Jerry Collins D/B/A Westside Equipment Company, Inc. v. Greene County Bank

Court of Appeals of Tennessee

Jerry Collins D/B/A Westside Equipment Company, Inc. v. Greene County Bank

DecidedNovember 1, 1995

Docket03A01-9507-CH-00216

StatusPublished

This text of Jerry Collins D/B/A Westside Equipment Company, Inc. v. Greene County Bank (Jerry Collins D/B/A Westside Equipment Company, Inc. v. Greene County Bank) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Jerry Collins D/B/A Westside Equipment Company, Inc. v. Greene County Bank, (Tenn. Ct. App. 1995).

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Opinion

I N THE COURT OF APPEALS OF TENNESSEE

EASTERN SECTI ON FILED November 1, 1995 J ERRY COLLI NS, d / b/ a W ESTSI DE ) C/ A NO. 03A01- 9507- CH- 0021 6 Cecil Crowson, Jr. EQUI PMENT COM PANY, I NC. , ) Appellate C ourt Clerk ) GREENE CHANCERY Pl a i nt i f f - Appe l l a nt , ) ) HON. DENNI S H. I NMAN, v. ) J UDGE ) GREENE COUNTY BANK, ) AFFI RMED I N PART, ) VACATED I N PART, De f e nda nt - Appe l l e e . ) AND REM ANDED

J . RONNI E GREER, Gr e e ne vi l l e , f or Pl a i nt i f f - Appe l l a nt .

KENNETH CLARK HOOD, ROGERS, LAUGHLI N, NUNNALLY, HOOD & CRUM, Gr e e ne vi l l e , f or De f e nda nt - Appe l l e e .

O P I N I O N

Fr a nks . J .

I n t hi s di s put e be t we e n pl a i nt i f f bor r owe r a nd

d e f e n d a nt l e nde r , t he Tr i a l Cour t e nt e r e d s umma r y j udgme nt f o r

t h e d e f e nda nt a nd pl a i nt i f f ha s a ppe a l e d.

Pl a i nt i f f Col l i ns be ga n ope r a t i ng W s t Si de Tr a c t or e

Co mp a n y, I nc . ( WST) f or i t s owne r , Ke nne t h M l one i n 1986. a

Pl a i n t i f f a nd M l one a gr e e d t ha t Pl a i nt i f f woul d be c ome t he a

o wn e r of W i n e xc ha nge f or pa yi ng t he c ompa ny' s de bt s . ST Pl a i n t i f f s i mul t a ne ous l y owne d a nd r a n W s t Si de Equi pme nt e

Co mp a n y ( W , a us e d e q ui pme nt t r a di ng bus i ne s s . SE) The

b u s i n e s s a r r a nge me nt be t we e n Pl a i nt i f f a nd M l one c ont i nue d a

u n t i l 1992, whe n W be c a me de l i nque nt wi t h i t s de a l e r s a nd ST

s u p p l i e r s a nd c l os e d.

I n 1990, Pl a i nt i f f pl e dge d hi s home a nd f a r m a s

c o l l a t e r a l f or a $125, 000 l oa n f or W f r om de f e nda nt Gr e e ne ST

Co u n t y Ba nk. Ul t i ma t e l y , de f e nda nt f or e c l os e d on t he pr ope r t y

a n d p l a i nt i f f ' s e f f or t s t o pr e ve nt t he f or e c l os ur e t hr ough

l i t i g a t i on f a i l e d.

Pl a i nt i f f t he n f i l e d t hi s a c t i on a l l e gi ng t ha t

i l l e g a l hol ds ha d be e n pl a c e d on hi s c he c ki ng a c c ount , t ha t

o r a l r e pr e s e nt a t i ons r e ga r di ng t he c r os s - c ol l a t e r a l i z a t i on

c l a u s e i n t he de e d of t r us t c ons t i t ut e d f r a udul e nt i nduc e me n t

t o e n t e r a c ont r a c t , a nd t ha t s t a t e me nt s by ba nk of f i c i a l s

c o n s t i t ut e d t or t i ous i nt e r f e r e nc e wi t h t he bus i ne s s

r e l a t i ons hi p be t we e n pl a i nt i f f a nd M l one . a

The Tr i a l Cour t gr a nt e d s umma r y j udgme nt on a l l

i s s ue s . Af t e r gi vi ng Appe l l a nt a n a ddi t i ona l t wo we e ks t o

f i l e n ot i c e s of hol ds t ha t ha d be e n pl a c e d on hi s a c c ount , t h e

Co u r t f ound t ha t none of t he hol ds pr oduc e d we r e wi t hi n t he

r e g u l a t i on' s one ye a r l i mi t a t i ons pe r i od. The Cour t a l s o

c on c l u de d t ha t r e s j udi c a t a a nd c ol l a t e r a l e s t oppe l ba r r e d t h e

c l a i m of f r a udul e nt i ndu c e me nt t o e nt e r a c ont r a c t . Fur t he r ,

t h e c o ur t de t e r mi ne d t ha t t he bus i ne s s r e l a t i ons hi p a l l e ge d l y

i n t e r f e r e d wi t h wa s pr os pe c t i ve i n na t ur e a nd t hi s

j u r i s d i c t i on doe s not r e c ogni z e a c a us e of a c t i on f or

p r o s p e c t i ve i nt e r f e r e nc e .

