Case Title: Bon Harbor, LLC and Michael F. Hinds v. United Bank et al.

Citation: 

Docket Number: 1090302

State: alabama

Court: Alabama Supreme Court

Date: 2010-06-30T00:00:00Z

Document:
REL: 06/30/2010 
Notice: T h i s 
o p i n i o n i s s u b j e c t t o f o r m a l 
r e v i s i o n b e f o r e 
p u b l i c a t i o n i n 
t h e 
advance 
s h e e t s o f 
Southern Reporter. 
R e a d e r s a r e 
r e q u e s t e d t o n o t i f y t h e 
Reporter of 
Decisions, 
Alabama 
A p p e l l a t e 
C o u r t s , 
300 D e x t e r Avenue, Montgomery, Alabama 36104-3741 
((334) 
2 2 9 - 0 6 4 9 ) , o f 
any t y p o g r a p h i c a l o r o t h e r e r r o r s , i n 
o r d e r t h a t c o r r e c t i o n s may be made 
b e f o r e t h e 
o p i n i o n i s 
p r i n t e d i n 
Southern Reporter. 
SUPREME COURT OF ALABAMA 
OCTOBER TERM, 2009-2010 
1090302 
Bon Harbor, LLC, 
and M i c h a e l F. Hinds 
v. 
U n i t e d Bank e t a l . 
Appeal from Baldwin C i r c u i t 
Court 
(CV-07-240) 
LYONS, 
J u s t i c e . 
Bon 
H a r b o r , LLC ("Bon H a r b o r " ) , 
a n d M i c h a e l 
F. H i n d s 
a p p e a l 
f r o m a j u d g m e n t e n t e r e d 
a g a i n s t them a n d 
i n f a v o r o f 
U n i t e d B a n k a n d i t s 
e m p l o y e e s R u s s e l l K. B a n k s , F r a n k M e i g s , 
and J a m i e L i p h a m . We 
a f f i r m . 
1090302 
P r o c e d u r a l H i s t o r y 
On 
A p r i l 
5, 
2007, U n i t e d Bank s u e d Bon 
H a r b o r , 
H i n d s , 
D a v i d P. H e r r i c k , B r a d l e y P. K a t z , and C. G i b s o n V a n c e s e e k i n g 
r e c o v e r y 
o f more t h a n $ 7 , 5 0 0 , 0 0 0 owed t o U n i t e d Bank by 
Bon 
H a r b o r on 
a p r o m i s s o r y 
n o t e 
and 
an amended p r o m i s s o r y 
n o t e . 
The 
n o t e s w e r e s e c u r e d by a m o r t g a g e , e v i d e n c e d by a m o r t g a g e 
a g r e e m e n t , and w e r e g u a r a n t e e d 
by 
H i n d s , 
H e r r i c k , K a t z , 
and 
V a n c e 
( c o l l e c t i v e l y 
" t h e 
g u a r a n t o r s " ) . 
On 
J u n e 
15, 
2007, 
U n i t e d Bank amended i t s c o m p l a i n t t o s e e k a r e f o r m a t i o n o f t h e 
p r o m i s s o r y n o t e s and m o r t g a g e o r , a l t e r n a t i v e l y , a d e c l a r a t i o n 
t h a t t h e d o c u m e n t s w e r e v a l i d ; a j u d g m e n t on 
t h e 
p r o m i s s o r y 
n o t e s 
and 
g u a r a n t i e s ; 
f o r e c l o s u r e 
o f 
t h e 
m o r t g a g e 
o r , 
a l t e r n a t i v e l y , 
t h e 
i m p o s i t i o n o f a p u r c h a s e - m o n e y m o r t g a g e , 
e q u i t a b l e m o r t g a g e , o r 
r e s u l t i n g 
t r u s t 
i n t h e 
r e a l 
p r o p e r t y 
Bon 
H a r b o r h a d 
p u r c h a s e d 
w i t h t h e p r o c e e d s o f t h e 
l o a n ; 
and 
t h e i m p o s i t i o n o f a c o n s t r u c t i v e t r u s t on t h e f u n d s 
l o a n e d 
t o 
Bon 
H a r b o r by U n i t e d Bank. 
On 
J u l y 13, 2007, Bon H a r b o r and t h e g u a r a n t o r s 
a s s e r t e d 
c o u n t e r c l a i m s 
a g a i n s t 
U n i t e d 
Bank 
and 
t h i r d - p a r t y 
c l a i m s 
a g a i n s t 
U n i t e d 
Bank 
e m p l o y e e s 
B a n k s , 
M e i g s , 
and 
L i p h a m 
( c o l l e c t i v e l y 
" t h e 
t h i r d - p a r t y 
d e f e n d a n t s " ) . 
The 
c o m p l a i n t 
2 
1090302 
s t a t e d c l a i m s o f " b r e a c h o f d u t y , " 
f r a u d , s u p p r e s s i o n , a n d a 
c l a i m f o r 
a d e c l a r a t o r y j u d g m e n t " s e t t i n g f o r t h t h e r i g h t s o f 
t h e 
p a r t i e s " 
w i t h 
r e s p e c t 
t o 
t h e 
p r o m i s s o r y 
n o t e s 
a n d 
g u a r a n t i e s . 
U n i t e d Bank s u b s e q u e n t l y moved f o r 
a summary j u d g m e n t on 
i t s 
c l a i m s 
a g a i n s t 
Bon 
H a r b o r 
a n d t h e 
g u a r a n t o r s . 
I t 
e x p r e s s l y r e q u e s t e d a j u d g m e n t d e c l a r i n g t h a t t h e o r i g i n a l a n d 
t h e amended p r o m i s s o r y 
n o t e s 
w e r e 
v a l i d a n d b i n d i n g on Bon 
H a r b o r a n d t h a t t h e m o r t g a g e a g r e e m e n t was v a l i d a n d b i n d i n g 
on Bon H a r b o r ; an o r d e r 
f o r e c l o s i n g t h a t m o r t g a g e o r 
i m p o s i n g 
an e q u i t a b l e m o r t g a g e on t h e p r o p e r t y Bon H a r b o r h a d p u r c h a s e d 
w i t h t h e l o a n p r o c e e d s ; a n d a j u d g m e n t i n f a v o r o f U n i t e d Bank 
and a g a i n s t Bon H a r b o r a n d t h e g u a r a n t o r s . 
Bon H a r b o r a n d t h e 
g u a r a n t o r s 
r e s p o n d e d , a n d , on M a r c h 20, 2008, t h e t r i a l 
c o u r t 
e n t e r e d an o r d e r 
s t a t i n g s i m p l y t h a t t h e m o t i o n f o r 
a summary 
j u d g m e n t was 
g r a n t e d . 
Bon 
H a r b o r a n d t h e g u a r a n t o r s 
f i l e d a n o t i c e o f 
a p p e a l 
w i t h 
t h i s 
C o u r t on t h e same day t h e t r i a l 
c o u r t e n t e r e d i t s 
summary j u d g m e n t . 
T h a t a p p e a l was a s s i g n e d c a s e no. 1070902. 
