The Ford Plantation Club, Inc. v. Scott
4:16-cv-00309
S.D. Ga.Sep 22, 2017Background
- Plaintiffs Ford Plantation Association and Ford Plantation Club operate and manage common areas and club amenities in a residential development and charge fees/assessments.
- Michael and Nancy Scott purchased property in the development in 2002 and became Club members, incurring fee and assessment obligations which they later failed to pay.
- Plaintiffs sued in Bryan County Superior Court seeking over $150,000 in unpaid fees, late charges, and interest; defendants removed the case to federal court on diversity grounds.
- In their answer, the Scotts asserted a counterclaim for deceit (fraudulent inducement), alleging Plaintiffs made affirmative misrepresentations about operation, amenities, and property value to induce the purchase.
- Plaintiffs moved to dismiss the deceit counterclaim as time-barred under Georgia’s four-year statute of limitations (O.C.G.A. § 9-3-31) and argued the alleged statements were nonactionable opinions/puffery.
- The Scotts responded briefly, arguing tolling under O.C.G.A. § 9-3-96 because Plaintiffs’ delay in suing constituted a fraud that concealed the claim; they provided no legal authority or factual allegations showing concealment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the fraudulent-inducement counterclaim is time-barred under Georgia’s 4-year statute | The counterclaim is untimely under O.C.G.A. § 9-3-31 | Tolling applies under O.C.G.A. § 9-3-96 because Plaintiffs’ prior non-enforcement concealed the claim | Dismissed: claim untimely; no alleged concealment to toll limitations |
| Whether alleged statements are actionable fraud rather than nonbinding sales puffery | Statements were not pleaded as actionable with required specificity; some alleged statements are opinions/future performance | Scotts contend misrepresentations about operation/value induced purchase | Court did not reach merits because claim was dismissed as untimely; noted defendants failed to plead elements of fraud or identify any concealment artifice |
Key Cases Cited
- Ashcroft v. Iqbal, 556 U.S. 662 (pleading must state a plausible claim; labels and conclusions insufficient)
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (complaint must plead factual content permitting plausible inference of liability)
- Sinaltrainal v. Coca-Cola Co., 578 F.3d 1252 (Eleventh Circuit discussing plausibility and pleadings)
- City of McCaysville v. Cardinal Robotics, LLC, 263 Ga. App. 847 (Georgia law: fraudulent-inducement claims governed by four-year statute and tolling requires concealment)
- Kerce v. Bent Tree Corp., 166 Ga. App. 728 (fraudulent-inducement accrues at contract execution; concealment, not original fraud, tolls limitations)
- Serchion v. Capstone Partners, Inc., 298 Ga. App. 73 (enumeration of fraud elements under Georgia law)
