Bradford Mortgage Co. v. Johnnie Ganem Appraisal Co.

No evidence showed that appraisal company failed to comply with the appropriate standard of care when appraising the subject properties.

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Bradford Mortgage Company “Bradford” appeals the trial court’s grant of summary judgment to Johnnie Ganem Appraisal Company “Ganem” on its claim for professional negligence related to appraisals performed by Ganem. Bradford argues that the trial court erred in concluding that 1 it presented no evidence that Ganem failed to comply with the appropriate standard of care and 2 any negligence on Ganem’s part was superseded by the intervening acts of other defendants. Finding no error, we affirm for the reasons noted infra. To prevail on summary judgment, the moving party must demonstrate that there is no genuine issue of material fact, and that the undisputed facts, when viewed in the nonmovant’s favor, entitle the movant to judgment as a matter of law.1 We review de novo a trial court’s grant of summary adjudication, construing the evidence in the light most favorable to the nonmoving party.2

So construed, the record shows that Bradford provided mortgages for the purchase of three townhomes in an upscale development on Tybee Island. These townhomes were purchased by three members of a so-called investment group, representatives of which negotiated a bulk sale that was assignable, thus allowing individual members of the group to purchase townhomes in the development. Three members applied for loans with Bradford, and prior to approving these loans, Bradford used the “Fast & Easy” approval method —which Bradford’s own chairman admits was “inherently risky” because it only required verification of the potential borrowers’ employment and nothing else. Bradford also ordered individual appraisals of the subject properties from Ganem. And shortly thereafter, Bradford advanced ninety percent of the purchase price for the three subject townhomes two of which sold for $815,000 and one of which sold for $825,000.

Bradford Mortgage Co. v. Johnnie Ganem Appraisal Co.

No evidence showed that appraisal company failed to comply with the appropriate standard of care when appraising the subject properties.

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