Brooks v. Branch Banking & Trust Co.
107 F. Supp. 3d 1290
N.D. Ga.2015Background
- Plaintiff obtained a mortgage loan from Defendant to purchase rental property subject to the dispute.
- Defendant removed the action from Georgia state court to the Northern District of Georgia on Jan. 21, 2015.
- Plaintiff alleged loan modification efforts and that Defendant refused to negotiate or properly account for payments.
- Plaintiff claimed Defendant engaged in deceptive loan modification practices and improper crediting of payments and escrow.
- Plaintiff alleged harassment of tenants and disclosure of banking status, allegedly to influence cash flow and the loan's performance.
- Court granted Defendant’s motion to dismiss and denied Plaintiff’s motion to amend and for discovery.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Breach of contract and related claims | Plaintiff seeks breach and related relief based on a loan/modification process. | Plaintiff fails to identify a valid contract or specific breached provision. | Breach of contract claim dismissed. |
| Promissory estoppel | Plaintiff relied on promised loan modification terms. | No enforceable promise alleged. | Promissory estoppel claim dismissed. |
| Unjust enrichment | Defendant benefited from Plaintiff’s payments without proper credit. | Existence of a contract defeats unjust enrichment claim. | Unjust enrichment claim dismissed. |
| Conversion | Defendant wrongfully retained payments and funds. | Money is fungible; no identifiable fund alleged. | Conversion claim dismissed. |
| Intentional interference with contract/business relations | Defendant interfered with tenants and contracts tied to the property. | Defendant is not a stranger to the contracts/business relations. | Tortious interference claim dismissed. |
| Negligence and intentional infliction of emotional distress | Defendant breached duties and caused damages. | No duty, breach, causation, or severe distress shown. | Negligence and IIED claims dismissed. |
Key Cases Cited
- Taylor v. Powertel, Inc., 250 Ga.App. 356, 551 S.E.2d 765 (Ga. App. 2001) (conversion and damages standards; possession and funds concepts)
- S & A Indus., Inc. v. Bank Atlanta, 247 Ga.App. 377, 543 S.E.2d 743 (Ga. App. 2000) (negligence and contract interplay; improper to infer duties)
- Disaster Servs., Inc. v. ERC P’ship, 228 Ga.App. 739, 492 S.E.2d 526 (Ga. App. 1997) (interference with contract/business relations; stranger to contract rule)
- Lake Tightsqueeze, Inc. v. Chrysler First Fin. Servs. Corp., 210 Ga.App. 178, 435 S.E.2d 486 (Ga. App. 1993) (non-stranger to contract; limits on tort claims arising from loan relations)