ÿWPC‘8 µè¢nÊ äÑÐ%Íëû¢xð?Nijæcßߥr°Ïv@bnc>˜ÝûJ,^‚)´€i«èü³iþþÓ©ÐÀh%Zmóå P;mïÊvä¡<›ÇžGðµäÅW­²9cH[ä’·éîP¤T¯…öB çÚF¹%Îãš}¯äJ«l&¤é›cfož¸e¬äû“´)‰úµ4y‘”§pâ¸þ­Ül•í 3 Ôy/ú Ò³ð¶v!ûéÃ/ð®+È1ˆÙ¦ƒ=ç4NÓ¢†®P!”/ã® Õèž 1¢ŸkÔ[Çyé‰EËý)ÖtµãÚLrt]†y—IÞ íƒh\œ¾ÁÇR˜E¯²i^”Îñ&#º]?Y7þW ¬w(ðˈ^¤ì ‚Ø3å¡îÏj›c-Ç•/È"~aÞhåBµKPÕo«éµXRË–ôMa&¨VjÑŽbªñ—Ç' õâ?»Ý~,C‹*kÍ‹C ê-ö~,Akzœåb±žl˜ÍÏäÏ âf€+xYÏMŸ._wYÃóêHlÿN½gÜŒDú 2FW\àøÆ”pª:¨×3Z6 &ÏMÚ`´]»×\e«Š†šÂÉ|šÅ H¬,ÔV|¶6¸nò¢vL# (UN3 % 0(‡U ):¯ 0§éU$:w@Ê4  7- 0Dd §¨ þO ©MU:öæ0U:U:PLŠcÖ¦9 ߯é%û˜&U:“)LÍ)*¿!* AQà*°1+!á+z.-|3Æ©3U:o4 0D©4 Bí4 0D 5 0DN5 D/’5 BÁ5Þ5 D3à6U:7M7U:O8O8O8O8O8O8O8O8O8O8O8O8O8O8O8O8O8O8O8O8O8O8O8O8O8O8O8O8‰8˜HP LaserJet 4000 Series PCL 6HPBXLBÈÈÈÈÈÈÈÈ0nLLÎ(ÈhH  Z 6Times New Roman RegularX($¡¡, øð AZ"Arial Regular(f2Š;$¤¤Ý ƒ!ÝÝ  ÝÔ€X}ÚXXXÔÔ€ôÆôXX}ÚÔÓ  ÓÚ  Ú0Ú  Ú.€€,c½¬AZ‹"Arial Regular NîOUPQgRDSDTDUÓ€_bn~<$½¬  Ú0Ú3|xb -Ý ƒtÛ$ÝÔ€X,CXXXÔÔ€ô–êôXX,CÔÓ  ÓÚ  Ú12Ú  Ú.€€Ý  ÝSimilarly,€the€motion€to€amend€that€extended€the€time€within€which€Spectra€was€required€to€file€its€noticeÐ ° Ðof€appeal€was€expressly€filed€only€by€Spectra.€(#Ã$òòÚ  Ú0Ú  Úóó Ý ƒtÛ$ÝÔ€X,CXXXÔÔ€ô–êôXX,CÔÓ  ÓÚ  Ú11Ú  Ú.€€Ý  ÝÔ‡ô–êôôô–êÔThe€trial€courtððs€order€that€granted€summary€judgment€to€Nashoba€further€denied€a€motion€for€partialÐ ° Ðsummary€judgment€that€had€been€filed€by€Spectra.€€This€motion€for€partial€summary€judgment,€which€had€beenÏfiled€on€July€14,€1997,€was€limited€to€the€issue€of€liability€on€some€of€Spectraððs€claims.€Ô#†ô–êôôô–ê#Ô€Spectra,€however,€hasÐ @ Ðnot€raised€any€issue€on€appeal€as€to€the€trial€courtððs€denial€of€its€motion€for€partial€summary€judgment. ôÝ ƒtÛ$ÝÔ€X,CXXXÔÔ€ô–êôXX,CÔÓ  ÓÚ  Ú1Ú  Ú.€€Ý  ÝThese€ð ðfacts€as€to€which€.€.€.€there€is€no€genuine€issue€for€trialðð€are€based€upon€Nashobaððs€statement€ofÐ ° Ðmaterial€facts,€combined€with€either€Spectraððs€agreement€that€particular€facts€are€undisputed€(regardless€ofÏwhether€the€agreement€is€only€for€the€purpose€of€Nashobaððs€motion€for€summary€judgment),€or€SpectraððsÏfailure€to€demonstrate€that€particular€facts€are€disputed€by€appropriate€citation€to€the€record€(assuming€theÏfacts,€where€disputed,€were€initially€supported€by€Nashoba€by€appropriate€citation€to€the€record).€€òòSeeóó€Tòòennóó.Ð Ð  ÐR.€Còòivóó.€P.€56.03. ŸÝ ƒtÛ$ÝÔ€X,CXXXÔÔ€ô–êôXX,CÔÓ  ÓÚ  Ú5Ú  Ú.€€Ý  ÝGoodman,€however,€further€advised€McGaughey€that,€in€order€to€collect€from€Duracraft,€which€wasÐ ° Ðdependant€upon€Spectra€for€its€parts,€he€would€threaten€to€terminate€business€dealings€with€Duracraft,€andÏeven€threaten€to€perhaps€shut€down€operations€or€file€bankruptcy.€,†r‰AZ‹"Arial Regular ÜÝ ƒtÛ$ÝÔ€X,CXXXÔÔ€ô–êôXX,CÔÓ  ÓÚ  Ú4Ú  Ú.€€Ý  ÝÔ‡ô–êôôô–êÔMAC€Funding€subsequently€agreed€to€forbear€the€exercise€of€its€rights,€however,€conditioned€uponÐ ° ÐSpectraððs€ongoing€cooperation€in€disclosing€specified€information€to€MAC€Funding,€and€conditioned€uponÏSpectraððs€future€compliance€with€the€terms€of€the€leases.Ô#†ô–êôôô–ê~#Ô€,c½¬AZ‹"Arial Regular,c½¬AZ‹"Arial Regular BÝ ƒtÛ$ÝÔ€X,CXXXÔÔ€ô–êôXX,CÔÓ  ÓÚ  Ú2Ú  Ú.€€Ý  ÝAdditionally,€Spectraððs€amended€complaint€explains€that,€ð ð[a]t›€all€times€pertinent€hereto,€Cox€and€TaylorÐ ° Ðwere€stockholders,€officers,€and€directors€of€œSpectra.ð𛀜› YÝ ƒtÛ$ÝÔ€X,CXXXÔÔ€ô–êôXX,CÔÓ  ÓÚ  Ú7Ú  Ú.€€Ý  ÝSpectra€had,€however,€received€a€notice€from€Nashoba€shortly€after€Note€1392's€maturity€requestingÐ ° Ðpayment€in€full,€after€which€Cox€contacted€Ray€Mullins,€who€was€Nashobaððs€commercial€loan€officerÏresponsible€for€handling€Spectraððs€accounts.€€€Mullins€advised€Cox€that€Spectra€should€continue€to€pay€interestÏonly€on€the€outstanding€balance€of€Note€1392,€and€that€they€would€ð ðòòwork€onóóðð€getting€Loan€No.€1392€renewed.€Ð X Ð œÝ ƒtÛ$ÝÔ€X,CXXXÔÔ€ô–êôXX,CÔÓ  ÓÚ  Ú14Ú  Ú.€€Ý  ÝòòSeeóó€òòsupraóó€note€3. Ý ƒtÛ$ÝÔ€X,CXXXÔÔ€ô–êôXX,CÔÓ  ÓÚ  Ú3Ú  Ú.€€Ý  ÝÔ‡ô–êôôô–êÔNote€1392€sets€forth,€in€pertinent€part,€the€following:Ð ° ÐÌà8  àð ðIðð€includes€each€borrower€....Ð Ð Ð  Ðà8  àð ðYou€means€the€lender€....Ð Ð Ð  Ðà@KK'ìà.€.€.€.ˆÌà8  àPAYMENTS:€€I€agree€to€pay€this€note€as€follows:Ð Ð Ð  Ðà8  àà0` Ð Ð àInterest:€€I€agree€to€pay€accrued€interest€on€demand,€but€if€no€demand€is€madeÏmonthly€beginning€September€23,€1993Ð ` Ð ` Ð  Ðà8  àà0` Ð Ð àPrincipal:€€I€agree€to€pay€the€principal€on€demand,€but€if€no€demand€is€made€than€onÏAugust€23,€1994Ð ` Ð ` Ð  Ðà@KK'ìà.€.€.€.ˆÌà8  àNo€modification€of€this€agreement€may€be€made€without€your€express€written€consent.€€TimeÏis€of€the€essence€in€this€agreement.Ð Ð Ð  Ðà@KK'ìà.€.€.€.ˆÌà8  àSET„OFF:€€I€agree€that€you€may€set€off€any€amount€due€and€payable€under€this€note€againstÏany€right€I€have€to€received€money€from€you.Ð Ð Ð  Ðà8  àð ðRight€to€receive€money€from€youðð€means:Ð Ð Ð  Ðà8  àà0` Ð Ð à(1)€any€deposit€account€balance€I€have€with€you;Ð ` Ð ` Ð  Ðà@KK'ìà.€.€.€.ˆÌà8  àDEFAULT:€€I€will€be€in€default€if€any€one€or€more€of€the€following€occur:€(1)€I€fail€to€make€aÏpayment€on€time€or€in€the€amount€due;€...€(5)€I€...€become€insolvent€(either€because€myÏliabilities€exceed€my€assets€or€I€am€unable€to€pay€my€debts€as€they€become€due);€...€(7)€I€doÏor€fail€to€do€something€which€causes€you€to€believe€that€you€will€have€difficulty€collecting€theÏamount€I€owe€you;€....Ð Ð Ð  Ðà8  àREMEDIES:€€If€I€am€in€default€on€this€not€you€have,€but€are€not€limited€to,€the€followingÏremedies:Ð Ð Ð  Ðà8  à€€€(1)à0` Ð Ð àYou€may€demand€immediate€payment€of€all€I€owe€you€under€this€note€(principal,Ð P Ðaccrued€unpaid€interest€and€other€accrued€charges).Ð ` Ð ` Ð  Ðà8  à€€€(2)à0` Ð Ð àYou€may€set€off€this€debt€against€any€right€I€have€to€the€payment€of€money€from€you,Ð à Ðsubject€to€the€terms€of€the€ð ðSet„Offðð€paragraph€herein.Ð ` Ð ` Ð  Ðà@KK'ìà.€.€.€.ˆÌà8  à€€€(3)à0` Ð Ð àYou€may€refuse€to€make€advances€to€me€or€allow€purchases€on€credit€by€me.