WPC- L<Өfgq-~ri;/?o^V4,7~s>F~`\Zs4}̶ca.2F3VR>P&AX|cT֬aj\n*T *l( qL}w n0<8zDuGꏒ*״-; ^֤UA7'&"3995x\ԇd)0Zw9ˮ$Ns4 Z+繷׃ absnfZo0ϼl|ӴEځ+/|O/G[e"0rp{ݘYe?/㢗A{Jjy==i=(UnPC`c7yc^j>ݽ|VA֝ 9imw'zܒZzSyvA{k= ,x$#j(b#\ % UN# 0q U?N 0DG U,@ z E  ^ w\c )!N"W"&E'Z'4w((( m(((((((((((((((((((b(((((((((((((((((((((((((((((((((((( 0(((( B)) 0) D5g* D-* 0K** AS+g+ 0-, 0D, A-HP LaserJet 4050 Series PCL 5e,,,,0(9 Z6Times New Roman Regular(`$.8dd8    ("  Z6Times New Roman Regular(#$  0  (hH  Z(Times New Roman  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.wpt  R3$      4    _Althoughthebondfundmoneywasnotspecificallydisposedofinthewrittenrelease,ԀBankclaimsthatthe  partiesdiscussedthestatusoftheremainingmoneyinthebondfundonFebruary3,1994,priortoexecutingtherelease. t AccordingtoBank,_Hartsville_ԀwasawarethatBankconsideredthebondfundmoneypropertyofthebondholders. 8 However,thereleaseagreementwasactuallysignedby_Hartsville_ԀonJanuary25,1994,andbyBankonFebruary1, L 1994.Therefore,thediscussiononFebruary3,1994,tookplaceaftertheexecutionoftherelease.##\)L  R R3$      3    _Theexactterminologyofthereleaseagreementprovidesasfollows: TheTrustee,onbehalfoftheholders  oftheBonds,hasnowagreedtoreleaseitssecurityinterestsandliensintherealandpersonalpropertysecuringthe t BondsaccordingtothetermsagreeduponbytheTrusteeandHartsville.InconnectionwiththereleaseofitsSecurity 8 Interestsandliens,theTrusteehasagreedtoreleaseandterminateitsrightsinallsecurityfortherepaymentoftheBonds L including,butnotlimitedto,theDeedofTrust,theAssignmentofLeaseandtheSecurityInterests.TheTrusteeshall  havenofurtherinterestofanykindinanycollateralsecuringrepaymentoftheBondsoranyrighttorentpaidor  accruedpursuanttothetermsoftheLease. H    1.ObligationsofParties.AccordingtothetermsofthisAgreement,HartsvilleagreestodelivertotheTrustee  \ funds(referredtohereinafterasthe Funds)intheamountofSeventyFiveThousandDollars($75,000).In   considerationofthereceiptofthesefunds,theTrustee,pursuanttothewrittendirectionfurnishedbyamajorityof    bondholders,willcancelanypromissorynotemadebyHartsvilleortheBoardforthebenefitoftheTrusteeorholders X   oftheBondsandreleaseandterminateallliens,securityinterestsandassignmentsinallassetsgrantedintheIndenture  l  orbyotherinstrumenttotheTrusteebytheBoardorHartsvilletosecuretherepaymentoftheBonds,includingbutnot  0  limitedtoassetsownedbytheBoardandleasedtoHartsvilleunderthetermsoftheLease,andincludingbutnotlimited   totheterminationandreleaseoftheDeedofTrust,theAssignmentofLeaseandtheSecurityInterests.Theformsof h  thereleasetobefiledbytheTrusteeshallbeintheformsattachedheretoasExhibitA. ,|    2.CharacterofPayment.ThefundsdeliveredtotheTrusteepursuanttothisAgreementshallbeappliedby @  theTrusteetotheobligationsowedtotheholdersoftheBondspursuanttotheIndenture.Noadditionalfundswillbe   requiredtopayanycostsassociatedwiththefees,chargesandexpensesoftheTrusteeorsuchotherpayingagents. x  Allfees,chargesandexpensesoftheTrusteeshallbepaidfromtheFundsdeliveredtotheTrusteebyHartsvillesothat < nootheramountsareowedtotheTrusteeasofthedateofthisAgreement.ThepaymentoftheFundsbyHarstvilleshall P constitutepaymentinfullbyHartsvilleofallamountsnecessarytoobtaintheTrusteesreleaseofallliens,security  interests,andassignmentsandtheTrusteesagreementnottopursuelitigationagainstHartsvilleortheassetssecuring  therepaymentoftheBonds.NootherpaymentofrentorotherchargesorobligationsisorwillbeowedbyHartsville. L TheTrusteeagreestocancelanyBondssubmittedforpaymentfromtheFunds.TheTrusteewaivestheobligationof ` theBoardofHartsvilletoprovidenoticehereofundertheIndentureifanyisrequired.