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Mwangi v. Federal National Mortgage Ass'n

Citations: 164 F. Supp. 3d 1403; 2016 U.S. Dist. LEXIS 27394; 2016 WL 759909Docket: CIVIL ACTION FILE NO.: 4:14-CV-0079-HLM

Court: District Court, N.D. Georgia; February 15, 2016; Federal District Court

Narrative Opinion Summary

The case involves a dispute over the foreclosure and subsequent handling of personal property at a residence formerly owned by the Plaintiff, who is challenging actions taken by Defendant Whitman Associates, Inc. and others. The Plaintiff purchased the property with a loan secured by a Security Deed and later faced foreclosure by Chase, which transferred the property to Fannie Mae. Whitman, through its independent contractor, Mr. Singleton, managed the property post-foreclosure. Singleton identified the property as vacant and initiated a trash-out, leading to the removal of personal belongings. The Plaintiff alleges mishandling of her property, seeking to hold Whitman liable for conversion, negligence, and trespass. Whitman filed a motion for summary judgment, contending no duty to file dispossessory actions and asserting Singleton's status as an independent contractor shields it from liability. However, the court found genuine disputes over material facts, including the classification of Singleton's employment and the property's abandonment status, thus denying the motion. The court emphasizes the need to examine statutory duties and potential exceptions to independent contractor liability, citing relevant Georgia statutes. The case proceeds with unresolved issues concerning both the handling of personal property and adherence to legal dispossessory procedures.

Legal Issues Addressed

Abandonment and Lender's Right to Secure Property Under Section 9 of Security Deed

Application: The court addresses whether the Plaintiff abandoned the property, impacting Fannie Mae's right to perform a trash-out under Section 9, with genuine disputes preventing resolution at this stage.

Reasoning: A genuine dispute exists regarding whether the Plaintiff abandoned the Property, impacting whether Defendant Fannie Mae can enter and perform a trash-out under Section 9.

Dispossessory Procedures and Tenant at Sufferance Under O.C.G.A. 44-7-50

Application: The court examines whether Fannie Mae complied with dispossessory procedures, noting the genuine dispute over property abandonment and the implication for tenant status.

Reasoning: Under Georgia law, the only legal method for a landlord to evict a tenant is through a dispossessory action as outlined in O.C.G.A. 44-7-50.

Independent Contractor Liability Under O.C.G.A. § 51-2-4 and § 51-2-5

Application: Whitman asserts that it bears no liability for Mr. Singleton's actions as he is an independent contractor, but the court finds a genuine dispute regarding the degree of control exercised, which could render Whitman liable.

Reasoning: The determination of whether an individual is an independent contractor is generally a factual question, focusing on the degree of control the employer retains over the contractor's work.

Nondelegable Duties and Liability for Conversion, Negligence, and Trespass

Application: Fannie Mae's nondelegable duty to follow dispossessory procedures may impose liability on Whitman for the mishandling of the Plaintiff's property, should evidence support such claims.

Reasoning: Fannie Mae, as the legal title holder post-foreclosure, had a nondelegable duty to follow dispossessory procedures and could not delegate this to a third party.

Summary Judgment Under Federal Rule of Civil Procedure 56(a)

Application: The court denies summary judgment as there is a genuine dispute over material facts, particularly regarding abandonment and the classification of Mr. Singleton as an independent contractor.

Reasoning: The Court denies Defendant Whitman's request for summary judgment based on the argument that Mr. Singleton, who allegedly engaged in wrongful conduct, is an independent contractor.