Trendmark Homes, Inc. v. Bank of North Georgia
314 Ga. App. 886
| Ga. Ct. App. | 2012Background
- Trendmark executed a $342,786 promissory note to the Bank on Nov 5, 2009, with Rose as unconditional guarantor.
- On Jan 5, 2010, Trendmark executed two more notes for $457,920 and $1,101,650, with Rose again guaranteeing the debts.
- Each note was secured by security deeds on real property Trendmark planned to develop.
- Trendmark and Rose defaulted; the Bank sued for breach of contract on the notes and the guaranties.
- The Bank mov ed for summary judgment, attaching authenticated notes, guaranties, and account statements; Trendmark answered and submitted Rose’s affidavit in opposition.
- The trial court granted summary judgment; Trendmark appeals contending Rose’s affidavit created a factual dispute.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did Rose's affidavit create a genuine dispute about enforceability? | Trendmark | Bank | No; affidavit did not raise material factual disputes. |
| Whether the notes and guaranties establish a prima facie indebtedness. | Trendmark | Bank | Bank established prima facie debt; defenses not proven. |
| Whether parol or extrinsic evidence could modify the unambiguous notes/guaranties. | Trendmark | Bank | Modifications not allowed; no writing to modify. |
Key Cases Cited
- Newton v. Sibley, 273 Ga. App. 343, 615 S.E.2d 185 (Ga. App. 2005) (prima facie case from notes and defenses govern summary judgment)
- Vandegriff v. Hamilton, 238 Ga. App. 603, 604, 519 S.E.2d 702 (Ga. App. 1999) (recognizes standard for summary-judgment review)
- Collins v. Regions Bank, 282 Ga. App. 725, 726, 639 S.E.2d 626 (Ga. App. 2006) (ties promissory-note evidence to enforceability)
- Bentley v. Nat. Bank of Walton County, 175 Ga. App. 732, 733(1), 334 S.E.2d 331 (Ga. App. 1985) (notes may not be modified by parol evidence)
- Brooks v. McCorkle, 174 Ga. App. 132, 133, 329 S.E.2d 214 (Ga. App. 1985) (parol evidence cannot add conditions to notes)
- Wachovia Bank of Ga. v. Mothershed, 210 Ga. App. 853, 854(1), 437 S.E.2d 852 (Ga. App. 1993) (affirms summary-judgment framework on notes)
- Matjoulis v. Integon Gen. Ins. Corp., 226 Ga. App. 459, 486 S.E.2d 684 (Ga. App. 1997) (OCGA § 9-11-56 standard cited)