ÿWPCÌ+ E# ÖUNá %/ 0 (5w@]4± 1mÀ 0¶- 0Dã 0c'U:Š 0JÄLZU:b 0Tœ 0^ð 0@N D3Ž 0hÁ B) 0rF 0|¸ 0†4 0º AQJ Æ› 0Da 0D¥ D/é B 1u5 0dªU>U*LB)vDCŸ AMâ/ò7Ø)'Z(‚æ•!v~{$vÓù%˜HP LaserJet 4SiHPPCL5MS,ü,,,,,ü0nL,Î(ÖÃ9 Z ‹6Times New Roman RegularX($¡¡ ¹TºTD»TU½TU¾T RÁTDÂTDÃTÓ€ÏTÒT§aö"xúÿÿú, ú3|xÒT #,e37=CIQYag­­1.a.i.(1)(a)(i)1)a)(f(2ª$¤¤Ý ƒ!ÝÝ  ÝÓ  ÓÔ€X–šXXXÔÔ€ôIäôXX–šÔà  àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  Úóó(;³º$´´Ô2,eÔÚ  Ú0Ú  Ú.Ô3  Ôà0  à, øð AZ"Arial Regular2 ÿÿ0Indent1Ô2ÔÔ3  ÔC:\OFFICE\WPWIN\TEMPLATE\STANDARD.WPT, øð AZ‹"Arial Regular2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô("ÿÿ$££Ò  ÒÒ  Ò$$$$'ÿÿdxd26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô d2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô*+ ,-Cþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5(3¯$¢¢Ý ƒ!ÝÝ  Ý($$””ò òÚ  Ú1Ú  Úó ó..'÷ÿ dxdüÿP Pd#%&'( ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)P ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ< Œ 9p`(&Times New Roman< Œ 9p`(Arial% Line 7 d99997Border 1dd* :Cþÿ << Gÿÿ þÝ ƒ!ÝÔ€7ÔÝ  ÝÝ ƒ+"ÝÝ  ÝÔ€8ÔÔ€8ÔÓ  ÓÔ YYY ÔFILEDÔ€8XÔÌÌò òSeptember€08,€1997ÌÌCecil€Crowson,€Jr.ÌÔ€8ôÔAppellate€Court€Clerkó ó èÝ ƒ!ÝÑ#€d#ÑÔ€7ÔÝ  ÝÝ ƒ $ÝÓ  ÓÔ€8ÔÔ€8ôÔà àòòÚ  ÚÚ  ÚóóÝ  ÝRegarding€the€sale€or€other€disposition€of€the€collateral,€section€9„504€further€provides€that:ÌÌà8 àà8 àSale€or€other€disposition€may€be€as€a€unit€or€in€parcels€and€at€any€time€andÏplace€and€on€any€terms€but€every€aspect€of€the€disposition€including€theÏmethod,€manner,€time,€place€and€terms€must€be€commerciallyÏreasonable.€€Unless€collateral€is€perishable€or€threatens€to€declineÏspeedily€in€value€or€is€of€a€type€customarily€sold€on€a€recognized€market,Ïreasonable€notification€of€the€time€and€place€of€any€public€sale€orÏreasonable€notification€of€the€time€after€which€any€private€sale€or€otherÏintended€disposition€is€to€be€made€shall€be€sent€by€the€secured€party€toÏthe€debtor,€if€he€has€not€signed€after€default€a€statement€renouncing€orÏmodifying€his€right€to€notification€of€sale.€€In€the€case€of€consumer€goodsÏno€other€notification€need€be€sent.€€In€other€cases€notification€shall€beÏsent€to€any€other€secured€party€from€whom€the€secured€party€hasÏreceived...€written€notice€of€a€claim€of€an€interest€in€the€collateral.€€TheÏsecured€party€may€buy€at€any€public€sale€and€if€the€collateral€is€of€a€typeÏcustomarily€sold€in€a€recognized€market€or€is€of€a€type€which€is€the€subjectÏof€widely€distributed€standard€price€quotations€he€may€buy€at€private€sale.ÌÌT.C.A.€ðð47„9„504(3)€(1992).Ì ÎÝ ƒ!ÝÑ#€d#ÑÔ€7ÔÝ  ÝÝ ƒ $ÝÓ  ÓÔ€8ÔÔ€8ôÔà àòòÚ  ÚÚ  ÚóóÝ  ÝThat€section€provides€thatÌÌà8 àà8 àà àIn€any€other€case€involving€consumer€goods€or€any€otherÏcollateral€a€secured€party€in€possession€may,€after€default,€propose€toÏretain€the€collateral€in€satisfaction€of€the€obligation.€€Written€notice€of€suchÏproposal€shall€be€sent€to€the€debtor€if€he€has€not€signed€after€default€aÏstatement€renouncing€or€modifying€his€rights€under€this€subsection.€€InÏthe€case€of€consumer€goods€no€other€notice€need€be€given.€€In€otherÏcases€notice€shall€be€sent€to€any€other€secured€party€from€whom€theÏsecured€party€has€received...€written€notice€of€a€claim€of€an€interest€inÏthe€collateral.€€If€the€secured€party€receives€objection€in€writing€from€aÏperson€entitled€to€receive€notification€within€twenty„one(21)€days€afterÏthe€notice€was€sent,€the€secured€party€must€dispose€of€the€collateralÏunder€ðð47„9„504.€€In€the€absence€of€such€written€objection€the€securedÏparty€may€retain€the€collateral€in€satisfaction€of€the€debtorððs€obligation.ÌÌT.C.A.€ðð47„9„505(2)€(1992).Ì Ý ƒ!ÝÑ#€d#ÑÔ€7ÔÝ  ÝÝ ƒ $ÝÓ  ÓÔ€8ÔÔ€8ôÔà àòòÚ  ÚÚ  ÚóóÝ  ÝNeither€Burnettððs€appellate€brief€nor€his€counter€complaint€cite€section€9„505(2).€Ì PÝ ƒ!ÝÑ#€d#ÑÔ€7ÔÝ  ÝÝ ƒ $ÝÓ  ÓÔ€8ÔÔ€8ôÔà àòòÚ  ÚÚ  ÚóóÝ  ÝAs€pertinent,€rule€53.04(2)€provides€that:ÌÌà8 àà8 àWithin€ten(10)€days€after€being€served€with€notice€of€the€filing€of€theÏ[masterððs]€report,€any€party€may€serve€written€objections€thereto€upon€theÏother€parties.€€Application€to€the€court€for€action€upon€the€report€andÏupon€objections€thereto€shall€be€by€motion€and€upon€notice€asÏprescribed€in€Rule6.04.ÌÌT.R.C.P.€53.04(2).Ì Ý ƒ!ÝÑ#€d#ÑÔ€7ÔÝ  ÝÝ ƒ $ÝÓ  ÓÔ€8ÔÔ€8ôÔà àòòÚ  ÚÚ  ÚóóÝ  ÝAs€presented,€the€Plaintiffsðð€claim€for€lost€profits€belongs€to€Redwing,€not€Haraway.€€òòSeeóóÏòòHaddenv.€City€of€Gatlinburgóó,€746€S.W.2d€687,€689€(Tenn.€1988)€(holding€that€sole€shareholder€ofÏcorporation€may€not€bring€suit€individually€to€right€wrong€done€to€corporation;€action€must€be€brought€byÏcorporation).Ì ÜÝ ƒ!ÝÑ#€d#ÑÔ€7ÔÝ  ÝÝ ƒ $ÝÓ  ÓÔ€8ÔÔ€8ôÔà àòòÚ  ÚÚ  ÚóóÝ  ÝIn€any€event,€we€note€that€Redwing€may€have€been€a€necessary€party€to€this€action.€€òòSeeóó€òòCitizensÏReal€Estate€&€Loan€Co.v.€Mountain€States€Dev.€Corp.óó,€633€S.W.2d€763,€766€(Tenn.€App.€1981)Ï(concluding€that€all€parties€claiming€title€to€subject€property€were€necessary€parties€to€lawsuit);€T.R.C.P.Ï19.01;€òòsee€alsoóó€òòJapan€Petroleum€Co.v.€Ashland€Oil,€Inc.óó,€456€F.€Supp.€831,€836€n.8€(D.C.€Del.€1978)Ï(noting€that€corporation€generally€is€indispensable€party€in€any€action€affecting€its€rights€and€liabilities).ÌPtPtHHÚ(ÿáÿâùFG(üHHÚ(d'hStyl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑGenevaÑÑ ÑÒ  h HD: Geneva ÒÒ  h HD: Geneva ÒÝ ƒ!ÝÔ . ÔÔ€7ÔÝ  ÝÑ  ÑÓ  ÓÓ ` p›XÓÔ€8ÔÑ7€XXdìXXdð7ÑÑ\R AØ'\Ñ›Þ ÞÌà@ àò òIN€THE€COURT€OF€APPEALS€OF€TENNESSEEÌà@ àWESTERN€SECTION€AT€JACKSONÌÌ̜ـ*ÙßR€;<:A1-j|_C` Å `€€@ÿRß›COY€N.€HARAWAY€andà àà àà à)ÌREDWING€TECHNICAL€SYSTEMS,à à)ÌINC.,à àà àà àà àà àà à)€€Ìà àà àà àà àà àà à)Ìà àà àó óPlaintiffs/Appellants,à àò ò)€€Shelby€Chancery€No.€101852„3€R.D.Ìà àà àà àà àà àà à)ÌVS.à àà àà àà àà àà à)€€Appeal€No.€02A01„9508„CH„00179Ìà àà àà àà àà àà à)ÌWILLIAM€C.€BURNETT,à àà àà à)Ìà àà àà àà àà àà à)Ìà àà àó óDefendant/Appellee.à àò ò)ó óÌÌÌà@ àAPPEAL€FROM€THE€CHANCERY€COURT€OF€SHELBY€COUNTYÌà@ àAT€MEMPHIS,€TENNESSEEÌà@ àTHE€HONORABLE€D.€J.€ALISSANDRATOS,€CHANCELLORÌÌÌÌÌÌò òRICHARD€L.€WINCHESTERó óÌMemphis,€TennesseeÌAttorney€for€AppellantsÌÌÌò òFELIX€H.