FI FTH DI VI SI ON

M CFA DDEN, P. J.

, BRA NCH and BETHEL, 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

M ar ch 15, 2018



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A1 7 A1 83 9 . ERICKSON v . BANK OF AM ERICA, N. A. et al

.

M C F A D D E N , Pres id i n g J u d g e.

Th i s ap p eal i s fro m a t ri al co u rt o rd er g ran t i ng s u m m ary ju d g m en t t o Ban k o f

Am eri ca, N. A., o n it s co m p l ai nt fo r d ecl arat o ry ju d g m en t an d eq u i t ab l e refo rm at i o n

o f a s ecu ri t y d eed an d o n a co u n t ercl ai m b ro u g h t ag ai n st i t

. Becau s e th ere are n o

g en ui n e i s s u es o f m at eri al fact as t o t he co u n t ercl ai m

, t h e t ri al co u rt co rrect l y g ran t ed

s u m m ary ju d g m en t o n th at cl ai m

. Bu t b ecau s e Ban k o f Am eri ca i s n o l o n g er t h e

h o l d er o f t h e s ecu ri t y deed t hat p ro v i d ed t h e b as i s fo r i t s co m pl ai nt

, t h e t ri al co u rt

erred i n award i n g t h e ban k s um m ary j u d g m e n t o n t h at co m pl ai nt

. Acco rd i n g l y

, we

affi rm in p art an d rev ers e i n p art

.

Su m m ary ju d g m en t is p ro p er if “ t h e p l ead i n g s

, d e p os i t i o n s

, an s wers to

i n t erro g at o ri es

, an d ad m i ss io n s o n fi l e, to g et h er wi t h t he affi d av i ts

, i f an y

, sh o w t h att h ere i s no g en u in e i s s ue as t o an y m at eri al fact an d t h at t he m ov 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). “ On ap p eal fro m th e g ran t

o f su m m ary ju dg m en t

, t h e ap p el l at e co u rt co nd u ct s a d e n o v o rev i ew o f th e ev i d en ce

t o det erm i n e w h et h er t here i s a g en u i n e i ss u e o f m at eri al fact an d w h et h er t h e

u n d i s p u t ed fact s

, v i ewed in t h e l i g h t m o s t fav o rab l e t o t h e n o n m o v in g p art y

, warran t

ju d g m en t as a m at t er o f l aw.” Ba n k o f Amer ica

, N. A. v. Cu n eo

, 3 3 2 Ga. Ap p

. 7 3

, 7 4

(7 7 0 SE2 d 4 8 ) (2 0 1 5 ) (ci t at i on an d p u n ct u at i o n o m i t t ed ).

So v i ewed

, t h e ev i d en ce s h o w s t hat J erry an d Sarah Eri ck s o n o b t ai n ed t i t l e to

a p i ece o f p ro p ert y l o cat ed i n Co b b Co u n t y v i a a warran ty d eed s i g n ed o n M arch 3 0,

2 0 0 0

, an d reco rd ed i n th e co u nt y d eed reco rd s o n Ap ri l 7

, 2 0 0 0

. In Ap ri l 2 0 0 7

, t h e

Eri ck s o n s o b t ai ned a l o an o n t h e pro p ert y

, ex ecu t in g a p ro m i s s o ry n ot e i n t h e

p ri n ci p al am o u n t o f $ 2 4 8

, 0 0 0 i n fav o r o f Co u n t ry wi d e Ho m e L o an s

, In c., an d

s ecu ri n g t h e no t e wi t h a s ecu ri t y d eed g ran t ed t o M o rt g ag e E l e c t r o n i c Reg i s t rat i o n

Sy s t em s

, In c. (“ M ERS”). On Decem b er 1 0

, 2 0 1 0

, Sarah Eri ck s o n fi l ed i n th e co u n t y

d eed reco rd s a n o t i ce o f h er p u rp o rt ed ri g h t to can cel t h e l o an

, i ncl u d i n g an y s ecu ri t y

i n t eres t s

, u n d er t h e fed eral Tru t h i n Len d i ng A ct

, an d a n o ti ce o f ap p o i n t m e n t o f a

s u cces s o r t ru st ee. On D ecem ber 2 0

, 2 0 1 0 an d J an u ary 4, 2 0 1 1

, Sarah Eri ck s o n fi l ed

i n t he co u n t y

reco rd s t wo n o t i ces o f l i s p en d en s o n t h e p ro p ert y . In J u l y 2 0 1 1

, aft er

2a m erg er o f co m p an ies an d an as s i gn m en t o f t h e s ecu ri ty d eed

, Ban k o f A m e r i ca

b ecam e t h e h o ld er o f t h e s ecu ri t y d eed

.