Ðè8` Ð ` Ð  Ðà@KK'ìà.€.€.€.ˆÌà8  àBy€waiving€your€right€to€declare€an€event€to€be€a€default,€you€do€not€waive€your€right€to€laterÏconsider€the€event€a€default€if€it€continues€or€happens€again.Ð Ð Ð  Ðà@KK'ìà.€.€.€.ˆÌà8  àWAIVER:€€I€give€up€my€rights€to€require€you€to€do€certain€things.€€I€will€not€require€you€to:Ð Ð Ð  Ðà8  àà0` Ð Ð à(1)€demand€payment€of€amounts€due€(presentment);Ð ` Ð ` Ð  Ðà8  àà0` Ð Ð à(2)€obtain€official€certification€of€nonpayment€(protest);€orÐ ` Ð ` Ð  Ðà8  àà0` Ð Ð à(3)€give€notice€that€amounts€due€have€not€been€paid€(notice€of€dishonor).Ð ` Ð ` Ð  ÐÌÔ#†ô–êôôô–ê~#Ô ¥Ý ƒtÛ$ÝÔ€X,CXXXÔÔ€ô–êôXX,CÔÓ  ÓÚ  Ú8Ú  Ú.€€Ý  ÝòòButóó€òòcf.óó€note€7€òòsupraóó. ñÝ ƒtÛ$ÝÔ€X,CXXXÔÔ€ô–êôXX,CÔÓ  ÓÚ  Ú9Ú  Ú.€€Ý  ÝSpectra€had€been€regularly€listed€on€this€internal€monthly€ð ðwatch€listðð€beginning€December,€1993.€€ThisÐ ° Ðð ðwatch€list,ðð€which€listed€numerous€other€accounts€or€loans€aside€from€Spectraððs€indebtedness,€provided€anÏestimation€of€the€amount€that€the€bank€would€lose€if€Spectraððs€account€was€ð ðliquidatedðð€(òòi.e.óó,€it€listed€the€extentÐ @ Ðto€which€Spectraððs€indebtedness€was€not€secured€by€accounts€receivable€or€some€other€form€of€collateral).€ÏIn€December€1993,€this€loss€estimation€was€$18,900.€€€By€November,€1994,€this€loss€estimation€had€increasedÏto€$62,400.€,kû¤AZ‹"Arial RegularC:\OFFICE\WPWIN\TEMPLATE\STANDARD.WPT µÝ ƒtÛ$ÝÔ€X,CXXXÔÔ€ô–êôXX,CÔÓ  ÓÚ  Ú6Ú  Ú.€€Ý  ÝThe€fourth€executive€committee€member€was€out€of€town.€#%'()Cþÿ<< Cÿÿ ¦Ý ƒtÛ$ÝÔ€X,CXXXÔÔ€ô–êôXX,CÔÓ  ÓÚ  Ú10Ú  Ú.€€Ý  ÝòòButóó€òòcf.óó€note€7€òòsupraóó. Ý ƒtÛ$ÝÔ€X,CXXXÔÔ€ô–êôXX,CÔÓ  ÓÚ  Ú13Ú  Ú.€€Ý  ÝÔ_ÔSpectra€also€attempts€to€rely€upon€Tenn.€Code€Ann.€section€47„1„208€for€its€assertion€that€NashobaÐ ° Ðviolated€its€statutory€obligations.€€We€summarily€reject€Spectraððs€reliance€upon€this€statute,€however,€becauseÏit€is€inapposite€to€the€facts€and€circumstances€of€this€case,€as€it€applies€to€acceleration€provisions€and€thereÏwas€no€acceleration€of€the€debt€in€this€case. pÝ ƒtÛ$ÝÔ€X,CXXXÔÔ€ô–êôXX,CÔÓ  ÓÚ  Ú15Ú  Ú.€€Ý  ÝÔ‡$ô–êôôô–êÔOftentimes,€where€a€debtor€begins€to€experience€financial€difficulty€and€a€business€loan€ð ðwork„outððÐ ° Ðsituation€arises,€lenders€may€be€placed€in€the€somewhat€difficult€position€of€either€facing€harsh€economicÏconsequences€for€failing€to€aid€a€financially€troubled€debtor,€or€facing€potential€lender€liability€claims€if€theyÏdo€become€involved.€€If€a€lender€does€attempt€to€assist€a€troubled€debtor€and€is€unsuccessful,€debtorsÏfrequently€look€to€the€lender€as€a€ð ðdeep€pocketðð€from€which€they€can€attempt€to€recover€their€losses€whereÏsuch€losses€in€actuality€arose€from€their€own€failed€business€ventures.€€Generally,€in€the€absence€of€fraud€ò òó óorÐ ˜è Ðoverreaching,€lenders€should€be€allowed€to€rely€upon€their€express€agreements€with€their€debtors€whileÏengaging€in€borrower€ð ðwork„outsðð€to€protect€their€own€interests.€€In€the€present€case,€it€appears€that€NashobaÏmade€repeated€efforts€to€assist€Spectra€in€financing€its€continued€business€operations,€but€that€SpectraððsÏfinancial€situation€deteriorated€to€a€point€where€Nashoba€felt€compelled€to€exercise€its€contractual€rights€andÏto€attempt€to€collect€a€portion€of€the€money€owed€to€it.Ô#†ô–êôô$ô–ê#Ô #Ñ#€iXÿÿd#уLevel 1Level 2Level 3Level 4Level 5,kû¤AZ‹"Arial Regular(3¯$¢¢Ý ƒ!ÝÝ  Ý d(3¯$££Ý ƒ!ÝÝ  Ý($$””ò òÚ  Ú1Ú  Úó ó**'÷ÿ dxdüÿP Pd øÝ ƒ%¯"ÝÝ  ÝÔ€-XxáXXXÔÔ€-¹X-XxáÔÓ  Óò òÔ Ad ÔFILEDÔ€-XxáX-¹ÔÐ  ÐÌJuly€27,€1999ÌÌCecil€Crowson,€Jr.ÌAppellate€Court€ClerkÔdAhÔó ó&&&&'ÿÿdxd,–ûyAZ‹"Arial Regular øÝ ƒ%¯"ÝÝ  ÝÔ€/XxáXXXÔÔ€/¹X/XxáÔÓ  Óò òÔ Ad ÔFILEDÔ€/XxáX/¹ÔÐ  ÐÌJuly€26,€1999ÌÌCecil€Crowson,€Jr.ÌAppellate€Court€ClerkÔdAhÔó ó,–ûyAZ‹"Arial RegularÝ ƒ!ÝÝ  ÝñbñòòñbñÔ€XxáXXXÔÑTR[¤ AØ'ÿ Legal3Ø' AØ'ÿ Legalÿ3Ø'TÑÓ  Óñbñóó›ñbñÑ7€“«XXdæXXdæ7ÑñNññMñœñMññNññQñÑ€";ÑñQññUñ›ñUññNññNññUññUññNññNññ_ññUñßr€+,<,(j 8` `€€@Eȱ` ttx0°ð árßñUññ_ññbññ_ñßr€.,<,(j 8` `€€@Eȱ` ttx0°ð árßñ_ññbññbññbññbññUñ›ñUññbññNññNññbññbññbññNñ›ñNññbññbññbññNññNññbñ›ñbññNñà@g g ìàò òIN€THE€COURT€OF€APPEALS€OF€TENNESSEEˆÌñNññbññbññNññNññbññbññNññNññbññbññNññNññbññbññNñà@bb%ìàAT€JACKSONˆÌÌñNññbññbññNññNññbññbññNññNññbññbññNññNññbññbññNññNññbñœßt€.,>.*jxŸ²` `€€@Eg` ttx0Ÿbq ’ tß›ñbññNñÌSPECTRA€PLASTICS,€INC.,€andà À à)Ð H˜ ÐJ.€GOODMAN€ASSOCIATES,€INC.,à À à)€€Ð . ~ Ðà  àà ` àà ¸ àà  àà h àà À à)Ìà  àà ` àó óPlaintiffs/Appellants,à À àò ò)€€Shelby€Circuit€No.€71878„9€T.D.Ð ú J Ðà  àà ` àà ¸ àà  àà h àà À à)ÌVS.à  àà ` àà ¸ àà  àà h àà À à)€€Appeal€No.€02A01„9805„CV„00121€Ð Æ   Ðà  àà ` àà ¸ àà  àà h àà À à)ÌNASHOBA€BANK,à ¸ àà  àà h àà À à)Ð ’â  Ðà  àà ` àà ¸ àà  àà h àà À à)Ìà  àà ` àó óDefendant/Appellee.à À àò ò)ó óÐ ^®  ÐÌÌà@þþìàAPPEAL€FROM€THE€CIRCUIT€COURT€OF€SHELBY€COUNTYˆÌà@ææ ìàAT€MEMPHIS,€TENNESSEEˆÌà@Å Å ìàTHE€HONORABLE€ROBERT€L.€CHILDERS,€JUDGEˆÌÌÌÌÌÌÌò òJOHN€E.€TOMA,€JR.Ð &v ÐNEWMAN,€FREYMAN€&€KLEIN,€P.C.Ìó óSt.€Louis,€MissouriÐ òB Ðò òJERRY€SCHATZ€Ð Ø( ÐMONYPENY,€SIMPSON,€WALKER€&€SCHATZÌó óMemphis,€TennesseeÐ ¤ô ÐAttorneys€for€AppellantsÌÌÌò òLEO€BEARMAN,€JR.Ð <#Œ" ÐEUGENE€J.€PODESTA,€JR.ÌBAKER,€DONELSON,€BEARMAN€&€CALDWELLÌó óMemphis,€TennesseeÐ î%>!% ÐAttorneys€for€AppelleeÌÌÌÌÌÌÌÌò òAFFIRMEDÐ .T). ÐÌÌÌÌó óà  àà ` àà ¸ àà  àà h àà À àà  àà p àà È àò òALAN€E.€HIGHERS,€J.Ð ‚2Ò-3 ÐÌÌÌCONCUR:ÌÌW.€FRANK€CRAWFORD,€P.J.,€W.S.ÌÌDAVID€R.€FARMER,€J.ó óñNñà  àœñOñÐ ²95; ÐñOññPñÓÓñPññOñà  àñOñSpectra›€Plastics,€Inc.€(ð ðSpectraðð)€has€appealed€from€the€trial€courtððs€grant€ofÐ ˜:è5< ÐÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑñbñÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  Ññbññ_ñÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  Ññ_ññUñÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑÑ";ÑÑ7€xáXXdæXXdæ7ÑÑ  ÑñUñsummary€judgment€to€Nashoba€Bank€(ð ðNashobaðð)€in€this€lender€liability€lawsuit.