Griffin v. STATE BANK OF COCHRAN
312 Ga. App. 87
| Ga. Ct. App. | 2011Background
- FLB sued MAL Rentals and Griffin on a promissory note and Griffin signed a personal guaranty.
- The loan was refinanced in 2009 with MAL Rentals as the debtor and stock pledged as collateral.
- A default occurred after CBWG was closed, due to decline in stock collateral value; FLB accelerated the loan.
- GRIFFIN and MAL Rentals claimed defenses including estoppel and filed a counterclaim for fraud and securities fraud.
- The trial court denied FLB’s summary judgment on collection claims but granted summary judgment on Griffin’s fraud and securities fraud counterclaims.
- On appeal, the court affirmed dismissal of Griffin’s counterclaims and reversed in part denial of FLB’s collection-claims summary judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Griffin’s fraud and securities fraud counterclaims survive | Griffin | FLB | Griffin's claims fail; summary judgment proper for FLB |
| Whether FLB is entitled to summary judgment on collection claims (Note/Guaranty and fees) | MAL Rentals and Griffin | FLB | FLB entitled to summary judgment on collection claims |
Key Cases Cited
- City of Bremen v. Regions Bank, 274 Ga. 733 (2002) (prima facie right to repayment; defenses must be valid)
- Baxter v. Fairfield Financial Svcs., 307 Ga.App. 286 (2010) (summary judgment standard; evidence viewed in movant’s favor)
- White v. BDO Seidman, LLP, 249 Ga.App. 668 (2001) (investor diligence and justifiable reliance considerations)
- Lilliston v. Regions Bank, 288 Ga.App. 241 (2007) (no duty to advise on venture viability; no confidential relationship)
- Herman Homes v. Smith, 249 Ga.App. 131 (2001) (merger/entire agreement clause affecting reliance)
- Tampa Bay Financial v. Nordeen, 272 Ga.App. 529 (2005) (promissory estoppel requires justifiable reliance; merger clause bars reliance)
- Keogler v. Krasnoff, 268 Ga.App. 250 (2004) (securities fraud elements; overlap with common-law fraud)
- Cox v. Athens Regional Med. Center, 279 Ga.App. 586 (2006) (implied covenant of good faith cannot contradict contract terms)