In Au g u s t 2 0 11

, Ban k of Am er i c a f i l e d a co m

p l ai n t ag ai n s t t h e Eri ck s on s

s eek i n g d ecl arat o ry ju d g m en t an d eq u i t ab l e refo rm at io n of t h e s ecu ri t y d eed

. Th e

d ecl arat ory ju d g m en t co un t s o u g h t d ecl ar a tions t h at t h e s ecu ri t y d eed rem ai n ed i n fu l l

fo rce an d effect as t h e n o t i ces fi l ed b y Sarah Eri ck s o n were v o i d an d t h at t h e

Eri ck s o n s were o b l ig at ed t o p a y a l l s u m s s ecu red by t h e d eed

. T he eq u i t ab l e

refo rm at i o n co u n t so u g h t t o refo rm t h e s ecu ri t y d eed by rep l aci n g t h e d es cri p t i o n o f

t h e p ro p ert y

t h erei n wi t h a m o re co m pl et e d es cri p t i on

.

Sarah Eri ck s on fi l ed an an s wer, co u n t ercl ai m s ag ai n s t Ban k o f Am eri ca, an d

p u rp ort ed co u nt ercl ai m s an d t hi rd -p art y cl ai m s ag ai ns t Co u nt ry wi d e an d M ERS. 1 In

J an u ary 2 0 1 6

, Ban k o f Am eri ca, Co u n t ry wi d e, an d M ERS, jo i n t ly m o v ed fo r

s u m m ary ju d g m en t as t o t he b an k ’ s co m p l ai n t an d as t o Sarah Er i c k s o n ’ s v ari ou s

co u nt ercl ai m s an d t h i rd -p art y cl ai m s

. Sarah E ri ck s on (h erei n aft er, “ Eri ck so n ”) fi l ed

n o res p o n s e t o t h e m ot i o n fo r s u m m ary ju d g m en t

.

1 Th e b an k fi l ed a d efau l t cert i fi cat e i n t h e t ri al co urt s t at i n g th at J erry Eri ck so n

h ad b een p ers o n al l y s erv ed

, b u t h ad fi l ed n o d efen s i ve p l ead i n gs i n t he cas e. Sarah

Eri ck s o n s t at es o n ap p eal t h at sh e an d J erry E ri ck s on are d i v orced an d t h at he h as n ot

p art i ci p at ed i n t he l i t ig at i o n

.

3On Sep t em b er 2 6

, 2 0 1 6

, a h eari n g was h el d o n t h e s um m ary ju dg m en t m o t i o n.

At t h e s t art o f t h e h eari n g

, co u n s el fo r Ban k o f Am eri ca, wh o al s o rep res en t ed

Co u n t ry wi d e an d M ERS, i n fo rm ed t h e t ri al co u rt t h at t h e b an k was n o l on g er t h e

h o l d e r o f t h e secu ri t y d eed

, h av i n g as s i g n ed i t s in t eres t i n t h e d eed t o t h e Fed e r a l

Nat i o n al M o rt g ag e A s s o ci at i on

. Co u n s el t o ld t h e co u rt t h at th e ban k co u l d n o t m o v e

fo rward wi t h i t s o ri g i n al co m p l ai n t s i n ce it was no l o n g er t he real p art y i n i n t eres t

,

t h at h e wo u l d l i k e t i m e t o fi l e a m o t i o n t o su b st i tu t e t h e real p art y i n i nt eres t o r to

v o l u n t ar i l y d i s m i s s t h e co m pl ai n t wi t h o u t preju d ice, b u t t h at h e st i ll wan t ed to

p ro ceed w i t h arg u m en t o n t h e m o t i o n fo r s u m m ary ju d g m e n t as i t p ert ai n ed to

Eri ck s o n ’ s co u nt ercl ai m s an d t h i rd -p art y cl ai m s. A t t h e co n cl u s i o n o f t he h eari n g

, t h e

at t o rn ey fo r Ban k o f Am eri ca, Co u n t ry wi d e, an d MERS rei t erat ed t h at h e was o n l y

as k i n g fo r su m

m ary ju d g m en t o n Eri ck s o n’ s vari ou s cl ai m s ag ai n s t h i s c l i en t s an d

t h at h e wo u l d ei t h er su b s t i t u te t h e real p art y i n i n t e r e s t o n th e b an k ’ s co m p l ai n t o r

d i s m i s s t h at act i on wi t h ou t p reju d i ce. Th e t ri al ju d g e t hen o ral l y an n ou n ced t h at h e

was g ran t i n g t h e m o t i o n fo r s u m m ary ju d g m en t as t o Eri ck s o n ’ s cl ai m s ; h e d i rect ed

co u ns el fo r t h e m ov an t s t o s u b m i t an ord er t o t h at effect ; an d t h e ju d g e p ro n o u n ced

t h at “ [a] s far as t h e cas e i n ch i ef, wh o ev er h as t h e l o an n o w wi l l h av e to p u rs u e i t .”

