REL Dev. Inc. v. Branch Banking & Trust Co.; I-20 East, Inc. v. Branch Banking & Trust Co.

A bank had no obligation to pursue foreclosure proceedings with regard to secured property, but was authorized, both by the law and the promissory notes in question, to pursue only lawsuits against the debtors and guarantors to recover the secured debts.

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In these two actions to collect on unpaid promissory notes, the debtors and guarantors appeal the summary judgments awarded to Branch Banking & Trust Co. the “Bank”, arguing evidence showed i the Bank failed to mitigate damages, and ii the Bank failed to re-accelerate the notes after foreclosure proceedings were cancelled. We agree with the trial court that neither argument has merit, and we therefore affirm in both cases. 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 or denial 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

So viewed, the evidence shows that two entities REL Development, Inc. and I-20 East, Inc. managed by Robert Lanier borrowed money from the Bank in three transactions. REL Development borrowed over $3.5 million in December 2004 and an additional $562,500 in March 2005, with each debt secured by separate tracts of real property and guaranteed by another Lanier entity REL Properties, Inc. and by Lanier personally. I-20 East, Inc. borrowed $120,000 in June 2005, which debt was also secured by a tract of land but was only guaranteed by Lanier personally. When the three debts went into default due to nonpayment, the Bank in June 2008 gave written notice of acceleration to the respective debtors and guarantors and also began foreclosure proceedings scheduled for August 2008.

REL Dev. Inc. v. Branch Banking & Trust Co.; I-20 East, Inc. v. Branch Banking & Trust Co.

A bank had no obligation to pursue foreclosure proceedings with regard to secured property, but was authorized, both by the law and the promissory notes in question, to pursue only lawsuits against the debtors and guarantors to recover the secured debts.

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