Summer Crest at Four Seasons on Lanier Homeowners Association, Inc. v. Great Water Lanier, LLC , 811 S.E.2d 1 ( 2018 )


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  •                               THIRD DIVISION
    ELLINGTON, P. J.,
    ANDREWS and RICKMAN, JJ.
    NOTICE: Motions for reconsideration must be
    physically received in our clerk’s office within ten
    days of the date of decision to be deemed timely filed.
    http://www.gaappeals.us/rules
    January 2, 2018
    In the Court of Appeals of Georgia
    A17A1810, A17A1811. GREAT WATER LANIER, LLC v.
    SUMMER CREST AT FOUR SEASONS ON LANIER
    HOMEOWNERS ASSOCIATION, INC., and vice versa.
    ELLINGTON, Presiding Judge.
    Great Water Lanier, LLC, filed this action in the Superior Court of Hall County
    against Summer Crest at Four Seasons on Lanier Homeowners Association, Inc.,
    seeking, inter alia, a declaratory judgment that two undeveloped parcels of land Great
    Water owns are not burdened by the declaration of covenants applicable to the
    Summer Crest subdivision. Great Water filed a motion for partial summary judgment
    on this issue. After a hearing, the trial court denied Great Water’s motion as to the
    larger parcel and, after notice, sua sponte granted summary judgment in favor of the
    Association as to that parcel, declaring that the parcel is subject to the declaration of
    covenants.1 In Case No. A17A1810, Great Water appeals. The trial court also granted
    the Association’s cross-motion for partial summary judgment as to Great Water’s
    claims for defamation of title and punitive damages, and Great Water appeals. In Case
    No. A17A1811, the Association cross-appeals from two earlier, nondispositive orders
    denying its motion for judgment on the pleadings and from a purported ruling
    allowing Great Water to withdraw an admission. For the reasons explained below, we
    affirm in Case No. A17A1810 and dismiss as moot in Case No. A17A1811.
    Summary judgment is proper “if the pleadings, depositions, answers to
    interrogatories, and admissions on file, together with the affidavits, if any, show that
    there is no genuine issue as to any material fact and that the moving party is entitled
    to a judgment as a matter of law[.]” OCGA § 9-11-56 (c).
    Summary judgments enjoy no presumption of correctness on appeal, and
    an appellate court must satisfy itself de novo that the requirements of
    OCGA § 9-11-56 (c) have been met. In our de novo review of the grant
    [or denial] of a motion for summary judgment, we must view the
    evidence, and all reasonable inferences drawn therefrom, in the light
    most favorable to the nonmovant.
    1
    The trial court granted Great Water’s motion regarding the smaller parcel,
    declaring that the parcel is not subject to the declaration of covenants. The
    Association has not appealed this aspect of the court’s ruling.
    2
    (Citations and punctuation omitted.) Cowart v. Widener, 
    287 Ga. 622
    , 624 (1) (a)
    (697 SE2d 779) (2010). The relevant facts that follow are undisputed unless
    otherwise noted.
    In 1988, Sharon/Lupton Partnership established the Summer Crest subdivision
    in Hall County. As the developer and declarant, the partnership recorded a
    Declaration of Covenants, Restrictions and Easements dated September 13, 1988,
    recorded in Hall County. A Tennessee corporation, Stonebridge Development
    Corporation, was one of the general partners, and became the successor in interest to
    the partnership. Stonebridge Development filed an amended declaration of covenants
    in 1994.2 The declaration of covenants, as amended, placed certain restrictions,
    covenants and easements on the development and use of subdivision property and
    created the Association to own and maintain common areas and to enforce the
    covenants, restrictions and easements contained in the declaration.
    The 1988 declaration of covenants described the property as comprising 59
    single family lots and one amenity area lot. The declaration as amended in 1994, in
    Article X, allowed Stonebridge Development to make specified “Phase 2 Property”
    2
    The declaration of covenants was also amended in 2002 and 2005; the
    changes are not pertinent to the issues in the case.
