Bloom Parham Wins Reversal Expanding Fraud Damages in a Georgia Real Estate Dispute

Read the full decision: Archer I, LLC v. DMC Cameron at Clarkesville, LLC, No. A26A0005 (Ga. Ct. App. June 25, 2026)

Bloom Parham has secured a reversal from the Georgia Court of Appeals that protects its client’s right to pursue the full measure of fraud damages at trial. In Archer I, LLC v. DMC Cameron at Clarkesville, LLC, No. A26A0005 (June 25, 2026), the court reversed a Habersham County Superior Court order that had capped the damages our client could recover. The Court of Appeals held that a purchaser who was fraudulently induced into a real estate contract may pursue consequential damages in tort, even when the contract limits the remedies available for breach.

Stephen M. Parham and Sean C. Ryan of Bloom Parham represented the purchaser in this matter.

The Dispute: A Failed Apartment Complex Sale

The case began with a real estate transaction that collapsed. Our client agreed to buy an apartment complex for more than $5.6 million. The purchase and sale contract included false representations about the property’s assessed value, the condition of improvements, and the property’s insurability.

Purchaser terminated the contract and sued. Our client brought claims for breach of contract, fraud, and negligent misrepresentation against the seller entity, its principal, and its agent. Because our client had counted on the purchase to avoid a capital gains tax liability, it acquired a different property after the deal fell through.

The First Appeal: Reinstating the Fraud Claims

This was the firm’s second successful trip to the Georgia Court of Appeals in this matter. In an earlier appeal, Archer I v. Carroll, No. A23A0702 (Ga. App. Nov. 3, 2023), Bloom Parham won the reversal of a summary judgment that had dismissed the fraud and negligent misrepresentation claims against the individual defendants. That ruling returned the tort claims against those defendants to the trial court and set the stage for the damages fight that followed.

The Fraud Damages Ruling on by the Trial Court

On remand, the defendants moved for partial summary judgment to limit what our client could recover. They argued that the contract’s remedy provision confined our client to its out-of-pocket due diligence costs and barred any recovery connected to the replacement property. The Habersham County Superior Court granted the partial summary judgment, thereby precluding our client from seeking damages arising from the replacement transaction. Archer appealed that ruling, and the Georgia Court of Appeals reversed.

What the Georgia Court of Appeals Held

A party fraudulently induced to enter a contract may either rescind it or affirm it and sue for damages caused by the fraud. Our client chose to affirm the contract and pursue its fraud claim, which is a tort action rather than a suit on the contract.  The Court of Appeals’ decision will allow our client to present all of its claimed damages at trial, significantly expanding available damages.  The result underscores Bloom Parham’s appellate expertise, as the firm has secured two appellate reversals in the same case, each one moving the client closer to a full and fair trial.

Facing a Business or Real Estate Fraud Dispute? Talk to Bloom Parham

Bloom Parham pairs trial-tested business litigators with a dedicated appellate litigation practice, so a hard-fought trial result does not have to be the last word, and an adverse order does not have to stand. When the stakes are high, our lawyers know how to protect a client’s damages and reframe the issues on appeal. To discuss a fraud, contract, or real estate dispute, reach out to Stephen M. Parham or Sean C. Ryan.