Vibert v. Bank of America, N.A.
327 Ga. App. 782
Ga. Ct. App.2014Background
- In 2007 Stephen and Sylinda Vibert refinanced their Jasper, GA property; the parties intended the security deed to encumber both spouses' interests.
- A bank representative met the Viberts at their home to execute the refinancing documents. Only Stephen signed the security deed; Sylinda was told by the representative her signature was not necessary.
- Countrywide (later Bank of America) sued and sought reformation of the security deed to add Sylinda's omitted signature.
- Bank of America moved for partial summary judgment on the reformation claim; the trial court granted it and ordered the deed reformed to include Sylinda as a signatory.
- The Viberts appealed, arguing the bank’s closing agent negligently told Sylinda she did not need to sign, and that negligence should bar reformation or preclude summary judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether deed may be reformed for mutual mistake | Viberts: bank rep’s negligence means reformation is improper | Bank: deed omitted signature by mutual mistake; reformation appropriate | Reformation allowed; mutual mistake established despite negligence |
| Whether complaining party’s negligence bars equitable reformation | Viberts: their negligence (relying on rep) precludes reformation | Bank: negligence does not defeat reformation absent prejudice to other party | Negligence of complaining party does not bar reformation when no prejudice shown |
| Whether summary judgment appropriate on reformation claim | Viberts: factual dispute over circumstances of signing precludes summary judgment | Bank: undisputed intent and mistake make summary judgment proper | Summary judgment affirmed — no genuine issue of material fact |
| Whether appellants would be prejudiced by reformation | Viberts: reformation could harm their interests | Bank: Viberts received loan proceeds and will not be prejudiced | No prejudice shown; reformation causes no demonstrated harm |
Key Cases Cited
- Secured Equity Financial v. Washington Mut. Bank, 293 Ga. App. 50 (summ. judg. standard; review de novo)
- Kim v. First Intercontinental Bank, 326 Ga. App. 424 (equity to reform applies to security deeds under OCGA § 23-2-25)
- Zaimis v. Sharis, 275 Ga. 532 (equity may reform for mutual mistake; negligence of complaining party immaterial if no prejudice)
- The Potter's Properties v. VNS Corp., 306 Ga. App. 621 (negligence by complaining party does not defeat reformation)
- DeGolyer v. Green Tree Servicing, 291 Ga. App. 444 (no prejudice where borrower received loan proceeds)
- Smith v. Royal Automotive Group, 675 So.2d 144 (reformation may supply omitted signature to reflect parties’ intent)