ÿWPC …# VUNa %¯ 0(µw@Ý4 1 @ H JP 0zš  0J 0Tf 0^º 0h 0r€ 0|ò 0†n 0ô 1u„ 0dù U >]B)›DCÄ B AM$U*q ›v~¨ D3&vÓY 0@, AOlÆ» 0D D/Å Bô˜HP LaserJet 4SiHPPCL5MS,ü,,,,,ü0nLlÎ(ÖÃ9 Z ‹6Times New Roman RegularX($¡¡ þÿDUUUÓ€DDD¥Hœ$tttttt3|xc:\office\wpwin\template\opinion.wpt((*2êî$¤¤Ý ƒ!ÝÝ  ÝÓ  Óà  àòòÚ  Ú0Ú  Úóó€€2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)P ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ< Œ 9p`(&Times New Roman% Line 7 d####7Border 1dd d€-$Cþÿ << Gÿÿ< Œ 9p`(Arial Ý ƒ!ÝÑ  ÑÑ#€d#ÑÔ€"ÔÝ  ÝÔ€'ÔÔ€'ÔÓ  Óò òÔ YYY ÔFILEDÔ€'XÔÌÌJuly€31,€1998ÌÌCecil€W.€CrowsonÌAppellate€Court€ClerkÔ  Ôó óPtPtHHÚ(ÿáÿâùFG(üHHÚ(d'h%%%%'ÿÿdxdStyl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑGenevaÑÑ ÑÒ  h HD: Geneva ÒÒ  h HD: Geneva Ò("ÿÿ$££Ò  ÒÒ  Ò€-‚ƒCþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5($$””ò òÚ  Ú1Ú  Úó ó„„'÷ÿ dxdüÿP PdÝ ƒ!ÝÔ . ÔÔ€"ÔÝ  ÝÒ € ÒÒ „ ÒÓ  Ó›Ñ7€V XXdìXXdð7ÑÑ  ÑÔ€"¼ÔÑ\R AØ'\ÑÓ#` Ü` ä $È“X#Ӝـ€ÙßR€&($A1-j|` ç `€€@ÿRßÞ ÞÌÌÌÌÌÌÌHARTSVILLE›€HOSPITAL,€INC.à à)Ìà àà à)Ìà àPlaintiff/Appellee,à à)Ìà àà à)à àà àAppeal€No.Ìv.à àà à)à àà à01„A„01„9801„CH„00022Ìà àà à)ÌTHE€BAY€NATIONAL€BANKà à)à àà àTrousdale€ChanceryÌ&€TRUST€CO.,à à)à àà àNo.€6092Ìà àà à)Ìà àDefendant/Appellant.à à)ÌÌÌÌÓ  ÓCOURT€OF€APPEALS€OF€TENNESSEEÌÌÌAPPEAL€FROM€THE€CHANCERY€COURT€FOR€TROUSDALE€COUNTYÌÌAT€HARTSVILLE,€TENNESSEEÌÌÌTHE€HONORABLE€C.K.€SMITH,€CHANCELLORÌÓ  ÓÌÌÌÌÔ€"XÔDAVID€B.€FOUTCHÌGREGORY€S.€GILLÌRochelle,€McCulloch€&€AuldsÌ109€Castle€Heights€Ave.,€No.ÌLebanon,€Tennessee€37087Ìà àATTORNEYS€FOR€THE€PLAINTIFF/APPELLEEÔ€"¼ÔÌÌÌÌÌÔ€"XÔSHARON€LINVILLEÌ203€East€Main€StreetÌHartsville,€Tennessee€37074Ô€"¼ÔÌÔ€"XÔà àATTORNEY€FOR€THE€DEFENDANT/APPELLANTÔ€"¼ÔÌÌÌÌÌÌÌÓ  ÓREVERSED€AND€REMANDEDÌÌÌÌÌÌÌÓ  ÓWILLIAM€B.€CAIN,€JUDGEÌÌÓ  ÓÔ€"„Ôò òòòOPINIONóóó óÌÌÓ  ÓÓ€Óà àÔ€"¼ÔThis€case€is€before€us€on€appeal€from€a€grant€of€summary€judgmentÏin€favor€of€the€Plaintiff,€Hartsville€Hospital€Inc.,€regarding€its€claim€toÏ$27,835.81€held€by€the€Defendant,€The€Bay€National€Bank€&€TrustÏCompany.€€The€parties€shall€hereinafter€be€referred€to€as€Hospital€and€BankÏrespectively.€ÌÌò òI.€Factual€History:ó óÌà àThe€following€facts€are€undisputed€and€are€contained€in€the€recordÏon€appeal€now€properly€before€this€court.€€The€Bank€in€this€case€is€theÏTrustee€in€a€Deed€of€Trust€executed€August€1,€1974.€€The€Hospital€is€aÏsuccessor€in€possessory€interest€to€the€original€tenant.€€The€Hospital,€in€anÏattempt€to€purchase€the€property€from€the€Trustee,€was€seeking€a€release€byÏthe€Trustee€of€all€interests,€secure€and€otherwise,€which€it€had€in€theÏproperty€which€was€the€subject€of€the€Lease,€Indenture€and€Deed€of€TrustÍexecuted€on€August€1,€1974.€€The€Bank€was€seeking€the€payment€of€a€sum€ofÏmoney€to€at€least€recoup€some€of€its€losses€in€the€original€indenture.