4Ov er si x m o nt h s aft er t h e h eari n g

, i n Ap ri l 2 0 17

, t h e tri al co urt s i g n ed an d

en t ered t h e o rd er s u bm it t ed b y co u n s el fo r Ban k o f Am eri ca, C o u n t ry w i d e, an d

M ERS. As an n o u n ced at t h e h ear i n g

, t h e o rd er g ran t ed s u m m ary ju d g m en t t o t h e

m o van t s as t o t h e co u n t ercl ai m s an d th i rd -p art y cl ai m s bro u g h t b y Eri ck s o n

. Bu t

co n trary t o w h a t h ad b een arg u ed an d an n o u n ced at t he h eari n g

, t h e o rd er al s o

g ran t ed su m

m ary ju dg m en t t o Ban k o f Am eri ca on t h e cl ai m s fo r d e c l a r a t o ry

ju d g m en t an d refo rm at io n o f t h e s ecu ri t y d eed th at it h a d a s s e r t e d i n t h e o ri g i n al

co m p l ai n t . Eri ck s o n ap p eal s

.

1

. S u mma r y j u d g men t t o Ba n k o

f Amer i ca o n i t

s co mp l a i n t

.

In s ev eral d i fferen t en u m erat i o n s of erro r, Eri ck s o n arg u es t h at t h e t ri al co u rt

erred i n g ran t i n g su m

m ary j u d g m en t t o Ban k of A m eri ca o n i t s co m pl ai n t fo r

d ecl arat ory ju d g m en t an d refo rm at io n o f t h e s ecu ri t y d eed becau s e i t l ack ed s t an d i n g

t o p u rs u e th o s e cl ai m s aft e r i t h a d t ran s ferred i t s i n teres t i n t he s ecu ri t y d eed to

an o th er en t i ty . W e ag ree.

OCGA § 9 -1 1 -2 5 (c) pro v i des t h at i n an y cas e o f an y t ran s fer o f

i n t eres t, th e act io n m ay b e co n t i n u ed b y o r ag ai n s t t h e ori g i n al p art y

u n l e s s t he co u rt

, u p o n m o t i o n

, d i rect s t h e p ers o n t o wh o m th e i n t eres t

i s t ran s ferred t o b e s u b s t i t u ted in t h e act i o n or jo i n ed wi t h t h e o ri g i nal

p art y

. T h i s s u b s ect io n v es t s d i s cret i o n i n th e t r i a l j u d g e t o al lo w th e

o r i g i n al p l ai n t iff to co n t i n u e s u i t ei t h er al o n e o r jo i n ed b y t h e i n t e r e s t

t r an s feree wh en t h e t ran s fer o f i n teres t o ccu rred aft er t h e fi l i n g o f t h e

5s u i t

. Th u s

, OCGA § 9 -1 1 -2 5 (c) co nt em p l at es a t ran s fer o f i n teres t

, d u ri ng t h e l i t i g at i on , fro m o n e wh o i s a p art y t o t h e cas e t o on e wh o i s

n o t

. . . . Ho wev er OCGA § 9 -1 1 -2 5 (c), wh e n o p e r at i v e, d o es n o t

au t o m at i cal l y au t h o ri ze t h e co n t i n u an ce o f an o ri gi n al act i o n in al l cas es

fo l l o wi ng t h e t ran s fer o f an i n t eres t

. If a cau s e o f act i on d oes no t s u rv iv e

a s u b s eq u en t t ran s fer o f i n t eres t

, O CGA § 9 -1 1 -2 5 (c), s t an di n g al o n e,

wo u ld n o t rev i v e i t

.

