FI FTH DI VI SI ON REESE, P. J.

, M A RKLE and COLVI 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.

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Septem ber 28, 2020



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A2 0 A1 05 2 . TAYLOR v . AM ERIS BANK.

R E E S E
, Pres i di n g J u d g e.

Ph i l li p H. Tay l o r, J r. (“ t h e Ap p el l an t”) seek s i m m ed i at e re v i ew o f t h e t ri al

co u rt ’ s d en i al o f h i s m o t i on fo r s u m m ary ju dg m en t ag ai n s t Am eri s Ban k (“ t h e

Ap p el l ee”). Th e Ap p el lan t arg u es t h at t h e t ri al co u rt er r e d i n fi n d i ng t h at t h e

Ap p el l ee’ s cl ai m s w e r e n o t b a rred b y t h e s t at u t e o f l i m i t at i o n

. Fo r t h e reas o n s s et

fo rt h b el o w i n fra, we affi rm

.

Su m m a r y ju dg m en t s en

jo y n o p res u m

p t i o n o f co rrect n es s o n

ap p eal

, an d an ap pel l at e co u rt m u s t sat i s fy i t s el f d e n o v o th at th e

req u irem en ts o f OCGA § 9

- 1 1 -5 6 (c) hav e been m et

. In o ur d e n o v o

rev i ew o f t h e g r a n t o r d en i al o f a m o t i o n fo r s u m m ary ju d g m en t

, wem

u s t v iew t h e ev i d en ce, an d al l reas o nab l e i n feren ces d rawn t h erefro m , i n 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 ov an t

. 1

So v i ewed

, t h e reco rd s h o ws t hat i n 2 0 1 0

, Tay l o r M ad e Ho m es , In c. (“ TM H”)

e x e c u t ed a p ro m i s s o ry n o t e i n fav o r o f M cIn t o s h St at e Ban k (“ M cIn t o sh ”) i n t h e

p ri n ci p al am o u n t o f $ 1 4 3, 3 7 4.5 3

. Th e Ap p el l an t p ers o n al ly g u aran t eed th e n o t e. Th e

n o t e m at u red i n a b al l o o n p ay m en t d u e o n No v em b er 1 0, 2 0 10

, b u t T MH fai l ed to

m ak e t he pay m en t an d d efau l t ed o n th e l o an

. In M ay 2 01 1

, M c I n t o s h su ed t h e

Ap p el l an t an d TM H. A cco rd i n g t o t h e s u m m ary ju d g m en t o rd er, 2 o n M ay 9, 2 0 1 6

, t h e

M ay 2 0 1 1 act i o n was d i s m i s s ed fo r wan t o f p ro s ecu ti o n

. 3

Ul t i m at el y , t h e Ap p el l ee acq u i red M cIn t o sh

, an d fi led s u i t ag ai n s t TM H an d

t h e Ap p el l an t i n M arch 2 0 19 fo r t h e b reach o f t he n o t e.

1 DIP Len di n g I v. Cl evel a n d Aven ue P r o p er t i es
, LLC

, 34 5 G a. Ap p

. 1 5 5 (8 1 2

SE2 d 5 3 2) (2 0 1 8) (ci t at i o n s an d p u n ct u at i o n o m i t t ed ).

2 Th e M ay 2 0 1 6 ord er d i s m i ss i n g t h e o ri g i n al act i o n i s n o t p art of t h e ap p el l at e

reco rd

.

3 See OCGA § 9 -1 1 -4 1 (e) (“ An y act i o n i n w h i ch n o wri t t en o rd er i s t ak en fo r

a p eri o d o f fi v e y ears s h al l au t o m at i cal l y s t an d di s m i s s ed

, wi t h co st s t o b e t a x e d

ag ai n s t t h e p art y p l a i n t i f f

. Fo r th e p u rp o ses o f t h i s Co de s ect i o n, an o rd er o f

c o nt i n uan ce wi l l b e d eem ed an o rd er. W h en an act i o n i s di s m i s s ed u n d er t hi s

s u b s ect i o n , i f t h e p l ai n ti ff reco m m en ces t h e act io n wi t h i n s i x m o nt h s fo ll o wi n g t h e d i s m i s s al t h en t h e ren ewed act i o n s h al l s t an d u p on t he s am e fo o t in g , as t o li m i t at i o n, wi t h t h e o ri g in al act i o n .”).