€€TheÏoriginal€indenture€instrument€established€a€ð ðBond€Fundðð€which€is€the€subjectÏof€the€instant€dispute.ÌÌÓÓà8 àòòSection€502.€€Creation€of€the€Bond€Fund.óó€€There€is€herebyÏcreated€by€the€Issuer€and€ordered€established€with€theÏTrustee€a€trust€fund€to€be€designated€ð ðthe€Health€andÏEducational€Facilities€Board€of€the€Town€of€Hartsville,ÏTennessee€First€Mortgage€Hospital€Revenue€Bond€Fund€„ÏHartsville€General€Hospital€Company€Projectðð€(which€isÏsometimes€referred€to€herein€as€the€ð ðBond€Fundðð,€whichÏshall€be€used€to€pay€the€€principal€of,€premium€if€any,€andÏinterest€on€the€Bonds.ÌÌà àÌÓ€Óà àIn€section€508€of€the€original€indenture,€the€money€in€the€ð ðBondÏFundðð€was€subjected€to€the€mortgage€lien€and€served€as€partial€collateral€forÏthe€payment€of€the€mortgage.ÌÓÓà8 àòòSection€508.€€Moneys€to€be€Held€in€Trust.óó€All€moneysÏrequired€to€be€deposited€with€or€paid€to€the€Trustee€forÏaccount€of€the€Bond€Fund€or€the€Construction€Fund€underÏany€provision€of€this€Indenture€shall€be€held€by€theÏTrustee€in€trust,€and€except€for€moneys€deposited€with€orÏpaid€to€the€Trustee€for€the€redemption€of€Bonds,€notice€ofÏthe€redemption€of€which€has€been€duly€given,€shall,€whileÏheld€by€the€Trustee€constitute€part€of€the€Trust€Estate€andÏbe€subject€to€the€lien€hereof.ÌÌà àÌÓ€Óà àAccording€to€the€documents€now€included€in€the€record€before€thisÏcourt,€the€Bond€Fund€was€established€as€a€repository€for€rents€paid€by€theÏpredecessors€in€interest€to€Hospital.€In€fact,€at€no€time€had€HartsvilleÏHospital,€Inc.,€paid€any€of€the€$27,835.81€that€was€in€the€Bond€Fund€account.ÏYet,€Hartsville€claims€it€is€entitled€to€that€money€by€way€of€the€releaseÍexecuted€by€the€parties€between€January€25,€1994€and€February€1,€1994.ÏThat€release€reads,€in€pertinent€part,€ÌÓ&` Ü` ä Ä$ ’X&ÓÓÓà8 àà àThe€Trustee,€on€behalf€of€the€holders€of€the€Bonds,Ïhas€now€agreed€to€release€its€Security€Interests€and€liensÏin€the€real€and€personal€property€securing€the€BondsÏaccording€to€the€terms€agreed€upon€by€the€Trustee€andÏHartsville.€€In€connection€with€the€release€of€its€SecurityÏInterests€and€liens,€the€Trustee€has€agreed€to€release€andÏterminate€its€œrights€in›€all€security€for€the€repayment€of€theÏBonds€including,€but€not€limited€to,€the€Deed€of€Trust,€theÏAssignment€of€Lease€and€the€Security€Interests.€€TheÏTrustee€shall€have€no€further€interest€of€any€kind€in€anyÏcollateral€securing€repayment€of€the€Bonds€or€any€right€toÏrent€paid€or€accrued€pursuant€to€the€terms€of€the€Lease.ÌÌà8 à€€€€€1.€€òòObligations€of€Partiesóó.€According€to€the€terms€ofÏthis€Agreement,€Hartsville€agrees€to€deliver€to€the€TrusteeÏfunds€(referred€to€hereinafter€as€the€ð ðFundsðð)€in€theÏamount€of€Seventy„Five€Thousand€Dollars€($75,000).