FI FTH DI VI SI ON

M C FA DDEN, C. J.

, M CM ILLI A N, P. J.

, and SENI OR A PPELLA TE JUDGE PHI PPS

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 24, 2019



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A1 9 A1 43 7

. COURTLAND PROPERTIES I, LLC et al

. v

. COLLINS

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

Ap p el l an t Co urt l an d Pro p ert i es co n t en ds t h at i t i s en t i t l ed t o s u m m ary

ju d g m en t o n ap p el l ee Co ll i ns ’ s p ers o n al i nju ry cl ai m b ecau s e a b an k ru p t cy

t ru s t ee,

rat h er th an t h e ap p el l ee, i s th e real p art y i n i n t eres t . W h i l e we ag ree t h at t h e t ru s t ee

i s t h e real p art y in i n teres t

, t h e ap p el l an t i s n o t en t i tl ed to s u m m ary ju d g m en t ; rat h er,

t h e d en i al o f t h e ap pel l an t’ s s u m m ary ju d g m en t m o t io n m

us t b e v acat ed an d t h e cas e

rem an ded w i t h d i rect i o n t h at t he ap p el l ee b e gi v en a reas o n ab l e am o u n t o f t i m e to

s h o w rat ifi cat i on b y , jo i n, o r s u b s t i t u t e t he t ru s t ee as t h e real p art y i n i n t eres t

.

1

. Fa ct s a n d p r o ced

ur a l p o s t u r e.Teri q u e Co l l i n s fi l ed s u i t ag ai n s t Co u rt l an d Pro pert ies I, LLC an d o t h ers ,

s eek i n g t o reco v er d am ag es al l eg ed l y ari s i n g o ut o f i n j u ri es s u ffered as a res u l t o f a

s l ip an d fal l i n t h e ap art m en t h e l eas ed fro m Co u rt l an d

. A b o u t a y ear l at er, Co l l i n s

f i l e d a Ch ap t er 7 b an kru p tcy p et i t i o n

. Co u rt l an d m o ved fo r s u m m ary j u d g m en t

,

cl ai m i ng , am o n g o th e r t h i n g s , t hat d u e t o t h e b an k ru p t cy fi l i n g , t h e b an k ru p t cy

t ru s t ee, i n s tead o f Co l l i n s, h as st an d i n g t o p u rs u e t h e p ers o n al i n ju ry cl ai m as t h e real

p art y i n i n t er e s t

. A f

t er a h eari n g , t h e t ri al co u rt d en i ed Co u rt l an d ’ s m o t i o n fo r

s u m m ary ju d g m en t b u t i s s u e d a cert i fi cat e o f i m m ed iat e rev i ew. W e g ran t ed

Co u rt l an d ’ s ap p l i cat io n fo r i n t erl o cu t o ry rev i ew, an d t h i s ap p eal fo l l o wed

.

2

. Rea l p a r t y i n i n t er es t

.

C o u rt lan d arg ues t h at i t i s en t it l ed to s u m m ary ju d g m en t becau s e t h e

b an kru p t cy t ru s t ee, rat h er t h an Co l l i n s , i s t h e real p art y in i n t e r e s t

. Wh i l e w e ag ree

t h at t h e b an kru p t cy t ru s te e i s t h e real p art y i n i n t eres t

, Co u rt l an d i s n o t en t i t l ed to

s u m m ary ju d g m en t o n t h at b as i s

.

“ Un d er 1 1 USC § 5 4 1 (a) (1 )[,] al l l eg al o r eq u i t ab l e i n t eres t s o f a d e b t o r in

p ro p ert y as o f t h e co m

m en c e m e n t o f t h e b an k ru p t cy cas e beco m es p ro p ert y o f t h e

b an kru p t cy es t at e. Th i s i n cl u d es cau s es o f act i o n, reg ard l es s o f wh et h er o r n o t s u ch

act i on s are as s i g nab l e o r t ran s f e r ab l e b y t h e d eb t o r u n d er s t at e l aw.” Un i t ed

2Tech n o l o g i es Co r p

. v. Ga i n es , 2 2 5 Ga. Ap p. 1 9 1

, 1 9 2 (4 8 3 SE2 d 3 5 7) (1 9 9 7 )

(p u n ct u at i o n o m i t t ed )

. “ Th erefo re, b y t h e ex p res s p reem p t i v e o p erat i o n o f fed eral

l aw, a [d eb t o r’ s t o rt ] cau s e o f act i o n b eco m es part o f t h e b an k ru p t cy es t at e ev en

t h o u g h OCGA § 4 4 -1 2 -2 4 n o rm al l y p ro h i b i ts t h e as si gn m en t o f p ers o n al to rt cau s es

o f act i o n .” Den i s v. Del ta Ai r l in es , 2 4 8 Ga. Ap p

. 3 77

, 3 7 9 (5 4 6 SE 2 d 8 0 5 ) ( 2 0 0 1 )

