FOURTH D I VI SI ON DOYLE, P. J.

, COOM ER and M A R KLE, 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

October 10, 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 91 2

. JOHN C. WI LSON COM PANY, INC. et al

. v

. REGIONS BANK. DO-0 3 4

D O Y LE , Pres i d i n g J u d g e.

In t h i s cas e, d efen d an t s J o h n C. W i l s o n Co m pan y , In c. (“ J CW ”), an d Fran k

Al t o n Bl ack

, Sr., ap p e a l f r o m t h e g ran t o f s u m

m ary ju dg m en t t o p l ai n t i ff Reg i on s

Ban k (“ t h e Ban k ”) i n t h e Ban k ’ s s u i t on a no t e ex ecu t ed by J CW an d gu aran t eed by

Bl ack

. T h e d e f

e n d a n t s co n t en d t h at t h e t ri al co u rt erred b ecau s e (1 ) serv i ce was

i m p ro p er as to J CW ; (2 ) t h ere w as a di s p u t e o f fact as t o t h e d efen d an t s ’ d em an d fo r

an acco u n t i n g ; (3 ) t h e Ban k v i o l at ed Bl ack ’ s ri g h t t o fi n a n c i a l p ri v acy ; an d (4 ) t h e

s u p eri o r co u rt s ho u l d h av e req u i red t h e Ban k t o co n vey i t s s ecu ri t y i n teres t t o t h e

d efen d an t s

. Fo r t h e reas on s t hat fo ll o w, w e affi rm i n p art

, v acat e i n p art

, an d rem an d

t h e cas e.Th i s co u rt reviews a g ran t o f s u m m ary ju d g m en t d e n ov o , v i ewi n g t h e ev i d en ce

i n t h e l i gh t m o s t fav o rab l e t o t h e n on m o v an t

. 1 So vi ewed

, t h e reco rd s h ows t h at in

M ay 2 0 0 9

, J CW ex ecu t ed a n o te i n fav o r o f Reg i o n s Ban k fo r th e p ri n ci pal am o u nt

o f $ 25 8 ,2 4 3 .7 4

, an d Bl a c k e x e c ut ed an u n co n d i ti o n al g u aran t y o n t h e d eb t

.

Acco rd in g t o t he t erm s o f t he n ot e, J CW was req u i red t o m ak e 3 4 m o n t h ly p ay m en t s

o f $ 2 ,0 7 6 .9 6 wi th a fi n al p ay m en t o f t h e o u t s t an d i n g b al an ce d u e i n Ap ri l 2 0 1 2

. Th e

i n t eres t rat e was a vari ab l e rat e eq u i v al en t t o p ri m e p l us t wo p e r c en t

, an d t h e n o t e

p ro v id ed fo r a l at e fee o f fi ve p ercen t o f th e un p ai d p o rt i o n o f t he reg u l ar p ay m en t

.

By J u n e 2 0 1 1

, J CW s t op p ed m ak i n g p ay m en t s , an d i t d i d n o t p ay t h e bal an ce o n t h e

m at u ri t y d at e.

In Sep t em

b er 2 0 1 5

, u n ab l e t o co l lect o n t h e n o t e an d g u aran t y , t h e Ban k s u ed

J CW an d Bl ack

, as s ert in g cl ai m s fo r b reach o f co nt ract wi t h res p ect t o t h e n o t e an d

g u aran ty

. Bl ack w as s erv ed p ers o n al l y an d as t h e co rp o rat e ag en t of J CW

. Bl ack an d

J CW fi l ed an s wers , ch al l en g in g s erv i ce an d

, i n t er al i a, as s ert i ng a co u nt ercl ai m fo r

an acco u n t i n g

. D i s co very en s u ed

, an d th e Ban k m o v e d fo r s u m m ary ju d g m en t

,

at t ach i n g an affi dav i t f

r o m Ak i n wan d e Ch i l d rey , a Ban k vi ce p res i d en t wi th

1 Ma t j o u l i s v. In t eg on Gen . In s . Co r p ., 2 2 6 Ga. Ap p. 4 5 9 (1 ) (4 86 SE2 d 6 8 4 ) (1 9 9 7).

2k n o wl ed g e o f th e b u si n es s reco rd s refl ect i ng t h e s t at u s o f t h e l o an , an d at t ach i n g

reco rd s refl ect i n g t h e lo an p ay m en t s an d o u t s t an d i n g b al an ce

