ÿWPCn Ag!»Jï«åNÿ­>£YÊ9¦bW?^ •¸åKÿîEj=7î.‹`›Œ©®’ +#fRìœ/vcÛ’s„)Ñæ_¤89ø×!} b94*e-$RwƒR’%Ñ´ò3—-Rçµ8¬„†K@÷_'Îðȿ饽­•åùžåÙͳ2¥Ñ.%—ZHÛ ó­J»‘ט5?•š‚Ø¸dR0\ùC‡ÍpÛTÝáóa—`í* ïðDÛzp(¯ÑPkÖ¾'ÎY¼qRRÇ£ëe¤¬ÛËòF(lŒÇ ®ímò/†Ëƒˆá·5,AõÏìn°uXh$†>l×W#%åÓò,iwôvë†äHÒD-75¦qSâ šÍpQ€ÿCv‰”›dfd6¾¥ro ¡ðnŠIy:½uüßõŸ‡yäW†ÐN G£xC?n Ì)˜ 9q[åok•Ž×Š R1°Z®ñ&µß“Ü·¿„9Ôc¤ÇµàÆè ÷‹ÖWmºÀrë¥÷ß rm¶ˆÌychÓ”—‚‹QIíç –Œ{‰¡0ØmŠŒåÛcW)Ú­°¦L¨›(;'†6öfU[É¡kdÉü ×Ü‘[æ&þeûÇw̆B>”‰I‰-îÅE+ÛmÌñ/ƒ«b#É\ %% ^ + 0ˆ7 U'N¿ w 4# z7 Ò± ƒ ’ m” 0D« Æï Ƶ Æ{ÆAUNNUU NWWE¥º§§§§§§§§§§§§§§§§§§§§§§§baaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa 0ëiiii BTT 0¤q D5 D-J 0Kww ASÂÆ 0¤Û 0D A«Ã˜\\IB01S02\CLERKJACÈÈ,,,,ÈÈ0»ö€e1Ï (`£ª$¡¡Ñ€.ÑÑ8€½­»»d»»d8ÑÑ ý ÑÓ  Ó(í€"  Z6Times New Roman Regular€D6hö001s02 ˜C:\PROGRA~1\COREL\WORDPE~1\TEMPLATE\CUSTOM~1\REVISE~1.WPTC:\Program Files\Corel\WordPerfect Office 2000\Template\Custom WP Templates\revised standard opinion.wpt3|xÿU‹ÿÀÀÀ(#Ã$òòÚ  Ú0Ú  ÚóóLevel 1Level 2Level 3Level 4Level 5‚Level 1Level 2Level 3Level 4Level 5„Level 1Level 2Level 3Level 4Level 5…Level 1Level 2Level 3Level 4Level 5(ÖÃ9 Z ‹6Times New Roman Regular(ÖÃ9 Z‹6Times New Roman Regular °Ý ƒR_$ÝÓ  Óà  àòòÚ  Ú1Ú  ÚóóÔ€ô¥4ò»»ÔÝ  ÝÔ_ÔWe€note€that€the€Bank€had€released€the€original€lien€on€lot€86€and€apparently€believed€the€lien€on€lot€87€alsoÐ ° Ðhad€been€released.€€Thus,€foreclosure€could€only€have€proceeded€under€the€junior€mortgage€and€not,€as€Plaintiffs€suggest,Ð qÁ Ðunder€the€original€deed€of€trust.- ù-(|G2_$¤¤Ý ƒ£ª!ÝÑ€.ÑÑ8€†™»»dd8ÑÑ ý ÑÓ  ÓÝ  Ýà  àòòÚ  Ú0Ú  ÚóóÔ€ô¥4ò»»Ô d(|3¿$££Ý ƒ£ª!ÝÑ€.ÑÑ8€†™»»dd8ÑÑ ý ÑÓ  ÓÝ  ÝVVVV)ÿÿ!dxdx)!ÈÈÈÈdxdx( ±þ$’’ò òFigure€Ú  Ú1Ú  Úó ó^_X`YEþÿ<<CÿÿƒLevel 1Level 2Level 3Level 4Level 5(|3¿$¢¢Ý ƒ£ª!ÝÑ€.ÑÑ8€†™»»dd8ÑÑ ý ÑÓ  ÓÝ  Ý($$””ò òÚ  Ú1Ú  Úó óX[Z&OLE 2.0 Box <=8ÿÿÿÿÿÿÿÿÿÿCÿÿ HKKKKÝ ƒ£ª!ÝÑ€.ÑÑ8€†™»»ddÈ8ÑÑ ý ÑÓ  ÓÝ  ÝÔ_ÔÑ  ÑÔ€¼†™»»»ÔÑ8€ÁXXdé»»d8ÑÑ  Ñà@ò ò ìàÔ‡îg†™ÔIN€THE€COURT€OF€APPEALS€OF€TENNESSEEˆÐ ° Ðà@òò%ìàAT€JACKSONÔ#†¼†™»îîg #ԈРÓ# ÐÓ  ÓSeptember€20,€2004€SessionÐ öF ÐÔ‡XÁX»¼†™ÔÌò òÔ#†¼†™»XXÁõ#ÔGREG€DAVIDSON,€òòet€al.€óóv.€BANK€OF€FRIENDSHIP,€INC.òòÐ ï? ÐANDÐ  P Ðóó€THEODA€DUNNòòóó€v.€BANK€OF€FRIENDSHIP,€INC.€Ô‡XÁX»¼†™Ôó óÐ  a ÐÌà@@½½ìàò òDirect€Appeal€from€the€Chancery€Court€for€Henderson€CountyÐ  [ Ðà@@øøìàNo.€14850€and€14854€€€€€€Ron€E.€Harmon,€ChancellorÐ õ E  ÐÌÌà@@ìì*ìàßA€V) °°` d€÷E<²` AßÐ ³  ÐÌà@@TTìàNo.€W2003„01887„COA„R3„CVññ€„€Filed€November€5,€2004ññÐ ¬ü  ÐÌßA€V) °°` dE<` AßÐ €Ð Ðó óÌÓ  ÓÔ‡XêZXXXÁÔThe€trial€court€awarded€judgment€to€Plaintiffs€upon€determining€that€the€Bank€of€Friendship€couldÐ xÈ Ðnot€foreclose€on€Plaintiffsðð€properties€because€the€Bank€had€failed€to€apply€proceeds€from€a€saleÐ a± Ðunder€a€deed€of€trust€to€a€senior€deed€of€trust.