FI FTH DI VI SI ON

M CFA DDEN, P. J.

, RA Y and RI CKM 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 ber 10, 2018



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A1 8 A0 91 6

. FLINT TIM BER, L. P. v

. AGSOUTH FARM CREDIT,

ACA.

M C F A D D E N , Pres id i n g J u d g e.

Th i s i s an ap p eal b y a b o rro wer fro m a gran t o f s u m m ary ju dg m en t to a l en d er

o n t he b orro wer’ s wro n g f u l f o r e cl o s u re cl ai m

. T he b o rro w er, Fl i n t T im b er, L. P.,

as s ert ed t h e cl ai m fo r w ro n g fu l fo recl o s u re as a co u n t ercl ai m i n a d efi ci en cy act i o n

b ro u gh t b y t h e len d er, A g So u t h Farm Cred i t

, A CA. A g So u t h m o v ed fo r s u m m ary

ju d g m en t o n t he w ro n g fu l fo recl o s u re co u n tercl ai m

, arg u i ng t h a t t h e t ri al co urt ’ s

earl ier co n f

i r m a t i o n o f t h e fo recl o s u re s al e p recl ud ed th e cl ai m u n d er ei t h er t h e

d o ct ri n e o f res ju di cat a o r t h e d o ct ri n e o f co l l at e r a l es t o p p el

. Th e t ri al co u rt ag reed

a n d g ran t ed s u m

m ary ju d g m en t t o Ag So u t h o n th at cl ai m

. W e fi n d n o e r r o r a n d

affi rm

.“ Su m

m ary ju d g m en t i s p ro p er wh en th ere i s n o g en u i n e i s su e of m at eri al fact

an d t h e m o v an t i s en ti t led t o ju d gm en t as a m at t er of l aw. W e rev i e w a g r a n t o f

s u m m a r y ju d g m en t d e n o vo an d t h e ev i d en ce, an d al l reas o n ab le co n cl u s i o n s an d

i n f e r e n c e s d rawn fro m it

, i n t he l ig h t m o s t fav o rab l e t o t h e n o n m o van t .” Zh o n g v.

PNC Ba n k, N. A. , 3 34 Ga. Ap p . 6 53 (1 ) (7 80 SE2 d 9 2 ) (2 0 1 5 ) (ci t at io n o m i t t ed ).

S o v i ewed

, t h e ev i d en ce s h o ws th at Fl i n t Ti m b er co n vey ed an i n t eres t i n

s ev eral t ract s o f l a n d t o A g So u t h i n a d eed t o s ecu re d eb t. W h en Fl i nt Ti m b er

s u b s eq u en t l y d efau l ted o n t h e l o an t h at wa s t h e s u b j ect o f t h e d eed t o s ecu re d eb t

,

Ag So u th fo recl o s ed o n t he l oan

, s o l d t h e p ro p ert y u n d er p o wer o f s al e p u rs u an t t o t h e

t erm s o f t h e d eed t o s ecu re d eb t

, an d i n s t i t ut ed a p r o c eed i ng t o co n fi rm t h e

fo rec l o s u re s al e. See OCGA § 4 4 -1 4 -1 6 1

. In th at p ro ceed i n g

, Fl i n t Ti m b er arg u ed

t h at t h e t ri al co u rt s h o u l d n ot co n fi rm t h e fo recl o s u re s al e b ecau s e, am o n g o t h er

t h i n g s

, t h e l eg al ad v ert i sem en t an d d eed u n der po wer o f s al e b o t h co nt ai ned an erro r

i n t h e l eg al d es cri p t i o n o f o n e o f t h e t ract s o f l an d

. Rat her t h an refer r i n g t o “ Pl at

Bo o k 3 8

, Pag e 1 4 3 ” as t h e l o cat i o n o f t he reco rd ed p l at d ep i ct in g t h at t ract o f l an d,

t h e ad v ert i s em en t an d d eed u n d er p o w er o f s al e o m it t ed o n e nu m eral fro m t h e p ag e

n u m b er, referri n g i n st ead to “ Pl at Bo o k 3 8

, Pag e 14 .” Th e t ri al co u rt

, h o w e v e r

,

2co n fi rm ed t h e s al e an d w e affi rm ed t h at ru l in g wi t h o u t an o p i n i o n i n Fl i n t Ti mb er

,

L. P. v. Ag

S o u th Fa r m Cr ed i t

, ACA , 3 3 7 Ga. Ap p . XXIV (2 0 1 6 ).