F i v e d a y s 
l a t e r , 
w h i l e 
c a s e no. 1070902 was p e n d i n g 
b e f o r e 
t h i s C o u r t , t h e t r i a l c o u r t e n t e r e d an o r d e r a s s e s s i n g damages 
3 
1090302 
a g a i n s t Bon H a r b o r and t h e g u a r a n t o r s 
on t h e M a r c h 20, 
2008, 
j u d g m e n t . 
Bon 
H a r b o r and 
t h e 
g u a r a n t o r s 
f i l e d 
a n o t i c e o f 
a p p e a l 
t o 
t h i s 
C o u r t 
f r o m 
t h e 
t r i a l 
c o u r t ' s M a r c h 25, 
2008, 
o r d e r . 
T h a t a p p e a l was 
a s s i g n e d c a s e no. 
1070994. 
I n Bon 
H a r b o r , 
LLC v. H i n d s , 20 So. 3d 1263 
( A l a . 2 0 0 9 ) , 
t h i s C o u r t d e c i d e d b o t h a p p e a l s . 
T h i s C o u r t d e t e r m i n e d 
t h a t 
t h e M a r c h 20, 2008, j u d g m e n t was 
n o t 
f i n a l b e c a u s e i t d i d n o t 
d i s p o s e o f a l l c l a i m s a g a i n s t a l l p a r t i e s t o t h e a c t i o n . 
20 
So. 
3d a t 1265-66 
( c i t i n g D i c k e r s o n v. A l a b a m a S t a t e 
U n i v . , 
852 
So. 
2d 
704, 
705 
( A l a . 2 0 0 2 ) ) . 
As 
a r e s u l t , 
t h i s 
C o u r t 
l a c k e d 
s u b j e c t - m a t t e r 
j u r i s d i c t i o n 
t o 
c o n s i d e r 
c a s e 
no. 
1 0 7 0 9 0 2 . 
B e c a u s e t h e M a r c h 25, 2008, o r d e r was 
e n t e r e d w h i l e 
c a s e 
no. 
1070902 was 
p e n d i n g 
b e f o r e 
t h i s 
C o u r t , 
t h e 
t r i a l 
c o u r t 
l a c k e d s u b j e c t - m a t t e r 
j u r i s d i c t i o n o v e r 
t h e 
a c t i o n 
a t 
t h e 
t i m e 
i t e n t e r e d t h e 
o r d e r . 
As 
a r e s u l t , 
t h e M a r c h 
25, 
2008, o r d e r was 
v o i d and w o u l d n o t s u p p o r t an a p p e a l . 
20 
So. 
3d a t 1266 
( c i t i n g G a l l a g h e r B a s s e t t S e r v s . , I n c . v. 
P h i l l i p s , 
991 
So. 
2d 
697, 
701 
( A l a . 2 0 0 8 ) ) . 
A c c o r d i n g l y , t h i s 
C o u r t 
d i s m i s s e d t h e a p p e a l s 
i n b o t h 
c a s e 
no. 
1070902 and 
c a s e 
no. 
1070994. 
4 
1090302 
A f t e r 
d i s m i s s a l 
o f 
t h e 
a p p e a l s , 
U n i t e d 
Bank 
and 
t h e 
t h i r d - p a r t y d e f e n d a n t s moved f o r a summary j u d g m e n t , t h i s 
t i m e 
on t h e c o u n t e r c l a i m s 
and 
t h i r d - p a r t y c l a i m s a s s e r t e d 
a g a i n s t 
them by Bon H a r b o r and t h e g u a r a n t o r s . 
B e f o r e t h e 
t r i a l 
c o u r t 
r u l e d on 
t h i s m o t i o n , H e r r i c k , K a t z , V a n c e , U n i t e d Bank, 
and 
t h e t h i r d - p a r t y d e f e n d a n t s 
s e t t l e d 
t h e i r c l a i m s a g a i n s t e a c h 
o t h e r , and t h e 
t r i a l 
c o u r t d i s m i s s e d t h e c l a i m s p e n d i n g as 
t o 
t h o s e 
p a r t i e s . 
A c c o r d i n g l y , 
t h e 
o n l y 
c l a i m s 
t h a t 
r e m a i n e d 
p e n d i n g 
b e f o r e 
t h e 
t r i a l 
c o u r t 
were 
U n i t e d 
B a n k ' s 
c l a i m s 
a g a i n s t 
Bon 
H a r b o r 
and 
H i n d s , 
and 
Bon 
H a r b o r 
and 
H i n d ' s 
c o u n t e r c l a i m s a g a i n s t U n i t e d Bank and t h e i r t h i r d - p a r t y c l a i m s 
a g a i n s t t h e t h i r d - p a r t y 
d e f e n d a n t s . 
On A u g u s t 31, 2009, Bon H a r b o r and H i n d s moved t h e 
t r i a l 
c o u r t 
t o 
v a c a t e 
i t s M a r c h 
20, 
2008, summary j u d g m e n t 
f o r 
U n i t e d Bank b a s e d on a l l e g e d l y n e w l y d i s c o v e r e d e v i d e n c e . 
Bon 
H a r b o r and H i n d s a l s o f i l e d two m o t i o n s f o r a summary j u d g m e n t 
i n 
t h e i r 
f a v o r on U n i t e d B a n k ' s c l a i m s a g a i n s t them, 
s t a t i n g 
d i f f e r e n t g r o u n d s i n e a c h m o t i o n and 
s u p p o r t i n g e a c h m o t i o n 
w i t h 
a f f i d a v i t s f r o m H i n d s .
1 
U n i t e d Bank r e s p o n d e d t o 
Bon 
1 B o n 
H a r b o r and H i n d s a l s o amended t h e i r c o u n t e r c l a i m 
and 
t h i r d - p a r t y c o m p l a i n t 
t o s t a t e a c l a i m f o r a r e s c i s s i o n and 
t o 
a s s e r t 
a d d i t i o n a l 
f r a u d - b a s e d 
c l a i m s . 
U n i t e d Bank and 
t h e 
t h i r d - p a r t y 
d e f e n d a n t s 
moved 
t o 
s t r i k e 
t h e 
amendment 
as 
5 
1090302 
H a r b o r 
and 
H i n d s ' s 
m o t i o n s 
a n d 
moved 
t o 
s t r i k e 
H i n d s ' s 
a f f i d a v i t s on s e v e r a l g r o u n d s . 
On O c t o b e r 8, 2009, t h e 
t r i a l 
c o u r t 
e n t e r e d 
a j u d g m e n t 
f o r 
U n i t e d Bank a n d t h e t h i r d - p a r t y d e f e n d a n t s and a g a i n s t Bon 
H a r b o r and H i n d s .