€€BasedÏupon€the€following,€we€affirm€the€trial€courtððs€grant€of€summary€judgment€to€Nashoba.ÌÌà@  ìàò òI.€€Facts€and€Procedural€Historyó óˆÐ  d ÐÌà  àThis€lender€liability€lawsuit€against€Nashoba€was€originally€commenced€on€AugustÏ14,€1995€by€Spectra,€along€with€John€E.€Goodman,€Sr.,€W.€Cooper€Sandusky,€III,€DonaldÏG.€Taylor,€and€Charles€L.€Cox,€Jr.,€based€upon€Nashobaððs€alleged€involvement€in€SpectraððsÏcollapse€on€February€17,€1995,€at€which€time€Spectraððs€business€ceased€operating.€€œOn›ÏOctober€10,€1995,€Nashoba€filed€a€motion€to€dismiss€the€individually€named€plaintiffsÏ(Goodman,€Sandusky,€Taylor,€and€Cox),€which€was€subsequently€granted€by€the€trial€courtÏ„„€subject€to€an€allowance€for€the€filing€of€an€amended€complaint€within€thirty€days.€€œThough›Ïsuch€an€amended€complaint€was€thereafter€filed€by€John€E.€Goodman,€Sr.,€Mr.€GoodmanððsÏclaims€were€later€dismissed€without€prejudice.€€œOn›€the€same€date€that€Mr.€GoodmanððsÏclaims€were€dismissed,€ð ðJ.€Goodman€&€Associates,€Inc.ðð€(ð ðJGA,€Inc.ðð)€was€ð ðjoined€as€aÏParty€Plaintiffðð€and€allowed€to€file€a€complaint.€€œJGA,›€Inc.ððs€claims€were€then€dismissed,Ïhowever,€on€February€13,€1997.€€œThe›€dismissal€of€JGA,€Inc.ððs€claims€was€not€made€to€beÏa€final€judgment€pursuant€to€Rule€54.02€at€that€time.€€œAdditionally,›€on€February€13,€1997,ÏSpectra€was€allowed€to€file€an€amended€complaint.€€œSpectraððs›€complaint,€as€amended,Ïseparately€set€forth€the€following€stated€causes€of€action:€€breach€of€contract,€breach€ofÏobligation€of€good€faith€and€fair€dealing,€tortious€interference€with€business€expectancy,Ïpromissory€misrepresentation,€conversion,€breach€of€fiduciary€obligation,€false€pretenses,Ïand€fraudulent€misrepresentation.€ÌÌà  àOn€August€8,€1997,€Nashoba€moved€for€summary€judgment.€€œIn›€accordance€withÏRule€56.03€of€the€Tennessee€Rules€of€Civil€Procedure,€Nashobaððs€motion€wasÏaccompanied€by€a€separate€ð ðstatement€of€the€material€facts€as€to€which€[Nashoba]Ïcontends€there€is€no€genuine€issue€for€trial.ðð€€œòòSeeóó›€Tòòennóó.€R.€Còòivóó.€P.€56.03.€€Thereafter,Ð 45„06 ÐSpectra€filed€its€response€to€Nashobaððs€statement€of€material€facts.€€œThe›€followingÏsummary€of€facts€(material€or€otherwise)€ð ðas€to€which€.€.€.€there€is€no€genuine€issue€forÐ Ì84: Ðtrial,ðð€stems€from€our€review€of€these€pleadings,€and€of€the€portions€of€testimony€and/orÏother€proof€within€the€record€cited€in€these€pleadings.׃×Ý ƒ #ÃÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×Ð P   ÐÌà  àNashoba€is€a€Tennessee€corporation€that€operates€as€a€commercial€bank,€with€itsÏprincipal€offices€in€Germantown,€Tennessee.€€œSpectra›€is€a€Mississippi€corporation€that€wasÏformed€in€July€of€1992,€and€its€original€shareholders€were€Charles€Cox,€Don€Taylor,€andÏHoward€Rudd,€who€each€originally€contributed€$500.œ×ƒ@×Ý ƒ #ÃÝòòÚ  Ú2Ú  ÚóóÝ  Ý×  ×›€€œSpectra›€was€in€the€business€ofÐ ° Ðmanufacturing€injection€molded€plastic€parts.€œIt›€operated€out€of€a€leased€facility€in€Arlington,ÏTennessee,€and€leased€the€equipment€needed€for€its€manufacturing€process€fromÏMitsubishi€Corporation.€ñLñœñLñÌÌà  àNashoba€and€Spectra€began€dealing€with€each€other€in€1992,€at€which€timeÏNashoba€loaned€Spectra€$50,000€for€the€purpose€of€providing€working€capital€for€theÏstartup€business.€€œOn›€August€28,€1992,€Spectra€executed€a€$100,000€promissory€note€asÏa€working€capital€line€of€credit.€€œIn›€July€of€1993,€Spectra€was€unable€to€meet€its€workingÏcapital€needs€from€ongoing€operations.€€œIn›€an€effort€to€meet€those€working€capital€needs,ÏJohn€A.€Goodman€invested€in€Spectra,€in€the€initial€amount€of€$100,000,€and€became€itsÏprincipal€shareholder€and€Chairman€of€its€Board€of€Directors.€ñLñœñLñÌÌà  àOn€or€about€August€24,€1993,€Spectra€and€Nashoba€agreed€to€increase€SpectraððsÏworking€capital€line€of€credit€at€Nashoba€to€$300,000,€and€executed€a€promissory€noteÏâ â(hereafter€referred€to€as€ð ðNote€1392"),€a€copy€of€which€was€attached€to€NashobaððsÐ Ð/ +. Ðstatement€of€material€facts,€establishing€the€same.œ×ƒ×Ý ƒ #ÃÝòòÚ  Ú3Ú  ÚóóÝ  Ý×  ×›€€œNote›€1392€provided€that€the€principalÐ ° Ðâ âbalance€was€due€on€demand,€but,€if€no€demand€is€made,€then€on€August€23,€1994.€€œThe›Ïsecurity€agreement€executed€by€Spectra€in€connection€with€Note€1392€provided,€in€part,Ïthat,€for€as€long€as€any€amount€remained€outstanding,€Spectra€would€arrange€to€direct€allÏpayments€due€on€accounts€receivable€to€a€post€office€box€for€deposit€at€Nashoba.€€œThis›Ïð ðlock€boxðð€arrangement€that€was€agreed€to€had€previously€been€explained€to€Spectra€byÏwritten€correspondence€from€Nashoba€dated€August€18,€1993,€at€which€time€NashobaÏexplained:ÌÓÓà8  àWe€would€set€up€a€post€office€box€to€which€your€customers€would€remit.€€TheÏonly€effect€on€them€would€be€that€payments€to€Spectra€...€would€be€going€toÏa€different€post€office€box.€€We€have€someone€who€goes€by€the€Post€OfficeÏtwice€a€day€to€check€for€mail€and€brings€it€directly€to€the€tellers€who€log€themÏin€a€book,€run€the€deposits€into€your€account€and€fax€you€a€copy€of€all€itemsÐ pÀ Ðin€the€mail€received.€€They€also€put€the€originals€in€the€mail€to€you€the€sameÏday.Ð Ð Ð  ÐÌÓNÓñQñœñQñÌà  àDuring€most€of€the€time€that€Spectra€was€in€business,€it€experienced€cash€flowÏdifficulties€as€a€result,€at€least€in€part,€of€undercapitalization€and€of€production€not€living€upÏto€expectations.€€œSpectraððs›€income€statements€reflect€that€it€continually€experiencedÏsignificant€monthly€losses€up€through€September,€1994,€at€which€point€Spectraððs€lossesÏfrom€operations€totaled€$662,248.€€œThough›€Spectra€finally€experienced€operating€profitsÏduring€the€months€of€October€and€November€of€1994€(collectively€totaling€$152,445),€itsÏtotal€losses€from€operations€at€the€end€of€these€months€was€still€$509,803,€after€whichÏSpectra€again€began€to€experience€monthly€losses.