y

, t h e Feb ru ary 2 4

, 2 0 1 6 l et t er

s h o ws n o m eet i ng o f t h e m i n d s b et w een t h e part i es as t o th e rel eas e o f t h e l i en

.

Co n s eq u en t l y

, t h ere was no acco rd an d s at i s fact i o n i n t h i s cas e, an d a l l o f Tri co

E n v i ro n m en t al ’ s arg u m en t s i n t h i s res pect n eces s ari l y fai l

. See US A Mf g

. C o r p

. ,

s u p ra, 2 7 1 Ga. Ap p

. at 6 3 8 -6 3 9 (1 ) (h ol d i ng t h at s u m m ary ju dg m en t was p ro p er o n

b reach o f co n t ract cl ai m b as ed up o n acco rd an d s at i s fact i o n

, wh ere, al t h o ug h cred it o r

n eg ot i at ed t wo ch eck p ay m en t s o n t he deb t owed

, t here was n o e v i d en ce

15d em o n s t rat i n g t h at t he d eb t o r co n d i t i o n ed t h e accep t an ce o f i t s p ay m en t o n t h e

s at i s fact i o n o f t h e n o t e an d t h e cred i t o r s t at ed t hat t h e co n tract w o u l d n o t b e

co n si d ered ex ecu ted u n l es s ad di t i o n al t erm s were s at i s fi ed ); s ee al s o Is b el l v. Cr ed i t

Na t io n Len d in g S

vc., LLC

, 3 1 9 Ga. Ap p

. 1 9

, 2 5 (2 ) (b ) (7 3 5 SE2 d 4 6 ) (2 0 12 ) (s t at i n g

t h e g en eral ru l e th at o n rev i ew o f a t ri al co u rt ’ s g ran t o f s u m m ary j u d gm en t

, “ we m ay

s t il l affi rm

t h e t ri al co u rt ’ s ju dg m en t i f i t i s ri g ht fo r an y reas o n ”).

4

. Las t l y

, Tri co En v i ro n m en t al arg u es t hat t h e t ri al co urt err e d i n g ran t i n g

s u m m ary ju d gm en t o n i t s cl ai m t h at J P Cap i t al i n t erfered wi t h it s bu s in es s rel at i on s

wi t h Pi k e wh en it refu s ed to rel eas e i t s l i en o n t h e p ro p ert y

. W e co n cl u d e t h at t h e t ri al

co u rt p ro p erl y

g ran t ed s u m

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

.

T he e le m en t s o f t o rt i o u s in t erferen ce wi t h co n t ract u al rela tions, busine ss

r e l a t i o n s, o r p o t en t i al b u s i n es s rel at i o n s are: (1 ) i m p ro p er act i o n o r

wro n g fu l co n d u ct b y t h e d efen d an t wi th o u t pri v i l eg e; (2 ) th e d efen d an t

act ed p u rp o sel y an d wi t h m al i ce wi th t h e i n t en t t o i n ju re; (3 ) th e

d efen d an t i n d uced a b reach o f co n tract u al o bl i g at i o ns o r cau s ed a p art y

o r t h i rd p art i es t o di s co n t i n u e o r fai l to en t er in t o an an t i ci p at ed b u s i n es s

rel at io ns h ip w i t h th e p lai n t i ff; an d (4 ) t h e d efen d an t ’ s t o rt i o u s co n d uct

p ro x i m at el y cau s ed d am ag e t o t h e p l ai nt i ff.

