Timothy Sheridan and Lamphone Chomthipe-Sheridan filed suit against Mitsubishi Motors Credit of America, Inc. for trespass, negligence, and theft arising out of what they deemed to be an unlawful repossession of a car. The Sheridans purchased the car for value and without notice of any problems with title. But the car had
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previously changed hands as a result of a foreclosure sale, and after the Sheridans filed their suit, Mitsubishi, the original and true owner, successfully petitioned to set aside the foreclosure judgment. See
Mitsubishi Motors Credit of America v. Robinson & Stephens, Inc.,
The Sheridans purchased and obtained a Georgia title for a Mitsubishi Diamante that had been stolen, abandoned, foreclosed upon, and resold prior to the time they purchased it.
Mitsubishi Motors,
After the foreclosure was set aside, both Mitsubishi and SEIR moved for summary judgment in the tort action. The State Court of Fulton County denied both defendants’ motions. This Court granted Mitsubishi’s application for interlocutory appeal on April 14, 2006. 1 The question before us now, given that the foreclosure has been set aside, is whether Mitsubishi is entitled to summary judgment on the Sheridans’ claims.
“The standard for granting summary judgment is that the moving party must demonstrate that there is no genuine issue of material fact and that [the] undisputed facts, viewed in the light most favorable to the nonmoving party, warrant judgment as a matter of law.”
Martin v. North American Van Lines,
Mitsubishi contends that because the foreclosure has been set aside, the Sheridans cannot establish ownership of the vehicle, which is fatal to all of their claims. The Sheridans argue that the foreclosure of May 26,2000, extinguished Mitsubishi’s title to the car and allowed for its sale “free and clear of any and all liens and encumbrances.” Therefore they were the rightful owners of the Diamante from *793 October 13, 2000, when they purchased the car and title was issued to them, until August 31, 2004, when the foreclosure was set aside. They reason that because the foreclosure was binding on all parties until it was set aside, they are entitled to any and all damages accruing to them beginning with the wrongful repossession and running through that time.
1. This Court held that failure to provide Mitsubishi with notice of the foreclosure proceeding was a due process violation that was tantamount to lack of personal jurisdiction.
Mitsubishi Motors,
Thus, it has now been established that the foreclosure judgment is void and not binding. This Court thoroughly addressed the impact of void judgments in
Jowers & Son v. Kirkpatrick Hardware Co., 21
Ga. App. 751-752 (2)-(3) (
A void judgment is in reality no judgment at all. It is a mere nullity. It is attended by none of the consequences of a valid adjudication, nor is it entitled to the respect accorded to one. It can neither affect, impair, nor create rights. As to the person against whom it professes to be rendered, it binds him in no degree whatever, it has no effect as a lien upon his property, it does not raise an estoppel against him. As to the person in whose favor it professes to be, it places him in no better position than he occupied before; it gives him no new right, but an attempt to enforce it will place him in peril. As to third persons, it can neither be a source of title nor an impediment in the way of enforcing their claims. It is not necessary to take any steps to have it reversed, vacated, or set aside----The fact that an execution was issued on a void judgment and levied does not give vitality to the judgment.
(Citation and punctuation omitted.) See also
Canal Ins. Co. v. Cambron,
It may be true, as the Sheridans assert, that “a void judgment that is not void on its face is nevertheless ‘binding upon the parties until set aside by a direct attack in the court where it was obtained. (Cits.)’ Long v.
Long,
2. The Sheridans admit that their claims “turn on the issue of the effect of the . . . Foreclosure Order,” and they do not argue that they are entitled to pursue their claims in the face of a void judgment. In addition, we note that a plaintiff must be the true owner of property with title thereto to prevail in a trover action for the conversion of that property.
Clover Cable of Ohio v. Heywood,
The trial court erred by failing to enter summary judgment in favor of Mitsubishi.
Judgment reversed.
Notes
Although SEIR has filed an “amicus” brief, it has not appealed.
