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B¦!˜HP LaserJet 4Si/4SiMX PS 600dpiPSCRIPTÀÌÀääÀÀÌ0 (ÈhH  Z ‹6Times New Roman RegularX($¡¡  V D D V D D  D  Ó€©U!xxxxxx3|x &ruZ ‹8CaslonOpnface BT Regular((3üÝ$¤¤Ý ƒ!ÝÝ  Ýà  àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  Úóó d2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô !"#$ ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)< Œ 9p`(ModernP ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ'ÿÿdxd("ÿÿ$££Ò  ÒÒ  Ò< Œ 9p`(Monaco< Œ 9p`(&Times New Roman< Œ 9p`(Courier New% Line 7 d33337Border 1dd€-4Cþÿ << Gÿÿ< Œ 9p`(Arial Ý ƒ!ÝÑ#€d#ÑÔ€&ÔÔ€1ÔÝ  ÝÔ€6ÔÔ€6ÔÓ  ÓÔ YYY ÔFILEDÔ€6XÔÌÌò òAugust€27,€1996ÌÌCecil€Crowson,€Jr.ÌÔ€6ôÔAppellate€Court€Clerkó ó ªÝ ƒ!ÝÑ#€d#ÑÔ€&ÔÔ€1ÔÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝÔ€1ôÔÔ€2ÔThe€FDIC€is€the€statutory€successor€to€the€Resolution€TrustÏCorporation,€which€was€initially€appointed€receiver€in€this€case.€€ForÏsimplicity€we€shall€refer€to€the€receiver€as€ð ðthe€FDICðð€throughout€thisÏopinion.Ì AÝ ƒ!ÝÑ#€d#ÑÔ€&ÔÔ€1ÔÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝÔ€2ÔÔ€2ôÔThere€is€nothing€in€the€record€to€indicate€that€Stewart€Title€was€awareÏof€the€Charlesðð€payments€on€the€debt.Ì gÝ ƒ!ÝÑ#€d#ÑÔ€&ÔÔ€1ÔÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝÔ€2ÔÔ€2ôÔInterestingly€enough,€the€Bank€also€did€not€release€the€note€and€deedÏof€trust€to€which€it€now€contends€the€payoff€of€$14,601.73€was€actuallyÏrelated.Ì hÝ ƒ!ÝÑ#€d#ÑÔ€&ÔÔ€1ÔÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝÔ€2ÔÔ€2ôÔ12€U.S.C.€ðð€1823(e)€provides,€in€pertinent€part,€as€follows:ÌÌà8 àà8 àNo€agreement€which€tends€to€diminish€or€defeat€theÏinterest€of€the€Corporation€in€any€asset€acquired€byÏit€under€this€section€or€section€1821€of€this€title,Ïeither€as€security€for€a€loan€or€by€purchase€or€asÏreceiver€of€any€insured€depository€institution,€shallÏbe€valid€against€the€Corporation€unless€such€agreementÏ.€.€.ÌPtPtHHÚ(ÿáÿâùFG(üHHÚ(d'@Styl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑMonacoÑÑ ÑÒ  BA Op Monaco ÒÒ  BA Op Monaco Ò€-‚ƒCþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5($$””ò òÚ  Ú1Ú  Úó ó„„'÷ÿ dxdüÿP PdÝ ƒ!ÝÔ . ÔÔ€&ÔÓ&€00X„d&ÓÑ#€00Xd#ÑÔ€1ÔÝ  Ý›Ñ  ÑÑ\R AØ'\ÑÓ  ÓÔ€2ÔÑ\R AØ'\ÑÑ7€õuXXdìdÈ7ÑÑ  ÑIN€THE€COURT€OF€APPEALS€OF€TENNESSEEÌÓ  ÓÌÌSTEWART€TITLE€GUARANTY€COMPANY,€)€C/A€NO.€03A01„9604„CH„00144€Ìà àà àà àà àà àà à€€)̜ـ€ÙÙ€€ÙßL€574;+'h|` Å `€€Lß›à àà àPlaintiff/Appellee,à à€€)Ìv.à àà àà àà àà àà à€€)Ìà àà àà àà àà àà à€€)ÌFEDERAL€DEPOSIT€INSURANCE€€€€€€€)ÌCORPORATION,€€€€à àà àà à€€)Ìà àà àà àà àà àà à€€)Ìà àStatutory€Successor€to€à à€€)Ìà àà àà àà àà àà à€€)Ìà àà àà àà àà àà à€€)ÌRESOLUTION€TRUST€CORPORATION,€€€)€HONORABLE€œHOWELL›€N.