€€We€reverse€and€remand€for€further€proceedings.ò òÐ Jš Ðó óÔ#†XÁXXXêZþ#ÔÔ#†¼†™»XXÁÔ#ÔÔ‡XÁX»¼†™ÔÌÓòÓÌò òTenn.€R.€App.€P.€3€Appeal€as€of€Right;€Judgment€of€the€Chancery€Court€Reversed€andÐ U ÐRemandedó óÐ ï? ÐÌòòÓ  ÓÔ#†¼†™»àXÁª#ÔÔ‡XÁX.¼†™ÔDavid€R.€Farmer,€J.óó,€delivered€the€opinion€of€the€court,€in€which€òòW.€Frank€Crawford,€P.J.,€W.S.,óóÐ Â Ðand€òòAlan€E.€Highers,€J.óó,€joined.Ð «û ÐÌDavid€A.€Riddick,€Jackson,€Tennessee,€for€the€appellant,€Bank€of€Friendship,€Inc.Ð }Í ÐÌCarthel€L.€Smith,€Lexington,€Tennessee,€for€the€appellees,€Greg€Davidson€and€Kim€Davidson.Ð O Ÿ ÐÌDanny€R.€Ellis,€Jackson,€Tennessee,€for€the€appellee,€Theoda€Dunn.Ð !"q! ÐÌÓiÓÌò òOPINIONó óÔ#†¼†™»XXÁ˜#ÔÔ‡XÁX»¼†™ÔÐ Ü$, $ ÐÔ#†¼†™»XXÁá #ÔÓ  ÓÔ€XÁX»¼†™ÔÔ‡XêZXXXÁÔò òÓÓó óÌÓÓà  àThis€dispute€concerns€lots€in€the€West€Pointe€subdivision€in€Henderson€County.€€Ð ˜'è"' ÐPlaintiffs/Appellees€Greg€Davidson€(Mr.€Davidson)€and€Kim€Davidson€(Ms.€Davidson€and,Ð (Ñ#( Ðcollectively,€ð ðthe€Davidsonsðð)€and€Theoda€Dunn€(Ms.€Dunn)€purchased€the€lots€at€auction€in€AugustÐ j)º$) Ð1999.€€The€lots€were€part€of€a€larger€parcel€owned€by€Blankenship/Melton€Real€Estate,€Inc.Ð S*£%* Ð(ð ðBlankenship/Meltonðð).€€The€parcel€was€divided€into€approximately€26€lots€and€on€May€20,€1999,Ð <+Œ&+ ÐBlankenship/Melton€pledged€them€to€the€Bank€of€Lexington€(a€branch€of€the€Bank€of€Friendship,Ð %,u', Ðhereinafter€ð ðthe€Bankðð)€as€collateral€for€a€$295,000€loan.€€The€loan€was€secured€by€a€recorded€deedÐ -^(- Ðof€trust.€€ò òó óÐ ÷-G).ý Їà  àOn€August€7,€1999,€€Delta€Auction€auctioned€the€property€at€the€request€ofÐ ° ÐBlankenship/Melton.€€At€the€time€of€the€auction,€the€loan€was€not€in€default.€€At€auction,€Ms.€DunnÐ ™é Ðpurchased€lots€103€and€110;€the€Davidsons€purchased€lots€104,€105€and€391€Parker€Circle.€€Ms.Ð ‚Ò ÐDunn€and€the€Davidsons€(hereinafter,€collectively,€ð ðPlaintiffsðð)€paid€a€deposit€to€Delta€Auction€andÐ k» Ðthe€remainder€of€the€purchase€price€to€Blankenship/Melton.€€Ms.€Dunn€paid€$18,900€toÐ T¤ ÐBlankenship/Melton€and€the€Davidsons€paid€$32,250€to€Blankenship/Melton.€€Plaintiffs€did€not€haveÐ =  Ðtitle€searches€prepared€on€the€properties.€€The€warranty€deeds€conveying€the€properties€fromÐ & v ÐBlankenship/Melton€to€Plaintiffs€do€not€declare€that€the€properties€were€encumbered€by€theÐ  _ Ðmortgage.€€Following€the€auction,€Blankenship/Melton,€in€turn,€paid€$227,300€on€the€$295,000€noteÐ ø H Ðto€the€Bank,€leaving€a€balance€of€approximately€$60,000.