(ci t at i o n an d p u n ct u at i o n om i t t ed ). “ Th us , an y cau s e o f act i o n t h at [a d eb t o r]

p o s s es s ed

. . . p ri o r to h i s p et it i o n i n b an k ru p t cy [i s ] au t o m at i cal l y v es ted i n [t h e

b an kru p t cy ] t ru s t ee u po n fi l i n g.” Ci nci n n a t i In s

. Co

. v. Ma cl eo d

, 2 5 9 Ga. A p p

. 7 6 1,

7 6 4 (2 ) (5 7 7 SE2 d 7 9 9 ) (2 0 0 3). An d “ t h e t ru s t ee [i s ] t h e real part y i n i n t eres t v es t ed

au t o m at i cal l y wi t h t h e o n l y ri g h t t o bri n g s u ch act i o n .” Id (ci t at i o n o m i tt ed ). See al s o

Lee v. Owen b

y & As s o cs

. , 27 9 G a. Ap p

. 4 4 6, 4 4 8 (1 ) (6 3 1 SE2 d 4 78 ) (2 0 0 6 ) (d eb to r’ s

p en di n g l eg al act i o n i s t he p ro p ert y o f t h e b an k ru p t cy es t at e an d o n l y t h e t ru s t ee in

b an kru p t cy h as s t an d i n g t o p u rs u e i t ); Gi n go l d v. Al len

, 2 7 2 G a. Ap p. 6 5 3

, 6 5 4 (6 1 3

SE2 d 1 7 3) (2 0 0 5) (t ru s t ee i s t h e real p art y i n i n t eres t o f d eb t o r’ s cau s e o f act i o n ).

In t h is cas e, Co l l i n s ’ t o rt act i o n was pen d in g at t h e t im e h e fi l ed h i s b an k ru p t cy

p et i t i o n

. Th e cau s e of act i on th erefo re becam e p ro pert y o f t h e b an k ru p t cy es t at e an d

t h e b an k ru p t cy t ru s tee becam e t h e real p art y i n i n t eres t wi t h s t an d i n g t o p ro s ecu t e t h e

cl ai m

. Nev ert h el es s , Co u rt l an d m ay n ot b e g ran t ed s u m m ary ju d g m en t o n t h at b as i s

3b e c a u s e “ a real p art y i n i n t eres t o b ject i o n gen eral l y d o es n o t g o t o t h e m eri t s o f a n

act i on , b u t i n s t ead i s a m at ter i n ab at em en t fo r w h i ch su m m ary ju d g m en t i s

i n ap p ro p ri at e.” Fi r

s t Ch ri s t Ho l i n es s Ch u r ch v. Owen s Temp l e Fi r s t Ch r i s t Ho l i n es s

Ch u r ch

, 2 8 2 Ga. 8 83

, 8 8 6 (6 5 5 SE2 d 6 0 5 ) (2 0 0 8 ) (p u n ct u at i o n o m i t t ed ).

Co n s eq u en t l y , “ s u m

m ary ju d g m en t can no t p ro p erl y b e g ran ted t o a d efen d an t o n t h e

b as i s o f a real -p art y -i n -i n t eres t o b ject i o n

. ” Id

. (ci t at i o n s a n d p u nct u at i o n o m i t t ed ).

Acco rd To wn & Co un t r

y D o d g e v. W o r ld Omn i Fi n a n ci a l Co r

p

. , 26 1 Ga. Ap p

. 5 0 3,

5 0 4 (1 ) (5 8 3 SE2 d 1 8 2 ) (2 00 3 ) (“ Su m m ary ju d g m en t i s n o t t h e p ro p e r v e h i c l e to

d eci d e a real p art y i n i n t eres t o b ject i on .”). “ Bu t if a p l ea i n ab at em en t i s rai s ed i n t h e

t ri al co u rt

, t h e t ri al co u rt m ay i g n o re t h e no m en cl at ure as si g n ed t o t h e p l ead i n g an d

d i s m i s s t h e c o m

p l ai n t .” Fr a n co v. Co x , 26 5 G a. Ap p

. 5 14

, 51 7 (3 ) (5 9 4 SE2 d 7 1 7 )

(2 0 0 4).

Ho wev er, b efo re Co l l i n s ’ act i o n b el o w can b e d i s m is s ed

, h e i s en t i t l ed t o a

reas on ab l e t i m e t o s h o w rat i fi cat i o n b y , jo i n , o r s u b s t it u te t h e rea l p a r t y i n i n t eres t

.

