FI RST DI VI SI ON

BA RNES, P. J.

, M C M I LLI A N and M ERCI ER, 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

Januar y 10, 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 58 7

. BLACK et al

. v

. NATIONSTAR M ORTGAGE LLC. et

al

.

B A R N E S , Pres i d i n g J ud g e.

Th e t ri al co u rt g ran t ed ap p el l ees ’

, Nat i o n st ar Mo rt g age L L C a nd F e de r a l Ho m e

Lo an M o rt g ag e Co rp o rat i o n

, m o t i on fo r s u m m ary j u d g m en t o n t h ei r co m p l ai n t fo r

d ecl arat ory ju d g m en t an d eq u i t ab l e refo rm at i o n

, i n wh i ch t h ey h ad s o ug h t t o rev ers e

a fo recl os u re, v oi d t he r e l a t e d d eed u n d er p o wer an d s p eci al warran t y deed

, an d

r ei n s t at e t h e m o d i fi ed s ecu ri t y d eed t o a fi rs t p ri o ri t y p o s i t i o n

. Th e ap p el l a n t s

, L e e

An g el Bl ack

, fo rm erl y k no wn as

, Lee An gel W hi t e, an d St acy M

. Bl ack ap p eal fro m

t h at o rd er. Fo l l o wi ng ou r rev i ew, an d di s c ern i ng no rev ers ib l e erro r, we affi rm t h e

t ri al co u rt ’ s ju d g m en t.

On M ay 2 3

, 2 0 07

, t h e ap p el l an t s o b tai n ed a l oan fro m Ad v an ced Fi n an c i al

Serv i ces

, I n c. (“ Ad v an ced ”) i n t h e am o u n t of $ 1 7 l ,0 0 0. On t h e s am e dat e, t h ey

ex ecu t ed an d d el iv ered a s ecu ri t y d eed co nv ey i n g cer t a i n p ro p ert y t o M o rt g ag eEl ect ro ni c Reg i s t rat i o n Sy s t em s

, In c. (“ M ERS”) as n o m i n ee fo r Ad v an ced t o s ecu re

rep ay m en t o f t he lo an

. Th e s u b ject p ro p ert y i s co m

m o n ly k n own as 3 28 4 Pri ce M i l l

Ro ad

, Bi sh o p, Geo rg i a 3 0 6 2 1

. Th e p ro p ert y co n s i st s o f two p arcel s : Parcel 0 4 A/ 3 2 8 4

(“ Parcel l ”), v al ued at $ 1 8 7,2 3 0

, an d Parcel 0 4 B (“ Par cel II”), v al u ed at $ 1 2 ,0 0 0.

Parcel 1 i s a fo u r-acre l ot wi t h a h o u s e, an d Parc e l II is an ad jacen t

, u n d ev el o p ed

o n e-acre l o t

.

Th e s ecu ri t y d eed was reco rd ed o n J u l y 2, 20 0 7, an d referen c e d t h at t h e

p ro p ert y co n v ey ed w as 3 2 8 4 Pri ce M i l l Ro ad

, b ut t h e l eg al d es cri pt i o n o f t h e p ro p ert y

at t ach ed t o t h e d eed o n l y referen ced Parce l I I

, t h e u nd ev el op ed o ne-acre l o t

. In

Decem b er o f 2 0 1 2

, M ERS, as s i g n ed t h e secu ri t y d eed t o Nat i o n s t ar. Ap p el l an t s an d

Nat i o n st ar ex ecu t ed a m o di fi cat i o n o f t h e secu ri t y d eed t o i n cl u d e b ot h Parcel I an d

Parcel II i n t he l eg al des cri p t i o n

, wh i ch was fi l ed wi t h t he cl erk o f s u p eri o r co u rt o n

M ay 1 5

, 2 0 1 3

. T h e m o d i fi cat i o n

, i n p ert i n en t part

, p ro v id ed

, t h at “ t h e l eg al

d es cri p t io n o f th e real p ro p ert y at t ach ed an i n co rp o rat ed i n th e Secu ri t y Deed at t h e

t i m e o f i t s ex ecu t i o n. . . d o es n ot d es cri b e t h e en ti re Fi v e Acre Tract as i n t en d ed b y

t h e [ap p el l an t s ] .” An d t hat :

b y ex ecu t in g an d d el i v eri n g t o [Nat io n s t ar ] t h is M o d i fi cat i o n

