Kitchings v. Ameris Bank
309 Ga. App. 837
| Ga. Ct. App. | 2011Background
- Thomas Cannon, Sr.'s will establishes a trust system to support Christine Cannon during her life, with remainder to Thomas R. Cannon, Jr., Ralph James Cannon, and Kitchings.
- Co-trustees Christine Cannon and Thomas Cannon, Jr. transfer all trust property to Christine Cannon on January 9, 2002.
- Christine Cannon begins selling or mortgaging trust property in May 2005; she dies August 19, 2008.
- Under Christine Cannon's will, the bulk of the estate goes to Thomas Cannon, Jr.; Kitchings contends she and Ralph receive no interest in the remainder property.
- Kitchings sues multiple parties, later narrowing to Ameris Bank (security deed holder) and Patch Nursery (buyer), seeking to cancel deeds.
- Trial court grants summary judgment to both defendants on bona fide purchaser for value, laches, and prescriptive-title grounds; this appeal concerns the bona fide purchaser issue.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Patch Nursery and Ameris Bank were bona fide purchasers for value | Kitchings asserts notice of mismanagement invalidates status | Bank and Patch Nursery acted in good faith without notice | Yes; protected as bona fide purchasers for value |
Key Cases Cited
- Gallagher v. Buckhead Community Bank, 299 Ga.App. 622 (2009) (constructive notice limits to chain of title; regular on-face deeds protect bona fide purchasers)
- Brock v. Yale Mtg. Corp., 287 Ga. 849 (2010) (physician of bona fide purchaser status for security-deed grantees)
- Whiten v. Murray, 267 Ga.App. 417 (2004) (notice requiring inquiry; purchaser not charged with outside-chain interests)
- VATACS Group v. HomeSide Lending, 276 Ga.App. 386 (2005) (purchaser charged with constructive notice of recorded interests within chain)
- Deutsche Bank Nat. Trust Co. v. JP Morgan Chase Bank, 307 Ga.App. 307 (2010) (bank as grantee of security deed protected by bona fide purchaser concept)
- Farris v. Nationsbanc Mtg. Corp., 268 Ga. 769 (1997) (general rule: bona fide purchaser for value protected against unrecorded interests)
