FOURTH D I VI SI ON

DOYLE, P. J.

, DI LLA RD, 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

Febr uar y 4, 2021



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A1 8 A1 00 1 . BOW E N et al . v . SAVOY et al

.

P H I P P S , Sen i o r Ap p el l at e J u d g e.

In Bo wen v. S

a vo y , 3 47 Ga. Ap p

. XXV (Sep t em ber 2 5 , 2 0 18 ) (u n p u b l i s h ed ),

t h i s Co u rt affi rm ed t he tri al co u rt ’ s d en i al o f El e a n o r M. Bo wen an d M arg aret M

.

In n o cen ti ’ s m o t i o n t o s et as i d e d efau l t i n an act i o n fi l ed ag ai n s t t h em b y th ei r s i s t er,

Pri s ci l l a A

. Sav o y

. In t h at cas e, we h el d t h at th e t ri al co u rt ’ s fi n d i n g t h at Ap p el l an t s

l ack ed a reas o n ab l e ex cu s e fo r t h ei r lat e an s w er was n o t an ab u s e o f d i s cret i o n.

Su b s eq u en t l y

, t h e Su prem e Co u rt o f Geo rg ia rev ers ed o u r ju d g m en t an d r e m a n d ed

t h e cas e t o t h i s Co u rt fo r co n si d erat i on co n s i s t en t wi t h it s deci s i o n

. Bo wen v. S a vo y

,

3 0 8 G a

. 2 0 4 (8 3 9 SE2 d 5 4 6 ) (2 0 20 ). Th erefo re, we vacat e o u r earl ier o p i n i o n an d

ad o pt t h e o p i n i o n o f t he Su p rem e Co urt as o u r o wn

. In i t s o p i n i on

, t h e Su p rem e Co u rt

n o t e d t h at t h i s Co u rt had no t co n s i d ered t h e t ri al co u rt ’ s al t ern at i v e h ol d i n g t h atAp p el l an t s h ad fai l ed t o es t ab l i s h a m eri t o ri o u s d efen s e an d co u l d ad d res s t h at

al t ern at i v e h o l d in g o n rem an d

. Id

. at 20 6

, n

. 3

. Hav i n g ad dres s ed t h a t i s s u e o n

rem an d, we co n cl u d e t h at Ap p el l an t s es t ab l i s h ed a m eri t o ri o u s defen s e. Acco rd i n g l y

,

we rev ers e an d rem an d

.

In 2 0 1 6 , Sav o y , i n d i v i d u al l y an d as ex ecu t o r o f h er m o t h er’ s es t at e, s u ed h er

s i st ers Bo wen an d In n o cen t i 1 (“ Ap p el l an t s ”), co n t en d i n g tha t the y c o llude d to tr a nsf e r

fu n d s fro m t h e i r m ot h er’ s acco u n t s fo r t h ei r o w n u s e. Ap p el l an t s were serv ed wi th

t h e su m m o n s an d co m

p l ai n t o n J u n e 2 0 an d 2 2

, 2 0 1 6

. On J u l y 2 0

, 2 0 16

, Ap p el l an t s

fi led a m o t i o n t o d i s m i s s t h e co m p l ai n t fo r l ack o f p ers o n al ju ri s di ct io n , wh i ch was

s u p p o r t ed by a s wo rn affi d av i t ex ecu t ed b y Bo wen d en y i n g t h e fact u al al l eg at i o n s

rai s ed i n t h e co m

pl ai n t

. Ap pel l an t s l at er fi l ed a su p pl em en t al aff i d a v i t e x ecu t ed by

Bo wen i n su p p o rt of t h ei r m ot i o n t o d is m i s s

. Wh e n A p p el lan t s d i d n o t an s wer t h e

co m p l ai n t w i t hi n 3 0 day s o f s erv i ce, as req u i red b y OCGA § 9 -1 1-1 2 (a), t h e cas e

“ au t o m at i cal l y

[b ecam e] i n d efau l t .” OCGA § 9 -1 1 -5 5 (a).

On Feb ru ary 1 5, 2 0 1 7

, t h e t ri al co u rt h el d a h eari n g o n Ap p el l an t s ’ m o t i o n to

d i s m i s s

. Si x d ay s l at er, o n Feb ru ary 2 1

, A p p e l l a n t s fi l ed an u nt i m el y an s wer. On

1 A t hi rd s i s t er, Su zan n e Do u g l as

, was al so n am ed as a d efen d an t ; h owev er, t h e

co m p l ai n t ag ai n st Do u g l as was d i s m i s s ed fo r l ack o f p ers o n al ju ri s d i ct i o n

.

