FOURTH D I VI SI ON

DI L LA RD, P. J.

, M ERCI ER and M A RKLE, 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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. ga a ppe a ls .us /r ule s

June 8, 2022



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A2 2 A0 03 5

. U

. S. BANK, NATIONAL AS SOCIATION AS

TRUSTE E OF THE CABANA SERIES IV TRUST v

. CARRINGTON M ORTGAGE SERVICES, LLC.

M A R K LE
, J ud g e.

Th i s ap p eal i n vo l v es th e p ri o ri t y o f p ro p ert y l i en s h el d b y U. S. Ban k Nat i o n al

As s oci at i o n as Tru st ee o f t he Cab an a Seri es IV Tru st (U. S. Ban k ) an d Carri n g t o n

M o rt g ag e Serv i ces , LLC. (Carri n g t o n ). Carri n g t o n fi l ed s u i t t o es t ab l i sh i t s l o an as

h o l d i n g t h e fi rs t l i en p o s i t i o n . Aft er b o t h p art i es m o v ed fo r s um m ary ju d g m en t , t h e

t ri al co u rt fo un d t h at t h e p art i es i n t en d ed Carri n g t o n ’ s l o an t o hav e fi rs t p ri o ri t y

.

Acco rd in g ly

, t he t ri al co urt g ran t ed s u m m ary j u d g m en t to Carri n gt o n an d o rd ered

refo rm at i o n o f t he d eed s an d s p eci fi c p e r f o rm an ce t o p l ace Carri n g to n ’ s i n t eres t in

fi rs t pri o ri t y

. 1 U. S. Ban k n o w ap p eal s , arg u i n g t h at t h e t ri al co u rt erred i n award i n g

1 Th e tri al co u rt al s o d en i ed U. S. Ban k ’ s cro s s -m ot i o n fo r s u m m ary ju d g m en t

.s u ch rem ed y , an d b y i m p ro p erl y co n s i d eri ng ev i d en ce fro m a no n -p art y lo an s erv i cer.

Fo r th e reas o n s t h at fo l l ow, we v acat e t h e t ri al co u rt ’ s o rd er an d rem an d th e cas e fo r

fu rt her p ro ceed i n g s

.

Su m m ary ju d g m en t i s ap p ro p ri at e wh en n o g en u i ne i s s u es o f m a t eri al

fact rem ai n an d t h e m ov an t 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. On

ap p eal

, w e rev i ew th e g ran t o r d en ial o f s u m m ary ju d g m e n t de n o v o ,

c o n s t ru i ng t he ev i d en ce an d al l in feren ces i n a l i g h t m o s t fav o rab le t o

t h e n o n m ov i n g p art y

.

(Ci t at i o n o m i t t ed .) LeCr oy v. Br a g g , 3 1 9 G a. Ap p

. 8 8 4

, 8 8 5 (1 ) (7 3 9 SE2 d 1) (2 0 1 3 ).

Th e fact s here are l arg el y u n d i s p u t ed

. In 2 0 07

, W an d a No rm an o b t ai n ed a l o an

i n t h e am o u n t o f $ 1 1 9 ,1 3 0 ( t h e Pu rch as e l o an ) t o pu rch as e pro p ert y i n DeKal b

Co u n t y

. Th e l o an was s ecu red b y a s e c u ri t y d eed n am i n g M o rt g ag e El ect ro n i c

Reg is t rat i o n Sy s t em s , In c. (M ERS) as t h e n o m i n ee fo r O p t e u m

. Two y ears l at er,

N o rm an co n v ey ed an i n t eres t in t h e pro p ert y t o h er h u sb an d v i a a q u i t c l a i m d e e d

.

Th at s am e y ear, t h e No rm an s bo rro wed $ 2 4 ,5 0 0

, w h i c h w as s ecu red o n th e s am e

p ro p ert y b y a s eco n d s ecu ri t y d eed

, n am i n g MERS as t h e n o m i n ee fo r T ay l o r, Bean

& W h i tak er M o rt g ag e Co rp

. (TBW ) (“ t h e s eco n d l o an ”). Th i s s eco n d s ecu ri t y d eed

ex p res s l y i d en t i fi ed t h e seco n d l o an as a “ S e c o n d a r y l i en ” an d was n ot ed i n t h e

2reco rd s to b e a “ s i l en t seco n d .” 2 Aro u n d th e s am e t i m e, t h e No rm an s refi n an ced t h e

Pu rch as e l o an , ag ai n u s i n g t h e s am e p ro p ert y t o s ecu re t h e l o an u n d er a s ecu ri t y d eed

,

n am i n g M E RS as t h e n o m i n ee fo r TBW (“ t h e Refi l o an ”).

