ÿWPCø  # ÐUNÛ %) 0(/w@W4—«º 0J 0T  0^` 0h¾ 0r& 0|˜ 0† 0š 1u* 0dŸU>fAv~§vÓ% ˜HP LaserJet 4SiHPPCL5MS,ü,,,,,ü0nLhÎ(ÈhH  Z 6Times New Roman RegularX($¡¡ 1 D2 D3 D4 D5 e6 r‚7 P8 E9 [: @1d3|x: 2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô  ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)P ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ< Œ 9p`(&Times New Roman \Ñ\R AØ'\ÑPtPtHHÚ(ÿáÿâùFG(üHHØ(d'`Styl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑGenevaÑÑ ÑÒ  ion-F Geneva ÒÒ  ion-F Geneva ÒÝ ƒ!ÝÔ . ÔÔ€ÔÝ  ÝÓ  ÓÑ\R AØ'\Ñ›Þ ÞÌà@ àà@ àò òIN€THE€COURT€OF€APPEALS€OF€TENNESSEEÌà@ àWESTERN€SECTION€AT€JACKSONÌ€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€òò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€ÌóóÌUNITED€AMERICAN€BANK€€€€€€€à àà à)ÌOF€MEMPHIS,à àà àà àà à)Ìà àà àà àà àà àà à)Ìà àó óPlaintiff/Appellee,ò òà àà àó óà àò ò)à àó óShelby€Law€No.€64144€Ìà àà àà àà àà àà àò ò)Ìvs.à àà àà àà àà àà à)Ìà àà àà àà àà àà à)à àó óAppeal€No.€02A01„9605„CV„00094ò òÌMYLAN€FINANCIAL€SERVICES,€INC.,€)Ìà àà àà àà àà àà à)Ìà àó óDefendant,€à à€à àà àò òà à)à àÌà àà àà àà àà àà à)Ìand€STANLEY€R.€WAXMAN,à àà à)Ìà àà àà àà àà àà à)Ìà àó óDefendant/Appellant.à àà àà àò ò)Ìòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€óóÌÌSTANLEY€R.€WAXMAN,à àà àà à)Ìà àà àà àà àà àà à)Ìà àó óPlaintiff/Appellant,à àà àà àò ò)à àó óShelby€Equity€No.€107276„2Ìà àà àà àà àà àà àò ò)ó óà à(Consolidated€with€Shelby€Law€No.€64144Ìò òvs.à àà àà àà àà àà à)à àó ó€€on€appeal)Ìà àà àà àà àà àà àò ò)ÌUNITED€AMERICAN€BANK€à àà à)ÌOF€MEMPHIS,à àà àà àà à)à àó óAppeal€No.€02A01„9608„CH„00184Ìà àà àà àà àà àà àò ò)à àó ó(Consolidated€with€No.€02A01„9605„CV„00094Ìà àDefendant/Appellee.à àà àà àœò ò)à à€€ó óon€appeal)›Ìœ›Ìà0 àà àà@ àAPPEAL€FROM€THE€CIRCUIT€COURT€OF€SHELBY€COUNTYÌà@ àAT€MEMPHIS,€TENNESSEEÌÌÌà@ àTHE€HONORABLE€JANICE€HOLDER,€JUDGEÌÌÌòòÌFor€the€Defendant/Appelleeóó:à àà àòòà àFor€the€Plaintiff/Appellantóó:ÌÌRichard€J.€Myers€€€€€€à àà àà àà àStanley€R.€Waxman,€Pro€SeÌMemphis,€Tennessee€€€€€à àà àà àMemphis,€TennesseeÌ€€€€€€€€€€€€€€€€€€€€ÌÌà àà àà àà àà àà àò òAFFIRMEDó óÌÌÌÌà àà àà àà àà àà àHOLLY€KIRBY€LILLARD,€J.ÌÌÌCONCUR:ÌÌÌW.€FRANK€CRAWFORD,€P.J.,€W.S.ÌÌÌALAN€E.€HIGHERS,€J.€ÇØØÙ  ÙÓÓÑ7€l¾XXdðXXdð7ÑÑ  Ñà@ àò òOPINIONó óÌà àThis€case€involves€an€action€to€recover€on€a€loan€guarantee.€€The€trial€court€entered€aÏjudgment€in€favor€of€the€plaintiff€bank€against€the€individual€guarantor.€€We€affirm.Ìà àPlaintiff/Appellee€United€American€Bank€of€Memphis€(ð ðœUABðð)€loaned€Defendant€MylanÏFinancial€Services,€Inc.€(ð ðMylanðð)€$50,300,€which€was€to€be€repaid,€with€interest,€in€ninety€days.€ÏMylanððs€president€and€board€chairman,€Defendant/Appellant€Stanley€R.€Waxman€(ð ðWaxmanðð),Ïsigned€a€personal€guaranty€to€secure€the€loan.€€The€guaranty€states,€in€pertinent€part,€that€Waxman:ÌÓÓà8 à.