. T h e d efen d an t s

o p p o s ed t h e m ot i o n , rel y i n g in p art o n an affi d av i t b y Bl ack av erri n g t h at h e was n o

l o n g er a s h areh o ld er i n J CW an d d en y i n g t h at h e h ad recei v ed an acco u n t i n g.

Fo l l o wi ng a h eari n g , 2 t h e t ri al co u rt g ran t ed th e Ban k’ s s u m m ary ju d g m en t m o t i o n.

J CW an d Bl ack n o w ap p eal

.

1

. Th e d efen d an t s fi rs t arg u e th at s u m m ary ju d g m en t w as n ot ap p ro p ri at e

b ecau s e J CW was n o t s erv ed p ro p erl y t h ro u g h i t s co rp o rat e ag en t

. As n o t ed ab o ve,

t h e reco rd s h o ws t h at t h e Ban k fi l ed t he co m p l ai n t i n Sep t em

b er 2 0 1 5 an d s erv ed

Bl ack as t h e reg i s tered ag en t o f J CW

. J CW rel ies o n affi d av i ts b y Ho race W eat h ers by

an d Bl ack av erri n g t h at Bl ack s o l d h i s i n t eres t i n J CW to W eat h ers b y i n 2 0 1 0

, J CW

h ad b een ad m i n i s t rat i v el y d i s s o l v ed b y 2 0 1 2

, an d in 2 0 1 3

, W eat h ers b y p u rp o rt ed to

s en d a fo rm

t o t h e Secret ary

o f St at e d es i g n at in g h im s el f as t h e reg i s t ered ag en t

.

Nev ert h el es s , t h e Ban k p ro d u ced cert i fi ed co p i es o f co rp orat e reco rd s fro m t h e

Secret ary o f St at e sh o wi ng t hat J CW w as ad m i n i s t rat i v el y d i ss o l v ed i n 2 0 1 1 an d o n l y

l at er rei n s t at ed i n Ap ri l 2 01 6 (wi t h W eat h ers b y as t h e reg i s t ered ag en t ) p u rs u an t to

2 On e h eari ng t ran s cri p t ap p ears i n th e reco rd

, b u t i t s h o ws t h at t h e p art i es o n l y b ri efl y o u t l i n ed t he i s s u es an d el ect ed t o rel y o n s u p p l em en t al b ri efs

.

3an ap p l i cat i o n fi led b y W eat h ers b y i n Oct ob er 2 0 1 5, o n e m o n th aft er t h e l aws u i t was

fi led

. Th u s , at th e t i m e Bl ack was s erv ed

, th e Secret ary o f St at e reco rd s i n d i cat ed t h at

Bl ack was s t i l l t h e reg i s t ered ag en t b ecau s e J CW h ad n o t y et b een rei n s t at ed t h ro u g h

W eat h ers b y ’ s ap p l i cat io n, an d “ [t ] h e ad m i n i s t rat i v e di s s o l ut i o n o f a co rp o rat i o n [d i d ]

n o t t erm i n at e t h e au t h o ri t y o f i t s reg i s t ered ag en t ” at t h at t i m e, i .e., Bl ack

. 3 In s i m i l ar

co n tex t s , t h is Co u rt h as h el d t h at s el f-s erv i ng an d co n cl us o ry a f f i d a v i t s s u ch as

W eat h ers b y ’ s , i n t h e ab s en ce o f s u b s t an t i at i n g fact s , ar e i n s u ffi ci en t t o creat e a

fa c t ua l i s s u e w h en d em o ns t rab ly o pp o s ed b y b u s i n es s reco rd ev i den ce. 4 Acco rd i n g l y ,

t h e reco rd d o es n ot rev eal a fact u al i s s ue wi t h res p ect t o s e r v i ce, an d th e tri al co u rt

co rrect ly d eem ed s erv i ce p ro p er o n J CW t h ro u g h t h e s erv i ce o n Bl ack

.