    3
    subject to the covenants, by filing an approved subdivision plat that expressly stated
    its intention to make the annexed real property subject to the provisions of the
    declaration, and allowed for the development of up to 27 additional homes. The Phase
    2 Property included two tracts; Tract 1 comprised 17.338 acres and Tract 2 comprised
    13,211 square feet. The amended declaration provided a process for resolving an
    issue that might arise in the event Stonebridge Development subjected the Phase 2
    Property to the declaration of covenants, specifically that, with the addition of the
    new Phase 2 households, the existing recreational area might not have the needed
    capacity to serve all of the members. The amended declaration provided that, within
    ten years after the filing of the amended declaration on December 29, 1994, such
    annexation of additional property by Stonebridge Development did not require the
    consent of the Association. Otherwise, additional property could be annexed and
    made subject to the covenants by approval of 60 percent of the Association’s
    members, that is, the subdivision’s homeowners.
    In 1999, Stonebridge Development merged into Springlake LLC, a Georgia
    corporation. A week later, Springlake LLC merged into Stonebridge, LLC, a Georgia
    corporation.
    4
    On May 23, 2003, within ten years after the filing of the 1994 amended
    declaration, Stonebridge recorded the Final Plat of Summercrest Phase II in the real
    estate records of Hall County, Plat Book 830, Pages 135A-142A.3 Steve Kelly signed
    the plat on behalf of Stonebridge. At the bottom of the first page, the Phase II plat
    contains the notation, “Property subject to the Summer Crest Homeowner
    Association’s Amended and Restated Declaration of Covenants, Restrictions and
    Easements and Design Standards[.]” On the second page, under “Notes,” the plat
    contains the statement, “This phase is subject to the covenants recorded for
    Summercrest Subdivision.” The plat’s “area summary” breaks down the 17.338 acre
    total (which was specified in the 1994 declaration of covenants as Tract 1 of the
    Phase 2 property) into 1.692 acres of roads, 10.694 acres of lots, and 4.952 acres for
    3
    The Phase 2 plat designated Stonebridge Development as the
    owner/developer. As Great Water contends, Stonebridge Development no longer
    existed as a legal entity, having been subsumed into Stonebridge, LLC; Great Water
    argues that the trial court erred in treating the designation in the plat as a misnomer.
    Great Water does not dispute, however, that Stonebridge, LLC, owned the Phase 2
    property when the plat was recorded and that there would be no reason for the
    predecessor corporation to record a plat providing for development of the property.
    The entire record supports the trial court’s determination that Stonebridge
    Development was a misnomer in the Phase 2 plat for the correct entity, Stonebridge,
    LLC. AAA Restoration Co. v. Peek, 
    333 Ga. App. 152
    , 153 (1) (775 SE2d 627) (2015)
    (A mere misnomer of a corporation in a deed transferring title to real property is not
    material and will not invalidate the deed or otherwise taint the chain of title, if the
    identity of the corporation intended is clear or can be ascertained by proof.).
    5
    “future development.” The maps details fifteen residential lots and a parcel labeled
    “Future Development (This Area in [sic] Not to Be Common Area) 4.952 acres.” The
    entire tract is bifurcated by a road, which ends in a cul de sac, and another cul de sac
    branches off at the road’s midpoint, surrounded by five lots. The 4.952 acre parcel
    was not subdivided into residential lots, but it wraps around the cul de sac at the end
    of the road. 4
    The fifteen platted residential lots were developed in 2003. On June 30, 2004,
    Steve Kelly, for “Stonebridge Development,” and the president of the Association
    executed an agreement, reciting that Stonebridge Development had exercised its right
    to annex the Phase 2 Property and filed the required plat and that it had sold and/or
    begun construction of the homes. Referring to Article X of the declaration of
    covenants, the agreement states, “[u]nder the Declaration, the Association and
    [Stonebridge] were to negotiate an amount that [Stonebridge] would pay the
    Association in order to improve the recreation area for the addition of the Phase 2
    4
    Great Water avers that on August 26, 2003, a Warranty Deed from
    Stonebridge Development to Stonebridge of 17.777 Acres (Phase II) was signed by
    T.A. Lupton, President. Great Water, however, provided no record citation for this
    statement.