€€Ð á 1  ÐÌà  àAfter€the€auction,€the€Bank€released€the€majority€of€the€lots€which€comprised€the€originalÐ ³  Ðparcel.€€As€of€June€2002,€approximately€eight€lots€still€remained€on€the€deed€of€trust.€€Lots€86€andÐ œì  Ð87€of€the€parcel€were€purchased€by€Larry€Steve€Melton.€€The€Bank€released€lot€86€from€the€deed€ofÐ …Õ  Ðtrust€on€March€28,€2000,€but€did€not€formally€release€lot€87.€€Larry€Steve€Melton€then€pledged€lotsÐ n¾  Ð86€and€87€as€collateral€for€a€loan€of€approximately€$184,000€(ð ðthe€Melton€loanðð).€€€Thus,€lot€87€wasÐ W§  Ðencumbered€by€the€original€deed€of€trust€(ð ðthe€senior€mortgageðð)€and€the€Melton€loan,€and€lot€86Ð @ Ðwas€encumbered€by€the€Melton€loan.€€Larry€Steve€Melton€defaulted€upon€this€loan€and€the€BankÐ )y Ðforeclosed€on€the€property.€€The€two€lots€were€purchased€at€foreclosure€by€the€Bank€for€$120,000.€Ð b ÐThe€Bank€applied€these€proceeds€to€the€Melton€loan.€Ð ûK ÐÌà  àIn€March€2001,€Plaintiffs€received€notice€that€the€Bank€was€foreclosing€on€their€lots€underÐ Í Ðthe€deed€of€trust.€€In€April€2001,€Plaintiffs€filed€complaints€for€declaratory€judgment€in€the€ChanceryÐ ¶ ÐCourt€of€Henderson€County€seeking€quiet€title€and€a€judgment€declaring€the€lien€invalid.€€In€theirÐ Ÿï Ðcomplaints,€Plaintiffs€assert€the€Bank€agreed€to€the€1999€auction€sale€as€an€alternative€to€foreclosure.€Ð ˆØ ÐPlaintiffs€also€moved€the€court€to€temporarily€enjoin€the€Bank€from€foreclosing€on€their€properties.€Ð qÁ ÐThe€trial€court€granted€their€motion€pending€further€orders€of€the€court.€€Ð Zª ÐÌà  àThe€trial€court€entered€final€judgment€for€Plaintiffs€on€September€29,€2003.€€The€trial€courtÐ ,| Ðdetermined€that,€as€a€matter€of€law,€the€Bank€could€not€foreclose€on€Plaintiffsðð€properties€becauseÐ e Ðthe€Bank€should€have€applied€the€proceeds€from€the€foreclosure€sale€of€lots€86€and€87€to€satisfy€theÐ þN Ðsenior€mortgage€held€by€the€Bank€on€the€same€property.€€The€trial€court€held€the€Bank€had€no€furtherÐ ç 7 Ðlien€on€the€lots€owned€by€Plaintiffs.€€The€trial€court€further€awarded€Plaintiffsðð€attorneysðð€fees.€€TheÐ Ð!   ÐBank€filed€a€timely€notice€of€appeal€to€this€Court.€Ð ¹" ! ÐÌÓ  Óò òòòIssues€Presented€óóó óÐ ‹$Û# ÐÓïÓÌà  àThe€dispositive€issues€presented€by€this€appeal,€as€we€perceive€them,€are:Ð \&¬!% ÐÌà8  à(1)à0` Ð Ð àWhether€the€trial€court€erred€by€holding€that,€as€a€matter€of€law,€the€BankÐ .(~#' Ðcould€not€foreclose€on€Plaintiffsðð€properties€because€the€Bank€should€haveÐ )g$( Ðsatisfied€the€senior€mortgage€with€proceeds€of€the€foreclosure€sale€of€lots€86Ð *P%) Ðand€87€where€lot€87€remained€encumbered€by€the€senior€mortgage€in€additionÐ é*9&* Ðto€the€Melton€loan.