ÿWPCô  bUrW6ûS€¾ fÓ𬖼åúÎ:i­Ðq’y5™7ÑrÑÜž00bJ5»ùÀXÔK‘‹’þ†C F,Ø嘳9¯¤„Âf´¶EÚøÍ€ ‘w™)ÕDÑÛÛät‡Ž%~gã®x&ɦÒ×gà¹Àüz¿èÛ„À¹æ¬lźMËohMj.<u\ï;"ÿ9àR¥ Ï)WPÂëèÈÙŒãî€5r…~¯£ÃÛqIHݘ»R¥ÖäÞH ÿÓF O¤ÑY'R®……ÛÉwµœ˜qUzc0.Õ!A;·ví¡kH+tÂÑ +ÏvøI)šãÖÂ3¢4Åõ¹!†z«zû`‘u#°³<-_m…fUI– ƒ‹x"|@@}û0Í“Óa|˜«!ìŠÀO9ôuüº*ò—¡¿¹-©©–º†öV iïù6'Γc_%èsî–Lí*r3ØŒ¦ ° 5r¬I¤‰`rp—mˆ—åæxÆ¡'ùŒ éuÜVÔ¿èªìh¦çÃaQWÐ|ú“|b°`‡ Þ¾[aßô\ÌFŽ7<@,‘ãXÖci2óFïõµçX]+æ^‹V4=¦¿™]y®X­ï?ö !)ÙÉEpµnã=—R Lv1gæÒ*# LU:W %‘ 0(—b ¿w@Ë4 .6U:;;;;;;;;;;;;;;;;;;;;; AQuÆÆ 0DŒ 0DÐ 0D  D/X B‡ B¤ D3Á ˜HP LaserJet 4SiHPPCL5MS,ü,,,,,ü0nLhÎ, øð AZ‹"Arial RegularX($¡¡- ù - YZD[U\U]U^D_`DaÓ€kÖ…#%3|xk ûÝ ƒ"¯"ÝÝ  ÝÔ€ XÍXXXÔÔ€ 3X XÍÔÓ  Óò òÔ Ad ÔFILEDÔ€ XÍX 3ÔÐ  ÐÌSeptember€24,€1998ÌÌCecil€W.€CrowsonÌAppellate€Court€ClerkÔdAhÔó ó,c½¬AZ‹"Arial Regular!"#$&Cþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5(3¯$¢¢Ý ƒ!ÝÝ  Ý(3¯$££Ý ƒ!ÝÝ  Ý($$””ò òÚ  Ú1Ú  Úó ó(('÷ÿ dxd düÿP Pd'''''ÿÿdxdÝ ƒ!ÝÝ  Ýñañ›ñañÒ€°ÒÒ„°ÒÑÜ°ÑÑTR[  AØ'ÿ Legal3Ø' AØ'ÿ Legalÿ3Ø'TÑÑ€ÑÑ7€ÍXXdædÈ7ÑÑ  ÑÑ  Ñò òÔ€¼fY¼XXÔÓ  Óñkññañßr€ )<,(j 8` `€€@EôÝ` 8ttxP,Üð  rßñaññkññkññkññkññañ›ñaññkññkññkññkñ›ñkññkñ›ñkñà@  êàIN€THE€COURT€OF€APPEALS€OF€TENNESSEEˆÌñkñœßt€ )>.*jx¾þÖ` `€€@E²Æ` 8ttxPêþð È tß›ñkñà@¦¦(êàAT€NASHVILLEó óÔ€XÍX¼¼fYԈРð ÐÌÌÌÌMETRIC€PARTNERS€GROWTHà 8 àà  à)Ð œ À ÐSUITE€INVESTORS,€L.P.,à à àà 8 àà  à)Ð ‚ ¦ Ðà Ø àà 0 àà ˆ àà à àà 8 àà  à)Ìà Ø àPlaintiff/Appellee,à à àà 8 àà  à)Ð Nr  Ðà Ø àà 0 àà ˆ àà à àà 8 àà  à)à è àÐ 4X  ÐœVS›.à Ø àà 0 àà ˆ àà à àà 8 àà  à)Ð >  Ðà Ø àà 0 àà ˆ àà à àà 8 àà  à)à è àÐ $  ÐNASHVILLE€LODGING€COMPANY;à  à)à è àAppeal€No.à ˜ àà ð àà H! àà  # àÐ æ  Ð2300€ELM€HILL€PIKE,€œINC.ñ]ñ›ñ]ñ,›à 8 àà  à)à è à01„A„01„9712„CH„00723Ð Ìð  Ðà Ø àà 0 àà ˆ àà à àà 8 àà  à)Ìà Ø àDefendant/Appellant,à 8 àà  à)à è àDavidson€ChanceryÐ ˜¼ Ðà Ø àà 0 àà ˆ àà à àà 8 àà  à)à è àNo.€96„1405„IIIÐ ~¢ Ðandà Ø àà 0 àà ˆ àà à àà 8 àà  à)Ð dˆ Ðà Ø àà 0 àà ˆ àà à àà 8 àà  à)ÌORLANDO€RESIDENCE,€LTD.;€andà  à)Ð 0T ÐLA€SALLE€NATIONAL€BANK€asà 8 àà  à)Ð : Ðtrustee€under€that€certain€pooling€à  à)Ð ü  Ðand€servicing€agreement€dated€à 8 àà  à)Ð â ÐJuly€11,€1995,€for€the€holders€of€theà  à)Ð Èì ÐœWHP›€Commercial€Mortgage€Passà  à)Ð ®Ò ÐThrough€Certificates,€Series€œ1995C1›,à  à)Ð ”¸ Ðand€ROBERT€M.€HOLLAND,€JR.,à  à)Ð zž ÐTrustee,à 0 àà ˆ àà à àà 8 àà  à)Ð `„ Ðà Ø àà 0 àà ˆ àà à àà 8 àà  à)Ìà Ø àDefendants/Appellants.