Gen e Th o mp s o n Lu mb er Co

. v. Da vi s Pa r mer Lu mb er Co

. , 1 89 Ga. Ap p. 5 7 3

, 5 7 5

(3 ) (a) (3 7 7 SE2 d 1 5) (1 9 88 ) (ci t at i o n s

, p u nct u at i o n

, an d em p h as i s o m i t t ed ). As o u r

Su p rem e Co u rt h as ex p l ai n ed

, OCGA § 9 -1 1 -2 5 (c) “ d o es n o t d et erm i n e wh at act i on s

s h al l s u rv i v e t h e t ran s fer of i n t eres t b y a part y ; i t d eal s o nl y wi t h t h e m ech an i cs o f

s u b s t i t u t io n i n an act i on wh i ch d o es s u rv i v e u n d er t h e ap p l i cab l e s u b s t an t i v e l aw.”

Go o d yea r v. Tr us t Co

. Ba nk

, 2 4 8 Ga. 4 0 7

, 40 8 (2 84 SE2 d 6 ) (1 9 8 1 ) (ci t at i o n an d

p u n ct u at i o n o m it t ed ).

Un d er t h e ap pl i cab l e subs t an t i v e l aw, Ban k o f Am eri ca’ s act i o n fo r d ecl arat o ry

ju d g m en t an d refo rm at i o n o f t h e s ecu ri t y d eed d i d n o t s u rv iv e t h e t ran s fer o f i t s

i n t eres t in t h at s ecu ri t y deed

, wh i ch p ro v i ded t h e b as i s fo r it s act i on

, t o an ot h er en t i t y

.

W i th reg ard t o th e cl ai m s eek i n g e q u i t a b l e refo rm at i o n o f th e s ecu ri t y d eed

, “ t h i s

eq u it ab l e rem ed y i s l i m i t ed t o t h o s e wh o are ei t h er p art i es t o t h e o ri g i n al d eed o r are

i n pri v i t y wi t h s u ch o ri g i n al p art i es .” Mo o r e v. McBr ya r

, 2 9 0 Ga. Ap p

. 7 2 5, 7 2 8 (6 5 9

SE2 d 78 9 ) (2 0 0 8 ) (ci t at i o n o m i t t ed ). Acco rd Ha r vey v. Ba n k On e, N. A.

, 2 9 0 Ga.

6A p p

. 55

, 5 6 (1 ) (6 5 8 SE2 d 8 24 ) (2 0 0 8 ) (n o n p art y t o a s ecu ri t y d eed l ack s s t a n d i n g

t o ch al l en g e i t s v al i d it y ). Ban k o f Am eri ca was n ot an ori g i n al p art y t o t h e s ecu ri t y

d eed an d n o l o ng er h as an y i n t eres t i n t h e d eed aft er h av i n g t ran s ferred s u ch i n t eres t

t o an o th er en t i t y

. Acco rd i n g ly

, “ we fi n d t h at [Ban k o f Am e r i c a ] has no s t an d i n g to

s eek refo rm at i on o f t h e d eed [] b ecau s e [i t ] i s n ei t h er a p art y n o r is [i t ] i n pri v i t y wi th

a p art y t o t h at t ran s act i o n

. ” Mo o r e , s u p ra at 7 2 8-7 2 9

.

As fo r t h e d ecl arat o ry j u d g m en t co u n t o f t h e co m p l ai n t

, s i n ce Ban k o f Am eri ca

n o l o n g er has an y i n teres t i n t h e s ecu ri ty d eed

, i t s cl ai m fo r “ d ecl arat o ry ju d g m en t

b as ed u p o n [i t s ] s t at us as a [h ol d er o f t he d eed ] wo u l d n o w b e m o o t .” Go o d yea r

,

s u p ra (ci t at i on an d p un ct u at i on o m i t t ed ). See al s o S JN Pr o p er t i es v. Fu l to n Co u n t

y

Bd

. o f As s es s or

s

, 29 6 Ga. 7 9 3

, 8 0 2 -8 0 3 (2 ) (b ) (i ii ) (7 70 S E 2 d 8 3 2 ) (2 0 1 5 )

(d ecl arat o ry rel i ef i s pro per o n l y wh ere t h ere i s an act ual co n t ro v ers y an d t h e p art y

s eek i n g s u ch rel i ef faces u ncert ai n t y as t o ri g h t s

, s t at u s

, o r l eg al rel at i o n s

, u po n wh i ch

i t s fu t ure co n d u ct d ep en d s ). Becau s e Ban k of Am eri ca’ s decl arat o ry ju dg m en t act i o n

d i d n o t s u rv iv e t h e tran s fer o f i t s i n t eres t i n t h e s ecu ri ty d eed

, t he t ri 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 at cl ai m

.