2 
The 
t r i a l 
c o u r t ' s j u d g m e n t , i n r e l e v a n t 
p a r t , 
s t a t e d as f o l l o w s : 
"The C o u r t 
h a v i n g 
g r a n t e d 
U n i t e d B a n k ' s 
M o t i o n 
f o r 
Summary J u d g m e n t on M a r c h 20, 2008, e n t e r s 
f i n a l 
j u d g m e n t i n f a v o r o f U n i t e d Bank and a g a i n s t [ B o n 
H a r b o r 
and 
H i n d s ] 
j o i n t l y 
and 
s e v e r a l l y , 
i n t h e 
amount o f $ 8 , 3 5 0 , 0 5 0 , 0 2 , 
c o n s i s t i n g o f 
p r i n c i p a l , 
a c c r u e d 
i n t e r e s t 
and 
l a t e 
f e e s 
c a l c u l a t e d as 
o f 
M a r c h 2 0 , 2 0 0 8 , w i t h i n t e r e s t t h e r e a f t e r 
a c c u m u l a t i n g 
a t 
a d a i l y r a t e o f $ 1 6 2 6 . 0 0 . I t i s f u r t h e r 
" O r d e r e d , a d j u d g e d and d e c r e e d 
t h a t U n i t e d Bank 
i s 
e n t i t l e d t o f o r e c l o s e on t h e p r o p e r t y 
d e s c r i b e d 
i n t h e m o r t g a g e d a t e d J u l y 8, 2 0 0 5 , and r e c o r d e d 
as 
I n s t r u m e n t 
No. 
914161 
o f 
t h e 
B a l d w i n 
C o u n t y , 
A l a b a m a , P r o b a t e 
r e c o r d s and t o a p p l y t h e p r o c e e d s 
o f t h e f o r e c l o s u r e s a l e t o t h e i n d e b t e d n e s s 
o f [ B o n 
H a r b o r and H i n d s ] t o U n i t e d 
B a n k . " 
The 
t r i a l 
c o u r t 
t h e n 
1) g r a n t e d 
U n i t e d Bank and t h e 
t h i r d -
p a r t y 
d e f e n d a n t s ' 
m o t i o n f o r a summary j u d g m e n t as t o Bon 
u n t i m e l y . 
The 
t r i a l c o u r t g r a n t e d t h e m o t i o n . 
Bon H a r b o r and 
H i n d s have n o t r a i s e d a n y a r g u m e n t s on a p p e a l 
r e g a r d i n g t h e 
t r i a l 
c o u r t ' s 
d i s m i s s a l o f 
t h e i r 
amended 
c o u n t e r c l a i m 
and 
t h i r d - p a r t y 
c o m p l a i n t . 
2 T h e t r i a l c o u r t ' s j u d g m e n t a l s o named H e r r i c k , K a t z , and 
V a n c e 
as 
d e f e n d a n t s . 
However, 
t h e 
c l a i m s 
a g a i n s t 
t h o s e 
d e f e n d a n t s h a d p r e v i o u s l y b e e n 
d i s m i s s e d . 
6 
1090302 
H a r b o r a n d H i n d s ' s c o u n t e r c l a i m s a n d t h i r d - p a r t y 
c l a i m s ; 2) 
d e n i e d Bon H a r b o r and H i n d s ' s m o t i o n t o v a c a t e t h e M a r c h 20, 
2008, j u d g m e n t ; 3) d e n i e d as u n t i m e l y a n d moot Bon 
H a r b o r ' s 
and 
H i n d s ' s m o t i o n s f o r a summary j u d g m e n t ; a n d 4) g r a n t e d 
U n i t e d Bank a n d t h e t h i r d - p a r t y d e f e n d a n t s ' m o t i o n t o 
s t r i k e 
H i n d s ' s 
a f f i d a v i t s . 
Bon 
H a r b o r a n d H i n d s s u b s e q u e n t l y moved t h e t r i a l 
c o u r t 
t o amend i t s O c t o b e r 8, 2009, j u d g m e n t u n d e r R u l e 5 9 ( e ) , 
A l a . 
R. C i v . P., a s k i n g t h e t r i a l 
c o u r t t o r e w o r d i t s j u d g m e n t t o 
show t h a t i t h a d c o n s i d e r e d t h e a l l e g e d l y n e w l y d i s c o v e r e d 
e v i d e n c e s u b m i t t e d b y Bon H a r b o r a n d H i n d s . 
The 
t r i a l 
c o u r t 
d e n i e d t h a t m o t i o n ; Bon H a r b o r a n d H i n d s 
a p p e a l e d . 
F a c t u a l 
B a c k g r o u n d 
The 
e v i d e n c e 
p r e s e n t e d t o t h e 
t r i a l 
c o u r t b e f o r e i t 
e n t e r e d 
i t s M a r c h 
20, 
2008, 
summary 
j u d g m e n t 
shows t h e 
f o l l o w i n g 
f a c t s . 
Bon H a r b o r i s a l i m i t e d 
l i a b i l i t y 
company 
owned b y D e c a t u r , LLC 
( " D e c a t u r " ) , G u l f S t r e a m 
P r o p e r t i e s , 
I n c . 
( " G u l f S t r e a m " ) , a n d DGB, LLC ("DGB"). 
D e c a t u r i s owned 
by H i n d s ; G u l f S t r e a m i s owned by P a u l K i r k l a n d ; a n d DGB i s 
owned b y 
H e r r i c k , 
K a t z , a n d V a n c e . 
Bon 
H a r b o r ' s 
amended 
a r t i c l e s o f o r g a n i z a t i o n name H i n d s a n d K i r k l a n d as m a n a g e r s 
7 
1090302 
and s t a t e : " B o t h [ H i n d s ] a n d [ K i r k l a n d ] 
a c t i n g i n u n i s o n 
s h a l l 
h a v e t h e a u t h o r i t y t o b i n d [ B o n H a r b o r ] . No o t h e r 
i n d i v i d u a l s 
o r 
e n t i t i e s 
s h a l l 
have any a u t h o r i t y t o b i n d [ B o n H a r b o r ] 
w i t h o u t 
t h e w r i t t e n 
a p p r o v a l 
o f a l l 
members 
a n d 
g e n e r a l 
m a n a g e r s . " 
Bon H a r b o r ' s o p e r a t i n g a g r e e m e n t a l s o names H i n d s 
and 
K i r k l a n d as g e n e r a l 
m a n a g e r s . 
P a r a g r a p h 
9 ( a ) o f t h e 
o p e r a t i n g a g r e e m e n t p r o v i d e s : " I t s h a l l r e q u i r e t h e s i g n a t u r e s 
o f b o t h g e n e r a l m a n a g e r s t o b i n d [ B o n H a r b o r ] as i t 
r e l a t e s t o 
any a c t i o n t a k e n b y [ B o n H a r b o r ] o r any t r a n s a c t i o n e n t e r e d 
i n t o by [ B o n H a r b o r ] . " 
P a r a g r a p h 
9 ( d ) s t a t e s : "The 
g e n e r a l 
m a n a g e r s a l o n e s h a l l be r e s p o n s i b l e f o r 
t h e 
management o f 
[ B o n 
H a r b o r ' s ] 
b u s i n e s s , 
w i t h 
a l l 
r i g h t s 
a n d p o w e r s 
g e n e r a l l y 
c o n f e r r e d b y l a w 
I n 2005, Bon H a r b o r p u r c h a s e d 
r e a l 
p r o p e r t y i n B a l d w i n 
C o u n t y 
("the p r o p e r t y " ) 
f o r a p p r o x i m a t e l y 
$ 1 0 , 0 0 0 , 0 0 0 . 
To 
f u n d $7,500,000 o f t h e p u r c h a s e p r i c e , Bon H a r b o r 
n e g o t i a t e d 
a l o a n f r o m U n i t e d Bank. 