à 8 àà  à)Ð ,!P ÐÌÌà@U U êàAPPEALED€FROM€THE€CHANCERY€COURT€OF€DAVIDSON€COUNTYˆÌà@#êàAT€NASHVILLE,€TENNESSEEˆÌÌà@» » êàTHE€HONORABLE€ROBERT€S.€œBRANDT›,€CHANCELLORˆÌÌÌÌÌALAN€T.€œFISTER›ÌœSTEWART,€ESTES€&€DONNELLÌ424›€Church€StreetÌNashville,€Tennessee€37219„2392ÌÌMIKE€œBUCKLEYÌCROSBY,€HEAFEY,€ROACH€&€MAY›Ì1999€Harrison€StreetÌOakland,€California€94604„2084Ìà Ø àAttorneys€for€Plaintiff/AppelleeÌÌSAMUEL€L.€œFELKER›ÌJOSEPH€F.€œWELBORN›,€œIIIÌBASS,€BERRY€&€SIMS›Ì2700€First€American€CenterÌNashville,€Tennessee€37238„2700Ìà Ø àAttorneys€for€Defendant/AppellantÌœÌEUGENE›€N.€œBULSO›,€JR.Ð :;^5; ÐœBOULT,€CUMMINGS,€CONNERS€&€BERRYÌ414›€Union€StreetÌNashville,€Tennessee€37219„8062Ìà Ø àAttorney€for€Defendant/Appellee€Orlando€Residence,€Ltd.ÌÌKENNETH€M.€BRYANTÌœTRABUE,€STURDIVANT€&€DEWITTÌ522›€Union€StreetÌNashville,€Tennessee€37219„1738ÌÌHUNTER€T.€CARTERÌœARENT,€FOX,€KINTNER,€PLOTKIN€&€KAHNÌ1050›€Connecticut€Avenue,€œN.W.›ÌWashington,€D.C.€€20036„5339Ìà Ø àAttorneys€for€Defendants/Appellees€œLaSalle›€National€BankÌà Ø àand€Robert€M.€HollandÌÌÌÌÌÌà@¤¤$êàAFFIRMED€AND€REMANDEDˆÌÌÌÌÌÌà Ø àà 0 àà ˆ àà à àà 8 àà  àà è àBEN€H.€CANTRELL,€JUDGEÌÌÌCONCUR:ÌTODD,€P.J.,€M.S.ÌCAIN,€J.ÌÌÌÐ  N%r# ÐÓÓò òÔ€„,4„XXÍÔòòà@tt(êàO€P€I€N€I€O€Nóóó óÔ€XÍX„„,4ÔˆÐ Ü ÐÌà Ø àà 0 àThe€owner€of€a€hotel€subject€to€a€first€œmortgage›€œsold›€the€building€and€itsÏcontents€to€the€plaintiff€and€took€a€second€mortgage€to€secure€the€purchase€price.€ÏThe€plaintiff€also€operated€the€hotel€under€a€ground€lease€with€the€owner.€€œWhen›€theÏowner€failed€to€pay€the€first€mortgage,€the€plaintiff€sought€a€declaratory€judgment€thatÏthe€owner€was€in€default,€that€the€plaintiff€could€pay€the€first€mortgage€directly€to€theÏmortgagee,€and€that€the€plaintiff€was€discharged€from€its€obligation€to€the€owner.€€œThe›Ïowner€resisted€the€declaration€on€the€ground€that€it€had€certain€defenses€against€theÏfirst€mortgagee.€€œThe›€Chancery€Court€of€Davidson€County€granted€summary€judgmentÏto€the€plaintiff.€€We€affirm.ÌÌà@²²-êàò òI.ó óˆÐ Lp ÐÌà Ø àà 0 àIn€1983€National€Lodging€Company€(œNLC›)€borrowed€the€money€toÏfinance€the€construction€of€a€œMarriott›€Hotel€in€Nashville.€€œNLC›€signed€a€note€and€deedÏof€trust€giving€the€lender€a€first€mortgage€on€the€property.€€œThe›€original€lender€wentÏinto€receivership€and€the€œnote€became›€the€property€of€the€Resolution€TrustÏCorporation.