Homeland Group, LLC v. Lawson (In re Credo-Lawson)
Homeland Group, LLC v. Lawson (In re Credo-Lawson)
Opinion of the Court
ORDER ON PARTIES’ CROSS-MOTIONS FOR SUMMARY JUDGMENT
This matter is before the Court on the cross-motions fo'r summary judgment of the parties in this dischargeability action under 11 U.S.C. § 523. The Court has jurisdiction over this matter pursuant to 28 U.S.C. §§ 157 and 1334 and this matter is a core matter pursuant to 28 U.S.C. § 157(b)(2)(I).
UNDISPUTED FACTS
Each party has submitted a statement of facts which each contends are undisputed. The Defendant has submitted a response to the Plaintiffs Statement of Undisputed Facts, but the Plaintiff has not submitted any response to the Defendant’s Statement of Undisputed Facts. Pursuant to BLR 7056-l(a)(2), a respondent to a motion for summary judgment must respond to each separately numbered statement of undisputed facts. The rule provides, “All material facts contained in the moving party’s statement that are not specifically controverted in respondent’s statement shall be deemed admitted.” Since Plaintiff did not respond to Defendant’s Statement of Material Facts, the Court will deem them admitted. As a practical matter, there are no factual disputes about the history of the case or the entry of the prior judgment. The only facts in the Defendant’s Statement of Material Facts which are not addressed by the Plaintiff in its Statement of Facts are items 17 and 18, which relate to the merits of the action as opposed to the collateral estoppel effect of the prior action.
On August 16, 2007, Defendant Credo Credolawson (“Defendant” or “Credolaw-son”) and Lisa Challenger entered into an exclusive Buyer Brokerage Agreement (“Brokerage Agreement”) with Homeland Group LLC (“Plaintiff’ or “Homeland”). The Brokerage Agreement expired by its terms on December 31, 2007 and provided for the payment of a 3% commission on all real property in Georgia which Credolaw-son purchased or contracted to purchase during the term of the agreement. The Brokerage Agreement also provided that, if Credolawson leased property or entered into a lease/purchase contract during the term of the Brokerage Agreement, Credo-lawson would pay the broker for the duration of the lease and any renewal or extension thereof a commission of 10% of each rental payment made. Subsequently, on August 22, 2007, Credolawson and Lisa Challenger entered into a lease/purchase agreement for property located at 560 Clearwater Place, Lawrenceville, Georgia. The lease/purchase agreement included an
On January 30, 2014, the state court entered a document titled “Final Judgment” granting judgment in favor of Homeland and against Credolawson in the amount of $5,730 as sales commissions, $2,880 as rental commissions, and $3,000 attorney’s fees, plus court costs and $10,000 in punitive damages. On February 11, 2014, Credolawson filed a motion in the state court entitled “Motion for Reconsideration” arguing, among other things, that the Brokerage Agreement had expired and that even the 180-day extension of the broker’s protection had expired on June 29, 2008, before the property was purchased. The motion also argued that the evidence was insufficient to support any finding of fraud or bad faith. While this motion was pending, Credolawson filed his voluntary bankruptcy petition under Chapter 7 of the United States Bankruptcy Code on July 22, 2014. On September 11, 2014, an order denying the motion for reconsideration was entered by the state court, although no party had obtained relief from the automatic stay for the litigation to proceed.
Homeland filed this adversary proceeding on October 22, 2014, alleging that the judgment obtained in the state court litigation against Credolawson was non-dis-chargeable under 11 U.S.C. § 523(a)(2). The parties’ cross-motions for summary judgment followed.