2Feb ru ary 2 7

, Sav o y fi l ed a m o t i o n f o r en t ry o f d efau lt ju d g m en t

. Th at s am e d ay

,

Ap p el l an t s fi l ed a m ot i o n t o s et as i d e t he d efau l t

. Th e tr i al co u rt g ran ted Sav o y ’ s

m o ti o n fo r d efau l t ju d g m en t o n Au g u s t 2 3 an d co n co m i t an t l y i s s ued an o rd er d en y i n g

Ap p el l an t s ’ m o t i o n t o s et a s i d e t h e d efau l t

. In d en y i n g t h e m o t i o n t o s et as i d e t h e

d efau l t

, t h e t ri al c o u r t co n cl u ded t h at Ap pel l an t s h ad fai l ed t o rai s e a m eri t o ri ou s

d efen s e an d h ad n o t p ro v i d ed a reas o n ab le ex pl an at i o n fo r t h ei r fai l u re t o fi le a t i m el y

an s wer. T h ereaft er, t h e t ri al co u rt g ran ted Ap p el l an t s ’ req u es t f o r a cert i fi cat e o f

i m m ed i at e rev i ew. T h i s Co u rt g ran t ed Ap p el lan t s ’ ap pl i cat io n fo r i n t erl o cu t o ry

rev i ew b u t u l t i m at el y affi rm ed t h e ju d g m en t o f th e t ri al co u rt an d i t s co n cl us i o n t h at

A p p el l an t s h ad fai l ed t o p ro v i d e a reas o n ab l e ex p l an at i o n fo r t h ei r fai l u re t o fi l e a

t i m el y an s wer. B o w e n

, 34 7 Ga. A p p

. XXV. W e d id n o t ad d res s t h e t ri al co urt ’ s

al t ern at i v e h ol di n g t h at A pp el l an t s h ad fai l ed t o es t ab l is h a m eri t o ri o u s d efen s e. Id

.

Th e S u p r e m e Co urt o f Geo rg i a g ran ted cert io rari t o ad d res s t h e fo l l o wi n g

q u es ti o n : “ To s h o w a p ro p e r c a s e fo r o p en i n g d efau l t u nd er OCGA § 9 -1 1 -5 5 (b ),

m u st t he d efen d an t p ro v i de a reas o n ab l e ex p lan at i on fo r t h e fai l u re t o f i l e a t i m el y

an s wer? ” Bo wen

, 3 0 8 G a. at 2 04

. Th e Su prem e Co u rt an s wered t h at q ues t i o n i n t h e

n eg at i v e an d t h erefo re rev ers ed t h e ju dg m en t of t h is Co u rt an d rem an d ed t h e cas e fo r

co n si d erat io n co n s i st en t wi t h t h e Su p rem e Co u rt ’ s d eci s io n

. Bo wen

, 3 08 Ga. at 2 0 9.

3W e t h erefo re v acat e o u r earl i er op i n i o n an d ad o p t t h e op i n i o n o f t h e Su p rem e

Co u rt as o u r own

. Ho wev er, b ecau s e we d i d n o t p rev i o u s l y ad d r e s s A p p el l an t s ’

co n ten t i o n t h at th e t ri al co urt erred i n h o l d i n g th at A p p el lan t s fai l ed t o es t ab l i sh a

m e r i to ri o u s d efen s e, we d o s o n o w. W e co ncl u d e t h at Ap p el l an t s es t ab l i s h ed a

m eri t o ri o u s d efen s e.

Un d er OCGA § 9 -1 1 -5 5 (b ), a p reju d g m en t d efau l t m ay be

o p en ed on o ne o f t hree g ro u n d s i f fo u r co n d i t i o n s are m et

. T h e t h ree

g ro u n d s ar e : ( 1) pro vi d en t i al cau s e, (2 ) ex cu s ab l e neg l ect

, an d (3 ) p ro p er

cas e; t h e fo u r co n d it i o n s are: (1 ) s h o wi n g m ad e u n d er o at h

, (2 ) offer t o

p l ead i n s t an t er, (3 ) an n o un cem en t o f read y t o p ro ceed wi t h t ri al

, an d (4 )

s et t i n g u p a m eri t o ri o u s d efen s e.

