O.C.G.A. § 23-1-15 (2019)

Annotations

Law reviews. - For note, the voluntary-payment doctrine in Georgia, see 16 Ga. L. Rev. 893 (1982).

JUDICIAL DECISIONS ANALYSIS GENERAL CONSIDERATION EQUAL FAULT ILLUSTRATIVE CASES General Consideration As a general rule, equity will not grant relief to a party who comes into court with unclean hands, or is guilty of an illegal or immoral act, nor aid a grantor or the grantor’s administrator in seeking to cancel a security deed which was executed by the grantor for the purpose of hindering, delaying or defrauding creditors; these rules stem from the just and salutary principle that one will not be permitted to profit by one’s own wrong, and apply when a party is seeking the aid of equity in the enforcement of executory contracts or its aid under an executed contract. Fuller v. Fuller, 211 Ga. 201, 84 S.E.2d 665 (1954). When both parties are at fault. - O.C.G.A. § 23-1-15, states that when both parties are equally at fault, equity will not interfere but will leave them where it finds them. The rule is otherwise if the fault of one decidedly overbalances that of the other. Levine v. SunTrust Robinson Humphrey, 321 Ga. App. 268, 740 S.E.2d 672 (2013). Cited in Felder v. Paulk, 165 Ga. 135, 139 S.E. 873 (1927); Nowell v. Mayor of Monroe, 177 Ga. 648, 171 S.E. 136 (1933); Harrell v. Fiveash, 182 Ga. 324, 185 S.E. 327 (1936); Turner v. Davidson, 183 Ga. 404, 188 S.E. 828 (1936); Roberts v. Roberts, 55 Ga. App. 456, 190 S.E. 442 (1937);

Gibbs v. H.T. Henning Co., 189 Ga. 675, 7 S.E.2d 238 (1940); Townsend v. Tattnall Bank, 76 Ga. App. 500, 46 S.E.2d 607 (1948); Clifton v. Dunn, 208 Ga. 326, 66 S.E.2d 735 (1951); Pearl Optical, Inc. v. Pearle Optical of Ga., Inc., 218 Ga. 701, 130 S.E.2d 223 (1963); Oliver v. Forshee, 224 Ga. 200, 160 S.E.2d 828 (1968); Adams v. Smith, 129 Ga. App. 850, 201 S.E.2d 639 (1973); Daubresse v. Smithey, 231 Ga. 725, 204 S.E.2d 133 (1974); Griggs v. Griggs, 242 Ga. 96, 249 S.E.2d 566 (1978); Head v. Walker, 243 Ga. 108, 252 S.E.2d 440 (1979); Holmes v. Henderson, 274 Ga. 8, 549 S.E.2d 81 (2001). Equal Fault In fraudulent transactions equity leaves both parties just as it finds them. Harrell v. Fiveash, 182 Ga. 362, 185 S.E. 327 (1936). If two parties engage in a fraudulent transfer and are in pari delicto, equity will leave the parties where it finds them. Laxton v. Laxton, 234 Ga. App. 221, 507 S.E.2d 146 (1998). Equal fault rule not applicable when questions of fact present. - In a negligence and breach of trust action, because there were questions of fact about the relative fault of each party the equity maxim of when two parties are equally at fault, one may not recover from the other

Equal Fault (Cont’d) did not apply. Levine v. SunTrust Robinson Humphrey, 321 Ga. App. 268, 740 S.E.2d 672 (2013). Neither a court of law nor a court of equity will lend its aid to a party when it affirmatively appears that the plaintiff and defendant are in pari delicto. Nash v. Jones, 224 Ga. 372, 162 S.E.2d 392 (1968). Illustrative Cases Rule that equity refuses to interfere where both parties are at fault does not apply when the faults are unequal. Atlanta Ass’n of Fire Ins. Agents v. McDonald, 181 Ga. 105, 181 S.E. 822 (1935). If the fault of one decidedly overbalances the other, equity may interfere. Atlanta Ass’n of Fire Ins. Agents v. McDonald, 181 Ga. 105, 181 S.E. 822 (1935). No claim to nonjudicial foreclosure sale. - The son had no claim to the proceeds of a nonjudicial foreclosure sale conducted by his father when the son had executed a promissory note and deed to his father for the express purpose of delaying, hindering, or defrauding a potential judgment creditor, and thus had unclean hands, and the evidence showed that the proceeds did not exceed the amount of the promissory note, interest, advertising costs, and attorney fees. Laxton v. Laxton, 234 Ga. App. 221, 507 S.E.2d 146 (1998). Transaction fraudulent at inception requires leaving parties where it finds them. - When transaction upon which suit was instituted was fraudulent in its inception, and petitioner’s testator and the defendant were in pari delicto,

equity will not interfere, but will leave the parties where it finds them. Roberts v. Roberts, 182 Ga. 568, 186 S.E. 192 (1936). Two parties violating penal statutes. - When one is engaged with another in the simultaneous and willful violation of the same penal statute, one cannot recover damages for injuries inflicted upon that person through the negligence of one’s joint wrongdoer unless the violation of the statute was not a contributing cause of the injuries; this is based upon the principle that the parties are in pari delicto, that what each does is the act of the other and that to permit a recovery under such circumstances would be in violation of public policy. Gaines v. Wolcott, 119 Ga. App. 313, 167 S.E.2d 366 (1969). Enforcement of sham contracts. - An executed contract, such as an absolute conveyance purporting on its face to be a deed for the sale of land, though in fact a ‘‘mere sham’’ and made for the purpose of delaying or defrauding a creditor, is binding upon the maker, and one is estopped from impeaching it. Langan v. Langan, 224 Ga. 399, 162 S.E.2d 405 (1968). Retention of fruits of unlawful transaction. - A husband who, in order to delay or defeat the collection of a claim for alimony or other lawful demands against him, conveyed land to another person and put that person in possession, could not maintain against the latter an action for the breach of a bond given by him to reconvey the land whenever so required. This is so, not because the law is disposed to aid one of the wrongdoers in retaining the fruits of the unlawful transaction, but because it denies the benefit of its remedies to the other. Langan v. Langan, 224 Ga. 399, 162 S.E.2d 405 (1968).

RESEARCH REFERENCES C.J.S. - 30 C.J.S., Equity, § 89. ALR. - Illicit sexual relations between man and woman as affecting right of either to recover money paid or property transferred to other, 120 A.L.R. 475. Right of partner or joint adventurer to

accounting where firm business or transactions are illegal, 32 A.L.R.2d 1345. Right to reformation of contract or instrument as affected by intervening rights of third persons, 79 A.L.R.2d 1180. Negligence in executing contract as af-

fecting right to have it reformed, 81 A.L.R.2d 7. Right of action for injury to or death of

woman who consented to illegal abortion, 36 A.L.R.3d 630.