BANCORPSOUTH BANK v. 51 CONCRETE LLC, ET AL. - Articles

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Posted by: Tanja Trezise on Jan 27, 2015

Court: TN Court of Appeals

Attorneys 1:

Jeffrey D. Germany and Marshall Digmon, Memphis, Tennessee, for the appellant, BancorpSouth Bank.

Attorneys 2:

W. Clark Washington, Memphis, Tennessee, for the appellee, 51 Concrete, LLC.

Scott A. Frick, Memphis, Tennessee, for the appellee, Thompson Machinery Commerce Corporation.

Judge(s): ARMSTRONG

This is the second appeal of this conversion case. Appellant bank holds a perfected security interest in three pieces of equipment used as collateral for a loan made to its debtor, John Chorley. Appellees acquired this equipment from Mr. Chorley before he defaulted on his loan with Appellant bank. Appellees did not perform a UCC check, instead relying on Mr. Chorley’s representation that there were no liens on the equipment. Appellees subsequently sold the equipment to parties not involved in this case. After Mr. Chorley defaulted on his loan, Appellant bank sued Appellees for conversion, seeking compensatory damages, attorney’s fees, and punitive damages. The trial court awarded judgments against both Appellees, but denied attorney’s fees and punitive damages. All parties assert error on appeal. We affirm in part, reverse in part, and remand.