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2018 Georgia Code 51-6-4 | Car Wreck Lawyer

TITLE 51 TORTS

Section 6. Fraud and Deceit, 51-6-1 through 51-6-4.

ARTICLE 4 LIABILITY OF SPACE FLIGHT ENTITIES

"WARNING AND AGREEMENT UNDER GEORGIA LAW THERE IS NO LIABILITY FOR INJURY, DEATH, OR OTHER LOSS RESULTING FROM ANY INHERENT RISKS OF SPACE FLIGHT ACTIVITIES. SUCH INHERENT RISKS OF SPACE FLIGHT ACTIVITIES INCLUDE, WITHOUT LIMITATION, THE POTENTIAL FOR SERIOUS BODILY INJURY, SICKNESS, PERMANENT DISABILITY, PARALYSIS, AND LOSS OF LIFE; EXPOSURE TO EXTREME CONDITIONS AND CIRCUMSTANCES; ACCIDENTS, CONTACT, OR COLLISION WITH OTHER SPACE FLIGHT PARTICIPANTS, SPACE FLIGHT VEHICLES, AND EQUIPMENT; AND DANGERS ARISING FROM ADVERSE WEATHER CONDITIONS AND EQUIPMENT FAILURE.

51-6-4. Fraud by acts or silence; estoppel to assert title.

  1. A fraud may be committed by acts as well as words.
  2. One who silently stands by and permits another to purchase his property, without disclosing his title, is guilty of such a fraud as estops him from subsequently setting up such title against the purchaser.

(Orig. Code 1863, § 2908; Code 1868, § 2915; Code 1873, § 2966; Code 1882, § 2966; Civil Code 1895, § 3823; Civil Code 1910, § 4419; Code 1933, § 105-304.)

Law reviews.

- For comment on Cohen v. Pullman Co., 243 F.2d 725 (5th Cir. 1957), holding that an oral agreement to sell land which is unenforceable because of the statute of frauds cannot be the basis for recovery of damages in fraud and deceit as the purpose of the statute of frauds is to prevent persons from being liable for nonperformance of such claimed promises, see 20 Ga. B. J. 427 (1958).

JUDICIAL DECISIONS

General Consideration

This section is based upon equitable duty of disclosure. Reeves v. B.T. Williams & Co., 160 Ga. 15, 127 S.E. 293 (1925); Reynolds v. Huckeba, 231 Ga. 792, 204 S.E.2d 149 (1974).

Record title is no defense to this rule. Markham v. O'Connor, 52 Ga. 183 (1874).

This section only operates in favor of a bona fide purchaser without notice. Brown v. Tucker, 47 Ga. 485 (1873); Meetze v. Potts, 6 Ga. App. 189, 64 S.E. 672 (1909); Broadway Apt. Co. v. Barnett, 30 Ga. App. 562, 118 S.E. 601 (1923); Shaw v. Green, 180 Ga. 760, 180 S.E. 732 (1935).

One who silently stands by and permits another to purchase one's property, without disclosing one's title, is not guilty of such a fraud as estops one from subsequently setting up such title against a purchaser with notice. Shaw v. Green, 180 Ga. 760, 180 S.E. 732 (1935).

Former Code 1933, § 38-115 (see now O.C.G.A. § 24-14-27) limited former Code 1933, § 105-304 (see now O.C.G.A. § 51-6-4) to purchasers without notice. Fuller v. Calhoun Nat'l Bank, 59 Ga. App. 419, 1 S.E.2d 86 (1939).

This section is inapplicable when a party had actual knowledge of the rights of the other party who remained silent or when such party relied upon their own investigation or was not shown to have placed any reliance on the statement, action or inaction of the one claimed to be estopped. Anderson v. Manning, 221 Ga. 421, 144 S.E.2d 772 (1965).

Constructive fraud at least may be implied from a failure to speak, when one uses silence for the purpose of gaining an unconscionable advantage. Reynolds v. Huckeba, 231 Ga. 792, 204 S.E.2d 149 (1974).

In order to raise estoppel by conduct or matters in pais, party to whom representation or concealment is made must have been ignorant, actually and permissibly, of the truth of the matter; if one knew or under all the circumstances ought to have known the facts, the representation, silence, or concealment is wholly unavailing. Carmichael v. Texas Co., 52 Ga. App. 751, 184 S.E. 397 (1936).

Principle stated in this section does not depend for its operation upon existence or absence of mere constructive notice, nor will such record, a recorded deed, necessarily constitute convenient means of acquiring such knowledge, within the meaning of former Code 1933, § 38-115 (see now O.C.G.A. § 24-14-27). This latter section should be construed in harmony with the former. Roop Grocery Co. v. Gentry, 195 Ga. 736, 25 S.E.2d 705 (1943); Anderson v. Manning, 221 Ga. 421, 144 S.E.2d 772 (1965).