2Th e Ap p el l an t fi l ed a v eri fi ed jo i n t an s wer wi t h TM H an d as s ert ed

, i n t er al i a,

t h at t h e co m

pl ai n t fai l ed t o st at e a cl ai m up o n wh i ch rel i ef co ul d b e g ran t ed an d t h at

t h e s t at ut e o f l i m i t at i o n b arred t h e act i o n

. Th e Ap p el l an t fi led a m o t i o n fo r s u m m ary

ju d g m en t

, arg u i ng t h at t he Ap p el lee fai led t o fi l e t h e co m p l ai n t w i t hi n t he s t at u t e o f

l i m i tat i on

. Aft er a h eari n g , t h e t ri al co u rt fo u n d t h at

, ev en t h o u g h t h e s t at u t e o f

l i m i tat i on fo r t h e g u aran t y had ex p i red

, t h e A p p el lan t

, by co nt ract

, h ad wa i v ed t h e

s t at u te o f l im i t a t i o n fo r t h e g u aran t y

. Acco rd i n gl y , t h e t ri al co u rt d en i ed t h e

Ap p el l an t ’ s m o t i on fo r s u m m ary ju d g m en t. Th e A p p el l an t s o u g h t a cert i fi cat e o f

i m m ed i at e rev i ew, wh i ch was g ran t ed b y t h e t ri al co u rt

. 4 T h e Ap pel l an t fi l ed a

p et i t i o n fo r i n t erl o cu t o ry

ap p eal , wh i ch t h i s Co u rt g ran ted

.

“ Su m m a r y ju dg m en t i s p ro p er i f t h e pl ead i n gs , d ep o s i ti o n s , an s wers to

i n t erro g at o ri es , an d ad m i s s io ns o n fi le, to g et h er wi t h t he affi d av i t s , i f an y , s h o w t h at

t h ere i s no g en u i n e i s s u e as t o an y m at eri al fact an d t h at t h e m o v i n g p art y i s en t i t l ed

t o ju d g m en t as a m at t er o f l aw.” 5 W i t h t hes e g u i d i n g p ri n ci p l es i n m i nd

, we n o w t u rn

t o t he Ap p el l an t ’ s cl ai m s o f erro r.

4 TM H i s n ot a p art y

t o t h i s ap p eal

.

5 E s s i e n v

. Ci t iMo r t

g a g e , 3 3 5 Ga. Ap p. 7 27 (7 81 SE2 d 59 9 ) (2 01 6 ) (ci t i n g OCGA § 9 -1 1 -5 6 (c)) (p u n ct u at i o n o m i tt ed ).

31 . Th e Ap p el lan t arg ues t h at p erm an en t p ro s pect i v e wai ver o f t h e d efen s e o f

t h e s t at u t e o f l i m i t at i on i s v oi d b ecau s e i t i s ag ai n s t p u bl i c p o li cy

.

Ord i n ari l y , act i o n s o n co n t ract s m u s t b e b ro u g h t wi t h i n s i x ye a rs aft er t h e

co n tract i s d u e an d p ay ab l e. 6 He r e , t h e p ro m i s s o ry n ot e ex ecu t ed b y TM H was

ex ecu t ed u n d er seal

, b u t t he g u aran t y was no t

. In th e in s t an t cas e, t h e n o t e was d u e

o n No v em

b er 1 0

, 2 0 10

, s u ch t h at th e s tat u t e o f l i m i t at i o n ex p ired i n No vem b er 2 0 1 6.