2

. Th e d efen d an t s al s o cl ai m erro r i n (a) t h e lack o f a fu l l acco un t i n g fo r t h e

d eb t, (b ) t h e i n t eres t cal cu l at i on , ( c ) t h e l at e fee award s , an d (d ) t h e at to rn ey fee

award

.

3 OCGA § 1 4 -2 -1 4 2 1 (d ). See al s o OCGA § 1 4-2 -1 4 21 (c) (“ A co rp o rat i o n ad m i n is t rat i v el y d i s s o l ved co n t i n ues i t s co rp o rat e ex i s t en ce b u t m ay n o t carry o n an y b u s i n es s ex cep t t h at n eces sary t o wi n d u p an d l i q u i d at e it s b u s i n es s an d affai rs

. . . .”).

4 See

, e .g

. , Jo n es v. B a n k o f A mer i ca Mt

g

. , 2 5 4 G a. Ap p

. 2 17

, 2 1 9 (1 ) (5 6 1

SE2 d 86 7 ) (2 0 0 2 ); Fo st er v. R a ms ey , 2 4 5 Ga. Ap p

. 11 8

, 1 1 9 ( 1 ) (5 3 6 SE2 d 5 5 0 ) (2 0 0 0) (p h y s i cal p reced en t o n l y ); Mi l l er v. Ca l h o u n / Jo h n so n Co

. , 2 3 0 G a. Ap p

. 6 4 8,

6 5 0 (3 ) (b ) (4 9 7 SE2 d 3 9 7) (1 99 8 ).

4(a) Evi d en ce o f a cco u n t in g

. W i t h res p ect t o th e acco u n t i n g p ro vi d ed b y t h e

Ban k, t h e reco rd co n tai n s au t h en t i cat ed d o cu m en ts s h o wi n g th e d e b t o wed

, t h e

p ay m en t s m ad e b y d efen d an t s , t h e i n t eres t accru ed

, an d t h e l at e fees ch arg ed

. Ot h er

t h an m ak i n g b are as s ert i on s t h at t h e acco u n t s t at em en t co u l d co n t ai n erro rs , t h e

d efen d an t s o ffer n o ev i d en ce of s u ch erro r. “ A l t ho u g h [t h e d efen d an t s ] m ay wel l h av e

h ad an o p i n i o n t h at [ t h e B an k ] h ad m i s cal cu l at ed t h e o ut s t an d in g b al an ce, [t h ey ]

fai l ed t o o ffer an y ev i d en ce t o s u p p o rt [t ] h i s b el i ef. Co n cl u so ry s t at em en t s in

affi d av i ts un s u pp o rt ed b y fact u a l e v i d en ce are i n su ffi ci en t t o av ert s u m m ary

ju d g m en t .” 5 Acco rd i n g l y , t hi s arg u m en t d o es n o t req ui re rev ers al

.

(b ) In t er es t awa r d

. Th e o rd er g ran t i n g s u m m ary j u d gm en t m ak es t h e fo l l o wi n g

award : a p ri n ci pal am o u n t o f $ 23 7 ,9 7 5 .7 2, accru ed i n t eres t t h ro u g h J u l y 2 0

, 2 0 1 7

, in

t h e a m o u n t of $ 59 ,8 16 .0 7

, an d co n t in u in g i n t eres t “ at t h e rat e o f 5 .2 5 [p ercen t ] p er

y ear (o r $ 5 3 .6 5 p e r d a y).” T h e d efen d an t s p o i n t o u t

, an d t h e Ban k co n ced es , t h at

an n ual i nt eres t o f 5

. 2 5 p ercen t o n a p ri n ci pal am o u n t o f $ 2 37 ,9 7 5

. 7 2 d o es n o t eq u al

$ 5 3 .6 5 p er d ay . Th e Ban k as s ert s t h at t h i s was t h e res ul t o f a t y p o g rap h i cal erro r i n