(emphasisadded)Level 1Level 2Level 3Level 4Level 5Level 1Level 2Level 3Level 4Level 5Level 1Level 2Level 3Level 4Level 5Level 1Level 2Level 3Level 4Level 5 { R3$      1    _Neither_Hartsville_ԀGeneralHospitalCompany,nor_Hartsville_ԀMedicalCenter,Limitedareaffiliatedwith  _Hartsville_ԀHospitalIncorporated. M R3$      2    _Thebondholdersdidnotreceiveanyprincipalpaymentsfollowingdefault.#~#ԀHowever,semiannualinterest  paymentscontinuedtobepaidtothebondholdersuntilAugust1990.Theinterestpaymentstothebondholdersduring t thisperiodtotaledapproximatelytwentyfivethousanddollars.In1991,Bankastrusteereceivedanadditionaltwenty 8 fourthousanddollarsinrentalpaymentwhichwasheldinaninterestbearingaccount.Bankdidnotmakeanyadditional L paymentstothebondholders.##  R3$      5    _Atthetimethisdisputearose,approximatelytwentyseventhousandandeighthundreddollarsremainedinthe  bondfund. P R3$      6    _ThecontentsofthebondfundisdescribedinSection503oftheoriginalIndentureofMortgageandDeedof  Trust##Ԁagreement.~( FilX3|xU- -(|G23$ !.8Ddd8         0   d(|3nj$ !.8Ddd8     VVVV)!dxdx)!dxdx( $ Figure  1  ^_X`YE<<CLevel 1Level 2Level 3Level 4Level 5(|3nj$ !.8Ddd8     ($$   1  X[Z&OLE 2.0 Box <=8C HKKKK !.8Ddd8     _  D8aXXdd8  @ B,DINTHECOURTOFAPPEALSOFTENNESSEE  @kk$ATNASHVILLE#DB, #Ԉ &   MARCH2000Session L XaXD #DXXa#_HARTSVILLE_ԀHOSPITAL,INC.v.THEBAYNATIONALBANKAND J TRUSTCOMPANYXaXD   ^ @@ DirectAppealfromtheChanceryCourtfor_Trousdale_ԀCounty  ^ @@No.6092;TheHonorableC.K.Smith,Chancellor  J @@*AV) ` dE<` A   @@TTNo.M199901276_COA_ԄR3CVFiledAugust16,_2000_   AV) ` dE<` A      XaXXXaThisappealarisesfromadisputeovertheownershipofmoniesheldinabondfund._Hartsville_  HospitalIncorporated( _Hartsville_)filedsuitagainstBayNationalBank( Bank)seekingthe x contentsofthefund.Thecourtbelowenteredjudgmentfor_Hartsville_,holdingthatBankhadno d claimtothebondfundmoneypursuanttoareleaseagreementbetweenthepartiesandthat_Hartsville_ P wasnot_estopped_Ԁfromassertingownership.Bankappeals.#XaXXXa:##DXXa#XaXD < . Tenn.R.App.P.3;AppealasofRight;JudgmentoftheChanceryCourtAffirmed  d   #DXaY#XaX.DAlanE.Highers,J.,deliveredtheopinionofthecourt,inwhichCrawford,P.J.,W.S.,and < Farmer,J.,joined. ( DavidB._Foutch_,Lebanon,forAppellant  Sharon_Linville_,_Hartsville_,forAppellee    OPINION #DXXa: #XaXD `!  #DXXa #XaXD  XaXXXaOnAugust1,1974,theHealthandEducationalFacilitiesBoard( Board)#XaXXXa #XaXXXaԀof_Hartsville_,Tennessee 8#" enteredintoanIndentureofMortgageandDeedofTrustintheamountofonemilliononehundred $$t# andfiftythousanddollars.Themoneywasusedtofundthecreationandoperationofageneral %` $ hospitalandrelatedfacilities.#XaXXXa6 #XaXXXaԀPursuanttotheindenture,abondfundwascreated,withBankserving %L!