Al t ern at i v el y , wh en a ci vi l s ui t i s b ro u gh t an d d i s m i s s ed fo r wan t o f p ro s ecu t i o n , i t

m ay be ren ewed wi t h i n s i x m o n t h s

. 7 Here, th e o ri gi n al s u i t was d i s m i s s ed o n M ay 9,

2 0 1 6

, an d it co u l d h av e b een ren ewed wi t h i n si x m o n th s

. Th u s , i t fo l l o ws t h a t t h e

Ap p el l ee’ s act i o n

— fi led i n M arch 2 0 1 9

— d i d n o t co m p l y wi t h an y ap p l i cab l e

s t at u te o f l i m i tat i o n

.

In t h e p res en t act i o n , t h e g u aran t y s t at es i n rel ev an t p art :

6 See OCGA § 9 -3 -2 4 (Ge n e ral l y , “ [a] l l act i o ns u po n s i m p l e co n t ract s in
wri t in g s h al l b e b ro u g h t wi t h i n s ix y ears aft er t h e s a m e b e c o m e d u e an d p ay ab l e. Ho wev er, t h is Co d e s ect i o n s hal l n o t ap p l y t o act i o n s fo r t h e b reach o f co n t ract s fo r

. . . n eg o t i ab l e in s tru m en t s u n d er Art i cl e 3 o f Ti t l e 1 1.”); s ee al s o O CGA § 1 1 -3 -1 1 8 (a) (p ro v i d i n g t h at an act i o n t o en fo rce a n o te m u st b e co m

m en ced wi t h i n s i x y ears aft er t h e du e d at e); OCGA § 9 -3 -2 3 (act i o n s o n i n st ru m en t s fi l ed u nd er s eal m ay b e b ro u gh t wi t h i n 2 0 y ears ).

7 See OCGA § 9 -1 1 -4 1 (e).

4Th e [Ap p el l an t ] wai v es an y an d al l d efen s es , cl ai m s an d d i sch arg es o f

[TM H]

, o r a n y ot h er ob l i g o r, p ert ai n in g t o i n d eb t ed n es s , ex cep t th e

d efen s e o f d i s ch arg e b y p ay m en t i n fu l l

. W i t h o u t l i m i t i n g t h e g en eral i t y

o f t h e fo reg o i n g , th e [

Ap p el l an t ] w il l no t as s er t

, p l ea d or en

f or ce

a g a i n s t [ McIn to s h a n d it

s s u cces s o r

s ] a n y d ef en s e o f wa i ver
, rel ea s e,

s t at u t e o f l i mi t a t i on s , r e s j u d icat a, s t at u t e o f frau d s , frau d, i n cap aci t y ,

m i n o ri t y , us u ry , i l leg al i t y o r u n en fo rceab i l i t y w h i ch m ay b e av ai l ab l e t o [TM H] or an y o t h er p ers o n l i ab l e i n res p ect o f an y i n d eb t ed n es s , o r an y

s et o ff av ai l ab l e ag ai n s t [M cIn t o s h an d i t s s u cces s o rs ] t o [TM H] o r an y

s u ch o t h er p ers o n , wh et h er o r n o t o n acco u n t o f a rel at ed t ran s act io n

. 8

As a g en eral ru l e, “ [p ] art i es m ay s t i p u l at e f o r o t h er l eg al p ri nci p l es to g o v ern t h ei r

co n tract ual rel at i on s hi p t h an t h o s e p res cri bed b y l aw; h owev er, t h es e m u s t b e

ex p res s l y s t at ed i n th e co n t ract .” 9 M o reo v er, “ [a] g u aran t o r m ay co n sen t i n ad v an ce

t o a co u rs e o f co n d u ct w h i ch wo ul d o t h erwi s e res u l t i n h is d i s ch arg e, an d t h i s

i n cl u d es t h e wai v er o f d efen s es o t h erwi se av ai l ab le t o a g uaran t o r.” 1 0

8 (Em p h as i s s u p pl i ed .)

9 W o l f Cr eek La nd

f i l l v. Twi g g s Co u n ty

, 3 3 7 Ga. Ap p

. 2 1 1, 21 5 (1 ) (7 8 6 SE2 d

8 6 2 ) (2 0 1 6 ) (p u n ct uat i o n an d fo o t n o t e o m i t t ed ).

