Lakeside Investments Grp., Inc. v. Allen, 559 S.E.2d 491 (Ga. Ct. App. 2002). · Go Syfert
Lakeside Investments Grp., Inc. v. Allen, 559 S.E.2d 491 (Ga. Ct. App. 2002). Cases Citing This Book View Copy Cite
“even though the buyer may have early on unsuccessfully attempted to rescind the contract, improving the property thereafter shows an intent to treat the property as the buyer's own and thereby affirms the contract.”
50 citation events (50 in the last 25 years) across 5 distinct courts.
Strongest positive: Weed Wizard Acquisition Corp. v. A.A.B.B., Inc. (gand, 2002-05-17)
Treatment trajectory · 2002 → 2026 · click a year to view as-of
2002 2014 2026
Top citers, strongest first. 16 distinct citers.
examined Cited as authority (quoted) Weed Wizard Acquisition Corp. v. A.A.B.B., Inc. (2×)
N.D. Ga. · 2002 · signal: see · quote attribution · 2 verbatim quotes · confidence high
even though the buyer may have early on unsuccessfully attempted to rescind the contract, improving the property thereafter shows an intent to treat the property as the buyer's own and thereby affirms the contract.
cited Cited as authority (rule) GORDON v. WELLS FARGO BANK NA INC
M.D. Ga. · 2023 · confidence medium
Grp., Inc. v. Allen, 253 Ga. App. 448, 450 , 559 S.E.2d 491, 493 (2002).
cited Cited as authority (rule) Vista Acquisitions, LLC v. West Shore Walden LLC
N.D. Ga. · 2023 · confidence medium
Grp., Inc. v. Allen, 559 S.E.2d 491, 450 (Ga. Ct. App. 2002) (internal quotation marks and citation omitted). 2.
discussed Cited as authority (rule) Bpp069, LLC v. Lindfield Holdings, LLC (2×)
Ga. Ct. App. · 2018 · confidence medium
(Citations, punctuation and footnotes omitted.) Lakeside Investments Group v. Allen, 253 Ga. App. 448, 450 (1) ( 559 SE2d 491 ) (2002).
discussed Cited as authority (rule) BPP069, LLC v. Lindfield Holdings, LLC
Ga. Ct. App. · 2018 · confidence medium
As in Hill v. Century 21 Max Stancil Realty , 187 Ga. App. 754 , 371 S.E.2d 217 (1988), "[t]here is no evidence whatsoever *762 that [the buyer] attempted to ascertain for [itself] the zoning status of the property prior to closing, even though [the buyer] allege[s] the zoning status was critical to the purchase of the property." Id. at 755 (2), 371 S.E.2d 217 (affirming grant of summary judgment to defendants on buyer's claim for fraud). "[A] buyer cannot show justifiable reliance where the alleged misrepresentation concerns a matter of public record that is readily ascertainable upon inquiry…
discussed Cited as authority (rule) Nebo Ventures, LLC v. Novapro Risk Solutions, L.P.
Ga. Ct. App. · 2013 · confidence medium
The elements of fraud are “(1) false representation by defendant; (2) scienter [or knowledge of the alleged falsehood]; (3) intent to induce the plaintiff to act or refrain from acting; (4) justifiable reliance by the plaintiff; and (5) damage to the plaintiff.” Lakeside Investments Group v. Allen, 253 Ga. App. 448, 450 ( 559 SE2d 491 ) (2002).
discussed Cited as authority (rule) Nebo Ventures, LLC v. Novapro Risk Solutions, Lp
Ga. Ct. App. · 2013 · confidence medium
The elements of fraud are “(1) false representation by defendant; (2) scienter [or knowledge of the alleged falsehood]; (3) intent to induce the plaintiff to act or 6 refrain from acting; (4) justifiable reliance by the plaintiff; and (5) damage to the plaintiff.” Lakeside Investments Group v. Allen, 253 Ga. App. 448, 450 ( 559 SE2d 491 ) (2002).
discussed Cited as authority (rule) Jeff Zacharius v. Frank Dodds
Ga. Ct. App. · 2013 · confidence medium
Instead of returning to Savannah Air the settlement funds which he received, Dodds showed an intent to treat the funds as his, thereby opting to affirm the settlement and sue for damages from the alleged fraud or breach.14 Dodds was thus 13 Meadow River Lumber Co., supra 176 (2) (punctuation and footnote omitted); OCGA § 13-4-60 (“A contract may be rescinded at the instance of the party defrauded; but, in order to rescind, the defrauded party must promptly, upon discovery of the fraud, restore or offer to restore to the other party whatever he has received by virtue of the contract if it is…