t h e affi dav i t o f it s vi ce p res i d en t

, an d t he p ro per p er di em am o un t wh en cal cu l at ed

5 Mi l l er , 2 3 0 Ga. Ap p. at 6 5 0 (3 ) (b ).

5acco rd i n g to t h e no t e’ s t erm s 6 i s $ 3 4 .9 0

. In l ig h t o f t h e m at h em at ical erro r i n t h e

affi d av i t o n t h i s p o i n t, we v acat e t h i s p o rt i o n o f t h e award an d rem an d fo r en t ry o f an

award refl ect i ng a p er d i em i n t eres t am o u n t co n s is t e n t w i t h t h e u n d i s p u t ed an n u al

i n t eres t rat e. T h e ev i d en ce i s no t i n co n fl i ct w i t h res pect t o t h e i n t eres t rat e s u ch t h at

s u m m ary ju d g m en t was o th erwi s e i n ap p ro p ri at e.

(c) La t e f ees

. Th e d efen d an t s al s o ch al l en g e t h e su m m ary j u d gm en t award wi th

res p ect t o t h e l at e fee cal cu lat i o n

. T h i s req u i res a co ns t ru ct i o n of t h e n ot e, w h i ch we

rev i ew d e n o v o

. 7

J CW ’ s p ay m en t o b li g at i o n u nd er t he n o t e read s as fo l l o w s :

Su b ject t o an y p ay m en t ch an ges res u l t i n g fro m ch an g es i n t h e [ Pri m e

Rat e]

, Bo rro w er wi l l p ay t h i s l o an i n 34 reg u l ar p ay m en t s of $ 2 ,0 7 5 .9 6

each

. Bo rro wer’ s fi rs t pay m en t i s d u e J u n e 2 8

, 2 0 0 9

, an d al l s u b s eq u en t

p ay m en t s are d u e o n t h e s am e d ay of each m o n t h aft er t h at

. Bo rro wer’ s

fi nal p ay m en t wi l l b e d ue o n Ap ri l 2 8

, 2 0 1 2

, an d wi l l b e fo r al l p ri n ci pal

an d al l ac c r u e d i nt eres t n o t y et p ai d

. . . . L en d er res erv es t h e ri g ht t o

ap p l y pay m en t s t o o u t s t an d i n g in d eb ted n es s an d obliga tions in a ny o rd er

t h at Len d er m ay d et erm i n e i n i t s s o l e d i s cret i o n

. . . .

6 Th e n o t e p ro vi d es t h at i n t eres t i s cal cu lat ed o n a y ear o f 3 60 d ay s

.

7 See Bo wer

s v. To da y’s Ba n k , 3 4 7 Ga. Ap p. 6 1 5 (8 2 0 SE2 d 4 59 ) (2 0 1 8 ).

6Th e no t e al s o p ro v i d es fo r l at e fees : “ LATE CHARGE. If a p ay m en t i s 1 0 day s

o r m ore l at e, Bo rro wer wi l l b e ch arg ed 5 .0 00 [p ercen t ] o f t h e u n p ai d p ort i on o f t h e

reg u l arl y s ch ed u l ed p ay m en t or $ 1 0 .0 0

, wh i ch ev er i s g reat er, reg ard les s o f an y p art i al

p ay m en t s t h e Len d er h as recei v ed

. ” Th e d efen d an ts fo cu s o n t h e p h ras e “ reg u larl y

s ch ed u l ed p ay m en t ” an d arg ue t h at t h i s l a n g u ag e o n l y au th o ri zes a l at e fee o n t h e

m o nt h l y p ay m en ts

, n o t t h e fi n al p ay m en t d u e at t h e en d o f t h e term

. Bu t t h i s

o v erl o o k s t h e fact t h at t h e n o te is ex p l i ci t th at t he lat e ch arg e i s t ri g g e r e d “ [i ] f a

p a ymen t i s 1 0 d ay s o r m o re l at e,” 8 n o t i f a m o n t h l y p ay m en t is l at e. Th e l an g u ag e

m ak es i t c l e a r t h a t th e l at e fee i s ap p l i ed o nl y t o t h e m i ss ed p ay m en t