€.€.€jointly€and€severally€guarantee[s]€the€full€and€prompt€payment€to€said€BankÏ[UAB]€.€.€.,€howsoever€evidenced,€whether€now€existing€or€hereafter€created€orÏarising,€whether€.€.€.€through€discount,€overdraft,€purchase,€direct€loan€or€asÏcollateral,€or€otherwise;€and€[Waxman]€further€agree[s]€to€pay€all€expenses,€legalÏand/or€otherwise.€.€.€.ÌÌà@ à*€*€*Ìà8 àThis€guaranty€shall€be€a€continuing,€absolute€and€unconditional€guaranty,€and€shallÏremain€in€full€force€and€effect€.€.€.€until€any€and€all€said€indebtedness€.€.€.€shall€beÏfully€paid.ÌÌÓÓWaxman€then€assigned€100,000€shares€of€Members€Service€Corporation€stock€to€UAB€asÏcollateral€for€the€loan.€€The€guarantee€stated€expressly€that€it€was€unaffected€by€UABððs€action,€orÏinaction,€with€respect€to€any€collateral:ÌÓÓà8 àThe€liability€hereunder€shall€in€no€wise€be€affected€or€impaired€by€.€.€.€anyÏacceptance€by€said€Bank€of€any€security€.€.€.€or€by€any€failure,€neglect€or€omissionÏon€the€part€of€said€Bank€to€realize€upon€or€protect€any.€.€.€collateral€or€security.ÌÌà8 à[T]here€shall€be€no€obligation€on€the€part€of€the€said€Bank€at€any€time€to€first€.€.€.Ïexhaust€its€remedies€against.€.€.€any€collateral,€security,€property,€liens€or€otherÏrights€whatsoever.ÌÌÓÓà àDuring€the€ninety€days€leading€up€to€the€due€date€on€the€loan,€Waxman€made€some€interestÏpayments.€During€this€period€the€value€of€the€stock,€originally€$2.625€per€share,€fell€to€nearlyÏnothing.€€When€the€debt€became€due,€UAB€extended€the€due€date€by€four€days,€and€WaxmanÏallegedly€paid€$10,000€towards€the€principle€of€the€loan.€€When€final€payment€was€demanded,Ïboth€Mylan€and€Waxman€refused€to€pay.€€UAB€then€filed€suit€against€both.Ìà àIn€Waxmanððs€answer,€he€admitted€the€debt€and€his€obligation€as€guarantor.€€His€primaryÏdefense€was€that€UAB€had€a€duty€to€liquidate€the€stock€when€the€value€started€dropping,€whenÏsuch€liquidation€would€have€paid€off€the€debt,€and€that€UAB€failed€to€do€so.€€Waxman€argues€ÍUAB€should€therefore€be€barred€from€seeking€recovery€against€him€as€guarantor.€Ìà àUAB€filed€a€motion€for€summary€judgment.€€The€trial€court€denied€UABððs€motion€in€orderÏto€allow€Waxman€to€conduct€discovery.€€UAB€eventually€renewed€its€motion€for€summaryÏjudgment.€€à àIn€its€motion€for€summary€judgment,€UAB€noted€that€Waxmanððs€answer€admittedÏthe€following:ÌÓÓà8 à1.€€Mylan€and€Waxman€entered€into€the€Note€and€Guaranty;Ìà8 à2.€€The€Note€requires€the€defaulting€party€to€pay€all€costs€of€collection,€includingÏattorneyððs€fees;Ìà8 à3.€€The€Guaranty€obligates€Waxman€to€pay€the€loan€evidenced€by€the€Note€plusÏinterest€and€expenses;Ìà8 à4.€€The€loan€evidenced€by€the€Note€is€in€default;Ìà8 à5.€€The€amount€due€on€the€Note€as€of€August€19,€1994€is€$41,388.06€in€principalÏand€interest€with€interest€accruing€at€a€rate€of€$9.73€thereafter.