% asTrustee.Thebondfundcontainedleaserentalsandrevenuesfromthehospital.Therealand &8"& personalpropertyofthehospitalandfacilitiesservedasasecurityinterestonthebonds. '$#'   ($(9   Atthistime,theBoardalsoenteredintoaleaseagreementwith_Hartsville_ԀGeneralHospital  Company_ #  1      _Ԁ( Company)underwhichCompanywastorepaytheindenture.#XaXXXa #XaXXXaԀ#XaXXXa#XaXXXaԀOnJuly10,1979,the   leasewasmodifiedand_Hartsville_ԀMedicalCenter,Limited,becamethelessee.#XaXXXa#XaXXXaԀ#XaXXXa#XaXXXaԀApparently,  _Hartsville_ԀMedicalCenter,Limitedwasthelesseewhentheleasewentintod#XaXXXa;#XaXXXaefaultonJuly31,1989. #  2      #XaXXXa #XaXXXa t   InMarch1993,_Hartsville_Ԁbeganoperatingthehospitalfacilities.Overthefollowingyear, L  _Hartsville_Ԁpurchasedthehospital,subjecttotheIndenture.Atsomepointduringthisprocess, 8  _Hartsville_ԀandBankbegantonegotiateareleaseoftheIndenture.Thepartieseventuallyreached $ t areleaseagreementbywhich_Hartsville_Ԁwouldpayareducedlumpsumpaymentinexchangefor  ` thereleaseofBank,onbehalfofthebondholders,ofallsecurityinterestsandliensintherealand  L  personalpropertysecuringthebonds.Areleaseagreementrequiring_Hartsville_Ԁtopayseventyfive  8   thousanddollarstoBankwasexecuted.  #  3      ׀Thereleaseneitherspecificallyincludednorexcludedthe $  moneyheldinthebondfund._  #  4      _ԀPursuanttothereleaseagreement,Bankreleaseditslienonthereal   andpersonalpropertysecuringthebonds.Bankdidnot,however,turnoverthemoneyinthebond  fundto_Hartsville_.d #  5      ׀Despite_Hartsville_sdemands,Bankrefusedtotenderthismoney,claimingthat  _Hartsville_Ԁwasnotentitledbecausethemoneywasthesolepropertyofthebondholders. t   _Hartsville_Ԁfiledsuitinthe_Trousdale_ԀCountyChanceryCourt,seekingajudgmentagainst L  Bankfortheamountheldinthebondfund._Hartsville_Ԁclaimedthebondfundwasanassetofthe 8  hospital,andBankrelinquishedanyclaimtothebondfundbysigningthereleaseagreement.#XaXXXa#XaXXXaԀBank $ t answered,denying_Hartsville_Ԁhadanyrighttothebondfundmoney.Thereafter,bothpartiesfiled  ` amotionforsummaryjudgment.Thetrialcourtgranted_Hartsville_smotiononMarch6,1997,  L  holdingthat_Hartsville_Ԁwasentitledtojudgmentasamatteroflaw.FollowingappealbyBank,the  8  CourtofAppealsreversedandremandedthecase,holdingmaterialissuesoffactremained. $    Onremand,thecasewasheardonJune28,1999.Followingabenchtrial,theChancellor   enteredanjudgmentinfavorof_Hartsville_.Indeliveringhisopinion,theChancellorclassifiedthe   moneyheldinthebondfundas rentpaid.#XaXXXa#XaXXXaԀFurther,thetrialcourtfound,byvirtueoftherelease   agreement,theBankreleasedanyrighttothemoneyheldinthebondfund.Bankappeals. p   Onappeal,Bankclaimsthatthecourterredinholdingthat_Hartsville_Ԁwasentitledtothe H moneyheldinthebondfund.Inthealternative,Bankassertsthat_Hartsville_Ԁis_estopped_Ԁfrom 4 claiminganinterestinthebondfundmoney.  p    ANALYSIS H      Thestandardofreviewforanonjurycaseisdenovoupontherecord.Wrightv.Cityof   Knoxville,898S.W.2d177,181(Tenn.1995).Thereisapresumptionofcorrectnessastothetrial   courtsfactualfindings,unlessthe preponderanceoftheevidenceisotherwise.T#DXXa{ #DENN#D$#XaXD.R.A#DXXa=%#DPP#D䵅%#XaXD.P.  Rule13(d).Forissuesoflaw,thestandardofreviewisdenovo,withnopresumptionofcorrectness.  _Ridings_Ԁv.RalphM.ParsonsCo.,914S.W.2d79,80(Tenn.1996).