€PEOPLES,Ìin€its€capacity€as€Conservator€€)€CHANCELLORÌfor€Cherokee€Valley€F.S.A.,à à€€)Ìà àà àà àà àà àà à€€)Ìà àà àDefendant/Cross„à à€€)Ìà àà àPlaintiff/Appellant;€€)Ìà àà àà àà àà àà à€€)Ìandà àà àà àà àà àà à€€)Ìà àà àà àà àà àà à€€)ÌALFONSO€CHARLES€and€GWENDOLYN€€€)ÌCHARLES,€à àà àà àà à€€€€€€€)Ìà àà àà àà àà àà à€€)Ìà àà àDefendants/Cross„à à€€)Ìà àà àDefendants/Appellees.€)€HAMILTON€COUNTY€CHANCERY€COURTÌÌà àÌÌFor€Appellant:€€€€€€€€€€€€€€€€€€€€€€€€€€For€Appellee€STEWART€Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€TITLE€GUARANTY€COMPANY:ÌÌTED€C.€RAYNOR€€€€€€€€€€€€€€€€€€€€€€€€€€€JOHN€C.€CAVETT,€JR.ÌLeitner,€Warner,€Moffitt,€€€€€€€€€€€€€€€Cavett€&€AbbottÌWilliams,€Dooley€&€œNapolitan›,€œPLLC›€€€€€€Chattanooga,€TennesseeÌChattanooga,€TennesseeÌà àà àà àà àà àà àà àà àà àÌÒ ° ÒÒ Ð Òà àà àà àà àà àà àà àà àFor€Appellees€ALFONSO€CHARLESÌà àà àà àà àà àà àà àà àand€GWENDOLYN€CHARLES:ÌÌà àà àà àà àà àà àà àà àSELMA€CASH€PATYÌà àà àà àà àà àà àà àà àPaty,€Rymer€&€œUlin›,€P.C.Ìà àà àà àà àà àà àà àà àChattanooga,€TennesseeÌÒ ° ÒÒ ° ÒÌÌÌÌÌÓ  ÓÔ€2 ÔÔ€ ÔO€P€I€N€I€O€NÌÌÌÓ  ÓÔ€ XÔÔ€2ÔAFFIRMED€AND€REMANDED€€€€€€€€€€€€€€€€€€€€€€€€€€Susano,€J.ÇÑ P ÑÓÓà àà àThis€litigation€finds€its€genesis€in€the€aftermath€of€aÏfailed€banking€institution.€€In€1984,€Cherokee€Valley€FederalÏSavings€Bank€(Bank)€loaned€appellees€Alfonso€and€Gwendolyn€CharlesÏ(Charles)€$45,750€to€finance€the€purchase€of€property€on€SignalÏMountain,€Tennessee.€€The€Charles€executed€and€delivered€to€theÏBank€a€90„day€note€for€$45,750€and€a€deed€of€trust€on€theÏpurchased€property,€which€was€municipally€known€as€1302€SpencerÏRoad.€€ÌÌà àà àApproximately€a€year€later€the€Charles€sold€the€propertyÏto€John€and€Christina€Harr,€who,€as€a€part€of€the€transaction,Ïsought€a€title€insurance€policy€from€appellee€Stewart€TitleÏGuaranty€Company€(Stewart€Title).€€Stewart€Titleððs€agent€calledÏthe€Bank,€gave€it€the€name€of€the€borrowers,€i.e.,€the€Charles,Ïand€the€correct€address€of€the€property,€and€then€asked€for€theÏamount€of€the€payoff€on€the€note.€€An€employee€of€the€Bank€gaveÏStewart€Titleððs€agent€the€wrong€loan€number€and€amount,€statingÏthat€the€payoff€was€$14,601.73.€€In€fact,€the€correct€payoff€wasÏover€$43,000,€as€the€Charles€had€paid€a€total€of€only€$2,653.76Ïtoward€the€debt.€€At€closing,€Stewart€Title€tendered€a€check€inÏthe€amount€of€$14,601.73€to€the€Bank.€€The€Bank€accepted€andÏnegotiated€the€check€without€comment.€€Convinced€that€the€note€wasÍthen€paid€in€full,€and€that€it€and€the€deed€of€trust€would€beÏreleased,€Stewart€Title€wrote€the€Harrs€a€policy€of€titleÏinsurance.€€ÌÌà àà àThe€Bank€never€marked€as€paid,€nor€released,€the€noteÏand€deed€of€trust.