CONCLUSIONS OF LAW
Summary Judgment
Summary judgment is appropriate when “the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law”. Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); Fed.R.Civ.P. 56(c); Fed. R. Bankr.P. 7056(c). “The substantive law [applicable to the case] will identify which facts are material.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). The party moving for summary judgment has the burden of proving there are no disputes as to any material facts. Hairston v. Gainesville Sun Pub. Co., 9 F.3d 913, 918 (11th Cir. 1993). A factual dispute is genuine “if the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Anderson, 477 U.S. at 248, 106 S.Ct. 2505. When reviewing a motion for summary judgment, a court must examine the evidence in the light most favorable to the nonmoving party and all reasonable doubts and inferences should be resolved in favor of the nonmoving party. Hairston, 9 F.3d at 918.
Credolawson argues that Homeland’s response to his motion for summary judgment is not timely and should therefore be disregarded. Under BLR 7056-1, Homeland’s response to Credolawson’s motion for summary judgment should have been filed within 21 days. Instead, the response was filed 30 days after the filing of the motion for summary judgment. Credolawson is correct that the response is untimely and the Court may choose to ignore it. Because Homeland filed its own motion for summary judgment and brief in support thereof which address the same issues as those raised by Credolawson, the Court will consider Homeland’s motion for summary judgment and brief as also being a response to Credolawson’s motion for summary judgment. The delay in filing is not harmful to either party or to the Court.
Next, Credolawson alleges that Homeland did not cite to any particular evidence in the record in connection with its motion for summary judgment. Again, Credolaw-son is correct that this was required. However, Fed. R. Bankr.P. 7056(c)(3) allows the Court to consider all materials in the record. All of the relevant documents were submitted by Credolawson in support of his motion for summary judgment and there, is certainly no harm in considering those matters in deciding both Homeland’s and Credolawson’s motions for summary judgment.
Order Demins Motion for Reconsideration Is Void
It is undisputed that the state court’s order denying the motion for reconsideration was entered after Credolawson filed his bankruptcy petition. Under 11 U.S.C. § 362, the stay automatically applies to the continuation of any efforts by any party to collect on pre-petition debts or to continue pre-petition litigation, subject to certain exceptions not applicable here. “Any orders or judgments entered in violation of [an] automatic stay are void; they are deemed without effect and rendered an absolute nullity.” Miller v. Lomax, 333 Ga.App. 402, 404, 773 S.E.2d 475 (2015) (cites omitted). See also McKeen v. Fed. Deposit Ins. Corp., 274 Ga. 46, 48, 549 S.E.2d 104 (2001); Borg-Warner Acceptance Corp. v. Hall, 685 F.2d 1306, 1308 (11th Cir. 1982); Albany Partners, Ltd. v. Westbrook (In re Albany Partners), 749 F.2d 670, 675 (11th Cir. 1984). Based on the foregoing, the order denying Credo-lawson’s motion for reconsideration is void.
Preclusiveness of State Court Judgment
Homeland argues that the judgment from the state court is entitled to collateral estoppel effect. The doctrine of collateral estoppel seeks “to prevent the re-litigation of issues previously contested and determined by a valid and final judgment in another court.” Newton v. Lemmons (In re Lemmons), 2005 WL 6487216, at *2 (Bankr.N.D.Ga. 2005). The doctrine of collateral estoppel applies to non-dischargeability proceedings. See Grogan v. Garner, 498 U.S. 279, 284 n. 11, 111 S.Ct. 654, 112 L.Ed.2d 755 (1991). When reviewing a state court judgment under the doctrine of collateral estoppel, “a federal court must accord the judgment the same preclusive effect as it would be given under the law of the state in which the judgment was rendered.” Lemmons, 2005 WL 6487216, at *2.
This Court must, therefore, turn to Georgia law to determine the preclusive effect of the “Final Judgment” against Credolawson. See Hebbard v. Camacho (In re Camacho), 411 B.R. 496, 501 (Bankr.S.D.Ga. 2009). Under Georgia law, a party may only assert the doctrine of collateral estoppel when the following elements have been satisfied: (1) identity of the parties is the same; (2) identity of the
Here, there is no question that the parties are the same, the parties had a full and fair opportunity to litigate, and many of the issues decided in the state court judgment are the same as would be decided here. What Credolawson argues, however, is that the “Final Judgment” is not final because a motion for reconsideration was pending.