On J u l y 8, 2 0 0 5 , H i n d s a n d K i r k l a n d 
s i g n e d 
a p r o m i s s o r y 
n o t e 
e v i d e n c i n g 
t h e l o a n . 
The 
n o t e 
i d e n t i f i e d 
U n i t e d Bank as t h e l e n d e r a n d Bon H a r b o r as t h e 
b o r r o w e r . 
I t p r o v i d e d f o r 
a v a r i a b l e i n t e r e s t r a t e . 
The n o t e 
s t a t e d 
t h a t 
t h e 
l o a n 
was 
a d v a n c e d 
f o r t h e p u r p o s e 
o f 
8 
1090302 
p u r c h a s i n g 
c o m m e r c i a l p r o p e r t y 
a n d was 
p a i d 
as a 
s i n g l e 
a d v a n c e on J u l y 8, 2005. 
The n o t e s t a t e d t h a t i t 
was s e c u r e d 
by a m o r t g a g e on t h e p r o p e r t y a n d b y t h e p e r s o n a l 
g u a r a n t i e s 
o f H i n d s , H e r r i c k , K a t z , a n d V a n c e . 
H i n d s s i g n e d t h e J u l y 8, 
2005, n o t e u n d e r t h e f o l l o w i n g s i g n a t u r e 
l i n e : "Bon H a r b o r , 
LLC b y D e c a t u r , L L C b y M i c h a e l F. H i n d s : M a n a g i n g Member." 
K i r k l a n d s i g n e d t h e n o t e u n d e r t h e f o l l o w i n g s i g n a t u r e 
l i n e : 
"Bon 
H a r b o r L L C b y 
G u l f 
S t r e a m 
P r o p e r t i e s , I n c . by 
P a u l 
K i r k l a n d : P r e s i d e n t . " 
On 
J u l y 
8, 
2005, 
H i n d s 
a n d 
K i r k l a n d 
a l s o 
s i g n e d 
a 
m o r t g a g e 
a g r e e m e n t 
s e c u r i n g 
t h e 
l o a n . 
T h a t 
a g r e e m e n t 
i d e n t i f i e d 
Bon 
H a r b o r 
as 
m o r t g a g o r 
a n d 
U n i t e d 
Bank 
as 
m o r t g a g e e . 
I t p r o v i d e d U n i t e d Bank a s e c u r i t y i n t e r e s t i n 
t h e 
p r o p e r t y o f $ 7 , 5 0 0 , 0 0 0 . 
H i n d s s i g n e d t h e m o r t g a g e 
a g r e e m e n t 
f o r Bon H a r b o r u n d e r t h e f o l l o w i n g s i g n a t u r e 
l i n e : " D e c a t u r 
LLC by M i c h a e l F. H i n d s : M a n a g i n g Member." 
K i r k l a n d s i g n e d 
t h e 
m o r t g a g e 
a g r e e m e n t 
f o r Bon H a r b o r u n d e r t h e f o l l o w i n g 
s i g n a t u r e 
l i n e : 
" G u l f 
S t r e a m 
P r o p e r t i e s , 
I n c . b y 
P a u l 
K i r k l a n d , 
P r e s i d e n t . " 
The m o r t g a g e 
a g r e e m e n t 
i n c l u d e d a 
n o t a r i z e d 
c e r t i f i c a t i o n 
t h a t H i n d s a n d K i r k l a n d s i g n e d t h e 
9 
1090302 
m o r t g a g e a g r e e m e n t as m a n a g i n g members o f Bon H a r b o r . 
The 
m o r t g a g e was r e c o r d e d on A u g u s t 11, 2005. 
On t h e same d a y , u s i n g t h e same s i g n a t u r e 
l i n e s , 
H i n d s 
and 
K i r k l a n d s i g n e d a c e r t i f i c a t e o f a u t h o r i t y 
i d e n t i f y i n g 
D e c a t u r a n d G u l f S t r e a m as m a n a g i n g members o f Bon H a r b o r . 
The 
c e r t i f i c a t e o f a u t h o r i t y p r o v i d e d i n p a r t : 
" [ T ] h e u n d e r s i g n e d members a n d m a n a g e r s , as p r o v i d e d 
i n t h e o r g a n i z a t i o n a l d o c u m e n t s , as a u t h o r i z e d b y 
l a w , 
a n d as 
h e r e b y 
f u r t h e r 
a u t h o r i z e d 
(and i n 
r e l a t i o n t o a c t i o n s 
t h a t may h a v e b e e n 
p r e v i o u s l y 
t a k e n 
as 
h e r e b y 
r a t i f i e d ) 
do 
h e r e b y 
a f f i r m t h e 
a u t h o r i t y o f , a n d do h e r e b y f u r t h e r a u t h o r i z e , t h e 
p e r s o n s 
d e s i g n a t e d 
a b o v e as t h e m a n g e r ( s ) o f [ B o n 
H a r b o r ] . 
" ( C o m p r e h e n s i v e 
A u t h o r i t y ) 
To a c t f o r a n d on 
b e h a l f o f [ B o n H a r b o r ] i n r e l a t i o n t o a l l b u s i n e s s 
a c t i v i t i e s 
c o n d u c t e d b y [ B o n H a r b o r ] w i t h 
[ U n i t e d 
B a n k ] , 
i n c l u d i n g w i t h o u t 
l i m i t a t i o n 
e n t e r i n g 
i n t o 
any a n d a l l f i n a n c i a l 
t r a n s a c t i o n s a n d 
a c t i v i t i e s ; 
t r u s t 
d e p o s i t o r y 
a n d b o r r o w i n g 
t r a n s a c t i o n s 
a n d 
a c t i v i t i e s ; 
a n d 
a l l o t h e r 
t r a n s a c t i o n s 
a n d 
a c t i v i t i e s 
c o n d u c t e d f o r o r i n t h e name o f [ B o n 
H a r b o r ] w i t h 
[ U n i t e d B a n k ] a n d i n t h e i r 
s o l e a n d 
e x c l u s i v e 
j u d g m e n t and d i s c r e t i o n t o t a k e any and 
a l l 
a c t i o n s on b e h a l f 
o f [ B o n H a r b o r ] t h e y 
deem 
a p p r o p r i a t e 
"And 
f u r t h e r , t h e u n d e r s i g n e d 
do h e r e b y f u r t h e r 
c e r t i f y 
and a f f i r m t o 
[ U n i t e d Bank] 
t h a t 
. 
. 
