ÿWPCè =Ìw`D K×;Ž_UGÇ]ÕDE*eD»ÿ뤸›pe¥bR!ɧ¼ÿdJ> ÂP*˜@ЗxPîØ2);”Ïv¡¿D3%ÛrN|:p6ã~dzl54&rÖÞ[>o/káàÿP¸Y«¢" ¯ýe±L´¯Ý@w^‡kLE‘ý‚oþÃ2gtúûeÆÊ·7‡³ýÞeÇ–µl ù·6‘åÊÃ> ƒòàn_‡cߎxŸœRþzåéÜÌ vÔ ‘¹~´cæ´ÎŸ(Ô™+ê¡цn˜gÅ‚/}̰dïO×°ŸÈ·ÒùRlžiàg}¨[ŽÝC‹2 ß<ßœ{dÓ»¡óž£êl[¶ÿ—ÁÓ´·ß ñ5m"{èëCóI050|ôSN{Mà—_‚…qtÚt–Á¦bÉ2ÓÓ´åd¹·!mn‘ǾkYs¸€ç®÷.isžCÝrTSì„n.h{įX~+?ÝÒ‹X«Ÿt¾¿šgó…ž™ƒÖsÙ#t—-Ä!Ø«¿$0QMÌñ¼2’¹žŽ#´¦6Ä\œB¾4$öÿoÖ ©3@¥ÒÙFƒ¢¢dÀf}†Zõœ¢”OfCåµvרÆpZî^T€]2…Ý’±^ú$ƒ b*M? *# LUNW %¥ 0³«U<^w@š4ÚîU<ý9˜A 0÷Ù 0DÐ { -U://///////////// Bi AQ†Æ× 0D 0Dá 0D%% D/ii B˜ D3µ˜HP LaserJet 4SiHPPCL5MS,ü,,,,,ü0nLhÎ(ÈhH  Z 6Times New Roman RegularX(‹7ÿ$¡¡Ò°ÒÒ„°ÒÓ  ÓÑ7€ü†XXdðXXdð7ÑÑ  ÑÔ€Xd|XXXÔ-šBu Z‹$Arrus BT Roman .[/0E1[2[34U5î6Ó€7Ó€kDJ&ddd 3|x@)LÀÄ  Z $Arrus BT Roman ŽÝ ƒ ø‰$ÝÒ°ÒÒ„°ÒÔ‡ Xz¼XXXÔÓ  ÓÔ‡ UþáUXXz¼ÔÓçÓà ` àòòÚ  Ú1Ú  ÚóóÝ  ÝÓôçÓIn€fact€Fulcher€refused€to€sign€a€release€proposed€by€Stan€Allen€dated€JulyÐ ° Ð1993€which€included€the€following€language:Ð ­ý  Їà8 ` àà8¸ ` ü!` ü!àUpon€full€compliance€with€said€agreement€of€JuneÏ17,1993,€including€but€not€limited€to€execution€of€twoÏdeeds€by€Robert€D.€Fulcher,€III.€[sic]€as€described€therein,Ïand€the€dismissal€of€the€litigation€described€therein,€at€theÏcosts€of€the€Plaintiff,€each€of€the€aforesaid€parties€doÏhereby€forever€release€the€other€from€any€and€all€claimsÏheretofore€arising€or€hereafter€to€accrue€as€a€result€of€anyÏand€all€business€dealings€and€transactions€among€theÏparties€existing€prior€to€the€date€of€this€agreement.(§(3)$¤¤Ý ƒ7ÿ!ÝÒ°ÒÒ„°ÒÓ  ÓÑ7€܇XXdðdð7ÑÑ  ÑÔ€Xd?XXXÔÝ  Ýà ` àòòÚ  Ú0Ú  Úóó(3¯$££Ý ƒ!ÝÝ  Ý(ñ&8$¡¡Ò°ÒÒ„°ÒÑ7€ ¡XXdðXXdð7ÑÑ  ÑÔ‡ Xn>XXXÔÑTR[  AØ'ÿ Legal[  AØ'ÿ Legal AØ'ÿ Legal AØ'ÿ LegalTÑÓÓÓ  Ó øÝ ƒ"¯"ÝÝ  ÝÔ€X7+XXXÔÔ€¨_XX7+ÔÓ  Óò òÔ Ad ÔFILEDÔ€X7+X¨_ÔÐ  ÐÌMarch€9,€1999ÌÌCecil€Crowson,€Jr.ÌAppellate€Court€ClerkÔdAhÔó ó,c½¬AZ‹"Arial Regular d!" $&Cþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5(3¯$¢¢Ý ƒ!ÝÝ  Ý(#Ã$òòÚ  Ú0Ú  Úóó($$””ò òÚ  Ú1Ú  Úó ó(('÷ÿ dxdüÿP Pd'ÿÿdxdÝ ƒ7ÿ!ÝÒ°ÒÒ„°ÒÓ  ÓÑ7€܇XXdðdÈ7ÑÑ  ÑÔ€Xd?XXXÔÝ  ÝÑTR[¤ AØ'ÿ Legal3Ø' AØ'ÿ Legalÿ3Ø'TÑÑ7€܇XXdðXXdð7Ññ7ñßr€ )<,(j 8` `€€@Eô±` 8ttxP,°ð  rßñ7ñà@Ì Ì ®àIN€THE€COURT€OF€APPEALS€OF€TENNESSEEˆÐ ° Ðà@¢¢(®àAT€NASHVILLEˆÌà ` àà ¸ à€€€€______________________________________________ÌÌò òROBERT€D.€FULCHER,€III€andÐ ° Ðwife,€ELEANOR€FULCHER€andÌALLEN„FULCHER€PARTNERSHIP,Ìó óÌà ` àAppellants,Ìà ` àà ¸ àà  àà h àà À àà  àà p àDavidson€Chancery€No.€€94„1424„IÌVs.à ` àà ¸ àà  àà h àà À àà  àà p àC.A.€No.€01A01„9802„CH„00090Ð ¶  Ðò òÌR.€CHANCELLOR€ALLEN,€andÌH.€STANLEY€ALLEN,€TRUSTEE,Ìand€HARWELL„ALLEN€ÌPARTNERSHIP,€ó óÐ ¾ ÐÌà ` àAppellees.