Under Georgia law, a judgment is not final, for purposes of collateral estoppel, unless all rights to appeal have been exhausted. See Cox v. Mayan Lagoon Estates, Ltd., 319 Ga.App. 101, 108, 734 S.E.2d 883 (2012). While there is contrary authority,
Georgia’s general rule is: ‘[A] judgment sought to be used as a basis for the application of the doctrine of res judica-ta or collateral estoppel must be a final judgment. In Georgia, a judgment is suspended when an appeal is entered within the time allowed. And the judgment is not final as long as there is a right to appellate review.’ Greene v. Transp. Ins. Co., 169 Ga.App. 504, 513, 313 S.E.2d 761, 763 (1984). ‘Georgia is apparently, among the minority of states that treat a lower court judgment on appeal as not final for purposes of collateral estoppel or res judicata.’ Cox v. Mayan Lagoon Estates, Ltd., 319 Ga. App. 101, 108, 734 S.E.2d 883 (2012).
Ames v. J.P. Morgan Chase Bank, N.A, 623 Fed.Appx. 983, 986 (11th Cir. 2015) (emphasis in original).
In this case, the judgment will not be considered a final judgment for purposes of collateral estoppel if Credolawson still has a right to appellate review. A notice of appeal must be filed within 30 days of judgment unless a “motion for new
Georgia courts have long established that the nomenclature of a motion does not control. See Girtman v. Girtman, 191 Ga. 173, 180, 11 S.E.2d 782 (1940) (“there is no magic in mere nomenclature”). Instead, courts look to the substance and function of the pleading. See Holloway v. Frey, 130 Ga.App. 224, 202 S.E.2d 845 (1973); Underwood v. D.C. Heath & Co., 64 Ga.App. 180, 12 S.E.2d 464 (1940) (“[t]he character and classification of a motion depends on the intrinsic contentions of the motion, its recitation of fact, the nature of the wrong sought to be corrected, and the quality of remedy sought to be invoked”); The Hudson Trio, LLC v. Buckhead Community Bank, 304 Ga.App. 324, 326, 696 S.E.2d 372 (2010) (“We construe a pleading to serve the best interests of the pleader, and judge it by its function rather than by name”). Further, O.C.G.A. § 9—11—8(f) states that “[a]ll pleadings shall be so construed as to do substantial justice.” For example, In In Interest of C.I.W., a party filed a motion titled “Motion for Reconsideration of Judgment and/or Motion for New Trial in the Alternative” which stated that the judgment was “inconsistent with the evidence and unsupported thereby” and “contrary to law.” In Interest of C.I.W., 229 Ga.App. 481, 483, 494 S.E.2d 291 (1997). Paying little attention to the title, the court held that the motion was in substance a motion for new trial and thus should be treated as one. Id. (“[a] motion for new trial is a proper vehicle in which to challenge a judgment on the basis that it is inconsistent with the evidence presented and therefore contrary to law”).
Since the nomenclature is not controlling, Credolawson’s motion must function as a motion for new trial in order for the Court to construe it as one. A motion for new trial is a specific motion used to request a retrial, in the same court, of an issue of fact after a decision by the court or a jury. See Gully v. Glover, 190 Ga.App. 238, 239, 378 S.E.2d 411 (1989); Sunn v. Mercury Marine, 166 Ga.App. 567, 568-569, 305 S.E.2d 6 (1983); Richard C. Ruskell, Davis and Shulman’s Georgia Practice and Procedure, § 24.1 (2015-2016 ed.) (a motion for new trial is “an applica
The reason for the rule that a motion must go to the findings of fact is that a new trial is necessarily authorized only where errors occurred which might have affected the finding of the trier of fact; where it is only the judgment thereon which is alleged to be erroneous or illegal, this alludes to a matter of law only and there is no need for a new trial, but the party must merely take direct exception at the proper time.