Th e HUD-1 s et t l em en t p ap ers i n d icat ed t hat t he Refi lo an was t o be s u b ject to

a s eco n d l i en , an d t h ere was a l i n e i t em ch arg e fo r reco rd i n g a s u b o rd i n at i o n

ag reem en t

. Th e cl o s i n g i n st ru ct i o n s fo r b o t h l o an s req u i red t h e cl o si n g ag en t to

o b t ai n a s u b o rd i n at i o n ag reem en t fro m TBW to m ak e t he Refi l o an fi rs t p ri o ri t y , an d

t o reco rd t h e ag reem en t s i m u l t an eo u s l y wi t h t h e Refi l o an

. Des p i t e t h es e i ns t ru ct i o n s ,

h o wev er, t h e cl o s i n g ag en t fai l ed t o o b t ai n o r reco rd a s u b o rd i n at i o n ag reem en t

s i gn ed b y TBW

. 3 In s t ead

, sh e i n cl u d ed i n t h e cl os i n g d ocu m en t s a n ot e en t it l ed “ fi rs t

p o s i t i o n l e t t e r ,” co n fi rm in g t h at t h e Refi l o an h ad p ai d o ff th e Pu rch as e l o an ;

t h erefo re, t h e Refi l o an h el d t h e fi rs t p ri o ri t y l i en . Th e s eco n d l o an was reco rd ed i n

M arch 2 0 0 9

, b u t t h e Refi l o an was n o t reco rd ed u n t i l s i x m o n t h s l at er.

2 A “ s i l en t s eco n d ” i s a seco n d l i en l o an t ran s act i o n i n wh i ch t h e s eco n d ary l en d er ag rees t o gi v e u p cert ai n o f i t s ri g h t s an d b eco m e th e s eco n d p ri ori t y l i en

. See

J o An n J

. Bri g h t on , “ Si l en t Seco n d Li en Fi n an ci n g s : Po p ul ar Len d i n g St ru ct u re M ay Gi v e Ri s e t o En fo rcem en t Pro b l em s , ” 2 4-FEB Am

. Ban k r. In s t

. J

. 2 2 (2 0 0 5 ); s ee al s o Mi t ch el l v. W

es t En d Pa r

k Co

. , 1 7 1 Ga. 8 7 8 (1 5 6 SE 8 8 8 ) (1 9 3 0 ) (s en i o r l i en h o l d er

m ay wai v e h i s ri g h t t o fi rs t p ri ori t y l i en ).

3 Th e No rm an s s i g n ed a s u b o rd i n at i o n ag reem en t , b u t TBW d i d n o t s i g n i t

.

3Th e Refi l o an was u l t im at e l y a s s i gn ed t o Carri ng t o n

. Th e s eco n d l o an was

t ran s ferred t o Sel en e Fi n an ce fo r s erv ici n g

. In 2 01 5

, N o rm an d i s co v ered t h at t h e Refi

l o an i n co rrect l y o ccu pi ed th e s eco n d p ri o ri t y li en p o s i t i o n

. Sh e co n t act ed Sel en e

Fi n an ce, wh i ch a c k n o wl ed g ed t h at it h el d t h e s eco n d ary l ien p o s i t i o n an d t h at

,

t h ro u g h a reco rd i n g erro r, i t h ad b u m p ed Carri ng t o n fro m t h e fi rs t p r i o r i t y l i en

p o s i t i on

. Ho wev er, wh en Carri n g t on req u es t ed Sel en e Fi n an ce s i gn a s u b o rd i n at i o n

ag reem en t , i t d ecl i n ed

. Th e s eco n d l o an was u l t i m at el y as s i g n ed t o U. S. Ban k

.

Carri n g to n fi l ed s u i t ag ai n s t U. S. Ban k, s eek i n g a d ecl arat o ry ju d g m en t t h at

i t w as en t i t l ed t o a fi rs t p ri o ri t y i n t eres t. It al s o req u es t ed eq u i t ab l e rel i ef; eq u i t ab l e

s u b ro g at i o n ; refo rm at i o n o f t h e d eed s du e to m u t u al m i s t ak e; a n d s p eci fi c

p erfo rm an ce. In i t s an s wer an d res p o n se t o req u es t s t o ad m i t

, U

. S

. Ban k ad m i t t ed

t h at Sel en e h ad co n ced ed t h e s eco n d l o an h el d t h e s eco n d p ri o ri t y l ien p o s it i o n

.

Bo t h p art i es m o v ed fo r s u m m ary ju d g m en t

, an d fo l l o wi n g a heari ng , t h e t ri al

co u rt gran t ed s u m

m ary ju d g m en t t o Carri n g t o n

. Th e t ri al co u rt fo u nd t h at Carri n g t o n

was en t i t l ed t o refo rm at i o n o f t h e d eed s b ecau se t h ere h ad b een a m ut u al m i s t ak e

wh en t h e cl o s i n g ag en t fai l ed t o o b t ai n a s i g ned s ub ro g at i o n ag reem en t an d reco rd ed

t h e d eed s i n t h e wro n g o rd er. Th e t ri al co u rt fu rt her fo u n d th at Carr i n g t o n w a s

en t i t l ed t o s p eci fi c p erfo rm an ce b ecau s e U. S. Ban k ’ s own reco rd s s h o wed t h at t h e

4Refi l o an was i nt en d ed t o h o l d t h e f i rs t p ri o ri t y po s it i on

. Th e t ri al co u rt d i d n ot

ad d res s th e cl ai m s fo r d ecl arat o ry ju d g m en t o r eq u it ab l e s u bro g at io n

. In i t s o rd er, t h e

t ri al co u rt i n s t ru ct ed t h at t he co u n t y p ro p ert y reco rd s b e refo rm ed t o refl ect t h e l i en s ’

co rrect p ri o ri t y

s t at u s. U. S. Ban k n o w ap p eal s.

