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Community & Southern Bankv.Lovell Et Al.

CourtSupreme Court of Georgia
Docket No.S17A0765
DecidedOctober 30, 2017
JudgesSupreme Court of Georgia
Tags
CivilBusiness LawProperty LawFederal JurisdictionPreemptionStatutory InterpretationMotion to DismissInterlocutory AppealReversalVacaturRemand
Case Summary

Community and Southern Bank acquired a judgment against Virgil Lovell after Georgia Trust Bank failed and the Federal Deposit Insurance Corporation sold the judgment to the bank. When Lovell and related entities transferred property, the bank sued under Georgia’s Uniform Fraudulent Transfers Act to set aside the conveyances. The Supreme Court of Georgia held that the Act generally permits a creditor to reach only property transferred by the debtor and therefore affirmed dismissal of claims concerning property conveyed by corporations for which no corporate debt was alleged. The court also rejected the trial court’s conclusion that a federal statute extending the time to sue failed as a matter of law to preempt Georgia’s statute of repose. Because the record did not clearly establish whether the federal extender statute applied to the bank as an FDIC assignee, the court left that issue for the trial court. The judgment was affirmed in part, reversed in part, vacated in part, and remanded.

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Community & Southern Bank V. Lovell Et Al. — The Atlanta Gleaner