discussed Cited as authority (rule) Dodds v. Dabbs, Hickman, Hill & Cannon, LLP
Ga. Ct. App. · 2013 · confidence medium
See Novare Group, supra; Lakeside Investments Group v. Allen, 253 Ga. App. 448, 452 (2) (a) ( 559 SE2d 491 ) (2002) (buyer claiming it was fraudulently induced to enter a contract undisputably affirmed contract when, after learning of the fraud, it had the property rezoned and huilt an office building thereon with plans to build more; even though the buyer may have early on unsuccessfully attempted to rescind the contract, improving the property thereafter showed an intent to treat the property as the buyer’s own and thereby affirmed the contract); Wender & Roberts, supra at 360-361 (5); Mea…
discussed Cited as authority (rule) Douglas v. Bigley (2×) also: Cited "see"
Ga. Ct. App. · 2006 · confidence medium
A misrepresentation is intended to deceive where there is intent that the representation he acted upon by the other party.’ ”) (emphasis omitted); Chastain, supra; Tigner, supra. 13 See Lakeside Investments Group v. Allen, 253 Ga. App. 448, 450 (1) ( 559 SE2d 491 ) (2002). 14 Capriulo v. Bankers Life Co., 178 Ga. App. 635, 638 (2) ( 344 SE2d 430 ) (1986). 15 Yarbrough v. Kirkland, 249 Ga. App. 523, 526 (2) ( 548 SE2d 670 ) (2001). 16 See id. at 527-528 ; Capriulo, supra at 640 .
cited Cited as authority (rule) Wal-Mart Stores, Inc. v. AIG Life Insurance
Del. Ch. · 2005 · confidence medium
Group, Inc. v. Allen, 253 Ga.App. 448 , 559 S.E.2d 491, 493 (2002); Great Lakes Chem.
cited Cited as authority (rule) Howard v. Barron
Ga. Ct. App. · 2005 · confidence medium
Id. at 450 (1).
cited Cited as authority (rule) Torrente v. Metropolitan Atlanta Rapid Transit Authority
Ga. Ct. App. · 2004 · confidence medium
(Punctuation omitted.) Lakeside Investments Group v. Allen, 253 Ga. App. 448, 450 (1) ( 559 SE2d 491 ) (2002).
discussed Cited as authority (rule) Little Sky, Inc. v. Rybka (2×)
Ga. Ct. App. · 2003 · confidence medium
(Footnote omitted.) Lakeside Investments Group v. Allen, 253 Ga. App. 448, 451 (2) (a) ( 559 SE2d 491 ) (2002).
discussed Cited as authority (rule) Middleton v. Troy Young Realty, Inc.
Ga. Ct. App. · 2002 · confidence medium
Lakeside Investments Group v. Allen, 253 Ga. App. 448, 450 ( 559 SE2d 491 ) (2002); Smalls v. Blueprint Dev., 230 Ga. App. 556, 559 (1) ( 497 SE2d 54 ) (1998). (a) The express language of the purchase contract states plainly in unambiguous terms that “[p]ayment of commission to a Broker shall not create an agency or subagency relationship between Buyer’s Broker and either Seller or Seller’s Broker.” Further, the contract clearly stated for the listing broker, Troy Young Realty, “[l]isting Broker has entered into a client relationship with only the seller” and did not mark “dual a…
discussed Cited as authority (rule) Ades v. Werther
Ga. Ct. App. · 2002 · confidence medium
Thus, we address the two counts as one claim of fraud. 12 Lakeside Investments Group v. Allen, 253 Ga. App. 448, 450 ( 559 SE2d 491 ) (2002). 13 See id. 14 See Buckley v. Turner Heritage Homes, 248 Ga. App. 793, 795 (3) ( 547 SE2d 373 ) (2001). 15 See Fann v. Mills, 248 Ga. App. 460, 464 (2) ( 546 SE2d 853 ) (2001). 16 (Punctuation omitted.) Id. 17 See Dyer v. Honea, 252 Ga. App. 735, 740 (3) (b) ( 557 SE2d 20 ) (2001). 18 See id. 19 See OCGA § 13-5-30 (2). 20 Werther also contends that “Ades sent this letter with the intention of deceiving Plaintiff into believing that. . .
Lakeside Investments Group, Inc.
v.
Allen
A01A1685.
Court of Appeals of Georgia.
Jan 25, 2002.
559 S.E.2d 491
Davidson & Fuller, Stephen P. Fuller, for appellant., Thompson, O’Brien, Kemp & Nasuti, John P. O’Brien, Paul B. Frickey, Ronald F. Negin, for appellee.
Miller, Andrews, Eldridge.
Cited by 20 opinions  |  Published
1 passages pin-cited by 1 case
Pinpoint authority: bottom 65%
Citer courts: N.D. Georgia (2)
Miller, Judge.