1

. U. S. Ban k fi rs t a r g u e s t h at Carri n g t o n is n ot en t i t l ed t o eq u i t ab l e rel i ef,

refo rm at i o n , o r s p eci fi c p erfo rm an ce b ecau s e t h ere was n o m u t u al m i st ak e g i v en t h at

TBW

, as Carri n g t on ’ s p red eces s o r, h el d b o t h t h e Refi l oan an d t h e s eco n d l o an at t h e

t i m e o f cl o s i n g an d i s s o l el y re s p o n s i b l e fo r t h e fai l ure t o o b t ai n a s i g n ed

s u b o rd i n at i o n ag reem en t

. It as s ert s t h at T BW n ev er p ai d o ff t h e d eb t secu red b y t h e

s eco n d l o an , t h ereb y

l eav i n g U. S. Ban k i n t h e fi rs t p ri o ri t y p o s i ti o n

. It t h en arg u es

t h at i t was en t i t l ed t o su m m ary ju d g m en t on Carri n g t o n’ s c l ai m s fo r a d ecl arat o ry

ju d g m en t an d eq u i t ab l e s u b ro g at i o n

. Un d er t h e fact s o f th i s cas e, w e are co n s t rai n ed

t o co n cl u d e t h at t h e t ri al co u rt erred b y g ran t i ng s u m m ary ju dg m en t t o Carri n g t o n o n

t h e cl ai m s fo r refo rm at i o n an d s p eci fi c perfo rm an ce, an d ord eri n g t h at t h e co u n t y

d eed reco rd s b e al t ered

.

“ A s ecu ri t y d eed co n t ai n i n g a p o wer o f sal e an d a deed t o s ecu re d eb t are

m at t ers o f co n t ract

, t h e p ro v i s i o n s o f wh i ch are co n t ro l l i n g as to t h e ri g h t s o f t h e

p art i es , an d wi ll b e en fo rced as wri t t en .” Na j a r i a n Ca pi t al v. Mi l

f or d

, 3 5 7 Ga. Ap p.

51 7 4

, 17 9 (1 ) (a) (8 50 SE2 d 2 36 ) (2 02 0 ). Becau se Carri n g t o n an d U. S. Ban k are b o th

as s i g n ees o f t h e deed s fro m TBW

, t h ei r ri gh t s are co nt ro l l ed b y t he deed s

. S p a r r a v.

Deu ts ch e Ba n k Na t

. Tr us t Co

. , 3 3 6 Ga. Ap p

. 4 1 8

, 4 22 (1 ) (e) (7 8 5 SE2 d 7 8 ) (2 0 1 6 ).

Gen eral ly

, th e p ri o ri t y o f each d eed o r l ien i s d et erm i n ed b y t h e dat e o f i t s

reco rd i n g

. See, e.g ., OCGA § 4 4 -2 -1

. T h u s , a d eed t h at w as ex ecu t ed s eco n d

, b u t fi l ed

fi rs t can t ak e t h e fi rs t pri ori ty o v er t h e earl i er m o rt gag e. See OCGA § § 4 4 -2 -2 (b ); 4 4

-

2 -6

. Nev ert h el es s , p art i es can ag ree t o m o d i fy t h e o rd er o f l i en p ri o ri t y

. N. Ga

. S av.

& Lo a n As s n . v. Co r b ei l , 1 7 7 Ga. Ap p . 5 23 , 5 2 4 (1 ) (3 3 9 SE2 d 7 7 9 ) (1 9 8 6 ).

[W ] h ere fact s ap paren t o n t h e face o f t he m o rt g ag es s h o w t h at i t was th e

i n t en t i o n of t he part i es t o g i v e p referen ce t o o n e ov er t h e o t h er, th e l ien

s o p referred wi l l b e en fo rced

. . . . T h e part i es m ay , as b et w een

t h em s el ves , m ak e a v al i d ag reem en t

. . . th at o n e o f t wo m ort g ag es sh al l

b e p ri o r t o t h e o t h er, an d t h e o rd er o f reco rd i s t h en i m m at er i a l u n l es s

t h ey are s ub s eq u en t l y

as s i g n ed t o o t h er p ers o n s wh o h av e n o n o t i ce o f

t h e ag reem en t

.

Mi t ch el l v. W

es t En d Pa rk Co

. , 1 7 1 Ga. 8 7 8

, 89 1 (1 ) (1 5 6 SE 88 8 ) (1 9 3 0 ). M o reo v er,

as we h av e ex p l ai n ed

,

[t ] h e l eg al o rd er o r p ri o ri t y as b et ween m o rt g a g es an d o th er l i en s o r

cl ai m s m ay b e f

i x ed

, rev ers ed

, o r m o di fi ed b y an ag reem en t o f th e

p art i es o r b y

a wai ver o r rel eas e o n t h e p art o f t h e s en i o r l i en h ol der. . .

