FI LED U. S . COURT OF AP PE ALS E L E V E N T H C IR C U IT June 27, 2007 T HOM AS K. KAHN CL E RK [ DO NO T P UB L I S H] I N THE UN I TE D STATE S C OU RT OF APPE ALS F O R T H E E L E V E N T H C IR C U IT

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________________________ D . C . D ocketN o. 04 -000 79 -C V -3 G E N E V A L . W A T K I N S , P la in tif f - A p p e lla n t, v ersu s F A R M E R S & M E R C H A N T S B A N K , L a u r e n s C o u n ty , GA , W A L L A C E E . M I L L E R , C A P I T A L C I T Y B A N K , D e f e n d a n ts - A p p e lle e s .

________________________ A pp ea l fr om the U ni t ed S t at es D i stri ctC ou rt f o rth e S o u th e rn D is tr ic t o f G e o r g ia

_________________________ ( Ju n e 27, 2007) B efo re A N D E R S O N , B L A C K , an d M A R C U S , C i rcu i tJu d g es. P E R C U R I A M:2

G eneva L . W atki ns, proceedi ng w i tho utan att orney, appeal s the di stri ct court ’ s gra ntof sum m ary j ud gm entt o F arm er s & M er chant s B ank (“ F M B ”) , W a l l a c e E . M i l l e r( a n of f i c e rof F M B ) , a nd C api t a l C i ty B a nk ( a s uc c e s s or c orpor a t i on t o F M B ) on he rdi ve r s i ty a c t i on c ha l l e ngi ng the f or e c l os ur e of

15. 34 a c r e s o f la n d s h e p le d g e d in s e c u r ity a s g u a r a n to ro f m u ltip le lo a n s . O n ap p e a l, W a tki ns a r gue s tha tthe di s tr i c tc our ts houl d notha ve gr a nt e d s um m a ry j udgm e nt t o the de f

e nda nt s be c a us e ( 1) the di s tr i c tc our ti gnor e d the pl a i n m e a ni ng of the unde r l y i ng pr om i s s ory not e s a nd r e l i e d on i na dm i s s i bl e pa r ol e vi de nc e i n f i ndi ng tha tthe not e s c a l l e d f

orm onthl y i ns t a l l m e ntpa y m e nt s r a the rtha n a s i ngl e ba l l oon p aym en tatm atu ri ty, an d (2 ) F M B , aft er accep t i n g l at e an d i rreg u l ar p aym en t s, f a i l e d t o gi ve the r e a s ona bl e not i c e G e or gi a l a w r e qui r e s be f or e r e tur ni ng t o the e x a c t te r m s o f

th e n o te s . W a tk in s a ls o a r g u e s th a t th e d is tr ic t c o u r t e rr e d in r e f u s i n g a s u n t i me l y h e rmo t i o n f o rl e a v e t o a me n d h e rc o mp l a i n t . W e a f f i r m. W e c on du cta de nov o revi ew of a di stri ctcourt ’ s ordergrant i ng sum m ary j u d g m e n t , “ ap p l y i n g th e s a m e l e g a l s t a n d a r d s a s th e d i s tr i c tc o u r t . ” C h ap m a n v . AI T ra nsp. , 22 9 F . 3d 10 12 , 10 23 (11t h C i r. 20 00 ) ( en banc). T he di stri ctcourt prop er l y f

ol l ow ed G eorgi a l aw i n con strui ng the t erm s of the no t es . U nd er G e o r g ia la w , u n a m b ig u o u s c o n tr a c ts a r e in te rp r e te d a c c o r d in g to th e irp la in m e a ni ng, B e gne rv. U ni t e d S t a t e s , 428 F . 3d 889, 1005 ( 11th C i r . 2005) , a nd3

w i tho utre fe re nce t o p ar ol evi dence thatm ay “ add t o, t ake f rom , or vary [the] w r i tt e n c ontr a c t . ” M a c on- B i bb C ounty I ndus . A uth. v. N or d B i tum i , U . S . , I nc . , 77 F . 3d 41 7, 41 9 n . 2 (11 th C i r. 19 96 ). T he prom i ss ory not es atthe ce nt erof thi s di sput e r equi re d 5 9 equ al pa y m e nt s a nd a f

i na l , l a r ge rpa y m e ntw he n the not e s m a tur e d a tthe e nd of f i ve y e a r s . T he f

i r s tpa y m e nta nd the l a s tpa y m e ntw e r e due on the s a m e da y of the m on th. B oth n ot es w er e e nt i t l ed “ C on sum erInst al l m entN ot e. ” T he di stri ct c orr e c t l y c onc l ude d tha tthe s e t e r m s c r e a t e d i ns t a l l m e ntc ontr a c t s c a l l i ng f or m on thl y pay m ent s w i th a fi nal bal l oo n p ay m entatthe end. W atki ns’ s c on tra ry r e a di ng de r i ve s s ol e l y f r om the l oa n of

f i c e r ’ s f a i l ur e t o s pe c i f

y the da y of

the m on th eac h i nst al l m entw as du e. B utbecause the i nstrum ent s l i st ed the sa m e day o f th e m o n th a s th e d u e d a te f o rth e f ir s t a n d la s t p a y m e n ts , th e o n ly r e a s o n a b le concl usi on i s thatthe i nt er i m m on thl y pay m ent s w er e due on the sa m e day . T here i s si m p l y n o m eri tt o W atk i n s’ s arg u m en tth atth e o n l y d u e d at es w ere th e n o t es’ m aturi ty dat es , and t hu s hercont ent i on thatthe l oans w er e noti n d ef aul tw hen F M B f or e c l os e d on he rpr ope r ty m us tf a i l . W e a l s o r e