, n o t an y

p rev i o u s l y s ch ed u l ed p ay m en t s o r rem ai n i n g o v erd ue am o u n t s

. Th e n o t e

u n am b i g u o u s l y req u ires J CW t o p ay t h e rem ai n in g b al an ce o n J u n e 2 8

, 20 0 9

, s o a

m i s s ed p ay m en t at t h at d at e wo u l d fal l wi t h i n t h e s co p e o f th e l at e fee pro v i si o n , an d

t h e t ri al co urt d i d n o t err b y s o co n cl u d i ng

.

(d ) S t a t u t o r

y a tt o r n ey f

ee a wa r d

. OCGA § 1 3-1 -1 1 (a) p ro v i d es g en eral l y t h at

“ [o ] b li g at i o n s to p ay at t o rn ey ’ s fees u p o n an y no t e o r o t h er ev i den ce o f i n d eb t ed n es s ,

i n ad d i t i o n t o th e rat e o f i n t eres t s p eci fi ed t h erei n , sh al l b e v al i d an d en fo rceab l e an d

co l l ect ab l e as a p a r t o f s u c h d eb t

. . . . ” Th e n o t e i n t h i s cas e pro v i ded th at s u ch

8 (Em p h as i s s u p pl i ed .)

7at t o rn ey fees co u l d be co l l ect ed at t h e rat e o f 1 5 p ercen t o f t h e p ri n ci p al pl u s i n t eres t

.

Th i s am o u n t is wi t h i n t he ran g e au t h o r i z e d b y OCGA § 1 3 -1 -1 1 (a) (1 ), an d t h e

d efen d an t s d o no t as sert a l ack o f no t i ce th at t he Ban k wo ul d en fo rce t he p ro v i s io n

. 9

Al t h o u g h t h e d efe n d a n t s n o w arg u e th at t h e fee award was s u b ject t o a

reas on ab l en es s s t an d ard

, t h ey fai l ed t o m ak e s u ch a ch al len g e p ri or t o t h e ju d g m en t

as req u i red b y OCGA § 1 3 -1 -1 1 (b ) (1 ). 1 0 Acco rd i n g l y , t h i s arg u m en t fai l s

. 1 1

3 . Bl ack co n t en ds t hat t he t ri al co u rt erred b y d en y in g h im rel i ef b as ed o n an

al l eg ed b reach o f h i s p ri v acy cau s ed b y t h e Ban k ’ s d i s cl o su re o f h i s s o ci al s ecu ri t y

n u m b er wh en i t fi l ed i ts co m p l ai n t wi t h an u nred act ed co p y o f Bl ack ’ s g u aran t y

at t ach ed

. 1 2 Th i s fi l i n g wa s l at er red act ed

, an d t h e ap p el l at e reco rd refl ect s t h e

9 See OCGA § 1 3 -1 -1 1 (a) (3 ) (req u i ri n g n o ti ce b efo re en fo rcem en t ).

1 0 Th at s ub s ect i o n p ro v i d es t h at “ t h e part y req ui red t o p ay s u ch fees m ay , p ri o r

t o t h e en t ry o f j u d gm en t

, pet i t i o n th e co u rt s ee k i n g a d et erm i n at i o n as t o t h e

reas on ab l en es s o f s uch at t o rn ey ’ s fees

. ”

1 1 Cf. Fr a m e v. Bo o th

, 2 3 8 Ga. Ap p

. 4 2 8, 4 3 2 (3 ) (5 19 SE2 d 2 3 7 ) (1 9 9 9 ) (“ Th e fee t o be award ed t h erefo re was o n l y a m at ter o f m at h em at i c al cal cu l at i on , an d t h e

t ri al co u rt d i d n o t err i n gran t i n g s u m m ary ju dg m en t o n th e i s s u e of at to rn ey fees .”) (d eci d ed p ri o r t o t h e reas o n ab l en es s rem ed y i n OCGA § 1 3 -1 -1 1 (b )). See Ga. L.