€€The€note€passed€through€two€other€hands€before€it€was€finallyÏtransferred€to€œLaSalle›€œNational›€Bank,€and€it€is€referred€to€throughout€the€record€as€ð ðtheÏœLaSalle›€note.ððÌÌà Ø àà 0 àIn€1989€œNLC›€sold€the€hotel€improvements€to€the€plaintiff,€Metric€œPartners›ÏGrowth€Suite€Investors,€L.P.,€and€entered€into€a€long€term€ground€lease€with€Metric.€ÏMetric€executed€a€note€to€œNLC›€secured€by€a€deed€of€trust€on€the€hotel€improvements.€ÏThus,€Metric€made€monthly€payments€to€œNLC›€and€œNLC›€made€the€payments€on€theÏfirst€mortgage.ÌÐ l936 Ðà Ø àà 0 àAs€a€part€of€the€1989€transaction,€Metric,€œNLC›,€and€the€original€lenderÏentered€into€a€three€party€agreement.€€The€agreement€provided€that€in€the€event€œNLC›Ïdefaulted€on€the€payments€on€the€first€mortgage€(1)€the€lender€would€notify€Metric€ofÏthe€default€and€Metric€could€cure€the€default€within€ten€days€after€receiving€the€notice,Ïand€(2)€Metric€could€then€assume€œNLC›ððs€obligations€under€the€first€mortgage€and€beÏdischarged€from€any€further€obligations€to€œNLC›€on€the€second€mortgage.ÌÌà Ø àà 0 àIn€January€of€1996€(for€reasons€we€will€discuss€in€a€later€part€of€thisÏopinion)€œNLC›€failed€to€make€its€payment€to€œLaSalleñ]ñ›ñ]ñ,›€and€œfiled›€a€bankruptcy€petition€inÏthe€United€State€Bankruptcy€Court€for€the€Eastern€District€of€Wisconsin.€€On€April€5,Ï1996€œLaSalle›€notified€Metric€of€the€default.€€On€April€15,€1996€Metric€cured€the€defaultÏby€making€the€required€payment€directly€to€œLaSalle›.€€At€the€same€time€Metric€notifiedÏœNLC›€that€Metric€was€exercising€its€rights€to€pay€œLaSalle›€directly€under€the€three€partyÏagreement,€and€that€œNLC›€should€void€the€second€mortgage.€€When€œNLC›€refused€toÏhonor€that€arrangement€and€threatened€to€foreclose€on€the€second€mortgage,€MetricÏfiled€this€action€seeking€declaratory€and€injunctive€relief.€€œNLC›ððs€defense€rested€on€œtheÏfollowing€assertionsñ]ñ›ñ]ñ:€›€(1)€that€it€had€a€defense€against€œLaSalle›ððs€collection€of€the€note;Ï(2)€that€it€had€a€bad€faith€and€unclean€œhands›€defense€against€Metric;€(3)€that€it€wasÏnot€in€default€on€the€œLaSalle›€note;€and€(4)€that€the€three€party€agreement€did€notÏafford€Metric€relief€from€the€second€mortgage.ÌÌà@––-êàò òII.ó óˆÐ <-`'* Ðà@#êàò òThe€Recoupment€Defenseó óˆÐ /@), ÐÌà Ø àà 0 àœNLC›€asserts€that€it€was€not€in€default€on€the€œLaSalle›€note€because€it€hadÏa€$1,700.00€judgment€against€the€Resolution€Trust€corporation€(œRTC›),€one€of€theÏholders€in€œLaSalle›ððs€chain€of€title.