€BEAN,€IIIÌó óMemphis,€TennesseeÌAttorney€for€AppelleeÌÌÌÌÌò òAFFIRMED€IN€PART,€REVERSED€IN€PART€ÌAND€REMANDEDÌÌÌÌÌÌÌÌÌÌÌó óà àà àà àà àà àà àà àà àà àò òALAN€E.€HIGHERS,€J.ÌÌÌÌÌCONCUR:ÌÌDAVID€R.€FARMER,€J.ÌÌWILLIAM€H.€INMAN,€Sr.€J.ó óœà àÌÌÑ7€·.XXdðXXdì7ÑÓÓà àPlaintiffs€Coy€N.€Haraway€and€Redwing€Technical€Systems,€Inc.,€appeal€the€trialÏcourtððs€final€judgment€which€determined€that€Haraway€was€required€to€pay€$72,636.30Ïto€redeem€collateral€in€the€possession€of€Defendant€William€C.€Burnett€and€whichÏdismissed€Redwing€from€this€litigation.€€For€the€reasons€hereinafter€stated,€we€modifyÏin€part,€affirm€in€part,€and€reverse€in€part€the€trial€courtððs€judgment,€and€we€remand€forÏfurther€proceedings.ÌÌÔ&  Ôòòà@ àò òóóI.€€FACTUAL€BACKGROUNDó óÌà àIn€December€1989,€Haraway€and€Burnett€entered€into€a€purchase/securityÏÔ'  Ôagreement€whereby€Haraway€agreed€to€purchase€from€Burnett€1,000€shares€of€stockÏin€Redwing€Technical€Systems,€Inc.,€plus€certain€patents,€for€a€total€purchase€price€ofÏ$35,000.€€The€1,000€shares€of€Redwing€stock€represented€100%€of€the€stock€issued€byÏRedwing.€€Haraway€agreed€to€pay€Burnett€the€$35,000€purchase€price€according€to€theÏfollowing€schedule:ÌÓÓà8 àà8 àà à(a)à àHaraway€shall€pay€Burnett€50%€of€the€firstÏ$40,000.00€of€net€sales€collected€by€Redwing€(after€dealerÍdiscount€and€sales€commissions)€until€such€time€as€BurnettÏhas€been€paid€the€total€sum€of€$20,000.00.ÌÌà8 àà8 àà à(b)à àThereafter,€Haraway€shall€pay€Burnett€25%€ofÏthe€next€$60,000.00€of€net€sales€collected€by€Redwing€(afterÏdealer€discount€and€sales€commissions)€until€such€time€asÏBurnett€shall€have€been€paid€the€balance€of€$15,000.00Ïdue€him.ÌÌà8 àà8 àà à(c)à àPayment€of€the€above€sums€shall€be€made€byÏHaraway€to€Burnett€by€the€tenth€of€the€month€followingÏreceipt€by€Redwing.ÌÌà8 àà8 àà à(d)à àHaraway€shall€have€the€option,€but€not€theÏobligation,€to€pay€Burnett€the€balance€of€the€$35,000€dueÏhim€at€any€time.ÌÌÓÓIn€addition€to€the€$35,000€purchase€price,€Haraway€agreed€to€pay€Burnett€royalties€onÏRedwingððs€sales€of€dust€control€nozzles€in€the€amount€of€ten€percent(10%)€ofÏRedwingððs€net€sales.€€The€agreement€provided€that€Harawayððs€obligation€to€payÏroyalties€would€cease€upon€the€payment€of€the€entire€$35,000€purchase€price.€ÌÌà àTo€secure€the€payment€of€the€$35,000€purchase€price,€Haraway€granted€toÏBurnett€a€security€interest€in€the€stock€and€patents.€€In€the€event€of€Harawayððs€default,Ïthe€agreement€afforded€Burnett€all€of€the€rights€and€remedies€of€a€secured€party€underÏTennesseeððs€version€of€the€Uniform€Commercial€Code(UCC).€In€connection€with€theÏpurchase/security€agreement,€Haraway€executed€an€irrevocable€stock€power€which,€inÏthe€event€of€Harawayððs€default€under€the€agreement,€assigned€all€of€HarawayððsÏinterest€in€the€stock€to€Burnett€and€authorized€Burnett€to€sell,€assign,€or€transfer€theÏstock€to€a€third€party.€€After€executing€the€agreement,€Haraway€became€RedwingððsÏpresident€and€sole€shareholder.€ÌÌà àIn€the€years€following€execution€of€the€purchase/security€agreement,€HarawayÏfailed€to€remit€timely€payments€to€Burnett€as€required€by€the€agreement.€€On€July16,Ï1992,€therefore,€Burnett€notified€Haraway€by€certified€mail€that€Haraway€was€in€defaultÏunder€the€agreement€and€that,€unless€Haraway€made€payment€of€all€amounts€due€andÏowing€under€the€agreement,€plus€interest,€within€ten€days,€Burnett€would€exercise€hisÏright€pursuant€to€the€UCC€to€take€immediate€possession€of€the€collateral.€ÌÌà àA€dispute€arose€between€Haraway€and€Burnett€as€to€the€correct€amount€dueÏunder€the€purchase/security€agreement.€€Haraway€offered€to€pay€Burnett€$48,273€toÏredeem€the€collateral,€but€Burnett€refused€this€amount€as€being€unacceptable.€€ByÏletter€dated€August3,€1992,€Burnett€informed€Haraway€that€he€was€repudiating€theÏpurchase/security€agreement€and€that€he€was€reasserting€his€ownership€of€theÏcollateral,€the€stock€and€patents.€€The€stock€certificate€already€was€in€BurnettððsÏpossession.€€In€addition€to€exercising€his€ownership€rights€with€regard€to€the€stock,ÏBurnett,€through€his€agent,€Douglas€Reeves,€proceeded€to€seize€control€andÏpossession€of€the€patent€documents€and€€Redwingððs€other€assets,€including€its€shopÏequipment€and€inventory.€€Burnett€then€caused€the€assets€to€be€removed€to€Montana.€ÌÌÔ&  Ôòòà@ àò òóóII.€€PROCEDURAL€HISTORYó óÌà àOn€August24,€1992,€Haraway€and€Redwing€filed€this€action€against€BurnettÏÔ'  Ôseeking€injunctive€and€other€relief.€€Specifically,€the€complaint€sought€an€injunctionÏ(1)restraining€Burnett€from€interfering€with€Redwingððs€business€operations;Í(2)ordering€Burnett€to€return€Redwingððs€shop€equipment€and€inventory;€(3)andÏordering€Burnett€to€return€all€stock€certificates€and€patent€documents.€€The€complaintÏalso€sought€damages€for€Burnettððs€repudiation€of€the€purchase/security€agreement€andÏhis€interference€with€Redwingððs€business€activities.€€Asserting€that€he€remained€ready,Ïwilling,€and€able€to€fully€perform€his€obligations€pursuant€to€the€agreement,€HarawayÏdeposited€the€sum€of€$48,273€with€the€trial€court.€€Haraway€obtained€these€funds€fromÏRedwing.€ÌÌà àIn€September€1992,€Burnett,€a€Montana€resident,€filed€a€notice€of€removal€in€theÏUnited€States€District€Court€for€the€Western€District€of€Tennessee.€€The€federal€districtÏcourt€remanded€the€case€to€the€trial€court€in€December€1992€because€the€amount€inÏcontroversy€was€ð ðinsufficient€to€meet€the€$50,000€jurisdictional€minimum€for€removal€ofÏan€action€based€upon€diversity€of€citizenship.ðð€€The€federal€courtððs€order€of€remandÏwas€not€filed€in€the€trial€court€until€June€1993.€ÌÌà àMeanwhile,€in€December€1992,€Burnett€filed€a€bankruptcy€petition€in€Montana.€ÏBurnett€then€filed€an€adversary€proceeding€against€Haraway€in€the€bankruptcy€courtÏbased€on€Harawayððs€breach€of€the€purchase/security€agreement.€€Haraway€respondedÏby€filing€a€motion€for€mandatory€abstention.€€The€United€States€District€Court€for€theÏDistrict€of€Montana€granted€Harawayððs€motion€and€transferred€the€adversaryÏproceeding€to€the€trial€court€in€April€1993.ÌÌà àAfter€the€case€was€remanded€to€the€trial€court,€Burnett€answered€the€PlaintiffsððÏcomplaint€and€asserted€counterclaims€against€Haraway€for€breach€of€contract,Ïfraudulent€misrepresentation,€and€lack€of€good€faith€and€fair€dealing.