Richards v. Wells Fargo Bank, N.A.
325 Ga. App. 722
| Ga. Ct. App. | 2014Background
- Richards executed a security deed (12/19/2003) granting Wells Fargo power of sale after default.
- Wells Fargo filed for declaratory relief to confirm the validity of the security deed and power of sale.
- Richards filed several affidavits (3/24/2011 revocation; 6/27/2011 forgery) challenging Wells Fargo’s rights.
- Wells Fargo amended its complaint (9/10/2012) adding a Quiet Title claim to remove alleged clouds on title.
- Wells Fargo moved for summary judgment (9/24/2012); Richards filed a motion for leave to file counterclaims (12/5/2012).
- Trial court granted summary judgment (1/29/2013) and held Richards’s counterclaims moot; on appeal, judgment affirmed in part, vacated in part, remanded for a ruling on the merits of the counterclaims
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the waiver of rights in the security deed validates nonjudicial foreclosure | Richards argues absence of waiver defeats power of sale | Wells Fargo asserts power of sale exists regardless of waiver absence | Summary judgment proper; power of sale valid |
| Whether a power of sale is revocable by fraud/affidavit | Affidavits of forgery may void power | Power of sale is a power coupled with an interest and not revocable at will | Power not voided by mere affidavits; revocability limited |
| Whether Richards conveyed the power of sale to Wells Fargo as intended | Intention to convey the power of sale is disputed by Richards' filings | Richards voluntarily signed the Security Deed; conveyance presumed | Record shows execution; no reversible issue; lack of below ruling reviewable |
| Whether declaratory relief was improper where a quiet title action was pending | Quiet Title claim appropriate to clear title issues | Declaratory relief should resolve title validity and clouds | No error; Declaratory relief aligned with Quiet Title claim |
| Whether the trial court erred in denying Richards leave to file counterclaims as moot | Richards sought compulsory counterclaims; discretion under OCGA 9-11-13(f) | Mootness because summary judgment resolved the action | Remand to exercise discretion on merits of counterclaims; not moot |
Key Cases Cited
- Gurr v. Gurr, 198 Ga. 493 (Ga. 1944) (power of sale is a power coupled with an interest)
- Summer-Minter & Assoc. v. Giordano, 231 Ga. 601 (Ga. 1973) (reinforces limits on amendment after judgment)
- Unnever v. Stephens, 142 Ga. App. 787 (Ga. App. 1977) (authority on counterclaims/limitations)
- Naraine v. City of Atlanta, 306 Ga. App. 561 (Ga. App. 2010) (treatment of omitted counterclaims and related cites)
- Chastain v. Baker, 255 Ga. 432 (Ga. 1986) (general summary judgment standards and standards corroboration)