€€œAfter›€January€1995,€Spectraððs€totalÏlosses€from€operations€was€again€up€to€$617,053.€€œMoreover,›€between€August€1993€andÏJanuary€1995,€Spectraððs€net€worth€deteriorated€from€$76,785€to€negative€$300,286€(thoughÏa€few€incremental€changes€as€viewed€on€a€monthly€basis€were€temporary€increases€in€netÏworth).€€œAs›€of€May€27,€1994,€Spectra€ceased€paying€compensation€to€Cox,€Taylor,€andÏRudd,€who€were€corporate€officers,€until€such€time€as€Spectra€became€profitable.€€œAs›€ofÏMay€30,€1994,€Spectra€was€in€arrears€to€Olsten€Corporation€in€the€amount€of€$81,107.48Ïfor€temporary€personnel€services.€€œOver›€this€period€of€time,€Olsten€was€one€of€roughly€67Ïtrade€creditors€that€Spectra€failed€to€pay€timely.€€œBy›€April€of€1994,€Spectra€was€in€defaultÏunder€the€terms€of€its€lease€for€its€plant€facility,€and€had€requested€a€moratorium€on€rentÏpayments€due€to€its€financial€difficulties.€ñQñœñQñÌÌà  àOn€August€23,€1994,€Note€1392€became€due€and€payable,€though€Spectra€madeÏno€payment€at€that€time.€€œLater,›€however,€on€November€9,€1994,€December€7,€1994,€andÏFebruary€7,€1995,€Nashoba€debited€Spectraððs€checking€account€for€the€payment€ofÏaccrued€interest€that€remained€unpaid€by€Spectra€on€Spectraððs€indebtedness€to€Nashoba.€ÏñQñœñQñÌà  àIn€September€of€1994,€Spectra€defaulted€under€the€terms€of€its€equipment€leasesÏwith€Mitsubishi.€€œThis›€default€prompted€MAC€Funding€Corporation€(Mitsubishiððs€assigneeÏas€to€Mitsubishiððs€rights€under€the€leases)€to€notify€Spectra€that€MAC€was€exercising€itsÐ  :p59 Ðright€to€accelerate€the€entire€balance€due€on€seven€equipment€leases,€which€totaledÏ$1,652,631.40€as€of€September€22,€1994.œ×ƒ×Ý ƒ #ÃÝòòÚ  Ú4Ú  ÚóóÝ  Ý×  ×›€€œFor›€the€quarters€ending€September€30,€1994Ð à Ðand€December€31,€1994,€Spectra€was€unable€to€pay€its€federal€payroll€tax€liability€whenÏdue.€€œMoreover,›€by€the€end€of€the€quarter€ending€March€31,€1995€(òòafteróó€Spectra€ceasedÐ P   Ðbusiness€operations),€Spectraððs€federal€payroll€tax€liability€totaled€over€$110,000.€ñQñœñQñÌÌà  àOn€February€1,€1995,€John€E.€Goodman,€Chairman€of€the€Board€of€Directors€ofÏSpectra,€told€D.€W.€McGaughey,€President€of€Nashoba,€that€he€expected€that€€if€SpectraÏcould€not€collect€on€one€particular€customer€account€(Duracraft),€then€Spectra€would€beÏunable€to€continue€business€operations€beyond€February.œ×ƒè×Ý ƒ #ÃÝòòÚ  Ú5Ú  ÚóóÝ  Ý×  ×›€€œOn›€February€2,€1995,Ð à ÐGoodman€again€spoke€with€McGaughey,€and€similarly€mentioned€that,€if€Spectra€could€notÏcollect€from€Duracraft,€then€he€expected€Spectra€to€file€a€bankruptcy€petition€shortly.€€œAt›Ïthis€time,€Goodman€also€asked€McGaughey€if€Nashoba€would€advance€additional€fundsÏto€cover€Spectraððs€upcoming€payroll,€to€which€McGaughey€declined.€€œOn›€February€15,Ï1995,€Spectra€failed€to€pay€wages€due€its€employees€(òòi.e.óó,€it€failed€to€make€its€payroll).€ñQñœñQñÐ ð@ ÐÌà  àDuring€the€first€part€of€February,€Nashobaððs€Board€of€Directors€decided€that€anyÏmoney€that€came€into€Spectraððs€checking€account€should€be€debited€from€the€account€andÏapplied€against€Spectraððs€unpaid€indebtedness€from€its€line€of€credit.€€œOn›€February€15,Ï1995,€this€decision€was€communicated€by€McGaughey€to€Goodman€(òòi.e.óó,€Spectra).€ñQñœñQñ€€OnÐ P( #& ÐFebruary€16,€1995,€a€meeting€took€place€between€Spectra€and€Nashoba€representatives.€ÏœAt›€this€point,€Spectra€had€just€directly€received€two€accounts€receivable€payment€checks,Ïwhich€totaled€$71,187.74,€that€had€not€been€directly€deposited€into€Spectraððs€account€inÏaccordance€with€the€ð ðlock€boxðð€provision€of€the€partiesðð€security€agreement.€€œAt›€thisÏmeeting,€Spectra€representatives€appealed€to€Nashoba€to€allow€Spectra€to€deposit€theÐ °1-0 Ðfunds€and€use€the€funds€to€meet€payroll€and€other€obligations.€ñQñœñQñ€At€the€meetingððs€end,ÏNashobaððs€representatives€agreed€to€revisit€the€issue€with€its€Board€of€Directors€(thoughÏthere€were€ð ðno€guaranteesðð€that€Nashoba€would€reverse€its€prior€decision),€provided€theÏfunds€were€deposited.€ñQñœñQñÌÌà  àOn€February€17,€1995,€at€approximately€12:00€noon,€Cox€delivered€to€the€NashobaÏBank€offices€the€checks€for€deposit€and€renewed€his€request€that€Spectra€be€allowed€toÏuse€the€funds€to€pay€other€obligations.€€œA›€response€was€requested€by€2:00€p.m.€€œUpon›Ïreceipt€of€the€funds€(and€Spectraððs€renewed€request€with€its€2:00€p.m.€ð ðdeadlineðð),ÏMcGaughey€polled€three€of€the€four€members€of€the€executive€committee€to€the€Board€ofÏDirectors,œ×ƒ×Ý ƒ #ÃÝòòÚ  Ú6Ú  ÚóóÝ  Ý×  ×›€which€acted€upon€such€loan€issues€in€cases€where,€among€other€things,€the€fullÐ pÀ Ðboard€could€not€be€brought€together.€€These€three€members,€which€included€McGaughey,ÏCharles€Perkins,€and€William€Watkins,€decided€to€debit€the€funds€on€deposit€and€applyÏthem€to€Spectraððs€past€due€indebtedness.€€As€such,€the€funds€were€debited€from€SpectraððsÏaccount€and€applied€to€the€outstanding€loan€balance,€at€which€point€Spectra€was€promptlyÏnotified€of€Nashobaððs€decision.€€There€still€remains,€however,€an€outstanding€amount€owedÏon€Note€1392.ÌÌà  àAside€from€the€above€facts€ð ðas€to€which€.€.€.€there€is€no€genuine€issue€for€trial,ðð€theÏfollowing€òòotheróó€factual€allegations€are€raised€by€Spectraððs€amended€complaint€(which€òòeitheróóÐ P( #& Ðare€not€rebutted€by€Nashobaððs€ð ðstatement€of€material€facts,ðð€along€with€the€supportive€proofÏtherein€cited,€òòoróó€€remain€genuinely€disputed€via€contradicting€proof€within€the€record).Ð ,`'* ÐÓÓà8  àAt€no€time€during€1993€or€1994€did€Nashoba€Bank€voice€any€displeasure€withÏor€concerns€about€the€manner€in€which€Spectra€was€managing€its€businessÏor€its€loans€at€Nashoba€Bank.Ð Ð Ð  Ðà@(('ìà.€.€.€.