Slaick v. Arnold - 307 Ga. App. 410, 705 S.E.2d 206 (2010)

Rule:

In the absence of some equitable ground, such as fraud, a voluntary deed will not be canceled on the ground of a lack of consideration.

Facts:

Defendant Emmett J. Arnold, the administrator of the decedent’s estate, filed a declaratory judgment action to determine if a deed transferring the decedent's interest in real property to Nancy Slaick, as the grantee, herein plaintiff, was valid. Defendant contended that the deed was not valid based upon an after-acquired title problem, invalid consideration, and fraud in the inception. Plaintiff, on the other, argued that the superior court erred in declaring that the deed was void because it lacked valid and valuable consideration. Plaintiff then challenged a judgment entered in favor of the defendant by the superior court of Georgia. The court of appeals held that the trial court erred by voiding the deed for lack of consideration.

Issue:

Did the trial court err in declaring that the deed was void for lack of valid and consideration?

Answer:

Yes.

Conclusion:

The court of appeals held that the trial court erred by voiding the deed for lack of consideration. The court held that in the absence of some equitable ground, such as fraud, a voluntary deed would not be canceled based on a lack of consideration. Also, the court ruled that the case that the trial court relied upon did not apply. Instead, that case applied to cases involving a land transfer to a bona fide purchaser after the same land was voluntarily conveyed to another without consideration. The trial court's order did not address the administrator's claim of fraud in the inception and the grantee's claim regarding the after-acquired title. The court then reversed the judgment in part, vacated the trial court's decision declaring the deed void, and remanded the case to the trial court to make findings about the issues of fraud and after-acquired title.