ÐÒ+"'+` Ð ` Ð  Їà8  à(2)à0` Ð Ð àWhether€the€Bank€waived€its€right€to€foreclosure€by€agreeing€to€the€auctionÐ ° Ðsale€in€lieu€of€foreclosure€and€by€agreeing€to€release€the€liens€created€by€theÐ ™é Ðsenior€mortgage.ЂÒ` Ð ` Ð  ÐÌà8  à(3)à0` Ð Ð àWhether€the€trial€court€erred€in€awarding€Plaintiffsðð€attorneysðð€fees.ÐT¤` Ð ` Ð  ÐÌÓ  Óò òòòStandard€of€Review€óóó óÐ & v ÐÓ* ÓÔ#†XÁXXXêZc #ÔÔ‡XêZXXXÁÔÌà  àOur€standard€of€review€of€a€trial€court€sitting€without€a€jury€is€òòde€novo€óóupon€the€record.òò€€SeeÐ ÷ G ÐWright€v.€City€of€Knoxvilleóó,€898€S.W.2d€177,€181€(Tenn.€1995).€€We€presume€the€trial€courtððsÐ à 0  Ðfindings€of€fact€to€be€correct€unless€the€evidence€preponderates€otherwise.€€Tenn.€R.€App.€P.€13(d).€Ð É   ÐÔ#†XÁXXXêZ #ÔÔ‡XêZXXXÁÔThus,€we€may€not€reverse€the€trial€court's€factual€findings€unless€they€are€contrary€to€theÐ ²  Ðpreponderance€of€the€evidence.€€Ô#†XÁXXXêZZ"#ÔÔ‡XêZXXXÁÔWe€review€the€trial€courtððs€conclusions€on€matters€of€law€òòde€novoóó,Ð ›ë  Ðwith€no€presumption€of€correctness.€€Tenn.€R.€App.€P.€13(d);€òòBowden€v.€Wardóó,€27€S.W.3d€913,€916Ð „Ô  Ð(Tenn.€2000).€€Ð m½  ÐÌÓ  Óò òòòAnalysis€óóÐ ? Ðó óÓJ$ÓÌà  àWe€first€turn€to€the€trial€courtððs€determination€that,€as€a€matter€of€law,€the€Bank€should€haveÐ ` Ðapplied€the€proceeds€of€the€foreclosure€sale€of€lots€86€and€87€under€the€Melton€loan€(hereinafter,Ð ùI Ðalternatively,€ð ðthe€junior€mortgageðð)€to€the€balance€due€on€the€senior€mortgage,€therebyÐ â2 Ðextinguishing€the€mortgage€liens€on€Plaintiffsðð€properties.€€As€an€initial€matter,€we€note€that€whenÐ Ë Ðthe€Bank€foreclosed€on€lots€86€and€87,€it€did€so€under€the€junior€mortgage.׃×Ý ƒ #ÃÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×€€We€additionally€noteÐ ´ Ðthat€the€amount€due€under€the€Melton€loan€was€approximately€$184,000,€that€the€Bank€itselfÐ í Ðpurchased€the€property€for€$120,000,€and€that€the€Circuit€Court€of€Henderson€County€awarded€theÐ †Ö ÐBank€a€judgment€against€Larry€Steve€Melton€for€the€deficiency.€€Plaintiffs€argue,€and€the€trial€courtÐ o¿ Ðapparently€determined,€that€these€amounts€should€have€been€applied€to€the€senior€mortgage.€€ThisÐ X¨ Ðdetermination€was€in€error€as€a€matter€of€law.Ð A‘ ÐÌà  àGenerally,€the€foreclosure€of€a€junior€mortgage€does€not€affect€the€rights€of€a€seniorÐ c Ðmortgage€holder€where€the€prior€mortgagee€is€not€made€a€party€to€the€action€and€is€not€provided€forÐ üL Ðin€the€foreclosure€decree.€Ô#†XÁXXXêZ,##ÔÔ‡XêZXXXÁÔ€59A€C.J.S.€òòMortgagesóó€ðð€961€(1998).