ˆÌà8  à[œB]ased›€upon€the€volume€of€purchase€orders€in€hand,€Spectra€was€projectingÏ[a€substantial€increase€in]€sales€volume€...€and€profits€of€$698,500.00€for€theÏcalendar€year€1995.€€In€the€opinion€of€Cox,€Taylor,€Goodman€and€Sandusky,ÏSpectra€had€ð ðturned€the€cornerðð€and€was€headed€toward€substantial€andÏsustained€profitability.Ð Ð Ð  Ðà@(('ìà.€.€.€.ˆÌà8  àIn€August,€1994€[(when€Note€1392€matured)]€...€the€outstanding€balance€...Ð P7 26 Ðwas€$281,618.42.Ð Ð Ð  Ðà@(('ìà.€.€.€.ˆÌà8  àThereafter,€Cox€and€Taylor€had€both€meetings€and€telephone€conversationsÏwith€their€loan€officer€at€Nashoba€Bank,€Ray€Mullins.€€In€addition,€GoodmanÏhad€a€number€of€conversations€with€D.€W.€McGaughey,€President€ofÏNashoba€Bank.€€At€none€of€these€meetings€did€any€representative€ofÏNashoba€Bank€indicate€to€Cox,€Taylor,€or€Goodman€that€the€Bank€had€anyÏproblems€with€the€Spectra€loans.€€Further,€no€representative€of€NashobaÏBank€ever€stated€that€Loan€No.€1392€was€in€default.[œ×ƒ×Ý ƒ #ÃÝòòÚ  Ú7Ú  ÚóóÝ  Ý×  ×›]Ð0 €Ð Ð  Ðà@(('ìà.€.€.€.ˆÌà8  à[œO]n›€October€13,€1994,€...€McGaughey€specifically€stated:€€ð ðDonððt€worry€aboutÏit.€€Make€the€interest€payments.€€What€we€want€to€do€is€to€get€you€to€a€pointÏwhere€we€can€convert€it€(Loan€No.€1392)€over€to€a€term€loan.ðð€€NeitherÏMcGaughey€nor€Mullins€indicated€that€Nashoba€Bank€had€any€problems€withÏthe€Spectra€loan€and€neither€individual€stated€that€this€loan€was€in€default.[׃x×Ý ƒ #ÃÝòòÚ  Ú8Ú  ÚóóÝ  Ý×  ×]ÐÐ Ð Ð  Ðà@(('ìà.€.€.€.ˆÌà8  àHowever,€unbeknownst€to€Goodman,€Cox€and€Taylor,€Nashoba€Bank€wasÏconcerned€about€its€loans€to€Spectra.€€During€1993€and€1994,€andÏspecifically€from€and€after€August,€1994,€at€numerous€board€meetings€andÏloan€committee€meetings,€representatives€of€Nashoba€Bank€expressedÏconcerns€about€the€status€of€Spectra€loans.€€The€Board€was€specificallyÏconcerned€about€how€Nashoba€Bank€was€going€to€get€out€of€the€loans€andÏhow€Spectra€was€going€to€pay€off€Loan€No.€1392.€€Further,€the€Spectra€loansÏappeared€in€late€1993€on€a€monthly€ð ðwatch€listðð€prepared€by€NashobaÏBank.[œ×ƒ×Ý ƒ #ÃÝòòÚ  Ú9Ú  ÚóóÝ  Ý×  ×›]€€Notwithstanding€these€concerns,€no€one€at€Nashoba€BankÐ 0€ Ðexpressed€any€problems€or€concerns€with€anyone€at€Spectra€concerningÏLoan€No.€1392€and€the€other€Spectra€loans.Ð Ð Ð  Ðà@(('ìà.€.€.€.ˆÌà8  àThroughout€November€and€December,€1994€and€January,€1995,€...€noÏrepresentatives€of€Nashoba€Bank€ever€stated€that€Loan€No.€1392€was€inÏdefault€or€ever€made€any€demand€for€payment€on€such€loan.[׃€ ×Ý ƒ #ÃÝòòÚ  Ú10Ú  ÚóóÝ  Ý×  ×]ÐÐ Ð Ð  Ðà@(('ìà.€.€.€.ˆÌà8  à[œO]n›€February€14,€1995,€[(after€Nashoba€had€debited€Spectraððs€account€forÏthe€payment€of€unpaid€accrued€interest€without€notice€to€Spectra€followingÏSpectraððs€deposit€of€funds€into€the€previously€overdrawn€account)]€Taylor,ÏCox,€and€Goodman€met€with€D.€W.€McGaughey€....€€Goodman€toldÏMcGaughey€that€he€wanted€to€know€how€the€Bank€would€treat€futureÏdeposits€in€Spectraððs€account.€€Taylor,€Cox,€and€Goodman€wantedÏMcGaugheyððs€assurances€that€Spectra€would€be€able€to€use€any€fundsÏdeposited€in€Nashoba€Bank,€and€that€the€Bank€would€not€continue€to€ð ðdebitððÏthe€account€without€Spectraððs€knowledge.Ð Ð Ð  Ðà@(('ìà.€.€.€.ˆÌà8  àMcGaughey€did€not€provide€a€clear€answer.€€He€stated€that€he€believedÐ ,`'* ÐNashoba€Bank€was€still€willing€to€work€with€Spectra,€but€that€the€accountsÏreceivable€loan€would€probably€need€to€be€converted€into€an€installment€loanÏand€that€he€needed€a€plan€whereby€Spectra€would€begin€to€pay€down€itsÏaccounts€receivable€line.Ð Ð Ð  Ðà@(('ìà.€.€.€.ˆÌà8  àGoodman€told€McGaughey€that€he€would€be€meeting€with€Duracraft€onÏFebruary€15,€1995€and€that€he€expected€to€receive€payments€in€excess€ofÏ$70,000€from€Duracraft€and€Sunbeam€within€the€next€couple€of€days.€ÏHowever,€Taylor,€Cox,€and€Goodman€told€McGaughey€that€these€fundsÏwould€be€needed€first€to€pay€...€19€checks€previously€dishonored€by€NashobaÏBank,€to€make€the€February€15,€1995€payroll,€and€to€pay€certain€outstandingÏutility€bills.€€They€told€McGaughey€that€after€these€payments,€Spectra€wouldÏhave€approximately€$10,000€to€apply€against€Loan€No.€1392.€€McGaugheyÏsaid€he€would€present€Spectraððs€proposal€to€Nashoba€Bankððs€Board€ofÏDirectors€the€following€morning.Ð Ð Ð  Ðà@(('ìà.€.€.€.ˆÌà8  àOn€February€15€and€16,€1995,€Spectra€received€checks€...€totalingÏ$71,187.74.€€However,€[as€mentioned€earlier]€on€February€15,€1996,ÏMcGaughey€also€informed€Goodman€that€the€Board€had€instructed€him€toÏapply€any€funds€deposited€in€Spectraððs€account€to€pay€down€the€accountsÏreceivable€loan.Ð Ð Ð  Ðà@(('ìà.€.€.€.ˆÌà8  à[A]€meeting€was€scheduled€for€3:00€p.m.€on€February€16,€1994.Ð Ð Ð  Ðà@(('ìà.€.€.€.ˆÌà8  àCox,€Taylor€and€McPherson€attended€the€meeting€on€behalf€of€Spectra.€ÏMcGaughey€and€...€Doug€Scott€attended€the€meeting€on€behalf€of€NashobaÏBank.€€....€€Cox€and€Taylor€explained€to€Scott€and€McGaughey€that€failure€toÏmake€payroll€would€doom€the€company.€€....€€Despite€repeated€requests€byÏCox€and€Taylor€that€Nashoba€Bank€commit€to€[Spectraððs]€proposed€use€ofÏthese€funds,€Nashoba€Bank€refused€to€issue€such€a€commitment.Ð Ð Ð  Ðà@(('ìà.€.€.€.ˆÌà8  àMcGaughey€...€stated€that€Nashoba€Bank€was€willing€to€continue€to€work€withÏSpectra,€provided€that€Spectra€was€willing€to€make€a€show€of€ð ðgood€faith.ðð€ÏMcGaughey€explicitly€stated€that€Spectraððs€deposit€of€the€$71,187.74€in€itsÏNashoba€Bank€account€would€constitute€such€an€act€of€ð ðgood€faith.ðð€ÏMcGaughey€told€the€Spectra€representatives€that€he€would€ð ðfavorablyÏrecommendðð€these€proposals€to€the€Board€of€Directors€òòifóó€and€òòafteróó€SpectraÐ p&À!$ Ðdeposited€the€$71,187.74€in€its€Nashoba€Bank€account.Ð Ð Ð  Ðà@(('ìà.€.€.€.ˆÌà8  àThe€meeting€was€...€joined€by€Charlie€Perkins,€an€attorney€and€member€ofÏthe€board€of€directors€of€Nashoba€Bank.