OCGA § 9 -1 1 -1 7 (a) p ro vi des i n p ert i n en t p art :

No act i o n s h al l be d i s m i s s ed o n t h e g ro u n d t h a t i t is n o t pro s ecu t ed i n

t h e n am e o f th e real p art y i n i n t eres t u n t i l a reas o n a b l e t i m e h as b een al l o wed aft er o b

ject i o n fo r rat i fi cat io n o f co m m en cem en t o f t h e act i o n b y , o r jo i n der o r s ub s t i tu t i o n o f, t h e re al p art y i n i n teres t ; an d s u ch

4rat i fi cat i o n, jo i n d er, o r s u b s ti t u t i o n s hal l h av e t h e s am e effect as i f th e

act i o n h ad b een co m

m en ced i n t h e n am e o f t h e real p art y i n i n t eres t

.

So i n t h i s cas e, “ b efo re t h e [ a c t i o n ] co u l d [b e] d i s m is s [ed ] bas ed o n [Co u rt l an d ’ s ]

m o ti o n [rai s i n g a real -p art y -i n -i n t eres t o b ject i o n ,] a rea s o na b l e t ime m u s t b e a l l o wed

a f t er [ t he] mo ti on i s h ea r d a n d b ef or e d i smi ss a l f

o r [Co l l i n s t o s eek rat i fi cat i o n ,]

jo i n d er o r s u b s t i tu t i o n o f [t h e real p art y in i n t eres t ] .” H en r y v. Mo i s t er , 1 5 5 Ga. Ap p.

4 6 2

, 4 6 3 ( 1 ) ( 2 7 1 SE2 d 4 0 ) (1 9 8 0 ) (em p h as i s s u pp l i ed ). See al s o Ph o en i x o n

Pea c h t r e e C o n d

o As s n

. v. Ph o en i

x o n Pea ch t r ee, LLC

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

, 4 5 1 (6 )

(6 6 9 SE2 d 2 2 9 ) (2 0 0 8) (t ri al co u rt s h o u l d co ns i d er wh et h er a real p art y i n i nt eres t can

b e jo i ned b efo re d i s m i s s i n g an act i o n ); Hi l l v. McGa r it y , 2 0 5 Ga. A p p

. 8 50

, 8 5 1 (4 2 4

SE2 d 6 2 ) (1 9 9 2 ) (t ri al co u rt m u s t al l o w a reas o n ab le t i m e fo r jo in d er o f i n d i sp en s ab l e

p art i es b efo re d i s m i s sal ).

Here, Co l li n s h as n o t y et h ad an o p p ort u n i t y t o s eek s u ch rat ifi cat i o n , jo i n d er,

o r s u b s t it u t i o n i n t h e t ri al co u rt

. As ex p l ai n ed ab o v e, aft er t h e h eari n g o n t h e m o t i o n

fo r s um m ary ju dg m e n t

, t h e t ri al co u rt d en i ed t h e m o t i o n an d d i d n o t d i sm i s s t h e

act i on

. So Co l l i n s h ad n o reas on t o seek rat i fi cat i o n, jo in d er, o r s u b s t i t u ti o n o f t h e

t ru s t ee aft er t h e h eari n g , an d t h o s e i s s u es were nev er rai s ed or ru led o n b el o w.

In s t ead

, t his i n te r loc utor

y a ppe a l by C our

tla n d fo l l o wed

. An d g i v en o u r d et erm i n at i o n

5t h at t h e t ru s t ee i s t h e real p art y i n in t eres t

, Co l l i n s m u s t n o w b e g i v en a reas o n ab l e

am ou n t o f t i m e t o seek rat i fi cat i o n b y , jo i n der, o r s u b s t i t u t i on o f t h e t ru s t ee as t h e real

p art y i n i n t eres t

. See OCGA § 9 -1 1 -1 7 (a). So t he ju d g m en t b el o w m u s t b e v acat ed

an d th e cas e rem an ded “ wi t h d i rect i o n th at a reas o nab l e o p p o rt u n i t y b e p ro v i d ed fo r

[Co ll i n s t o h av e th e t ru s t ee] rat i fy o r jo i n [o r b e s u b s t i t ut ed as t h e real p art y i n i n t eres t

i n ] t h e act i o n p u r s u a n t t o OCGA § 9 -1 1 -1 7 (a).” W a t s o n / W i n t er Jo i n t Ven t u r e v.

Mi l l ed g e , 2 2 4 Ga. Ap p . 3 9 5 , 3 9 7 (4 8 0 SE2 d 3 8 9 ) (1 9 9 7).

3

. Rema in i n g

en u mer a t i o n s

.

Gi v en o ur ho l d i n g ab o v e, we d o n o t reach th e ap p el l an t ’ s rem ai n i n g

en u m erat i o n s o f erro r.

Ju d g men t va ca t ed a nd ca s e r ema nd ed wi th d i r ect io n

. McMi l l i a n

, P. J., a n d

S en io r Ap p el l a t e Ju d

g e Her b er t

E. Ph i p p s, co ncu r

.

6