1 0 HW A Pr op er t ies

, In c. v. Co mmu n i t y & S o u t h e r n Ba n k

, 3 2 2 Ga. Ap p

. 8 7 7,

8 8 7 (2 ) (b ) (7 4 6 SE2 d 6 09 ) (2 0 1 3 ) (u ph o l di n g a g u aran t y p ro v is i on i d en t i cal t o t h e

p ro v is i o n at i s s u e h e r e ) (ci t at i o n an d pu n ct u at i o n om i t ted ); acco rd PNC Ba n k, Na t

. As s n

. v. S

mi t h

, 2 98 Ga. 8 18

, 8 2 1 -8 2 2 (3 ) (a) (7 85 SE2 d 5 0 5 ) (2 0 16 ); s ee S a m’s

W h o l es al e Cl u b v. Ri l ey , 2 41 Ga. Ap p . 6 9 3

, 6 9 7 (4 ) (5 2 7 SE2 d 2 9 3) (1 9 9 9 ) (n o t i n g

t h at t h e s t at u t e o f l i m i t at i on i s an affi rm at i v e d efen se t h at m ay b e wai v ed ); s ee al s o

5In c o n s i d eri n g a si m i lar co n t ract u al p ro v i s i o n, t h e Geo rg i a Su p rem e Co u rt

fo u n d t h at a g u aran t o r’ s wai v er o f al l ri g ht s an d d efen s es , i n cl u d i n g co n fi rm at i o n o f

a fo recl o s u re s al e, d id n o t v io lat e OCGA § 1 -3 -7

, 1 1 wh i ch p ro v i d es t h at “ [l ] aws m ad e

fo r t h e p res erv at i o n of p u b l ic o r d e r o r g o od m o ral s m ay n ot b e d i s p en s ed wi t h o r

ab ro g at ed b y an y ag reem en t

. Ho wev er, a p ers o n m ay wai v e o r ren o u n ce wh at t h e l aw

h as es t ab l i sh ed i n h i s fav o r w h en h e d o es n o t t hereb y in ju re o th ers or affect th e p u b l i c

i n t eres t .”

T h e Su p rem e Co u rt reas o n ed t h at co n fi rm at i o n o f a fo recl os u re s al e h el p s

“ p res erv e t h e p u b li c o rd er by en s u ri n g t h at b o r ro wer s are n o t u nd u l y st ri p p ed o f t h ei r

p ro p ert y an d l eft des ti t u t e aft er t h ei r as s et s are s u b ject ed t o a d efi ci en c y act i o n .” 1 2

Th es e p ri n ci pl es

d o n o t ap p l y i n t h e s am e m an n er t o g u aran t o rs , wh o are, m o s t oft en ,

v o l u n t eers t o t h e tran s act i o n

. As s u ch

, g u aran t o rs face n ei t h er t h e s am e

Ma s s a ch u s et ts Ben ef

i t Li f e A s s n

. v. R o b i n s o n , 10 4 Ga. 2 5 6

, 2 72 (3 0 SE 91 8 ) (1 8 9 8 ) (W hen t h e l aw pres cri b es a s t at u te o f l i m i t a t i o n, “ i t i s al so wi t h i n t h e p o wer o f t h e

co n tract in g p art ies t o ag ree am o n g t h em s el v es u p o n a p eri o d o f t i m e wh i ch wo u ld

am ou n t t o a s t at u t e of li m i t at i o n [ ]

, ei t h er g reat er or l es s t h an t h e p eri o d fi xed b y t h e l aw.”).

1 1 See S m i t h

, 2 98 G a. at 8 2 2 (3 ) (a) (“ [T] h e freed o m o f co n tract i s sacro s an ct

,

an d th at freed o m s h ou l d no t b e l i m i t ed ab sen t s om e i m p ort an t p ub l ic p o l i cy reas o n .”).

1 2 S mi t h , 2 9 8 Ga. at 8 2 2 (3 ) (b ) (em p h as i s s up p li ed ).

