FOURTH D I VI SI ON
BA RNES, P. J.

, RA Y and M CM I LLI A N, 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

Septem b er 9, 2015



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A1 5 A1 55 9

. NKN ENTERPRISES, L LC et al

. v

. BRANCH
BANKING AND TRUST COM PANY et al

.

M C M ILLI A N , J u dg e.

Th i s i s t h e s e c o n d a p p e al ari s i n g fro m p ro t ract ed l it i gat i o n fi l ed i n m u l t i p l e

co u rt s b y ap p el l an t s NKN En t erp ri s es , LLC ( “ N KN”) an d Barb ara Bi l l i n g s l ey

(“ Bi l l i n g s l ey ,” co l l ect i v el y “ ap p el l an t s ”) i n an at t em p t t o fo res t al l Bran ch B a n k i n g

an d Tru s t Co m

p an y (“ BB&T”) fro m fo recl os i n g o n cert ai n real p ro p ert y p l ed g ed as

s ecu ri t y fo r s ev eral l o an s BB&T ex t en d ed t o NKN in 2 0 0 7 an d 2 0 0 8

. 1 As m o re fu l l y

s et fo rt h b el o w, w e n o w affi rm t h e t ri al co u rt ’ s g ran t o f ap p el l ees ’ m o t i o n fo r

1 Ap p el l an t s al s o n am e d Q u i rk an d Qu irk

, LLC (“ Qu i rk ”), t h e l aw fi rm t h at

rep res en t ed BB&T i n i t s fo recl o s u re e f f o r t s , as a d efen d an t i n t h ei r m o s t recen t

co m p l ai n t . Qu i rk an d BB&T wi l l b e referred t o co l l ect i v el y as “ ap pel l ees .”ju d g m en t o n t h e p l ead in g s i n t hi s m o s t recen t at t em p t t o t h wart BB&T’ s fo recl o s u re

effo rt s

.

It i s wel l s et t l ed th at

, (o )n m o t i o n fo r ju d g m en t o n t h e p l e ad i n g s , we

t reat al l wel l -p l ed m at eri al al l eg at i o n s by t h e n o n m o v an t as t ru e an d al l

d en i al s b y t h e m o v an t as fal s e. Al t h o u g h s u ch m o t i o n i s , b y d efi n i t i o n , l i m i t ed to th e p lead in gs , a t ri al co u rt m ay al s o co n s i d er ex h ib i ts t hat

h av e b een i n co rp orat ed i n t o t h e p l ead i ng s

. If, i n rev iewi ng t hes e

d o cu m en t s , t h ere i s a co m p l et e fai l u re b y t he p l ai n t iff t o s t at e a cau se o f

act i o n , t h en t h e d efen d an t i s en t i tl ed t o ju d g m en t as a m at t er o f law.

. .

. Pr i n i t s v. Ba n ker

s Li f e In s

. Co

. , 2 5 6 Ga. Ap p

. 2 6 6

, 2 66 (5 6 8 SE2 d 8 5 )
(2 0 0 2 ).

Ea r ly v. Mi

Med x Gr o u p
, In c., 33 0 G a. Ap p

. 65 2

, 6 5 4 (7 68 SE2 d 82 3 ) (2 0 1 5 ). Tr o p,

In c. v. Ci t y o f Br o okh a ven , 2 9 6 Ga. 8 5 , 8 9 (2 ) (7 6 4 SE2 d 3 9 8 ) (2 0 1 4 ).

Th e reco rd

, i n cl u di n g t h e ap p el l at e reco rd fro m a p ri o r ap pea l fro m s i m i l ar

p ro ceed in g s fi l ed i n a di fferen t co u n t y 2 an d t h e v eri fi ed p l ea d i n g s 3 an d ex h i b i t s

i n co rp o rat ed t h erei n fi l ed i n th i s act i o n , s h o w t h at BB&T fi rs t in i t i at ed fo recl o s u re

p ro ceed in g s i n Au g u st 2 0 11

. Th e fo recl o s u re w as s ch ed u l ed fo r O ct o b er 4

, 2 0 1 1

, b ut

2 Th at cas e was fi l ed i n Fu l t o n Co u n t y an d t h at ap p e a l was d ock et ed i n t h i s Co u rt as Cas e Nu m

b er A1 4 A1 7 0 0

.