j e c tthe c ont e nt i on tha tthe di s tr i c tc our tr e l i e d on pa r ol e vi de nc e t o c ons true the not e s . T he a f f i da vi t s a nd bank s docum ent s W atki ns ci t es as parol w er e use d o nl y t o sho w thatdefaul thad occurre d— i . e. , thatthe debt or had fai l ed t o m ake the re qu i re d p ay m ent s on eac h4

n o te in J u ly 2 0 0 0

— n o t w h a t th e in s tru m e n ts m e a n t. Wa tk i n s s e c o n d a r g u m e n ta g a i n s ts u m m a ry j u d g m e n ti s th a t , b e c a u s e F MB ha d a c c e pt e d l a t e pa y m e nt s i n the pa s t , s he w a s e nt i t l e d t o r e a s ona bl e not i c e f r om F M B o f its in te n tio n to r e tu rn to th e s tr ic t te r m s o f th e n o te s b e f

o r e th e b a n k c o u ld fore cl ose on h erprop erty. S he ci t es the G eorgi a S up re m e C ou rt ’ s dec i si on i n C url v. F ed. S av. & L oan A ss ’ n o f G ai nesvi l l e, 24 1 G a. 29 , 24 4 S . E . 2d 81 2 (G a. 19 78 ), f ors uppor t . W e r e f

us e t o c ons i de rhe ra r gum e nttha tF M B ’ s c onduc te s t a bl i s he d a

“ qua s i ne w a gr e e m e nt . ” S e e i d. a t30, 244 S . E . 2d a t813. W a tki ns di d notr a i s e the a r gum e nti n the di s tr i c tc our t , w he r e s he w a s r e pr e s e nt e d by c ouns e l , a nd s o s he ha s w a i ve d i ton appe a l . S e e A c c e s s N ow , I nc . v. S outhw e s tA i r l i ne s C o. , 385 F . 3d 1324, 1331 ( 11th C i r . 2004) ( “ T hi s C our tha s r e pe a t e dl y he l d tha ta n i s s ue not r a i s e d i n the di s tr i c tc our ta nd r a i s e d f orthe f i r s tt i m e i n a n appe a l w i l l notbe c ons i de r e d by thi s c our t . ” ) . W e the r e f or e a f f i r m the di s tr i c tc our t ’ s gr a ntof su m m ary j u d g m en tt o th e d efen d an t s. W e a ls o f

in d th a t th e d is tr ic t c o u r t d id n o t ab u s e its d is c r e tio n b y r e f u s in g to perm i tW atki ns t o am end h ercom pl ai nt . A ft erre spon si ve pl ea di ng s have been s e r ve d, “ a pa r ty m a y a m e nd the pa r ty ’ s pl e a di ng onl y by l e a ve of c our torby w r i tt e n c ons e ntof

the a dve r s e pa r ty . ” F e d. R . C i v. P . 15( a ) . L e a ve of c our t“ s ha l l be freel y g i v en w h en j u st i ce so req u i res. ” Id . H o w ev er, a d i stri ctco u rtm ay d en y a5

m ot i on t o a m e nd on num e r ous gr ounds , i nc l udi ng undue pr e j udi c e t o the de f

e nda nt orthe t a r di ne s s of

the m ot i on. C a rruthe r s v. B S A A dve r t i s i ng, I nc . , 357 F . 3d 12 13 , 12 18 (11t h C i r. 20 04 ). In thi s c as e, W atki ns m ov ed for l ea ve m on ths af t er the Ja nu ary 2, 20 05 deadl i ne for a m endm ent s. A l tho ug h the courtl at ergrant ed an e x te n s io n o n a ll r e m a in in g d e a d lin e s , th e d a te f o rm a k in g a m e n d m e n ts w a s n o t a “rem ain in g d ea d li n e” ; i t h ad alre ad y p as se d . M o re o v er , b ec au se W atk in s’s pr opos e d a m e ndm e nti nc l ude d ne w pa r t i e s a nd a hos tof ne w c l a i m s , gr a nt i ng the m ot i on af

t erthe cl ose of di sc ov ery w ou l d h ave r es ul t ed i n con si derabl e pre j ud i ce t o the de f

e nda nt s . A nd l a s t , W a tki ns ha s notde m ons tr a t e d good c a us e f or d ep art i n g fro m th e d i stri ctco u rt ’ s sch ed u l i n g o rd er. S ee F ed . R . C i v . P . 1 6 (b ); S o sa v. A i rpri ntS ys . , Inc. , 13 3 F . 3d 14 17 , 14 19 (11t h C i r. 19 98 ) ( “ If w e c on si dere d on l y R ul e 15(a) w i tho utre gard t o R ul e 16(b), w e w ou l d render s chedul i ng orders m e a ni ngl e s s a nd e f

f e c t i ve l y w oul d r e a d R ul e 16( b) a nd i t s good c a us e r e qui r e m e nt ou tof the F eder al R ul es of C i vi l P roce du re . ”) A c c or di ngl y , a f

t e rc a r e f ul r e vi e w of

the r e c or d a nd c ons i de r a t i on of the p a r tie s ’ b r ie f

s , w e d is c e rn n o r e v e r s ib le e rr o r . AF F I RME D.