Aft er t h e t ri al co u rt co n fi rm ed t h e fo recl o s u re s al e

, A g S o uth br ought t he in s t an t

d efi ci en cy act i o n an d Fl i n t Ti m b er co u n t ercl ai m ed fo r wro n g fu l fo recl o s u re, b as i n g

i t s co u n tercl ai m o n t h e s am e l eg al -d es cri p t i o n erro r t h at i t h ad a s s e r t e d i n i t s

o p p o s i t i o n t o co n fi rm at i o n i n t h e earl i er p ro ceed i n g

. T h e t r i al co u rt g ran t ed

Ag So u th ’ s m o t i o n f

o r s um m ary ju d g m en t o n t h e wro n g fu l fo recl o s u re cl ai m

,

co n cl u d in g t h at Fl in t Ti m b er s o u g h t t o re-l i ti g at e i s s u es al read y ad j u d icat ed i n t h e

co n fi rm at i o n p ro ceed i n g . In h er o rd er, t h e t ri al co urt d i s cu s s ed b o t h t h e d o ct ri n e o f

res ju di cat a an d t h e d o ct ri n e o f co ll at eral es t o p p el

.

On ap peal

, Fl i n t Ti m

ber en u m erat es t he fo l l o wi n g erro r: “ Th e t ri al co u rt erred

i n ru l i n g t h at [t h e] wro n g fu l fo recl os u re cl ai m rep res en t s th e re[-] li t i g at io n o f a cl ai m

ad ju d i cat ed i n th e p rev i o u s co n fi rm at i o n p ro ceed i n g .” Bu t we fi n d t h at t h e d o ct ri n e

o f co l l at eral es t o p p el ap pl i es an d

, co n s eq u en t l y

, Ag So u t h was en t i t l e d t o s u m m ary

ju d g m en t o n t h e wro n gfu l fo recl o s u re cl ai m

.

Co l l at eral es t o p p el “ p recl u d es t h e re-ad j u d i cat i on o f an i s s u e t h at h as

p rev i o u s l y b een l i ti gat ed an d ad ju d i cat ed o n t h e m eri t s i n an o th er act i on bet ween t h e

s am e p art i es o r t hei r p ri v i es .” Bo d y of Ch r i s t Over co mi n g Ch u r ch o f Go d v. Br i n s o n

,

32 8 7 Ga. 4 8 5

, 4 8 6 (6 9 6 SE2 d 6 6 7 ) (2 0 1 0) (ci t at i o n o m i t t ed ). To b e p recl u d ed

, ei t h er

t h e i s s u e “ m

u s t a c t u a l l y h a v e b een l i t i g at ed an d d eci d ed i n t h e fi rs t act i o n

. . . o r

[m u s t b e an i s s u e t h at ] n e ces s ari l y h ad t o b e d eci ded i n o rd er fo r th e p rev i ou s

ju d g m en t t o h av e b een ren d ered .” Mo r r is o n v. Mo rr i s o n

, 2 8 4 Ga. 1 1 2

, 1 1 4 (3 ) (6 6 3

SE2 d 7 1 4) (2 0 0 8) (ci t at i o n an d em p h as i s o m it t ed ).

To reco v er ag ai n s t Ag So u t h fo r wro n g fu l f o r e c l o s ure, Fl i n t Ti m

b er m u s t

d em o n s t rat e, am o n g o t her t h in gs

, t h at Ag So u t h b reach ed a d u t y t o ex erci se fai rl y an d

i n g o o d fai t h t h e p o wer o f sal e p ro v i d ed fo r i n t he p art ies ’ d eed t o s ecu re d eb t

. See

W el l s Fa rg o Ba n k, N. A. v. Mo l i n a -S a l a s

, 3 3 2 Ga. Ap p

. 64 1

, 6 4 2 (1 ) (7 7 4 SE2 d 7 1 2 )

(2 0 1 5) (cl ai m

fo r wro n g fu l fo recl o s u re ari s es fro m fo recl o s i n g p art y ’ s b reach o f i t s

d u t y t o e x e r c i s e p o wer o f s al e fai rl y an d i n g o o d fai t h ). Fl i n t Ti m b er arg u es t h at

