BLACKWELL, Judge.
In Gibson Constr. Co. v. GAA Acquisitions I, LLC, 307 Ga.App. 698, 705 S.E.2d 913 (2011) ("Gibson I"), we affirmed an award of summary judgment in this case to GAA Acquisitions I, LLC, and in doing so, we rejected the proposition that an agreement modifying the terms of a deed to secure debt always must be recorded. 307 Ga.App. at 700-701, 705 S.E.2d 913. That proposition had been urged upon us by Gibson Construction Company, and it was an essential premise of the claims that Gibson Construction asserted against GAA Acquisitions. Following our decision in Gibson I, the court below awarded attorney fees to GAA Acquisitions under OCGA § 9-15-14(a), concluding that the proposition urged by Gibson Construction was so clearly without merit that no one reasonably might have believed that a court would accept it. Gibson Construction now
The facts of the underlying dispute are set out at length in our opinion in Gibson I, 307 Ga.App. at 698-699, 705 S.E.2d 913, and we will not repeat here everything that we said before. It is enough to note that GAA Acquisitions had a security deed to certain real property in Fulton County, that Gibson Construction had a special lien upon the same real property, that the security deed was superior to the lien, and that GAA Acquisitions foreclosed upon the security deed. Whether the special lien was extinguished by the foreclosure depended on whether the proceeds of the foreclosure exceeded the indebtedness secured by the deed. GAA Acquisitions said that they did not, and it pointed to the terms of an agreement modifying the original security deed in support of its valuation of the indebtedness secured. Gibson Construction said, however, that the indebtedness secured had to be valued under the terms of the original security deed because the agreement that modified it never had been recorded. GAA Acquisitions responded that the law does not require the recording of an agreement that modifies a security deed. Gibson Construction sued GAA Acquisitions, and GAA Acquisitions moved for summary judgment, squarely presenting the court below with the competing arguments about whether an agreement modifying a security deed must be recorded. The court below agreed with GAA Acquisitions, and when Gibson Construction appealed, so did we. See id. at 699-701, 705 S.E.2d 913.
After we issued our decision in Gibson I, the court below awarded attorney fees under OCGA § 9-15-14(a), which absolutely requires such an award in any civil case in which a party has pressed an argument so clearly without merit that no one reasonably might think a court would accept it:
OCGA § 9-15-14(a). In its consideration of the question of attorney fees, the court below pointed first to our decision in Aetna Casualty & Surety Co. v. Valdosta Fed. Savings & Loan Assn., 175 Ga.App. 614, 333 S.E.2d 849 (1985), which makes clear, the court said, that an agreement modifying a security deed is not itself a security deed. The court reasoned that, although a security deed must be recorded, see OCGA § 44-14-63(a), it does not follow in light of Aetna that an agreement modifying a security deed also must be recorded. So, the court found, to make out a colorable claim, Gibson Construction had to point to some statute, case, or other authority specifically dealing with an agreement modifying a security deed and suggesting that it must be recorded. Because Gibson Construction failed to do so, the court concluded, an award of attorney fees was required.
Generally speaking, when we review an award of attorney fees under OCGA § 9-15-14(a), we do so under the "any evidence" standard, a standard that ordinarily is marked by deference to the way in which the court below assessed the relevant evidence. See Citizens & Southern Trust Co. v. Trust Co. Bank, 262 Ga. 345, 345, 417 S.E.2d 148 (1992); see also Haggard v. Bd. of Regents of the Univ. System of Ga., 257 Ga. 524, 527(4)(c), 360 S.E.2d 566 (1987). That said, whether attorney fees are required under OCGA § 9-15-14(a) depends in some cases not so much upon an assessment of what we usually mean when we speak of "evidence" — testimony and exhibits and the like—but
When we decided in Gibson I that an agreement modifying a security deed need not be recorded, we decided an issue of first impression. No Georgia appellate court previously had considered, at least in a published opinion, whether the statutes that require the recording of a security deed
It is true that Gibson Construction failed to cite any convincing "authority for the proposition that a loan modification agreement is not valid or enforceable unless it is recorded," as we found in Gibson I, 307 Ga.App. at 700-701, 705 S.E.2d 913. But Gibson Construction did rely in this case upon Reidling v. Holcomb, 225 Ga.App. 229, 230-231(1), 483 S.E.2d 624 (1997), where we addressed the purpose of the recording statutes and explained that "[i]t is by [these statutes] made the plain duty of a grantee to record his deed, thereby giving constructive notice to every one of its existence and of his rights thereunder." (citation and punctuation omitted; emphasis supplied.) In the absence of precedents to the contrary, a reasonable lawyer might have read Reidling and inferred that, given the purposes of the recording statutes, perhaps they should be construed to require the recording of an agreement that modifies the terms of a security deed and thereby alters the rights of the lender under the deed. Moreover, in the absence of precedents to the contrary, a reasonable lawyer might have thought that some support for such a requirement could be found in OCGA § 44-2-2(b), which addresses the need to record deeds and certain other instruments "which are against the interests of third parties who have acquired a transfer or lien binding the same property," reflecting the notice purpose of the recording statutes.
Generally speaking, an award of attorney fees cannot be sustained if it is based on an argument about the meaning of a
Judgment reversed.
BARNES, P.J., and ADAMS, J., concur.