#XaXXXa #XaXXXaԀ#XaXXXa'#XaXXXaԀInthecaseatbar,theonly  issueinvolvestheinterpretationofcertainprovisionsofthereleaseagreemententeredintobythe l parties.#XaXXXaJ'#XaXXXaTheinterpretationofawrittenagreementisamatteroflawandnotoffact,therefore,our X  reviewisdenovoontherecordwithnopresumptionofthecorrectnessofthetrialcourt's D! conclusionsoflaw.UnionPlanters_Nat'l_ԀBankv.AmericanHomeAssuranceCo.,865S.W.2d907, 0"  912(Tenn.App.1993).#XaXXXaB(#XaXXXaԀ   #l!  $X"    A.OwnershipofBondFundPursuanttoContractTerms   n*  #XaXXXa*#XaXXXaTheprimaryruleininterpretingcontractsistoascertaintheintentionofthepartiesfromthe  contractasawholeandtogiveeffecttothatintentionconsistentwithlegalprinciples._Winfree_Ԁv. t EducatorsCreditUnion,900S.W.2d285,289(Tenn.Ct.App.1995);_Rainey_Ԁv._Stansell_,836 ` S.W.2d117,118(Tenn.Ct.App.1992).Inconstruingcontracts,thewordsexpressingtheparties' L  intentionsshouldbegiventheirusual,natural,andordinarymeaning.Taylorv.WhiteStores,Inc., 8  707S.W.2d514,516(Tenn.Ct.App.1985).Intheabsenceoffraudormistake,acontractmustbe $ t interpretedandenforcedaswritten,eventhoughitcontainstermswhichmayseemharshorunjust.  ` _Heyer_-Jordan&_Assocs_.v.Jordan,801S.W.2d814,821(_Tenn.App_.1990).  L  #XaXXXa +#XaXXXa  Anambiguityinacontractischaracterizedasdoubtoruncertaintyarisingfromthe $  possibilityofthesamelanguagebeingfairlyunderstoodinmorewaysthanone.Hillisv.Powers,   875S.W.2d273,276(Tenn.App.1993).However,thepartiestoacontractcannotcreatean   ambiguitywherenoneexists.Edwardsv.TravelersIndemnityCo.,201Tenn.435,300S.W.2d615,   617-618(1957)."Wherethereisnoambiguity,itisthedutyofthecourttoapplytothewordsused   theirordinarymeaningandneitherpartyistobefavoredintheirconstruction."_Heyer_-Jordan& p Assoc.v.Jordan,801S.W.2d814,821(Tenn.App.1990).#XaXXXa/#XaXXXaԀWenowturntothecontracttermsat \ issueinthiscase. H #XaXXXa'3#XaXXXa  Threedifferentphrasescontainedwithinthereleaseagreementpertaintothebondfund.In  p thegenerallanguageofthereleaseagreement,#XaXXXa3#XaXXXatheBankagreesitwillhave, ...nofurtherinterestof  \ anykindinanycollateralsecuringrepaymentoftheBondsoranyrighttorentpaidoraccrued H pursuanttothetermsoftheLease.#XaXXXa4#XaXXXaUnderthesectiontitledObligationsofParties,theBankagreed 4 to .. #XaXXXa5#XaXXXareleaseandterminateallliens,securityinterestsandassignmentsinallassetsgrantedinthe   IndentureorbyotherinstrumenttotheTrusteebytheBoardor_Hartsville_Ԁtosecuretherepayment   oftheBonds,includingbutnotlimitedtoassetsownedbytheBoardandleasedto_Hartsville_Ԁunder  thetermsoftheLease,andincludingbutnotlimitedtotheterminationandreleaseoftheDeedof  Trust,theAssignmentofLeaseandtheSecurityInterests.#XaXXXa6#XaXXXaUndertheCharacterofPaymentsection,  thepartiesagree_Hartsville_spaymentofseventyfivethousanddollarstoBank #XaXXXa-9#XaXXXaԀisfullpayment, ...of l allamountsnecessarytoobtaintheTrusteesreleaseofallliens,securityinterests,andassignments X  andtheTrusteesagreementnottopursuelitigationagainst_Hartsville_Ԁortheassetssecuringthe D! repaymentoftheBonds.Nootherpaymentofrentorotherchargesorobligationsisorwillbeowed 0"  by_Hartsville_. #l!   Wefindnoambiguityintheseprovisions.Eachprovisionisconsistentwiththeother,as $D # wellasthepurposeofthereleaseagreementasawhole.Thepartiesnegotiatedforacomplete %0!