Ag So u th b reach ed t h is d u t y b y u s i n g

, in t h e ad v ert i s em en t an d t h e d eed u n d er p o wer

o f s a l e, t h e l eg al d es cri p ti o n th at i n co rrect ly referred to “ Pl at Bo o k 3 8

, Pag e 1 4 ”

rat h er t h an “ Pl at Bo o k 3 8

, Pag e 1 4 3 .” In d eed

, Fl i n t Ti m b er as s ert s in it s ap p el l at e

b ri ef t h at t he erro neo u s l eg al d es cri p t io n i s t h e “ cru x o f [i ts ] co u n tercl ai m .”

In t h e earl i er co nfi rm at i o n p ro ceed i n g

, t h e t ri al co u rt ad ju d i cat ed th e i s s u e o f

t h e effect o f t h e l eg al d es cri p t i on o n t h e fai rn es s an d v al i d i t y o f t h e fo recl o su re s al e.

In co n cl u d i n g th at “ al l co n d it i o n s t o co n fi rm at i o n of th e s al e h a[d ] b een m et ,” t h e t ri al

4co u rt in t h e earl i er p ro ceed i n g ex p res s l y det erm i n ed th at “ no erro r i n t h e l eg al

ad v ert i s em en t ch il l ed t h e b i d d i n g at t h e s al e o r o th erwi se ren d ered t he fo recl o s u re

wro ng fu l o r i n v al id

. ” It i s t ru e t h at t h e t ri al co urt ’ s ord er i n th e earl i er p ro ceed i n g d id

n o t ex pres s l y ad d res s th e p res en ce of t he erro r i n t h e d eed u n d er p o wer o f s al e. Bu t

Fl i n t Ti m b er arg u ed t h at i ss ue i n t h e co n fi rm at i o n pro ceed i n g, as s ert i n g at t h e h eari n g

t h at t h e erro r i n t h e d eed u n der p o wer o f s al e i n v al i d at ed t h e co n v ey an ce o f t h e t ract

i n t h e fo recl o s u re s al e. T h e t ran s fer o f t h e t ract u nd er th e deed un d er p o wer o f s al e

m u st h av e occu rred b efo re t h e t ri al co u rt co u l d co n s i d er t h at t ract t o h av e b een s o ld

o n fo recl o s u re. Ta mp a In ves tm e n t G r o u p v. Br an ch Ba n ki n g & Tr u s t Co

. , 2 9 0 Ga.

7 2 4

, 7 27 (1 ) (7 2 3 SE2 d 6 7 4 ) ( 2 0 1 2 )

. S o t h e i s s ue o f wh et h er t h e erro r i n t h e d eed

u n d er po wer o f s al e affect ed t h at co n v ey an ce “ n eces s ari ly had t o b e d eci d ed i n o rd er

fo r t h e p rev i ou s ju d g m en t [co n fi rm i n g t h e fo recl os u re s al e] t o h av e b een ren d ered .”

Mo r r i s o n , 2 8 4 Ga. at 1 1 4 (3 ) (ci t at i o n an d em p h as i s o m i t t ed ).

“ It i s ax i o m at i c t h at t he s am e i s s u e can n o t b e re[-] l it i gat ed ad i n fi n i t u m .” Na l l y

v. Ba r t ow Co u n t

y Gr a n d Ju r o r

s

, 2 8 0 Ga. 7 9 0

, 7 9 1 (3 ) (6 3 3 SE2 d 3 37 ) (2 0 0 6 )

(ci t at i o n an d p u n ct u at i o n o m i t t ed ). Th e a r g u m e n t s Fl i n t Ti m b er as s ert s on ap p eal

fro m t h e s u m

m ary ju d g m en t ru l i n g i n t h i s cas e are t h e arg u m en t s th at th e t ri al co u rt

reject ed i n th e co n fi rm at i o n p ro ceed i n g

. G i v en t h at p ri o r ad ju d i cat i o n

, th e t ri al co u rt

5d i d no t err i n g ran t i n g s u m m ar y j u d g m en t to Ag So u t h o n t he wro ng fu l fo recl o s u re

co u nt ercl ai m

.

Ju d g men t a f f i r m ed . Ra y a n d Ri ckma n , JJ., co ncu r

.

6