Recorded deed was not necessarily such convenient means of acquiring knowledge of title, within the contemplation of former § 24-4-25 (see now O.C.G.A. § 24-14-27), as to abrogate the effect of former Code 1933, § 105-304 (see now O.C.G.A. § 51-6-4) on one who remained silent while a third party represented to another that the party owned certain property which in actuality belonged to the aphonic one. Anderson v. Manning, 221 Ga. 421, 144 S.E.2d 772 (1965); Pressley v. Maxwell, 242 Ga. 360, 249 S.E.2d 49 (1978).

Heirs of defrauder are estopped by this section. Caraker v. Brown, 152 Ga. 677, 111 S.E. 51 (1922).

Silence of preceding administrator at illegal sheriff's sale will not bind present administrator. Sellars v. Cheney, 70 Ga. 790 (1883).

Use of property by husband for business purposes will estop the wife to claim title thereto. Ford v. Blackshear Mfg. Co., 140 Ga. 670, 79 S.E. 576 (1913).

Warehouseman's knowledge of weight expected.

- Mere knowledge of warehouseman that assignee would expect the goods to be of certain weight will not operate as an estoppel. Citizens & S. Bank v. Union Whse. & Compress Co., 157 Ga. 434, 122 S.E. 327 (1924).

Pleading fraud.

- While the broad statement that the conduct of the defendant constituted fraud would be insufficient without an allegation of circumstances from which the court might determine whether the pleader reached the right conclusion in saying that a fraud was committed, still it is not essential to state more facts than may be necessary to carry conviction of the existence of fraud. Wall v. Wall, 176 Ga. 757, 168 S.E. 893 (1933).

Burden of proof is upon party relying upon representation as estoppel to show that one acted upon the representation in good faith and in ignorance of the real facts. Elliott v. Keith, 102 Ga. 117, 29 S.E. 155 (1897); Stonecipher v. Kear, 131 Ga. 688, 63 S.E. 215, 127 Am. St. R. 248 (1908).

Burden of showing absence of notice or knowledge rests on such purchaser relying on alleged estoppel. Carmichael v. Texas Co., 52 Ga. App. 751, 184 S.E. 397 (1936).

Cited in McCune v. McMichael, 29 Ga. 312 (1859); Burton v. Black, 32 Ga. 53 (1861); Roberts v. Davis, 72 Ga. 819 (1884); Mercier v. Copelan, 73 Ga. 636 (1884); Veal v. Robinson, 76 Ga. 838 (1886); Brooks v. Matthews, 78 Ga. 739, 3 S.E. 627 (1887); McLennan v. Graham, 106 Ga. 211, 32 S.E. 118 (1898); Norman v. McMillan, 151 Ga. 363, 107 S.E. 325 (1921); Warner v. Hill, 153 Ga. 510, 112 S.E. 478 (1922); Varn v. Bloodworth, 157 Ga. 300, 121 S.E. 380 (1924); Jackson v. Lipham, 158 Ga. 557, 123 S.E. 887 (1924); Peacock v. Horne, 159 Ga. 707, 126 S.E. 813 (1925); May v. Yearty, 34 Ga. App. 29, 128 S.E. 67 (1925); Watkins Co. v. Rivers, 37 Ga. App. 559, 140 S.E. 770 (1927); Burton v. Parris, 168 Ga. 407, 148 S.E. 11 (1929); Union Cent. Life Ins. Co. v. Smith, 184 Ga. 158, 190 S.E. 651 (1937); Lankford v. Holton, 195 Ga. 317, 24 S.E.2d 292 (1943); Jackson v. Moultrie Prod. Credit Ass'n, 76 Ga. App. 768, 47 S.E.2d 127 (1948); Westbrook v. Beusse, 79 Ga. App. 654, 54 S.E.2d 693 (1949); Olson v. Newsom, 236 Ga. 480, 224 S.E.2d 358 (1976); Ringer v. Lockhart, 240 Ga. 82, 239 S.E.2d 349 (1977); Georgia Farm Bureau Mut. Ins. Co. v. First Fed. Sav. & Loan Ass'n, 152 Ga. App. 16, 262 S.E.2d 147 (1979); In re North Am. Acceptance Corp. Sec. Cases, 513 F. Supp. 608 (N.D. Ga. 1981); McGaha v. Kwon, 161 Ga. App. 216, 288 S.E.2d 289 (1982).

Applicability to Specific Cases

If owner of property stands silently by and permits another to mortgage it, the owner will be estopped to assert the owner's title thereto as against the mortgage. Dunson v. Harris, 45 Ga. App. 450, 164 S.E. 910 (1932).