€€On€June€12,€1992,€the€United€States€TreasuryÏDepartment€ordered€the€Bank€closed,€and€the€Federal€DepositÏInsurance€Corporation€(FDIC)€was€appointed€receiver.× ƒ8 ××  ×€€In€1994,€theÏFDIC€initiated€foreclosure€proceedings€on€the€property.€€At€thatÏpoint,€the€property€had€changed€hands€twice€since€the€Charles„to„œHarrs›€transaction.ÌÌà àà àStewart€Title€filed€suit,€arguing€that€the€FDIC€shouldÏbe€equitably€estopped€from€foreclosing€under€the€circumstances.€ÏThe€Chancellor,€after€a€non„jury€trial,€agreed,€issuing€aÏpermanent€injunction€against€foreclosure€and€declaring€the€deed€ofÏtrust€released.€€The€FDIC€appeals,€raising€the€following€issuesÏfor€review:ÌÓÓÌÌà8 àà8 à1.€€Was€the€Chancery€Court€without€power€toÏenjoin€foreclosure€by€virtue€of€12€U.S.C.€Ìà8 àà8 àðð€1821(j)?ÌÌà8 àà8 à2.€€Did€the€Chancellor€err€in€applying€theÏdoctrine€of€equitable€estoppel€to€enjoinÏforeclosure€and€in€decreeing€release€of€theÏdeed€of€trust?ÌÌà8 àà8 à3.€€Does€the€operation€of€12€U.S.C.€ðð€1823(e)Ïbar€Stewart€Titleððs€reliance€upon€anyÏnegligence€on€the€part€of€the€bank?ÌÌÌÌÓÓFinding€no€error€in€the€Chancellorððs€judgment,€we€affirm.ÌÌÓ  ÓœI›ÌÌÓ  Óà àà àThe€relevant€facts€are€undisputed.€€The€CharlesÏpurchased€the€property€at€1302€Spencer€Road€on€October€18,€1984.€ÏThe€bank€loaned€them€the€purchase€price,€$45,750,€and€in€returnÏthey€executed€a€note€for€that€amount€and€a€deed€of€trustÏreflecting€the€property€as€security€for€the€note.€€The€note,€byÏits€terms,€was€due€in€full€in€90€days.€€ÌÌà àà àOn€August€30,€1985,€the€Charles€conveyed€the€property€byÏgeneral€warranty€deed€to€the€Harrs.€€The€Harrs€sought€a€titleÏinsurance€policy€from€Stewart€Title,€and€so€an€agent€of€StewartÏTitle,€Ms.€Sharon€Inglis,€called€the€Bank€for€the€payoff€on€theÍCharlesðð€outstanding€note.€€Inglis€provided€the€Bank€with€theÏCharlesðð€names,€the€address€of€the€subject€property,€i.e.,€1302ÏSpencer€Road,€and€ð ðprobably€a€legal€description€of€the€property.ððÌShe€did€not€know€the€Bankððs€ID€number€for€the€loan€because€it€wasÏnot€reflected€on€the€note€or€the€deed€of€trust.€€An€employee€ofÏthe€Bank€told€Inglis€the€loan€number€was€ð ð4701254"€and€that€theÏpayoff€for€the€loan€was€$14,601.73.€€During€the€conversation,ÏœInglis›€recorded€this€information€in€her€notes.ÌÌà àà àIn€fact,€the€correct€loan€number€was€ð ðC„280"€and€theÏcorrect€payoff€was€over€$43,000€because€the€Charles€had€then€paidÏonly€$2,653.76€toward€the€debt.œ× ƒ9 ××  ×›€€The€apparent€source€of€this€errorÏwas€that€the€Charles€had€several€other€outstanding€loans€with€theÏBank€at€the€time,€and€the€incorrect€loan€number€and€payoff€whichÏthe€Bank€gave€Inglis€apparently€corresponded€with€another€of€theÏCharlesðð€loans.€€However,€there€was€only€one€loan€secured€by€theÏproperty€at€the€1302€Spencer€Road€address,€and€that€was€loanÏnumber€ð ðC„280.