2 9 6 Ga . 5 72

F INAL COP Y

S 1 4 A 1 8 9 2 . HAMILTON S TATE BANK v . NELS O N e t a l.

B L ACKW EL L , Ju stic e

.
Jim my R. Ne lso n a

n d D o lp h Ne lso n , Jr. (th e “ Ne lso n s” ) a re m e m b e rs o f

Ne lso n a n d Ne lso n Bu ild in g Ac c t ., LLC (th e “ LLC” ) a n d sh a re h o ld e rs o f

Ne lso n’s Ap p lia n c e s a n d Ho m e F u rn ish in g s, In c

. (th e “ Co rp o ra tio n ” ). Th e

Ne lso ns e x e c u te d p r o m isso ry n o te s in fa v o r o f Ha m ilto n Sta te Ba n k (th e

“ B an k ” ), a n d to se c ure th e re p a y m e nt o f th o se n o te s, th e Ba n k o b ta in e d a

se c u rity in te re st in re a l p ro p e rty o wn e d b y th e LLC a nd th e Co rp ora tio n , u p o n

wh ic h th e Ne lso ns o p e ra te d a n a p p lia n c e a n d fu rn itu re sto re

. Th e Ba n k a lso

o b ta in e d a se c u rity in te re st in th e sto re ’s a c c o u n ts re c e iv a b le , in v e n to ry ,
fu rn itu re , a n d fix tu re s. In two se p a ra te a c tio n s, th e Ba n k o bta in e d ju d g me n ts

a g a in st th e Ne lso ns o n th e n o te s i n th e a p pro xim a te a m o u n t o f $ 2.9 m illio n

e a c h , an d th o se ju d gm e n ts a p p a re n tly a r e t h e s u b

je c t o f two a

p p e a ls th a t a re

c u rre ntly p e n d in g in th e Co urt o f Ap p e a ls. B a se d o n th e te rm s o f th e se c u rity

d e e d s a n d se c u rity a g re e m e n ts, th e in v o lv e m e n t o f th ird -p a rty c re d ito rs, a n d a

b e lie f th a t th e sto re w a s b e in g m o v e d a nd its o wn e rsh ip a n d c o rp o ra te stru c tu reb e in g c h a ng e d , th e Ba n k file d a ve rifie d c o m p la in t a g a in st th e N e lso n s, th e
LLC, a n d th e Co rp o ra tio n fo r th e a pp oin tm e n t o f a re c e i v e r a n d a n

a c c o m p a n y in g e m e r g e nc y m o tio n fo r su c h a pp oin tm e n t. De sp ite th e Ba n k ’s

p ro te sts, th e tria l c o u rt de n ie d th e re c e iv e rsh ip so ug h t b y th e e m e rg e nc y m o tio n

a n d in ste a d d ire c te d th e N e lso n s “ to tu rn o v e r to [th e Ba n k ] t h e k e y s to a n d

p o sse ssio n of th e re a l pro p e rty

. . . .” Th e Ba n k a pp e a ls fro m th a t o rd e r, a n d we

a ffirm

.
Mo st im p o rta n t, th e Ba n k d o e s n o t c h a lle n g e th e de n ia l o f a re c e iv e rsh ip

.
Ra th e r, th e Ba n k a

rg u e s o n ly th a t it d o e s n o t wa n t im m e d ia te p o sse ssio n o f th e

sto re a n d th a t th e tria l c ou rt wa s w ith o u t a u th o rity to o rd e r th e B a n k to a c c e p t

p o sse ssio n

. No wh e re in th e o rd e r, ho w e v e r, d o e s th e tria l c o u rt re q u ire th e Ba n k

to a c c e p t p o sse ssio n

. Se e G win n e tt Co u n ty v

. Mc Ma nu s, 2 9 4 Ga

. 7 0 2 , 7 0 4 (7 5 5

S E2 d 72 0 ) (2 0 1 4 ). Th e tria l c ou rt o n ly d ire c te d th e Ne lso n s to te n d e r p o sse ssio n

o f th e p ro p e rty to th e Ba n k

. U n d e r Ge o rg ia la w, th e m e re te n d e r of p o sse ssio n

to a n o th e r d o e s n o t w o rk a tra n sfe r o f po sse ssio n u n le ss a n d u n til p o sse ssio n is

a c c e p te d b y th e tra n sfe re e

. S e e S m iwa y , In c

. v

. D e p t. o f Tra n sp ., 1 7 8 Ga

. Ap p

.
4 1 4 , 4 1 8 (6 ) (3 4 3 S E2 d 4 9 7) (1 9 8 6 ) (q u o tin g L a m b v

. Go rm a n , 1 6 Ga

. Ap p

.
6 6 3 , 6 6 3 (3 ) (8 5 S E 9 8 1 ) (1 9 1 5 ) in th e c o n te x t o f a la n d lo rd -te n a n t

2re la tio nsh ip ). Cf. L e d sin g e r v

. Bu rk e , 1 1 3 Ga

. 7 4, 7 7 (1 ) (3 8 S E 3 1 3 ) (1 9 0 1 ). T o

th e e x te n t th e tria l c o u rt e rre d in o rd e rin g th e N e lso n s to te n d e r p o sse ssio n , th e

tria l c o u rt n e v e r re q u ire d th e Ba n k t o ta k e p o sse ssio n , a n d so , a n y su c h e rro r

c o u ld n o t h av e h a rm e d th e Ba n k

. Co n se q u e n tly , th e B a n k c a n n o t b e h e a rd to

c o m p la in a b o u t th e ord e r, wh ic h wa s d ire c te d o n lyto th e Ne lso n s. S e e Ma rtin

v

. He nd o n , 2 2 4 Ga

. 2 2 1 , 2 2 2 -2 2 3 (3 ) (1 6 0 S E2 d 8 9 3 ) (1 9 6 8 ); Ru sh v

. S o u th e rn

P ro p e rty Mg m t., 1 2 1 Ga . Ap p . 3 6 0 , 3 61 (2 ) (a ) (1 7 3 S E2 d 7 4 4 ) (1 9 70 ).

Ju d g m e n t a ffirm e d . All th e Ju stic e s c o n c u r.

De c id e d F e b ru a ry 1 6 , 2 0 1 5

. Eq u ity . Ba

rto w S up e rio r Co u rt. Be fo re Ju d ge Da v id K. S m ith

.
Ba lc h & Bin g h a m , Ja m ie L. Co h e n , Ma tth e w B. Am e s, Wa lte r E. Jo n e s,

fo r a p p e lla n t.

Ho wic k , We stfa ll, Mc Bry a n & Ka p la n , Lo u is G. Mc Bry a n , Virg in ia B.

Bo g u e , fo r a

p p e lle e s.

3