à à€ÌÌÓÓWaxman€denied€only€the€late€charges€due€on€the€account,€stating€that€they€were€ð ðnot€in€accord€with€ÏNote.ðð€€UAB€maintained€that€the€only€evidence€upon€which€Waxman€relied€was€his€own€testimonyÏthat€he€was€told€by€a€UAB€officer€that€if€the€price€of€the€stock€pledged€as€collateral€fell€below€aÏcertain€level,€he€ð ðwould€have€to€sell€the€securities.ðð€€UAB€asserted€that€this€evidence€wasÏinadmissible€parol€evidence€which€directly€contradicted€the€plain€terms€of€the€guaranty.€€Ìà àIn€a€brief€order,€the€trial€court€granted€summary€judgment€in€favor€of€UAB.€The€trial€courtÏsubsequently€held€a€hearing€on€damages,€and€entered€judgment€for€UAB€in€the€amount€ofÏ$56,450.98€in€principal,€interest,€late€fees€and€attorneyððs€fees.€€Waxman€then€filed€several€postÏjudgment€motions,€which€were€denied.€€Waxman€now€appeals€the€grant€of€summary€judgment€inÏfavor€of€UAB€and€the€trial€courtððs€denial€of€Waxmanððs€post„trial€motions.Ìà àThis€Court€must€determine€whether€summary€judgment€was€properly€granted€in€this€case.€ÏSummary€judgment€is€appropriate€where€there€is€no€genuine€issue€of€material€fact€relevant€to€theÏclaim€or€defense€contained€in€the€motion,€and€the€moving€party€is€entitled€to€a€judgment€as€a€matterÏof€law.€€òòò òCarvell€v.€Bottomsó óóó,€900€S.W.2d€23,€26€(Tenn.€1995);€ò òòòByrd€v.€Hallóóó ó,€847€S.W.2dÏ208,€210€(Tenn.€1993).€€In€our€consideration€of€whether€the€motion€for€summary€judgment€wasÏproperly€granted€in€this€case,€we€must€view€the€evidence€in€the€light€most€favorable€to€theÍnonmoving€party€and€draw€all€reasonable€inferences€in€the€nonmoving€partyððs€favor.€ò òòòByrdóóó ó,€847ÏS.W.2d€at€210„11.Ìà àWaxman€argues€that€the€trial€court€erred€in€granting€UABððs€motion€for€summary€judgment.€ÏUAB€contends€that€summary€judgment€was€appropriate€because€Waxman€admitted€the€debt€in€hisÏanswer€and€because€Waxman€had€no€evidence€to€support€his€affirmative€defense€exceptÏinadmissible€parol€evidence.€€UAB€also€maintains€that€the€guaranty€Waxman€signed€stated€thatÏWaxman€was€responsible€for€the€loan€even€if€UAB€failed€ð ðto€realize€upon€or€protectðð€anyÏð ðcollateral€or€security.ðð̜рÑÇ›à àIn€ò òòòMarriott€Employeesðð€Federal€Credit€Union€v.€Harrisóóó ó,€897€S.W.2d€723€(Tenn.ÏApp.€1994),€the€borrower€claimed€that€the€financial€institution€had€a€duty€to€monitor€the€marketÏvalue€of€the€stock€pledged€as€collateral€for€the€loan.€€This€Court€found€that€Tennesseeððs€UniformÏCommercial€Code€(ð ðU.C.C.ðð)€establishes€a€duty€on€the€part€of€a€secured€party€to€preserve€pledgedÏcollateral.€òòò òId.ó óóó€at€727.€€This€duty€requires€the€secured€party€to€ð ðuse€reasonable€care€in€the€custodyÏand€preservation€of€collateral€in€his€possession.ðð€òòò òId.ó óóó€(quoting€Tenn.€Code€Ann.€ðð€47„9„207(1)Ï(1992)).