Metro Atlanta Task Force for the Homeless, Inc. v. Ichthus Community Trust
298 Ga. 221
| Ga. | 2015Background
- Metro Atlanta Task Force for the Homeless ("Task Force") operated a downtown Atlanta shelter; it borrowed in 2001 and defaulted on loans held by ICE and Mercy.
- Forbearance agreements in 2009 expired; Ichthus (linked to defendant Fialkow) purchased the notes in Jan. 2010 using a loan from Premium Funding Solutions (PFS), foreclosed, and bought the property at a May 2010 sale.
- Task Force sued (and counterclaimed) asserting wrongful foreclosure, quiet title, RICO, tortious interference (with lenders, donors, and public funders), bad faith, and punitive damages; defendants moved for summary judgment.
- A special master found several claims should go to a jury; the trial court adopted that order but granted PFS leave to file a dispossessory action. Parties sought interlocutory review.
- This Court dismissed the appeal on the dispossessory-leave order as moot (separate Court of Appeals rulings) and affirmed in part/reversed in part the summary-judgment rulings, preserving multiple tort and wrongful-foreclosure issues for trial while rejecting certain claims (quiet title; interference with donor).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether trial court erred in allowing PFS to file a dispossessory action | PFTF: lifting stay improperly dissolves injunctive protection | PFS: entitled to pursue dispossessory; Howard precedent | Dismissed as moot — Court of Appeals decision and plea in abatement resolved dispossessory matters between parties |
| Whether civil conspiracy and related tort claims survive summary judgment | Task Force: defendants conspired to deprive it of property and funding | Defendants: no common design, insufficient evidence against Fialkow and others | Denied summary judgment as to conspiracy — genuine factual disputes; jury to decide |
| Whether tortious interference with a private donor (Dan Cathy) is actionable | Task Force: defendants' statements caused donor to stop giving | Defendants: donor relationship is a gift, not a business expectancy | Reversed — insufficient evidence that defendants fraudulently diverted a perfected gift; donor donations were limited and not shown to have been diverted |
| Whether tortious interference with lenders and public funding survives summary judgment | Task Force: defendants made misleading statements that induced lenders/City to withdraw support | Defendants: privileged speech/communications and lack of causation | Denied summary judgment — factual disputes about misrepresentations, influence on lenders and city, and malice; anti-SLAPP protection not resolved at summary judgment |
| Whether Task Force may pursue quiet title against PFS | Task Force: seeks to quiet title as equity remedy | PFS: Task Force lacks record title (foreclosure divested title); forbearance bars claim | Reversed — Task Force lacks present record title after foreclosure; quiet-title claim not viable |
| Whether wrongful-foreclosure claim can proceed without tender and on the merits | Task Force: tender excused due to defendants' tortious conduct; sale procured by improper means; sale price grossly inadequate | Defendants: plaintiff must tender and cannot show wrongful foreclosure | Affirmed in part — tender excused given factual disputes about tortious interference preventing tender; wrongful-foreclosure issues (price, conduct) are for jury |
| Whether RICO claim (Georgia RICO) survives summary judgment | Task Force: multiple predicate acts (bribery, intimidation, perjury, wire fraud) | Defendants: insufficient predicate acts proved; some predicate theories not pleaded | Affirmed — Task Force failed to prove two predicate acts; new wire-fraud theory was not pleaded/amended and cannot be considered on summary judgment |
Key Cases Cited
- Advanced Disposal Services Middle Georgia LLC v. Deep South Sanitation, LLC, 296 Ga. 103 (2014) (court must inquire into its jurisdiction sua sponte)
- Howard v. GMAC Mortgage, LLC, 321 Ga. App. 285 (2013) (issues on dispossessory actions while main case pending)
- Metro Atlanta Task Force for the Homeless, Inc. v. Premium Funding Solutions, LLC, 321 Ga. App. 100 (2013) (Court of Appeals reversal of writ of possession for procedural defect)
- Giles v. Swimmer, 290 Ga. 650 (2012) (de novo review standard on summary judgment)
- Cook v. Robinson, 216 Ga. 328 (1960) (definition and legal effect of civil conspiracy)
- Outside Carpets, Inc. v. Industrial Rug Co., 228 Ga. 263 (1971) (conspiracy questions typically jury issues)
- Benedict v. Gammon Theological Seminary, 122 Ga. 412 (1905) (equity may excuse tender where foreclosing party acted improperly)
- Dykes Paving & Constr. Co. v. Hawk’s Landing Homeowners Assoc., Inc., 282 Ga. 305 (2007) (quiet-title requires current record or prescriptive title)
- Giordano v. Stubbs, 228 Ga. 75 (1971) (grossly inadequate sale price plus attendant circumstances may justify setting aside foreclosure sale)