$ releaseofallliens,securityinterests,collateral,andassignmentsheldbyBank.Byitsverynature, &"%  thecontentsofthebondfundfallswithinthesecategories.#DXXa%#DԀ#D0>#XaXD#XaXXXa.:#XaXXXaThebondfundconsistsofrentpayments, '#& revenues,andreceiptscollectedundertheleaseagreement. #  6      ׀Wealsofinditappropriatetonotethat   whilethebondfundisnotspecificallymentionedinthereleaseagreement,theagreement,byits  terms,isnotlimitedtonamedassets.Therefore,undertheusual,naturalandordinarymeaningof  thecontractterms,theBankrelinquishedanyclaimtothebondfundwhenitenteredintotherelease t agreementwith_Hartsville_.Accordingly,thetrialcourtdidnoterronthisissue. `    @  @` #XaXXXa>#XaXXXa B.Estoppel 8       Asanalternative,Bankclaimsthat_Hartsville_Ԁis_estopped_Ԁfromassertingownershipofthe  ` moneyheldinthebondfund.Insupportofthisargument,Bankreliesontheconversationbetween  L  Banksattorneyand_Hartsville_sattorneyonFebruary3,1994.Bankclaimsitreliedonthis  8  conversationwhenmakingandperformingthereleaseagreement.Baseduponthefollowing,we $  findthatestoppelisnotappropriateinthiscase.     ThedoctrineofestoppelisnotfavoredunderTennesseelaw.Thepartyseekingtoinvoke   estoppelhastheburdenofprovingeachandeveryelement.Robinsonv.TennesseeFarmersMut.   Ins.Co.,857S.W.2d559,at563(_Tenn.App_.1993)citing_Bokor_Ԁv.Holder,722S.W.2d676 p (_Tenn.App_.1986).ThisCourtaddressedthedoctrineofequitableestoppelinConsumerCredit \ Unionv._Hite_,whichheld: H   8  Theessentialelementsofanequitableestoppelasrelatedtotheparty_estopped_Ԁare  p saidtobe(1)Conductwhichamountstoafalserepresentationorconcealmentof  \ materialfacts,or,atleast,whichiscalculatedtoconveytheimpressionthatthefacts H areotherwisethan,andinconsistentwith,thosewhichthepartysubsequently 4 attemptstoassert;(2)Intention,oratleastexpectationthatsuchconductshallbe   acteduponbytheotherparty;(3)Knowledge,actualorconstructiveoftherealfacts.   ЀAsrelatedtothepartyclaimingtheestoppeltheyare(1)Lackofknowledgeandof  themeansofknowledgeofthetruthastothefactsinquestion;(2)Relianceuponthe  conductoftheparty_estopped_;and(3)Actionbasedthereonofsuchacharacteras  tochangehispositionprejudicially,19_Am.Jur.Estoppel_ԀSec.42,pp.642-643.l     _Hite_,801S.W.2d822at825(Tenn.Ct.App.1990),citingCallahanv.Townof_Middleton_, D! 41_Tenn.App_.21,292S.W.2d501(1954). 0"    Wefinditnecessarytoaddressonlyoneofthefactorslistedabove:theallegedrelianceof $X" Bankon_Hartsville_sconduct.TheconversationonwhichBankclaimsitreliedtookplaceafterboth $D # partieshadreviewedandsignedtheagreement.Accordingly,sincebothpartieswerealreadybound %0!$ undertheagreementatthetimeoftheconversation,Bankdidnotrelyontheconversationtoits &"%  detrimentwhenmakingtheagreement.Atthetimeoftheconversation,Bankwasalreadyobligated '#& toperform.WefindthatBankdidnotmeetitsburdenofproofonthiselement.Therefore,thetrial  courtdidnoterronthisissue.     CONCLUSION t  #XaXXXa#B#XaXXXa    Fortheforegoingreasons,thedecisionofthetrialcourtisherebyaffirmed.Costsofappeal L  aretaxedtoAppellant,BayNationalBank&TrustCompany,forwhichexecutionmayissue,if 8  necessary.#XaXXXaP#XaXXXa $ t   #XaXXXa(R##DXXav>#XaXD   `     h     ___________________________________      `     h     ALANE.HIGHERS,JUDGE