Ì____________________________________________________________________________ÌÌà@  ®àFROM€THE€DAVIDSON€COUNTY€CHANCERY€COURTˆÌà@á á ®àTHE€HONORABLE€IRVIN€H.€KILCREASE,€JR.,€CHANCELLORˆÌÌÌÌà@[["®àGail€P.€Pigg€of€NashvilleˆÌà@'®àFor€AppellantsˆÌÌà@c c ®àAlvin€L.€Harris;€Weed,€Hubbard,€Berry€&€Doughly€of€NashvilleˆÌà@II(®àFor€AppelleesˆÌÌÌÌÌÌÌà@] ] ®àñ.ñòòñ.ññ0ññ/ñAFFñ/ññ0ññ1ñò òñ1ññ2ñòòñ2ññ3ñAFFIRMED€IN€PART,€REVERSED€IN€PART€AND€ñ3ññ2ññ.ñòòñ.ññ2ññ1ññ-ñò òñ-ññ1ñREMANDEDó óóóˆÐ À($$ ÐÌà@'®àOpinion€filed:€ˆÌÌÌÌÌÌà ` àà ¸ àà  àà h àà À àà  àà p àà È àò òW.€FRANK€CRAWFORD,Ð À0,, Ðà ` àà ¸ àà  àà h àà À àà  àà p àà È àPRESIDING€JUDGE,€W..SÌÌÌÌCONCUR:ÌÌALAN€E.€HIGHERS,€JUDGEÌÌDAVID€R.€FARMER,€JUDGEó óñ4ñÐ Ò9"55 ÐÌÐ Ô;$77 Ðñ4ññ5ññ5ññ6ñÓÓñ6ññ5ñ›ÔT€Ôà ` àThis€appeal€involves€a€dispute€between€partners.€€Plaintiffs„Appellants,€RobertÏD.€Fulcher€III,€Eleanor€Fulcher,€and€Allen„Fulcher€Partnership,€appeal€the€trial€courtððsÏruling€in€favor€of€Appellees,€R.€Chancellor€Allen,€H.€Stanley€Allen,€and€Harwell„AllenÏPartnership.Ìà ` àLongtime€friends,€Robert€Fulcher€(Fulcher)€and€Chancellor€Allen€(Allen),Ïentered€into€two€partnerships€to€develop€real€estate€during€the€mid„1980's.€€TheseÏpartnerships€continued€into€the€mid„1990's€when€financial€difficulties€began€to€causeÏextreme€conflict€between€Fulcher€and€Allen.€€These€conflicts€subsequently€led€to€theÏlawsuit€upon€which€this€appeal€is€premised.Ìà ` àIn€his€complaint,€Fulcher€alleged,€among€other€things,€that€Allen€designed€andÏexecuted€a€fraudulent€scheme€to€divest€Fulcher€of€all€the€partnership€property,€thatÏAllen€converted€partnership€money€to€his€own€use,€that€Allen€could€not€beÏsubrogated€to€the€bankððs€right€of€foreclosure,€that€the€partnerships€had€not€beenÏwound€up€in€accordance€with€Tennessee€law,€and€that€the€settlement€agreementÏgranting€Allen€all€partnership€properties€was€fraudulently€obtained.€€After€a€trial€onÏthe€merits,€the€œchancellor€ruled›€in€favor€of€Allen€and€adopted€findings€of€fact€whichÏas€pertinent€state:ÌÓôÓà8 ` àà8¸ ` ü!` ü!à1.à  à.€.€.€€Chance€Allenððs€primary€occupation€isÐ °&"" Ðcommercial€real€estate€broker.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à2.à  àDefendant€H.€Stanley€Allen€(ð ðStan€Allenðð)€is€theÐ ³)%% Ðbrother€of€Chance€Allen€and,€at€all€times€material€hereto,Ïwas€a€practicing€attorney.€.€.€.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à3.à  àPlaintiff,€Robert€D.€Fulcher,€III,€is€primarilyÐ ·-)) Ðemployed€as€a€commercial€real€estate€broker.€.€.€.