3 A p p el l ees at t ach ed t he ex hi b i t s to t hei r c o un t ercl ai m , wh i ch t h ey v eri fi ed

p ri o r t o t h e t ri al co urt i s su i ng i t s ru l i n g

.

2o n Oct o b er 3

, 2 0 11

, NKN i n s t i t u t ed b an k ru p t cy p ro ceed i n g s

. Th e b an k ru p t cy

p ro ceed in g s were d i s m i s s ed o n Au g u st 2 4

, 2 0 12

, b u t NKN fi l ed a s eco n d b an k ru p t cy

p et i t i o n on Au gu s t 3 1

, 2 0 1 2

. Th o s e b an k ru pt cy p ro ceed i n g s were d i s m is s ed i n M arch

2 0 1 3

.

On Au g us t 2 7, 2 0 1 3

, BB&T ag ai n in i t i at ed f o r ecl o s u re p ro ceed i n g s an d t h e

s al e o f t h e p ro p ert y was sch ed u l ed fo r Oct o ber 1

, 2 0 13

. Ho w ev er, o n Au g u s t 3 0,

2 0 1 3

, ap pel l an ts fi l ed a co m p lai n t fo r d am ag es an d i n

ju n ct i v e rel i ef ag ai ns t ap p el l ees

i n t h e Su p eri o r Co u rt o f Fu l t o n Co u n ty (“ Fu lt o n Co u nt y Act io n ”) as s ert in g , i n t er al i a,

cl ai m s fo r wro ng fu l fo recl o s u re, b reach o f co n tract

, b reach o f t he d u t y o f g o o d fai th

an d fai r d eal i n g, an d i n v as i o n o f p ri v acy

. BB&T can cel ed t h e s ch ed u l ed fo recl o s u re

an d fi l ed an an s wer an d co u nt ercl ai m , as wel l as d is co v ery req u es ts

. A p p el lan t s fai l ed

t o res p o n d t o ap p el l ees ’ d i s co v ery r eq u es t s , s ub m i t a s t at u s rep o rt

, o r at ten d a cas e

m an ag em en t co n feren ce, an d o n J an u a r y 6

, 2 0 14

, t h e Fu l t o n Co un t y t ri al co u rt

en t ered an o rd er d i sm i s s i ng ap p el l an t s’ co m p l ai n t fo r wan t o f p ro s ecu t io n

.

Ap p el l an t s fi l ed a n o t i ce o f ap p eal to t hi s Co urt fro m t h e t ri al co u rt ’ s o rd er o n

J an u ary 1 3

, 2 0 1 4, an d t h e c a s e w a s d o ck et ed i n th is Co u rt o n M ay 1 5

, 2 0 1 4.

Ap p el l an t s fai led to fi l e a b ri ef o n ap p eal

, an d ap p el lees fi l ed a m o t i o n to di s m i s s o n

3J u n e 1 9

, 2 0 1 4

. On J u n e 19

, 20 1 4

, ap p el l an ts fi l ed a m o t io n t o wi t h d raw t h ei r ap p eal

,

wh i ch t h i s Co u rt g ran t ed b y o rd er d at ed J u n e 2 3, 2 0 1 4

.