ðð€ÌÌà àà àAt€closing,€Stewart€Title€withheld€$14,601.73€from€theÏCharlesðð€proceeds€from€the€sale.€€The€Charles€received€a€netÏamount€of€$44,547.44.€€Stewart€Title€tendered,€as€full€payment,€aÏcheck€in€the€amount€of€$14,601.73€to€the€Bank;€the€check€stated€onÏits€face,€ð ð1st€mortgage€payoffðð€and€ð ð1302€Spencer€Ave.ðð€€InglisÏalso€provided€the€Bank€a€transmittal€letter€stating,€ð ðWe€areÏenclosing€our€check€in€the€amount€of€$14,601.73€on€the€aboveÏsubject€for€payoff.ðð€€The€ð ðsubjectðð€was€listed€as€ð ðLoan€No.Ï4701254„„Alfonso€Charles.ðð€€The€Bank€accepted€and€negotiated€theÏcheck.€€Stewart€Title,€convinced€that€title€to€the€property€wasÏthen€free€and€clear€of€the€Charlesðð€deed€of€trust,€wrote€the€HarrsÏa€title€insurance€policy€which€did€not€list€that€encumbrance.€€TheÏBank€never€released€the€note€and€deed€of€trust€and€so€it€remainedÏoutstanding€on€its€books.× ƒ: ××  ×ÌÌà àà àThe€Charles€testified€that€sometime€around€1988,€the€ÏBank€approached€them€regarding€the€payment€of€the€loan€on€theÏSpencer€Road€property.€€They€hired€a€lawyer€and€some€negotiationsÏensued,€but€Mrs.€Charles€testified€that€they€never€reached€aÏresolution.€€In€any€event,€it€appears€the€Bank€was€aware€of€someÍproblem€regarding€the€loan,€but€did€not€demand€payment€on€loan€ð ðC„280"€at€that€time€or€thereafter.€ÌÌà àà àOn€June€12,€1992,€the€Bank€was€ordered€closed€and€theÏFDIC€took€over€as€receiver€for€that€institution.€€In€the€meantime,Ïthe€Harrs€had€sold€the€property€to€another€party,€who€in€turn€soldÏit€to€Ms.€Sharon€Skiles.€€Ms.€Skiles,€who€is€not€a€party€to€theseÏproceedings,€was€the€owner€in€1994€when€the€FDIC€initiatedÏforeclosure€on€the€property.€€€€ÌÌà àà àStewart€Title€filed€suit€to€enjoin€the€foreclosure€onÏequitable€estoppel€grounds.€€The€FDIC€filed€a€cross„claim€againstÏthe€Charles€for€the€overpayment€they€received€at€the€closing.€€TheÏChancellor€ruled€that€the€cross„claim€was€barred€by€the€applicableÏstatute€of€limitations€and€the€FDIC€has€not€appealed€this€ruling.€ÏThe€Chancellor€applied€the€doctrine€of€equitable€estoppel,Ïenjoining€the€FDIC€from€foreclosure€and€declaring€the€deed€ofÏtrust€released.€ÌœÇÓ  ÓII›ÌÌÓ  Óà àà àIn€this€non„jury€case,€our€review€is€òòde€novoóó€upon€theÏrecord€of€the€trial€courtððs€proceedings;€however,€that€recordÏcomes€to€us€accompanied€by€a€presumption€of€correctness,€unlessÏthe€preponderance€of€the€evidence€is€otherwise.€€T.R.A.P.€13(d);Ïò òòòUnion€Carbide€Corp.€v.€Huddleston,€ó óóó854€S.W.2d€87,€91€(Tenn.Ï1993).€ÌÌà àà àWe€first€address€whether€12€U.S.C.€ðð€1821(j)€precludesÏthe€Chancery€Court€from€enjoining€foreclosure€on€the€note,€as€theÏFDIC€argued€below.