€€€BurnettððsÏcounter€complaint€also€demanded€an€audited€accounting€of€Redwingððs€financialÏrecords.€ÌÌà àIn€July€1993,€the€trial€court€entered€an€order€which€(1)enjoined€Burnett€fromÏinterfering€with€Redwingððs€business€operations;€(2)ordered€Burnett€to€return€allÏinventory,€equipment,€and€other€assets€or€property€seized€from€Redwing;€andÏ(3)ordered€Burnett€to€account€for€an€account€receivable€collected€by€Burnett€on€behalfÏof€Redwing.€ÌÌà àIn€March€1994,€the€trial€court€referred€this€cause€to€a€special€master€toÏdetermine€the€following€issues:€€(1)the€total€amount€owed€to€Burnett€under€theÏpurchase/security€agreement;€and€(2)the€total€amount€of€damages,€if€any,€dueÏRedwing€and/or€Haraway€for€business€torts€allegedly€committed€by€Burnett€and/or€hisÏagents.€ÌÌà àAfter€conducting€a€hearing€on€March24,€1994,€the€master€issued€a€reportÏdetermining€that€Haraway€owed€Burnett€the€sum€of€$34,361€under€theÏpurchase/security€agreement.€€This€amount€included€the€$35,000€purchase€price€plusÏ$15,649€in€royalties€due€under€the€agreement,€less€a€$2,000€payment€previouslyÏmade€by€Haraway€and€$14,288€for€the€Redwing€account€receivable€intercepted€byÍBurnett.€€Later€in€his€report,€the€master€reduced€the€total€amount€owed€to€$29,861Ïbased€on€Burnettððs€failure€to€return€a€nozzle€worth€$4,500€to€Redwing.€€As€for€theÏPlaintiffsðð€claim€for€damages€for€Burnettððs€alleged€business€torts,€the€masterÏdetermined€that€the€Plaintiffs€were€not€entitled€to€lost€profits€based€on€the€masterððsÏfindings€that€Harawayððs€prior€tender€was€insufficient€to€cure€the€default€and€thatÏð ðBurnett€acted€properly€pursuant€to€[Tennessee€Code€Annotated€sections€47„9„501Ïand€47„9„503].ðð€€In€making€these€findings,€the€master€apparently€approved€of€theÏprocedure€whereby€Burnett€exercised€ð ðthe€Irrevocable€Stock€Power€thus€becomingÏowner€of€the€stock€of€Redwing,€Inc.,€and€as€sole€shareholder€took€possession€of€theÏassets€of€the€corporation€and€removed€them€to€Montana.ðð€In€light€of€this€determination,Ïthe€master€made€no€finding€as€to€the€amount€of€Redwingððs€lost€profits.€€At€the€hearing,Ïhowever,€the€Plaintiffs€presented€a€statement€of€income€showing€that,€in€the€yearÏpreceding€Burnettððs€seizure€and€possession€of€Redwingððs€assets,€Redwing€averaged€aÏmonthly€net€income€of€$3,069.67.€€During€the€ten€months€following€Burnettððs€seizure€ofÏthe€assets,€Redwing€averaged€a€net€loss€of€$601.60€per€month.€€Thus,€the€PlaintiffsÏsought€to€prove€that€Redwing€lost€profits€of€$36,712.70€for€the€ten„month€period€inÏwhich€Redwingððs€assets€remained€in€Burnettððs€possession.ÌÌà àThe€trial€court€subsequently€entered€an€order€adopting€and€modifying€theÏmasterððs€report.€€In€its€order,€the€trial€court€found€that€Haraway€materially€defaultedÏunder€the€purchase/security€agreement€and€that€Burnett€properly€exercised€theÏirrevocable€stock€power,€thereby€effectively€becoming€the€owner€of€Redwing.€€The€trialÏcourt€modified€the€masterððs€report€by€determining€that€Haraway€owed€Burnett€$48,659Íunder€the€purchase/security€agreement€rather€than€$29,861€as€found€by€the€master.€ÏThe€trial€court€reasoned€that,€inasmuch€as€the€parties€agreed€that€the€$4,500€nozzleÏand€the€$14,288€account€receivable€were€assets€of€Redwing,€these€amounts€were€notÏproperly€subject€to€set„off€by€Haraway.€€By€ð ðfurther€implication,ðð€the€trial€court€thenÏdismissed€Redwing€as€a€party€plaintiff€from€this€action.€€The€trial€courtððs€dismissal€ofÏRedwing€apparently€was€based€on€the€courtððs€finding€that€Burnett,€and€not€Haraway,Ïwas€the€owner€of€Redwing.€ÌÌà àFollowing€motions€by€the€parties,€the€trial€court€entered€an€additional€orderÏruling€that€the€collateral€pledged€by€Haraway€was€the€property€of€Burnett,€but€grantingÏHarawayððs€motion€to€redeem€the€collateral.€€The€trial€court€then€referred€the€case€backÏto€the€master€to€determine€the€following€issues:€€(1)the€nature€of€the€collateral€pledgedÏto€Burnett€by€Haraway;€(2)the€expenses€reasonably€incurred€by€Burnett€in€retaking,Ïholding,€and€preparing€the€collateral€for€disposition;€and€(3)the€amount€required€forÏHaraway€to€redeem€the€collateral.€€Burnett€filed€a€written€objection€to€HarawayððsÏredemption€of€the€collateral€on€the€ground€that€the€collateral€previously€had€beenÏtransferred€to€Burnett€pursuant€to€the€irrevocable€stock€power.€ÌÌà àAfter€conducting€a€second€hearing€on€January25,€1995,€the€master€issued€aÏreport€determining€that,€per€the€partiesðð€stipulation,€the€collateral€pledged€was€1,000Ïshares€of€Redwing€stock€and€six€patents.€€The€master€determined€that€Burnett€incurredÏexpenses€of€$11,569.30€in€retaking,€holding,€and€preparing€the€collateral€forÏdisposition.€€This€total€included€the€$8,209.50€cost€of€moving€Redwingððs€assets€fromÍMemphis€to€Montana€and€back,€the€$2,950€cost€of€storing€the€assets€while€in€Montana,Ïand€the€$483€cost€of€certain€utilities€and€rent€which€Burnett€initially€was€required€to€payÏin€order€to€obtain€access€to€the€assets.€€At€the€hearing,€Burnett€also€soughtÏreimbursement€for€$57,734€in€travel€expenses€incurred€by€Burnett€and€for€$122,608.20Ïin€fees€charged€by€Douglas€Reeves.€€The€master€found€that€Burnett€had€not€met€hisÏburden€of€proof€in€delineating€these€expenses€because€Burnettððs€travel€expensesÏð ðwere€not€expenses€actually€incurred€but€were€based€on€IRS€allowancesðð€andÏbecause€ð ðthe€contract€with€Reeves€was€initially€to€run€the€business€and€includedÏmonthly€charges€for€doing€so.ðð€€As€found€by€the€master,€the€purpose€of€the€contractÏbetween€Reeves€and€Burnett€was€for€Reeves€to€assist€Burnett€ð ðin€the€lawsuit€and€to€beÏin€charge€of€the€operation€of€Redwingððs€business€on€an...€as€needed€basis€toÏformulate€policies€and€[to€administer]€said€matters€in€all€respects.ðð€€Finally,€the€masterÏdetermined€the€cost€of€redemption€to€be€$53,838.30.€€This€amount€included€theÏ$29,861€balance€due€on€the€debt€as€previously€found€by€the€master,€the€$11,569.30€inÏexpenses€as€found€by€the€master€at€the€second€hearing,€and€an€additional€$12,408€inÏunpaid€royalties.