(Ci t at i o n o m i t t ed

. ) Da l t on v. Di ver s i f i ed

, In c. v

. AmS

ou t h Ba n k

, 2 7 0 Ga. Ap p

. 2 0 3,

2 0 8 -2 0 9 (4 ) (a) (6 0 5 SE2 d 8 92 ) (2 00 4 ). W e h av e b een cl ear t h at

16[t ] h e ex erci s e of an ab so l u t e l eg al ri g h t i s n o t an d can n o t b e co n s id ered

an i n t erferen ce wi t h a co n t ract u al o r p o t en t ial co n t ract ual rel at i o n s h ip

,

b ecau s e p ri v i l eg e m ean s l eg i t i m at e eco n o m i c in t eres ts o f th e d efen d an t

o r a l eg i t i m at e rel at i o n s h i p o f t h e al l eg ed in t erl op er or m ed d l er t o t h e

co n t ract

. Th u s

, if t h e d efen d an t h a s a l eg i ti m at e eco n o m ic i n t eres t i n

ei t h er t h e co nt ract o r a p art y to t h e co n t ract

, th en t h e d efen d an t i s n o t a

s t ran g er t o th e co nt ract an d act s wi th p ri v i l eg e. Th e act i o n s b y a secu red

cred itor e xe r c i s i n g i t s co n t ract u al ri g h t s d o es no t co n st it u t e t h e wro n g fu l

i m p ro p er co nd u ct n eces s ary fo r t hi s to rt act i o n ; fo r l i a b i l it y

, th e

d efen d an t m

u st h av e act ed i m

p ro p erl y an d wi t h o u t p ri v i l eg e. T he

d efen d an t m

us t b e a st ran g er t o b o th t he co n t ract an d t h e b u s i n es s

rel at io ns h ip gi vi n g ri se t o an d u n d erp i n n i n g t h e co n t ract fo r th e co n d uct

t o b e t o rt i ou s i n t erferen ce. W h ere a d efen d an t h as a fi n an ci al in teres t i n

o n e o f t h e p art ies t o t h e co n t ract or in t h e co n tract

, t h e defen d an t is n o t

a st ran ger t o t h e co n t ract o r bu s i n es s rel at io n s hi p

, ev en t h o u gh i t is n o t

a s i g n at o ry

t o t h e co nt ract

.

(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 2 0 9 (4 ) (a).

Here, Tri co En v i ro nm en t al arg u es t hat aft er t h e acco rd an d s at i s fact i o n

, J P

Cap it al i nt erfered i n i t s b u s i n es s rel at i o n s h i p wi t h Pi k e b y fai l i n g t o rel eas e t h e l i en

s o t h a t P i k e co u l d fi n an ce t h e co n s t ru ct i o n of t h e res t au ran t an d g i ft s h o p

. Fo r t h e

reas o n s s t at ed i n Di v i si o n 3, h o wev er, t h ere was n o acco rd an d s at i s fact i o n i n t h i s

cas e. H en ce, J P Cap i t a l “ h ad t h e ri g h t t o ret ai n [i t s] s ecu ri t y i n t eres t u n t i l al l d eb t s

o wed t o i t were p ai d o r co m p ro m i s ed [,] ” an d J P Cap i t al ’ s “ act i o ns or i n act i on s

17r e g ard i n g i t s secu ri ty i nt eres t d i d n o t as a m at t er o f l aw, co n s ti t ut e a t o r t i o u s

i n t erferen ce.” See Da l t o n Di ver s if i ed

, In c.

, su p ra, 2 7 0 G a. Ap p

. at 2 0 9 (4 ) (a)

(h o l d i n g t h at t h e d efen d an t was n o t en t i t l ed t o a j

. n

. o

. v

. o n i t s cl ai m ag ai ns t s ecu red

cred i t o r fo r t o rt i ou s i n t erferen ce wh ere t h e cred i to r h ad a s ecu ri ty i nt eres t in t h e l o an

ag reem en t t o wh i ch t h e d efen d an t h ad an o ut s t an d i n g d eb t ).

Fu rt herm o re, co n trary t o i t s cl ai m

, Tri co En v iro n m en t al can n o t p ro v e m al i ce.