€€The€statute€provides€as€follows:ÌÓÓÌÌà8 àà8 àExcept€as€provided€in€this€section,€no€courtÏmay€take€any€action,€except€at€the€request€ofÏthe€Board€of€Directors€by€regulation€or€order,Ïto€restrain€or€affect€the€exercise€of€powersÏor€functions€of€the€Corporation€as€aÏconservator€or€a€receiver.€ÌÌÌÌÓÓ12€U.S.C.€ðð€1821(j).€€Stewart€Title€relies€on€a€recent€U.S.ÏSupreme€Court€decision,€ò òòòOððMelveny€&€Myers€v.€F.D.I.C.,ó óóó€114ÏS.Ct.€2048€(1994),€construing€12€U.S.C.€ðð€1821.€€The€œò òòòOððMelveny€&ÏMyers›€ó óóóCourt€stated€the€following:ÌÓÓÌÌà8 àà8 àSection€1821(d)(2)(A)(i),€which€is€part€of€aÏTitle€captioned€ð ðPowers€and€duties€of€[theÏFDIC]€as.€.€.receiver,ðð€states€that€ð ðtheÏ[FDIC]€shall.€.€.by€operation€of€law,€succeedÏto„„all€rights,€titles,€powers,€and€privilegesÏof€the€insured€depository€institution.€.€.ððÏ[citation€omitted]€This€language€appears€toÏindicate€that€the€FDIC€as€receiver€ð ðsteps€intoÏthe€shoesðð€of€the€failed€S€&€L,€.€.€.obtainingÏthe€rights€ð ðòòofóó€the€insured€depositoryÏinstitutionðð€that€existed€prior€toÏreceivership.€€Thereafter,€in€litigation€byÏthe€FDIC€asserting€the€claims€òòof€óóthe€S€&€L.€.Ï.ð ðany€defense€good€against€the€original€partyÏis€good€against€the€receiver.ððÌÌà àà àà à*à àà à*à àà à*à àà à*ÌÌà8 àà8 àIt€is€hard€to€avoid€the€conclusion€that€€Ìà8 àà8 àðð€1821(d)(2)(A)(i)€places€the€FDIC€in€theÏshoes€of€the€insolvent€S€&€L,€to€work€out€itsÏclaims€under€state€law,€except€where€someÏprovision€in€the€extensive€framework€of€FIRREAÏprovides€otherwise.ÌÌÌÓÓò òòòOððMelveny€&€Myers,€ó óóó114€S.Ct.€at€2054€[citations€omitted;Ïemphasis€and€brackets€in€original].€€In€its€reply€brief,€the€FDICÏstates€the€following€regarding€this€case:ÌÓÓÌÌà8 àà8 àThe€FDIC€in€this€case€accepts€the€SupremeÏCourtððs€holding€in€ò òòòOððMelveny€œ&›€Myersóóó ó€whichÏprovides€that€the€FDIC€steps€into€the€shoes€ofÏa€failed€institution€such€that€a€defense€goodÏagainst€the€institution€would€apply€againstÏthe€FDIC€as€receiver.€€What€both€the€trialÏcourt€and€the€appellee€overlook€is€thatÏStewart€Title€does€not€have€a€valid€defenseÏagainst€the€failed€institution.€€ÌÌÌÌÓÓThus,€we€affirm€the€Chancellorððs€ruling€that,€under€œò òòòOððMelveny€&ÏMyers,›€óóó ó€12€U.S.C.€ðð€1821(j)€does€not€preclude€the€court€fromÏenjoining€the€foreclosure€if€Stewart€Title€has€a€valid€state€lawÏœdefense.Ç›Ó  ÓœIII›ÌÓ  ÓÌà àà àTurning€to€the€merits€of€the€defense€relied€upon€byÏStewart€Title,€i.e.,€equitable€estoppel,€we€find€that€it€hasÏvalidity.€€The€Chancellor,€in€his€Memorandum€Opinion,€applied€theÏequitable€estoppel€doctrine€to€the€facts€of€this€case€as€follows:ÌÓÓÌÌà8 àà8 àEquitable€estoppel€requires€proof€of€a€numberÏof€items.€€There€must€be€words,€acts,€conductÏor€acquiescence€causing€another€to€believe€inÏthe€existence€of€a€certain€state€of€affairs.