Representing landowners seeking to sell their property, Briggs Allen told Lakeside Investments Group, Inc. that the piece of property was zoned entirely for office and industrial use (O & I), when in fact only the front portion was so zoned. Lakeside purchased the property for office use and did not learn the true zoning status of the property until it applied for a building permit. Lakeside sued Allen for fraud, and the trial court granted Allen summary judgment on the ground that zoning status is a matter of law and therefore representations concerning such cannot serve as a basis for fraud. [1] We agree with the trial court and affirm.

On appeal of a grant of summary judgment, we review the evidence de novo to determine whether the trial court erred in concluding that no genuine issue of material fact remains and that the movant was entitled to judgment as a matter of law. [2] We construe the evidence in favor of the nonmovant. [3]

So construed, the evidence shows that in late 1997 Lakeside’s representative Walter Duncan saw Allen’s “For Sale” sign on the[*449] property, which advertised the property as zoned O & I. Duncan contacted Allen, who represented the landowners and who told Duncan that the entire three acres were zoned O & I and gave him a flyer confirming such. In truth, only the front portion was so zoned with the back portion zoned residential, a fact with which Allen was very familiar.

In March 1998 Lakeside entered into a contract with the landowners to purchase the property. Allen was also a party to the contract, signing as the broker representing the landowners. The contract had a merger provision that made nonbinding any representations not included in the written agreement and further had a disclaimer provision in which Lakeside acknowledged that it was not relying on any representations of Allen concerning the purchase and ownership of the property. Title was to be conveyed subject to zoning ordinances affecting the property. The contract contained a handwritten stipulation that it was contingent upon Lakeside obtaining within 30 days any zoning approvals from the county needed for the intended office use of the property.

Duncan visited the Gwinnett County zoning office, where the county employees told him that the entire property was zoned O & I and gave him a copy of some documents that did not directly address the zoning status of the property. Duncan did not review the official zoning map nor the resolution approving the commercial rezoning of the property. Convinced that he had exhausted all possible avenues of research and confidently relying on the statements made to him by employees of the comity zoning office, Duncan felt satisfied regarding the zoning status of the property, and so Lakeside purchased it in May 1998.

Within weeks, Duncan returned to the county offices to obtain a building permit, when he was informed for the first time that only a portion of the property was zoned O & I. At that time he reviewed the official county zoning map and the county resolution rezoning only the front portion of the property to O & I. He contacted the original landowners and sought to rescind the sales transaction, but they refused. He then successfully sought rezoning from the county to have the entire property zoned O & I, and Lakeside has since built one office building on the property with plans to build four more.