,

[ap p el l an t s ] wi s h t o es t ab l i s h

, s t at e, cl ari fy

, an d res t at e t h ei r in t en t i o n t o

2g ran t an d co n v ey t h e Fi v e Acre Tract t o [Nat i o n s t ar] as s ecu ri t y fo r th e

Lo an an d t o p ro v i d e t h at t h e Fi v e A cre T ract i s en cu m b ered b y

, m ad e

p art of, an d i n co rp o rat ed i n to t h e Secu ri t y Deed fo r al l p u rp o s es s et fo rt h

t h erei n

, as fu l l y as i f t h e d es c r i p t i o n o f t h e Fi v e Acre Tract were

at t ach ed t o th e Secu ri t y Deed as an d wh en t h e Secu ri t y Deed w as

ex ecu t ed b y [ap p el lan t s ]

, d el iv ered t o [M ERS]

, an d reco rd ed i n th e

. . .

real p ro p ert y

reco rd s

.

Ap p el l an ts s u bs eq u en tl y defau l t ed o n t h e l o an

, an d aft er t h ey fai l ed to

cu re t he defau l t p ay m en t s o n t h e l oan

, Nat io n s tar co n d u ct ed a n o n -ju d i ci al

fo recl o s ure s al e o f t he s u b je c t p ro p ert y o n No v em

ber 5

, 20 1 3

, an d pu rch as ed t h e

p ro p ert y fo r $ 1 0 0 ,0 0 0

. Ho wev er, t h e fo recl os u re no t i ce d es cri b ed o n l y Parcel II o f t h e

p ro p ert y

. On No v em

b er 5

, 2 0 1 3

, Nat i o n st ar, as at t o rn ey -i n-fact o f ap p el l an t s

,

p rep ared

, ex ecu t ed

, an d d el i v ered a “ D e e d U n d er Po wer” t o Nat i o n s t ar. T h e Deed

Un d er Po wer sp eci f

i c a l l y cro s s -i n d ex ed to t h e s ecu ri t y d eed an d was reco rd ed o n

Decem b er 5

, 2 0 13

. Nat i o n s t ar al so p rep a r e d a “ Sp eci al W arran t y Deed ” T h e l eg al

d es cri p t io n o f t h e s u bject p ro p ert y s et fo rt h i n b ot h t h e De e d U n d e r P o wer an d t h e

Sp eci al W arran t y Deed referred o n l y t o Parcel II rat h er th an t h e en t i ret y o f t h e

p ro p ert y

. Nei t h er N at io n s t ar no r Fed eral Ho m e rep o rt ed t h e s al e wi t h in th i rt y d ay s o f

3t h e fo recl o s u re sal e t o t h e s u peri o r co urt fo r co n fi rm at i o n an d ap pro v al p u rs u an t t o

OCGA § 4 4 -1 4 -1 6 1 (a). 1

Th ereaft er, on Sep t e m

b er 4

, 2 0 1 5

, th e ap p el l ees fi led a Co m p l ai n t Fo r

Decl arat o ry J u d g m en t an d E q u i t ab l e Refo rm at i o n s eek i n g t o (1 ) rev ers e t h e

fo recl o s ure

, ( 2 ) v o id th e Deed Un d er Po w er an d Sp eci al W arran t y Deed

, an d (3 )

rei n s tat e t h e m o d i fi ed s ecu ri t y d eed t o t h e f i r s t pri o ri ty p o s it io n t h at it o ccu p i ed

b efo re t h e fo recl o s u re.

