Dawson Pointe, LLC v. SunTrust Bank
312 Ga. App. 338
| Ga. Ct. App. | 2011Background
- SunTrust Bank sued Dawson Pointe, LLC on a promissory note and personal guarantees; trial court granted summary judgment for the bank.
- The court awarded $11,714,697 in principal and over $6.85 million in interest through judgment, plus post-judgment interest at 21.5% against all three defendants.
- Appellants defaulted on the loan and conceded the principal amount but contested the applicable rate of interest.
- The note provided a variable rate before default of 0.25% over WSJ Prime and 18% over the variable rate after default, totaling 21.5%.
- SunTrust submitted an affidavit and a Loan History showing the applicable rates over time; defendants argued this did not prove the WSJ Prime rate periods.
- The appellate court held the Loan History Report and affidavit were admissible, and that the 21.5% rate could be computed from the evidence.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did SunTrust prove the variable rate used? | SunTrust's affidavit and Loan History establish the applicable rate. | No competent evidence of Wall Street Journal Prime periods was shown. | Yes; evidence sufficient to prove the rate and support judgment. |
| Was the Loan History Report admissible to prove the rate for summary judgment? | Report qualifies as a business record establishing accrued interest. | Not enough to prove the rate without prime-rate periods. | Yes; admissible as a business record, enabling judgment on principal and interest. |
Key Cases Cited
- Garrett v. Atlantic Bank &c. Co., 157 Ga. App. 103 (1) (276 SE2d 152) (1981) (Ga. App. 1981) (absence of rate evidence may preclude summary judgment)
- Moore v. Wachovia Mortgage Co., 138 Ga. App. 646, 647 (1) (226 SE2d 812) (1976) (Ga. App. 1976) (in the face of debtor’s denial, jury question on rate)
- Ishak v. First Flag Bank, 283 Ga. App. 517, 519 (642 SE2d 143) (2007) (Ga. App. 2007) (bank affidavit and business-record evidence admissible)
- McIntosh v. McLendon, 162 Ga. App. 220, 221 (2) (290 SE2d 157) (1982) (Ga. App. 1982) (uncontested interest amount supports award as a matter of law)
- Read v. Benedict, 200 Ga. App. 4 (406 SE2d 488) (1991) (Ga. App. 1991) (no competent evidence to calculate prime rate; jury issue)
- Hinton v. Institutional Investors Trust, 133 Ga. App. 364, 367-368 (3) (211 SE2d 169) (1974) (Ga. App. 1974) (basis for calculating rate from affidavit date)