    6
    Property.”5 Stonebridge agreed to pay the Association $25,000 for recreation area
    improvements. The 2004 Phase 2 agreement provided: “It is understood and agreed
    that this agreement includes the 4.952 acres noted on [the] Final Plat for Future
    development” that was included in the 17.338 acre tract of the Phase 2 Property and
    that Stonebridge could develop the 4.952 acre parcel into lots “at any given time
    (subject, of course, to the Declaration) and these additional lots will be included in
    the Subdivision at no further cost to [Stonebridge].”
    The fifteen homes built according to the Phase 2 plat were sold to homeowners
    between 2004 and 2009. Late in 2009, Great Water bought the still-undeveloped
    4.952 acre parcel and the 13,212 square feet (0.303 acres) parcel (defined as Tract 2
    of the Phase 2 property) from Stonebridge. Among the documents in the closing
    binder was an owner’s affidavit, executed on September 8, 2009, by Joel Richardson,
    the manager of Stonebridge, who deposed that the 4.952 acre parcel and the 0.303
    acre parcel were free of restrictions and encumbrances, “except as set forth in Exhibit
    ‘C’ attached hereto and made a part hereof[.]” As to the 4.952 acre parcel (but not as
    to the 0.303 acre parcel), Exhibit “C” listed as “permitted exceptions” the 1988
    5
    Again, the record supports the trial court’s determination that Stonebridge
    Development was a misnomer in the 2004 Phase 2 agreement for the correct entity,
    Stonebridge, LLC, for the reasons explained in note 
    3, supra
    .
    7
    declaration of covenants for Summer Crest subdivision, as amended in 1994.
    Richardson also executed limited warranty deeds conveying the two parcels to Great
    Water, “subject to those matters described in Exhibit ‘B’ attached hereto and made
    a part hereof.” Exhibit “B,” titled “Permitted Exceptions,” listed matters such as taxes
    not yet due and a utility easement, giving the easements’ recording information.
    Consistent with the owner’s affidavit, Exhibit “B” for the 4.952 acre parcel (but not
    Exhibit “B” for the 0.303 acre parcel) listed the 1988 Summer Crest declaration of
    covenants, as amended in 1994 and thereafter, giving filing dates and deed book
    references. Exhibit “B” also listed “Plat of Survey recorded at Plat Book 830, Page
    135A, aforesaid records.,” i.e., the 2003 Phase 2 plat.
    Also included in the closing binder for the 2009 purchase and sale was
    Richardson’s sworn “Statement of Intent Regarding Amended and Restated
    Declaration of Covenants, Restrictions and Easements,” executed on September 8,
    2009, which stated:
    Stonebridge was the Declarant under the Amended Declaration on May
    23, 2003, when Stonebridge caused to be filed in . . . the real estate
    records of Hall County, Georgia, that certain Final Plat for Summercrest
    Phase 2[] . . . By filing the Subdivision Plat, the Declarant did not intend
    to, and did not, subject all or any portion of the [Phase 2] Property to the
    Amended Declaration. No part of the [Phase 2] Property is subject to the
    8
    Amended Declaration, and the right of the Declarant to subject the
    Property to the Amended Declaration described in Article X of the
    Amended Declaration expired with no part of the [Phase 2] Property
    being made a part of the Amended Declaration.
    Neither of the warranty deeds incorporated or otherwise referenced the Statement of
    Intent. The Statement of Intent, the deed to the 0.303 acre parcel, and the deed to the
    4.952 acre parcel were all filed in the Hall County real property records on October
    7, 2009.
    In 2015, Great Water filed its action seeking a declaratory judgment that the
    4.952 acre parcel and the 0.303 acre parcel are not burdened by the Summer Crest
    declaration of covenants and asserting claims for defamation of title, punitive
    damages, and attorney fees. The Association filed a counterclaim, seeking an
    alternative declaratory judgment that the parcels are burdened by the Summer Crest
    declaration of covenants and asserting claims for unpaid assessments and attorney
    fees. The trial court granted in part and denied in part the parties’ motions for
    summary judgment, declaring that the 4.952 acre parcel is burdened by the
    declaration of covenants and that the 0.303 acre parcel is not burdened by the
    declaration of covenants. The trial court also granted the Association’s cross-motion
    9
    for partial summary judgment as to Great Water’s claims for defamation of title and
    punitive damages.