€ÌÌà àBased€on€the€masterððs€second€report,€the€trial€court€entered€a€final€judgmentÏawarding€Burnett€the€sum€of€$53,838.30.€€The€judgment€directed€Burnett,€upon€receiptÏof€this€sum,€to€return€the€Redwing€stock€certificate€to€Haraway€and€to€file€a€UCC„3Ïrelease€evidencing€Burnettððs€receipt€of€the€payment€and€his€release€of€any€securityÏinterest€held€in€the€patents.€€The€judgment€additionally€directed€Haraway€to€pay€$300Ïto€Burnett€as€civil€contempt€damages.€€As€for€Burnettððs€counter€complaint,€the€trial€courtÍdenied€recovery€based€on€the€courtððs€finding€that€Burnett€had€ð ðfailed€to€demonstrateÏany€actionable€damages.ðð€ÌÌà àThe€master€later€filed€an€amended€report€in€which€he€determined€the€cost€ofÏredemption€to€be€$72,636.30.€€This€amendment€was€necessary€because€the€masterððsÏsecond€report€failed€to€reflect€that€the€trial€court€previously€modified€the€masterððs€initialÏreport€to€provide€that€the€balance€due€on€the€debt€was€$48,659€and€not€$29,861.€€TheÏamended€redemption€amount,€therefore,€included€the€$48,659€balance€due€on€theÏdebt,€$11,569.30€in€expenses,€and€$12,408€in€royalties.€€The€trial€court€entered€anÏorder€modifying€its€final€judgment€in€accordance€with€the€masterððs€amended€report.€€AsÏmodified,€the€trial€courtððs€final€judgment€also€ordered€Haraway€to€reimburse€BurnettÏ$99.75€for€one„half€the€cost€of€transcribing€the€masterððs€second€hearing.€€The€trial€courtÏsubsequently€denied€the€Plaintiffsðð€motion€to€alter€or€amend€the€final€judgment,€as€wellÏas€other€motions,€and€this€appeal€followed.€ÌÌà àOn€appeal,€the€Plaintiffs€raise€the€following€issues€for€this€courtððs€review:ÌÓÓà8 àà8 àà à1.à àDid€the€Special€Master€and€the€Trial€Court€errÏin€calculating€the€amount€which€Plaintiff€Haraway€wasÏrequired€to€pay€Defendant€to€redeem€his€collateral?ÌÌà8 àà8 àà à2.à àDid€the€Special€Master€and€the€Trial€Court€errÏin€failing€to€apply€T.C.A.€ðð47„9„506€to€calculate€this€sum?ÌÌà8 àà8 àà à3.à àDid€the€Trial€Court€err€in€dismissing€Plaintiff,ÏRedwing€Technical€Systems,€Inc.€from€this€litigation?ÌÌà8 àà8 àà à4.à àDid€the€Special€Master€and€the€Trial€Court€errÏin€failing€to€award€Plaintiff€Redwing€Technical€Systems,€Inc.Ïa€judgment€against€Defendant€Burnett€for€the€amount€of€theÍRedwing€receivable€intercepted€by€Burnett€($14,288.00)Ïand€the€value€of€the€grain€nozzle€taken€and€not€returnedÏ($4,500.00)?ÌÌà8 àà8 àà à5.à àDid€the€Special€Master€and€the€Trial€Court€errÏin€determining€that€Defendant€Burnett€ð ðacted€[properly]ððÏwhen€he€confiscated€property€of€Redwing€TechnicalÏSystems,€Inc.€which€was€not€part€of€the€collateral€pledged€toÏsecure€Mr.€Harawayððs€debt€to€Mr.€Burnett?ÌÌà8 àà8 àà à6.à àDid€the€Special€Master€and€the€Trial€Court€errÏin€not€awarding€Redwing€Technical€Systems,€Inc.€its€[lost]Ïprofits€for€the€period€of€time€that€it€was€out€of€business€as€aÏresult€of€the€confiscation€of€its€equipment€and€inventory?€ÌÓÓÌà àOn€cross€appeal,€Burnett€also€has€raised€several€issues:ÌÓÓà8 àà8 àà à1.à àDo€the€Plaintiffððs€Complaint,€subsequentÏpleadings€and€weight€of€the€evidence€support€theÏproposition€that€he€is€entitled€to€seek€redemption€of€theÏcollateral?ÌÌà8 àà8 àà à2.à àWere€the€interpled€funds€($48,273.00),€whichÏwere€deposited€into€the€court€simultaneously€with€the€filingÏof€this€cause,€the€property€of€Plaintiff€Haraway€and,€is€heÏproperly€and€lawfully€entitled€to€apply€these€funds€to€theÏamount€required€to€redeem€the€collateral?ÌÌà8 àà8 àà à3.à àDo€the€Special€Masterððs€calculations€take€intoÏaccount€all€sums€to€which€Defendant€Burnett€is€entitled...?ÌÌà8 àà8 àà à4.à àHas€Defendant€Burnett€been€fully€andÏadequately€compensated€for€the€egregious€conduct€ofÏPlaintiff€Haraway€in€connection€with€the€prosecution€of€thisÏcause?€ÌÌÓÓÌÔ&  Ôòòà@ àò òóóIII.€€HARAWAYððS€RIGHT€TO€REDEEM€THE€COLLATERALó óÌà àAs€an€initial€matter,€we€find€it€necessary€to€address€Burnettððs€contention€thatÏÔ'  ÔHaraway€was€not€entitled€to€redeem€the€collateral.€€Section€9„506€of€the€UCC€governsÏHarawayððs€right€of€redemption:ÌÓÓà8 àà8 àà àò ò47„9„506.€€Debtorððs€right€to€redeemÏcollateral.„„ó ó€At€any€time€before€the€secured€party€hasÏdisposed€of€collateral€or€entered€into€a€contract€for€itsÏdisposition€under€ðð47„9„504€or€before€the€obligation€hasÏbeen€discharged€under€ðð47„9„505(2)€the€debtor€or€anyÏother€secured€party€may€unless€otherwise€agreed€in€writingÏafter€default€redeem€the€collateral€by€tendering€fulfillment€ofÏall€obligations€secured€by€the€collateral€as€well€as€theÏexpenses€reasonably€incurred€by€the€secured€party€inÏretaking,€holding€and€preparing€the€collateral€forÏdisposition,€in€arranging€for€the€sale,€and€to€the€extentÏprovided€in€the€agreement€and€not€prohibited€by€law,€hisÏreasonable€attorneysðð€fees€and€legal€expenses.ÌÌÓÓT.C.A.€ðð47„9„506€(1992).€€Provided€he€made€a€valid€tender€under€this€section,Ïtherefore,€Haraway€was€entitled€to€redeem€the€collateral€unless€(1)Burnett€hadÏdisposed€of€the€collateral€or€entered€into€a€contract€for€disposition€of€the€collateralÏunder€section€9„504,€or€(2)Burnett€had€retained€the€collateral€in€satisfaction€ofÏHarawayððs€obligation€pursuant€to€section€9„505(2).ÌÌà àOn€cross€appeal,€Burnett€contends€that€Haraway€was€precluded€fromÏredeeming€the€collateral€because€Harawayððs€pleadings€did€not€request€redemptionÏand€because€Burnett€already€had€disposed€of€the€collateral€before€Haraway€made€aÏvalid€tender€pursuant€to€section€9„506.€€We€conclude€that€both€of€these€contentions€areÏwithout€merit€and€that€the€trial€court€properly€allowed€Haraway€to€redeem€theÏcollateral.ÌÌà àWe€first€reject€Burnettððs€contention€that€the€trial€court€improperly€grantedÏredemption€based€on€Harawayððs€failure€to€request€this€remedy€in€his€pleadings.€€TheÏTennessee€Rules€of€Civil€Procedure€direct€the€courts€of€this€state€to€liberally€construeÏthe€partiesðð€pleadings€so€as€to€do€substantial€justice.€€òòSeeóó€T.R.C.P.€8.06.€€HarawayððsÏcomplaint€requested€return€of€the€collateral€and,€in€connection€therewith,€HarawayÏdeposited€$48,273€with€the€trial€court,€an€amount€that€he€contended€fulfilled€hisÏobligations€under€the€purchase/security€agreement.