Green Tree Servicing, LLC “Green Tree”, filed this equity action against Carliss DeGolyer, individually and as executor of the estate of Troy DeGolyer her late husband, and Two Eagles, Inc. collectively “defendants”, seeking the reformation of a security deed, a declaratory judgment granting that security deed first priority, and rescission of a separate deed under power “foreclosure deed”. Following a jury trial, the trial court directed a verdict in favor of Green Tree on all of its claims. Defendants appeal, arguing that the trial court erred in directing the verdict in favor of Green Tree on its claims for reformation of the security deed, equitable subrogation, and rescission of the foreclosure deed; in directing the verdict in favor of Green Tree on defendants’ wrongful foreclosure claim; and in ruling in favor of Green Tree on several evidentiary issues. For the reasons set forth below, we affirm in part and reverse in part.A directed verdict is proper only if there is no conflict in the evidence as to any material issue and the evidence introduced, with all reasonable deductions therefrom, shall demand a particular verdict. OCGA § 9-11-50 a. In determining whether any conflict in the evidence exists, the court must construe the evidence most favorably to the party opposing the motion for directed verdict. The standard used to review the grant or denial of a directed verdict is the any evidence test.Punctuation omitted. Moran v. Kia Motors America, Inc. 1 So viewed, the record shows that in January 1990, Troy and Carliss DeGolyer purchased a 6.94-acre tract of land in Union County with help from a loan obtained from Appalachian Community Bank “ACB” that used the property as security. In July 1995, Two Eagles, Inc., a corporation wholly owned and operated by the DeGolyers, purchased an adjacent 22.5-acre tract of property, upon which was a house that eventually became the DeGolyers’ residence. In August 2000, Two Eagles obtained a second loan from ACB to make improvements on the 22.5-acre tract and used that tract as the collateral to execute a security deed in favor of ACB.
Approximately one year later, the DeGolyers began negotiating with Conseco Finance Servicing “Conseco” to refinance the loan pertaining to the 22.5-acre tract. During the negotiations, the DeGolyers had the 22.5-acre tract surveyed so as to divide the property into two parcels, one of which was a five-acre tract that included the DeGolyers’ home and would be used as security for the loan. Although the DeGolyers informed Conseco that Two Eagles held the title to the entire 22.5-acre tract, Conseco assumed that Two Eagles would convey title to the DeGolyers; thus, all of the loan documents designated the DeGolyers as the borrowers and signators. In addition, all of the loan documents, including the note and the security deed for the five-acre parcel, were signed by the DeGolyers as individuals and not in their capacity as officers of Two Eagles. The loan documents also included an attachment to the security deed, which consisted of a legal description of the five-acre parcel that would serve as security for the loan. The closing for the loan, which the DeGolyers attended, took place in July 2001, after which the ACB loan was paid and ACB’s security deed for the 22.5-acre tract was cancelled.
