Angel Business Catalysts, LLC v. Bank of the Ozarks
316 Ga. App. 253
| Ga. Ct. App. | 2012Background
- Bank of the Ozarks, as successor to the original lender, sought to recover on a promissory note guaranteed by the Guarantors.
- The note was executed Oct. 4, 2006, by Angel Business Catalysts in favor of Unity National Bank; Guarantors guaranteed the note.
- Unity failed to meet repayment, Unity was closed, and the FDIC was appointed as receiver.
- FDIC assigned its interest in the note, guarantees, and related loan agreements to the Bank; the Bank was substituted as plaintiff.
- Bank moved for summary judgment; the trial court granted it based on a special assets manager’s affidavit and attached documents.
- Guarantors challenged admissibility of the affidavit and documents as business records, and the sufficiency of the documents to establish amounts owed; Court affirmed the trial court’s ruling.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Admissibility of the affidavit and documents as business records | Guarantors argue the records are inadmissible. | Bank argues records fall under the Business Records Act and were kept in the regular course of business. | Admissible as business records under OCGA 24-3-14(b). |
| Whether payoff statements establish the debts owed by each Guarantor | Guarantors contend the statements do not prove debts for each Guarantor. | Bank attached payoff statements showing amounts owed, supported by custodian testimony. | Payoff statements qualified as business records and established the debt amounts. |
| Whether Guarantors failed to show genuine issues of material fact about the debt | Guarantors argue there are disputed items in the records. | Bank presented a prima facie case of debt; Guarantors did not rebut with specific facts. | Guarantors failed to create a genuine issue; summary judgment proper. |
| Standard of review for summary judgment | Review is de novo; in favor of nonmovant if material facts remain disputed. |
Key Cases Cited
- Ishak v. First Flag Bank, 283 Ga. App. 517 (Ga. App. 2007) (Business Records Act liberally interpreted; records may be admitted if kept in regular course.)
- Melman v. FIA Card Svcs., 312 Ga. App. 270 (Ga. App. 2011) (Affidavits and attached records can establish debt if records are proper business records.)
- Kensington Partners v. Beal Bank Nevada, 311 Ga. App. 196 (Ga. App. 2011) (Summary judgment proper where no genuine issue of material fact.)
- Dawson Pointe, LLC v. SunTrust Bank, 312 Ga. App. 338 (Ga. App. 2011) (Burden shifts to debtor to present genuine issues after creditor’s prima facie case.)
- Boyd v. Calvary Portfolio Svcs., 285 Ga. App. 390 (Ga. App. 2007) (Documents from one business admissible in regular course of business when transferred to another.)