Bu t t er wo r t h v. Sa

f el i t e Gl a s s Co r

p

. , 2 8 7 Ga. Ap p

. 84 8

, 84 9 (1 ) (6 5 2 S E2 d 8 7 7 )

(2 0 0 7) (ci t at i o n s an d em p h as i s o m i t t ed ). If t h e fo u r co n d i t i o n s are m et

, t h e n “ t h e

o p en in g o f d efau l t res t s wi t h i n t h e s o u nd d i s cret io n o f t h e t ri al co u rt .” Id

. ( c i t a t i o n

o m it t ed ). “ Th e s o le fu n ct i o n o f an ap p el l at e co u rt rev i ewi ng a t ri al co u rt ’ s d en i al o f

a m o t i o n t o o p en d efau l t i s t o d et erm i n e w h et h er al l t h e co n d i ti o n s s et fo rt h i n OCGA

§ 9 -1 1 -5 5 h av e b een m et an d

, i f s o

, wh et h er t he t ri al co u rt ab u s ed i t s d i s cret i o n b as ed

o n t h e fact s p ecu l iar t o each cas e.” K-Ma r t Co rp

. v. Ha cket t

, 2 3 7 G a. Ap p. 1 2 7

, 1 2 8

(1 ) (5 14 SE2 d 8 84 ) (1 9 9 9 ) (ci t at i o n o m i t ted ).

4In t h i s cas e, t h e t ri al co u rt d et erm i ned t h at Ap p e l l a n t s had no t s at i s fi ed t h e

co n di t i o n o f s et t i n g u p a m eri t o ri o u s d efen s e an d t h at i t t h erefo re h ad n o d i s cret i o n

t o s et as i d e t h e d efau l t. T o es t ab l i s h a m eri t o ri o us defen s e, a d efen d an t m u s t s h o w

“ t h at i f rel i ef fro m d efau l t i s g ran t ed , t h e o u t co m e o f t h e s u i t m ay b e d i fferen t fro m

t h e res u l t i f t h e d efau l t s t an d s

. In m ak i n g t h i s s h owi n g , t h e d efen d an t m u s t p ro v i d e

fact ual i n fo rm at i on an d m ay n o t rel y s o lel y o n co n cl u s i o n s

. ” Exxo n Co r p

. v.

Th o ma so n

, 26 9 Ga. 7 61

, 7 6 1 (1 ) (5 0 4 SE2 d 6 7 6 ) (1 99 8 ) (ci t at i o n s o m i t t ed ). In

m ak i n g t hat s h o wi n g , “ t he d efen d an t m u s t set fo rt h fact s t h at s ho w t h e ex i st en ce o f

t h e es s en t i al el em en t s o f su ch d efen s e ev en t h ou g h th ere i s n o req u i rem en t t h at t h e

affi d av i t o r o t h er s wo rn s t at em en t co n t ai n i n g reat d et ai l t h e fact ual b as i s o f t h e

p ro p os ed d efen s e.” W

a t er Vi s i o n s In t l

., In c. v. Ti p pet t Cl ep p er As s o c.

, 2 9 3 G a. Ap p.

2 8 5

, 2 8 7 (2 ) (6 6 6 SE2 d 62 8 ) (2 0 08 ) (ci t at i o ns an d p u n ct u at io n o m i t t ed ). H o wev er,

a “ s h o wi n g t h at t h e d efen d an t wi l l co m p let el y d efeat p l ai ntif

f ’ s cl ai m ” i s n o t req u i red

.

Exxo n Co r

p

. , 2 6 9 Ga. at 7 6 1 (1 ).

In h er co m

pl ai n t

, Sav o y al l eg ed t h at h er m ot h e r had ex p eri en ced s t ead i l y

d ecl i ni n g p h ys i c a l a n d m en t al h eal t h d uri n g t h e l as t t wo y ears o f her l i fe, an d t h at

a l t ho u gh s h e ex p eri en ced p eri o d s o f l u ci d i t y

, s h e s u ffered fro m p ro b lem s wi t h h er

m em o ry an d h er awaren es s o f t im e. Sa v o y f u rt h er al l eg ed t h at h er m ot h er g av e

5Bo wen a p o wer of at t orn ey t o m an ag e h er fi n an ci al affai rs at Bo wen ’ s u rg in g an d t h at

Bo wen ab u s ed h er p o s i t i o n as a fi d u ci ary b y t ran s ferri ng s u b s t an t ial fu n ds bel o n g i n g

t o her m o t h er i n t o a jo i n t acco u n t o pen ed b y Ap p el l an t s an d i n t o h er m o t h er’ s m o n ey

m a rk et acco u n t

, wh i ch Bo wen co n t ro l led

. Sav oy cl ai m ed t h at Ap p el l an t s wo rk ed

t o g et h er t o t ran s fer t h e fu n d s wi t ho u t t hei r m o th er’ s k n o wl ed g e o r p erm i s s i o n ; t h at

Ap p el l an t s d iv ert ed s o m e o f t h e f u n d s f r o m t h e s al e o f th ei r m o t h er’ s h o u s e i n t o a

jo i n t acco u n t o p en ed b y Ap p el lan t s fo r t h ei r o wn u s e; an d t h at Ap p el l an t s co o p erat ed

t o t ran sfer m o re t h an $ 7 0 ,0 0 0 b el o n g in g t o t h ei r m o t h er fo r t h ei r o w n u s e.