Fu rt herm o re, ev en ab s en t a s p eci fi c ag reem en t, a l ien h o ld er m ay wai ve

6p ri o ri t y by i m pl icat i o n ; wi t h o u t an y ag reem en t t h ere m ay b e fact s an d

ci rcu m s t an ces wh i ch wo u l d i n d i cat e an i nt e n t io n to m ak e o n e o f t wo

cl ai m s p ri or t o t he o t her.

(Ci t at io n an d p u n ct u at i o n o m it t ed .) F & W A gr i s er vi ces v. UAP/ Ga

. Ag

. Ch em. , 2 5 0

Ga. Ap p . 2 3 8 , 2 4 0 (1 ) (5 4 9 SE2 d 7 4 6 ) (2 0 0 1 ).

In t h i s cas e, Carri n g t o n arg u es t hat t h e o ri g i nal p art ies t o t h e l o an s ag reed t h at

t h e Refi l o an wo u l d h av e fi rs t p ri o ri t y

. Th e reco rd here i s rep l et e wi t h ev i d en ce o f t h i s

i n t en t o n t h e fa c e o f t h e l o an s , as wel l as i n t h e reco rd s o f t h e refi n an ci n g an d

s u b s eq u en t s erv i ci n g o f t h e l o an s

. At i s s u e, ho wev er, i s wh at rel ief was ap p ro p ri at e

u n d er t h e s p eci fi c fact s o f t hi s cas e.

Here, Carri n g to n’ s cl ai m s s o u nd ed l arg el y i n eq u i t y

. “ Eq u i ty ju ri s di ct i o n i s

es t ab l i s h ed an d al l o w ed fo r t h e p r o t e c t i o n an d rel i ef of p art i es wh ere, fro m an y

p ecu li ar ci rcu m s t an ces , th e o p erat i o n o f t h e g en eral ru l es of law wo u l d b e d efi ci en t

i n p ro t ect i n g fro m an t i ci p at ed wro n g o r rel iev i n g fo r i n ju ri es d o n e.” OCGA § 2 3 -1 -3

.

“ Eq u i t y c o n s id ers th at d on e wh ich o u g h t t o b e d o n e an d d i rect s i t s rel i ef

acco rd i n g l y .” O CGA § 2 3 -1 -8

. W i t h t hi s i n m i n d, we t u rn t o Carri n g t o n ’ s cl ai m s fo r

rel i ef.

(a) Ref

or ma t io n

.

7R e f o r m at i o n o f a co n t ract is au th o ri zed wh en t h ere i s a m u t u a l

m i s t ak e as t o t h e co n t en t o f a wri t i n g : Eq u it y m ay i n t erv en e an d refo rm

a co n v ey an ce wh en t h e i ns t ru m en t fai l s t o ex pres s accu rat el y th e

i n t en t i o n o f t h e part i es

. A p et i t i on fo r refo rm at i o n o f a wri t t en co n tract

wi l l li e wh ere b y m i st ak e o f th e s cri ven er an d b y o v ers i g ht o f t h e p art i es ,

t h e wri t in g d o es no t em

b o d y o r fu l l y ex p r e s s t h e real co n t ract o f th e

p art i es

. Th e cau s e o f t h e d e f e c t 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 o n t o b o t h p art i es 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 th e

co m p lai n i n g p art y wi l l n o t d efeat h i s ri g h t to refo rm at i o n i f t h e o t h e r

p a rt y h as n ot been preju d i ced

. A m i s t ak e rel i ev ab l e in eq u it y i s s o m e

u n i n t en t i o n al act

, o m i s s i o n , o r erro r ari s in g fro m i g n oran ce, s u rp ri s e , i m p o s i t io n, o r m i s pl aced co n fi d en ce, t h at res u l t s i n a co n v ey an ce t h at i s

co n t rary t o th e i nt en t i o n o f t h e p art ies i n t hei r co n tract

. Bu t fo r eq u i t y t o

i n t erv en e, t he m i s t ak e m

u s t be s h o wn t o b e t h e m i st ak e o f b ot h p art i es

.

(Ci t at i o n s an d p u nc t

ua t i o n o m i t t ed .) JPMo r

g a n Ch a s e Ba n k, N. A. v. Cr o n an , 3 5 5 Ga.

Ap p

. 5 5 6

, 5 6 1

– 5 6 2 (2 ) (8 4 5 SE2 d 2 9 8 ) (2 0 2 0); s ee al s o OCGA §§ 2 3 -2 -2 5 ; 2 3 -2 -3 0.

“ Refo rm at i o n o f wri t ten in s tru m en t s m ay b e h ad b y t he i m m ed i at e p art i es t h eret o an d

b y t ho s e s tan d i ng in p ri v i ty wi t h th em , s u ch as t hei r su cces s o r s

. ” ( C i t at i o n an d

p u n ct u at i o n om i t t ed .) In s

. Ag en cy o f Gl yn n Co un t

y v. At l a nt a Ca s

. Co

. , 2 5 5 Ga. Ap p.