€€The€obligation€arose€when€the€œRTC›€became€theÏreceiver€for€the€original€œlenderñ]ñ›ñ]ñ€andñ]ñ›ñ]ñ›€repudiated€a€refinancing€agreement€œNLC›€had€withÐ |8 26 Ðthe€original€œlender.€€€ñ]ñ›ñ]ñNLC›€recovered€the€judgment€œagainst€RTC€as›€compensation€forÏthe€breach.€€Since€œLaSalle›ððs€status€as€a€holder€in€due€course€is€œdisputed,›€we€willÏassume€that€this€defense,€if€it€exists,€may€be€asserted€against€œLaSalle›.ÌÌà Ø àà 0 àThe€recoupment€question€was€litigated€in€the€case€that€establishedÏœNLC›ððs€claim€against€the€œRTC›.€€œNLC›€asked€for€a€declaration€that€it€had€a€right€to€set„offÏor€recoupment€against€the€purchaser€of€the€note€from€the€œRTC›.€€The€D.C.€Circuit€heldÏthat€the€Financial€Institutions€Reform,€Recovery€and€Enforcement€Act€(œFIRREA›)Ïallowed€the€œRTC›€to€sell€the€assets€œof€a›€failed€thrift€free€and€clear€of€any€encumbrancesÏarising€from€a€borrowerððs€counterclaims;€and€that€the€purchaser€of€the€œNLC›€note€didÏnot€assume€the€claim€against€the€œRTC›.€€Therefore,€œNLC›€could€ð ðrecover€these€amountsÏonly€from€the€œRTC›€in€its€primary€claim€for€damages.ðð€€òòNashville€Lodging€Co.€v.Ð |  ÐResolution€Trust€Corp.óó,€59€F.œ3d›€236€at€247€(D.C.€Cir.€1995).Ð \€ ÐÌà Ø àà 0 àœWe›€œrecognize,€however,›€that€œNLCððs›€position€in€this€œcase€rests›€on€aÏdistinction€between€a€defense€to€the€note€and€a€œclaim›€against€the€assignee€of€theÏnote.€€The€D.C.€Circuit€acknowledged€that€such€a€distinction€might€be€made,€but€theÏcourt€refused€to€address€it€because€œNLC›€had€not€raised€it€in€that€case.€€òòSeeóó€59€F.œ3d›Ð ¼%à" Ðat€œ247.€€Thus€the€precise€question€raised€here€was€not€decided€by€the€court€in€theÏlitigation€between€NLC€and€RTC.›€€œÌñ]ñ›ñ]ñÌà Ø àà 0 àOther€courts€have€allowed€a€recoupment€defense€to€a€note€when€anÏassignee€has€sued€to€collect€the€note.€€òòSee›€œñ^ñalsoñ^ñ›€œFLSIC›€v.€œMackie›óó,€œ962›€F.œ2d›€1144€(œ5th›€Cir.Ð /@), Ð1992);€òòœDiVall›€Insured€Income€v.€Boatmenððs€First€œNatððl›€Bankóó,€69€F.œ3d›€1398€(œ8th›€Cir.Ð ü0 +. Ð1995).€€œA€recoupment›€œòòdefenseóó,€however,€even€against€a€non€holder€in€due€course,›Ð Ü2-0 Ðmust€arise€out€of€the€same€transaction€that€gave€rise€to€the€instrument.€€òòSeeóó€Tenn.Ð ¼4à.2 ÐCode€Ann.€ðð€47„3„305(a)(3);€òòHoward€v.€Abernathyóó,€751€S.W.2d€432€(Tenn.€App.Ð œ6À04 Ð1988).