Montgomery v. BarrowMontgomery v. Barrow
Lead Opinion
Barrow & Byrd Properties, Inc. (B & B), purchased approximately 223 acres of land from the estate of Cauley Barrow for $247,800. Lamar and Robbie Ann Montgomery, as executors of the estate of Robert Barrow (Executors), filed an action to quiet title and for other relief, claiming that Robert Barrow, who was the son of Cauley Barrow, owned the property from 1975 until his death in 2000, pursuant to four unrecorded warranty deeds transferring the property from his father to him. B & B answered that it was a bona fide purchaser for value without notice of the unrecorded deeds. A jury trial was held solely as to the issue of whether Robert Barrow had owned the property. The jury returned a verdict finding that Robert Barrow had not owned the property by prescription, but that he had owned it at the time of his death by virtue of the unrecorded deeds. Several months later, the parties filed opposing motions for summary judgment on the issue of whether B & B was a bona fide purchaser without notice of the unrecorded deeds. The trial court denied the motion filed by Executors, but granted summary judgment in favor of B & B. Executors appeal.
1. Executors contend that the trial court erred in denying their summary judgment motion and granting summary judgment in favor of B & B because the evidence shows that B & B had notice sufficient to preclude it from being a bona fide purchaser for value without notice. “A bona fide purchaser for value is protected against outstanding interests in land of which the purchaser has no notice. [Cits.]” Farris v. Nationsbanc Mtg. Corp.,
“[a]ny circumstance which would place a man of ordinary prudence fully upon his guard, and induce serious inquiry, is sufficient to constitute notice of a prior unrecorded deed. And a younger deed, taken with such notice, acquires no preference by being recorded in due time.” [Cit.]
Price v. Watts,
The dissent claims that, in addition to the evidence cited by Executors, there is other undisputed evidence in the record which demands summary judgment in favor of Executors. According to the dissent, most telling is the evidence that Homer Barrow discussed buying the property from Robert Barrow. Dennis Verdan, a longtime friend of Robert Barrow, gave hearsay testimony claiming that Robert Barrow told him that Homer Barrow had offered to buy the property. When Homer Barrow was asked about that claim, he testified that he did not remember making such an offer. He explained that Robert Barrow called him and asked for help paying off debts owed on the property by either buying it or helping sell it, but he did not believe that he would have offered to buy the property at that point because of the uncertainty concerning those debts. He further testified that, at that time, he did not know who owned the property, and that Robert Barrow never claimed ownership or mentioned the unrecorded deeds to him.
To prevail at summary judgment underOCGA § 9-11-56 , 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. [Cit.]
Lau’s Corp. v. Haskins,
However, the evidence, including Executors’ repeated failure to provide copies of the unrecorded deeds, does not demand a further finding that the presumption of B & B’s good faith purchase for value has been overcome, nor does it require a conclusion that Executors are entitled to judgment as a matter of law. In arguing for a different result, the dissent states that “the majority . . . relies on selected bits of the extensive record, rather than considering the record as a whole.” (Dissent, p. 902, n. 1) Contrary to that statement, we have in fact considered the whole record. Moreover, it is precisely because there are bits of evidence in the record which create genuine issues of material fact that summary judgment is not appropriate in this case. It is not the role of this Court, but is the role of a jury to sort through the evidence, resolve conflicts, and make findings of fact based on the evidence it finds credible.
“ ‘ “A jury in arriving at a conclusion upon disputed issues of fact may believe a part of the testimony of a witness or witnesses, and reject another part thereof, it being their duty to ascertain the truth of thecase from the opinion they entertain of all the evidence submitted for their consideration.” [Cit.]’ [Cit.]”
Southern R. Co. v. Newman,
2. B & B also argues that Executors are precluded from asserting title to the property based on estoppel. The estoppel by conduct doctrine is codified in
Judgment affirmed in part and reversed in part.
Concurrence Opinion
concurring in part and dissenting in part.
I agree with much of the majority’s discussion of the applicable legal analysis and with part of the majority’s results. I concur in Division l’s holding that the trial court erred in concluding as a matter of law that B&B was a bona fide purchaser for value without notice of the prior claim to the property
The majority asserts that the Executors’ challenge is based entirely on the testimony of Homer Barrow, one of B&B’s owners. See Majority Op. at 897. Homer Barrow’s testimony was certainly damaging, and perhaps even fatal, to B&B’s claim that it was a bona fide purchaser for value without notice of Robert Barrow’s prior claim of ownership of the property. But the record also contains numerous additional facts from a variety of sources — all undisputed — that the majority unaccountably ignores or improperly discounts. These undisputed facts lead inexorably to the conclusion that B&B knew — had notice — of Robert Barrow’s claim in life, and the Executors’ claim on behalf of his estate, that he owned the property by way of four unrecorded deeds from his father, Cauley Barrow.
