WELLS FARGO BANK, N.A. v. LaTOUCHE
340 Ga. App. 515
| Ga. Ct. App. | 2017Background
- LaTouche obtained a VA-guaranteed loan in 2002 secured by a deed with acceleration provision, serviced by Wells Fargo.
- Default occurred in 2010; Wells Fargo sent a default notice on March 7, 2010, and litigation ensued.
- Wells Fargo offered a loan modification; LaTouche did not accept; subsequent offers were rejected due to escrow requirement.
- Foreclosure by Wells Fargo occurred non-judicially on November 6, 2012 after extensive communications and filings by LaTouche.
- LaTouche sued Wells Fargo for breach of contract, wrongful foreclosure, negligence per se, and surprise; trial court granted some summary judgments and denied others.
- On interlocutory appeal, the Georgia Court of Appeals reversed in part, addressing VA regulations 38 C.F.R. § 36.4350(g) and related claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Wells Fargo breached contract by failing to comply with VA regulations | LaTouche contends VA regs were incorporated and breached. | Wells Fargo argues no breach because not required to perform face-to-face meeting here. | No breach; summary judgment proper on contract claim. |
| Whether failure to comply with VA regulations supports wrongful foreclosure claim | LaTouche asserts wrongful foreclosure due to VA-regulation noncompliance. | No violation of VA reg. noted; duties not breached. | Reversed denial of summary judgment; no breach supports wrongful foreclosure claim. |
| Whether Wells Fargo is liable for surprise under OCGA 23-2-54 | Wells Fargo misled by proceeding with sale while modification pending. | No fraudulent surprise; no justifiable reliance shown. | Surprise claim failed; summary judgment in Wells Fargo's favor. |
Key Cases Cited
- Norton v. Budget Rent A Car Sys., Inc., 307 Ga. App. 501 (Ga. App. 2010) (fraud elements; justifiable reliance required for summary judgment)
- Bates v. JP Morgan Chase Bank, NA, 768 F.3d 1126 (11th Cir. 2014) (HUD regulations incorporated into mortgage; pre-foreclosure breach depends on damages)
- Bright v. Nimmo, 756 F.2d 1513 (11th Cir. 1985) (implied action against lenders for VA-related terms; private action context)
- Lanier Home Ctr., Inc. v. Underwood, 252 Ga. App. 745 (Ga. App. 2001) (fraud elements; reliance required to survive summary judgment)
- Cowart v. Widener, 287 Ga. 622 (Ga. 2010) (summary judgment de novo standard)