€€œNLC›€concedes€that€the€claim€against€the€œRTC›€arose€out€of€the€refinancingÐ |8 26 Ðagreement,€a€contract€separate€from€the€note.€€Therefore,€we€are€satisfied€that€theÏrecoupment€defense€was€not€available€to€œNLC›,€regardless€of€œwhether€RTC›€œhad€theÏpower€to›€strip€defenses€from€the€assets€it€sells.Ìñ]ñœñ]ñÌà@zz,êàò òIII.ó óˆÐ \ € Ðà@33"êàò òœNLC›ððS€Default€and€Noticeó óˆÐ <`  ÐÌà Ø àà 0 àWe€have€dealt€with€œNLC›ððs€argument€that€it€was€not€in€default€becauseÏof€the€recoupment€defense.€€œWithout›€that€defense,€œNLC›€must€concede€that€it€was€inÏdefault€for€not€making€the€January€and€February€payments€in€1996.€€It€also€mustÏconcede€that€œLaSalle›€gave€notice€of€the€default€by€letter€on€April€5,€1996.€€Therefore,Ïthe€two€conditions€precedent€to€Metricððs€action€in€curing€the€default€are€met.€€œThe›Ïð ðotherðð€defaults€alluded€to€by€the€chancellor,€of€which€œNLC›€alleges€it€had€no€notice,Ïare€œnow›€beside€the€point.ÌÌà@oo-êàò òIV.ˆÐ ü!  Ðà@ÍÍ"êàThe€Three€Party€Agreementó óˆÐ Ü#  ÐÌà Ø àà 0 àœNLC›€makes€a€similar€argument€with€respect€to€Metricððs€rights€under€theÏœthree›€œparty›€œagreement,›€i.e.,€that€because€œNLC›€was€not€in€œdefault,›€Metric€could€notÏassume€the€œNLC›€note€and€be€free€of€the€second€mortgage.€€Our€discussion€in€PartsÏII€and€III€of€this€opinion€disposes€of€this€argument€as€well.ÌÌà@‹‹-êàò òV.ˆÐ ü0 +. Ðà@¼ ¼ êàThe€Bad€Faith€and€Unclean€Hands€Defensesó óˆÐ Ü2-0 ÐÌà Ø àà 0 àœNLC›€traces€its€ill€fortune€to€an€alleged€breach€of€a€1993€settlementÏagreement€entered€into€by€œNLC›,€Metric,€and€others€in€the€California€Superior€CourtÐ |8 26 Ðat€San€œFrancisco.€€To›€settle€some€litigation€unrelated€to€the€Nashville€property,€MetricÏagreed€to€œpurchase›€the€Nashville€property€œð ðas›€is,€including€but€not€limited€to€titleÏissues.ðð€€œThe›€settlement€fell€through,€however,€when€Metric€discovered€that€œNLC›ððs€titleÏwas€clouded€by€two€actions€filed€in€Nashville€to€set€aside€fraudulent€conveyances€byÏœNLC›€and€by€some€lien€claims€that€had€been€filed€against€the€property.€€œNLC›€suedÏMetric€in€chancery€court€in€Nashville€for€breach€of€the€settlement€agreement€andÏobtained€a€judgment€of€liability.€€œThe›€damages€have€apparently€not€been€ascertained.ÌÌà Ø àà 0 àœNLC›ððs€difficulties€intensified€in€1995€when€Orlando€Residence,€Ltd.Ïobtained€a€judgment€against€œNLC›€for€a€fraudulent€œconveyance.