In t h e co nt ex t o f a to rt io u s i n t erferen ce cl ai m

, “ [m ] al i ce, . . . i s a t erm t o b e g i v en a

l i beral m ean i n g ; m al i ci o u s o r m al i ci o u sl y m ea n s a n y u n au t h o ri zed in t erferen ce, o r

an y i n terferen ce wi t h o u t l e gal ju st i fi cat i o n o r ex cu s e.” (Ci t at i o n o m i t t ed .) Ren d en

,

In c. v. Li b er ty Rea l E

s t at e Lt d

. Pa r t n er sh i p III

, 21 3 Ga. Ap p

. 3 3 3

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

8 1 4 ) (1 99 4 ). As s tat ed ab o v e, J P Cap it al p os s es s ed a s ecu ri t y i n t eres t i n t h e p ro p ert y

at i s s ue, Tri co En v i ro n m en tal o wed i t an o u t s t an d i n g deb t fo r fees as s o ci at ed wi t h t h e

f o r e cl o s u re p ro ces s

, an d J P Cap i t al refu sed to rel eas e i t s i n t eres t u nt i l t h e d eb t h a d

b een p ai d

. Th is “ ev id en ce fai l ed t o creat e a t ri ab l e i s s u e as t o th e el em en t o f m al i ce

wi t h i n ten t t o i n

ju re.” Id

. at 3 3 5 (2 ) (a) (h o l d in g t h a t t h e t r i al co u rt d i d n o t err in

g ran t i n g s u m

m ary ju d g m en t o n a t o r t i o us i n t erferen ce cl ai m w h ere th e d efen d an t

l an d l o rd h ad a l eg al ri gh t t o co m p et e fo r t h e ren t al s p ace at i s s u e).

18To t h e ex t en t t h at Tri co En v i ro n m en t al arg u es t h a t K n i g h t Pet ro leu m was

o b l i g at ed t o rel eas e i t s l i en o n t h e p ro p ert y b ecau s e n o b a l an ce was o wed aft er t h e

l o a n p ay o ff, th i s cl ai m fai ls

. “ W h en a cred i t o r recei v es an d ret ai n s a su m of m o n ey

fro m h i s d eb t o r les s t h an t h e am o u n t act u al l y d u e h i m wi t h t h e u n d er s t a n d i n g

, ei t h er

exp r es s o r i mp li ed

, t hat i t i s recei v ed b y h i m i n s at i s fact io n o f h i s cl ai m o r d em an d,

h e can n o t t h ereaft er t reat i t as a n u l l i t y an d reco v er t h e b al an ce.”) (Ci tat i o n an d

p u n ct u at i o n o m i t t ed ; Em p has i s i n t h e ori g i n al ). McGl a u n v. S o u t h wes t Ga

.

Pr o du ct io n Cr ed i t As s n.

, 2 5 6 Ga. 6 4 8

, 6 5 0 (2 ) (3 5 2 SE2 d 5 58 ) (1 9 8 7 ). Here, as s t at ed

ab o ve, J P Cap it al i nfo rm ed Hu d s o n at t h e t i m e t h at h e t en d ered t h e ch eck t h at t h e

am ou n t was i ns u ffi ci en t t o pay o ff t h e t o t al d eb t o wed

, an d th u s t h ere w a s n o

u n d ers t an d i n g

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

, th at t h e m o n ey ten d ered s at i s fi ed J P

Cap it al ’ s cl ai m

. Co ns eq u en t l y

, t h e t ri al co u rt p ro p erl y g ran ted s u m m ary ju d g m en t o n

t h i s cl ai m

.

Acco rd i ng l y

, fo r t he afo rem en t i o n ed reas o n s

, we rev ers e th e t ri al co u rt ’ s o rd er

g ran t i n g s u m

m ary ju dg m en t on Tri co En v i ro nm en tal ’ s b reach o f warran t y cl ai m

, b ut

we affi r m t h e t ri al co u rt ’ s o rd er g ran t i n g s u m m ary ju d g m en t o n Tri co

En v iro nm en t al ’ s b reach o f co n t ract

, n eg l i g en t m i srep res en t at io n

, a n d t o rt i ou s

i n t erferen ce wi t h b u s i n es s rel at i o n s cl ai m s

.

19Ju d

g men t a f f i r med i n pa r t a n d r ever

s ed i n p ar t

. Mer ci er a n d Co o mer

, JJ.,

co n cu r

.

20