Lakeside sued Allen for fraud and sought damages caused by the delay and expense in obtaining the rezoning of the entire property to O & I. Allen moved for summary judgment on the grounds that the contract’s merger clause precluded reliance on the alleged misrepresentation and that zoning status was a matter of law that could not serve as a basis for fraud. The court granted the motion, agreeing with Allen’s rationale and finding particularly persuasive the argument that zoning status is a matter of law. Lakeside appeals,[*450] enumerating that the court erred in holding that misrepresentation and concealment in zoning status can never constitute fraud.

We evaluate whether some evidence supports the five elements of fraud: (1) false representation by defendant; (2) scienter; (3) intent to induce the plaintiff to act or refrain from acting; (4) justifiable reliance by the plaintiff; and (5) damage to the plaintiff. [4] The absence of a single element will sustain summary judgment. [5] We hold that the element of justifiable reliance is missing for two independent reasons.

1. First, a misrepresentation as to a matter of law “is a statement of opinion only and can not afford a basis for a charge of fraud or deceit in the making of the contract.” [6] This is because all persons are presumed to know the law and therefore cannot be deceived by erroneous statements of law. [7] Since zoning is a legislative function of the county, “whether land has been zoned, and if so, the uses which may be made of the land under the applicable law or ordinance [are] a matter of law” and therefore cannot serve as a basis for a fraud action. [8] As explained in Gignilliat v. Borg, 9 Lakeside’s citation to Flannagan v. Clark [10] for a contrary proposition is erroneous.

Moreover the sales contract here is expressly subject to zoning ordinances affecting the property. This provision alone put Lakeside “on notice of whatever ordinances Gwinnett County may have adopted applicable to the particular land. The ordinances were equally accessible to the seller and the purchased ] for determining what their effect on use of the land might be.” [11] Simply put, a buyer cannot show justifiable reliance where the alleged misrepresentation concerns a matter of public record that is readily ascertainable upon inquiry. [12] Here the resolution rezoning the property and the official zoning map were matters of public record available for Lakeside’s review. Lakeside’s decision instead to rely on the oral statements of the county employees is not grounds for holding Allen liable.

Lakeside seeks to distinguish its case on the ground that the underlying fraud is fraudulent concealment, not direct misrepresentation. The record belies this assertion, for Duncan testified that Allen directly told him that Allen had the whole property zoned[*451] O & I. As argued by Lakeside in its appellate brief, the flyer Allen then gave Duncan confirmed “that the property was three acres in size and it was entirely zoned O & I.”

Moreover, even if this case were one of only fraudulent concealment, that is a distinction without a difference. Zoning status is still a matter of law, whether the defendant directly misrepresents it or conceals it. In either case, the plaintiff is still presumed to know what the zoning regulations do or do not permit. [13] Zoning status, whether concealed or misrepresented, is discoverable by a diligent review of the county zoning ordinance and records and therefore cannot serve as a basis for a fraud action. [14]

2. Second, even if Lakeside could have justifiably relied on Allen’s misrepresentations concerning zoning status, the undisputed evidence reflects that Lakeside did not. Not only does the contract preclude such reliance, but Duncan testified that he relied on his own investigation at the Gwinnett zoning office.

(a) A party claiming he was fraudulently induced to enter a contract has two possible remedies: (i) promptly rescind the contract after discovering the fraud and sue in tort for recovery of the contract’s consideration (as well as other resulting damages); or (ii) affirm the contract and sue for damages resulting from the fraud. [15] If the party chooses the latter option and affirms the contract, however, he is bound by its terms, including the provisions of a merger clause. [16] Indeed, “[t]he presence of a merger clause is determinative if the defrauded party has not rescinded but has elected to affirm the contract.” [17] Thus, real estate purchasers may not sue a seller’s agent for oral misrepresentations concerning the property where the real estate contract contains a merger clause and rescission is not sought. [18]

Here Allen represented the sellers and was himself a party to the written contract in which all parties agreed that (i) no representations not contained in the contract were binding and (ii) Lakeside was not relying on any representations of Allen concerning the purchase or ownership of the property. The contract does not address the specific zoning status of the property, but makes the sale subject to the zoning ordinances affecting the property. Thus, under the con[*452] tract Lakeside cannot now claim reliance on Allen’s pre-contract representations concerning zoning and sue for fraud. As Lakeside does not seek rescission of the contract, it is bound by the contract’s terms.