Fo l l owi n g cro s s m otions f or sum m ary ju d g m en t

, t h e t ri al co u rt en t ered an o rd er

g ran t i n g ap p el l ees ’ m o t i o n an d d en y i n g ap p el l an ts ’ m ot i o n , fi n d i n g t h at :

1 W h en an y real es tat e i s s o l d on fo recl o s u re, wi t h o u t l eg al

p ro ces s

, a n d u n d er p owers co nt ai n ed i n s ecu ri t y d eed s

,

m o rt g ag es

, o r o t h er l i e n c o n t r a ct s an d at t h e s al e t h e real

es t at e d o es n ot b ri n g t h e am o u n t o f t h e d eb t s ecu red b y th e

d eed

, m o rt gag e, o r co n tract

, no act io n m ay b e t ak en t o

o bt ai n a d efi ci en cy ju d g m en t u n l es s t he p ers o n i n s t i t u t i n g

t h e fo recl o s u re pro ceed i n g s s h al l

, wi t h i n 30 d ay s aft er th e

s al e, rep o rt t h e s al e t o t h e ju d ge o f t h e su p eri o r co u rt o f th e

co u n t y i n w h i c h t h e l an d i s lo cat ed fo r co n fi rm at i o n an d

ap p ro v al an d s h al l o b t ai n an o r d e r o f co n fi rm at i o n an d

ap p ro v al t h ereo n

.

OCGA § 4 4 -1 4 -1 6 1 (a).

4[ap p el l ees ] i n t en d ed t o t ak e a s ecu ri t y i n t eres t i n t h e en t i ret y o f th e

p ro p ert y co m

p ri s ed o f b o t h Parcel I an d Parcel II. In d eed

, aft er

d i s co v eri ng t he m is t ak en l eg al des cri p t i o n i n t h e o ri g i n al Secu ri t y Deed

,

Pl ai n t i ff Nat i o n s t ar an d b o t h Defen d an t s ex ecu t ed t h e M o d i fi cat i o n t o

am en d t h e d es cri p t i o n t o i n cl u d e b o t h Parcel s

, as i n t en d ed b y t he p art i es

.

On l y aft er fo recl o s u re d id [ap p el l ees ] real i ze t h at t h e m i st ak en pro p ert y

d es cri p ti o n h ad carri ed o v er t o t h e Deed Un d er Po wer a n d t h e Sp eci al

W arran t y Deed

. T h e ev i d en ce co n cl u s i v el y es t ab l i s h es a m u t u al m i s tak e

rel i ev ab l e i n eq u i t y

. ... OCGA § 23 -2 -2 1 (a). Th e ev i d en ce fu rt h er sh o ws

t h at o m i s s i o n o f Parcel II fro m t h e d es cri p t i o n in th e Deed Un d er Po wer

an d t h e Sp eci al W arran t y Deed was co n t rary t o t h e p art i es ’ i n ten t i o n

.

Th e t ri al co u rt fu rt h er fo u nd t hat ap p el l an t s h ad n o t d em on s t rat ed t hat t h ey wo u l d b e

p reju d i ced b y t h e refo rm at i o n o f t h e s ecu ri t y d eed

, an d th at t h e refo rm a t i o n rel at ed

b ack t o d at e o f t h e s ecu ri t y ’ s d eed ex ecu t i o n an d t h u s t h e d eed was rei n s t at ed t o fi rs t

p ri o ri t y l ien p o s it i o n

.

Su m m ary ju d g m en t i s p ro p er i f t h e p l ead i n gs an d ev i d en ce “ s ho w th at t h ere i s

n o gen u i n e i s s u e as to an y m at eri al fact an d t h at t h e m o v i n g p a r t y i s en t i t l ed t o a

j u d g m e n t a s 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

s u m m ary ju d g m en t

, we “ co n d u ct a d e no v o rev i e w, co n s t ru i n g al l reas o n ab l e

i n feren ces i n t he l i g h t m o s t fav o rab le t o t h e n o n m o v i ng p art y .” Ba n k o f No r t h Ga

. v.

