Latimore v. Vatacs Group, Inc.
317 Ga. App. 98
| Ga. Ct. App. | 2012Background
- Latimore filed to enjoin foreclosure and cancel debt on real property securing the note.
- In 1992 Raybon executed a $33,600 note at 17.5% interest with $529.06 monthly payments and a security deed.
- Raybon, in 1995 and again in 2000, filed for bankruptcy; monthly payments were reduced to $462.77, creating arrears.
- Remaining principal balance and arrearage were reported as $32,582.94 and $15,697.46 in 2000.
- Raybon died in 2003; Latimore acquired title under her will and foreclosure was commenced in 2009.
- Latimore paid $15,322.50 into the court registry; the trial court granted summary judgment to the Lender awarding that amount.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the loan was usurious due to lowered payments | Latimore argues lowered payments violated the 17.5% rate. | Vatacs contends the 5% per month rider precludes usury. | No usury; rider limited interest to 5% per month and no intent to charge more. |
| Whether awarding the registry funds was improper | Latimore asserts Lender did not seek those funds in litigation. | Lender exercised remedies consistent with default and sought foreclosure, not money in this action. | Reversed; trial court erred in awarding $15,322.50 to the Lender. |
| Whether summary judgment was proper despite pending discovery motion | Latimore claimed discovery would affect material facts on discovery rulings. | Lender contends discovery issues would not alter usury analysis or create genuine issues. | Summary judgment affirmed as to Latimore's injunction claim; discovery issues do not require reversal. |
Key Cases Cited
- Matjoulis v. Integon Gen. Ins. Corp., 226 Ga. App. 459 ((1) (486 SE2d 684) (1997)) (usury burden and lending intent considerations)
- Holt v. Rickett, 143 Ga. App. 337 (3 (238 SE2d 706) (1977)) (discussion of usury and contractual terms)
- Bellerby v. Goodwyn, 112 Ga. 306 (308 (37 SE 376) (1900)) (burden to show lender's intent to charge excessive interest)
- Byrd v. Equitable Life Assurance Society, 185 Ga. 628 (641 (4) (196 SE 63) (1938)) (contractual interest structures and usury analysis)
- Reese Developers, Inc. v. First State Bank, 306 Ga. App. 13 (14 (701 SE2d 505) (2010)) (precedent on comparable contractual terms)
- Parks v. Hyundai Motor America, 258 Ga. App. 876 (877 (1) (575 SE2d 673) (2002)) (interpretation of contractual remedies and usury implications)