. t h e 
a u t h o r i t y 
h e r e b y 
c e r t i f i e d 
a n d 
a u t h o r i z e d 
i s i n 
c o n f o r m i t y 
w i t h t h e o r g a n i z a t i o n d o c u m e n t s o f [Bon 
H a r b o r ] , a n d t o t h e e x t e n t t h e r e 
s h a l l be a c o n f l i c t 
b e t w e e n 
t h i s 
c e r t i f i c a t e 
a n d 
s a i d 
o r g a n i z a t i o n 
10 
1090302 
d o c u m e n t s , t h e c o n f l i c t 
i s h e r e b y 
w a i v e d a n d t h e 
a u t h o r i t y 
g r a n t e d 
a n d 
c e r t i f i e d 
h e r e i n 
s h a l l 
g o v e r n . " 
U s i n g t h e same s i g n a t u r e 
l i n e s , 
H i n d s a n d K i r k l a n d a l s o 
s i g n e d an " e r r o r s and o m i s s i o n s 
s t a t e m e n t . " 
T h a t document 
s t a t e d t h a t Bon H a r b o r a g r e e d , " i f r e q u e s t e d b y [ U n i t e d Bank] 
o r 
i t s a g e n t , 
t o 
f u l l y 
c o o p e r a t e 
i n t h e c o r r e c t i o n , i f 
n e c e s s a r y 
i n t h e r e a s o n a b l e 
d i s c r e t i o n o f [ U n i t e d Bank,] o f 
any 
a n d a l l l o a n 
c l o s i n g d o c u m e n t s so t h a t a l l 
d o c u m e n t s 
a c c u r a t e l y d e s c r i b e t h e l o a n b e t w e e n [Bon H a r b o r ] a n d [ U n i t e d 
Bank] 
" Bon H a r b o r a l s o a g r e e d " t o c o m p l y w i t h a l l above 
n o t e d r e a s o n a b l e 
r e q u e s t s b y [ U n i t e d Bank] w i t h i n t h i r t y (30) 
d a y s f r o m t h e d a t e o f t h e m a i l i n g o f t h e c o r r e c t i o n 
r e q u e s t s 
by 
[ U n i t e d B a n k ] . " 
H i n d s 
t e s t i f i e d a t h i s d e p o s i t i o n 
t h a t 
t h e 
s i g n a t u r e 
l i n e s 
on 
t h e 
J u l y 
8, 
2005, 
p r o m i s s o r y 
n o t e , 
m o r t g a g e 
a g r e e m e n t , c e r t i f i c a t e o f a u t h o r i t y , a n d e r r o r s a n d 
o m i s s i o n s 
s t a t e m e n t were n o t c o r r e c t b e c a u s e t h e y i d e n t i f i e d D e c a t u r a n d 
G u l f S t r e a m as m a n a g i n g members o f Bon H a r b o r when, i n f a c t , 
H i n d s a n d K i r k l a n d , a c t i n g 
i n d i v i d u a l l y , 
were t h e m a n a g e r s . 
H i n d s t e s t i f i e d t h a t Bon H a r b o r h a d p r o v i d e d U n i t e d Bank w i t h 
i t s 
a r t i c l e s o f o r g a n i z a t i o n b e f o r e 
U n i t e d Bank p r e p a r e d t h e 
11 
1090302 
J u l y 
8 , 2005, d o c u m e n t s . 
H i n d s 
a l s o 
t e s t i f i e d 
t h a t 
he 
and 
K i r k l a n d 
a d v i s e d 
M e i g s - - U n i t e d 
B a n k ' s 
r e p r e s e n t a t i v e 
w i t h 
r e s p e c t 
t o 
t h e 
J u l y 
8, 
2005, 
t r a n s a c t i o n - - o f 
t h e 
e r r o r . 
M e i g s , 
H i n d s 
t e s t i f i e d , 
s a i d 
" t h a t ' s 
t h e 
way 
[ U n i t e d 
Bank] 
w a n t e d us 
t o s i g n , " and 
i n s t r u c t e d H i n d s and 
K i r k l a n d t o 
s i g n 
t h e 
J u l y 
8, 
2005, d o c u m e n t s 
d e s p i t e 
t h e 
e r r o r . 
H i n d s 
and 
K i r k l a n d 
d i d so w i t h k n o w l e d g e o f 
t h e 
e r r o r . 
H i n d s , 
H e r r i c k , 
K a t z , 
and 
V a n c e 
e x e c u t e d 
g u a r a n t i e s 
s e c u r i n g 
t h e 
J u l y 
8, 
2005, 
l o a n . 
E a c h 
o f 
t h e 
g u a r a n t i e s 
i n c l u d e d 
t h e 
f o l l o w i n g 
i d e n t i c a l 
l a n g u a g e 
and 
e a c h 
o f 
t h e 
g u a r a n t o r s c h o s e t h e 
o p t i o n 
i n d i c a t e d by 
t h e 
"X": 
" G u a r a n t o r 
h e r e b y 
u n c o n d i t i o n a l l y 
g u a r a n t e e s 
t h e 
p r o m p t and 
f u l l payment and p e r f o r m a n c e and 
p r o m i s e s 
t o 
pay 
a l l o f 
[Bon 
H a r b o r ' s ] 
p r e s e n t 
and 
f u t u r e , 
j o i n t a n d / o r s e v e r a l , 
d i r e c t and 
i n d i r e c t , 
a b s o l u t e 
and 
c o n t i n g e n t , 
e x p r e s s 
and 
i m p l i e d , 
i n d e b t e d n e s s , 
l i a b i l i t i e s , 
o b l i g a t i o n s and c o v e n a n t s 
( c u m u l a t i v e l y 
' i n d e b t e d n e s s ' ) t o 
[ U n i t e d Bank] as 
f o l l o w s : 
"X 
UNLIMITED: 
G u a r a n t o r ' s 
l i a b i l i t i e s 
and 
o b l i g a t i o n s 
u n d e r 
t h i s 
g u a r a n t y 
( ' o b l i g a t i o n s ' ) 
s h a l l 
be 
u n l i m i t e d 
and 
s h a l l 
i n c l u d e , 
a l l p r e s e n t 
and 
f u t u r e 
w r i t t e n 
a g r e e m e n t s b e t w e e n 
[Bon 
H a r b o r ] 
and 
[ U n i t e d Bank] ( w h e t h e r e x e c u t e d f o r t h e same 
o r 
d i f f e r e n t p u r p o s e s ) i n c l u d i n g , 
b u t 
n o t 
l i m i t e d 
t o , 
t h e 
[ J u l y 8, 2005,] p r o m i s s o r y n o t e s and 
a g r e e m e n t s 
... 
e v i d e n c i n g 
t h e 
i n d e b t e d n e s s , 
t o g e t h e r w i t h 
a l l 
i n t e r e s t 
and 
a l l o f 
[ U n i t e d 
B a n k ' s ] 
e x p e n s e s 
and 
c o s t s 
12 
1090302 
"___ 
LIMITED 
TO 
AN 
AMOUNT: 
G u a r a n t o r ' s 
l i a b i l i t i e s 
and 
o b l i g a t i o n s 
u n d e r 
t h i s 
g u a r a n t y 
( ' o b l i g a t i o n s ' ) s h a l l i n c l u d e a l l p r e s e n t 
and 
f u t u r e 
w r i t t e n a g r e e m e n t s b e t w e e n [ B o n 
H a r b o r ] and 
[ U n i t e d 
B a n k ] ( w h e t h e r 
e x e c u t e d 
f o r 
t h e same o r d i f f e r e n t 
p u r p o s e s ) ... 