    Case No. A17A1810
    1. In several related arguments, Great Water contends that questions of material
    fact remain regarding whether the 4.952 acre parcel is burdened by the Summer Crest
    declaration of covenants.
    Under well-settled Georgia law, “[w]hen a grantee accepts a deed and enters
    thereunder, he will be bound by the covenants contained therein, although the deed
    has not been signed by him.” OCGA § 44-5-39. See Reeves v. Comfort, 
    172 Ga. 331
    ,
    333 (
    157 S.E. 629
    ) (1931) (citing predecessor statute); Lend A Hand Charity, Inc. v.
    Ford Plantation Club, Inc., 
    338 Ga. App. 594
    , 598 (2) (b) (791 SE2d 180) (2016)
    (Covenants requiring that property owners in a gated community pay assessments and
    become club members were binding on subsequent grantee upon acceptance of a deed
    of gift.); Bowman v. Walnut Mountain Prop. Owners Assn., Inc., 
    251 Ga. App. 91
    ,
    95-96 (1) (d) (553 SE2d 389) (2001) (physical precedent only) (“[R]estriction of use
    of the land conveyed may burden the land through the deed of title. By accepting a
    deed with covenants and restrictions, the grantee voluntarily consents to be bound by
    such covenants.”) (citations omitted); Daniel F. Hinkel, Pindar’s Georgia Real Estate
    10
    Law and Procedure (7th ed., updated April 2017) §§ 19-187 (“Although a grantee
    does not ordinarily sign a deed, he may become bound by the act of acceptance as
    effectually as if he had signed. Covenants, conditions, charges, and restrictions may
    thus not only become obligations of the immediate grantee, but may run with the land
    and be binding upon his successors in title to the extent of their interest in the
    property.”) (footnotes omitted); 26-157 (“There is danger in reciting that the deed is
    ‘subject’ to certain things; if the title was not encumbered with them, you have made
    it so.” ) (footnote omitted). And it is axiomatic that a grantor in a deed can convey
    only that which it owns and that a grantee can take no greater title than that held by
    the grantor. Interchange Drive, LLC v. Nusloch, 
    311 Ga. App. 552
    , 556-557 (716
    SE2d 603) (2011). Thus, when a declarant burdens its property with a set of
    covenants, conditions, and restrictions that run with the land, one who later accepts
    a deed from the declarant or its assignee is bound by the covenants. 
    Id. “[T]he written
    instrument is considered the true, complete understanding between the parties.”
    (Punctuation and footnotes omitted.) 
    Id. at 556.
    Thus, we begin with the warranty
    deed that conveyed the property from Stonebridge to Great Water.
    As recited above, the deed by which Great Water accepted title to the 4.952
    acre parcel expressly states that the conveyance and the warranty of title contained
    11
    in it were made subject to those matters described in the attached Exhibit B, which
    expressly listed the Summer Crest declaration of covenants. Great Water argues that
    “Permitted Exceptions” . . . is not language which would be used if the
    intention were to ‘subject’ the described property to some type of
    encumbrance. The use of the word “Exceptions” clearly indicates the
    limitation of the warranty, not the establishment of Declaration of
    Covenants or an intention to be bound by the Covenants. In interpreting
    the language of the deed, it is important to understand that the word
    “subject” is, itself, capable of multiple meanings. “Subject” can be either
    noun (a person or thing being discussed, etc.), or an adverb (limited to
    or conditional), or a verb (cause someone or something to undergo an
    experience, etc.). Likewise, the word “matter” may mean “a subject
    under consideration” or “a subject of disagreement.” Because the words
    of the deed are inherently ambiguous, consideration of circumstances is
    critical.
    The construction of a deed presents a question of law which the appellate court
    reviews de novo. Second Refuge Church of Our Lord Jesus Christ, Inc. v. Lollar, 
    282 Ga. 721
    , 724 (2) (653 SE2d 462) (2007).
