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Denisha Semaj Johnson
24-62934
Bankr. N.D. Ga.
May 23, 2025
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Background

  • 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)
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Case Details

Case Name: Denisha Semaj Johnson
Court Name: United States Bankruptcy Court, N.D. Georgia
Date Published: May 23, 2025
Docket Number: 24-62934
Court Abbreviation: Bankr. N.D. Ga.