Decided January 25, 2002 Cert. applied for. Davidson & Fuller, Stephen P. Fuller, for appellant. Thompson, O’Brien, Kemp & Nasuti, John P. O’Brien, Paul B. Frickey, Ronald F. Negin, for appellee.

Citing Crews v. Cisco Bros. Ford-Mercury, [19] Lakeside attempts to excuse its conduct by arguing that it sought rescission and was refused and that its obligations to a third-party lender preclude its tendering back the property. This, however, does not explain why in its complaint Lakeside seeks only damages and not rescission. As explained in Rampey v. Jay Pontiac GMC Truck, [20] reliance on Crews is misplaced where rescission is not sought in the complaint. [21] Moreover, Lakeside undisputably affirmed the contract when, after learning of the fraud, it had the property rezoned and built an office building thereon with plans to build more. Even though the buyer may have early on unsuccessfully attempted to rescind the contract, improving the property thereafter shows an intent to treat the property as the buyer’s own and thereby affirms the contract. [22]

(b) Furthermore, Lakeside’s representative Duncan testified without equivocation that he relied on the results of his investigation at the Gwinnett zoning office in determining the zoning status of the property. As he later conducted his own independent investigation and relied on the statements of the county employees regarding zoning, as a matter of law he did not rely on Allen’s earlier statements and therefore cannot show fraud. [23]

The trial court correctly granted summary judgment to Allen.

Judgment affirmed.

Andrews, P. J., and Eldridge, J., concur.
1

See Gignilliat v. Borg, 131 Ga. App. 182, 183 (1), (3) (205 SE2d 479) (1974).

2

Moore v. Food Assoc., 210 Ga. App. 780, 781 (437 SE2d 832) (1993).

4

Smalls v. Blueprint Dev., 230 Ga. App. 556, 559 (1) (497 SE2d 54) (1998).

8

Id. at 183 (1), (3); accord Davis v. Northside Realty Assoc., 165 Ga. App. 96-97 (1) (299 SE2d 186) (1983).

12

Walden v. Smith, 249 Ga. App. 32, 35 (1) (546 SE2d 808) (2001); see Hill v. Century 21 &c. Realty, 187 Ga. App. 754, 756 (2) (371 SE2d 217) (1988).

14

See id.; cf. Smalls, supra, 230 Ga. App. at 557 (1) (passive concealment exception to the general rule of caveat emptor concerns only concealed defects that purchasers in the exercise of due diligence could not detect).

15

G. Mansour, Inc. v. Mansour’s, Inc., 233 Ga. App. 7, 9 (1) (503 SE2d 304) (1998).

16

Id.

17

(Citations and punctuation omitted.) Id.

18

Pennington v. Braxley, 224 Ga. App. 344, 345-346 (1) (480 SE2d 357) (1997); Hightower v. Century 21 &c. Realty, 214 Ga. App. 522, 523-524 (1) (448 SE2d 271) (1994).

20

211 Ga. App. 632 (440 SE2d 52) (1993) (physical precedent only).

21

Id. at 633; accord Markowitz v. Wieland, 243 Ga. App. 151, 153 (1) (532 SE2d 705) (2000); see Owens v. Union City Chrysler-Plymouth, 210 Ga. App. 378, 380 (436 SE2d 94) (1993).

22

Paden v. Murray, 240 Ga. App. 487, 489 (1) (523 SE2d 75) (1999); accord Aliabadi v. McCar Dev. Corp., 249 Ga. App. 309, 313-314 (2) (547 SE2d 607) (2001).