Denisha Semaj Johnson
24-62934
Bankr. N.D. Ga.May 23, 2025Background
- Denisha Semaj Johnson, a Chapter 13 debtor, was evicted by her former landlord, WOP 550 Northridge, LLC and Greystar ("Northridge"), after a complex dispossessory proceeding with confusion over the timing of a writ of possession and the automatic bankruptcy stay.
- After her eviction, Ms. Johnson filed multiple motions alleging stay violations, fraud, improper document handling, and other misconduct by Northridge related to the eviction and the writ of possession.
- At a February 2024 evidentiary hearing, the parties entered into a detailed settlement agreement on the record: Johnson would receive $6,000, have lease debts forgiven, and release all claims against Northridge and its attorneys.
- After the hearing, Ms. Johnson refused to accept the settlement, filing eight post-hearing motions challenging the agreement's enforceability on grounds including lack of writing, fraud, duress, lack of capacity, and not having counsel.
- Northridge moved to enforce the settlement and for sanctions; the bankruptcy trustee moved to dismiss Johnson's Chapter 13 case.
- The court held further hearings, considered new evidence, and ultimately needed to decide if the on-record settlement agreement should be enforced and if the bankruptcy case should be dismissed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Enforceability of Oral Settlement (No Writing) | No signed written agreement | Oral agreement on record is enforceable | Settlement is enforceable |
| Alleged Fraud or Misconduct by Northridge | Settlement tainted by fraud, document tampering, stay violation | No evidence of fraud/tampering; settled claims | No evidence of actionable fraud |
| Undue Influence/Duress/Lack of Capacity | Settlement agreed under stress, fatigue, duress, and lacked counsel | Free, voluntary assent given in court | No undue influence or lack of capacity |
| Reasonableness of Settlement & Damages | Settlement unreasonable given claimed harms | Settlement is reasonable, supported by record | Settlement terms reasonable and fair |
| Dismissal of Bankruptcy Case | Should remain open if relief not granted | Settlement moots largest claim, case serves no purpose | Chapter 13 case dismissed |
Key Cases Cited
- Sanders v. Graves, 297 Ga. App. 779 (oral/open court settlements enforceable if definite and unambiguous)
- Triple Eagle Assocs., Inc. v. PBK, Inc., 307 Ga. App. 17 (settlements in open court create enforceable contracts)
- Kindred Nursing Ctrs. Ltd. P’ship v. Chrzanowski, 338 Ga. App. 708 (mental capacity presumed, burden on challenger)
- Miller, Stevenson & Steinichen, Inc. v. Fayette Cnty., 190 Ga. App. 777 (duress requires more than simple unfairness or power imbalance)
- Byers v. McGuire Properties, 285 Ga. 530 (compromising disputed claims is sufficient consideration for contract)