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à4.€à  àMr.€Fulcher€had€known€Chance€Allen€and€StanÐ º0 ,, ÐAllen€since€childhood.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à5.à  àIn€1986,€Chance€Allen€and€Mr.€Fulcher€purchasedÐ ½3 // Ða€parcel€of€undeveloped€real€property€located€near€OldÏHickory€Boulevard.€.€.€.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à6.à  àAfter€selling€off€the€most€valuable€portion€of€theÐ Á733 Ðproperty,€and€losing€a€small€portion€in€a€condemnationÏproceeding,€Mr.€Fulcher€and€Chance€Allen€were€left€withÐ Ã955 Ða€parcel€of€approximately€5.2€acres€(the€ð ðOHB€Propertyðð).Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à7.€à  àIn€1988,€Chance€Allen€and€Mr.€Fulcher€contractedÐ Æ+'' Ðto€purchase€improved€real€property€in€Nashville,ÏTennessee€known€as€the€Jackson€Business€Center€(theÏð ðJBCðð).€€The€purchase€was€closed€in€November€1988.€ÏThe€purchase€price€was€$1,250,000.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à8.à  àMr.€Fulcher€and€Mr.€Allen€purchased€the€JBC€asÐ Ì1-- Ðtenants€in€common,€€each€owning€an€undivided€50%Ïinterest.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à9.€€à  àTo€finance€their€purchase€of€the€JBC,€Chance€AllenÐ Ð5 11 Ðand€Mr.€Fulcher€took€out€a€nonrecourse€first€mortgageÏfrom€an€affiliate€of€Metropolitan€Savings€and€Loan€(ð ðMetÏFedðð)€in€the€amount€of€$1,100,000.00€(the€ð ðFirstÏMeetingðð)€and€a€recourse€second€mortgage€from€FirstÐ Ô9$55 ÐAmerican€National€Bank€(ð ðFANBðð)€in€the€amount€ofÏ$207,500.00€(the€ð ðFANB€noteðð).Ð ¸ ¤¸ ¤ ÐÌà ` àà ¸ àà  àà h à*à À àà  à*à p àà È à*Ð €Ð ÐÌà8 ` àà8¸ ` ü!` ü!à11.à  àMr.€Fulcher€and€Mr.€Allen€agreed€that€theirÐ zÊ Ðpartnership€in€the€JBC€would€be€ð ð50„50",€meaning€thatÏthey€would€share€equally€in€the€work€and€financialÏresponsibilities€for€the€building.Ð ¸ ¤¸ ¤ ÐÌà ` àà ¸ àà  àà h à*à À àà  à*à p àà È à*Ð k» ÐÌà8 ` àà8¸ ` ü!` ü!à15.à  àExcept€for€the€checkbook,€Chance€Allen€was€leftÐ eµ Ðwith€the€responsibility€for€virtually€all€other€managementÏresponsibilities€for€the€JBC.Ð ¸ ¤¸ ¤ ÐÌà ` àà ¸ àà  àà h à*à À àà  à*à p àà È à*Ð Y!© ÐÌà8 ` àà8¸ ` ü!` ü!à17.à  àBeginning€in€the€mid„€to€late€1980's,€the€real€estateÐ S#£ Ðin€Nashville€fell€upon€bad€times.€€Mr.€Fulcher€testified€thatÏit€was€a€ð ðdisaster.ððÐ ¸ ¤¸ ¤ ÐÌà ` àà ¸ àà  àà h à*à À àà  à*à p àà È à*Ð G'—"# ÐÌà8 ` àà8¸ ` ü!` ü!à23.à  àIn€addition€to€manual€labor,€Chance€AllenÐ A)‘$% Ðperformed€the€following€JBC€management€tasks:Ð ¸ ¤¸ ¤ ÐÌà ` àà ¸ àa.€€preparation€of€leases€and€amendments€to€leases;Ìà ` àà ¸ àb.