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Title Insurer Subrogated to Rights of Defrauded Buyer\\n\\nIn Lewis v. \\xa0Fidelity National Title Insurance Company, No. A23A0030, \\nCourt of Appeals of Georgia, Fifth Division (April 26, 2023) Torriel \\nDeyon Lewis appealed the grant of summary judgment to Fidelity National \\nTitle Insurance Company in Fidelity\'s fraud action against him.\\n\\nFACTUAL BACKGROUND\\n\\nWhen a party moves for summary judgment and supports his or her motion \\nby submitting affidavits, depositions, or answers to interrogatories, \\nthe nonmoving party may not rest upon the mere allegations and must set \\nforth specific facts showing that there is a genuine issue for trial.\\n\\nIn 2007 an entity called House Rescue 911 L.L.C. ("old House Rescue 911 \\nL.L.C.") acquired a parcel of real property. In 2010, old House Rescue \\n911 L.L.C. was administratively dissolved by the secretary of state. The\\n records of the Georgia Secretary of State show that on February 3, \\n2017, an entity named House Rescue 911 LLC ("new House Rescue 911 LLC") \\nwas formed. New House Rescue 911 LLC\'s name was identical to old House \\nRescue 911 L.L.C.\'s name except for the absence of periods between the \\nletters LLC. Lewis was listed as the registered agent of new House \\nRescue 911 LLC. New House Rescue 911 LLC and Lewis were not affiliated \\nin any way with old House Rescue 911 L.L.C.\\n\\nThree weeks after it was formed, new House Rescue 911 LLC purported to \\nsell and to convey by limited warranty deed the parcel of real property \\nthat old House Rescue 911 L.L.C. had acquired in 2007.\\n\\nLewis and new House Rescue 911 LLC had no basis for claiming ownership \\nof the property and had no right to convey any rights to the property.\\n\\nIn 2019, the purchaser of the property, Fidelity\'s insured, was named as\\n a defendant in a petition to quiet title brought by the members of the \\nadministratively dissolved old House Rescue 911 L.L.C. The superior \\ncourt quieted title in the petitioners\' favor, and Fidelity paid its \\ninsured $66,000 under the title policy.\\n\\nFidelity then sued new House Rescue 911 LLC and Lewis. The trial court \\nentered a default judgment against new House Rescue 911 LLC and granted \\nFidelity\'s motion for summary judgment against Lewis. Lewis filed this \\npro se appeal.\\n\\nFRAUD\\n\\nThe tort of fraud has five elements: a false representation by a \\ndefendant, scienter, intention to induce the plaintiff to act or refrain\\n from acting, justifiable reliance by plaintiff, and damage to \\nplaintiff.\\n\\n\\nInducement\\n\\nIn the owner\'s affidavit, Lewis attested that he was making the \\naffidavit "to induce [the purchaser] to purchase said real property, and\\n to induce FIDELITY NATIONAL TITLE INSURANCE COMPANY to issue a . . . \\ntitle insurance policy." And, of course, Fidelity did issue a title \\ninsurance policy.\\n\\nJustifiable Reliance\\n\\n Fidelity presented undisputed evidence that the chain of title showed \\nthat title to the property was vested in "House Rescue 911 L.L.C." \\n\\n\\nPersonal Liability\\n\\nAn LLC member may be held individually liable if he or she personally \\nparticipates or cooperates in a tort committed by the LLC or directs it \\nto be done. The undisputed evidence is that Lewis was a member of new \\nHouse Rescue 911 LLC, that he falsely represented that new House Rescue \\n911 LLC owned the property, and that he signed the limited warranty deed\\n and the owner\'s affidavit on behalf of new House Rescue 911 LLC. The \\ntrial court did not err in finding that he is personally liable. The \\njudgment was affirmed.\\n\\nZALMA OPINION\\n\\nFraud perpetrators are not honest or reliable. They lie. Clearly new \\nHouse Rescue 911 LLC, and its manager, lied to the buyer of a piece of \\nreal property it did not own and also intentionally deceived the title \\ninsurer. Mr. Lewis was personally responsible to reimburse the title \\ninsurer for the money it was required to pay to its insured and was \\nentitled to subrogate against the fraud perpetrator.\\n\\n(c) 2023 Barry Zalma & ClaimSchool, Inc.