›€€Metric€was€one€of€theÏdefendants€in€that€litigation€and€one€of€the€claimed€fraudulent€conveyances€was€theÏsale€of€the€hotel€to€Metric€in€œ1989.€€After›€obtaining€the€œjudgment,›€Orlando€served€aÏnotice€of€garnishment€on€Metric€in€December€of€1995.€€On€January€2,€1996€œNLC›€filedÏits€petition€in€bankruptcy.€€Metric€filed€an€interpleader€in€the€bankruptcy€court€andÏtendered€to€the€court€its€January€1996€payments€under€the€ground€lease€and€theÏsecond€mortgage.€€The€interpleader€alleged€that€Metric€would€continue€to€make€itsÏpayments€to€the€court€until€further€orders.ÌÌà Ø àà 0 àñ]ñœœœœñ]ñœThis›€court€reversed€the€judgment€in€favor€of€Orlando€on€December€18,Ïœ1996,€and€tñ]ñ›ñ]ñhe›€cause€was€remanded€for€a€retrial€on€all€issues.€€On€remand€the€trialÏcourt€held€that€Orlando€œwas,›€œnevertheless,›€a€bona€fide€purchaser€of€the€property€atÏœa€prior›€foreclosure€œsale.›€€The€net€result€is€that€Orlando€is€now€the€owner€of€theÏproperty€previously€owned€by€œNLC›.ÌÌà Ø àà 0 àœOn€February€13,€1996€the€bankruptcy€court€dismissed€NLCððs€petitionÏbecause€it€was€filed€in€bad€faith.€€As€we€have€indicated,€LaSalle€declared€a€default€inÏApril€of€1996€and€Metric€claimed€its€rights€under€the€three€party€agreement.ÌÐ |8 26 Ðà Ø àà 0 àNLC›ððs€bad€faith€and€clean€hands€defenses€are€primarily€based€onÏœMetricððs›€failure€to€abide€by€the€settlement€agreement€in€the€California€litigation.€€TheÏœrule€NLC€relies€on›€has€been€stated€in€many€Tennessee€cases.€€œIt€can›€be€found€œin€itsÏdistilled€form€in›€œòòGibsonððs›€Suits€in€Chanceryóó€ðð18:Ð |   ÐÓÓà8 Ø àà80 Ø ü!Ø ü!àThis€maxim€declares€that€a€plaintiff€who€has€been€guilty€ofÏunconscientious€conduct€or€bad€faith,€or€has€committedÏany€wrong,€in€reference€to€a€particular€transaction,€cannotÏhave€the€aid€of€a€Court€of€Equity€in€enforcing€any€allegedÏrights€growing€out€of€such€transaction.€€In€the€origin€of€theÏjurisprudence,€the€theory€was€adopted€that€a€Court€ofÏEquity€interposed€only€to€enforce€the€requirements€ofÏgood€conscience€and€good€reason€as€to€matters€notÏequitably€determinable€in€the€Law€Courts.€€ThisÏinterposition€being€deemed€a€matter€of€grace,€it€would€notÏbe€exercised€in€favor€of€a€person€whose€conduct€in€theÏmatter€complained€of€had€been€unconscientious,€or€in€badÏfaith,€or€who€had€violated€any€of€those€principles€of€EquityÏand€righteous€dealing,€which€the€Court€had€beenÏconstituted€to€enforce.