€€InÏconsideration€of€the€receipt€of€these€funds,€the€Trustee,Ïpursuant€to€the€written€direction€furnished€by€a€majorityÏof€bondholders€will€cancel€any€promissory€note€made€byÏHartsville€or€the€Board€(in€principal€Amount)€[asÏcorrected€by€Shirley€Carrol,€Trust€Officer]€for€the€benefitÏof€the€Trustee€or€holders€of€the€Bonds€and€òòrelease€andÏterminate€all€liens,€security€interests€and€assignments€in€allÏassets€granted€in€the€Indenture€or€by€other€instrument€toÏthe€Trustee€by€the€Board€or€Hartsville€to€secure€theÏrepayment€of€the€Bonds,€including€but€not€limited€to€theÏassets€owned€by€the€Board€and€leased€to€Hartsville€underÏthe€terms€of€the€Lease,€and€including€but€not€limited€toÏthe€termination€and€release€of€the€Deed€of€Trust,€theÏAssignment€of€Lease€and€the€Security€Interests.óóÌÓ  Óà8 àà à.€.€.€ÌÌÓ  Óà8 à€€€9.€òòCompleteness€and€Modificationóó.€This€AgreementÏconstitutes€the€entire€agreement€between€the€parties€heretoÏas€to€the€transactions€contemplated€hereby€and€supersedesÏall€òòprioróó€discussions,€understandings€or€agreementsÏbetween€the€parties€hereto.€€(italics€supplied)Ì€Ó€Óà àAccording€to€the€affidavit€of€Alexander€Buchanan,€on€or€aboutÏFebruary€3,€1994,€R.€Culver€Schmid,€counsel€for€the€Hospital,€contacted€theÏBank€to€inquire€as€to€the€worth€of€the€Bond€Fund.€At€that€time€Mr.ÏBuchanan€informed€Mr€Schmid€that€the€Bond€Fund€balance€was€not€affectedÏby€the€release€executed€by€the€parties.€€In€his€affidavit€in€response€to€theÏmotion€for€summary€judgment€below,€Mr€Buchanan€averred,€ÌÓ#` Ü` ä ZÈ“X#ÓÓÓà8 àà à3.€€The€Bond€Fund€as€established€under€the€termsÏof€the€Indenture€was€not€discussed€until€on€or€aboutÏFebruary€3,€1994,€the€day€prior€to€the€closing€of€theÏtransaction€between€Hartsville€Hospital€and€Bay€Bank.€AtÏthat€time,€Mr.€Schmid€asked€me€about€the€balance€in€theÏBond€Fund.€€I€told€Mr.€Schmid€that€I€found€it€surprisingÏthat€he€was€inquiring€about€such€fund€since€no€mentionÏhad€been€made€of€the€fund€at€any€time€during€theÏnegotiations€between€the€parties€and€that€it€was€ourÏintention€that€any€monies€in€the€Bond€Fund€would€not€beÏpaid€over€to€the€Hospital.€€Mr.€Schmid€was€informed€thatÏit€was€Bay€Bankððs€position€that€such€monies€were€not€partÏof€the€transaction€and€Hartsville€Hospital€had€no€claim€toÏsuch€monies.€€Additionally€Mr.€Schmid€was€informed€thatÏunless€Bay€Bank€received€payment€by€Hartsville€HospitalÏof€the€sum€of€Seventy€Five€Thousand€($75,000)€dollarsÏ(without€offset),€there€would€be€no€release€of€Bay€BankððsÏlien€on€the€real€property€and€the€furniture,€fixtures,€andÏequipment€used€in€the€operation€of€the€hospital.€€FinallyÏMr.€Schmid€was€informed€that€if€his€client€was€willing€toÏclose€upon€those€terms,€the€Seventy€Five€ThousandÏ($75,000)€Dollars€should€be€paid€to€Bay€Bank€and€theÏRelease€Agreement€signed,€but€that€if€those€terms€wereÏnot€acceptable,€the€transaction€should€not€be€closed.