€€Based€on€the€pleadings,Ïtherefore,€the€trial€court€acted€properly€in€granting€Haraway€the€remedy€of€redemption.€ÏòòSeeóó€òòLamonsv.€Chamberlainóó,€909€S.W.2d€795,€800€(Tenn.€App.€1993)€(holding€thatÏrescission€was€not€precluded€as€possible€remedy€where€plaintiffððs€complaint€averredÏthat€she€had€lost€her€entire€investment€and€prayed€for€return€of€down€payment).ÌÌà àWe€also€reject€Burnettððs€contention€that€Haraway€was€precluded€fromÏredeeming€the€collateral€on€the€ground€that€Burnett€already€had€disposed€of€theÏcollateral€by€assigning€the€stock€to€himself€pursuant€to€the€irrevocable€stock€powerÏexecuted€by€Haraway.€€Upon€the€debtorððs€default,€the€UCC€gives€the€secured€creditorÏthree€options:Ìà8 àà8 àÓÓFirst,€[the€secured€creditor]€may€reduce€the€claim€toÏjudgment,€foreclose€or€otherwise€enforce€the€securityÏinterest€by€judicial€procedures€pursuant€to€T.C.A.Ïðð47„9„501(1),€(2),€(3),€(4),€(5).€€Second,€[the€securedÏcreditor]€may€repossess€and€sell€the€collateral€inÏsatisfaction€of€the€obligation.€€T.C.A.€ðð47„9„504(3),....€ÏFinally,€the€creditor€may€propose€to€retain€the€collateral€inÏsatisfaction€of€the€obligation.€€T.C.A.€ðð47„9„505(2).ÌÌÓÓòòAmerican€City€Bankv.€Western€Auto€Supply€Co.óó,€631€S.W.2d€410,€419„20€(Tenn.€App.Ï1981)€(footnotes€omitted).ÌÌà àRegarding€the€second€option,€section€9„504€of€the€UCC€provides,€in€part:ÌÓÓà8 àà8 àà àò ò47„9„504.€€Secured€partyððs€right€to€disposeÏof€collateral€after€default„„€Effect€of€disposition.„„ó óÏ(1)A€secured€party€after€default€may€sell,€lease€orÏotherwise€dispose€of€any€or€all€of€the€collateral€in€its€thenÏcondition€or€following€any€commercially€reasonableÏpreparation€or€processing....ÌÌà8 àà8 àà à....ÌÌà8 àà8 àà à(3)à àDisposition€of€the€collateral€may€be€by€publicÏor€private€proceedings€and€may€be€made€by€way€of€one(1)Ïor€more€contracts....ÌÌà8 àà8 àà à(4)à àWhen€collateral€is€disposed€of€by€a€securedÏparty€after€default,€the€disposition€transfers€to€a€purchaserÏfor€value€all€of€the€debtorððs€rights€therein,€discharges€theÏsecurity€interest€under€which€it€is€made€and€any€securityÏinterest€or€lien€subordinate€thereto....ÌÌÓÓT.C.A.€ðð47„9„504€(1992).× ƒ= ××  ×€€ÌÌà àAuthorities€generally€agree€that€a€secured€creditorððs€transfer€of€collateral,€suchÏas€stock,€to€the€creditorððs€own€name€does€not€constitute€a€disposition€under€sectionÏ9„504€of€the€UCC.€€òòSeeóó€òòFletcherv.€Cobuzzióó,€499€F.€Supp.€694,€698„99€(W.D.€Pa.Ï1980);€òòSports€Courts€of€Omaha,€Ltd.v.€Broweróó,€534€N.W.2d€317,€322€(Neb.€1995);€òòseeÏalsoóó€òòIFG€Leasing€Co.v.€Gordonóó,€776€P.2d€607,€613€(Utah€1989);€RonaldA.€Anderson,ÏòòAnderson€on€the€Uniform€Commercial€Codeóó€ðð9„504:47,€at€425€(3d€ed.€1994€&€Supp.Ï1996).€€Within€the€context€of€the€UCC,€the€term€ð ðdispositionðð€connotes€some€transfer€forÏvalue€of€the€creditorððs€rights€to€the€collateral€and€does€not€contemplate€a€creditorððsÏtransfer€of€title€to€himself.€€òòFletcherv.€Cobuzzióó,€499€F.€Supp.€at€698;€T.C.A.Ïðð47„9„504(4)€(1992).€€In€accordance€with€these€authorities,€we€conclude€that€BurnettÏdid€not€effect€a€disposition€of€the€Redwing€stock€within€the€meaning€of€section€9„504Íwhen€he€transferred€title€of€the€stock€to€himself€and,€thus,€that€Haraway€was€notÏprecluded€from€redeeming€the€stock€pursuant€to€section€9„506.ÌÌà àBurnett€cites€òòComerv.€Green€Tree€Acceptance,€Inc.óó,€858€P.2d€560€(Wyo.€1993),Ïfor€the€proposition€that,€by€transferring€the€collateral€into€his€own€name,€BurnettÏdisposed€of€the€collateral€within€the€meaning€of€section€9„506.€€In€òòComeróó,€however,€theÏcourt€concluded€that€the€debtor€was€precluded€from€redeeming€the€collateral€becauseÏthe€secured€creditor€had€retained€the€collateral€in€satisfaction€of€the€debt€pursuant€toÏsection€9„505(2)€of€the€UCC,€not€because€the€creditor€had€disposed€of€the€collateralÏwithin€the€meaning€of€section€9„504.€€òòComerv.€Green€Tree€Acceptanceóó,€858€P.2d€atÏ563„64.€€We€conclude€that€òòComeróó€has€no€application€to€this€case€because€hereÏBurnett€claims€to€be€proceeding€pursuant€to€section€9„504€of€the€UCC,€not€sectionÏ9„505(2).ÌÌà àWe€note€that,€after€transferring€title€to€himself,€Burnett€could€have€chosen€theÏthird€available€option€by€electing€to€retain€the€collateral€in€satisfaction€of€HarawayððsÏobligation€pursuant€to€section€9„505(2).€€òòSeeóó€òòAmerican€City€Bankv.€Western€AutoÏSupplyóó,€631€S.W.2d€at€419;€T.C.A.€ðð47„9„505(2)€(1992);× ƒ> ××  ×€òòsee€alsoóó€òòFletcherv.ÍCobuzzióó,€499€F.€Supp.€at€699;€òòIFG€Leasing€Co.v.€Gordonóó,€776€P.2d€at€612;€òòInreÏSzelegaóó,€469€N.Y.S.2d€271,€272„73€(App.€Div.€1983).€€In€proceeding€pursuant€toÏsection€9„505(2),€however,€a€secured€creditor€must€give€the€debtor€written€notice€of€hisÏintent€to€retain€the€collateral€in€satisfaction€of€the€debt€and€must€forfeit€his€right€to€aÏdeficiency€judgment.€€òòSeeóó€T.C.A.€ðð47„9„505(2)€(1992);€òòsee€alsoóó€òòComerv.€Green€TreeÏAcceptanceóó,€858€P.2d€at€565;€òòAnderson€on€the€UCCóó€ðððð9„505:4,€9„505:30,€at€656,Ï671.€€In€the€present€case,€Burnett€never€has€contended€that€he€was€proceedingÏpursuant€to€section€9„505(2),× ƒ? ××  ×€nor€has€he€provided€Haraway€with€written€notice€of€hisÏintent€to€retain€the€collateral€in€satisfaction€of€Harawayððs€obligation€under€theÏpurchase/security€agreement.€€Accordingly,€we€need€not€address€the€potentialÏapplication€of€section€9„505(2)€to€this€case.ÌÌÔ&  Ôòòà@ àò òóóIV.€€HARAWAYððS€COST€OF€REDEMPTIONó óÌà àHaving€determined€that€Haraway€was€not€precluded€from€redeeming€theÏcollateral€Ô'  Ôby€virtue€of€Burnettððs€disposition€of€the€collateral,€we€next€address€the€issueÏof€the€appropriate€redemption€amount.€€The€final€redemption€amount,€as€calculated€byÏthe€trial€court,€was€$72,636.30,€which€included€the€$48,659€debt€as€determined€by€theÏtrial€court€when€it€modified€and€adopted€the€masterððs€initial€report,€$11,569.30€inÍexpenses,€and€$12,408€in€additional€royalties.€€We€agree€with€the€Plaintiffsðð€contentionÏthat€the€$11,569.30€in€expenses€was€improperly€included€in€the€cost€of€redemptionÏbecause€these€expenses€are€not€authorized€by€the€UCC.