    In construing a deed, the court’s overriding goal is to ascertain and give
    effect to the intent of the parties. Generally speaking, the intent of the
    parties must be determined from the deed’s text alone, and extrinsic
    evidence will be admitted to interpret the deed only where the deed’s
    12
    text is so ambiguous that its meaning cannot be determined through
    application of the ordinary rules of textual construction. Absent such
    ambiguity, there is no question of fact to be resolved by the factfinder.
    (Footnotes omitted.) 
    Id. at 724-725
    (2). See OCGA § 13-2-2 (2) (When construing
    a contract, “[w]ords generally bear their usual and common signification.”); Laun v.
    AXA Equitable Life Ins. Co., 
    311 Ga. App. 646
    , 648 (1) (716 SE2d 760) (2011) (If the
    language of an agreement is “clear, unambiguous, and capable of only one reasonable
    interpretation, no construction is necessary or even permissible by the court.”).
    “[W]here the terms of a written contract are plain and unambiguous, a court must
    confine itself to the four corners of the document to ascertain the parties’ intent, and
    is not permitted to strain the construction of a contract, so as to discover an
    ambiguity.” (Punctuation and footnotes omitted.) Triple Eagle Associates, Inc. v.
    PBK, Inc., 
    307 Ga. App. 17
    , 23 (2) (b) (704 SE2d 189) (2010). See also Ayers v. Assn.
    of County Commrs. of Georgia-Interlocal Risk Management Agency, 
    332 Ga. App. 230
    , 235 (1) (771 SE2d 743) (2015) (“[A] court may not strain to find an ambiguity
    [in a contract] and must enforce an unambiguous contract as written.”) (citation and
    punctuation omitted); Thornton v. Ga. Farm Bureau Mut. Ins. Co., 
    287 Ga. 379
    , 384
    (2) (b) (695 SE2d 642) (2010) (accord).
    13
    Great Water is asking the Court to strain to discover an ambiguity in the deed.
    The very purpose of a warranty deed is that it commits the grantor to defending
    against any defects in title, even defects that are known to the purchaser at time of the
    deed. Daniel F. Hinkel, Pindar’s Georgia Real Estate Law and Procedure §§ 19-7; 19-
    178; 19-183 (7th ed., updated April 2017). Because few titles are absolutely perfect,
    a warranty deed typically includes a “subject to” clause and specifies encumbrances
    that will not be cured or defended by the grantor. Daniel F. Hinkel, Ga. Real Estate
    Sales Contracts § 8:11 (6th ed.). Certainly lexicographers can debate the various
    alternative meanings of “exceptions,” “subject,” and “matter,” but the usual and
    common meaning of these terms as used in warranty deeds controls our analysis.
    Here, Stonebridge conveyed the 4.952 acre parcel to Great Water in fee simple
    subject to the those matters described in the attached Exhibit “B,” which expressly
    described the Summer Crest declaration of covenants and the Phase 2 plat. We
    discern no ambiguity in the deed. Consequently, we must confine ourselves to the
    four corners of the document to ascertain the parties’ intent and may not, as Great
    Water argues, consider the contradictory impact of the Statement of Intent or other
    14
    extrinsic matters. Second Refuge Church of Our Lord Jesus Christ, Inc. v. 
    Lollar, 282 Ga. at 725
    (2).6
    OCGA § 44-2-20 does not require a different result. That statute sets out the
    requirements for recording an affidavit regarding, among other issues, facts affecting
    title to land or encumbrances upon land, which the clerk of court will index in the
    deed records.7 An affidavit recorded under OCGA § 44-2-20 is not a conveyance but
    is simply notice to the world of the contents of the affidavit. Maxco, Inc. v. Volpe, 
    247 Ga. 212
    , 214 (1) (274 SE2d 561) (1981) (applying predecessor statute); Daniel F.