€€....€€Perkins€stated€that€although€heÏcould€ð ðmake€no€assurances,ðð€he€would€also€recommend€Spectraððs€proposalÏto€the€Board€of€Directors.€€However,€Perkins€also€made€it€clear€that€SpectraððsÏfailure€to€deposit€the€$71,187.74€in€its€Nashoba€Bank€account€would€resultÏin€the€immediate€termination€of€Nashoba€Bankððs€working€relationship€withÏSpectra.€€Further,€Perkins€reiterated€...€that€Nashoba€Bank€needed€a€showÏof€ð ðgood€faithðð€from€Spectra€and€that€the€Bank€would€consider€the€deposit€ofÏthe€$71,187.74€to€be€such€a€show€of€ð ðgood€faith.ððÐ Ð Ð  Ðà@(('ìà.€.€.€.ˆÌà8  àDuring€the€meeting,€Doug€Scott,€who€had€been€introduced€to€the€SpectraÏrepresentatives€as€the€new€loan€manager€over€the€Spectra€loans,€stated€thatÏthe€$71,187.74€was€the€property€of€Nashoba€Bank.€€Scott€stated€repeatedlyÏthat€Spectraððs€failure€to€deposit€the€funds€would€constitute€a€breach€ofÏSpectraððs€loan€covenants€with€Nashoba€Bank.Ð Ð Ð  Ðà@(('ìà.€.€.€.ˆÌà8  àAfter€the€meeting,€Cox,€Taylor,€and€Goodman€decided€that€Spectra€had€noÏchoice€but€to€deposit€the€funds€in€its€Nashoba€Bank€account.€€In€reachingÏthis€conclusion,€these€individuals€specifically€relied€upon€Perkinsðð€andÐ  :p59 ÐMcGaugheyððs€statement€that€they€would€take€Spectraððs€proposal€to€theÏBoard€of€Directors€and€favorably€recommend€such€proposal.€€....€ÏAccordingly,€...€on€February€17,1995,€Spectra€delivered€checks€totalingÏ$71,187.74€to€Nashoba€Bank.Ð Ð Ð  Ðà@(('ìà.€.€.€.ˆÌà8  àAfter€depositing€the€funds€...€the€Bank€...€debited€Spectraððs€checking€accountÏin€the€amount€of€$70,934.49,€and€...€applied€these€funds€against€Loan€No.Ï1392.€€Cox€and€Taylor€also€learned€that€Nashoba€Bank€was€making€demandÏfor€the€balance€due€under€this€loan.Ð Ð Ð  Ðà@(('ìà.€.€.€.ˆÌà8  àAs€a€result€of€Nashoba€Bankððs€debiting€Spectraððs€account€and€applyingÏ$70,934.49€to€the€accounts€receivable€loan,€Spectra€was€unable€to€make€itsÏpayroll€on€February€17,€1995.€€....€€Spectraððs€inability€to€make€this€payrollÏresulted€in€the€immediate€destruction€of€the€Company.€€On€February€17,Ï1995,€at€7:00€p.m.,€Spectra€was€forced€to€cease€operations€and€close€itsÏdoors.Ð Ð Ð  ÐÌÓö9ÓñQñœñQñÌà  àOn€February€6,€1998,€the€trial€court€granted€Nashobaððs€motion€for€summaryÏjudgment.œ×ƒ ×Ý ƒ #ÃÝòòÚ  Ú11Ú  ÚóóÝ  Ý×  ×›€€œOn›€February€25,€1998,€Spectra€filed€a€motion€to€alter€or€amend,€which€wasÐ `° Ðdenied€by€the€trial€court€on€April€3,€1998.€€œThereafter,›€on€April€22,€1998,€Spectra€filed€aÏNotice€of€Appeal.€ñQñœñQñÌÌà  àOn€appeal,€Spectra€asserts€that€the€trial€court€erred€in€its€grant€of€summaryÏjudgment€to€Nashoba€as€to€Spectraððs€misrepresentation€and€contract€claims.€€œSpectra›€hasÏnot€asserted€any€error€to€the€extent€that€summary€judgment€was€granted€as€to€SpectraððsÏclaims€regarding€ð ðtortious€interference€with€business€expectancy,ðð€conversion,€and€ð ðbreachÏof€fiduciary€obligation.ððÌÌà@ÃÃ$ìàò òII.€€Analysisó óˆÐ  +p&) ÐÌà@y y ìàò òòòJ.€Goodman€&€Associates,€Inc.ððs€Claimsóóó óˆÐ à.0*- ÐÌà  àBefore€reviewing€the€trial€courtððs€summary€judgment€ruling€as€to€Spectraððs€claims,Ïwe€find€it€necessary€to€address€one€preliminary€matter.€€The€ð ðappellant(s)ðð€brief€that€wasÐ €4Ð/3 Ðsubmitted€to€this€Court€in€this€case€was€titled€ð ðBrief€of€Plaintiffs/Appellants€Spectra€Plastics,ÏInc.€òòand€J.€Goodman€Associates,€Inc.óóðð€€Moreover,€this€brief€sets€forth€in€its€statement€ofÐ à Ðissues€the€following:ÌÓÓà8  àDid€the€trial€court€err€in€granting€Defendant€Nashobaððs€Motion€to€Dismiss€theÏclaim€of€Plaintiff€JGA€where€JGA€set€forth€in€its€Complaint€allegations€thatÏNashoba€affirmatively€misrepresented€the€true€status€of€its€bankingÏrelationship€with€Spectra€in€order€to€induce€JGA€to€loan€or€otherwise€investÏfunds€in€Spectra?Ð Ð Ð  ÐÌÓcÓœNeither›€this€issue€nor€the€party€raising€this€issue€(JGA,€Inc.),€however,€is€properly€beforeÏthis€Court.€€Rule€3(f)€of€the€Tennessee€Rules€of€Appellate€Procedure€expressly€requires,Ïð ðThe€notice€of€appeal€shall€specify€the€party€or€parties€taking€the€appeal€.€.€.€.ðð€€Tòòennóó.€R.Ð ° ÐAòòppóó.€P.€3(f).€€This€requirement€accords€with€the€purpose€of€the€notice€of€appeal,€which€ð ðisÐ à Ðsimply€to€declare€in€a€formal€way€an€intention€to€appeal.ðð€€Tòòennóó.€R.€Aòòppóó.€P.€3€advisoryÐ pÀ Ðcommððn€comments.€€The€only€notice€of€appeal€that€was€filed€in€this€case,€however,Ïexpressly€specified€Spectra€as€an€appealing€party,€and€did€not€declare€JGA,€Inc.ððs€intentionÏto€appeal€in€any€manner.œ×ƒ ×Ý ƒ #ÃÝòòÚ  Ú12Ú  ÚóóÝ  Ý×  ×›€€œAccordingly,›€review€of€the€trial€courtððs€dismissal€of€JGA,€Inc.ððsÐ ` Ðclaims€is€not€properly€before€this€Court,€and€we€will€hereafter€address€only€those€issuesÏrelating€to€Spectraððs€œclaims.›€€œòòCf.óó›€òòState€v.€City€of€Murfreesboroóó,€No.€01„A„01„9404„Ð Ð  ÐCH00195,€1994€WL€585678€at€*2€(Tenn.€App.€Oct.€26,€1994)€(ð ðthere€is€no€provision€[in€theÏTennessee€Rules€of€Appellate€Procedure]€permitting€one€of€two€plaintiffs€who€join€theirÏseparate€suits€in€a€single€action€to€appeal€the€dismissal€of€both€suits€without€the€joinder€ofÏboth€plaintiffs€in€the€notice€of€appeal€and€appeal€bondðð).ÌÌà@H H ìàò òòòSpectraððs€Misrepresentation€Claimsóóó óˆÐ ,`'* ÐÌò òòòÔ‡X,CXXX,CÔà  àó óóóSpectra€has€asserted€on€appeal€that€the€trial€court€erred€in€granting€NashobaððsÐ Ð/ +. Ðmotion€for€summary€judgment€as€to€Spectraððs€misrepresentation€claims.€€Specifically,ÏSpectra€alleges€that€Nashoba,€through€its€representatives:€€(1)€misrepresented€and/orÏfailed€to€disclose€the€status€of€its€banking€relationship€with€Spectra;€(2)€misrepresented€anÐ p5À04 Ðintent€to€forbear€collection€of€Spectraððs€loans;€and€(3)€misrepresented€its€intent€with€regardÏto€the€funds€that€were€deposited€on€February€17,€1995.ÌÌà  àAs€this€Court€explained€in€òòAxline€v.