2 0 1 2 , p . 7 2 5 , § 1

.

1 2 Bl ack ’ s an s wer d i d no t s ep arat el y en u m erat e a co un t ercl ai m fo r su ch rel i ef,

b u t i t d i d al l eg e s u ch a b reach an d s eek res u l t i n g d am ag es

.

8red act i on

. Bl ack d o es no t id en t i fy an y d am ag es o t h er t h an to s p ecu l at e t hat s o m eo n e

m ay h av e vi ewed h i s s o ci al s ecu ri t y n u m b er b efo re it was red act ed

. As t h i s Co u rt

h el d i n Cu mb er l a n d Co n t r a ct o r s

, In c. v. S t a t e Ba n k & Tr u st Co

. , 1 3 t h e d is cl o s u r e

u n d e r t h e ci rcu m st an ces of t h is cas e d o no t s t at e a cl ai m fo r rel i ef fo r in vas i o n o f

p ri v acy

. 1 4 Acco rd i n g l y , t h is en u m erat i o n i s wi th ou t m eri t

.

4

. Fi n al l y , t he d efen d an t s arg ue t h at th e t ri al co u rt erred b y g ran t i n g s u m m ary

ju d g m en t wi t h o ut req u i ri n g t h e Ban k t o fo recl o s e o n i t s s ecu ri t y i n t eres t o r ex ecu t e

a q u i t c l ai m d eed to th e d efen d an t s. Th i s arg um en t i g n o res t he fact t hat t h i s i s an

act i on o n a n o t e, an d t h ere i s n o ev i d en ce o f a s ecu ri t y i n t eres t i n t h e reco rd

. Fu rt h er,

i n Geo rg ia,

[a] cred i t o r wh o h o ld s a p ro m i s so ry no t e s ecu red b y a d eed i s n ot p u t t o

an e l e c t i o n o f rem ed i es as t o w h et h er h e s h al l s u e u po n t he n ot e o r

ex erci s e a p o wer o f s al e co n t ai n ed i n t h e d eed

, b ut h e m ay d o ei th er, o r

p u r s u e b o t h rem ed i es co n cu rren t l y u n t i l t h e deb t is s at i s fi ed

. In o t h er

wo rd s , t h e h o ld er o f a n o t e wh o i s al s o t h e gran t ee i n a d eed t o s ecu re

1 3 3 2 7 Ga. Ap p . 1 2 1 (7 5 5 SE2 d 5 1 1 ) (2 0 1 4 ).

1 4 See i d . at 1 2 6 (2 ) (a).

9t h e i n deb t ed n es s o f t he n o t e i s n o t fo rced t o ex erci se t he p o wer o f s al e

i n t h e d eed . He m ay

s u e o n t h e n o t e o r ex erci s e t h e p ower o f s al e. 1 5

Th erefo re, t h e d efen d an t s ’ arg u m en t p res en t s n o b as i s fo r rev ers al

.

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

, va ca t ed i n p a r t

, a nd ca s e r ema n d

ed wi t h d i r ect i o n.

Co o mer a n d Ma r kl e, JJ., co n cu r

.

1 5 (Ci t at i o n s an d p u n ct uat i o n o m i tt ed .) REL Deve l o p m e n

, In c. v. Br a n ch

Ba n ki n g & Tr u st Co

. , 3 05 Ga. Ap p. 4 2 9

, 43 1 (1 ) (6 9 9 SE2 d 7 79 ) (2 0 10 ). See a l s o
Ta mp a In ves t men t Gr o u

p

, In c. v. Br a n ch Ba n ki n g & Tr u s t Co

. , 2 9 0 Ga. 7 2 4

, 7 2 6 -7 2 7 (1 ) (7 2 3 SE2 d 6 7 4 ) (2 0 1 2 ) (d i s cu s si n g a c r e d i t o r’ s op t i o n s wh en h o l d i n g a n o t e

s ecu red b y

real p ro p ert y ).

10