€€However,€the€€duty€was€defined€to€refer€to€the€òòphysicalóó€protection€of€the€collateral,€notÏthe€diminution€in€value€of€pledged€stock:€ð ðThe€pledgee€is€not€liable€for€a€decline€in€value€of€pledgedÏinstruments,€even€if€timely€action€could€have€prevented€such€decline.ðð€ò òòòId.€óóó ó(quoting€òòRestatement€ofÏSecurityóó€ðð€18€cmt.€a.€€Therefore,€in€the€absence€of€an€express€agreement€to€monitor€the€value€of€theÏstock,€UAB€did€not€owe€Waxman€a€duty€to€monitor€its€value.€Ìà àThe€guaranty€signed€by€Waxman€states€expressly€that€it€is€unaffected€by€any€failure€byÏUAB€to€ð ðrealize€upon€or€protectðð€the€stock,€and€that€UAB€had€no€obligation€to€first€ð ðexhaust€itsÏremediesðð€as€to€the€stock.€€Waxman€sought€to€introduce€his€testimony€that€a€UAB€officer€promisedÏto€sell€the€stock€if€its€value€fell€below€a€certain€level,€an€alleged€oral€agreement€in€directÏcontradiction€to€the€plain€terms€of€the€guaranty.€€ð ðWhere€[an€agreement]€is€an€unconditionalÏpromise€on€its€face,€parol€evidence€is€inadmissible€to€show€an€oral€condition.ðð€€ò òòòFarmers€&ÏMerchants€Bank€v.€Pettyó óóó,€664€S.W.2d€77,€81€(Tenn.€App.€1983)€(citing€ò òòòSeaton€v.€Dyeóóó ó,€37ÏTenn.€App.€323,€263€S.W.2d€544€(1954));€ò òòòsee€also€Harry€J.€Whelchel€Co.,€Inc.€v.ÏRipley€Tractor€Co.ó óóó,€900€S.W.2d€691,€693„94€(Tenn.€App.€1995).€€Because€Waxmanððs€onlyÏevidence€of€a€duty€by€UAB€to€sell€the€stock€before€its€value€fell€was€inadmissible€parol€evidenceÏthat€directly€contradicted€the€express€terms€of€the€guaranty,€the€trial€courtððs€implicit€ruling€inÏUABððs€favor€on€this€issue€is€affirmed.€Ìà àWaxman€also€argues€that€the€trial€court€erred€in€denying€his€second€motion€to€compel.€€HeÏmaintains€that€UAB€gave€incomplete€answers€to€his€interrogatories€and€request€for€production€ofÏdocuments.€€UAB€claims€it€provided€all€appropriate€discovery,€that€any€failure€of€the€court€toÍcompel€discovery€was€caused€by€Waxmanððs€never€setting€a€court€date€to€hear€his€first€motion,€andÏthat€Waxman€had€no€evidence€that€UAB€had€not€fully€complied€with€discovery€requests€other€thanÏreferences€to€documents€in€his€possession€that€UAB€had€allegedly€not€given€him.€€Trial€courtÏdecisions€regarding€pretrial€discovery€rest€within€the€ð ðsound€discretionðð€of€the€trial€court.€òòò òBentonÏv.€Snyderó óóó,€825€S.W.2d€409,€416€(Tenn.€1992).€€Such€decisions€shall€not€be€reversed€on€appealÏunless€that€discretion€was€abused.€òòò òId.ó óóó€€€After€reviewing€the€record,€we€find€no€abuse€of€discretion,Ïand€affirm€the€trial€court€on€this€issue.Ìà àWaxman€appeals€the€trial€courtððs€denial€of€his€post„judgment€motion€regarding€the€amountÏof€damages€awarded€to€UAB.€€In€his€motion,€Waxman€requested€that€the€trial€court€set€aside€theÏjudgment€against€him€because€UAB€relied€upon€perjured€testimony€and€falsified€documents€inÏpursuing€its€claim€on€summary€judgment.