James v. Intown Ventures, LLC
2012 Fulton County D. Rep. 578
Ga.2012Background
- In 1964 James and Willie purchased property consisting of two lots and a home across the lots; James received the property in the divorce and Willie conveyed his interest to James.
- In 1997 Fulton County issued tax fi fas against Archie R. James, Jr. for property described as Baker Circle N.W.; James does not know Archie and is unfamiliar with Baker Circle N.W. or 0 Baker Circle N.W.
- The county sold 0 Baker Circle in November 2002 to Intown; in 2004 Intown filed a petition to quiet title naming James among others.
- The special master found James properly served but that she failed to plead; the court later held Intown had fee simple title free of James’ interest, and no appeal followed.
- James filed Chapter 13 bankruptcy in 2005; she did not list Intown as a creditor.
- In 2008 Intown sued for damages and ejectment; after bankruptcy discharge in 2009, stay lifted and Intown moved for partial summary judgment on ejectment; trial court granted it based on res judicata because James did not plead in the quiet title action
- The appellate court reverses, holding genuine issue exists whether James was a party to the quiet title action, thus precluding res judicata on that theory.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was the ejectment filing stayed by bankruptcy? | James argues automatic stay barred ejectment. | Intown claims no stay violation; stayed only after discovery of bankruptcy and actions resumed after discharge. | No stay violation; ejectment timely filed after discharge. |
| Did res judicata bar James from challenging the quiet title judgment? | James asserts she was not properly served; thus not a party. | Intown contends James was a party; judgment final and not challenged timely. | Issue of fact exists on whether James was a party; res judicata not warranted. |
| Was Intown required to file a proof of claim in James’ bankruptcy? | Intown should have filed a claim to preserve rights. | Intown was not a creditor to file a claim; title was adjudicated in quiet title. | Not required; Intown already adjudicated as owner in a final judgment. |
Key Cases Cited
- Waldroup v. Greene County Hosp. Auth., 265 Ga. 864 (1995) (three prerequisites for res judicata; identity of parties required)
- Webb & Martin, Inc. v. Anderson-McGriff Hardware Co., 188 Ga. 291 (1939) (party named on record not a party absent process or appearance)
- Walka Mountain Camp No. 565 v. Hartford Accident & Indemnity Co., 222 Ga. 249 (1966) (res judicata requires identity of parties and privity)
- Murphy v. Murphy, 263 Ga. 280 (1993) (void or voidable judgments attackable in any court)