Legacy Hills Residential Assoc. Inc. v. Colonial Bank

The defendant established a meritorious defense that it acquired legal title to disputed property by a recorded deed to secure debt which had priority over the plaintiff's subsequently recorded protective covenants.

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Legacy Hills Residential Association, Inc. the Association appeals from the trial court’s order granting Colonial Bank’s motion to allow it to open default pursuant to OCGA § 9-11-55 b. We find no abuse of discretion and affirm.

In January 1997 the Bank financed the purchase of real property by Heritage Creek Development Corporation the Developer and took a recorded deed to secure debt from the Developer over the property. The Developer subdivided the property into lots and in September 1997 recorded protective covenants creating the Association and imposing certain assessments and fees on owners of the lots. After the Bank foreclosed on the lots in June 2000, the Association claimed the Bank, as owner of the lots, owed assessments and fees imposed on the lots, and sued the Bank to collect these sums or to foreclose on liens filed by the Association. The Bank was automatically in default by failing to timely answer the Association’s complaint within 30 days of service, and it failed to open default as a matter of right within 45 days of service. OCGA § 9-11-55 a. On the 47th day after service, the Bank moved to open default pursuant to OCGA § 9-11-55 b. The trial court granted the motion on the ground that a “proper case” had been made for the default to be opened. After the Bank answered and discovery was completed, the trial court granted the Bank’s motion for summary judgment. This appeal followed.

Legacy Hills Residential Assoc. Inc. v. Colonial Bank

The defendant established a meritorious defense that it acquired legal title to disputed property by a recorded deed to secure debt which had priority over the plaintiff's subsequently recorded protective covenants.

Share with Email

Thank you for sharing!

Trending Stories

More From ALM

Subscribe to Daily Report