Sav o y as s ert ed cl ai m s o f b reach of fi d uci ary d u t y

, co n v ers i o n

, an d m on ey h ad

an d recei v ed

. Sav oy s o u g h t an acco un t in g , t o h av e t ran s fers o f fu n d s set as i d e, an d

t o h av e a co n s t ru ct i v e t ru s t i m po s ed o v er al l as s et s wro n gfu l l y t ak en b y Ap p el l an t s

,

as wel l as co m

p en s at o ry d am ag es , p u n i t iv e d am ag es , an d at to rn ey fees

.

Co n trary t o t h e t ri al co u rt ’ s co n cl u s i o n, t h e t wo affi d av i t s s u b m i t ted b y Bo wen

i n s u p p o r t o f A p p el l an t s ’ m ot i o n t o d i sm i s s es t ab l i s h a m eri t o ri o u s d efen s e t o t h e

al l eg at i o n s o f t h e co m

p l ai n t. In t h e fi rs t affi d av i t, Bo w en s t at es :

I am v ery fam il i a r w i t h m y m o th er, Al i ce Tal b o t

, h er fi n an ci al

affai rs an d h er s tat e of m i n d

, p art i cu l arl y i n t he t i m e b efo re h er d eat h

. I

ag reed t o accep t ap p o i n t m en t as h er at t o rn ey -i n -fact p u rs u an t t o a p o wer

6o f at t o rn ey dat ed M ay 2 1

, 2 0 1 4

. At t he t i m e m y m o t h er ap p o in t ed m e as

h er at t o rn ey -i n -fact s h e was l u ci d an d i n fu l l co n t ro l o f h er facu l t i es

.

I n ev er ab u s ed m

y p o s i t i o n as m

y m o t h er’ s at t o r n e y- i n -fact an d

al way s co n du ct ed h er fi nan ci a l a f f ai rs i n a m an n er t h at acco rd ed w i t h

h er b es t i n t eres t s. My m o t h er o p en ed a M on ey Mark et acco u nt at Del t a

Co m m un i t y Cred i t Un i o n wi t h m y si s t er M arg aret In n o cen t i an d m y s el f

jo i n t l y

, wi t h ri gh t o f s u rv i v ors h i p, s ho rt l y aft er t h e t i m e s h e ap p oi n ted

m e at t o rn ey -i n -fact

. Th i s jo i n t acco un t was fo r t h e pu rp o s e o f p ro v i d i n g

fo r m y m ot her’ s n eed s an d I n ev er t reat ed t h e m on ey as m y o wn

, n or d i d

I ev er us e an y o f t he fu nd s fo r m y o wn n eed s

. I t w a s t hi s acco u n t i n

wh i ch t h e p ro ceed s f

r o m t h e s al e o f t h e h o u s e were d ep o s i ted

. I u s ed

t h i s m o n ey du ri n g m

y m o t h e r ’s l i f

et i m e fo r h er need s. Up on m y

m o t h er’ s d eat h I co n su l t ed l eg al co u n s el wh o ad v i s ed m e t h at t h i s jo i n t

acco u n t di d n ot b eco m e t h e p ro p ert y o f m y m o t h er ’s e s t at e.

Nev ert h el es s

, I d i v i d ed t h e rem ai ni n g fu nd s i n t he acco u n t n i n e way s

–

fo r each of m

y s el f an d m y s i b li n g s

– an d s en t each a ch eck fo r t hat

a m o u n t

. A n y al leg at i o n o r i m p l i cat i o n th at I u s ed an y m o n ey in t hat

acco u n t fo r m

y pers o n al n eed s o r fo r an yt h i n g ot h er t h an m y m o t h er’ s

b en efi t i s fal s e.

In h er s up p l em en tal affi d av i t , Bo wen s t at es :

M y m o t h er h ad on l y a t em p o rary l o s s o f m em o ry an d awaren es s

t h at acco m

p an i ed h er h os p i tal i zat i o n i n No v em b er 20 1 3

. T h i s l ack o f

m em o ry was a d i rect res u l t o f p re s cri p t i o n d ru g s

. On ce s h e reco vered

fro m h er ho s pi t al i zat io n an d s t o p p ed t ak i n g cert ai n d ru g s s h e was ab l e

t o l i ve o n h er o wn an d s t a ye d b y h ers el f an d cared fo r hers el f i n th e

7s p ri n g o f 2 0 1 4, d u ri n g wh i ch t i m e sh e fu l l y reco v ered h er m en t al

facu lt i es

.