€€dealing€with€vendors;Ìà ` àà ¸ àc.€€dealing€with€leasing€agents;Ìà ` àà ¸ àd.€€preparation€of€operating€statements;Ìà8 ` àà8¸ ` ü!` ü!àe.€€dealing€with€FANB€and€Met€Fed€(the€mortgageÏholders)€including€the€preparation€and€supplying€of€allÏrequested€financial€information;Ð ¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!àf.€€supplying€financial€information€to€the€accountant€forÏtax€purposes;Ð ¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!àg.€€preparation€of€financial€analyses€of€the€businessÏoperation,€the€cash€flow,€projected€rents,€etc.;Ð ¸ ¤¸ ¤ Ðà ` àà ¸ àh.€€all€business€correspondence;€and€Ìà ` àà ¸ ài.€€all€other€tasks€necessary€to€manage€the€JBC.ÌÌà8 ` àà8¸ ` ü!` ü!à24.€€à  àIn€November€1990,€Mr.€Fulcher€decided€to€sell€aÐ :^56 Ðpart€of€his€interest€in€the€JBC.€€Chance€Allen€gave€Mr.ÏFulcher€permission€to€do€so€on€the€condition€that€whoeverÏpurchased€the€interest€in€the€JBC€would€also€agree€to€joinÏin€the€personal€liability€under€the€second€mortgage€noteÏheld€by€FANB.€€Mr.€Fulcher€agreed€to€this€condition.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à25.€€à  àMr.€Fulcher€sold€a€25%€interest€in€the€JBC€to€theÐ ž î ÐLinda€Dale€Trust€(the€ð ðTrustðð)€for€$50,000.€€The€TrustÏwas€administered€by€Third€National€Bank€in€NashvilleÏ(ð ðThird€Nationalðð).€€In€selling€his€25%€interest,€Mr.ÏFulcher€did€not€require€the€Trust€to€accept€a€share€of€theÏliability€under€the€FANB€note.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à26.€à  àThrough€December€1992,€Thomas€Allen€(noÐ ‰Ù  Ðrelation€to€Chance€€Allen€or€Stan€Allen)€was€employed€inÏthe€Third€National€trust€department€and€hadÏresponsibility€for€overseeing€the€Trustððs€investment€in€theÏJBC.Ð ¸ ¤¸ ¤ ÐÌà ` àà ¸ àà  àà h à*à À àà  à*à p àà È à*Ð wÇ ÐÌÓôÓà8 ` àà8¸ ` ü!` ü!àœ29.€€In€March€of€1992,€Mr.€Fulcher,€claiming€that€thereÏwas€no€need€for€two€people€to€be€involved€with€theÏð ðminutiaeðð€of€the€JBC,€and€in€order€to€revive€hisÏcommercial€real€estate€brokerage€business,€moved€out€ofÏthe€office€he€was€occupying€at€the€JBC.€.€.€.€Prior€toÏmoving€out,€Mr.€Fulcher€had€failed€to€make€his€agreedÏupon€monthly€rental€payments€for€a€number€of€months.Ð ¸ ¤¸ ¤ ÐÌ›à8 ` àà8¸ ` ü!` ü!àœ30.›à  àAfter€Mr.€Fulcher€moved€out,€Chance€Allen€was€leftÐ Q!¡ Ðwith€the€sole€€management€responsibility€for€the€JBC.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à31.à  àEach€month,€Chance€Allen€sent€JBC€statements€ofÐ E$•  Ðoperations€to€both€Mr.€Fulcher€and€Thomas€Allen€asÏrepresentative€of€the€Trust.