Franklin Credit Management Corp. v. Friedenberg

The strict notice provisions of O.C.G.A. § 44-14-3 c.1 do not apply to a written demand for liquidated damages for failure to cancel a security deed after the underlying note was satisfied under § 44-14-3 c.

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In this action originally filed to collect on a promissory note which complaint the plaintiff soon dismissed with prejudice, plaintiff Franklin Credit Management Corporation “Franklin” appeals the grant of summary judgment to Karen Friedenburg on her counterclaim for damages arising out of Franklin’s refusal to cancel a deed securing the note until four years after the note had been paid. Franklin argues that because it did not receive a written demand for liquidated damages via certified mail, the court erred in awarding liquidated damages under OCGA § 44-14-3 c. Franklin further challenges the court’s two awards of attorney fees under this section and under OCGA § 9-15-14 b as unsupported by the evidence or by appropriate findings. We affirm the judgment of liability and the amount of liquidated damages and attorney fees awarded under OCGA § 44-14-3 c as well as the judgment of liability for attorney fees under OCGA § 9-15-14 b, but we vacate the amount of attorney fees awarded under OCGA § 9-15-14 b and remand the case with instructions as set forth below. 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. A de novo standard of review applies to an appeal from a grant of summary judgment, and we view the evidence, and all reasonable conclusions and inferences drawn from it, in the light most favorable to the nonmovant. Matjoulis v. Integon Gen. Ins. Corp .1

The undisputed evidence shows that Franklin held a note and a security deed, both executed by Friedenburg. Franklin agreed to accept $50,000 to satisfy the remaining balance on the note. Franklin received the $50,000 along with a written demand from Friedenburg that Franklin proceed to have the security deed marked “satisfied” and cancelled in the real estate records or else be liable to her for $500 in liquidated damages and reasonable attorney fees under OCGA § 44-14-3 c. Franklin, however, failed to do so.

Franklin Credit Management Corp. v. Friedenberg

The strict notice provisions of O.C.G.A. § 44-14-3 c.1 do not apply to a written demand for liquidated damages for failure to cancel a security deed after the underlying note was satisfied under § 44-14-3 c.

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