Pearlman v. Security Bank and Trust Co. of Albany

A bank was entitled to all proceeds of an insurance policy covering a fire loss since the bank was the named loss payee under the policy and the secured debt exceeded the insurance proceeds.

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Security Bank and Trust Company of Albany “Security Bank” filed an action for equitable interpleader and declaratory relief against Ellen Pearlman pursuant to OCGA § 23-3-90. Security Bank claimed the right to all proceeds of an insurance policy covering the loss by fire to a home owned by Ellen Pearlman and her former husband, Jerry Pearlman. Ellen Pearlman claimed she was entitled to half the proceeds. Base on stipulated facts, the trial court found that Security Bank was entitled to all of the insurance proceeds and granted summary judgment in its favor. Ellen Pearlman appeals and we affirm. Summary judgment is appropriate when there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law. Robinson v. Hunter , 254 Ga. App. 290 1 562 SE2d 189 2002. Our review is de novo. Pyle v. City of Cedartown , 240 Ga. App. 445, 446 524 SE2d 7 1999.

The stipulated facts show that as part of a 1988 divorce settlement, Jerry Pearlman conveyed a one-half undivided interest in an Albany residence to Ellen Pearlman. The residence was subject to a deed to secure debt securing a $10,000 note which was executed and delivered in 1987 by Jerry Pearlman to Security Bank. The 1987 note was refinanced in 1996 through a promissory note from Jerry Pearlman to Security Bank in the original principal amount of $45,028.95. As part of this refinancing, Jerry Pearlman executed a deed to secure debt to Security Bank pledging the Albany residence as collateral for the promissory note. The outstanding balance on the promissory note was $63,714.14 as of April 17, 2002.

Pearlman v. Security Bank and Trust Co. of Albany

A bank was entitled to all proceeds of an insurance policy covering a fire loss since the bank was the named loss payee under the policy and the secured debt exceeded the insurance proceeds.

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