ÌÌà àIn€order€to€redeem€the€collateral,€Haraway€was€required€to€pay,€in€addition€toÏthe€underlying€obligation€secured€by€the€collateral,€ð ðthe€expenses€reasonably€incurredÏby€the€secured€party€[Burnett]€in€retaking,€holding€and€preparing€the€collateral€forÏdispositionðð€and€in€arranging€for€its€sale.€€T.C.A.€ðð47„9„506€(1992).€€The€expensesÏclaimed€by€Burnett€and€awarded€by€the€trial€court,€however,€were€incurred€by€BurnettÏwhen€he€seized€the€corporate€assets€of€Redwing,€including€its€equipment€andÏinventory.€€These€corporate€assets€did€not€constitute€a€part€of€the€purchase/securityÏagreementððs€collateral€and,€thus,€section€9„506€did€not€authorize€Burnett€to€recoverÏexpenses€associated€with€taking€or€holding€this€property.€€In€fact,€at€the€January€1995Ïhearing€before€the€master,€Burnett€acknowledged€that€he€incurred€no€expenses€inÏretaking€the€collateral€because€the€stock€certificate€already€was€in€his€possession€priorÏto€Harawayððs€default€and€because€Burnett€had€perfected€his€security€interest€in€theÏpatents€by€filing€a€UCC„1€financing€statement.€€Accordingly,€we€modify€the€trial€courtððsÏfinal€judgment€to€reflect€that€Harawayððs€cost€of€redemption€is€$61,067€and€notÏ$72,636.30.ÌÌà àIn€making€this€modification,€we€reject€Burnettððs€contention€on€cross€appeal€thatÏthe€trial€court€erred€in€failing€to€award€him€additional€expenses€for€retaking,€holding,Ïand€preparing€the€collateral€for€disposition.€€Regarding€Burnettððs€claimed€travelÍexpenses,€the€master€found€that€Burnett€did€not€prove€his€actual€expenses€but€insteadÏbased€the€amount€of€his€claim€on€the€maximum€deductions€allowed€by€the€IRS.€€In€lightÏof€this€finding,€we€affirm€the€trial€courtððs€decision€to€deny€Burnettððs€claim€for€$57,734€inÏtravel€expenses.€€We€also€affirm€the€trial€courtððs€decision€to€deny€Burnettððs€claim€forÏ$122,608.20€in€fees€allegedly€owed€to€Douglas€Reeves.€€As€found€by€the€master,€theÏpurpose€of€the€agreement€between€Burnett€and€Reeves€was€for€Reeves€to€assistÏBurnett€in€this€lawsuit€and€to€be€in€charge€of€the€operation€of€Redwingððs€business€onÏan€as„needed€basis.€€The€record€fails€to€indicate,€however,€how€Reevesðð€servicesÏrelated€to€ð ðretaking,€holding€and€preparing€the€collateral€for€disposition.ðð€€T.C.A.Ïðð47„9„506€(1992).€€Although€Reeves€apparently€assisted€in€seizing€the€corporateÏassets€of€Redwing,€as€we€previously€have€held,€these€assets€did€not€constitute€a€partÏof€the€purchase/security€agreementððs€collateral.€€We€also€note€that€most€of€ReevesððÏinvoices€cover€the€period€after€July€1993,€when€the€trial€court€entered€its€orderÏenjoining€Burnett€from€interfering€with€Redwingððs€business€operations€and€orderingÏBurnett€to€return€Redwingððs€assets.€ÌÌà àWe€likewise€reject€Burnettððs€contention€that€the€masterððs€initial€reportÏunderstated€the€amounts€owed€to€Burnett€pursuant€to€the€purchase/securityÏagreement.€€€An€appellant€waives€an€issue€for€purposes€of€appellate€review€when€heÏfails€to€make€the€appropriate€objection€at€the€trial€court€level.€€òòBarnhillv.€Barnhillóó,€826ÏS.W.2d€443,€458€(Tenn.€App.€1991).€€In€this€regard,€the€appellant€has€the€duty€ð ðtoÏprepare€a€record€which€conveys€a€fair,€accurate€and€complete€account€of€whatÏtranspired€in€the€trial€court€with€respect€to€the€issues€which€form€the€basis€of€theÍappeal.ðð€€òòStatev.€Bolingóó,€840€S.W.2d€944,€951€(Tenn.€Crim.€App.€1992);€T.R.A.P.€24(b).€ÏAbsent€a€transcript€of€the€March€1994€hearing€at€which€the€masterððs€alleged€errorÏoccurred,€we€are€unable€to€determine€whether€Burnett€raised€this€issue€below.€ÏMoreover,€we€note€that€the€record€fails€to€reflect€whether€Burnett€formally€objected€toÏthe€masterððs€initial€report€as€permitted€by€the€Tennessee€Rules€of€Civil€Procedure.€ÏòòSeeóó€T.R.C.P.€53.04(2).× ƒ@ ××  ×€€Under€these€circumstances,€Burnett€has€waived€this€issue€forÏappellate€review.ÌÌÔ&  Ôòòà8 àà@ àò òóóV.€€BURNETTððS€REPOSSESSION€OF€REDWINGððSÏEQUIPMENT€AND€INVENTORYó óÌà àOn€appeal,€the€Plaintiffs€additionally€contend€that€the€trial€court€erred€inÏdeterminingÔ'  Ô€that€Burnett€acted€properly€under€the€UCC€when€Burnett€confiscatedÏRedwingððs€equipment€and€inventory.€€The€Plaintiffs€argue€that,€contrary€to€the€trialÏcourtððs€finding,€Burnett€was€not€authorized€to€repossess€Redwingððs€equipment€andÏinventory€because€this€property€was€not€part€of€the€collateral€covered€by€theÏpurchase/security€agreement.ÌÌà àWe€agree.€€Under€the€UCC,€upon€the€debtorððs€default,€the€secured€creditorððsÏright€to€take€possession€of€the€debtorððs€property€extends€only€to€the€collateral.€€T.C.A.Ïðð47„9„503€(1992).€€A€secured€creditor€wrongfully€repossesses€property€when€theÏcreditor€takes€possession€of€property€that€is€not€subject€to€the€security€interest.€ÏòòAnderson€on€the€UCCóó€ðð9„503:64,€at€327.€€In€addition€to€asserting€his€rights€to€theÏcollateral€in€this€case,€the€stock€and€patents,€Burnett€proceeded€to€repossessÏRedwingððs€equipment€and€inventory.€€Burnett€was€not€authorized€to€repossess€thisÏproperty€because€Redwingððs€equipment€and€inventory€was€not€the€subject€of€BurnettððsÏsecurity€interest.€€We€conclude,€therefore,€that€the€trial€court€erred€in€ruling€that€BurnettÏacted€properly€in€repossessing€Redwingððs€property.ÌÌà àAt€the€second€hearing€before€the€master,€Burnett€asserted€that€he€wasÏauthorized€to€repossess€Redwingððs€equipment€and€inventory€pursuant€to€sectionÏ9„501€of€the€UCC.€€As€pertinent,€that€section€provides€that:ÌÓÓà8 àà8 àà àWhen€a€debtor€is€in€default€under€a€securityÏagreement,€a€secured€party€has€the€rights€and€remediesÏprovided€in€this€part€and€except€as€limited€by€subsection(3)Ïthose€provided€in€the€security€agreement.€€He€may€reduceÏhis€claim€to€judgment,€foreclose€or€otherwise€enforce€theÏsecurity€interest€by€any€available€judicial€procedure.€€If€theÏcollateral€is€documents€the€secured€party€may€proceedÏeither€as€to€the€documents€or€as€to€the€goods€coveredÏthereby....ÌÌÓÓT.C.A.€ðð47„9„501(1)€(1992).€€Thus,€this€section€authorizes€the€secured€party,€in€theÏevent€the€collateral€is€a€document,€to€proceed€either€as€to€the€document€or€as€to€theÏgoods€covered€thereby.€€In€citing€this€UCC€section€at€the€hearing€below,€BurnettÏapparently€was€taking€the€position€that€the€Redwing€stock€certificate€was€a€documentÍand€that€Redwingððs€equipment€and€inventory€were€the€goods€covered€by€suchÏdocument.