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à32.à  àMr.€Fulcher€did€not€read€the€JBC€statements€heÐ 5(…#$ Ðreceived€from€Chance€Allen€to€see€what€they€contained.Ð ¸ ¤¸ ¤ ÐÌà ` àà ¸ àà  àà h àà À à*à  àà p à*à È àà  à*Ð )+y&' ÐÌà8 ` àà8¸ ` ü!` ü!à35.à  àBefore€Mr.€Fulcher€moved€out€of€the€JBC,€ChanceÐ !-q() ÐAllen€and€the€Trust€asked€Mr.€Fulcher€to€enter€into€aÏwritten€partnership€agreement.€€Mr.€Fulcher€refused.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à36.à  àSubsequently,€Chance€Allen€and€Thomas€Allen€(onÐ 1a,- Ðbehalf€of€the€Trust)€agreed€that€since€Chance€Allen€wasÏdoing€all€of€the€work€at€the€JBC,€Chance€Allen€should€beÏentitled€to€a€4%€management€fee€and€to€leasingÏcommissions€on€JBC€leases€that€were€signed€through€hisÏefforts.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à37.à  àSince€Chance€Allen€owned€a€50%€interest€in€theÐ õ7E34 ÐJBC€and€the€Trust€owned€a€25%€interest,€the€agreement€toÏpay€Chance€Allen€management€fees€and€leasingÐ í9=56 Ðcommissions€was€agreed€upon€by€75%€of€the€ownershipÏinterest€in€the€JBC.Ð ¸ ¤¸ ¤ ÐÌà ` àà ¸ àà  àà h à*à À àà  à*à p àà È à*Ð ¤ô ÐÌà8 ` àà8¸ ` ü!` ü!à39.à  àChance€Allen€received€his€management€fee€inÐ œ ì ÐDecember€1992.€€The€total€fee€was€$6,842.98.€€From€thisÏamount,€Chance€Allen€deducted€rent€for€the€suite€heÏoccupied€at€the€JBC€leaving€a€net€payment€to€ChanceÏAllen€of€$1,892.98.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à40.à  àThis€management€fee€reflected€in€one€of€theÐ „Ô  Ðoperating€statements€Chance€Allen€sent€to€Mr.€Fulcher.€ÏMr.€Fulcher€did€not€raise€any€objection€to€this€fee€or€theÏleasing€commissions€taken€by€Chance€Allen€until€after€heÏfiled€the€instant€lawsuit.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à41.à  àIn€December€1992,€Chance€Allen€discovered€that€inÐ l¼ Ðexcess€of€$22,000,€which€was€a€portion€of€an€amount€thatÏhad€been€held€in€escrow€pursuant€to€the€JBC€purchaseÏagreement,€had€been€wrongfully€confiscated€by€theÏResolution€Trust€Corporation€(the€ð ðRTCðð)€when€the€RTCÏtook€over€Met€Fed.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à42.€€Under€the€terms€of€the€JBC€purchase€agreement,€thisÏescrowed€money€was€to€be€used€for€improvements€to€theÏbuilding.€€Ð ¸ ¤¸ ¤ ÐÌà ` àà ¸ àà  à*à h àà À à*à  àà p à*Ð @  ÐÌà8 ` àà8¸ ` ü!` ü!à44.€€Over€a€four€month€period,€Chance€Allen€wrote€16Ïseparate€letters€and€made€dozens€of€phone€calls€monthsÏ[sic]€in€an€attempt€to€retrieve€the€funds€confiscated€by€theÏRTC.€Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à45.