Tenn-Fla Partners v. First Union Natl Bk

Court of Appeals for the Sixth Circuit·Decided September 18, 2000·No. 99-5312·Published

Opinion

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

(/(&7521,& &,7$7,21  )(' $SS 3 WK &LU )LOH 1DPH DS

81,7('67$7(6&28572)$33($/6 )257+(6,;7+&,5&8,7 BBBBBBBBBBBBBBBBB

,QUH7(11)/$ 3$571(56D ; 7HQQHVVHH*HQHUDO  3DUWQHUVKLS   1RV 'HEWRU  BBBBBBBBBBBBBBBBBBBBBBBB !   7(11)/$ 3$571(56D  7HQQHVVHH*HQHUDO  3DUWQHUVKLS  $SSHOODQW   &URVV$SSHOOHH   Y   ),567 81,21 1$7,21$/  %$1. 2) )/25,'$DV7UXVWHH   $SSHOOHH  &URVV$SSHOODQW  1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH:HVWHUQ'LVWULFWRI7HQQHVVHHDW0HPSKLV 1RnsHURPH7XUQHU'LVWULFWsXGJH $UJXHG$XJXVW 'HFLGHGDQG)LOHG6HSWHPEHU

  ,QUH7HQQ)OD3DUWQHUV 1RV 1RV ,QUH7HQQ)OD3DUWQHUV 

%HIRUH1(/621DQG1255,6&LUFXLWsXGJHV0$7,$ >7@KH ERQGKROGHUV KDYH EHHQ UHTXLUHG WR LQFXU 'LVWULFWsXGJH SURIHVVLRQDOIHHVDQGH[SHQVHVUHODWHGWRWKLVUHYRFDWLRQ SURFHHGLQJ  7KH FRXUW KDG HDUOLHU DOORZHG WKH BBBBBBBBBBBBBBBBB ERQGKROGHUV DGPLQLVWUDWLYHH[SHQVHFODLPKRZHYHUWKH ERQGKROGHUVXQQHFHVVDULO\KDGDGGLWLRQDOSURIHVVLRQDO &2816(/ LQFOXGLQJOHJDOH[SHQVHVGLUHFWO\FDXVHGE\WKHGHEWRU V SURFXULQJLWVRUGHURIFRQILUPDWLRQE\IUDXG $5*8('  %UXFH $ 0DUNHOO +HQGHUVRQ 1HYDGD IRU $SSHOODQW  0LFKDHO 3 &RXU\ :$5,1* &2; 0HPSKLV %5DW7KHGLVWULFWFRXUWDIILUPHGLQWKHVHWHUPV 7HQQHVVHHIRU$SSHOOHH21%5,()%UXFH$0DUNHOO m:KLOH>7HQQ)OD3DUWQHUV@LVFRUUHFWWKDWRUGLQDULO\DFRXUW +HQGHUVRQ 1HYDGD +HQU\ & 6KHOWRQ ,,, $5067521* PD\QRWDZDUGDWWRUQH\ VIHHVLQWKHDEVHQFHRIVWDWXWRU\RU $//(1 0HPSKLV 7HQQHVVHH IRU $SSHOODQW  0LFKDHO 3 FRQWUDFWXDODXWKRULW\DQH[FHSWLRQH[LVWVZKHUHIUDXGKDV &RXU\ :$5,1* &2; 0HPSKLV 7HQQHVVHH 5REHUW 7 EHHQ SUDFWLFHG XSRQ WKH FRXUWl   %5 DW  FLWLQJ +\GHsU52*(5672:(56%$,/(<s21(6 *$< &KDPEHUVY1$6&2,QF86   sDFNVRQYLOOH)ORULGDIRU$SSHOOHH :KLOHZHDJUHHWKDWDWWRUQH\jVIHHVVKRXOGEHDZDUGHGRQO\ BBBBBBBBBBBBBBBBB LQUDUHFLUFXPVWDQFHVRXUFRQFOXVLRQWKDW7HQQ)OD3DUWQHUV SHUSHWUDWHGIUDXGXSRQWKHFRXUWMXVWLILHVWKHLUDZDUGLQWKLV 23,1,21 LQVWDQFH BBBBBBBBBBBBBBBBB 3XQLWLYH'DPDJHV $/$1 ( 1255,6 &LUFXLW s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†   2Q YLHZWKHEDQNUXSWF\FRXUWGLGQRWDEXVHWKDWGLVFUHWLRQLQ DSSHDOWKHGLVWULFWFRXUWDIILUPHG7HQQ)OD3DUWQHUVY)LUVW GHQ\LQJ SXQLWLYH GDPDJHV IRU WKH UHDVRQV VHW IRUWK LQ LWV 8QLRQ 1DWjO %DQN RI )ORULGD  %5  :'7HQQ RUGHU%5DW   DQG LW LV IURP WKDW GHFLVLRQ WKDW WKH SDUWQHUVKLS DSSHDOV ,,, )RULWVSDUWWUXVWHH)LUVW8QLRQ1DWLRQDO%DQNRI)ORULGD 7KHMXGJPHQWRIWKHGLVWULFWFRXUWLVDIILUPHG m)LUVW8QLRQl FURVVDSSHDOVIURPWKHGLVWULFWFRXUWjVGHQLDO RISXQLWLYHGDPDJHV