b u t 
s h a l l be 
l i m i t e d t o t h e 
p r i n c i p a l 
amount o f 
D o l l a r s 
($ 
), 
t o g e t h e r 
w i t h 
a l l 
i n t e r e s t 
and 
a l l 
o f 
[ U n i t e d 
B a n k ' s ] 
e x p e n s e s and 
c o s t s 
" 
LIMITED 
TO 
THE 
FOLLOWING 
DESCRIBED 
NOTES/AGREEMENTS: 
G u a r a n t o r ' s 
l i a b i l i t i e s 
and 
o b l i g a t i o n s 
u n d e r 
t h i s 
g u a r a n t y 
( ' o b l i g a t i o n s ' ) 
s h a l l 
be 
l i m i t e d 
t o 
t h e 
f o l l o w i n g d e s c r i b e d 
n o t e s 
and 
a g r e e m e n t s 
b e t w e e n 
[ B o n 
H a r b o r ] 
and 
[ U n i t e d 
B a n k ] e v i d e n c i n g 
t h e i n d e b t e d n e s s , 
t o g e t h e r w i t h a l l 
i n t e r e s t 
and 
a l l o f 
[ U n i t e d 
B a n k ' s ] e x p e n s e s 
and 
c o s t s 
" 
D e s p i t e 
t h e l a n g u a g e o f t h e p r o m i s s o r y n o t e s t a t i n g t h a t 
$7 , 50 0 , 0 
0 
0 was 
t r a n s f e r r e d t o 
Bon 
H a r b o r 
on 
J u l y 
8, 
2005, 
U n i t e d B a n k d i d n o t t r a n s f e r t h e f u n d s t h a t day. 
B a s e d on 
t h e 
m a t e r i a l s 
s u b m i t t e d 
t o t h e 
t r i a l 
c o u r t 
b e f o r e 
t h e M a r c h 
20, 
2008, j u d g m e n t , i t a p p e a r s t h a t U n i t e d B a n k d i d t r a n s f e r 
t h e 
$7,500,000 
t o 
Bon 
H a r b o r ; h o w e v e r , 
i t i s u n c l e a r 
p r e c i s e l y 
when t h a t 
t r a n s f e r o c c u r r e d . 
On 
J u l y 
13, 
2005, 
a p p a r e n t l y 
b e f o r e 
t h e $7,500,000 was 
t r a n s f e r r e d , U n i t e d B a n k l o a n e d 
Bon 
H a r b o r $ 2 , 2 0 0 , 0 0 0 . 
H i n d s 
t e s t i f i e d 
a t h i s d e p o s i t i o n 
t h a t , 
when t h e $7,500,000 was 
t r a n s f e r r e d t o Bon H a r b o r , i t was 
u s e d 
t o 
r e p a y 
t h e 
$2,200,000 
l o a n 
and 
t o 
pay 
t h e 
s e l l e r 
o f 
t h e 
p r o p e r t y 
t h e 
r e m a i n i n g 
amount owed 
on 
t h e 
p r o p e r t y . 
Bon 
13 
1090302 
H a r b o r 
s u b s e q u e n t l y 
p a i d 
i n t e r e s t 
on 
i t s i n d e b t e d n e s s 
t o 
U n i t e d 
Bank. 
On A u g u s t 25, 2006, u s i n g t h e same s i g n a t u r e 
l i n e s as 
t h e 
e a r l i e r d o c u m e n t s , H i n d s 
and 
K i r k l a n d e x e c u t e d 
a p r o m i s s o r y 
n o t e 
r e f i n a n c i n g 
Bon 
H a r b o r ' s d e b t w i t h 
U n i t e d 
Bank. 
T h a t 
p r o m i s s o r y n o t e 
i d e n t i f i e d U n i t e d B a n k as 
t h e 
l e n d e r 
and 
Bon 
H a r b o r 
as 
t h e 
b o r r o w e r . 
I t 
s t a t e d 
t h e 
l o a n 
amount 
as 
a p p r o x i m a t e l y $7,553,000 and p r o v i d e d 
f o r a v a r i a b l e i n t e r e s t 
r a t e . 
The 
n o t e 
s t a t e d 
t h a t 
i t was 
s e c u r e d by 
t h e 
J u l y 
8, 
2005, m o r t g a g e . 
U s i n g 
t h e same s i g n a t u r e 
l i n e s , 
H i n d s 
and 
K i r k l a n d a l s o s i g n e d 
a c e r t i f i c a t e o f a u t h o r i t y and 
an 
e r r o r s 
and 
o m i s s i o n s s t a t e m e n t c o n t a i n i n g 
n e a r l y 
i d e n t i c a l 
l a n g u a g e 
as t h a t q u o t e d above f r o m t h e J u l y 8, 2005, d o c u m e n t s . 
H i n d s 
t e s t i f i e d t h a t he once a g a i n 
a d v i s e d M e i g s o f t h e e r r o r i n 
t h e 
s i g n a t u r e 
l i n e s 
o f 
t h e 
d o c u m e n t s 
b u t 
t h a t 
M e i g s 
a g a i n 
i n s t r u c t e d 
h i m 
and 
K i r k l a n d 
t o 
s i g n 
t h e 
d o c u m e n t s 
anyway. 
Once a g a i n , 
H i n d s and 
K i r k l a n d d i d so 
w i t h k n o w l e d g e o f 
t h e 
e r r o r . 
On 
A u g u s t 
25, 
2006, 
H i n d s , 
H e r r i c k , 
K a t z , 
and 
V a n c e 
e x e c u t e d g u a r a n t i e s 
s e c u r i n g 
t h e A u g u s t 25, 2006, l o a n . 
The 
g u a r a n t i e s 
i n c l u d e d 
l a n g u a g e 
i d e n t i c a l 
t o 
t h a t q u o t e d above 
14 
1090302 
f r o m 
t h e 
J u l y 
8 
, 
2005, 
g u a r a n t i e s . 
I n i t s c o m p l a i n t 
and 
amended 
c o m p l a i n t , 
U n i t e d 
B a n k 
s o u g h t e n f o r c e m e n t o f t h e 
A u g u s t 25, 2006, l o a n d o c u m e n t s and g u a r a n t i e s . 
U n i t e d B a n k 
s u b m i t t e d an a f f i d a v i t f r o m i t s 
e m p l o y e e , H. B r u c e T r a m m e l l , 
who 
s t a t e d t h a t , as o f J a n u a r y 4, 2008, t h e amount due on t h e 
A u g u s t 25, 2006, p r o m i s s o r y n o t e , i n c l u d i n g a c c r u e d 
i n t e r e s t , 
was 
$ 8 , 2 2 6 , 4 7 4 , 
and t h a t 
i n t e r e s t 
a c c r u e d a t t h e amount o f 
$1,626 p e r day. 
The 
t r i a l 
c o u r t 
e n t e r e d 
i t s M a r c h 
20, 
2008, 
summary 
j u d g m e n t f o r U n i t e d B a n k b a s e d on t h e s e 
f a c t s . 
A f t e r 
t h e 
e a r l i e r 
a p p e a l s 
f r o m 
t h e 
M a r c h 
20, 
2008, 
j u d g m e n t 
were 
d i s m i s s e d 
by 
t h i s 
C o u r t ' s 
d e c i s i o n 
i n Bon 
H a r b o r , LLC 
v .  
H i n d s , t h e p a r t i e s p r e s e n t e d t h e f o l l o w i n g a d d i t i o n a l f a c t s t o 
t h e 
t r i a l 
c o u r t i n s u p p o r t o f t h e i r 
r e s p e c t i v e m o t i o n s f o r a 
summary j u d g m e n t 
and on Bon 
H a r b o r and 
H i n d s ' s 
m o t i o n t o 
v a c a t e . 
