THE PEOPLES BANK v. CONRAD MARK TROUTMAN ET AL. - Articles

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Posted by: Chandra Williams on Jul 28, 2015

Court: TN Court of Appeals

Attorneys 1:

Gregory Brown and Lindsey E. Lyle, Knoxville, Tennessee, for the appellants, Conrad Mark Troutman and Troutman & Troutman, P.C.

Attorneys 2:

Ronald C. Koksal and T. Michael Craig-Grubbs, Knoxville, Tennessee, for the appellee, The Peoples Bank. Janet Strevel Hayes, Knoxville, Tennessee, and Mary Beth Haltom, Nashville, Tennessee, for the appellee, Old Republic National Title Insurance Company.

Judge(s): FRIERSON

This action involves a commercial loan in the amount of $765,000.00. Prior to closing on the loan, the lender received a commitment for title insurance requiring that a prior lien on title to the real property as collateral be released or subordinated. The lender went forward with the closing after receiving assurance from the title insurance company?s agent and attorney that the prior lien had been subordinated. Thereafter, the title insurance company issued a policy that excepted the prior lien from coverage. Following default by the borrowers, the prior lienholder foreclosed on the property, causing the lender to file the present action against the title insurance company and the attorney who prepared the commitment for title insurance, as well as the attorney?s law firm. The title insurance company and the attorney, together with his law firm, filed separate motions for summary judgment. The trial court denied the motion filed by the attorney and his firm. The lender subsequently took a voluntary nonsuit of its claims against those parties. The trial court granted summary judgment in favor of the title insurance company. The attorney, his firm, and the lender have appealed. Discerning no reversible error, we affirm the trial court?s grant of summary judgment to the title insurance company. We dismiss the joint appeal filed by the attorney and his law firm as not justiciable.

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