    Hinkel, Pindar’s Georgia Real Estate Law and Procedure § 23:109 (7th ed., updated
    6
    Granted, the Statement of Intent and other parol evidence might support an
    inference that Great Water wanted to buy, and that Stonebridge wanted to be able to
    sell, the 4.952 acre parcel free from the restrictions imposed by the Summer Crest
    declaration of covenants. Great Water could have refused to accept the deed that
    provided instead that the parcel was subject to, not free from, the declaration. Instead,
    it accepted the deed, and because the deed was unambiguous, the Statement of Intent
    was ineffectual to modify it, despite being contemporaneously recorded and despite
    whether Great Water relied upon it. Whether the evidence might support a claim for
    equitable reformation of the deed, or whether Stonebridge might somehow be liable
    for thwarting Great Water’s plans, are issues that were not before the trial court and
    are not now before this Court.
    7
    “Recorded affidavits shall be notice of the facts therein recited, whether taken
    at the time of a conveyance of land or not, . . . [w]here such affidavits state any . . .
    fact or circumstance affecting title to land or any right, title, interest in, or lien or
    encumbrance upon land.” OCGA § 44-2-20 (a) (9).
    15
    April 2017). The statute does not provide a mechanism for a grantor to cure an
    encumbrance on land the grantor has conveyed subject to an existing encumbrance.
    Kemp v. Neal, 
    288 Ga. 324
    , 327 (2) (704 SE2d 175) (2010).
    Furthermore, the Georgia Property Owners’ Association Act, OCGA § 44-3-
    220 et seq., does not require a different result. That Act provides that a property
    owners’ association instrument includes the declaration, plats, and plans recorded
    pursuant to the Act and that “[a]ny exhibit, schedule, or certification accompanying
    an instrument and recorded simultaneously therewith shall be deemed an integral part
    of that instrument.” OCGA § 44-3-221 (17). Nothing in this statute provides a
    mechanism for a grantor to modify the terms of an unambiguous deed by
    simultaneously recording a contradictory statement of intent.
    In summary, Great Water accepted a deed that unambiguously conveyed the
    4.952 acre parcel subject to the declaration of covenants, and, by doing so, Great
    Water voluntarily consented to be bound by such covenants. Lend A Hand Charity,
    Inc. v. Ford Plantation Club, 
    Inc., 338 Ga. App. at 598
    (2) (b); Interchange Drive,
    LLC v. 
    Nusloch, 311 Ga. App. at 557
    . The trial court’s declaratory judgment to that
    16
    effect, and its grant of the Association’s motion for partial summary judgment and its
    denial of Great Water’s motion for partial summary judgment, were not error.8
    2. Great Water contends that the trial court erred in granting the Association’s
    cross-motion for partial summary judgment as to Great Water’s claims for defamation
    of title and punitive damages.
    “The owner of any estate in lands may bring an action for libelous or
    slanderous words which falsely and maliciously impugn his title if any damage
    accrues to him therefrom.” OCGA § 51-9-11. “In order to sustain an action of this
    kind, the plaintiff must allege and prove the uttering and publishing of the slanderous
    words; that they were false; that they were malicious; that he sustained special
    damage thereby; and that he possessed an estate in the property slandered.” (Citation
    and punctuation omitted) Veatch v. Aurora Loan Svcs., LLC, 
    331 Ga. App. 597
    , 600
    (1) (771 SE2d 241) (2015). Great Water alleged that the Association falsely and
    maliciously impugned its title when it recorded an amended declaration in 2012 that
    asserted that the 4.952 acre parcel is subject to the Summer Crest declaration of
    covenants. Because the 4.952 acre parcel is subject to the Summer Crest declaration
    8
    Because our review of the evidence is de novo, and we do not defer to the trial
    court’s legal analysis, we do not need to address Great Water’s remaining challenges
    to the trial court’s analysis, which do not pertain to our holding.
    17
    of covenants, as explained in Division 
    1, supra
    , Great Water cannot sustain an action
    for slander to title, which must be based on the uttering of false words. Executive
    Excellence, LLC v. Martin Bros. Investments, LLC, 
    309 Ga. App. 279
    , 285 (1) (710
    SE2d 169) (2011); Roofing Supply of Atlanta, Inc. v. Forrest Homes, Inc., 279 Ga.