€ÌÌà àThis€argument€is€without€merit.€€Under€Article9€(Chapter9)€of€the€UCC,€the€termÏð ðdocumentðð€refers€to€a€document€of€title€as€defined€in€the€UCCððs€section€of€generalÏdefinitions.€€T.C.A.€ðð47„9„105€(1992).€€The€UCC€generally€defines€a€document€of€titleÏto€include€aÌÓÓà8 àà8 àbill€of€lading,€dock€warrant,€dock€receipt,€warehouse€receiptÏor€order€for€the€delivery€of€goods,€and€also€any€otherÏdocument€which€in€the€regular€course€of€business€orÏfinancing€is€treated€as€adequately€evidencing€that€theÏperson€in€possession€of€it€is€entitled€to€receive,€hold€andÏdispose€of€the€document€and€the€goods€it€covers.€€To€be€aÏdocument€of€title€a€document€must€purport€to€be€issued€byÏor€addressed€to€a€bailee€and€purport€to€cover€goods€in€theÏbaileeððs€possession€which€are€either€identified€or€areÏfungible€portions€of€an€identified€mass.ÌÌÓÓT.C.A.€ðð47„1„201(15)€(1992).€€The€stock€certificate€held€by€Burnett€as€collateral€in€thisÏcase€does€not€fall€within€the€foregoing€definition.€€A€stock€certificate€is€not€a€documentÏwhich€in€the€regular€course€of€business€evidences€the€possessorððs€entitlement€toÏidentifiable€goods;€rather,€a€stock€certificate€is€an€instrument€which€represents€a€share,Ïparticipation,€or€other€interest€in€the€issuerððs€property€or€enterprise.€€òòSeeóó€T.C.A.Ïðððð47„8„102(1),€47„9„105(1)(i)€(1992);€òòsee€alsoóó€òòFDIC€v.€Caliendoóó,€802€F.€Supp.€575,Ï578€(D.N.H.€1992).€€òòSee€generallyóó€òòAnderson€on€the€UCCóó€ðððð1„201:231€to€:244,€atÏ633„37€(discussing€what€is€and€is€not€a€document€of€title);€òòsee€alsoóó€òòHintonv.€Carneyóó,Ï250€S.W.2d€364,€365€(Tenn.€1952)€(noting€that€ownership€of€all€capital€stock€ofÏcorporation€does€not€make€shareholder€owner€of€corporationððs€property);€òòaccordóóÍòòVellav.€National€Pizza€Co.óó,€No.02A01„9311„CV„00254,€1994€WL€618606,€at€*3Ï(Tenn.€App.€Nov.9,€1994).ÌÌà àOn€cross€appeal,€Burnett€also€asserts€that€he€was€entitled€to€repossessÏRedwingððs€equipment€and€inventory€because€he€became€the€owner€of€RedwingÏpursuant€to€the€irrevocable€stock€power€executed€by€Haraway€in€connection€with€theÏpurchase/security€agreement.€€In€executing€the€stock€power,€Haraway€agreed€that,€inÏthe€event€of€his€default€under€the€purchase/security€agreement,€all€of€his€interest€in€theÏstock€would€be€transferred€to€Burnett.ÌÌà àAgain,€we€find€Burnettððs€argument€to€be€without€merit.€€In€matters€concerning€theÏpartiesðð€rights,€obligations,€and€remedies,€the€provisions€of€Article9€apply€whether€titleÏto€the€collateral€is€in€the€secured€creditor€or€in€the€debtor.€€T.C.A.€ðð47„9„202€(1992).€ÏThus,€even€if€title€to€the€Redwing€stock€was€transferred€to€Burnettððs€name€after€default,Ïthis€transfer€did€not€affect€the€partiesðð€rights,€obligations,€and€remedies€under€Article9.€ÏFurther,€to€the€extent€that€the€provisions€of€Article9€grant€certain€rights€to€the€debtorÏand€impose€certain€duties€on€the€secured€creditor€in€the€event€of€default,€theseÏprovisions€may€not€be€waived€or€varied€by€the€parties.€€T.C.A.€ðð47„9„501(3)€(1992).€ÏThese€provisions€include€the€UCC€sections€dealing€with€the€secured€creditorððsÏdisposition€of€the€collateral€(T.C.A.€ðððð47„9„504(3),€47„9„505(1)),€the€secured€creditorððsÏretention€of€the€collateral€in€satisfaction€of€the€debtorððs€obligation€(T.C.A.Ïðð47„9„505(2)),€the€debtorððs€redemption€of€the€collateral€(T.C.A.€ðð47„9„506),€and€theÍsecured€creditorððs€liability€for€failure€to€comply€with€Article9's€default€provisions€(T.C.A.Ïðð47„9„507(1)).ÌÌà àIn€applying€these€principles,€this€court€previously€has€held€that€a€stock€pledgeÏagreement€which€purports€to€vest€the€stock€in€the€secured€creditor€upon€the€debtorððsÏdefault€is€invalid;€such€an€agreement€neither€waives€the€debtorððs€rights€under€Article9Ïnor€terminates€the€debtorððs€rights€of€ownership€in€the€stock.€€òòTrimblev.€Sonitrol€ofÏMemphis,€Inc.óó,€723€S.W.2d€633,€638„39€(Tenn.€App.€1986);€òòaccordóó€òòData€Sec.,€Inc.v.ÏPlessmanóó,€510€N.W.2d€361,€365„66€(Neb.€Ct.€App.€1993);€18€C.J.S.€òòCorporationsóóÏðð264€(1990).€In€òòTrimbleóó,€the€language€of€the€stock€pledge€agreement€clearly€providedÏthat,€upon€default,€the€stock€would€vest€in€the€secured€creditor.€€òòTrimblev.€Sonitrolóó,€723ÏS.W.2d€at€638.€€The€pledge€specifically€included€all€ð ðvoting€and€other€shareholderÏrights.ðð€€òòIdóó.ÌÌ›à àIn€commenting€on€the€effect€of€such€an€agreement,€one€authority€explained:ÌÓÓà8 àà8 àà àThe€mere€fact€that€the€debtor€defaults€does€notÏterminate€the€debtorððs€ownership€in€the€collateral.€€TheÏœconcept›€of€strict€foreclosure€that€was€followed€by€the€lawÏcenturies€ago€does€not€apply,€with€the€consequence€thatÏdefault€does€not€in€itself€extinguish€the€debtorððs€rights€butÏmerely€satisfies€a€condition€precedent€to€the€creditorððs€rightÏto€invoke€certain€remedies,€one€of€which€is€a€right€to€sell€theÏcollateral€which€will€effect€the€termination€of€the€debtorððsÏownership.€€Thus,€on€the€default€of€the€debtor€the€creditorÏhas€the€right€to€repossess€and€dispose€of€the€collateral€butÏdoes€not€acquire€title€automatically.ÌÌà8 àà8 àà àA€provision€in€an€agreement€covering€the€pledge€ofÏstock€that€upon€default€ð ðvoting€and€other€shareholderððsÏrightsðð€were€to€vest€in€the€pledgee€is€invalid€and€does€notÍdeprive€the€pledgor€of€standing€to€attack€the€commercialÏreasonableness€of€the€disposition€of€the€collateral.ÌÌÓÓœòòAnderson›€on€the€UCCóó€ðð9„501:42,€at€234€(citing€òòTrimblev.€Sonitrol€of€Memphis,€Inc.óó,Ï723€S.W.2d€633€(Tenn.€App.€1986))€(footnotes€omitted);€òòsee€alsoóó€T.C.A.Ïðð48„16„203(d)€(1988)€(providing€that,€for€purposes€of€assigning€liability,€pledgor,€andÏnot€pledgee,€remains€holder€of€shares€in€corporation€pledged€as€collateral€security).ÌÌà àAnother€authority€has€succinctly€described€the€effect€of€the€UCCððs€defaultÏprovisions€on€title€to€the€collateral:ÌÓÓà8 àà8 àThe€default€provisions€in€the€UCC€do€not€automaticallyÏtransfer€title€to€the€secured€party€upon€default....€€TheÏprovisions€found€in€the€UCC€grant€broad€rights€to€theÏsecured€party€to€repossess€the€security€in€order€to€sell€orÏotherwise€dispose€of€that€property€upon€default.