Deutsche Bank National Trust Co. v. JP Morgan Chase Bank, N.A.
307 Ga. App. 307
| Ga. Ct. App. | 2010Background
- JP Morgan Chase Bank, N.A. filed suit against Deutsche Bank National Trust Company over competing foreclosures on property in DeKalb County.
- JP Morgan claimed superior title based on the 2004 security deed; Deutsche Bank claimed priority based on the 2001 security deed.
- A 2003 notarized warranty deed from IndyMac Bank, F.S.B. to Diaz, signed by Pamela Whales, purported to reconvey the property to Diaz and was recorded.
- Foreclosures occurred in 2004 (2004 Security Deed to OneWorld Mortgage) and 2004 (2001 Security Deed to Deutsche Bank), with Washington Mutual/JP Morgan as highest bidder in respective actions.
- The trial court granted JP Morgan summary judgment; the issue on appeal was whether JP Morgan was a bona fide purchaser for value and whether the Warranty Deed was valid.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether JP Morgan qualifies as a bona fide purchaser for value | JP Morgan should prevail as BFP because the Warranty Deed was regular and recorded, extinguishing the 2001 Deed. | Deutsche Bank contends the Warranty Deed is defective/forged, so JP Morgan cannot be a BFP. | Yes; JP Morgan is a bona fide purchaser for value. |
| Whether the Warranty Deed was facially regular and properly executed under OCGA 14-5-7(b) | Warranty Deed appeared regular on its face and conformed to statutory requirements. | Warranty Deed misidentified the grantor and failed statutory requirements; thus irregular or defective. | Warranty Deed was facially regular and properly executed. |
| Whether the Farrow Affidavit creates a genuine issue of material fact on forgery | Affidavit shows no forgery; Farrow lacked basis to assert forgery against Whales. | Farrow affidavit creates a factual dispute as to forgery. | No genuine issue; Farrow affidavit insufficient to show forgery. |
| Whether the Warranty Deed could cancel the 2001 Security Deed under OCGA 44-14-67(b)(2) | Cancellation statutes are not exclusive; BFP protection allows taking free of the 2001 Deed. | Warranty Deed must expressly reference the 2001 Deed to authorize cancellation under OCGA 44-14-67(b)(2). | BFP protection applies; cancellation statute not sole path to extinguishment. |
Key Cases Cited
- Mabra v. Deutsche Bank, etc., 277 Ga.App. 764, 627 S.E.2d 849 (2006) (regularity and reliance on recorded warranty deeds)
- Brock v. Yale Mortgage Corp., 287 Ga. 849, 700 S.E.2d 583 (2010) (fraudulent authority doctrine; forged vs. fraudulent possession of authority)
- Murray v. Johnson, 222 Ga. 788, 152 S.E.2d 739 (1966) (protection of bona fide purchasers for value; notice defenses)
- Farris v. NationsBank Mortgage Corp., 268 Ga. 769, 493 S.E.2d 143 (1997) (BFP protection from outstanding interests)
- Barron v. State, 12 Ga.App. 342, 77 S.E.214 (1913) (forgery vs. fraudulent assumption of authority distinction)