€Kutneróó,€863€S.W.2d€421€(Tenn.€App.€1993),€anÐ P   Ðaction€for€fraudulent€misrepresentation€contains€four€elements:ÌÓÓà8  à(1)€an€intentional€misrepresentation€of€material€fact,€(2)€knowledge€of€theÏrepresentationððs€falsity,€and€(3)€an€injury€caused€by€reasonable€reliance€onÏthe€representation.€€The€fourth€element€requires€that€the€misrepresentationÏinvolve€a€past€or€existing€fact€or,€in€the€case€of€promissory€fraud,€that€itÏinvolve€a€promise€of€future€action€with€no€present€intent€to€perform.€ÏNondisclosure€will€give€rise€to€a€claim€for€fraud€when€the€defendant€has€aÏduty€to€disclose€and€when€the€matters€not€disclosed€are€material.Ð Ð Ð  ÐÓâmÓòòÌId.óó€at€423€(citations€omitted)€(quoting€òòDobbs€v.€Guentheróó,€846€S.W.2d€270€(Tenn.€App.Ð €Ð Ð1992)).ÌÌà  àInitially,€we€find€no€merit€in€Spectraððs€first€asserted€instance€of€misrepresentation€„„Ïthat€Nashoba€misrepresented€or€failed€to€disclose€its€banking€relationship€with€Spectra.€€ÏFirst,€we€note€that€Spectraððs€brief€suggests€that€ð ðNashoba€breached€its€duty€to€informÏSpectra€that€the€bank€considered€Loan€No.€1392€to€be€in€default€from€and€after€August€23,Ï1994.ðð€€We€reject€Spectraððs€suggestion€that€any€such€duty€existed,€as€Note€1392€was,€byÏits€own€express€terms,€ð ðin€default,ðð€regardless€of€whether€Nashoba€expressed€its€view€onÏthe€status€of€Note€1392.€€Second,€Spectraððs€brief€suggests€that€Nashoba€had€failed€toÏinform€Spectra€that€it€had€kept€Spectraððs€loans€listed€on€a€ð ðwatch€list,ðð€and€failed€ð ðto€informÏSpectra€that€[Nashobaððs]€Board€of€Directors€had€soured€on€the€banking€relationship.ðð€€TheÏfacts€before€us,€however,€indicate€clearly€that€both€Spectra€and€Nashoba€were€acutelyÏaware€of€Spectraððs€significantly€distressed€financial€condition.€€As€to€the€time€periodÏrelevant€to€Spectraððs€collapse,€Nashoba€appropriately€states€in€its€brief:ÌÓÓà8  àWhen€a€company€owes€a€bank€over€$281,000;€when€that€company€cannotÏpay€its€vendors,€landlord,€equipment€suppliers,€employees,€or€tax€collectors;Ïand€when€that€company€states€to€its€bankers€that€its€doors€[may]€close€...Ïand€that€a€bankruptcy€petition€[may€be]€forthcoming,€that€companyððs€officersÏknow,€or€reasonably€should€know,€that€its€banker€will€be€concerned.Ð Ð Ð  ÐÌÓuÓTherefore,€we€reject€Spectraððs€suggestion€that€Nashoba€ð ðfailed€to€inform€Spectraðð€of€suchÏmatters.€€Third,€aside€from€Spectraððs€contentions€that€Nashoba€breached€a€duty€to€discloseÐ  :p59 Ðin€these€regards,€Spectra€further€asserts€that€Nashoba€affirmatively€misrepresented€theÏstatus€of€the€partiesðð€banking€relationship.€We€similarly€reject€any€such€claim,€however,Ïbecause€an€essential€element€in€any€case€of€misrepresentation€is€justifiable€or€reasonableÏreliance.€€òòSpeaker€v.€Catesóó,€879€S.W.2d€811€(Tenn.€1994).€€The€facts€before€us€convinceÐ P   Ðus€that€no€reasonable€factfinder€could€find€that€Spectra€justifiably€relied€on€any€earlierÏstatements€by€Nashoba€concerning€the€ð ðstatusðð€of€the€partiesðð€banking€ð ðrelationship.ðð€€AsÏwe€have€stated,€both€Spectra€and€Nashoba€were€acutely€aware€of€Spectraððs€significantlyÏdistressed€and€deteriorated€financial€condition,€and,€while€the€facts€suggest€that€SpectraÏmight€have€actually€known€that€Nashoba€was€concerned€about€Spectraððs€financialÏcondition,€Spectraððs€officers€at€least€reasonably€should€have€known€that€Nashoba€wasÏconcerned.€€Accordingly,€there€exists€no€òògenuineóó€issue€of€material€fact€for€submission€toÐ pÀ Ðthe€fact„finder€as€to€these€matters.ÌÌà  àAs€mentioned€above,€Spectra€also€asserts€that€Nashoba€misrepresented€an€intentÏto€forbear€collection€on€Spectraððs€indebtedness.€€This€is€based€upon€Nashobaððs€statementÏthat€Spectra€should€not€ð ðworryðð€about€paying€off€the€full€amount€of€its€debt€to€Nashoba.€ÏThis€statement,€however,€was€made€at€a€time€when€the€full€amount€of€the€note€òòfirst€becameÐ °"  Ðdueóó,€at€which€point€the€statement€was€qualified€upon€the€premise€that€Spectra€wouldÐ $à" Ðcontinue€to€pay€monthly€interest,€and€upon€the€premise€that€the€outstanding€principal€wouldÏbe€converted€over€to€an€acceptable€term€loan,€whereby€the€outstanding€principal€wouldÏbegin€to€be€paid€off.€€Spectra,€however,€failed€to€pay€its€monthly€interest€over€the€followingÏseveral€months€„„€causing€Nashoba€to€debit€Spectraððs€account€in€November€1994,ÏDecember€1994,€and€February€1995.€€Moreover,€no€agreement€as€to€an€acceptable€termÏloan€was€ever€reached€between€the€parties€during€this€time.€€As€such,€no€reasonableÏfactfinder€could€conclude€that€Nashobaððs€original€statement€(for€Spectra€not€to€ð ðworryðð),€asÏconstruedòò€as€of€the€time€the€statement€was€madeóó,€was€an€intentional€misrepresentationÐ 3à.2 Ðof€a€material€fact€upon€which€Spectra€ultimately€justifiably€relied.€€òòSeeóó€òòAxlineóó,€863€S.W.2dÐ p5À04 Ðat€423.€€Furthermore,€we€find€it€significant€that€Note€1392€contains€a€ð ðno€oral€modificationððÏclause€which€provides€that€Note€1392€cannot€be€modified€unless€Nashoba€gives€its€writtenÐ 09€48 Ðconsent€to€such€modification.ÌÌà  àAs€to€Spectraððs€claim€of€misrepresentation€regarding€the€February€17€deposit,€weÏfind€this€claim€to€be€without€merit.€€By€the€express€terms€of€the€partiesðð€contract,€SpectraÏhad€a€contractual€obligation€to€deposit€those€funds€with€Nashoba.ÌÓÓà8  àIt€is€said€to€be€immaterial€that€one€is€induced€by€false€representations€to€doÏwhat€he€is€bound€to€do.€€A€person€who€has€been€induced€to€do€that€whichÏthe€law€would€have€otherwise€required€him€to€do€cannot€claim€to€have€beenÏdefrauded.€€In€other€words,€one€suffers€no€damage€where€he€is€fraudulentlyÏinduced€to€do€something€which€he€is€under€legal€obligation€to€do,€such€asÏpay€a€just€debt€...€or€perform€a€valid€contract.Ð Ð Ð  ÐÌÓ$ƒÓ37€òòAm.€œJur›.óó€œ2d›,€òòFraud€and€Deceitóó€ðð€295€(1968).