3 2 3

, 3 24 (1 ) (5 6 5 SE2 d 5 4 7 ) (2 0 0 2 ) ; s ee al s o W es t Lu mb er Co

. v. M

o o re , 1 7 9 Ga.

3 0 2 (2 ) (1 7 5 SE 64 2 ) (1 9 3 4) (eq u i t y p erm i t s refo rm at io n o f a d eed ); OCGA § 2 3 -2 -2 3

(“ A m i s t ak e o f l aw b y th e draft sm an o r o t h er ag en t

, b y wh i ch th e co nt ract

, as

8ex ecu t ed

, d o es no t fu l fi l l o r v i o l a t e s t h e m an i fes t in ten t i o n o f t he p art i es t o t h e

ag reem en t , m ay

b e rel i ev ed i n eq u i t y .”).

Here, t h e ev i d en ce s ho ws t h at t h e p art ies i n t en d ed t h e Refi l o an t o h o l d fi rs t

p ri o ri t y

. Ho wev er, t h e t ri al co u rt erred i n co n cl u di n g t hat t h e p ro p er rem ed y was t o

o rd er refo rm at i o n o f t h e d e ed b ecau s e n ot h i n g i n th e fo rm of t h e co nv ey an ce was

i n accu rat e. Po tt er ’s Pr o

per ti es v. VNS Co r

p

. , 3 0 6 Ga. Ap p

. 6 2 1

, 6 23 (7 0 3 SE2 d 7 9 )

(2 0 1 0) (“ A p et i t i o n fo r refo rm at i o n o f a wri t t en co n t ract wi l l l ie w h ere b y m i s t ak 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 wr i t i ng d o es n o t em b o d y o r fu l l y

ex p res s t h e real co n t ract o f t h e p art i es .”) (em p h as i s s u pp l i ed ). Bo t h d eed s co rrect l y

i d en t i fi ed t h e p ro p er p art i es an d t h e p ro p er t y secu ri n g t h e d eb t

, an d t h ey were d u l y

s i gn e d

. Id .; s ee al s o JPMo r g a n Ch a s e Ba n k, N. A. v. D el Pi a n o , 3 5 6 Ga. Ap p

. 3 5 4,

3 5 6 -3 5 7 (1 ) (8 4 7 SE2 d 36 9 ) (2 0 2 0 ) (d eed m i s s i n g at t es t at i o n was faci al l y d efect i v e

an d co u l d b e refo rm ed ); Cr o n a n , 3 5 5 Ga. Ap p . at 5 61 -5 6 2 (2 ) (refo rm at i o n o f d eed

ap p ro p ri at e i f t here was a m ut u al m i s t ak e as t o w h i ch pro p ert y s ecu re d t h e d eb t ).

M o reo v er, t h e s eco n d ary l o an i n d i cat es o n t h e f a ce o f th e d o cu me n t t h at i t was

i n t en d ed t o be t he s eco nd p ri o ri t y

. Th u s, t here i s n ot h i ng o n t he fo rm o f t h e

9co n vey an ces t h at req u i res refo rm at i o n

. 4 Co m p are W es t Lu mb er Co

. , 1 7 9 Ga. at 3 0 2

(2 ) (t ri al co u rt h ad au t h o ri t y to refo rm co n t ract an d deed t o refl ect th at p art y ag reed

t o as s u m e ex i s t i n g l i en s wh ere co n t ract an d d eed d i d n o t s h o w t hi s ag reem en t ).

In s t ead

, t h e m is t ak e i n t h i s cas e aro s e fro m t he cl o s i n g ag en t ’ s fai lu re t o fo l l o w

t h e cl o s in g i ns t ru ct i o n s an d reco rd t h e d eed s i n t h e p ro p er ord er t o s e c u re t h e fi rs t

p ri o ri t y l i en fo r t h e Refi l o an

. Co m p are Bl a ck v. Na t i o n st a r Mt g

. , 3 4 4 Ga. A p p

. 2 1 7,

2 2 1 (8 09 SE2 d 48 7 ) (2 0 18 ) (m u t u al m i s t ak e in d eed ex i st ed wh ere p art i es i n t en d ed

t o co n vey two p i eces o f p ro p ert y b u t , t h ro u gh a s cri v en er’ s erro r, o n l y o n e p i ece o f

p r o p ert y was l i s t ed ). Becau s e refo rm at i o n o f t h e d eed i s n o t t h e p ro p er eq u i t a b l e

4 Carri n g to n ci t es t o DeGo l yer v. Gr een Tr ee Ser vi ci n g

, 2 9 1 Ga. Ap p

. 4 4 4

, 4 4 7 (1 ) (6 6 2 SE2 d 1 4 1 ) ( 2 0 0 8 ), fo r t h e p ro p o s i t io n t h at t h e tri al co u rt can refo rm t h e

s ecu ri t y d eed t o m ak e i t fi rs t p ri o ri t y

. Bu t t h at cas e i n v o l v ed refo r m a t i o n of a d eed

t h at l ack ed a l eg al d es cri p ti o n wh en i t w as reco rd ed

. Id

. Th e t ri al co u rt ex p lai n ed t h at
i t c o u l d refo rm th e d eed t o refl ect t h e t ru e in t en t o f t h e p art i es as t o t h e p ro p ert y

en cu m b ered

, an d th at t h e refo rm ed d eed wo u l d rel at e b ack t o wh en i t was o ri g i n al l y

ex ecu t ed

. Id

. As s u ch

, t he d eed wo u l d m ai n t ai n t h e fi rs t p ri o ri t y p o s it i on , an d t h e

p l ai n t i ff was en t it l ed t o a d ecl arat o ry ju d g m en t t o t h at effect