Ð 0 ¤0 ¤ ÐÌÓÓœAlthough€used€chiefly€in€cases€seeking€equitable€relief,€the€bad€faith/clean€handsÏdefense›€has€been€held€to€apply€to€legal€claims,€òòContinental€Bankers€Life€œIns›.€Co.€v.Ð <` ÐœSimmons›óó,€561€S.W.2d€460€(Tenn.€App.€œ1977)ñ]ñ›ñ]ñ.€€But›€the€unconscientious€conduct€mustÐ  @ Ðarise€out€of€the€particular€transaction€which€is€the€subject€of€the€litigation.€€òòœHogue›€v.Ð ü!  ÐœKroger›€Co.óó,€373€S.W.2d€714€(Tenn.€1964).Ð Ü#  ÐÌà Ø àà 0 àThe€California€litigation€does€have€a€connection€to€the€Nashville€propertyÏsince€œMetric›€was€to€purchase€the€property€as€part€of€that€agreement.€€œBut›€the€legalÏrights€and€liabilities€involved€in€that€litigation€were€entirely€separate€from€the€financingÏof€the€Nashville€property€or€the€1989€œthree›€œparty›€œagreement.›ÌÌà Ø àà 0 àœNLC›€argues€that€œMetricððs›€failure€to€purchase€the€Nashville€propertyÏforced€œNLC›€into€default.€€That€may€or€may€not€be€true,€but€that€claim€is€the€subject€ofÏa€separate€action€for€which€œNLC›€is€seeking€a€judgment€for€œdamages.€€ñ]ñ››ñ]ñWe€assume›€thatÏits€damages€claim€will€include€its€losses€resulting€from€its€default€on€the€œLaSalle›€note.ÌÐ |8 26 Ðà Ø àà 0 àFor€all€of€these€reasons,€we€affirm€the€chancellorððs€decision€to€disallowÏthe€good€faith/clean€hands€œdefense.Ìñ]ñ›ñ]ñÌà Ø àà 0 àFinally,€there€are€no€facts€in€this€record€from€which€an€inference€couldÏbe€drawn€that€Metric€acted€in€any€way€except€in€accordance€with€its€best€businessÏjudgment.€€That€does€not€mean€that€it€is€free€of€a€claim€that€it€violated€NLCððs€legalÏrights.€€But€it€does€mean€that€there€is€no€proof€that€would€meet€the€burden€NLC€hasÏto€meet.›ÌÌà Ø àà 0 àThe€judgment€of€the€court€below€is€affirmed€and€the€cause€is€remandedÏto€the€Chancery€Court€of€Davidson€County€for€any€further€proceedings€that€mayÏbecome€necessary.€€Tax€the€costs€on€appeal€to€the€appellant.̛̜ÌÓÓà Ø àà 0 àà ˆ àà à àà 8 àà  àà è à____________________________Ìñ]ñœñ]ñà Ø àà 0 àà ˆ àà à àà 8 àà  àà è àBEN€H.€CANTRELL,€JUDGEÌÌÌÌCONCUR:ÌÌÌÌÌœ_______________________________›ÌœHENRY€F.€TODD,€PRESIDING€JUDGEñ]ñ›ñ]ñÌñ]ñ›ñ]ñMIDDLE€SECTION›ÌÌÌÌœÌ_____________________________ñ]ñ›ñ]ññXñ__ñXñ›ÌœñWñWILLIAM€B.€CAIN,€JUDGEñWñ›Ìœñ`ñÐ  ì1,/ Ðñ`ññ]ñœñ]ññ`ñ›ñ`ñÑ  ÑÔ€¼g§¼XXygÔò òñ`ñà@êê.