€€Ô#†XÁXXXêZ†*#ÔÔ‡XêZXXXÁÔAlthough,€as€a€general€rule,€theÐ å 5 Ðsurplus€generated€from€foreclosure€of€a€prior€lien€may€be€paid€to€the€junior€lien€holder,€the€reverseÐ Î!  Ðis€not€true.€Ô#†XÁXXXêZö*#ÔÔ‡XêZXXXÁÔ€òòId.óóÔ#†XÁXXXêZô+#ÔÔ‡XêZXXXÁÔ€€Thus,€a€purchaser€under€a€foreclosure€sale€takes€subject€to€the€senior€mortgages.€Ô#†XÁXXXêZ@,#ÔÔ‡XêZXXXÁÔ€òòId.Ô#†XÁXXXêZÖ,#ÔÔ‡XêZXXXÁԀР·"! ÐóóFurther,€in€general,€where€a€lender€holds€more€than€one€mortgage€on€a€property,€forecloses€underÐ  #ð" Ða€junior€mortgage,€advertises€that€the€property€is€offered€subject€to€prior€mortgages,€and€purchasesÐ ‰$Ù# Ðthe€property€itself,€any€surplus€reverts€to€the€mortgagor.€€òòBolerjack€v.€Fid.€Sav.€&€Loan€Assððn,Ð r% $ ÐóóRutherford€Equity€App.€No.€88„217„II,€1988€WL€126839,€at€*8€(Tenn.€Ct.€App.€Nov.€30,€1988)€òònoÐ [&«!% Ðperm.€app.€filedóó€(discussing€òòSpalding€v.€Quincy€Trust€Co.óó,€49€N.E.2d€251€(Mass.€1943)).€€AnyÐ D'”"& Ðsurplus€is€not€applied€to€the€senior€mortgages€under€such€facts.€Ô#†XÁXXXêZ-#ÔÔ‡XêZXXXÁÔ€òòId.óóÔ#†XÁXXXêZ0#ÔÔ‡XêZXXXÁÔ€€Ð -(}#' Їà  àIn€the€present€case,€the€Bank€foreclosed€on€lot€86€and€87€under€the€deed€of€trust€pursuant€toÐ ° Ðthe€Melton€loan.€€This€was€the€Bankððs€only€lien€on€lot€86,€which€had€been€released€from€the€originalÐ ™é Ðdeed€of€trust,€and€was€a€junior€mortgage€on€lot€87.€€Moreover,€the€foreclosure€sale€did€not€generateÐ ‚Ò Ðthe€full€amount€of€the€Melton€loan.€€Thus,€no€surplus€resulted€which€òòcould€óóhave€been€applied€to€theÐ k» Ðsenior€mortgage.€€The€record€is€silent€as€to€whether€the€Bank€advertised€lots€86€and€87€as€free€ofÐ T¤ Ðencumbrances€when€it€foreclosed€on€the€property,€but€we€believe€that€is€not€relevant€to€the€claimsÐ =  Ðof€Plaintiffs€here.€€Thus,€the€Bankððs€lien€on€Plaintiffsðð€properties€was€not€extinguished€by€theÐ & v Ðforeclosure€sale€of€lots€86€and€87.Ð  _ ÐÌà  àWe€next€turn€to€Plaintiffsðð€argument€that€the€Bank€waived€its€lien€when€it€agreed€to€the€1999Ð á 1  Ðauction€as€an€alternative€to€foreclosure€under€the€deed€of€trust,€and€that€the€Bank€agreed€to€releaseÐ Ê   Ðits€lien€on€properties€sold€at€the€auction.€€Larry€Steven€Melton€(Mr.€Melton),€an€agent€forÐ ³  ÐBlankenship/Melton,€testified€that€Mr.€Benny€Fesmire€(Mr.€Fesmire),€a€majority€shareholder,€seniorÐ œì  Ðvice€president,€and€member€of€the€board€of€the€Bank,€agreed€that€all€property€sold€at€the€auctionÐ …Õ  Ðwould€be€released€from€the€deed€of€trust.€€Mr.€Melton€further€testified€that€when€he€became€awareÐ n¾  Ðthat€the€Bank€had€not€released€Plaintiffsðð€properties€he€ð ðmade€several€trips€to€the€bank€and€beggedÐ W§  Ðhim€[Mr.