6d i s p ari t y o f barg ai n i n g p o wer no r t he s am e t y p e o f ri s k as b o rro wers

. Fo r t h i s reas o n , a g u aran t o r’ s w ai v er o f t h e r e q u i rem en ts o f th e

co n fi rm at i o n s t at u t e d oes n o t cl ea r l y i nju re o t h ers o r affect th e pu b l i c

i n t eres t

. 1 3

Des pi t e th e Ap p el l an t ’s i m p li ci t arg u m en t t h at t hi s Co u rt s h o u l d l o o k t o fo rei g n

ju ri s d i ct i o n s i n d eci d i n g t h i s cas e, 1 4 t h is d o es n o t n e g a t e t h e fact t h at t he Gen eral

As s em b l y has n o t p as s ed l eg i s l at i o n t h at v i ews th e b arg ai ni n g po wer o f a g uaran t o r,

o r t h e ri s k s as so ci at ed wi t h a gu aran t y , i n th e s am e m an n er as th at o f a b o rro wer,

al t h o u g h t h e l eg i s l at u re p os s es s ed t h e p o wer t o d o s o

. 1 5

Here, t h e Ap p el l an t d o es n o t as s ert t h at an y ch an ges in t h e t erm s o f t h e n o t e

o ccu rred

. 1 6 I n s t e a d

, t h e reco rd s h o ws t h at Tay l o r ex ecu ted a g uaran t y t h at

, am o n g

1 3 Id . (p u n ct u at i o n o m i t t ed ).

1 4 See g en eral ly Ba r ro w v. Ra f f e n s p e r g er , 3 0 8 Ga. 6 6 0

, 6 8 9 (5 ), n

. 2 7 (8 4 2

SE2 d 8 8 4) (2 0 2 0) (It i s t h e ro l e o f Geo rg ia s tat e co urt s t o i n t erp ret t h e Co n s t i t u t i o n

o f Geo rg ia an d t h e l aws o f t h i s s t at e.).

1 5 See S ea r s v. S t a t e o

f Ga

. , 2 3 2 Ga. 5 4 7, 5 5 4 (3 ) (2 0 8 SE2 d 9 3 ) (1 9 7 4 ) (“ Th e l eg i s lat u re i s ab s o l u tel y u n res t ri ct ed i n i t s p o wer t o l eg i s l at e, s o l o n g as it d o es n ot

u n d ert ak e t o e n a c t m eas u res p ro h i b i t ed b y t h e St at e o r Fed eral Co n s ti t u t i o n .”) (ci t at i o n s o m i t t ed ).

1 6 See Ap ex Ba n k v. Th o mp s o n , 3 4 9 Ga. Ap p

. 2 8 5, 2 9 2 -2 9 3 (1 ) (8 2 6 SE2 d 1 6 2 ) (2 0 1 9) (“ [A] n ag reem en t t h at a ch an g e i n t h e t erm s o f t h e n o t e wi l l n o t rel eas e a p art y wh o h as s i g n e d t he n o t e fro m l i ab i l i t y u nl es s i t is ex p res s l y s t at ed i n w ri t i n g i s n ot

an d s h o u l d n o t b e co n s t ru ed as a wai v er of a g u aran t o r’ s ri gh t s or d efen s es u n d er t h e

7o t h er th i n g s , wai v ed h i s ab i l i t y t o as s ert a s tat u te o f l i m i t at i o n d efen s e. Th u s , t h e t ri al

co u rt d i d n o t err i n d en y i n g t he Ap p el l an t ’ s m o t i o n fo r s um m ary ju d g m en t

. 1 7

2

. In l i gh t o f o u r ru l i ng i n Di v i s io n 1

, su p ra, we n eed n o t ad d res s t h e

Ap p el l an t ’ s rem ai n in g en u m erat ed erro rs

.

Ju d g men t a f f i r m ed . Ma r

kl e a n d Co l vi n , JJ., co ncu r

.

co n fi rm at i o n s t at u t e.”) (p u n ct u at i o n o m i t t ed ).

1 7 See S mi t h

, 2 9 8 Ga. at 8 2 2 (3 ) (b ); Ro b i n so n , 1 0 4 Ga. at 2 7 2

.

8