K i r k l a n d 
t e s t i f i e d 
a t d e p o s i t i o n 
t h a t he knew t h a t t h e 
s i g n a t u r e l i n e s on t h e J u l y 8, 2005, J u l y 13, 2005, and A u g u s t 
25, 
2006, d o c u m e n t s were w r o n g and t h a t he a d v i s e d M e i g s o f 
t h e 
e r r o r 
b e f o r e 
s i g n i n g 
any o f t h e d o c u m e n t s . 
K i r k l a n d 
t e s t i f i e d 
t h a t 
he 
s i g n e d 
t h e J u l y 
8, 2005, d o c u m e n t s 
e v e n 
15 
1090302 
t h o u g h he knew t h e y were w r o n g b e c a u s e M e i g s and H i n d s "were 
i n a b i g h u r r y t o g e t i t 
d o n e . " 
H i n d s a l s o t e s t i f i e d 
t h a t he 
a d v i s e d U n i t e d Bank r e p e a t e d l y t h a t t h e s i g n a t u r e l i n e s on t h e 
d o c u m e n t s were w r o n g and t h a t U n i t e d Bank i n s t r u c t e d h i m and 
K i r k l a n d t o s i g n them anyway. 
K i r k l a n d 
t e s t i f i e d 
t h a t i n 
e a r l y 
2007, 
on 
Bon 
H a r b o r ' s 
b e h a l f , 
he 
w o r k e d 
w i t h 
a 
r e p r e s e n t a t i v e o f U n i t e d Bank t o f a c i l i t a t e a c o r r e c t i o n o f 
t h e A u g u s t 25, 2006, d o c u m e n t s . 
K i r k l a n d t e s t i f i e d 
t h a t he 
a d v i s e d t h e members o f Bon H a r b o r t o move 
f o r w a r d 
w i t h t h e 
c o r r e c t i o n , b u t H i n d s , 
H e r r i c k , K a t z , and V a n c e - - a n d 
t h r o u g h 
them 
D e c a t u r 
and 
D G B - - d e c l i n e d 
t o do 
so 
b e c a u s e 
o t h e r 
d i s a g r e e m e n t s w i t h U n i t e d Bank h a d a r i s e n . 
T h i s 
l i t i g a t i o n 
f o l l o w e d . 
H i n d s t e s t i f i e d a t h i s 
d e p o s i t i o n r e g a r d i n g U n i t e d B a n k ' s 
d e l a y i n t r a n s f e r r i n g t h e $7,500,000 p r o m i s e d i n t h e J u l y 8, 
2005, p r o m i s s o r y 
n o t e . 
Bon H a r b o r h a d p u r c h a s e d t h e p r o p e r t y 
f r o m Ray J a c o b s e n . 
J a c o b s e n h a d a c q u i r e d t h e p r o p e r t y i n 
s e v e r a l d i f f e r e n t p a r c e l s i m m e d i a t e l y 
b e f o r e he s o l d i t t o Bon 
H a r b o r . 
Bon H a r b o r , H i n d s t e s t i f i e d , h a d p l a c e d $2,800,000 i n 
e s c r o w t o p a y c l o s i n g 
c o s t s a n d t o f u n d 
$2,500,000 o f t h e 
p u r c h a s e 
p r i c e n o t f u n d e d b y t h e $7,500,000 
l o a n . 
H i n d s 
16 
1090302 
e x p l a i n e d 
t h a t , b a s e d 
on 
U n i t e d 
B a n k ' s a s s u r a n c e s t h a t 
t h e 
$7,500,000 w o u l d be 
t r a n s f e r r e d on J u l y 8, 2005, 
Bon 
H a r b o r 
d i r e c t e d i t s c l o s i n g a g e n t t h a t day t o u s e t h e $2,800,000 i n 
e s c r o w t o f u n d J a c o b s e n ' s p u r c h a s e some o f t h e s e v e r a l 
p a r c e l s 
o f r e a l e s t a t e t h a t made up t h e p r o p e r t y he l a t e r s o l d t o Bon 
H a r b o r . 
The 
$7 , 
500 , 
0 
00 
was 
t r a n s f e r r e d 
t o 
Bon 
H a r b o r 
i n 
two 
i n s t a l l m e n t s - - o n e 
on J u l y 22, 2005, and a s e c o n d on J u l y 25, 
2005. 
I n t h e i n t e r i m , on J u l y 13, 2005, Bon H a r b o r 
o b t a i n e d 
a s m a l l e r l o a n f r o m U n i t e d Bank i n t h e amount o f $2,200,000 t o 
f a c i l i t a t e J a c o b s e n ' s p u r c h a s e o f t h e r e m a i n i n g p a r c e l s 
t h a t 
made up t h e p r o p e r t y . 
On J u l y 25, 2005, Bon H a r b o r c l o s e d i t s 
p u r c h a s e o f t h e p r o p e r t y 
f r o m J a c o b s e n . 
Bon H a r b o r u s e d t h e 
$7,500,000 t o p a y o f f t h e $2,200,000 J u l y 13, 2005, 
l o a n 
and 
t o p a y 
t h e r e m a i n i n g f u n d s owed J a c o b s e n . 
H i n d s 
t e s t i f i e d 
t h a t he u n d e r s t o o d t h a t Bon 
H a r b o r h a d t o p a y more f o r t h e 
c l o s i n g 
b e c a u s e 
t h e s e 
v a r i o u s 
t r a n s a c t i o n s 
o c c u r r e d 
o v e r 
s e v e r a l d a y s 
i n s t e a d o f as one 
t r a n s a c t i o n on J u l y 8, 
2005. 
He a l s o 
t e s t i f i e d t h a t Bon H a r b o r , on J a c o b s e n ' s b e h a l f , 
p a i d 
one 
o r i g i n a l l a n d o w n e r an a d d i t i o n a l $100,000 b e c a u s e o f t h e 
d e l a y . 
17 
1090302 
A t 
h i s d e p o s i t i o n , H i n d s 
t e s t i f i e d 
t h a t he 
d i d n o t know 
w h e t h e r Bon 
H a r b o r w o u l d have p u r c h a s e d t h e 
p r o p e r t y 
had 
i t 
known t h a t 
t h e 
c l o s i n g w o u l d n o t 
be c o m p l e t e d u n t i l 
J u l y 
25, 
2005. 
I n a s u b s e q u e n t 
a f f i d a v i t 
s u b m i t t e d w i t h h i s m o t i o n s , 
he 
t e s t i f i e d 
t h a t 
Bon 
H a r b o r 
w o u l d 
n o t 
have 
a l l o w e d 
e x p e n d i t u r e o f t h e $2,800,000 f r o m e s c r o w on J u l y 8, 2005, 
and 
t h a t 
he 
w o u l d 
n o t 
h a v e g u a r a n t e e d 
t h e 
l o a n , 
had 
t h e y known 
t h a t 
t h e $7,500,000 w o u l d n o t 
be 
t r a n s f e r r e d on 
t h a t 
day. 