I was u n ab l e t o v i si t m

y m o t her o n M o t h ers ’ Day i n 2 0 1 4

. I was

al s o n o t i n G eo rg ia wh en m y m o t h er ex ecu t ed h er p o wer o f at t o rn ey i n

M ay 2 01 4

, es t ab l i s hi n g m e as h er at t o r n e y- i n -fact

. M y m o th er d i d n o t

as k m e t o serv e i n t h i s cap aci t y p ri o r t o ap p o i n t in g m e. I t o o k n o p art i n

t h e d raft i n g o f t h i s d o cu m en t an d d i d no t l earn of m y ap p oi n t m en t u nt i l

aft er t he fact

.

M y m o t h er o p e n e d a c h eck in g an d a m o n ey m ark et acco u n t at

Del t a Co m

m u n i t y Cred i t Un i o n wi t h m y s i s ter M ar g a r et an d m y s el f

jo i n t l y wi t h ri g h t o f s u rv i v o rs h i p

. M y m ot h er t ran sferred $1 0 ,0 0 0.0 0 t o

t h e ch eck in g an d $ 5 0 ,0 0 0 .0 0 t o t h e m o n ey m ark et

. Th es e act i o n s were

t ak en b y m

y m ot h er b as ed o n h er o wn free wi ll an d were t h e res u l t s o f

h er o wn d eci s i on s

. St at em en t s t o t h e co nt rary b y M s

. Sav o y are n o t h i n g

m o re t han s p ecu l at i o n wi t h o u t an y fact u al s u pp o rt

.

W h i l e n ei t h er M arg aret no r I acco u n t ed fo r t h es e fu nd s to M s

.

Sav o y

, we d id acco u n t fo r t h em w i t h m y m ot h er. W h il e s h e l i v ed i n

Geo rg i a, M arg aret w en t o v er m y m o t her’ s acco u n t s w i t h her. Up o n th e

s al e o f m y m o th er’ s h o u s e, m

y m o t her t o o k t h e p ro ceed s an d d ep o si ted

t h em i n h er m o n ey m ark et acco u n t t h at sh e h ad wi t h Marg aret an d

m y s el f jo in t l y

. Th e m on ey i n t h o s e acco u n t s was u s ed s o l el y f o r m y

m o t h er’ s ex p en s es

. St at em en t s t o t h e co nt rary by M s

. Sav o y are n o t h i n g

m o re t han s p ecu l at i o n wi t h o u t an y fact u al s u pp o rt

.

Bo wen ’ s affi dav i t s ex p l ai n i n s o m e d et ai l h o w h er m o t her’ s m on ey was u s ed

an d ex p res s l y d en y an y d iv ers i o n fo r pers o n al us e. Th e fact s d et ai l ed in B o wen ’ s

8affi d av i ts co n t rad i ct m an y of t he al l eg at i o ns i n t h e co m p lai n t an d es t ab l i s h a fact u al

d efen s e t o Sav o y ’ s cl ai m s o f breach o f fi d u ci ary d u t y

, co n v ers i o n

, an d m o n ey h ad an d

recei v ed

. Th u s

, Ap p el l an t s h av e d em o n s t rat ed t h at t h e o u t co m e of t h e cas e “ m ay b e

d i fferen t” i f t h ei r m o ti o n t o s et as i d e defau lt i s g ran t ed

. See Exxo n Co r p.

, 2 69 Ga. at

7 6 1 (1 ). Co n s eq uen t l y

, Bo wen ’ s affi dav it s s et up a m eri t ori o u s d efen s e, an d t h e t ri al

co u rt erred b y ru l i n g o th erwi se. W e t h erefo re rev ers e th e ju dg m en t o f t h e t ri al co u rt

an d rem an d t h i s cas e fo r t h e t ri al co u rt t o rev i s i t it s an al y si s o f wh et h e r A p p e l l an t s

h av e es tab l i s h ed a p ro p er cas e fo r o p en in g d efau l t co n si s t en t wi t h t h e Su p rem e

Co u rt ’ s an d t h i s Co u rt ’ s d eci s i o n s

.

Ju d g men t r ever

s ed a nd ca s e r ema n d

ed

. Do yl e, P. J., a n d Di l l a r d

, P. J., co n cu r

.

9