W i n der m er e Dev. , 3 1 6 Ga. Ap p. 3 3 , 3 4 (7 2 8 SE2 d 7 14 ) (2 0 1 2).

5Ap p el l an t s co n t en d o n ap p eal t h at t h e ap p el l ees were n ot en t i t l ed t o eq u i t ab l e

refo rm at i o n an d t h u s t h e tri al co u rt erred i n i t s g ran t o f s um m ary ju d g m en t

. W e d o n ot

ag ree.

Eq u i t y m ay i nt erv en e an d refo rm a co n v ey an ce wh e n th e

i n s t ru m en t fai ls t o ex p res s accu rat el y t h e i n t en t i on o f t h e p art i es

. A

p et i t i o n fo r refo rm at i o n o f a wri tt en co n t ract wi l l l i e wh ere b y m i s tak e

o f t h e s cri v en er an d b y o v ers i g h t o f t h e p art i e s

, t h e w ri t in g d oes n o t

em b o dy o r fu ll y ex p res s t h e real co n t ract o f t h e p art i es

. Th e cau s e o f th e

d efect i s i m

m at eri al s o l o n g as t h e m i s t ak e i s co m m on t o b o t h p art ies t o

t h e t ran s act i o n

. An d t h e n eg l i g en ce o f t h e co m p lai n i n g p art y w i l l n o t

d efeat hi s ri g h t t o refo rm at i o n i f th e o th er p art y h as n o t b een p reju di ced

.

(Fo o tn o tes an d p u n ct u at i o n om i t t ed .) Cu rr y v. Cu r r y

, 2 67 Ga. 66

, 67 (1 ) (4 7 3 SE2 d

7 6 0 ) (1 9 9 6 ).

(a) In t wo rel at ed en u m erat i o n s o f ap p eal

, ap p el lan t s co n t en d t hat refo rm at i o n

was n o t pro p er becau s e t h e ap p el l ees had act u al an d / o r co n s t ru ct i v e no t i ce o f t h e

d efect s i n t h e t i t l e i n s t ru m en t s

, an d co u l d h av e d i s co v ered t he defect s i n t h e t i t l e

i n s t ru m en t s b y reas o n ab l e d ue d i l i g en ce. A p p el l an t s as sert t h at it is p res u m ed t h at t h e

p u rch as er o f p ro pert y h as ex am i n ed ev ery d eed an d i ns t ru m en t affect i n g t h e t i t l e, an d

i s ch arg ed wi t h n o t i ce of t h e fact s s h o wn i n t h e reco rd s

. Th ey m ai nt ai n t h at ap p el l ees

h ad act u al o r co n s t ru ct i v e n o t i ce o f t h e d efect s i n t h e t i t l e i n s t ru m e n t s a n d t h e

6fo recl o s ure s al e n o ti ce becau s e t h ey “ u ni l a t er a l l y p rep ared

, ex ecu t ed

, an d / o r

d el i v ered ” t h e d o cu m en t s

. T h u s

, an y erro rs i n t h e l eg al d e s c r i p t i o n s were ei t h er an

i n t en t i o n al act o r u n i lat eral m is t ak e o n t h e b eh al f o f t h e ap p el l ees

.

OCGA § 2 3 -2 -2 5 p ro v i d es t h at “ [i ] f t h e fo rm o f co n v ey an ce i s

, b y acci d en t o r

m i s t ak e, co n t rary to t h e i n ten t i o n o f t h e part i es i n t h ei r co n t ract

, eq u i t y s h al l i n t erfere

t o m ak e i t co n fo rm t h eret o .” See Ba n k o f Amer i ca v. Cu n eo

, 3 3 2 G a. Ap p

, 7 3

, 7 9 (2 )

(7 7 0 SE2 d 4 8 ) ( 2 0 1 5 ) (“ Th e i s s u e i s wh et h er t h e p art i es m u t ual l y i nt en d ed fo r t h e