    App. 504, 508 (3) (632 SE2d 161) (2006); Simmons v. Futral, 
    262 Ga. App. 838
    , 842
    (586 SE2d 732) (2003); Premier Cabinets, Inc. v. Bulat, 
    261 Ga. App. 578
    , 583-584
    (6) (583 SE2d 235) (2003).9
    9
    Great Water contends that, if the 4.952 acre parcel is subject to the Summer
    Crest declaration of covenants, then the parcel is effectively limited “to a beautiful,
    wooded parcel, incapable of development, proximate to Lake Lanier which, no doubt,
    would be ‘enjoyed’ by the homeowners of Summercrest.” From the beginning, the
    declaration of covenants has provided that “[l]ots may be used for single-family
    residences only[,]” and “no lot may be split, divided, or subdivided for sale, resale,
    gift, transfer, or otherwise.” Furthermore, the declaration has always defined “lot”
    broadly, as “any parcel of land shown upon a subdivision plat recorded in the Office
    of the Clerk of the Superior Court of Hall County, Georgia, covering any portion of
    the property, provided, however, that no portion of the Common Property shall ever
    be a lot.” In the context of the Association’s motion for judgment on the pleadings,
    it argued that the declaration defines the term “lot” as “any ‘parcel’ of land shown on
    a plat without any distinction between subdivided lots or un-subdivided parcels.”
    Still, Great Water has not identified any pleading or evidence in the record showing
    that the Association has ever taken the untenable position that the declaration of
    covenants prohibits Great Water from subdividing the 4.952 acre parcel into lots of
    a size consistent with the declaration and building single-family homes on the lots or
    selling the property to another developer.
    18
    Because the Association was entitled to summary judgment on Great Water’s
    claim for defamation of title, the punitive damages claim against arising from the
    same allegedly wrongful conduct must also fail, as it was a derivative claim. “A
    derivative claim cannot survive the absence of compensatory damages on the
    underlying claim.” Corrugated Replacements, Inc. v. Johnson, 
    340 Ga. App. 364
    , 371
    (4) (797 SE2d 238) (2017). See Chaney v. Harrison & Lynam, LLC, 
    308 Ga. App. 808
    , 819 (3) (708 SE2d 672) (2011) (Because the plaintiffs could not establish their
    underlying tort claims, including defamation, their claim for punitive damages was
    likewise subject to summary adjudication.).
    Case No. A17A1811
    3. The Association cross-appeals the denial of its motion for judgment on the
    pleadings. In considering the Association’s motion for judgment on the pleadings, the
    trial court determined that the pleadings did not conclusively establish that the 4.952
    acre parcel was subject to the Summer Crest declaration of covenants, and denied the
    motion. The Association contends, inter alia, that the trial court erred because the
    2003 Phase 2 Plat alone subjected the 4.952 acre parcel to the Summer Crest
    declaration of covenants. As explained in Division 
    1, supra
    , the trial court ultimately
    concluded that the 4.952 acre parcel as a matter of law was subject to the Summer
    19
    Crest declaration of covenants, and we agree. Any error in the trial court’s
    interlocutory ruling on the Association’s motion for judgment on the pleadings is
    therefore moot. See Green v. Sams, 
    209 Ga. App. 491
    , 499 (2) (433 SE2d 678)
    (1993), called into question on other grounds, Sewell v. Cancel, 
    295 Ga. 235
    , 239, n.
    2 (759 SE2d 485) (2014).
    The Association also appeals from a purported ruling in the summary judgment
    order that allowed Great Water to withdraw an admission, specifically, that the Phase
    2 plat was prepared by (or on behalf of) Stonebridge, LLC. This argument is likewise
    moot for the reasons explained in Division 1.
    Because the arguments raised in the Association’s cross-appeal are moot, Case
    No. A17A1811 is dismissed.
    Judgment affirmed in Case No. A17A1810. Appeal dismissed as moot in Case
    No. A17A1811. Andrews and Rickman, JJ., concur.
    20
    

Document Info

Docket Number: A17A1810; A17A1811

Citation Numbers: 811 S.E.2d 1

Judges: Ellington

Filed Date: 1/2/2018

Precedential Status: Precedential

Modified Date: 10/19/2024