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GREENE v. KELLY

Supreme Court of Georgia1942-03-11No. No. 14009
193 Ga. 675

Summary

Holding. The judgment dismissing the equitable petition was reversed because, although the petition was defective regarding the alleged repurchase agreement, it stated a cause of action entitling Greene to recover the $250 that Kelly accepted and retained under an alleged repurchase arrangement, subject to deduction for any properly adjudged rental charges.

Greene sought equitable relief against Kelly, claiming an agreement to repurchase land after a foreclosure sale. The trial court dismissed the petition on general demurrer. An equitable petition cannot be dismissed on general demurrer if it states any valid cause of action for equitable or legal relief. While Greene's petition was defective regarding the alleged repurchase agreement—failing to specify the terms clearly and to demonstrate compliance—the petition did allege that Kelly had accepted $250 from Greene under some repurchase arrangement and retained it despite now refusing to recognize the agreement's validity.

The court held that Kelly should be required to refund the $250 received under the alleged agreement, subject to any proper rental charges. Kelly argued on demurrer that the amendment showed no right to recovery of the $250, claiming Greene's response to Kelly's answer admitted rental liability. However, examination of the pleadings showed that Greene's response admitted only a proportionate part of $125 in potential rent, not full liability for $250 in rent. Accordingly, the judgment dismissing the petition was reversed.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether an equitable petition may be dismissed on general demurrer when it states any cause of action for equitable relief
  • Whether a petition adequately alleges an equitable claim for specific performance or cancellation of a deed when terms are indefinite and compliance is not shown
  • Whether a defendant who retains money paid under a repurchase agreement must refund it when denying the agreement's validity

Procedural posture

The trial court dismissed Greene's amended equitable petition on general demurrer, and Greene appealed.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Jenkins, Justice.

1. An equitable petition is not subject to dismissal on general demurrer, if it states a cause of action as to any equitable or legal relief prayed. Grant v. Hart, 192 Ga. 152 (14 S. E. 2d, 860), and cit.; Lyles v. Watson, 189 Ga. 768 (7 S. E. 2d, 909).

(а) Where, on a renewed general demurrer, the-judge dismissed the petition as amended, without passing on the propriety of allowing the amendment as setting up a new cause of action, that question, though raised by special demurrer, can not be considered on exceptions taken to the dismissal of the petition on general demurrer. See, in this connection, Laslie v. Gragg Lumber Co., 184 Ga. 794, 803 (193 S. E. 763), and cit.; Aycock v. Williams, 185 Ga. 585, 588 (196 S. E. 54), and cit.; Tingle v. Maddox, 186 Ga. 757 (198 S. E. 722).

(б) Nor does any question arise as to whether the petition stated a cause of action for a restraining order and injunction against the defendant’s enforcement of dispossessory-warrant proceedings against the plaintiff, on the ground that the plaintiff because of poverty could not defend at law by giving the statutory bond (see Napier v. Varner, 149 Ga. 585 (2), 101 S. E. 519; Hull v. Holmes, 42 Ga. 180), since, as conceded in the brief for the plaintiff in error, the injunctive relief claimed by the plaintiff has been refused; and no exceptions being taken, such refusal is “now final.” The question as to any such equity in the petition is therefore moot.

2. The judge did not err in holding that there was no equity in the petition by an alleged vendee of land against the vendor, in so far as it sought to cancel the deed made by the defendant to himself after his foreclosure sale, since the petition fails to set forth sufficient definite terms of the alleged agreement whereby the foreclosure proceeding would be postponed, and for the further reason that the petition fails to show that the plaintiff on his part complied with the terms of the agreement so far as they were alleged. Nor does the petition set forth with any fullness or definiteness the terms of any alleged new contract of purchase and sale after the foreclosure, or any compliance, or tender in lieu thereof, as to the payment of any moneys then due under the alleged new agreement, such as would authorize a court of equity to recognize and enforce a valid new agreement.

3. While the petition was defective, as set forth in the preced ing paragraph, it does allege that under some sort of agreement of repurchase, the defendant after the foreclosure sale accepted from the plaintiff the sum of $250, which he still retains. Since, as alleged, the defendant refuses to recognize the validity of the agreement under which the payment was made, he should be required to refund the amount received and held thereunder, less any proper amount that might be adjudged against the plaintiff as rental.

4. There is no merit in the contention of the defendant, under his general demurrer to the amended petition, that the amendment showed no right to a recovery of any part of the $250 paid by the plaintiff, for the reason that he expressly incorporated into his amendment to the petition his response to the defendant’s answer, and that this response admitted his liability for $250 rental. On examination of these pleadings, it appears that the plaintiff in his response does not admit any rent liability, unless it be for a stated proportionate part of $125.

Judgment reversed.

All the Justices concur.