ÌÌà àÌÓ€Óà àAccording€to€the€Buchanan€affidavit€no€other€mention€was€made€ofÏthe€Bond€Fund€until€after€the€closing.€€The€Hospital€demanded€payment€ofÏthe€Bond€Fund€monies€and€filed€suit.€Both€parties€moved€for€summaryÏjudgment€at€trial.€€The€court€below€refused€to€consider€two€affidavits,€one€ofÍwhich€is€referenced€above.€€The€court€apparently€considered€these€affidavitsÏto€be€parol€evidence€and€thus€barred€from€consideration.€€For€reasons€set€outÏbelow,€this€court€finds€summary€judgment€inappropriate€at€this€point€in€theÏproceedings.ÌÌò òII.€€Issues€for€Reviewó óÌà àThe€appellant€Bank€presents€the€following€issues€for€review:ÌÓÓà8 à1.€€Whether€the€Appellee€had€any€right€to€receive€moniesÏheld€by€the€Appellant€in€the€Bond€Fund?Ìà8 à2.€€Whether€the€trial€court€erred€in€refusing€to€considerÏthe€affidavits€of€Shirley€I.€Carroll€and€Alexander€B.ÏBuchanan,€offered€to€explain€ambiguous€terms€of€theÏRelease€Agreement€as€it€applied€(or,€more€accurately,Ïdoes€not€apply)€to€the€Bond€Fund?Ìà8 à3.€€Whether€the€trial€court€erred€in€refusing€to€considerÏthe€Appellee€is€estopped€from€claiming€an€interest€in€theÏBond€Fund?ÌÌÌÓ€Óà àSince€issue€No.€2€is€dispositive€on€appeal€from€summary€judgment,Ïit€is€not€necessary€to€address€the€other€issues.€€The€Hospital€argues,€relyingÏon€the€rule€set€out€in€ò òòòFaithful€v.€Gardeneróóó ó,€òò799€S.W.€2d€232€(Tenn.€Ct.ÏApp.€1990)óó,€that€these€affidavits€represent€prior€or€contemporaneousÏconversations€presented€for€the€purpose€of€varying€or€contradicting€a€clearÏand€unambiguous€writing.€œ›ÌÌà àIf,€however,€the€affidavits€are€offered€to€explain€a€latent€ambiguityÏin€the€release€agreement€they€are€properly€offered€in€evidence€to€counter€aÏsummary€judgment€motion.€€A€latent€ambiguity€exists;€"€.€.€.€where€theÏequivocality€or€obscurity€of€intention€does€not€arise€from€the€wordsÏthemselves,€but€from€the€ambiguous€state€of€extrinsic€circumstances€to€whichÍthe€words€of€the€instrument€refer€.€.€.€"€€ò òòòTeague€v.€Souder,€ó óóó114€S.W.2dÏ484,€488€(Tenn.€1908).ÌÌà àThe€$27,835.81€balance€in€the€bond€fund€at€the€time€of€the€releaseÏrepresented€money€not€paid€by€Hartsville€but€rather€by€predecessors€inÏinterest€of€Hartsville.€€When€applying€the€language€of€the€written€release€toÏthe€extraneous€circumstances,€the€status€of€the€remaining€monies€in€the€bondÏfund€are€not€unambiguously€"further€interest"€in€collateral€securingÏrepayment€of€the€bonds€but€may€just€as€well€be€previous€payments€on€theÏbonds.€€This€is€particularly€true€when€one€considers€that€admittedly€none€ofÏthese€funds€were€ever€paid€into€the€bond€fund€by€Hartsville.ÌÌà àœParol›€evidence€is€thus€admissible€to€explain€a€latent€ambiguity€andÏthe€issue€of€the€balance€in€the€bond€fund€cannot€be€resolved€on€summaryÏjudgment€motion.