2

. Mo t i o n f

or co n t i nu a n ce.

7Eri ck s o n co n t en ds th at t h e t ri al co u rt erred in fai li n g t o g ran t h er m o t i o n fo r a

co n ti n u an ce of t h e s u m

m ary j u d g m en t heari n g

, i n w h i ch s h e as ked th e co u rt to

rem o v e h er co u ns el o f reco rd an d g i v e h er ad d it i on al t i m e t o h ire n ew co u n s el

.

Eri ck s o n fi l ed t he m o t i on t hree d ay s b efo re t h e h eari n g an d s h e a p p eared at t h e

h eari n g , b u t s h e fai led t o i n v ok e a ru l i n g b y t h e co u rt o n t he m o t i o n

.

Th e m ere fact t h at t he [h eari n g ] p ro ceed ed d es p i t e t h e ex i s t en ce of t h e wri t t en

m o ti o n fo r co n t i n u an ce i n t h e reco rd can n o t su ffi ce t o s h o w t h at th e t ri al co u rt erred

i n fai l i n g t o g ran t t h e req u es t ed co n t i nu an ce. It w as t h e d ut y o f [Eri ck s o n ] t o i n v o k e

a fi n al ru l i ng o n [h er] m o t i o n , an d [h er] fai l ure t o d o s o p recl u d es o ur rev i ew o f t h e

m o ti o n o n ap p eal

.

Met ro At la n ta Tr u cki n g Co

. v. Kyz er

, 2 1 7 Ga. Ap p . 6 3 0 (1 ) (4 5 8 SE2 d 4 1 6 ) (1 9 9 5 )

(ci t at i o n s an d p u nct u at io n o m i t t ed ). Acco rd Hi l l ia r d v. J. C. Br a d f o rd & Co

. , 2 2 9 Ga.

Ap p

. 3 3 6

, 3 3 9 (1 ) (b ) (4 9 4 SE2 d 38 ) (1 9 97 ) (fai l u re to in v o k e ru l in g o n a m o t i o n

p recl u d es ap p el l at e rev i ew o f t h e m o ti o n ).

3

. S u mma r y j u d g men t o n co u n t er cl a i m.

Eri ck s o n ch al l en g es t h e g ran t o f s u m m ary ju dg m en t as t o h er co u n t ercl ai m t h at

t h e lo an h ad b een res ci n d ed u n d er t h e fed eral Tru t h i n Len d in g Act

, 1 5 USC § 1 6 0 1

et s eq

. Sh e ci t es Jes i n o s ki v. Co u n t r ywi d e Ho me Lo a ns

,

_

_ _ U. S.

__ _ (1 3 5 SCt 7 9 0,

1 9 0 LE2 d 6 5 0 ) (2 0 1 5 ) an d o t h er cas es fo r t he p ro p o s i t i o n t h at al l a ho m e m o rt g ag o r

8m

u st d o i n o rd er t o ex erci se t h e ri g h t t o res ci n d a l o an u nd er t h e Act i s p r o v i d e

wri t ten n o ti ce t o t h e len d er wi t h i n t h ree y ears o f t h e d at e t h e t ra n s a c t i o n was

co n su m m at ed

. Bu t t h e ap p el l ees h av e p o in t ed t o ev i d en ce s h o wi n g t h at Eri ck s o n d id

n o t pro v i d e s u ch n o t ice to t he l en d er wi t h in t hree y ears an d t hu s t h ere was n o t i m el y

res ci ss i o n

. Eri ck s o n t h erefo re “ can n o t res t o n [h er] p l ead i n g s

, b u t rat h er m u s t p o i nt

t o s p eci fi c ev i d en ce g i vi n g ri s e t o a t ri ab le is s u e. ” Co wa r t v. W i d en er

, 2 8 7 Ga. 6 2 2,

6 2 3 (1 ) (a) (6 9 7 SE2 d 7 79 ) (2 0 1 0 ) (ci tat i o n an d p u nct u at i o n o m i tt ed ). Eri ck s o n,

h o w e v er, h as n ot p o i n t ed t o an y s u ch s p eci fi c ev i d en ce creat in g a g en u i n e i s s u e o f

m at eri al fact

. Acco rd i n g ly

, s h e h as fai l ed t o s h o w 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 o n t h e co u nt ercl ai m

.

Ju d g men t a ff i rmed i n p a r t an d r ever s ed i n p a r t

. B r an ch a nd Bet h el

, JJ.,

co n cu r

.

9