[b ] an k t o l en d m o n ey an d fo r t h e l o an t o b e s ecu red b y t h e p ro pert y [.] ” ); Ch ea t h a m

v. Pa l mer , 1 9 1 Ga. 6 1 7

, 6 2 5 (a) (1 3 SE2 d 67 4 ) (1 9 4 1) (“ In ev ery pro p er cas e u n d er

t h i s h ead o f t h e l aw, t h e o n l y i n q u i ry i s

, d o es t h e in s t ru m en t co nt ai n wh at t h e p art i es

i n t en d ed i t s h o ul d an d u n d ers t o o d t h at i t d i d ? Is i t t h ei r ag reem en t ? If n o t

, th en i t m ay

b e refo rm ed b y al i un d e p ro o f, s o as t o m ak e i t t h e ev i d en ce o f w h a t w a s t h e t ru e

b arg ai n b et ween t h e p art i es .”). Ho w ev er, “ [a] d i st i nct i on ex i s t s b et ween refo rm i n g

a co n t ract an d ex ecu t i n g a co n t ract i n cas e o f m i s t ak e. To au t h ori ze t h e fo rm er, t h e

co u rt s h al l be s at i s fi ed b y t h e ev i d en ce t h at t h e m i s t ak e was m u t u al ; bu t t h e co u rt m ay

refu se t o a c t i n t h e lat t er cas e i f t h e m i s t ak e i s co n fi ned t o t h e p art y refu s i n g to

ex ecu t e.” OCGA § 2 3-2 -3 0

. To t h at en d, “ [t ] h e po wer t o rel i ev e m i s tak es s h al l b e

7ex erci s ed wi t h c a u t i o n ; t o ju s ti fy it

, t h e ev i d en ce s h al l b e cl ear, u n eq u i v o cal

, an d

d eci s i v e as t o t h e m i s t ak e.” OCGA § 2 3-2 -2 1 (c).

Pr e t e rm i t ti n g wh et her, as t h e ap p el l an t s co n t en d

, t h e ap p el l ees h ad n o t i ce o f

t h e m i s t ak e i n t h e t i t le i n st ru m en t , we co n cl u d e t h at t h e ev id en ce d em o n s t rat es t h at

t h e p art i es h ad earl i er at t em p t ed t o m o d i fy th e s ecu ri t y d eed t o in cl u d e bo t h p arcel s

i n t h e l eg al d es cri pt i o n at t ach ed t o t h e s ecu ri t y d eed an d

, p er t h e s t at ed p u rp o s e o f t h e

m o di fi cat i o n

, t o “ es tab l i s h

, st at e

, c la r if y

, an d res t at e [t h e ap p el l an ts ] i n t en t io n t o g ran t

an d co n v ey ” bo t h p arcel s as s ecu ri t y fo r t he l o an

. OCGA § 2 3-2 -2 5 al l o w s a co u rt o f

eq u it y t o refo rm a co n v ey an ce, i f t h e co n v ey an ce i s

, b y acci d en t or m i s t ak e, “ co n t rary

t o t h e i n t en t i o n o f t h e p art ies i n t h ei r co n t ract .” In t h i s cas e, i t i s cl ear th at th e p art i es

i n t en d ed t h at b ot h p arcel s be co n vey ed i n t he s ecu ri t y d eed

, an d al t h o u g h t h e

m i s t ak en p ro p ert y d es cri p t io n l at er carri ed o v er t o th e d eed u n d e r p o w e r a n d t h e

s p eci al warran t y d eed

, t h is d o es n o t co n t rav en e t h e o ri g i n al i nt en t ev i n ced b y t h e

at t em p t ed jo i n t m o di fi cat i o n t h at b o t h p arcel s b e en u cu m bered by t h e s ecu ri t y d eed

.

M o reo ver, co nt rary t o t h e ap p el l an t s’ co n t en ti o n t h at t h e m i st ak e w a s

u n i l at eral

, t h e ev i den ce d em o n st rat es t hat t h e p art ies were m u t u al l y m i s t ak en t h at t h e

s ecu ri t y d eed i n cl ud ed b o t h p arcel s o f l an d

.