ÌÌà àAdditionally,€the€affidavits€present€an€oral€exchange€between€theÏparties€subsequent€to€the€writing€which€warrants€examination€by€the€court.€ÏA€movant€is€only€entitled€to€summary€judgment€where,€taking€the€view€ofÏthe€evidence€most€favorable€to€the€non„movant,€there€is€no€genuine€issue€asÏto€any€material€fact€and€the€movant€is€entitled€to€judgment€as€a€matter€ofÏlaw.€€ò òòòEvco€Corp€v.€Ross,€ó ó528€S.W.€2D€20€(Tenn.€1975)óó.€These€affidavitsÏpresent€a€factual€question€as€to€what€the€words€of€the€release€actually€mean.€Ìà8 àÓÓIt€was€held€in€òòHibernia€Bank€&€Trust€Co.€v.€Boydóó,€164ÏTenn.€376,€48€S.W.2d€1084€(1932)€that€in€theÏconstruction€of€a€written€contract€evidence€offered€for€theÏpurpose€of€proving€the€intention€of€the€parties€in€itsÏexecution,€the€motives€which€induced€it,€and€the€objectÏand€purpose€designed€to€be€effected€by€it,€is€competent.ÌÌò òòòà àTravelers€Ins.€Co.€v.€Sidesó ó,óó€òò184€Tenn.€663€at€669,€202€S.W.2dÏ815€(1947).óóÌÌÌÓ€Óà àCertainly€these€affidavits€go€to€explain€the€terms€of€the€agreementsÏor€at€least€their€motives€or€intentions€with€regard€to€that€agreement.ÌÌà àThis€Release€concerned€funds€that€had€not€been€paid€by€theÏHospital.€€Giving€effect€to€this€release€without€considering€the€affidavits€inÏthis€case€would€allow€a€unique€result€in€that€the€parties€involved€would€beÏexchanging€cash€for€cash.€€ÌÌà àIn€this€case€we€have€a€release€in€which€the€bank€releases€all€liens€itÏholds€on€the€encumbered€property€in€exchange€for€a€one„time€payment€ofÏmoney.€€Funds€held€by€the€bank€in€the€bond€fund€that€had€been€paid€in€priorÏto€Hartsville€Hospital€ever€assuming€duties€and€obligations€as€to€the€hospitalÏis€no€where€mentioned€in€the€release€agreement.€€No€discussion€occurredÏbetween€the€parties€until€after€the€signatures€of€both€parties€appear€on€theÏrelease€agreement.€€The€conversation€referenced€in€the€Buchanan€affidavitÏoccurred€subsequent€to€the€execution€of€the€contract,€but€it€is€not€barred€byÏthe€parol€evidence€rule€and€should€be€considered€along€with€all€otherÏevidence€surrounding€the€meaning€of€the€words€in€œthe€release›€as€same€areÏapplied€to€the€circumstances€surrounding€the€funds€remaining€in€the€bondÏfund.ÌÌà àœThere€are€still€material€issues€of€fact€to€be€resolved€in€this€case.€ÏThe›€action€of€the€trial€court€in€granting€summary€judgment€to€Hartsville€isÏreversed€and€the€case€is€remanded€for€further€proceedings.€€ò òòòByrd€v.€Halló óóó,Í847€S.W.2d€208,€214€(Tenn.€1993).ÌÌà àCosts€of€the€appeal€are€taxed€against€the€appellee.ÌÌÌÓÓà àà àà àà àà àà àà àà àà àà àà à_____________________________Ìà àà àà àWILLIAM€B.€CAIN,€JUDGEÌÌÌCONCUR:ÌÌÌ__________________________________ÌHENRY€F.€TODD,€PRESIDING€JUDGEÌÌÌ__________________________________ÌBEN€H.€CANTRELL,€JUDGEà à