Aft er t h e ap p e a l w a s wi t h d rawn , BB&T ag ai n i n s t i t u t ed fo recl o s u re

p ro ceed in g s o n th e s u b

ject p ro p ert i es , wi th th e s al e n o t i ced fo r Oct ob er 7

, 2 0 1 4

. Fo u r

d ay s b efo re th e s ch e d u l e d f o recl o s u re, o n Oct o b er 3

, 2 0 1 4

, ap p el l an ts fi l ed t h e

p res en t laws u it in t h e Su p eri o r Co u rt o f DeKal b Co u n t y , reas s ert i n g v erb at i m m an y

o f t h e s am e cl ai m s m ad e i n t h e Fu l t o n Co u n t y l aws u i t an d ad d i n g ad di t i o n al cl ai m s ,

i n cl u d i n g cl ai m s fo r t res p as s an d m al i ci ou s ev i ct i on

. Ap p el l ees fi l ed an an s wer an d

co u nt ercl ai m o n No v em

ber 3

, 2 0 1 4

, a n d m o v ed fo r ju dg m en t o n t h e p l ead i n g s

.

Fo l l o wi ng a heari n g , t he t ri al co u rt en t ered an ex t en s i v e o rd er g ran t i n g ap p el l ees ’

m o ti o n , b as ed , i n t er al ia, o n s p eci fi c fi n d i n gs t hat BB&T h ad t h e ri g h t t o fo recl o s e,

t h e fo recl o su re was p ro p erl y n o t i ced an d ad vert i s ed

, an d t h at BB&T h ad th e ri g h t to

m ak e reas o n ab l e en t ri es u p o n t h e p ro pert i es u n d er t he s ecu ri t y d eed s at i s s u e an d a

wri t o f i m m ed iat e acces s i s s u ed b y t h e Su p eri or Co u rt o f Fu lt o n Co un t y

. Ap p el l an t s

fi led a n ot i ce o f ap p eal fro m t he t ri al co u rt ’ s o rd er o n Jan u ary 2

, 2 0 15

, an d t h e p res en t

ap p eal was d o ck et ed i n t h i s Co u rt o n Ap ri l 6

, 2 0 1 5

.

Tel l i n g ly

, ap pel l an ts ’ b ri ef o n ap p eal co ns i s t s p ri m ari l y o f a ro t e reci t at i o n o f

cas es s et t i n g o u t t he s t an d ard u n d er wh i ch a m o ti o n fo r ju d g m en t o n t h e p lead i n g s i s

4d eci d ed

, p art i cu l arl y t h at t h e al l eg at i o n s o f t he n o n -m o v i n g p art y m u s t b e t ak en as

t ru e an d th e al l eg at i o n s o f t h e m o v i n g p art y as fal s e. See S h er ma n v. Fu l t o n Co u n t

y

Bo a rd o f As s es s o r

s , 2 8 8 Ga. 8 8

, 9 0 (7 0 1 SE2 d 4 7 2 ) (2 0 1 0 ) (i n d eci d i ng m o t i o n fo r

ju d g m en t o n t he p lead i n gs , “ al l al l eg at i o n s of th e m o v in g p art y w h i c h hav e b een

d en ied are t ak en as fal s e”) (ci t at i o n an d p un ct u at io n om i t t ed ). Ho wev er, t h es e

as s ert i o n s i g n o re t he eq u al l y wel l-fo u n d ed p ro po s it i o n th at t h e t ri al co u rt i s n ot

req u i red t o accep t o r ad o p t a p art y ’ s l eg al co ncl u s io n s , n o m at t er ho w “ wel l -p l ed ” t h e

fact s. T r o p , 2 9 6 Ga. at 8 7 (1 ) (t ri al co u rt “ i s no t req u i red t o accep t t h e l eg al

co n c l u s io n s t h e no n -p art y s u g g es t s t h at [h i s fact ual al leg at i on s ] di ct at e”).

Acco rd in g ly , ev en accep t i n g ap p el l an t s ’ fact s as t ru e, we are n o t req u i red t o accep t

ap p el l an t s ’ erro n eo u s co n cl u s i on s o f l aw b as ed on t h es e f a c t s

. M o reo v er, b as ed o n

o u r i n d ep en d en t rev i ew of t h e reco rd

, we fi n d n o erro r i n t h e t ri al co u rt ’ s g ran t o f t h e

m o ti o n fo r ju d g m en t o n t h e p l ead i ng s

.