Presence and conduct of plaintiff at judicial sale did not estop the plaintiff from claiming title to the segregated and uninventoried property of that sale which, it appears without dispute, actually belonged to the plaintiff, since the jury could have found that the particular property was not actually sold, and was not intended to be sold as part of the stock of goods. Brooks v. Guthrie, 42 Ga. App. 296, 155 S.E. 793 (1930).

Spouse estopped to claim title to property passed to creditor by security deed after spouse failed to disclose title.

- While a jury would have been authorized to find that even if the deed from the husband to the wife was based upon a valuable consideration, so that its record constituted constructive notice, if she, nevertheless, witnessed the security deed to the creditor with knowledge of its contents; and that the creditor, in ignorance of the true title, relied upon such security deed as conveying a good title from the grantor, and extended credit on the faith thereof, the wife would be estopped from asserting title of the jury so believed. Roop Grocery Co. v. Gentry, 195 Ga. 736, 25 S.E.2d 705 (1943).

The fact that a deed from a husband to his wife, under which a wife claimed title, may have been based upon a valuable consideration and duly recorded would not necessarily prevent a subsequent purchaser, by security deed, from relying upon the principle of estoppel, if he was in fact ignorant of the true title. Roop Grocery Co. v. Gentry, 195 Ga. 736, 25 S.E.2d 705 (1943).

Ownership by virtue of unrecorded deeds.

- In a quiet title action brought by executors of a landowner's estate, the trial court erred in granting summary judgment to a purchaser of the property because genuine issues remained as to whether the purchaser had notice that the landowner owned the property by virtue of unrecorded deeds. There was also a genuine issue as to whether the executors were precluded by estoppel under O.C.G.A. § 51-6-4 from claiming title. Montgomery v. Barrow, 286 Ga. 896, 692 S.E.2d 351 (2010).

No fraud shown on part of developer.

- In an action brought by the purchasers of a lot seeking to cancel the developer's security deed based upon alleged fraud, the trial court properly granted summary judgment to the developer as, even if the developer knew of the sale of the lot to the purchasers, such sale did not estop the developer from the developer's claim against the lot pursuant to the developer's security deed; however, the trial court did err by denying the equitable subrogation claim asserted by the purchasers' lender since exercising subrogation did not prejudice the developer in any manner. Byers v. McGuire Props., 285 Ga. 530, 679 S.E.2d 1 (2009).

RESEARCH REFERENCES

Am. Jur. 2d.

- 37 Am. Jur. 2d, Fraud and Deceit, § 194 et seq.

C.J.S.

- 37 C.J.S., Fraud, § 28 et seq.

ALR.

- Failure to perform the duty to make disclosures which rests upon one because of trust or confidential relation as fraud for which equity, in an independent suit, will relieve against a judgment, 5 A.L.R. 672.

Fraudulent misrepresentation or concealment by a contracting party concerning title to property or other subjects which are matters of public record, 33 A.L.R. 853; 56 A.L.R. 1217.

Estoppel of one not a party to a transaction involving real property by failure to disclose his interest in the property, 50 A.L.R. 668.

Quantum of proof in civil case on issue involving fraudulent, dishonest, or criminal misappropriation of property, 62 A.L.R. 1449.

Permitting record title to real property to stand in another's name as estopping owner to avail himself of statute or rule requiring authority to contract regarding real estate to be in writing, 78 A.L.R. 588.

Public records as notice of facts starting running of statute of limitations against action based on fraud, 137 A.L.R. 268.

Duty of vendor of real property to disclose to purchaser condition of building thereon which affects health or safety of persons using same, 141 A.L.R. 967.

Liability of vendor of structure for failure to disclose that it was built on filled ground, 80 A.L.R.2d 1453.

Fraud predicated on vendor's misrepresentation or concealment of danger of possibility of flooding or other unfavorable water conditions, 90 A.L.R.3d 568.

Real estate broker's liability to purchaser for misrepresentation or nondisclosure of physical defects in property, 46 A.L.R.4th 546.

Cases Citing Georgia Code 51-6-4 From Courtlistener.com

Total Results: 2

Montgomery v. Barrow

Court: Supreme Court of Georgia | Date Filed: 2010-03-25

Citation: 692 S.E.2d 351, 286 Ga. 896, 2010 Fulton County D. Rep. 1013, 2010 Ga. LEXIS 279

Snippet: estoppel by conduct doctrine is codified in OCGA § 51-6-4, subsection (a) of which recognizes that “[a] fraud

Byers v. McGuire Properties, Inc.

Court: Supreme Court of Georgia | Date Filed: 2009-05-18

Citation: 679 S.E.2d 1, 285 Ga. 530, 2009 Fulton County D. Rep. 1675, 2009 Ga. LEXIS 243

Snippet: or a fraud by silence which pursuant to OCGA § 51-6-4(b) equitably estops Appellees from claiming any