. Id

. Th e cas e d i d n o t h o ld

t h at a m i s t ak e in pri o ri t y i n teres t s al l o ws t h e t ri al co u rt t o refo rm t h e d eed s o a s t o

co rrect t h e reco rd i n g erro r an d p ri o ri t y l i en p os i t i o n. Id

. ; s ee al s o D el Pi an o , 3 5 6 Ga. Ap p

. at 3 5 9 (2 ) (b ) (i n a cas e i n v o l v i n g req ues t fo r eq u it ab l e rel i ef an d a d ecl arat o ry ju d g m en t

, ex p l ai n i n g t h at “ a t ri al co u rt m ay eq u i t ab l y refo rm a reco rd ed b u t d ef ect i ve

s ecu ri t y deed an d en t er a d ecl arat io n th at t h e s e c u r i t y d eed h as fi rs t pri o ri t y .”) (ci t at i o n an d p u nct u at io n o m i t ted ; em ph as i s s u p pl i ed ).

10rem ed y t o co rrect t he o rd er o f t h e l i en p ri o ri t y , t h e t ri al co u rt erred in award i n g s u ch

rel i ef.

(b ) S

p eci f i c p er f or ma n ce

.

Th e t ri al co u rt al so co n cl u d ed th at Carri n g t o n was en t i t l ed t o s p eci fi c

p erfo rm an ce. Ag ai n, we co n cl u d e t hat t h e t ri al co u rt erred i n t h e rem ed y i t o rd ered

.

“ Sp eci fi c p erfo rm an ce is an eq u i t ab l e rem ed y av ai lab l e wh en t h e dam ag e s

reco v erab l e at l aw w o u l d n o t b e an ad eq uat e co m pen s at i o n fo r n o n p erfo rm an ce.”

(Ci t at i o n an d p u n ct u at i o n o m i t t ed .) S i mp s o n v. Pen d er g a s t , 2 9 0 Ga. Ap p

. 2 9 3

, 2 9 7

(2 ) (6 59 SE2 d 7 16 ) (2 0 0 8 ); s ee al s o S ext o n v. S ewel l

, 3 5 1 Ga. Ap p. 2 7 3

, 2 7 9 (1 ) (8 3 0

SE2 d 6 0 5 ) (2 0 1 9 ) (“ i t was w e l l e s t a b li s hed th at m o n et ary d am ag es are n o t an

ad eq uat e l eg al rem ed y wh ere t h e co nt ract so u gh t t o b e p erfo rm ed i n v o l v ed t h e s al e

o f u ni q u e real p ro p ert y [.] ”) (ci t at i o n an d p u n ct u at i on o m i t t ed ); O CGA § 2 3 -2 -1 3 0.

W e hav e fo u n d n o cas e law

– an d t he p art ies h av e n ot p oi n ted t o an y

– s ho wi n g t h at

s p eci fi c p erfo rm an ce i s an ap pro p ri at e rem ed y here. In fact

, t h ere are o b st acl es t o t h e

t ri al co u rt ’ s ap p li cat i o n o f s p eci fi c p erfo rm an ce i n th i s cas e. Im p o rt an t l y , t h e t ri al

co u rt d i d n o t o rd er t h e p a r t i es t o s peci fi cal l y p erfo rm a n y ob l i g at io n

. It d id n o t o rd er

U. S. Ban k t o s i g n a s u b ro g at i on ag reem en t . Rat h er, i t o rd ered t he p ro p ert y reco rd s

b e co rrect ed

. As d i s cu s s ed ab ov e, h o wev er, t h ere was n o t h i n g i n co rrect ab o u t t h e

11d eed

, an d t h u s , n o b as i s o n w h i ch t o co rrect t h e reco rd s

. A s s u ch

, t h e rem ed y t h e t ri al

co u rt o rd ere d w a s i m

p ro p er. Cf. OCGA § 4 4 -2 -1 2 (p ro v id i n g fo r ci rcu m s t an ces in

wh i ch a d eed m ay

b e re-reco rd ed ).

(c) Eq u i t a b l e r el i ef

.