Al t h ou g h ap p el l an t s m ak e a m o r e p art i cu l ari zed arg u m en t th at t h e co p ies o f t h e

ju d i ci al p ro ceed i n g s at t ach ed t o ap p el l ees ’ an s w er an d co u n t ercl ai m were u n cert i fi ed

an d t h u s co u l d n o t p ro p erl y b e co n si d ered as ev i d en ce b y t he t ri al co u rt i n ru l i n g o n

t h e m o t io n fo r ju d g m en t o n t h e p l ead i n gs , t here i s n o i nd i cat i o n in t h e r e c o r d,

i n cl u d i n g ap p el l an t s ’ res p on s e t o t h e m o t i o n fo r ju d g m en t o n th e p l ead in g s , t h at

5ap p el l an t s m ad e t h i s arg u m en t o r rai s ed t h i s o bjec t i o n t o t h e co n s id erat i o n o f

ap p el l ees ’ ex h i b i t s b el o w. 4 Ap p el l an t s “ can n o t fai l to o b j ect t o t h is d efect b efo re t h e

t ri al co u rt an d t h en rai s e i t n o w. By wai t i ng t o m ak e t h i s arg u m en t fo r t h e fi rs t t i m e

o n ap peal

, [ap p el l an t s h av e] wai v ed i t .” Tr o n it ec, In c. v. S h ea l y , 2 4 9 Ga. Ap p . 4 4 2,

4 4 7 (4 ) (5 4 7 SE2 d 7 4 9 ) (2 0 0 1 ), o v erru l ed i n p art o n o t h er g ro un d s i n W i ll i a m Gen

.

Co r p

. v. S t o n e , 2 7 9 Ga. 4 2 8 (6 1 4 SE2 d 75 8 ) (2 0 0 5), (ap pel l an t wai ved arg u m en t t h at

res ju di cat a d efen s e m

u s t b e b as ed o n cert i fi ed co p i es o f p ri o r p ro ceed i n g s b y fai l i n g

t o rai s e i t i n t h e t ri al co u rt ). See al so Jo n es v

. S t a t e , 3 0 8 Ga. Ap p

. 9 9, 1 01 (2 ) (7 0 6

SE2 d 59 3 ) (2 0 1 1 ) (“ t h e req u i rem en t t hat p r i o r co n v i ct i o n s b e p ro v ed b y cert i fi ed

co p ies t h ereo f i s real l y a n a p p l i cat i o n o f t h e “ b es t ev i d en ce ru l e[, wh i ch m ay b e

wai v ed ] ”) (ci t at io n an d p u n ct uat i o n o m i t t ed ). Bas ed on t h e fo reg o i n g , t h e tri al co urt ’ s

o rd er g ran t i n g ap p el l ees ’ m o t i o n fo r ju d gm en t o n t h e p l ead in g s i s affi rm ed

.

Ju d g men t a f f i r m ed . Ba r nes , P. J., a n d

Ra y, J., co n cu r

.

4 Th e ap p el l an t s d i d n o t rai s e t h i s is s u e i n t hei r res p o n se t o t h e m o t i o n fo r ju d g m en t o n t h e p l ead i n g s , wh i ch

, i n an y ev en t

, i s s i m i l ar t o th ei r bri ef on ap p eal in

t h at i t co n s i s t s p ri m ari l y o f b o i l erp l at e arg u m en t

. An d al th o u g h t h e t ri al co u rt ’ s o rd er reci tes t h at a h eari n g was h el d o n t h e m o t i o n , an d ap p el l an t s ack n o wl ed ge t h i s i n t h ei r b ri ef on ap p eal

, ap p el l an t s s p eci fi ed i n t h ei r n o t ice o f ap p eal th at n o t ran s cri p t s were
t o b e i n cl u d ed i n t h e ap p el l at e reco rd

.

6