€Fesmire]€to€release€those€people[ððs]€property.ðð€€Mr.€Melton€testified€that€Mr.€Fesmire€wasÐ @ Ðð ðkind€of€wishy€washyðð€in€response€and€that€ð ð[o]ne€day€heððd€say€he€was€going€to€release€them,€youÐ )y Ðknow,€come€Friday€or€Monday€and€then,€one€day€heððd€say€ððjust€get€us€our€money.€€Just€worry€aboutÐ b Ðyour€money.ðððð€€Ð ûK ÐÌà  àMr.€Davidson€testified€that€there€was€no€indication€that€the€property€was€encumbered€whenÐ Í Ðit€was€auctioned.€€Mr.€€Davidson€also€testified€that,€after€he€received€the€foreclosure€notice,€heÐ ¶ Ðdiscussed€the€situation€with€Todd€Henderson€(Mr.€Henderson),€who€was€employed€by€the€Bank€inÐ Ÿï ÐMay€2000.€€Mr.€Davidson€stated€that€Mr.€Henderson€assured€him€the€matter€would€ð ðwork€itself€out.ðð€Ð ˆØ ÐÌÌà  àMs.€Dunn€testified€that,€on€the€day€of€the€auction,€€Jasper€Jones€(Mr.€Jones)€of€Delta€AuctionÐ C“ Ðtold€her€that€she€would€be€ð ð[guaranteed]€a€titleðð€to€the€property.€€She€additionally€testified€that€Mr.Ð ,| ÐJones€announced€this€guarantee€at€the€auction.€€Ms.€Dunn€also€testified€that,€when€she€became€awareÐ e Ðthat€the€Bank€was€foreclosing€on€the€Davidsonððs€property,€she€telephoned€the€Bank€to€inquireÐ þN Ðwhether€her€property€was€included€in€the€foreclosure€and€that€the€Bank€assured€her€it€was€not.€€Ms.Ð ç 7 ÐDunn€testified€that€she€then€received€a€letter€advising€her€that€the€Bank€was€foreclosing€on€theÐ Ð!   Ðproperty.€€Ms.€Dunn€testified€that€she€had€no€conversation€with€either€Mr.€Henderson€or€Mr.Ð ¹" ! ÐFesmire.€€Ð ¢#ò" ÐÌà  àThe€Bank,€on€the€other€hand,€asserts€that€it€had€no€Ô#†XÁXXXêZb0#ÔÔ‡XêZXXXÁÔformal€agreement€withÐ t%Ä $ ÐBlankenship/Melton€regarding€when€the€lots€would€be€released€or€sold.€€The€Bank€further€assertsÐ ]&­!% Ðthat,€although€it€released€some€of€the€lots€from€the€deed€of€trust,€it€retained€enough€real€estate€asÐ F'–"& Ðcollateral€for€the€outstanding€indebtedness.€€The€Bank€contends€Plaintiffsðð€properties€are€includedÐ /(#' Ðin€the€retained€real€estate.€€Additionally,€the€Bank€submits€that€had€Plaintiffs€conducted€a€title€searchÐ )h$( Ðof€the€property,€it€would€have€revealed€the€recorded€lien.€€The€Bank€asserts€that€Plaintiffs€may€haveÐ *Q%) Ðmistakenly€relied€upon€statements€made€by€Delta€Auction€and/or€Blankenship/Melton€that€the€lotsÐ ê*:&* Ðwere€free€of€any€liens.€€The€Bank€contends€that€Plaintiffsðð€properties€were€secured€by€the€recordedÐ Ó+#'+ Ðdeed€of€trust€at€all€times€relevant€to€this€lawsuit€and€that€Plaintiffsðð€cause€of€action€forÐ ° Ðmisrepresentation,€if€any,€is€against€Blankenship/Melton€and€not€against€the€Bank.