€€In€December€1992,€a€$10,000€principal€payment€onÏthe€First€Mortgage€came€due.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à46.€€At€the€time€this€payment€came€due,€there€asÏapproximately€$13,000€„€$15,000€in€the€JBC€operatingÏbank€account.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à47.€€Of€this€cash€balance,€$10,700€were€tenant€deposits.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à48.à  àThus,€unless€tenant€deposits€were€used,€there€was€Ð 0P+, Ðinsufficient€funds€in€the€JBC€account€to€make€the€$10,000ÏFirst€Mortgage€payment€in€December€1992.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à49.€€Thomas€Allen€had€previously€warned€Chance€AllenÏthat€the€tenant€deposits€should€be€segregated€from€theÏoperating€funds€of€the€JBC.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à50.€€According€to€both€Thomas€Allen€and€Donald€GriffinÏof€FANB,€it€would€have€been€an€improper€businessÏpractice€to€use€tenant€deposits€to€make€the€first€mortgageÐ Ø9(56 Ðpayment.Ð ¸ ¤¸ ¤ ÐÌà ` àà ¸ àà  àà h à*à À àà  à*à p àà È à*Ð ¨ø Ðà8 ` àà8¸ ` ü!` ü!àÐ ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à53.€€The€terms€of€the€FANB€second€mortgage€note€(theÏð ðFANB€Noteðð)€called€for€monthly€interest€payments,Ïprincipal€payments€of€$2,000€per€quarter€and€a€balloonÏpayment€of€the€balance€owed€in€December€1993.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à54.€€The€first€year€after€purchasing€the€JBC€(1980),€theÏprincipal€balance€owed€on€the€FANB€Note€was€$202,500.€ÏIn€1989,€Mr.€Fulcher€and€Mr.€Allen€paid€$39,000€inÏprincipal.€€This€left€a€principal€balance€of€$163,500.Ð ¸ ¤¸ ¤ ÐÌà ` àà ¸ àà  àà h àà À à*à  àà p à*à È àà  à*Ð tÄ ÐÌà8 ` àà8¸ ` ü!` ü!à56.€€As€the€years€passed,€it€became€increasingly€obviousÏthat€the€revenues€of€the€JBC€would€not€be€high€enough€toÏpay€off€the€balance€of€the€FANB€Note€in€December€1993.€Ï.€.€.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à57.à  àThe€poor€financial€condition€of€the€JBC€and€itsÐ X¨ Ðinability€to€generate€enough€revenue€to€pay€the€debtÏservice€on€the€building€are€consistent€with€Chance€AllenððsÏtestimony€that€the€JBC€was€a€failing€enterprise€which€heÏdid€not€wish€to€support.à  àà p àÐH˜¸ ¤¸ ¤ ÐÌà ` àà ¸ àà  àà h à*à À àà  à*à p àà È à*Ð @  Ðà ` àà ¸ àÌà8 ` àà8¸ ` ü!` ü!à59.€€à  àWhen€he€visited€the€JBC€in€December€1992,€Mr.Ð 8"ˆ ÐGriffin€knew€that€the€JBC€revenues€would€not€be€sufficientÏto€pay€the€principal€balance€owed€on€the€FANB€NoteÏ($139,000)€when€it€came€due€the€following€December.