Griffin Builders, LLC v. Synovus Bank
320 Ga. App. 307
Ga. Ct. App.2013Background
- Griffin Builders signed multiple notes with the Bank secured by two security deeds (Mill Pond and Griffin Walk) and later executed renewals for notes 18, 20, and 21.
- Foreclosures were conducted: Mill Pond Lot 5 foreclosed June 2, 2009 (Bank purchased for $281,320) and Griffin Walk Lots 2 and 5 foreclosed June 2, 2009 (Bank purchased for $76,352).
- The Bank later sold Griffin Walk Lots 2 and 5 to a third party for $80,000 on June 30, 2009; Griffin Builders sought recovery of excess proceeds from this sale.
- Griffin Builders alleged the Bank paid less than fair market value and pocketed the excess; the Bank moved for summary judgment in April 2011; judgment granted May 20, 2011.
- Griffin Builders argued two issues: (1) Bank’s obligation to disburse excess proceeds from Griffin Walk, and (2) effect of Mill Pond confirmation denial on Griffin Walk rights; appellate record lacked supporting evidence for some claims.
- Court affirmed, holding no excess proceeds established and denial of Mill Pond confirmation had no bearing on Griffin Walk sales; record deficiencies noted but did not preclude summary judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is the Bank obligated to disburse excess proceeds from Griffin Walk foreclosures? | Griffin Builders asserts excess proceeds were improperly retained. | Bank contends no excess proceeds exist; indebtedness closely matches sale price. | No excess proceeds established; Bank not liable. |
| Does denial of confirmation for the Mill Pond sale affect Bank's rights in Griffin Walk properties? | Denial may affect Bank's ability to pursue deficiency; could impact Griffin Walk rights. | Mill Pond confirmation denial has no bearing on Griffin Walk sales under separate deeds. | Denial of Mill Pond confirmation has no effect on Griffin Walk properties. |
Key Cases Cited
- Miller Grading Contractors v. Ga. Fed. Sav. & Loan Assn., 247 Ga. 730 (1981) (lender may purchase at its own sale; sale must be conducted in good faith)
- Kennedy v. Gwinnett Commercial Bank, 155 Ga. App. 327 (1980) (power of sale need not reflect market value; sale must be fair and in good faith)
- Cartersville Developers v. Ga. Bank & Trust, 292 Ga. App. 375 (2008) (inadequate price alone not enough to set aside sale absent aggravating circumstances)
- Hornsby v. Holt, 257 Ga. 341 (1987) (foreclosure sale effects and transfer of rights to purchaser)
- Interchange Drive, LLC v. Nusloch, 311 Ga. App. 552 (2011) (discussion of deficiencies and sale procedures in foreclosures)
- Ackerman & Co. v. Lostocco, 216 Ga. App. 242 (1995) (default no automatic grant of summary judgment; need evidence to support motion)
- Strickland v. Leake, 311 Ga. App. 298 (2011) (record on appeal duties; completeness of record matters)