€€Moreover,€Nashoba€had€a€contractualÐ  ð Ðright€to€use€the€February€17€deposit€funds€as€a€set„off€against€the€debt€owed€to€NashobaÏby€Spectra.€€Accordingly,€we€find€that€the€trial€court€correctly€granted€summary€judgmentÏin€favor€of€Nashoba€on€this€issue,€as€well.ÌÌÔ#†X,CXXX,CØj#Ôà@  ìàò òòòSpectraððs€Contract€Claimsóóó óˆÐ P ÐÌÔ‡X,CXXX,CÔà  àSpectra€asserts€three€claims€relating€to€the€partiesðð€contracts.€€First,€SpectraÐ À! Ðcontends€that€Nashoba€waived€its€right€to€demand€payment€on€Note€1392€through€courseÏof€conduct.€€Second,€Spectra€contends€that€Nashoba€violated€Tennessee€Ô#†X,CXXX,Cå†#ÔÔ‡X,CXXX,CÔCode€AnnotatedÐ €%Ð # Ðsection€47„1„203Ô#†X,CXXX,C6ˆ#ÔÔ‡X,CXXX,CÔ's€obligation€of€good€faith€in€the€performance€and€enforcement€ofÐ `'°"% Ðcontract.׃ ×Ý ƒ #ÃÝòòÚ  Ú13Ú  ÚóóÝ  Ý×  ×€Ô#†X,CXXX,C«ˆ#ÔÔ‡X,CXXX,CÔ€€Third,€Spectra€contends€that€Nashoba€violated€a€common€law€duty€of€goodÐ @)$' Ðfaith.ÌÌà  àAs€to€Spectraððs€first€argument,€Note€1392€establishes€that€any€waiver€by€NashobaÏof€its€right€to€declare€an€event€to€be€a€default€does€not€waive€its€right€ð ðto€later€consider€theÏevent€as€a€default€if€it€continues€or€happens€again.ðð€€Furthermore,€Note€1392€establishesÏthat€Spectra€waived€its€right€to€notice€and€demand€for€payment.€€As€such€(and€contrary€toÐ €4Ð/3 ÐSpectraððs€assertion),€Nashoba€did€not€waive€its€right€to€demand€payment€or€to€set€offÏSpectraððs€debt€without€first€providing€notice.€€We€note€that€our€conclusion€is€consistent€withÏTennessee€Code€Annotated€section€47„50„112(c),€which€provides,€ð ðIf€any€.€.€.€note€.€.€.€orÏother€contract€contains€a€provision€to€the€effect€that€no€waiver€of€any€terms€or€provisionsÏthereof€shall€be€valid€unless€such€waiver€is€in€writing,€òòno€court€shall€give€effect€to€any€suchÐ 0 € Ðwaiver€unless€it€is€in€writing.óóðð€€Tenn.€Code€Ann.€ðð€47„50„112(c)€(1995)€(emphasis€added).€Ð `  ÐAlthough€Note€1392€does€not€contain€a€provision€to€this€precise€effect,€Note€1392€doesÏprovide€that€the€terms€of€the€note€cannot€be€òòmodifiedóó€except€in€writing.׃×Ý ƒ #ÃÝòòÚ  Ú14Ú  ÚóóÝ  Ý×  ×€€Accordingly,€weÐ Ð  Ðconclude€that€Note€1392's€ð ðno€oral€modificationðð€clause€should€be€given€effect€accordingÏto€the€partiesðð€express€agreement,€and€find€that€Nashoba€had€the€right€to€enforce€the€pastÏdue€obligation€of€Ô_ÔSpectra.Ô_ÔÌÌà  àAs€stated€above,€Spectra€also€asserts€that€Nashoba€violated€Tennessee€CodeÏAnnotated€section€47„1„203,€which€imposes€anÔ#†X,CXXX,C¡‰#ÔÔ‡X,CXXX,CÔ€obligation€of€good€faith€and€fair€dealingÔ#†X,CXXX,C×#ÔÔ‡X,CXXX,CÔÐ ` Ðupon€parties€in€the€performance€or€enforcement€of€contracts.€€òòSeeóó€Tenn.€Code€Ann.€ðð€47„Ð ð@ Ð1„203€(1996).€€The€official€comments€to€this€statute,€however,€explain€that€this€statuteÏð ðdoes€not€support€an€independent€cause€of€action€for€failure€to€perform€or€enforce€in€goodÏfaith.ðð€€òòId.Ð $à" ÐóóÌà  àThe€Tennessee€Supreme€Court€has€recently€discussed€at€length€and€expoundedÏupon€the€obligation€of€good€faith€with€respect€to€contracts€in€the€case€of€òòWallace€v.Ð 0*€%( ÐNational€Bank€of€Commerceóó,€938€S.W.2d€684€(Tenn.€1996).€€In€òòWallaceóó,€the€Court€quotedÐ ,`'* Ðfrom€the€case€of€òòœTSC›€Industries,€Inc.€v.€Tomlinóó,€743€S.W.2d€169,€173€(Tenn.€App.€1987),Ð ð-@), Ðin€summarizing€the€law€of€good€faith€as€follows:ÌÓÓà8  àœð ðIt›€is€true€that€there€is€implied€in€every€contract€a€duty€of€good€faith€and€fairÏdealing€in€its€performance€and€enforcement,€and€a€person€is€presumed€toÏknow€the€law.€€What€this€duty€consists€of,€however,€depends€upon€theÏindividual€contract€in€each€case.€€In€construing€contracts,€courts€look€to€theÏlanguage€of€the€instrument€and€the€intention€of€the€parties,€and€impose€aÏconstruction€which€is€fair€and€œreasonable.ñQñ›ñQñðð›Ð Ð Ð  ÐÓª”ÓÐ P7 26 ÐòòId.óó€at€686€(citation€omitted).€€The€òòWallaceóó€court€cited€with€approval€the€case€of€òòBank€ofÐ ° ÐCrockett€v.€Cullipheróó,€752€S.W.2d€84,€91€(Tenn.€App.€1988)€for€the€proposition€that€ð ðgoodÐ à Ðfaith€in€performance€is€measured€by€the€terms€of€the€contract.ðð€€òòId.óó€€In€òòWallaceóó,€the€courtÐ pÀ Ðheld€that€because€the€language€in€the€contract€at€issue€clearly€allowed€the€defendantÏbankððs€actions,€there€was€no€bad€faith€on€the€part€of€the€defendant€bank€as€it€performedÏthe€contract€according€to€its€terms.€€òòId.óó€at€687.€€Similarly,€in€the€case€at€bar,€the€contractÐ `  Ðbetween€Spectra€and€Nashoba€clearly€states€and€reflects€the€intent€of€the€parties.€€Due€toÏthe€express€agreement€between€the€parties,€Spectra€could€expect€that,€at€some€point,ÏNashoba€would€demand€payment€and/or€exercise€its€set„off€rights€as€it€had€done€in€theÏpast.€€Pursuant€to€the€authority€of€òòWallaceóó,€ð ðPerformance€of€a€contract€according€to€itsÐ à Ðterms€cannot€be€characterized€as€bad€faith.ðð€€òòId.óó€at€687.€€Nashoba€had€every€right€underÐ pÀ Ðthe€terms€of€its€clear€and€unambiguous€loan€documents€with€Spectra€to€attempt€to€collectÏon€the€debt€owed€to€it€by€Spectra€by€deducting€the€amounts€owed€to€it€from€SpectraððsÏaccount€without€providing€prior€notice€to€Spectra.œñRñ׃!×Ý ƒ #ÃÝòòÚ  Ú15Ú  ÚóóÝ  Ý×  ×›ÌñRñÔ#†X,CXXX,CC‘#ԛР` МñSñà@ìì*ìàñSñ›œñSñÌÌÌÌÌÌÌÌñSñÌà@##"ìàò òIII.›€€Conclusionó óˆÐ Ð  ÐÌà  àBased€upon€the€foregoing,€Ô‡X,CXXX,CÔthe€œjudgment›€of€the€trial€court€is€hereby€affirmed.€€CostsÐ $à" Ðon€appeal€are€taxed€to€Spectra€for€which€execution€may€issue,€if€œnecessary.Ô#†X,CXXX,Cd#ÔÐ p&À!$ ÐñQñ›ñQññTñÌñTññQñ›ñQñÌñQñ›ñQñÌÓÓà  àà ` àà ¸ àà  àà h àà À àà  àà p àòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€Ð ,`'* Ðóóà  àà ` àà ¸ àà  àà h àà À àà  àà p àHIGHERS,€J.Ð -P(+ ÐÌÌÌCONCUR:ÌÌÌÌòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€óóÐ €4Ð/3 ÐCRAWFORD,€P.J.,€W.S.ÌÌÌÌòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€óóñKñÐ 09€48 ÐFARMER,€J.ñKñ›