D. Duston Tapley, Jr. v. Moritz D. Holloway
680 F. App'x 866
| 11th Cir. | 2017Background
- Charlie Sharpe Sr. died in 1955 with an unprobated will; his son Arthur had an inchoate interest in certain real property until executor assent.
- Over decades, property interests were conveyed and re-conveyed; Moritz Holloway obtained a 76.06-acre parcel by superior court orders, then conveyed interests to others including D. Tapley and Inverted, Inc.
- Corrected deeds were recorded in January 2007; on July 23, 2009, the estate’s administrators executed a deed of assent conveying Arthur’s 76.06 acres to Tidal Water (as Holloway’s assignee).
- Holloway filed bankruptcy (chapter 13, converted to chapter 7) on August 3, 2009; the chapter 7 trustee sued for fraudulent transfers under 11 U.S.C. § 548 and § 547 and related claims against Holloway, D. Tapley, J. Tapley, Tidal Water, Inverted, and others.
- The bankruptcy court granted the trustee a directed verdict; the district court affirmed. D. Tapley and J. Tapley appealed pro se, raising challenges about the § 548 reach-back date, fiduciary/joint-venture findings, damages valuation, and state-law statutes of limitation.
- The Eleventh Circuit affirmed, focusing on (1) the date of perfection under Georgia law (executor assent on July 23, 2009) placing the deed within § 548’s two-year reach-back, and (2) the fact that other argued bases for liability did not affect the trustee’s recovery amount.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the transfer was within § 548(a)(1)’s two-year reach-back | D. Tapley: pre-1998 Georgia probate law vests title at decedent’s death (1955), so transfers in 2006–07 fall outside two years | Trustee/Defendants: perfection occurs when executor assents; here assent was July 23, 2009, within two years of Aug. 3, 2009 filing | Court held assent perfected title July 23, 2009; transfer is within § 548’s two-year period |
| Whether earlier deeds conveyed title (sufficiency of legal description) | Plaintiffs: earlier conveyances valid and thus predate two-year window | Trustee: earlier descriptions were vague/invalid so title remained unclear until 2009 | Court accepted bankruptcy finding that earlier deeds were invalid/too vague; independent basis for decision not challenged on appeal |
| Whether fiduciary/joint-venture findings and related claims alter recovery | Plaintiffs: no fiduciary duty, no joint venture, so alternate liability theories fail | Trustee: alternate theories support avoidance and recovery; but recovery would be same under § 548 alone | Court declined to reach or reverse those issues because trustee’s recovery amount was the same under § 548 alone |
| Whether damages valuation and inclusion of Holloway were improper | D. Tapley: valuation lacked foundation; only one transfer fell within two years; Holloway should be included in damages | Trustee: damages based on property value recoverable; bankruptcy court’s valuation adequate | Appellate court refused to consider these arguments because D. Tapley failed to raise them below; no reversible error shown |
Key Cases Cited
- In re TOUSA, 680 F.3d 1298 (11th Cir. 2012) (standard of review for bankruptcy appeals)
- Sapuppo v. Allstate Floridian Ins. Co., 739 F.3d 678 (11th Cir. 2014) (appellant must challenge every ground or forfeits issues)
- Formby v. Farmers & Merchants Bank, 904 F.2d 627 (11th Cir. 1990) (issues raised first on appeal generally not considered)
- Palmer v. Radio Corp. of Am., 453 F.2d 1133 (5th Cir. 1971) (state law governs perfection timing for § 548 purposes)
- Oliver v. Irvin, 135 S.E.2d 376 (Ga. 1964) (executor assent perfects devisee’s inchoate title)
- Allan v. Allan, 223 S.E.2d 445 (Ga. 1976) (unprobated will can give devisee a legally protected inchoate interest)
- Lord v. Holland, 655 S.E.2d 602 (Ga. 2008) (deed must describe property sufficiently to convey title)
- Goldsmith v. Bagby Elevator Co., 513 F.3d 1261 (11th Cir. 2008) (no need to address alternate theory when outcome identical under winning theory)