7KH +RQRUDEOH 3DXO 5 0DWLD 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH 1RUWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ  ,QUH7HQQ)OD3DUWQHUV 1RV 1RV ,QUH7HQQ)OD3DUWQHUV 

UHFRYHU\ WR VDWLVI\ WKH SDUWQHUVj SHUVRQDO H[SRVXUH WR )LUVW , 7HQQHVVHH%DQNl,GDW 7HQQ)OD 3DUWQHUV VHUYHG DV DQ LQYHVWPHQW YHKLFOH IRU :HDJUHHZLWKWKHDQDO\VLVRIWKHEDQNUXSWF\FRXUWZLWK LQGLYLGXDOV$WLVVXHLQWKLVFDVHLVWKHVROHDVVHWKHOGE\WKH UHVSHFW WR WKH QDWXUH RI WKH IUDXG UHTXLUHG WR VXSSRUW SDUWQHUVKLS WKH /DNHVLGH 1RUWK DW $OWDPRQWH 0DOO UHYRFDWLRQRIDFRQILUPDWLRQRUGHUDQGDGRSWWKHUHDVRQLQJVHW m/DNHVLGHl  DQ H[WHQVLYH DSDUWPHQW FRPSOH[ ORFDWHG LQ RXWDERYH6SHFLILFDOO\ZHKROGWKDWIUDXGRQWKHFRXUWFDQ 2UODQGR)ORULGD,Q7HQQ)OD3DUWQHUVUHILQDQFHGWKH MXVWLI\UHYRFDWLRQXQGHU†$IWHUDOO†SURYLGHV ILUVWPRUWJDJHZLWKZRUWKRIWD[H[HPSWERQGV WKDW mWKH &RXUW PD\ UHYRNH VXFK RUGHU LI DQG RQO\ LI VXFK LVVXHGE\WKH)ORULGD+RXVLQJ)LQDQFH$XWKRULW\)LUVW8QLRQ RUGHUZDVSURFXUHGE\IUDXGl6LQFHDFRQILUPDWLRQRUGHUFDQ VHUYHVDVWKHLQGHQWXUHWUXVWHHIRUWKHERQGKROGHUV RQO\LVVXHLILWVSURSRQHQWGHPRQVWUDWHVWRWKHFRXUWWKDWWKH UHTXLUHPHQWVRI†KDYHEHHQPHWLWVWDQGVWRUHDVRQWKDW 7HQQ)OD3DUWQHUVILOHGDYROXQWDU\&KDSWHUSHWLWLRQRQ WKHVWDWXWHHQYLVLRQVWKDWWRVRPHH[WHQWWKHIUDXGPD\EH sXO\7KLVPRYHZDVSUHFLSLWDWHGE\DGRZQWXUQLQ GLUHFWHGDWWKHFRXUW6HH,QUH/RQJDUGQHU $VVRFV,QF WKH 2UODQGR UHDO HVWDWH PDUNHW ZKLFK DOOHJHGO\ UHGXFHG )G WK&LU  m>6@HFWLRQH[SUHVVO\ /DNHVLGHjVYDOXHZHOOEHORZWKHGHEWVHFXULQJWKHSURSHUW\ DOORZHG WKH EDQNUXSWF\ FRXUW WR UHYRNH LWV    RUGHU 7KHFUX[RIWKLVDSSHDOLQYROYHVWKHDSSURSULDWHYDOXDWLRQRI FRQILUPLQJWKHUHRUJDQL]DWLRQSODQLIWKHFUHGLWRUKDGPHWWKH /DNHVLGH  $IWHU H[WHQVLYH &KDSWHU  