€ÌÌà8 àà8 àIn€this€case,€Stewart€Title€says€that€theÏrepresentation€of€the€closing€balance€fromÏ[the€Bank]€are€the€words€that€theyððre€relyingÏon.€€Certainly€no€one€other€than€[the€Bank]Ïwould€have€superior€knowledge€ofÌà àà8 à.€.€.€.the€payoff€balance€on€the€mortgage.ÌÌà8 àà8 àThey€also€rely€on€the€fact€that€nothingÏoccurred€from€1985€until€December€of€1994,Ïlate€1994,€when€foreclosure€was€commenced.€€NoÏeffort€was€made€to€collect€interest€from€theÏCharles;€no€effort€was€made€to€enforce€thisÏ90„day€loan€that€existed€on€the€property.ÌÌà8 àà8 àThe€second€element€that€Stewart€Title€mustÏprove€is€wilfulness€or€negligence€with€regardÏto€the€acts,€conduct€or€acquiescence€Ìà8 àà8 à.€.€.€.[œC]ertainly›€the€Court€has€no€problemÏfinding€negligence€in€first,€giving€anÏerroneous€payoff€balance,€and€secondly,€doingÏnothing€to€correct€it,€even€after€it€wasÏobviously€known€to€them€in€1988.€€Thirdly,Ïthere€must€be€a€detrimental€reliance€by€theÏother€party€upon€the€state€of€the€things€thatÏare€indicated.€€ÌÌà8 àà8 àWell,€in€this€case,€based€upon€theÏrepresentation€of€the€payoff€figure€and€theÏfact€that€a€check€was€sent€for€that€payoffÏfigure,€Stewart€Title€issued€an€insuranceÏpolicy€guaranteeing€œthat€that›€property€wasÏfree€and€clear€of€any€defects€in€the€title,Ïand€specifically€free€and€clear€of€anyÏmortgage€owed€to€[the€Bank].ÌÌà8 àà8 àAn€additional€element€which€must€be€shown€isÏthat€Stewart€Title€relied€upon€the€statementsÏor€actions€of€[the€Bank]€without€anÏopportunity€to€know€the€truth.€€At€no€pointÏfrom€August€of€1985,€until€foreclosureÏproceedings€were€commenced,€did€Stewart€TitleÏhave€any€opportunity€to€know€the€true€state€ofÏaffairs.€€[The€Bank]€and€no€one€on€theirÏbehalf€ever€did€anything€to€place.€.€.StewartÏTitle€on€notice€of€any€error€that€had€beenÏcommitted€in€giving€an€erroneous€payoffÏbalance.ÌÌà8 àà8 àFinally,€there€must€be€an€action€based€on€thatÏreliance€that€results€in€a€detriment€to€theÏone€who€acted€on€that€representation.€ÌÌà8 àà8 àIn€this€case,€Stewart€Title€has€been€subjectedÏto€a€claim€on€the€insurance€policy€at€issue,Ïwhich€if€it€is€compelled€to€pay,€certainlyÏwill€result€in€a€detriment€to€Stewart€Title.€€ÌÌà àà àà à*à àà à*à àà à*à àà à*ÌÌà8 àà8 àIn€this€case,€the€[Bank],€by€virtue€ofÏequitable€estoppel,€would€be€precluded€fromÏasserting€the€rights€that€it€has€under€theÏdeed€of€trust.ÌÌÌÌÓÓWe€agree€completely€with€the€analysis€of€the€Chancellor.€€òòSeeÏò òRobinson€v.€Tennessee€Farmers€Mut.€Ins.€Co.,ó óóó€857€S.W.2d€559,Í563€(Tenn.€App.€1993),€ò òòòReed€v.€Washington€County€Bd.€of€Ed.,Ïó óóó756€S.W.2d€250,€255€(Tenn.€1988),€ò òòòChattem,€Inc.€v.€ProvidentÏLife€&€Acc.€Ins.€Co.,ó óóó€676€S.W.2d€953,€955€(Tenn.€1984).