êàñ`ñ›œñ_ñIN€THE€COURT€OF€APPEALS€OF€TENNESSEEˆÐ Ü Ðà@™™(êàAT€NASHVILLEñ_ñó óñ_ñÔ€XygX¼¼g§ÔˆÐ ò ÐÌÌÌÌÌMETRIC€PARTNERS€GROWTHà 8 àà  à)Ð ¸ Ü ÐSUITE€INVESTORS,€L.P.,à à àà 8 àà  à)Ð ¨ Ì Ðà Ø àà 0 àà ˆ àà à àà 8 àà  à)Ìà Ø àPlaintiff/Appellee,à à àà 8 àà  à)Ð ˆ¬  Ðà Ø àà 0 àà ˆ àà à àà 8 àà  à)à è àÐ xœ  ÐœVS›.à Ø àà 0 àà ˆ àà à àà 8 àà  à)Ð hŒ  Ðà Ø àà 0 àà ˆ àà à àà 8 àà  à)à è àÐ X|  ÐNASHVILLE€LODGING€COMPANY;à  à)à è àAppeal€No.à ˜ àà ð àà H! àà  # àÐ Hl  Ð2300€ELM€HILL€PIKE,€œINC.ñYñ,ñYññ_ññZñ;ñZññ_ñ›à 8 àà  à)à è à01„A„01„9712„CH„00723Ð 8\ Ðà Ø àà 0 àà ˆ àà à àà 8 àà  à)Ìà Ø àDefendant/Appellant,à 8 àà  à)à è àDavidson€ChanceryÐ < Ðà Ø àà 0 àà ˆ àà à àà 8 àà  à)à è àNo.€96„1405„IIIÐ , Ðandà Ø àà 0 àà ˆ àà à àà 8 àà  à)Ð ø Ðà Ø àà 0 àà ˆ àà à àà 8 àà  à)ÌORLANDO€RESIDENCE,€LTD.;€andà  à)Ð Øü ÐLA€SALLE€NATIONAL€BANK€asà 8 àà  à)Ð Èì Ðtrustee€under€that€certain€pooling€à  à)Ð ¸Ü Ðand€servicing€agreement€dated€à 8 àà  à)Ð ¨Ì ÐJuly€11,€1995,€for€the€holders€of€theà  à)Ð ˜¼ ÐœWHP›€Commercial€Mortgage€Passà  à)à è àAffirmedÐ ˆ¬ ÐThrough€Certificates,€Series€œ1995C1›,à  à)à è àandÐ xœ Ðand€ROBERT€M.€HOLLAND,€JR.,à  à)à è àRemandedÐ h Œ ÐTrustee,à 0 àà ˆ àà à àà 8 àà  à)Ð X!| Ðà Ø àà 0 àà ˆ àà à àà 8 àà  à)Ìà Ø àDefendants/Appellants.à 8 àà  à)Ð 8#\ ÐÌÔ€¼g§¼XXygÔò òòòÌà@uu'êàJ€U€D€G€M€E€N€Tóóó óˆÐ .&R " ÐÔ€XygX¼¼g§ÔÓÓÌà Ø àà 0 àThis€cause€came€on€to€be€heard€upon€the€record€on€appeal€from€theÏChancery€Court€of€Davidson€County,€briefs€and€argument€of€counsel;€uponÏconsideration€whereof,€this€Court€is€of€the€opinion€that€in€the€decree€of€the€ChancellorÏthere€is€no€reversible€error.ÌÌà Ø àà 0 àIn€accordance€with€the€opinion€of€the€Court€filed€herein,€it€is,€therefore,Ïordered€and€decreed€by€this€Court€that€the€decree€is€affirmed.€€The€cause€isÏremanded€to€the€Chancery€Court€of€Davidson€County€for€the€enforcement€of€theÏdecree€and€for€the€collection€of€the€costs€accrued€below.ÌÐ :(47W Ðà Ø àà 0 àCosts€of€this€appeal€are€taxed€against€Nashville€Lodging€Company,ÏPrincipal,€and€Bass,€Berry€&€œSims›,€Surety,€for€which€execution€may€issue€if€necessary.ÌÌÌÌÓÓà Ø àà 0 àà ˆ àà à àà 8 àà  à________________________________Ìà Ø àà 0 àà ˆ àà à àà 8 àà  àHENRY€F.€TODD,€P.J.,€œM.S.ñ\ñÌñ\ñ›Ìœñ[ñÌñ[ñ›Ìà Ø àà 0 àà ˆ àà à àà 8 àà  à________________________________Ìà Ø àà 0 àà ˆ àà à àà 8 àà  àBEN€H.€CANTRELL,€JUDGEÌÌœñ]ñÌñ]ññ_ññ]ñ›ñ]ññ_ññ]ñÌñ]ñ›à Ø àà 0 àà ˆ àà à àà 8 àà  à________________________________Ìà Ø àà 0 àà ˆ àà à àà 8 àà  àWILLIAM€B.€CAIN,€JUDGEñ_ñ›