SURFHHGLQJV WKH SUHUHTXLVLWH RI VKRZLQJ WKDW WKH FRXUW ZDV GHIUDXGHGl EDQNUXSWF\ FRXUW FRQILUPHG DQ DPHQGHG SODQ SURSRVHG E\ HPSKDVLV DGGHG  )LUVW 8QLRQ 1DWjO %DQN RI )ORULGD Y 7HQQ)OD 3DUWQHUV XQGHU ZKLFK WKH SDUWQHUVKLS ZRXOG 3HUGLGR 0RWHO *URXS ,QF  %5   1'$OD SXUFKDVHWKHSURSHUW\DQGRXWVWDQGLQJERQGVIRU   m>@VSHDNVRIYDFDWLQJDQRUGHURIFRQILUPDWLRQ 7KH FRXUWjV FRQILUPDWLRQ RUGHU LV GDWHG sDQXDU\   ZKHUH WKDW RUGHU ZDV SURFXUHG E\ IUDXG  ,W LV WKXV IUDXG +RZHYHU RQ )HEUXDU\  7HQQ)OD 3DUWQHUV HQWHUHG LQWR D GLUHFWHG DW WKH EDQNUXSWF\ FRXUW WKDW ZLOO SURYLGH WKH FRQWUDFWZLWK8QLWHG'RPLQLRQDUHDOHVWDWHLQYHVWPHQWWUXVW IRXQGDWLRQIRUYDFDWLQJDQRUGHURIFRQILUPDWLRQl $VWKH ZKLFK DJUHHG WR SXUFKDVH WKH ERQGV DQG SURSHUW\ IRU GLVWULFWFRXUWSRLQWHGRXWm7KHLQWHJULW\RIWKHFRQILUPDWLRQ   $V WKH EDQNUXSWF\ FRXUW QRWHG WKLV VDOH SURFHVVLVGHSHQGHQWRQDSODQSURSRQHQWjVKRQHVWFRPSOLDQFH UHVXOWHG LQ mDQ DSSDUHQW QHW UHFRYHU\ WR WKH GHEWRU RI ZLWKWKHUHTXLUHPHQWVRI†l%5DW DSSUR[LPDWHO\RYHUWKHDPRXQWVQHFHVVDU\WRSD\ WKHERQGKROGHUVDQGRWKHUFUHGLWRUVXQGHUWKHSODQl%5 $SSO\LQJWKLVOHJDOIUDPHZRUNZHFRQFOXGHWKDWWKHIDFWV DW,QUHYRNLQJLWVRUGHURIFRQILUPDWLRQWKHFRXUWIXUWKHU IRXQG E\ WKH EDQNUXSWF\ FRXUW VXSSRUW LWV FRQFOXVLRQ WKDW IRXQG WKDW 7HQQ)OD 3DUWQHUV KDG mGHOLEHUDWHO\ SXW RII WKH IUDXGRFFXUUHGLQWKLVFDVHDQGWKDWWKHUHYRFDWLRQRUGHUZDV UHFHLSWRIRIIHUVXQWLODIWHUWKHFRQILUPDWLRQRILWVSODQ>

Free access — add to your briefcase to read the full text and ask questions with AI

Tenn-Fla Partners v. First Union Natl Bk, (6th Cir. 2000).

Tenn-Fla Partners v. First Union Natl Bk (Tenn-Fla Partners v. First Union Natl Bk) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.