€€Ð ™é ÐÌà  àIt€is€not€disputed€that€Mr.€Fesmire€attended€the€August€1999€auction,€that€he€bought€propertyÐ k» Ðat€the€auction,€and€that€the€Bank€released€this€property€from€the€deed€of€trust.€€The€Bank€also€doesÐ T¤ Ðnot€dispute€that€it€released€several,€if€not€most,€of€the€auctioned€lots€from€the€deed€of€trust.€€Further,Ð =  Ðthe€parties€do€not€dispute€that€Blankeship/Melton€conveyed€the€auctioned€property€to€Plaintiffs€byÐ & v Ðwarranty€deed,€that€the€property€was€secured€by€the€deed€of€trust€at€the€time€of€the€auction,€that€theÐ  _ Ðoriginal€loan€was€not€in€default€at€the€time€of€the€auction,€or€that€the€entire€indebtedness€was€notÐ ø H Ðpaid.€€Ð á 1  ÐÌà  àThe€disputed€issues€of€fact,€as€we€perceive€them,€are€1)€whether€the€Bank€agreed,€orally€orÐ ³  Ðotherwise,€to€release€all€the€property€sold€at€auction€from€the€deed€of€trust€and€2)€whether€the€BankÐ œì  Ðwaived€its€lien€by€acquiescing€to€an€alleged€announcement€by€Delta€Auction€at€the€1999€auction€thatÐ …Õ  Ðthe€property€was€offered€free€and€clear€of€any€lien€or€encumbrance.€€€Ð n¾  ÐÌà  àThe€trial€court€made€no€findings€concerning€these€issues.€€Additionally,€the€brochureÐ @ Ðadvertising€the€auction€is€silent€regarding€whether€the€property€was€offered€free€of€any€lien.€€It€offersÐ )y Ðonly€Ô#†XÁXXXêZË>#ÔÔ‡XêZXXXÁÔð ðowner€financing€at€bank€rates.ðð€Ô#†XÁXXXêZ&I#ÔÔ‡XêZXXXÁÔ€Further,€because€it€held€that€the€Bank€could€not€assert€its€lienÐ b Ðas€a€matter€of€law,€the€trial€court€did€not€address€the€issue€of€waiver€in€its€judgment.€€Accordingly,Ð ûK Ðwe€remand€to€the€trial€court€for€further€proceedings€on€this€issue.Ð ä4 ÐÌà  àWe€turn€next€to€the€question€of€whether€an€award€of€attorneysðð€fees€was€appropriate€in€thisÐ ¶ Ðcase.€€In€light€of€our€holding€in€this€matter,€the€award€of€attorneysðð€fees€is€reversed.€€We€decline€toÐ Ÿï Ðaddress€whether€an€award€of€attorneysðð€fees€would€be€appropriate€upon€disposition€on€remand€asÐ ˆØ Ðadvisory.€€Ð qÁ ÐÌÓ  Óò òòòHolding€óóÐ C“ Ðó óÓmLÓÌà0  àIn€light€of€the€foregoing,€we€reverse€the€judgment€of€the€trial€court€and€remand€for€further€Ðd(#(# Ðproceedings€consistent€with€this€opinion.€€Costs€of€this€appeal€are€taxed€equally€to€Appellees,€Greg€Ð ýM Ðññññà  àññÌÌÌññDavidson,€Kim€Davidson,€and€Theoda€Dunn,€and€Appellant,€the€Bank€of€Friendship,€Inc.,€and€itsÐ æ 6 Ðsurety,€for€which€execution€may€issue€if€necessary.€Ð Ï!  ÐÔ#†XÁXXXêZI#ÔÌÌÌà  àà ` àà ¸ àà  àà h àà À àà  à___________________________________€Ð s%à $ Ðà  àà ` àà ¸ àà  àà h àà À àà  àDAVID€R.€FARMER,€JUDGE