€€When€theÏcreditor€repossesses€the€secured€property,€however,€itÏobtains€only€the€right€of€possession,€not€title....€€Under€theÏUCC,€default€does€not€divest€a€debtor€of€all€right€andÏinterest€in€the€secured€property,€nor€is€the€secured€party,€theÏcreditor,€vested€with€the€unlimited€Ô&  Ôpower€to€deal€with€theÏproperty€as€it€œwishes.̛̜ÓÓòòComer›v.€Green€Tree€Acceptance,€Inc.óó,€858€P.2d€560,€563€(Wyo.€1993)€(citationsÏomitted).Ô'  ÔÌÌà àIn€accordance€with€the€foregoing€authorities,€we€hold€that€the€irrevocable€stockÏpower€executed€by€Haraway€in€this€case€was€ineffective€to€automatically€transfer€titleÏof€the€Redwing€stock€to€Burnett€in€the€event€of€default€and,€thus,€did€not€vest€BurnettÏwith€unlimited€power€to€deal€with€Redwingððs€property€as€he€wished.€€The€stock€powerÏneither€waived€Harawayððs€rights€under€Article9€nor€divested€him€of€ownership€rights€inÍthe€stock.€€Accordingly,€contrary€to€Burnettððs€argument€on€cross€appeal,€the€stockÏpower€did€not€authorize€Burnett€to€assume€control€of€Redwing€and€to€repossess€itsÏequipment€and€inventory.ÌÌà àA€creditor€who€wrongfully€takes€possession€of€property€may€be€held€liable€forÏconversion€damages€and€for€general€damages,€such€as€lost€profits.€€€òòSeeóó€òòDavenportv.ÏChrysler€Credit€Corp.óó,€818€S.W.2d€23,€30„32€(Tenn.€App.€1991);€òòWalkerv.€AssociatesÏCommercial€Corp.óó,€673€S.W.2d€517,€521€(Tenn.€App.€1983);€òòHarris€Truck€&€TrailerÏSalesv.€Footeóó,€436€S.W.2d€460,€464€(Tenn.€App.€1968);€òòAnderson€on€the€UCCóóÏðððð9„503:64,€9„503:74,€at€327,€339;€òòsee€alsoóó€òòLance€Prods.,€Inc.v.€Commerce€UnionÏBankóó,€764€S.W.2d€207,€213€(Tenn.€App.€1988).€€At€the€initial€hearing€before€the€masterÏin€this€case,€the€Plaintiffs€sought€to€prove€that€Redwing€lost€profits€as€a€result€ofÏBurnettððs€wrongful€repossession€of€Redwingððs€assets.€€œThe›€master€denied€the€PlaintiffsððÏclaim€for€lost€profits€based,€not€on€evidentiary€grounds,€but€on€the€masterððs€finding€thatÏBurnett€acted€properly€under€the€UCC,€and€the€trial€court€adopted€this€portion€of€theÏmasterððs€report.€€œInasmuch›€as€neither€the€master€nor€the€trial€court€made€any€findingsÏwith€regard€to€the€evidence€of€lost€profits€presented€by€the€Plaintiffs,€we€remand€for€theÏtrial€court€to€reconsider€Redwingððs€claim€for€lost€profits.× ƒA ××  ×ÌÌÔ&  Ôòòà@ àò òóóVI.€€œTHE›€œTRIAL›€œCOURTððS›€œDISMISSAL›€œOF›€œREDWINGó ó›Ìà àHaving€determined€that€Redwing€may€be€entitled€to€lost€profits€for€BurnettððsÏconversion€of€its€equipment€and€inventory,€we€next€address€the€issue€of€the€trial€courtððsÏdismissal€of€Redwing€from€this€lawsuit.€€In€this€regard,€inasmuch€as€we€have€held€thatÏBurnett€did€not€become€the€owner€of€Redwing€pursuant€to€Ô'  Ôthe€irrevocable€stock€power,Ïwe€also€must€reverse€the€trial€courtððs€order€dismissing€Redwing.€€The€trial€courtÏapparently€dismissed€Redwing€based€on€the€courtððs€conclusion€that€Burnett€was€theÏowner€of€Redwing€and,€thus,€that€Haraway€had€no€authority€to€maintain€this€action€onÏbehalf€of€Redwing.€€œBecause›€Harawayððs€ownership€interest€in€Redwing€was€notÏterminated€by€Burnettððs€actions€taken€pursuant€to€the€irrevocable€stock€power,€we€holdÏthat€Haraway€was€not€precluded€from€maintaining€this€action€on€behalf€of€Redwing€onÏthis€basis.€€Other€than€his€alleged€ownership€of€Redwing€pursuant€to€the€irrevocableÏstock€power,€Burnett€has€advanced€no€other€basis€to€challenge€Harawayððs€authority,Ïas€Redwingððs€president€and€sole€shareholder,€to€bring€this€lawsuit€on€behalf€ofÏRedwing.€€òòSeeóó€òòLewis€ex€rel.€Citizens€Sav.€Bank€&€Trust€Co.€v.€Boydóó,€838€S.W.2d€215,Ï220€(Tenn.€App.€1992)€(noting€that€responsibility€for€determining€whether€corporationÏshould€pursue€judicial€remedies€for€its€injuries€falls€on€its€officers€and€directors).œ× ƒB ××  ×›ÌÌà àIn€his€initial€report,€the€master€found€that€Burnett€owed€Redwing€$14,288€for€anÏaccount€receivable€that€he€intercepted€and€$4,500€for€a€nozzle€that€he€failed€to€return.€ÍœIn›€accordance€with€these€findings,€we€conclude€that€a€judgment€in€the€amount€ofÏ$18,788€should€be€entered€in€favor€of€œRedwing.Ì›ÌÔ&  Ôà@ àò òVII.€€œREMAINING›€œISSUES›€œON›€œAPPEALó ó›Ìà àIn€light€of€the€foregoing€œanalyses,›€we€also€hold€that€the€trial€court€properlyÏpermitted€€Ô'  ÔHaraway€to€redeem€the€collateral€using€$48,273€in€funds€obtained€fromÏRedwing.€€As€we€have€held,€Harawayððs€ownership€interest€in€Redwing€was€notÏextinguished€by€Burnettððs€exercise€of€the€irrevocable€stock€power.€€Moreover,€we€noteÏthat€the€purchase/security€agreement€itself€contemplated€that€Haraway€would€useÏRedwingððs€revenues€to€pay€the€purchase€price€for€Redwing.€ÌÌà àFinally,€we€reject€Burnettððs€argument€on€cross€appeal€that€he€is€entitled€toÏadditional€damages€for€Harawayððs€ð ðegregious€conduct.ðð€€œThe›€trial€court€found€thatÏBurnett€had€ð ðfailed€to€demonstrate€any€actionable€damagesðð€on€his€œcounterclaims,›€andÏwe€conclude€that€the€evidence€does€not€preponderate€against€this€finding.€ÌÌÔ&  Ôà@ àò òVIII.€€œCONCLUSIONó ó›Ìà àThe€trial€courtððs€judgment€is€hereby€modified€to€reflect€that€Harawayððs€cost€ofÏÔ'  Ôredemption€is€$61,067€instead€of€$72,636.30.€€We€reverse€that€portion€of€the€trialÏcourtððs€judgment€dismissing€Redwing€from€this€lawsuit€and€enter€a€judgment€in€favor€ofÏRedwing€in€the€amount€of€$18,788.€€We€also€reverse€that€portion€of€the€trial€courtððsÏjudgment€denying€Redwingððs€claim€for€damages€resulting€from€Burnettððs€conversion€ofÏRedwingððs€equipment€and€inventory.€€In€connection€therewith,€this€cause€is€remandedÍfor€the€trial€court€to€reconsider€Redwingððs€claim€for€lost€profits,€and€for€any€furtherÏproceedings€consistent€with€this€opinion.€€In€all€other€respects,€the€trial€courtððsÏjudgment€is€affirmed.€€Costs€on€appeal€are€taxed€to€Burnett,€for€which€execution€mayÏissue€if€œnecessary.ÌÌÓÓà àà àà àà àà àà àà àà àòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€Ïóóà àà àà àà àà àà àà àà àHIGHERS,€J.ÌÌÌÌCONCUR:ÌÌÌÌòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€óóÌFARMER,€J.ÌÌÌÌòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€óóÌINMAN,€Sr.€J.›