Pl a i nt i f f c l a i ms t ha t Gr e e ne Count y Ba nk vi ol a t e d 1 2

2 C. F. R. 2 29 1 e t . s e q. ( c o mmonl y known a s Re gul a t i on CC) by

p l a c i n g i mpr ope r hol ds o n hi s c he c ki ng a c c ount s . The s t a t u t e

o f l i mi t a t i ons f or Re gul a t i on CC pr ovi de s t ha t a c t i ons mus t b e

b r o u g h t " wi t hi n one ye a r a f t e r t he da t e of t he oc c ur r e nc e of

t h e v i ol a t i on i nvol ve d. " 12 C. F. R. 229. 21 ( 1992) . At t he

h e a r i n g on t he mot i on f or s umma r y j udgme nt a nd a f t e r be i ng

g i v e n a n a ddi t i ona l t wo we e ks , pl a i nt i f f c oul d not pr oduc e a n y

h o l d not i c e s da t e d wi t hi n one ye a r of t he f i l i ng of t he s ui t .

Pl a i nt i f f a r gue s t ha t t he hol ds r e pr e s e nt e d a

c o n t i n ui ng oc c ur r e nc e a nd t he s t a t ut e of l i mi t a t i ons be ga n t o

r u n , f or a l l vi ol a t i ons , f r om t he da t e of t he l a s t hol d. Th i s

a r g u me nt i s wi t hout me r i t . The l a s t hol d not i c e i s da t e d mo r e

t h a n o ne ye a r f r om t he f i l i ng of t he s ui t a nd i s i t s e l f

o u t s i de t he l i mi t a t i ons pe r i od, a nd whi l e a " c ont i nui ng

v i o l a t i on" t he or y ha s be e n us e d t o pr e ve nt t he s t a t ut e of

l i mi t a t i ons f r om b a r r i ng e mpl oyme nt di s c r i m na t i on, s e e , e . g . , i

Ha v e n s Re al t y Cor p. v . Col e man, 455 U. S. 363, 71 L. Ed. 2d 21 4 ,

1 0 2 S. Ct . 1114 ( 1982) , t he c a s e s c i t e d by pl a i nt i f f f a i l t o

p r o v i de a ny r a t i ona l e f or a ppl i c a t i on of t he t he or y t o t he s e

c i r c u ms t a nc e s . Pl a i nt i f f r e c e i ve d wr i t t e n not i c e s i nf or mi ng

h i m o f e a c h a l l e ge d vi ol a t i on. The r e wa s no c onc e a l me nt of

h i s r i ght s or l a c k of oppor t uni t y t o pur s ue t he s e c l a i ms a s

s o o n a s t he y a r os e a nd we f i nd no r e a s on why t he s t a t ut e of

l i mi t a t i ons s houl d n ot ba r t hi s c l a i m.

Pl a i nt i f f a s k e d t he Tr i a l Cour t t o a l t e r or a me nd

t h e s u mma r y j udgme nt on t he ba s i s of hi s di s c ove r y of a not i c e

1 1 2 C. F . R. 2 2 9 . 2 1 i s e n t i t l e d " Av a i l a b i l i t y o f F u n d s a n d Co l l e c t i o n o f Ch e c k s " a n d g o v e r n s t h e p r o c e d u r e s wh i c h b a n k s mu s t f o l l o w i n ma k i n g d e p o s i t s a v a i l a b l e t o c u s t o me r s .

3 o f a hol d on hi s ba nk a c c ount t ha t ha d oc c ur r e d wi t hi n t he o n e

y e a r s t a t ut e o f l i mi t a t i ons pe r i od, a nd a l l e ge d a l t e r a t i ons 2

o f a b a nk doc ume nt . The mot i on wa s de ni e d.

W t he r t o gr a nt a ne w t r i a l ba s e d on ne wl y he

d i s c o v e r e d e vi de nc e i s di s c r e t i ona r y wi t h t he t r i a l j udge .

S e a y v . Ci t y o f Knox v i l l e , 654 S. W 2d 397 ( Te nn. App. 1983) . .

Th e mo vi ng pa r t y mus t de mons t r a t e t ha t t he ne w e vi de nc e wa s

n o t k nown pr i or t o or du r i ng t r i a l a nd t ha t i t c oul d not ha v e

b e e n a s c e r t a i ne d b y t he e xe r c i s e of r e a s ona bl e di l i ge nc e .

Al s o t o be c ons i de r e d by t he Tr i a l J udge i s whe t he r a ne w

t r i a l ba s e d on s uc h e vi de nc e woul d c ha nge t he r e s ul t . Le e pe r

v . Co o k , 688 S. W 2d 94 ( Te nn. App. 1985) . .

Pl a i nt i f f f ou nd t he hol d s l i ps by s e a r c hi ng t hr ou g h

h i s r e c or ds a nd t he ba nk doc ume nt , a l l e ge dl y a l t e r e d, wa s

t u r n e d ove r t o pl a i nt i f f dur i ng di s c ove r y. Ac c or di ngl y,

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