Cauley Barrow died in 1983. B&B contends that it validly purchased the property from Cauley Barrow’s estate, through Kenneth Barrow, over 20 years later, in 2004. Thirty years before B&B purported to buy the property, in the mid-1970’s, Cauley Barrow divided his property between his two sons who followed him into farming, deeding Kenneth Barrow approximately 205 acres and deeding Robert Barrow approximately 223 acres. Robert Barrow did not record his deeds, but Kenneth Barrow admitted in his deposition and at trial that he knew of those deeds.
It is undisputed, but unacknowledged by the majority, that Homer Barrow and his business partner in B&B both grew up in the area, and both knew that Robert Barrow had lived on the property and farmed all of it for almost 20 years after Cauley Barrow’s death until his own death in 2000.
It is also undisputed, but unacknowledged by the majority, that Homer Barrow and his business partner both knew that the federal government had lent Robert Barrow hundreds of thousands of dollars based on his claimed ownership interest in the farmland. Their title searches did not reveal the four unrecorded deeds from Cauley Barrow to Robert Barrow, but the title searches did show the deeds to secure debt recorded by the government, which listed the property as collateral and were signed by Robert Barrow as the borrower. Knowledge that the government had made substantial loans to Robert Barrow secured by his claimed interest in the property is an obvious source of notice of such a claim.
It is also undisputed that, after Robert Barrow died and B&B was considering purchasing the property, Homer Barrow knew enough about Robert Barrow’s claim of ownership to ask Eddie Davis, Robert Barrow’s attorney in life who was also the attorney for his estate, whether there was “a deed we needed to know about” before B&B purchased the property from Cauley Barrow’s estate. Davis, as counsel for the Executors, repeatedly told Homer Barrow, prior to the 2004 closing, that Robert Barrow’s estate claimed ownership of the property by virtue of the four unrecorded deeds from Cauley Barrow. When Homer Barrow asked to see the deeds, Davis told him that they had burned up in a house fire in 2003. The majority refers to the destruction of the deeds before the closing as something the “Executors eventually claimed,” Majority Op. at 897, but the fact that the deeds were destroyed in a house fire in 2003 is not disputed by the parties.
The majority emphasizes that the Executors “repeatedly” failed to provide copies of
Most telling of B&B’s notice, however, is the undisputed fact that one of the partners in B&B discussed buying the property from Robert Barrow, or selling it as his agent, when he was still alive. Robert Barrow was having financial difficulties because of the government loans, and he approached his nephew, Homer Barrow of B&B, about selling the farm. Homer Barrow admitted that he discussed buying the property from Robert Barrow — not from Cauley Barrow’s estate — or selling the property on behalf of Robert Barrow.
As the majority correctly states, notice of a prior claim is demonstrated by “ ‘[a]ny circumstance which would place a man of ordinary prudence fully upon his guard, and induce serious inquiry.’ ” Price v. Watts, 223 Ga. 805, 806 (
In deciding on summary judgment, however, courts do not consider just one part of the record; the trial court, like this Court on appellate review, is supposed to consider the record as a whole. And viewing the undisputed facts collectively, as we must do and a jury would also be required to do, the circumstances unquestionably would place a person of ordinary prudence on notice of the Executors’ prior claim to the property. Consequently,
B&B seeks to defeat this straightforward application of the test for notice by arguing that, in response to its awareness of the Robert Barrow estate’s claim of ownership, it conducted a reasonable inquiry into the true state of the title by performing a title search that did not reveal the existence of the four unrecorded deeds and by asking the estate’s attorney for copies of the unrecorded deeds. The majority picks up on this argument by noting that Davis testified he “began to assume [the deeds] did not exist.” Majority Op. at 897. It is undisputed, however, that Davis did not convey his doubts about the deeds to Homer Barrow until long after the closing, when this case went to court. Thus, his suspicions — which were inaccurate, as a jury has found that Robert Barrow owned the property by deeds from his father — could have had no effect on B&B’s decision to purchase the property despite its notice of the Robert Barrow estate’s claim of ownership.
B&B also relies on the fact that a title search did not reveal the four unrecorded deeds from Cauley Barrow to Robert Barrow, and the majority notes that undisputed fact. See id. But this fact alone cannot establish that B&B was a bona fide purchaser for value without notice. Almost by definition, cases where a purchaser claims such status involve an unrecorded (or improperly recorded) prior interest. The test for bona fide purchaser status is not whether the prior interest was recorded, but whether the subsequent purchaser had notice of the claim of a prior interest. A prior unrecorded interest has priority over a subsequent interest acquired by a person who is not a bona fide purchaser, whether or not the subsequent interest is recorded. See Gardner,
Indeed, B&B does not really argue that it was unaware of Robert Barrow’s and his estate’s claim of ownership through the four unrecorded deeds. Rather, B&B complains that it was dissatisfied with the Executors’ failure to produce the unrecorded deeds for inspection and with the reason the Executors had for not recording the estate’s interest, which was to prevent the government from perfecting its liens against the property; the Executors were contending that the liens had been or should be released or substantially reduced. On the issue of producing the unrecorded deeds, it is undisputed that the original deeds were destroyed in a house fire on January 28, 2003, almost two years before B&B purported to buy the property from Cauley Barrow’s estate on October 8, 2004. The Executors obviously could not produce the original deeds, and it is undisputed that they had no copies of the deeds in their possession at that time. Moreover, while their failure to record might be offensive from the standpoint of taxpayers and the government (which could not enforce its liens), and perhaps of the estate’s beneficiaries (though it appears that the failure to record actually worked to their advantage by protecting the property from the liens), B&B cites no authority suggesting that it may rely on any such feelings or rights of third parties to undermine its own notice.
