HARPETH FINANCIAL SERVICES LLC v. JIM CLAY PINSON, JR. ET AL. - Articles

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HARPETH FINANCIAL SERVICES LLC v. JIM CLAY PINSON, JR. ET AL.

Posted by: Karen Belcher on May 27, 2021

Court: TN Court of Appeals

Attorneys 1: John Roaten Cheadle, Jr. and Mary Barnard Cheadle, Nashville, Tennessee, for the appellant, Harpeth Financial Services LLC.

Attorneys 2: Kimberly Reed-Bracey Johnson, Goodlettsville, Tennessee, for the appellee, Flora E. Morris.

Judge(s): MCBRAYER

A collecting bank sued the drawer of a check, claiming that the drawer stopped payment on the check with fraudulent intent. The general sessions court, as well as the circuit court on de novo appeal, ruled in favor of the drawer. The bank argues that, because it was a holder in due course, the drawer was still liable on the check despite the stop-payment order. And it seeks an award of interest, court costs, attorney’s fees, and treble damages from the drawer, contending that the proof showed the drawer acted with fraudulent intent. We affirm the dismissal of the claim based on the drawer’s alleged fraudulent intent, but we vacate the dismissal of any claim based on the drawer’s obligation on the check.

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