€Ð ¸ ¤¸ ¤ ÐÌà ` àà ¸ àà  àà h à*à À àà  à*à p àà È à*Ð $'t"# ÐÌà8 ` àà8¸ ` ü!` ü!à61.€à  àIn€late€1992€or€early€1993,€Mr.€Griffin€and€othersÐ )l$% Ðwithin€FANB€decided€to€ð ðextract€the€relationshipððÏconcerning€the€FANB€Note€which€meant€that€FANBÏwanted€to€get€the€FANB€off€of€its€books.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à62.€à  àIt€would€have€been€in€the€borrowers€best€interest€toÐ .X)* Ðrefinance€the€FANB€Note€if€possible€and€hope€that,€overÏtime,€the€building€revenues€would€be€enough€to€pay€off€theÏFANB€Note.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à63.€€In€December€1992,€Mr.€Griffin€requested€that€bothÏChance€Allen€and€Mr.€Fulcher€supply€a€personal€financialÏstatement€to€FANB.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à64.€€Mr.€Fulcherððs€personal€financial€statement€showedÏthat€his€net€worth€had€dropped€to€zero.Ð ¸ ¤¸ ¤ ÐÌà ` àà ¸ àà  àà h à*à À àà  à*à p àà È à*Ð Ø9(56 Їà8 ` àà8¸ ` ü!` ü!à72.€€In€January€1993,€FANB€classified€its€second€mortgageÏloan€on€the€JBC€and€turned€that€loan€over€to€SamuelÏBallesteros€in€the€ð ðSpecial€Assetsðð€department€of€FANB.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à73.à  àMr.€Ballesteros€wrote€to€both€Chance€Allen€and€Mr.Ð  ð ÐFulcher€à h àrequesting€a€meeting.М ì¸ ¤¸ ¤ Ðà ` àà ¸ àà  àÌà8 ` àà8¸ ` ü!` ü!à74.€€Mr.€Fulcher€and€Mr.€Ballesteros€met€œon›€February€24,Ï1993,€and€discussed€his€personal€note€and€the€FANBÏNote.€€Mr.€Fulcher€told€Mr.€Ballesteros€that€he€could€notÏpay€his€$25,000€personal€note€which€was€then€in€default.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à75.€€Mr.€Ballesteros€met€with€Chance€Allen€the€followingÏday.€€At€that€meeting,€Mr.€Ballesteros€began€by€tellingÏChance€Allen€that€Mr.€Fulcherððs€default€on€his€personalÏnote€was€a€ð ðcross„defaultðð€on€the€FANB€Note.€€This€wasÏthe€first€time€Chance€Allen€was€aware€that€Mr.€FulcherÏhad€a€personal€note€with€FANB€or€that€it€was€in€default.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à76.à  àMr.€Ballesteros€discussed€with€Chance€Allen€how€toÐ d´ Ðpay€the€FANB€note.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à77.€€After€his€meeting€with€Mr.€Ballesteros,€Chance€AllenÏimmediately€contacted€Mr.€Fulcher€and€Thomas€Allen€andÏrequested€that€they€would€contribute€to€purchasing€theÏFANB€Note.€€Mr.€Fulcher€told€Chance€Allen,€ð ðI€am€not€aÏplayer,ðð€meaning€that€he€did€not€have€the€financial€abilityÏto€pay€anything€toward€the€FANB€Note.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à78.à  àMr.€Fulcher€had€the€same€opportunity€to€purchaseÐ