Eq u i t y al l ows fo r rel i ef wh en t h ere is n o ad eq u at e rem ed y at l aw. OCGA § 2 3

-

1 -3 ; s ee al s o W

a l l a c e v. W

a ll a ce , 3 4 5 Ga. Ap p. 76 4

, 7 67 -7 6 8 (1 ) (8 1 3 SE2 d 4 2 8 )

(2 0 1 8). Bu t as t h e Su p rem e Co u rt o f Geo rg i a h as ex pl ai n ed :

[T] h e fi rs t m ax i m o f eq u i t y i s t h at eq u it y fo l l o ws t h e l aw. Th u s, a co u rt

o f eq u i t y h as n o m o re ri g h t t h an a co u rt o f l aw t o act o n i t s o wn n o t i o n

o f wh at i s ri g h t in a p art i cu l ar cas e. W h ere ri g h ts are d efi n ed an d

es t ab l i sh e d b y ex i s t i n g l eg al p ri n ci p l es , t h ey m ay n o t be ch an g ed o r

u n s et t l ed i n eq u it y

. Al t h o u g h eq u i ty d o es s eek to d o co m p l et e ju s t i ce, i t

m u s t d o s o wi t h in t h e p aram et ers o f t h e l aw.

(Ci t at i o n s an d p u n ct uat i o n o m i t t ed .) Do li n g er v. Dr i ver , 2 6 9 Ga. 1 4 1

, 1 4 3 (4 ) (4 9 8

SE2 d 2 52 ) (1 9 9 8 ); s ee al s o No r th l a ke Ma n o r Co nd o

. As sn

. v. Ha r ves t As s et

s , 3 4 5 Ga.

Ap p

. 5 7 5

, 5 8 1

- 5 8 2 (2 ) (8 1 2 SE2 d 6 5 8 ) (2 0 1 8 ) (al t ho u gh co u rt h as d i s cret i o n to

f a s h i o n rem ed y u n d er g en eral p ri n ci p l es o f eq u i ty

, t h at d i scret i o n i s l i m i t e d b y

es t ab l i s h ed leg al p ri n ci p l es ). At t h i s s t ag e, Carri n g t o n h as n o t sh o w n t h at i t h as an

i n ad eq u at e rem ed y at l aw th at wo u l d perm it t h e t ri al co urt t o d i rect an eq u i t ab l e

12r e m ed y t o co rrect t h e al l eg ed erro r i n t he l i en p ri o ri t y

. See S ext o n , 3 5 1 Ga. Ap p

. a t

2 7 5 -2 7 6 (1 ) (eq u i t ab l e r e l i ef n o t warran ted w here t h ere was an ad eq u at e rem ed y at

l aw); s ee al s o McAr t hu r E l e c

. v

. C o b b Co un t y S ch o ol Di s t

. , 2 8 1 Ga. 7 7 3

, 7 7 4 -7 7 5

(6 4 2 SE2 d 8 30 ) (2 0 0 7 ); Co l s t o n v. Hu t ch i n s o n , 2 0 8 Ga. 5 5 9

, 56 0 -5 6 1 (6 7 SE2 d 7 6 3 )

(1 9 5 1). Acco rd i n g ly

, t h e t ri al co u rt erred in t he rel i ef i t o rd ered

, an d we m u s t v acat e

t h e t ri al co u rt ’ s ord er an d rem an d t h e c a s e f o r fu rt her p ro ceed i ng s

. No tab l y , i n i t s

o rd er g ran t i n g Carri n g to n ’ s m o t i o n fo r s u m m ary ju dg m en t

, t h e tri al co u rt d i d n o t ru l e

o n Carri n g to n ’ s cl ai m s fo r d ecl arat o ry ju d g m en t or eq ui t ab l e s u b ro g at i o n ; n o r d i d i t

m ak e an y fi n d in g s reg ard i n g an y p o t en t i al d efen s es U. S. B a n k m i g ht as s ert

. On

13rem an d, t h e t ri al co u rt s h o u ld co n s i d er t hes e cl ai m s

. 5 Del Pi a n o , 3 5 6 Ga. Ap p

. at 3 5 9

(2 ) (c).

2

. Fi n al l y , U. S. Ban k arg u es th at th e t ri al co urt ab u s ed i t s d i s cret i o n by

al l o wi n g h ears ay

ev i den ce fro m

n o n -p art y

Sel en e Fi n an ci n g . W e d i s ag ree.

Here, U . S. Ban k ad m i t t ed t h at t h e Sel en e reco rd s were au t h en t i c, b u t arg u ed

t h at t h ey were i n ad m i s s i b l e h ears ay

. Pret erm i t t in g wh e t h e r t h e do cu m en t s fro m

Sel en e were i n ad m i s s i b l e h ears ay , t h ere is n o rev ers ib l e erro r w h ere th e ev i d en ce i s

cu m u l at i v e. W

h it e H o r s e Pa r t n er

s v. Mo n r o e Co u n ty B d

. of Ta x A s s es s o r

s , 3 4 8 Ga.

