Bank of America, N.A. v. Johnson
299 Ga. 861
| Ga. | 2016Background
- Bobby Johnson (pro se) filed a verified quiet-title suit alleging he is the rightful owner of 1721 Gallup Drive and that recorded documents claiming an interest in the property are clouds on title.
- Johnson attached to his complaint an assignment purportedly transferring a security deed from MERS to Bank of America (BOA). He referenced, but did not attach, the underlying security deed recorded Aug. 2, 2006.
- Johnson alleged, on information and belief, that Pine State Mortgage (listed as lender) had relinquished its rights and was dissolved, so any assignment to BOA conveyed no interest.
- BOA moved to dismiss under OCGA § 9-11-12(b)(6), attaching the assignment and the underlying security deed; the deed named MERS (not Pine State) as grantee/holder of the security instrument.
- Trial court dismissed with prejudice; the Court of Appeals reversed for lack of standing reasoning (plaintiff can challenge assignments as clouds on title). The Supreme Court granted certiorari to address standing issues left open in Ames.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to challenge assignment of security deed | Johnson: Pine State relinquished rights and thus assignment to BOA conferred no interest; assignment clouds title | BOA: Debtors generally lack standing to challenge assignments to which they are not parties; dismissal for failure to state a claim | Court: Johnson conceded the record deed named MERS as grantee and that he remains debtor; Pine State was lender, not deed holder, so Johnson’s allegations about Pine State are irrelevant and he lacks a viable claim; complaint properly dismissed |
Key Cases Cited
- Ames v. JP Morgan Chase Bank, N.A., 298 Ga. 732 (interpretation of debtor standing to challenge assignments; question partly reserved)
- Montgomery v. Bank of America, 321 Ga. App. 343 (debtors generally lack standing to challenge assignments they are not parties to)
- Johnson v. Bank of America, N.A., 333 Ga. App. 539 (Court of Appeals decision holding non-party property owner may challenge assignments as clouds on title; reviewed and distinguished by the Supreme Court)