Sunn, 166 Ga.App. 567, 568-69, 305 S.E.2d 6 (1983) (citations and punctuation omitted). But see Georgia Appellate Practice Handbook § 11:3 (7th ed. 2012) (discussing when a motion for new trial is not proper).
Here, Credolawson’s motion challenged the verdict of the state court judge on a factual and legal basis. Credolawson asserted in his motion that the evidence did not support a conclusion of fraud because the brokerage agreement had long since expired when he purchased the property from the owner. Like the party in Turner. Credolawson did not solely object to the state court’s legal conclusions, but also asserted that the court’s factual findings were inconsistent with the evidence presented. Thus, because Credolawson asserted, among other things, that the factual findings show no misconduct on his behalf, he has properly addressed a factual finding and not solely a legal conclusion.
This Court concludes Credolawson’s “Motion for Reconsideration” was a motion for new trial which tolled the time to appeal. As such, the state court judgment is not final and is not entitled to collateral estoppel effect.
Request for Summary Judgment on the Facts
Credolawson asserts that the facts alleged do not, as a matter of law, support a possible judgment for Homeland as to the non-dischargeability of the debt. Credolawson’s argument relies upon two interrogatory responses to the effect:
• Defendant’s subsequent actions show his so-called Termination Letter was “deceitful” and “misleading”, and
• Homeland relied on the Brokerage Agreement, the Termination Letter and Defendant’s false representations and Plaintiff was cheated out of its commission.
Credolawson asserts that these two statements show there is no dispute and that the debt is dischargeable as a matter of law.
CONCLUSION
The state court judgment is not final and is not entitled to preclusive effect and Credolawson’s Motion for Summary Judgment is granted to this extent and Homeland’s Motion for Summary Judgment is denied. Issues of fact remain, however, and Credolawson’s Motion for Summary Judgment in his favor as a matter of law is denied.
IT IS ORDERED.
. See Pope v. Shipp, 38 Ga.App. 483, 144 S.E. 345 (1928) (The Georgia Court of Appeals held that "[a] judgment of a court stands with full force and efficacy until it has been reversed or set aside. The mere pendency of a motion for new trial can in no way affect the force and efficacy of the judgment to which the motion relates.”). See also In re Williams, 282 B.R. 267, 273-74 (Bankr.N.D.Ga. 2002) (holding that Georgia courts are split on the question of whether a judgment subject to appeal is given preclusive effect, but concluding that a pending JNOV Motion “does not defeat the finality of the Verdict and Judgment for collateral estoppel purposes”); O.C.G.A. § 9-12—40 ("A judgment of a court of competent jurisdiction shall be conclusive between the same parties and their privies as to all matters put in issue or which under the rules of law might have been put in issue in the cause wherein the judgment was rendered until the judgment is reversed or set aside.”).
. Other methods exist to challenge a judgment, see O.C.G.A. § 9-11-60 and Piggly Wiggly Southern Inc. v. McCook, 216 Ga.App. 335, 336-37, 454 S.E.2d 203 (1995), but only those identified in O.C.G.A. § 5-6-38 toll the time for appeal.
. A motion for directed verdict in a non-jury trial is procedurally incorrect. Such a motion is treated as a motion for an involuntary dismissal under O.C.G.A. § 9—11—41 (b). See Drake v. Wallace, 259 Ga.App. 111, 112, 576 S.E.2d 87 (2003); Chamlee v. DOT, 182 Ga.App. 120, 120-21, 354 S.E.2d 701 (1987).
Reference
- Full Case Name
- IN RE: Credo Emmanuel CREDO-LAWSON, a/k/a Emmanuel Lawson, Debtor. Homeland Group, LLC, d/b/a Homeland Group Real Estate Services, a Georgia Limited Liability Company v. Credo Emmanuel Lawson
- Cited By
- 1 case
- Status
- Published