Ap p . 6 0 3 , 6 0 8 -6 0 9 (2 ) (8 2 4 SE2 d 5 7 ) (2 0 19 ) (“ i t i s wel l es tab l i s h ed t h at ad m i s s i o n

o f h ears ay i s harm l es s wh en i t is cu m u l at i v e of l eg al l y ad m i s s i b l e ev i den ce s h o wi n g

5 See Mu r r ay v. Ch ul a k , 2 5 0 Ga. 7 6 5

, 7 6 9 (3 ) (3 0 0 SE2 d 4 9 3) (1 98 3 ) (act i o n

s eek i n g d ecl arat o ry ju d g m en t as t o pri o ri ty o f l i en s ); Ha yes v. EMC M

t g

. Co r p

. , 2 9 6

Ga. A p p. 7 0 9 (6 7 5 SE2 d 5 94 ) (2 0 0 9) (s am e); G MAC Mt g

. v. P h a r i s , 3 2 8 Ga. Ap p. 5 6

, 5 8 (1 ) (7 6 1 SE2 d 4 80 ) (2 01 4 )(“ [u ] n der th e d o ct ri n e o f eq ui t ab l e s u b ro g at i o n, wh ere i t was t h e i n t en t o f t h e p art i es t o s ub s t it u t e a new cred i t o r’ s ri g h t s fo r th e ri g h t s

o f t h e cred it o r t hat i s b ei n g p ai d o ff, t he n ew cred i t o r s tep s i n to t h e s h o es o f t h e o ld

cred i t o r i n t erm s o f p ri o ri t y .”) (ci t at i o ns an d p u n ct u at io n om i t t ed ); s ee al s o Cr o s s v. W i l mi n gt o n Tr u s t Na t. As s n

. , 3 6 0 Ga. Ap p

. 74 7

, 7 52 -7 53 (2 ) (8 6 0 SE2 d 2 1 2 ) (2 0 2 1 );

Ki m v. Fi r

st In t er co n t i n en t al Ba n k

, 3 2 6 Ga. Ap p

. 42 4

, 4 26 -4 2 7 ( 1 ) (a) (7 56 SE2 d

6 5 5 ) (2 0 14 ) (refo rm i ng d eed t o co rrect p ro p ert y d es cri p t i o n an d ap p l y in g eq u i t ab l e

s u b ro g at i o n t o co rrec t e r r o r i n p ri o ri ty o f d eed s ); S ecu r ed Eq u i t

y Fi n a n ci a l v. W a s h i n g t o n Mu t

. Ba nk

, 2 9 3 Ga. Ap p

. 5 0 (6 6 6 SE 2 d 5 5 4) (2 0 0 8 ) (eq u i t ab l e

s u b ro g at i o n cl ai m wh ere refi n an ci n g d eed an d s eco n d l i en were fi l ed in rev ers e o rd er

an d p art i es s o ug h t t o co rrect l i en pri o ri t y ); 5 9 CJ S M o rt g ag es § 2 9 9 (M arch 2 0 2 2 Up d at e).

14t h e s am e fact .”) (ci t at i o n an d pu n ct u at i o n o m it t ed ). Ou r rev i ew o f t h e reco rd co n fi rm s

t h at t h ere was o t h er pro p erl y ad m i t t ed ev i d en ce s ho wi n g th e i n ten t fo r t h e Refi l o an

t o ho l d t he fi rs t p ri o ri t y

. As s u ch

, an y erro r i n th e ad m i ss i on o f t h e Sel en e d o cu m en t s

i s h arm l es s

.

Fo r t h e reas o n s d i s cu s sed ab o v e, we co n cl u d e t h at t h e t ri al co u rt erred i n t h e

rel i ef i t gran t ed

. W e t herefo re v acat e t h e t ri al co u rt ’ s o r d er g ran t i n g s u m m ary

ju d g m en t t o Carri ng t o n , an d rem an d t h e cas e fo r fu rt h er p ro ceed i n g s co n s i s t en t wi th

t h i s o p i n i o n. 6

Ju d g men t va ca t ed a n d ca s e r ema nd ed

. Di ll a r d

, P. J., an d Mer ci er

, J., co n cu r

.

6 Becau se t he t ri al co u rt ex p res s l y d ecl i n ed t o co ns i d er t h e cl ai m s o f eq u i t ab l e

s u b o rd i n at i o n an d d ecl arat ory rel i ef, we d o n o t a d d res s t h e m eri t s o f U. S. Ban k ’ s

arg u m en t t h at th e t ri al co u rt erred b y d en y i n g i t s cro ss -m o t i o n fo r s um m ary ju d g m en t

o n t h o s e co u nt s. See S

a r r i o v. Gwi n n et t Co u n t

y , 2 7 3 Ga. 4 0 4, 4 0 6 (2 ) (5 4 2 SE2 d 4 8 5 ) (2 0 0 1); Ti f f a n y a n d To ma t o

, In c. v. W

el l s a n d McEl wee, P. C.

, 3 5 8 Ga. Ap p

. 3 1 1

, 3 1 6 (1 ), n

. 6 (8 5 5 SE2 d 5 5 ) (2 0 2 1) (“ i s s u es wh i ch h av e n o t b een ru l ed o n b y t h e t ri al co u rt

m ay n o t b e rai s ed o n ap p eal

. . . .W e are a co u rt fo r t h e co rrect i o n o f erro rs an d are n ot

au t h o ri zed t o i s s ue an ad v is o ry o p in i on ab o ut a po t en ti al erro r a t ri al co u rt m ay m ak e i n t he fu t u re.”) (ci t at i o ns an d p u n ct u at i on o m i t ted ).

15