€€TheÏFDIC€argues€that€the€Bank€was€not€negligent,€in€that€the€loanÏnumber€given€to€Stewart€Title€correctly€matched€the€payoff€amountÏfor€that€loan€number.€€We€disagree.€€Although€the€FDICððs€statementÏis€factually€correct,€it€misses€the€point;€which€is,€when€providedÏwith€correct€information€as€to€the€borrowersðð€names€and€theÏaddress€of€the€property,€the€Bank€gave€Stewart€Title€the€wrongÏloan€number,€and€consequently,€and€more€importantly,€the€wrongÏpayoff€amount.€€Further,€the€cases€on€equitable€estoppel€do€not€soÏmuch€require€a€showing€of€ð ðnegligenceðð€as€ÌÓÓÌÌà8 àà8 à[c]onduct€which€amounts€to€a€falseÏrepresentation€or€concealment€of€materialÏfacts,€or,€at€least,€which€is€calculated€toÏconvey€the€impression€that€the€facts€areÏotherwise€than,€and€inconsistent€with,€thoseÏwhich€the€party€subsequently€attempts€toÏassert.ÌÌÌÌò òòòÓÓRobinson,€ó óóó857€S.W.2d€at€563.€€Quite€simply,€this€appears€to€us€toÏbe€a€classic€case€for€the€application€of€the€doctrine€of€equitableÏestoppel.€€ÌÌÓ  ÓœIV›ÌÌÓ  Óà àà àThe€FDIC€argues€on€appeal€that€the€operation€of€12ÏU.S.C.€ðð€1823(e)× ƒ; ××  ×€prevents€Stewart€Title€from€relying€upon€theÏBankððs€negligence€and€the€equitable€estoppel€doctrine.€€As€theÏCharlesðð€brief€points€out,€however,€there€is€nothing€in€the€recordÏbefore€us€indicating€that€this€argument€was€presented€to€theÏChancellor€at€trial.€€It€was€not€affirmatively€œpled›€by€the€FDIC.€ÏRule€8.03,€Tenn.€R.€œCiv›.€P.€requires€that€all€affirmative€defensesÏbe€set€forth€in€a€defendantððs€response.€€Furthermore,€theÏtranscript€reveals€that€it€was€not€argued€to€the€Chancellor€atÏtrial,€nor€did€he€make€a€ruling€on€the€application€of€the€statute,Ïalthough€he€specifically€addressed€the€ðð€1821(j)€issue.€€ÌÌà àà àOur€jurisdiction€is€appellate€only,€T.C.A.€ðð€16„4„108(a)(1),€and€thus€the€rule€has€long€been€well„settled€that€ÌÓÓÌÌà8 àà8 à[t]his€Court€can€only€consider€such€matters€asÏwere€brought€to€the€attention€of€the€trialÏcourt€and€acted€upon€or€[pretermitted]€by€theÏtrial€court.ÌÌÌÌÓÓò òòòIrvin€v.€Binkley,€ó óóó577€S.W.2d€677,€679€(Tenn.€App.€1978);€ò òòòThomasÏv.€Noe,€ó óóó301€S.W.2d€391,€394€(Tenn.€App.€1956);€ò òòòFoley€v.€DaytonÏBank€&€Trust,€ó óóó696€S.W.2d€356,€359€(Tenn.€App.€1985).€€€€ThisÏissue€was€not€addressed€by€the€trial€judge€or€pretermitted€by€him;Ïit€cannot€be€raised€for€the€first€time€on€appeal.ÌÌà àà àThe€Chancellorððs€judgment€is€affirmed.€€Costs€on€appealÏtaxed€and€assessed€to€appellant.€€This€case€is€remanded€forÏcollection€of€costs€assessed€below,€pursuant€to€applicable€law.ÌÌÓÓÌà àà àà àà àà àà àà à____________________________Ìà àà àà àà àà àà àà àCharles€D.€Susano,€Jr.,€J.ÌÌœÇCONCUR:›ÌÌÌÌ___________________________€€€€€€€€€ÌHouston€M.€Goddard,€P.J.ÌÌÌÌ___________________________ÌDon€T.€McMurray,€J.Ì