55 Ga. App. 92 | Ga. Ct. App. | 1936
Rehearing
ON REHEARING.
It appears conclusively in this case that possession of the premises was in fact voluntarily surrendered, and that the plaintiff mortgagee thus received possession from the defendant before the time when the property, after advertisement, was sold under the power of sale in the security deed. The evidence for the defendant is clear and unequivocal .that it was agreed that upon such a voluntary surrender the remaining unpaid indebtedness would be extinguished. The difficulty in the case — and it is the point stressed in the motion for rehearing — arises by virtue of a letter which was sent by the mortgagee to the defendant after the agreement testified to by her, and before the date of the surrender of the property. All of the portions of this letter which are embodied in the record are as follows: “We have since inspected the property, and referred 'this matter to our attorney for foreclosure on the second mortgage. He has also been instructed to secure a deficiency judgment against you for the difference, between the sale price of the property and the amount of your indebtedness. * * * [Stars indicate the omission by the record of part of the letter.] The property will be sold on the first Tuesday in July. We shall appreciate occupancy of it at your earliest convenience.” The contention of movant is, that, no matter if the mortgagee had agreed to the extinguishment of the balance due on the note in consideration of the surrender of the property, it thus appears that before any such agreement was actually .consummated the mortgagee evidenced by its letter a contrary intention, and consequently any subsequent surrender of the property, even though ■at the mortgagee’s request, could not have been an accord and satisfaction of the debt. Movant especially relies on Wilder V; Montgomery, cited in the original decision. In that case, contrary to the facts in this case, it will be seen that no surrender of the property was ever actually made. We recognize, however, the rule of law that a mere accepted proposal that upon the doing of a certain thing a debt is to be thereby satisfied does not become effective as an accord and satisfaction until the proposal is actually
The representative of the mortgagee testified that he had never told the defendant that if she surrendered the amount paid on-the obligation, and surrendered possession of the property, the balance of the indebtedness would be canceled; that her only proposition along this line was in her letter of May 26 to the mortgagee; and that his “reply” to her letter "refused the offer.” It thus seems to appear that the refusal made by plaintiff’s letter pertains only to the offer contained in defendants leiler. It does appear, however, from the testimony of this representative that he
Lead Opinion
“An agreement by a creditor to receive less than the amount of his debt can not be pleaded as an accord and satisfaction, unless it be actually executed by the payment of the money, or the giving of additional security, or the substitution of another debtor, or some other new consideration.” Code, § 20-1204. “The accord and satisfaction must be of some advantage, legal or equitable to the creditor.” § 20-1203. In the absence of a bona fide dispute, mere surrender by the debtor of money already paid or property already admittedly belonging to the creditor, where no advantage or benefit accrues to the creditor beyond that which exists under the original contract, will not constitute an accord and satisfaction. Burgamy v. Holton, 165 Ga. 384 (3) 395 (141 S. E. 42); Red Cypress Lumber Co. v. Beall, 5 Ga. App. 202 (2) (62 S. E. 1056); Molyneaux v. Collier, 13 Ga. 406 (11, 12); Wilder v. Montgomery, 51 Ga. App. 231 (2) (179 S. E. 861); Bass Dry Goods Co. v. Roberts Coal Co., 4 Ga. App. 520 (61 S. E. 1134); Riley v. London Guaranty & Accident Co., 27 Ga. App. 686 (1, c,d) (109 S. E. 676); Hart v. Little, 39 Ga. App. 106 (4) (146 S. E. 338). But even a slight additional advantage or other new consideration to the creditor, such as a waiver of a defense by the debtor, or his agreement to surrender possession of the realty covered by a security deed before he is legally obliged to do so, in exchange for a promise by the creditor that the indebtedness shall thereby be discharged, where the undertaking of the debtor is fully performed and accepted, is a good accord and satisfaction. Although after a default the creditor under a security deed is entitled to maintain ejectment to obtain possession of the property from the debtor (Bennett v. Green, 156 Ga. 572, 579, 119 S. E. 620; Livingston v. Hirsch, 172 Ga. 854, 159 S. E. 253; Carswell v. Hartridge, 55 Ga. 412; Biggers v. Byrd, 55 Ga. 650; Dykes v. McVay, 67 Ga. 502), and although the instrument may expressly give to the creditor the right after a default to enter upon the premises and collect rents and profits, as well as the right to sell the property at public sale after legal advertisement, still the voluntary giving up of possession and of all claim and defense, without the constraint of any proceeding under the contract or under the statute, may afford the basis of a valid satisfaction of the debt, where the debtor’s agreement has been executed. Butts v. Maryland Casualty Co., 52 Ga. App. 838 (184 S. E. 774); 1 C. J. 551, § 70. In the instant action for a deficiency judgment against the debtor, her testimony, although disputed by testimony for the creditor, was sufficient to authorize the verdict in her favor on her defense of accord and satisfaction. The court did not err in refusing a new trial on the general grounds.
Judgment affirmed.