It was only much later, after this litigation commenced, that copies of the unrecorded deeds were located. The agricultural consultant hired by Robert Barrow to negotiate a settlement of his debts with the federal government
If it were necessary to re-establish originals of the lost deeds, the only way to do so was through a lawsuit. See
By their nature, these “notice” cases usually will present a factual dispute that precludes summary judgment and must instead be resolved by a jury at trial. But this is not invariably the case, as sometimes the undisputed material facts in the record support only one result. See, e.g., Henson v. Bridges,
Indeed, in the case cited by the majority for the proposition that “ ‘generally the question of what would put a prudent man on his guard is a question for the jury,’ ” Majority Op. at 899 (quoting Heard v. Nat. Bank of Wilkes,
While generally the question of what would put a prudent man on his guard is a question for the jury, in this case there was nothing on which the jury could base a finding that the bank was charged with notice; and accordingly there was no error in directing a verdict for the plaintiff
Heard,
The undisputed material facts in this case — considered as a whole — demonstrate unequivocally that B&B had legally sufficient notice of the prior claim to the property. Consequently, B&B does not qualify as a bona fide purchaser for value without notice, and the Executors were entitled to judgment as a matter of law on their claim that the Robert Barrow estate owns the property. Accordingly, I would hold that the trial court erred in denying summary judgment to the Executors and remand the case with direction to enter summary judgment in their favor.
Notes
The majority opinion claims that this factual issue is disputed. See Majority Op. at 897-899. But the majority again relies on selected bits of the extensive record, rather than considering the record as a whole. Homer Barrow freely admitted talking to Robert Barrow about buying the property from Robert Barrow or selling it on his behalf. See Homer Barrow Depo. at 18 (“We were going to buy it or we’d sell it for him or whatever he wanted to do.”). Homer Barrow did testify in his 2006 deposition that he did not remember making an offer of $800 per acre to Robert Barrow, but even then he did not deny doing so. When specifically asked, “Did y’all ever talk about $800 an acre for his land?”, his answer was: “Probably could’ve. I don’t remember. I mean, I don’t know whether we did or not. I wouldn’t doubt that.” Id. at 38. The majority does not mention that Homer Barrow testified again at the 2007 trial in this case - testimony that was also part of the record with regard to the motions for summary judgment. At that trial Homer Barrow again stated that, although he did not remember offering $800 per acre for the property, he did remember talking to Robert Barrow about buying the property from him, or helping him sell it to someone else:
Q: And in your discussion with him [Robert Barrow] you were talking to him about either buying the property from him or selling it as his agent, is that right?
A: That’s correct.
Q: And I think you said on direct you may have discussed the payment of eight hundred dollars per ache [sic], is that right?
A: That’s correct.
At the trial another local farmer, Dennis Verdan, testified that Robert Barrow had also discussed selling the land to him. Verdan testified unequivocally that he was told by Robert Barrow that Homer Barrow had made an offer of $800 per acre for the property. Verdan’s testimony was not objected to on hearsay or any other ground, and indeed his credibility was not challenged; B&B did not even cross-examine him.
The majority opinion’s rejoinder - that there are “bits of evidence in the record which create genuine issues of material fact” precluding summary judgment for the Executors, Majority Op. at 898 - is a distortion of summary judgment law. According to the majority and the old case it quotes (which was not a summary judgment case), a trial court considering a summary judgment motion must parse each witness’s testimony, alert for the smallest inconsistency, and, upon finding one, seize upon it as a reason to deny summary judgment, because a jury, with its power to make credibility determinations, is free to accept some parts of a witness’s testimony while rejecting other parts. See Majority Op. at 898 (quoting Southern R. Co. v. Newman,
First, although conflicting testimony from different witnesses on an issue of material fact precludes summary judgment, where the inconsistency exists within the testimony of a single party-witness, the rule is otherwise. As we have explained much more recently, “a trial court that is faced with a party’s self-contradictory sworn testimony on a material fact should disregard the portions of that testimony that favor the party when deciding a motion for summary judgment, unless the party offers a reasonable explanation for the contradiction.” CSX Transp., Inc. v. Belcher,
Second, and even more fundamentally, to preclude summary judgment, the disputed factual issues must be material to the legal issues in the case. It is insufficient for the party opposing summary judgment simply to cite contradictory evidence that makes no difference to the legal analysis, and it is also insufficient simply to claim that a jury could disregard all or part of the evidence offered by the moving party without offering contrary evidence. “When a motion for summary judgment is made and properly supported, the opposing party must respond and set forth specific facts showing a genuine issue for trial or else summary judgment, if appropriate, shall be entered.” Porter v. Felker,