In this civil action, Bank of America, N.A. the “Bank” sued Trey Inman & Associates, P.C. “TIA” for conversion, alleging that TIA, while acting as the closing attorneys on a sale of property in which the Bank had a secured interest, wrongfully disbursed a portion of the sales funds to the seller of the property instead of disbursing all of the funds to the Bank. Following the grant of summary judgment to the Bank, TIA appeals, arguing that it is not liable for conversion because i it followed the Bank’s payoff instructions, ii the Bank’s claim is barred by North Carolina law, iii and the Bank failed to demonstrate the elements required for a conversion claim. For the reasons set forth below, we affirm. Summary judgment is proper when there is no genuine issue of material fact and the movant is entitled to judgment as a matter of law. OCGA § 9-11-56 c; Britt v. Kelly & Picerne, Inc. 1 “On appeal from the grant or denial of a motion for summary judgment, we review the evidence de novo, and all reasonable conclusions and inferences drawn from the evidence are construed in the light most favorable to the nonmovant.” McCaskill v. Carillo .2
So viewed, the record shows that in January 2005, the Bank loaned $10 million to Paul Meng and a group of home builders, including Brookchase Builders, which were closely associated with Meng and which conducted business under the names of Ridgeland Homes, Inc., Scenic Homes, Inc., and Creekwood Homes, Inc. collectively the “Meng defendants”. The loan was modified and extended several times and was secured by numerous deeds of trust containing dragnet clauses held by the Bank, including a deed of trust for property identified as the Spencer Heights Subdivision in Gaston County, North Carolina. That deed, in relevant part, provided: NOW THEREFORE, in consideration of the indebtedness herein recited, and in further consideration of the premises and for the purposes herein recited, and to secure the payment, performance and observance by Grantor of the covenants and conditions contained herein, in the Note, the Loan Agreement and all other Loan Documents defined below, Grantor does hereby grant, convey, bargain, sell, transfer, assign and set over to Trustee and Trustee’s successors and assigns, with GENERAL WARRANTY TITLE, all of the following described land, real property interests, buildings, improvements, fixtures, appurtenances and other personal property. . . d All proceeds cash or non-cash of or arising from the properties, rights, titles and interests referred to in paragraphs a, b, and c above, including but not limited to proceeds of any sale, lease or other disposition thereof . . The dragnet clause3 in that same deed further provided: This Deed of Trust secures and enforces the payment and performance of the Loan Agreement, the Note and the other Loan Documents, and all Indebtedness, liabilities, duties, covenants, promises and other obligations whether joint or several, direct or indirect, fixed or contingent, liquidated or unliquidated, and the cost of collection of all such amounts, owed by Grantor to Beneficiary now or hereafter incurred or arising pursuant to or permitted by the provisions of the Loan Documents. The loan eventually matured in October 2007; however, the Meng defendants failed to pay at that time and later refused to pay despite demands from the Bank that they do so.