8A m u t u al m i s t ak e in an act i o n fo r refo rm at i o n m ean s o n e in wh ich

b o t h p a r t i e s had ag reed o n t h e t erm s o f t h e co nt ract

, b u t b y m i s t ak e

. .

. t h e t ru e term s o f t h e ag reem en t were n o t s et fo rt h

. In o t h er wo rd s

, i t i s

t h e p art i es t o t h e o ri g i n al i n s t ru m en t t h at m u s t b e m ut u al l y m i s t ak en fo r

refo rm at i o n t o o ccu r. An d h ere, [t h e ap p el lan t s] p res en ted

u n co n t ro v ert e d e v i den ce t h at t h e m i s t ak e was m u t u al as to [t h em ] an d

[t he ap p el l ees ]

.

(Ci t at i o n an d p u n ct u at i o n o m i t t ed .) Ki m v. Fi r s t In t er co n t i n en ta l Ba n k

, 3 2 6 Ga. Ap p.

4 2 4 , 4 2 8 (2 ) (a) (7 5 6 SE2 d 6 55 ) (2 0 1 4 ).

As d em on s trat ed by t h e ev i d en c e

, t h e p art i es i n t en ded t h at b ot h p arcel s b e

en cu m b ered b y t h e s ecu ri t y d eed

, an d at t em p t ed to co rrect t h e m is t ak e b y way o f t h e

m o di fi cat i o n , an d “ t h e n eg l i g en ce o f t h e p art y co m p l ai n i ng wi l l n o t d efeat h i s ri g ht

t o refo rm at i o n

, if t h e o t her p art y h as n o t b een p reju d i ced t h ereb y .” Aa mes Fu n d i n g

Co r p

. v. Hen der

so n

, 27 5 Ga. Ap p

. 3 2 3

, 3 24 (6 2 0 SE2 d 5 0 3 ) (2 00 5 ). T h e ap p el l an t s

d o n o t d em o ns t rat e h o w t hey wo u l d b e p reju d i ced b y t h e refo rm at i on

, w h i ch wo u ld

o n l y act t o p l ace t h e p art i es i n t h e s am e p o s it i on t h ey o ccu p i ed b efo re t h e fo recl o s u re.

(b ) Ap p el lan t s fu rt h er as s er t t h a t t h e ap p el l ees are at t em p ti n g an eq u i t ab l e

refo rm at i o n as an al t ern at i v e m ean s t o o b t ai n a d efi ci en cy ju d g m en t an d ci rcu m v en t

t h e st at u t o ry rep o rt i n g req ui rem en t s o f OCGA § 4 4 -1 4 -1 6 1 (a) b ecau s e t hey d i d n ot

re p o rt t he s al e to t h e s u p eri o r co u rt wi t h in 3 0 d ay s

. In t h is cas e, h o wev er, t h e

9ap p el l ees were n o t seek i n g a d efi ci en cy ju dg m en t an d “ as t o wh at ap p el lan t [s ] fear[]

m ay ari s e at a fu t u re d at e, w e h av e n o au t h o ri t y t o ren d er an ad v i s o ry o p i n i o n.”

(Ci t at i o n s an d p un ct u at i o n o m i t t ed .) Da n i el s v. Pr i ce Co mmu n i ca t i o n s W ir el es s

, 2 5 4

Ga. Ap p

. 5 59

, 56 1 (1 ) (5 6 2 SE2 d 8 4 4) (2 0 0 2 ). Th u s

, t h i s cl ai m p res en t s n o th i n g fo r

o u r rev i ew.

Acco rd i ng l y

, t h e t r i a l co u rt d i d n o t err i n g ran t in g t h e ap p el l ees ’ m o t i o n fo r

s u m m ary ju d g m en t o n t hei r co m p l ai n t fo r d ecl arat ory ju d g m en t an d eq u i t ab l e

refo rm at i o n

.

Ju d g men t a f f i r m ed . McMi l l i a n a n d

Mer ci er , JJ., co n cu r

.

10