€€Waxman€alleged€that€UAB€officials€misstated€the€perÏdiem€amount€owed€on€the€account,€and€pointed€out€other€alleged€bookkeeping€errors€that€heÏbelieves€resulted€in€the€trial€court€awarding€damages€greatly€in€excess€of€what€was€truly€owed.€€InÏsupport€of€his€assertion,€Waxman€attached€copies€of€bank€records€pertaining€to€his€account,€withÏthe€bookkeeping€mistakes€highlighted€for€the€courtððs€convenience.€€In€this€motion,€Waxman€alsoÏalleged€that€Allison€Vinberg,€the€manager€of€Waxmanððs€commercial€loan€portfolio€who€identifiedÏthe€records€during€the€hearing€on€damages,€perjured€herself€by€attesting€to€the€veracity€of€theseÏdocuments.€€The€record€does€not€show€that€Waxman€raised€this€issue€during€the€damages€hearing,Ïbut€rather€after€summary€judgment€had€been€granted€to€UAB.€€There€is€no€indication€in€the€recordÏthat€this€information€was€not€available€prior€to€the€entry€of€judgment.€€œThe›€decision€to€denyÏWaxmanððs€motion€for€relief€was€within€the€trial€courtððs€discretion€and€will€not€be€reversed€absent€aÏfinding€of€abuse.€òòò ò€Seeó óóó€òòò òBanks€v.€Dement€Const.€Coó óóó.,€817€S.W.2d€16,€18€(Tenn.€1991).€€TheÏrecord€does€not€indicate€that€the€trial€court€abused€its€discretion.€€Consequently,€the€trial€court€isÏaffirmed€on€this€issue.Ìà àWaxman€next€argues€that€the€trial€court€erred€in€failing€to€grant€a€number€of€his€remainingÏpost„judgment€motions,€filed€after€summary€judgment€was€entered€against€him.€€In€these€motions,ÍWaxman€asserted€improper€service€of€process,€and€moved€to€amend€his€answer€to€includeÏaffirmative€defenses€of€breach€of€fiduciary€duty,€breach€of€contract,€fraud,€misrepresentation,€andÏbreach€of€the€covenant€of€good€faith€and€fair€dealing.€€Ìà àWith€a€few€specified€exceptions,€under€Rule€12€of€the€Tennessee€Rules€of€Civil€Procedure,Ïdefenses€must€be€raised€in€the€pleading€or€motion€filed€in€response€to€the€complaint.€€If€not,€theyÏare€deemed€waived.€€ò òòòSee€Barker€v.€Heekin€Can€Co.ó óóó,€804€S.W.2d€442,€444€(Tenn.€1991).€ÏIn€this€case,€Waxman€first€raised€these€defenses€in€motions€filed€after€summary€judgment€wasÏentered€in€favor€of€UAB.€Consequently,€they€are€waived.€€The€trial€court€denied€WaxmanððsÏmotions€for€lack€of€jurisdiction;€however,€this€Court€can€affirm€the€result€on€different€grounds.€Ïò òòòSeeó óóó€ò òòòContinental€Cas.€Co.€v.€Smithó óóó,€720€S.W.2d€48,€50€(Tenn.€1986).€€Therefore,€the€trialÏcourtððs€denial€of€Waxmanððs€remaining€post„judgment€motions€is€affirmed.Ìà àThe€decision€of€the€trial€court€is€affirmed.€€Costs€are€taxed€against€the€Appellant,€for€whichÏexecution€may€issue€if€necessary.ÌÌÓÓà àà àà àà àà àòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€Ìà àà àà àà àà àœò òóóHOLLY›€KIRBY€LILLARD,€J.Ìó óà àò òÌCONCUR:ÌÌòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€ÌóóW.€FRANK€CRAWFORD,€P.€J.,€W.S.ÌÌÌòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€óóÌALAN€E.€HIGHERS,€J.ó óÌ