JIG Real Estate, LLC v. Countrywide Home Loans, Inc.
289 Ga. 488
Ga.2011Background
- JIG Real Estate, LLC, high bidder at a foreclosure sale of Garland property, seeks delivery of the Deed Under Power.
- Countrywide Home Loans had initiated foreclosure on Garland's mortgage after default.
- Prior to the scheduled March 6, 2007 sale, Garland cured the default and the sale was canceled/recinded.
- JIG was notified two days after the sale that OCGA § 9-13-172.1 authorized rescission of the sale and bid funds were tendered back.
- JIG rejected the funds and filed suit, challenging the statute's constitutionality and seeking the Deed Under Power.
- Trial court granted summary judgment for Countrywide; issue on appeal is whether OCGA § 9-13-172.1 is constitutional and properly applied.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether OCGA § 9-13-172.1 authorizes rescission under the cited grounds | JIG argues statute only limits damages, not grounds for rescission. | Countrywide contends statute authorizes rescission under (c) and (d) if conditions are met. | Statute authorizes rescission under specified grounds; plain meaning upheld. |
| Whether OCGA § 9-13-172.1 is void for vagueness | JIG asserts terms like eligibility and grounds are vague to foreclosed buyers. | Countrywide asserts statute provides fair notice and is not vague. | statute not void for vagueness; reasonable clarity to common intelligence |
| Whether the statute can be applied retroactively to add powers to a preexisting transaction | JIG claims retroactivity would extend powers not available at sale. | Countrywide notes sale occurred after effective date; retroactivity not an issue. | No retroactivity issue; sale occurred after effective date. |
| Whether the statute's damages limitation precludes other remedies | JIG argues broader remedies may be available beyond limited damages. | Statute limits damages to bid funds plus interest; specific performance not available. | Damages limited to bid funds with interest; no specific performance remedy. |
Key Cases Cited
- Catoosa County v. R.N. Talley Properties, 282 Ga. 373 (2007) (vagueness and fairness standards for statutes)
- Jekyll Island-State Park Auth. v. Jekyll Island Citizens Assn., 266 Ga. 152 (1996) (statutory vagueness standards; fair notice)
- Hollowell v. Jove, 247 Ga. 678 (1981) (statutory construction where plain meaning controls)
- Johnson v. Hinson, 188 Ga. 639 (1939) (consideration issues in forbearance/agreements)
- Davenport v. Davenport, 243 Ga. 613 (1979) (legislative drafting and reasonable interpretation)
- Sears v. State of Ga., 232 Ga. 547 (1974) (legislative power and scope of statutes)
- Garden Club of Ga. v. Shackelford, 274 Ga. 653 (2002) (presumption of constitutionality and non-constitutional bases)
- Jekyll Island-State Park Auth. v. Jekyll Island Citizens Assn., 266 Ga. 152 (1996) (definition and interpretation of vagueness standards)