The 
$7 , 
500 , 
0 
00 
was 
t r a n s f e r r e d 
t o 
Bon 
H a r b o r 
i n 
two 
i n s t a l l m e n t s - - $ 3 , 5 0 0 , 0 0 0 f r o m U n i t e d Bank and $4,000,000 f r o m 
H a n c o c k Bank. 
H i n d s 
t e s t i f i e d 
a t h i s d e p o s i t i o n 
t h a t he 
d i d 
n o t know u n t i l 
J u l y 9 o r 
10, 
2005, t h a t 
U n i t e d Bank was 
n o t 
g o i n g t o f u n d t h e e n t i r e $7,500,000 l o a n . 
I n h i s 
a f f i d a v i t s , 
H i n d s t e s t i f i e d 
t h a t he 
l e a r n e d 
f o r t h e 
f i r s t t i m e on J u l y 
11 
o r 12, 2005, t h a t U n i t e d Bank was 
n o t g o i n g t o f u n d t h e 
e n t i r e 
l o a n 
and 
t h a t 
t h e 
$4,000,000 e v e n t u a l l y 
p r o v i d e d 
by 
H a n c o c k 
Bank 
was 
o r i g i n a l l y 
s u p p o s e d 
t o 
have 
b e e n 
p r o v i d e d 
by 
T r u s t m a r k Bank. 
U n i t e d 
Bank p r e s e n t e d 
a commitment 
l e t t e r 
d a t e d J u l y 6, 2005, s i g n e d 
by H i n d s and 
K i r k l a n d as " m a n a g i n g 
members" o f Bon H a r b o r . 
T h a t l e t t e r 
o u t l i n e d t h e t e r m s o f 
t h e 
J u l y 
8, 
2005, 
l o a n , 
s t a t i n g , 
i n p a r t : 
"Loan Amount: 
up 
t o 
18 
1090302 
$7,500,000 
U n i t e d 
Bank 
i s 
o n l y 
c o m m i t t i n g 
t o 
l e n d 
$3,500,000 
o f 
t h i s 
amount. 
H a n c o c k Bank, 
G u l f p o r t , MS 
i s 
e x p e c t e d 
t o f u n d t h e r e m a i n i n g $ 4 , 0 0 0 , 0 0 0 . 
U n i t e d Bank i s n o t 
c o m m i t t i n g 
t o f u n d o r c a r r y on i t s b o o k s a l o a n i n e x c e s s 
o f 
$ 3 , 5 0 0 , 0 0 0 . " 
F i n a l l y , 
t o s u p p o r t 
t h e i r m o t i o n t o v a c a t e 
t h e M a r c h 
20, 
2008, j u d g m e n t and 
t h e i r m o t i o n s f o r a summary j u d g m e n t , 
Bon 
H a r b o r and 
H i n d s p r e s e n t e d 
a 
l e t t e r 
d a t e d 
J a n u a r y 
24, 
2007, 
f r o m B a n k s , an e m p l o y e e o f U n i t e d Bank, t o t h e 
c l o s i n g 
a g e n t 
o f t h e v a r i o u s t r a n s a c t i o n s w i t h Bon H a r b o r . 
I n t h a t 
l e t t e r , 
B a n k s , on b e h a l f o f U n i t e d Bank, s t a t e d : 
" P e r 
o u r 
t e l e p h o n e 
c o n v e r s a t i o n d a t e d 
01/23/07 
t h i s 
l e t t e r 
i s t o f o r m a l l y n o t i f y 
you 
o f a p r o b l e m 
w i t h o u r d o c u m e n t a t i o n on t h e above r e f e r e n c e d 
l o a n . 
An 
i n s u r e d 
c l o s i n g 
was 
h e l d 
i n 
y o u r 
o f f i c e 
on 
07/08/2005 and 
p o l i c y was 
i s s u e d . 
"The 
M o r t g a g e 
... 
was 
s i g n e d 
i n c o r r e c t l y . 
I t 
was 
s i g n e d 
by: 
D e c a t u r , 
LLC 
and 
G u l f 
S t r e a m 
P r o p e r t i e s , 
I n c . 
These 
two 
e n t i t i e s 
a r e 
n o t 
a u t h o r i z e d 
s i g n e r s 
f o r 
Bon 
H a r b o r , 
LLC. 
The 
a u t h o r i z e d 
s i g n e r s 
s h o u l d 
have 
b e e n 
M i c h a e l 
F. 
H i n d s , 
M a n a g i n g Member and 
P a u l K i r k l a n d , M a n a g i n g 
Member. 
T h i s 
i n f o r m a t i o n 
c a n 
be 
f o u n d 
i n 
t h e 
a r t i c l e s 
o f 
o r g a n i z a t i o n w h i c h 
was 
s t i p u l a t e d 
i n 
y o u r c l o s i n g commitment 
b i n d e r . 
" Y o u r 
i m m e d i a t e 
a t t e n t i o n t o 
t h i s 
m a t t e r 
i s 
r e q u e s t e d 
and 
n o t i f i c a t i o n 
o f 
t h e 
c o r r e c t i o n 
i n 
w r i t i n g 
w i l l be 
a p p r e c i a t e d . " 
19 
1090302 
Bon H a r b o r a n d H i n d s p r e s e n t e d an a f f i d a v i t f r o m t h e i r 
c o u n s e l 
s t a t i n g t h a t H i n d s d i d 
n o t r e c e i v e t h e l e t t e r 
u n t i l 
a f t e r t h e 
t r i a l 
c o u r t e n t e r e d i t s M a r c h 20, 2008, summary j u d g m e n t f o r 
U n i t e d 
B a n k . 
U n i t e d 
Bank 
p r e s e n t e d 
an 
a f f i d a v i t 
f r o m 
a 
p a r a l e g a l e m p l o y e d by i t s 
c o u n s e l s t a t i n g t h a t he h a d p r o d u c e d 
t h e J a n u a r y 24, 2007, 
l e t t e r t o Bon H a r b o r and H i n d s ' s 
c o u n s e l 
b e f o r e 
t h e M a r c h 
20, 2008, 
j u d g m e n t , 
a n d e v e n 
b e f o r e 
Bon 
H a r b o r 
and H i n d s 
r e s p o n d e d 
t o U n i t e d 
B a n k ' s 
m o t i o n 
f o r a 
summary 
j u d g m e n t . 
A n a l y s i s 
I n 
t h e i r p r i n c i p a l b r i e f on a p p e a l , Bon H a r b o r a n d H i n d s 
a r g u e 
t h a t 
t h e 
t r i a l 
c o u r t 
e r r e d 
i n e n t e r i n g 
a 
summary 
j u d g m e n t 
a g a i n s t 
H i n d s b a s e d on t h e g u a r a n t y he 
s i g n e d on 
A u g u s t 25, 2006. 
Bon H a r b o r and H i n d s a l s o c o n t e n d t h a t t h e 
t r i a l c o u r t e r r e d i n f a i l i n g t o c o n s i d e r t h e J a n u a r y 24, 2007, 
l e t t e r f r o m B a n k s i n d e c i d i n g t h e i r m o t i o n s t o v a c a t e a n d 
f o r 
a summary j u d g m e n t ; 
t h a t t h e t r i a l 
c o u r t 
e r r e d i n 
s t r i k i n g 
H i n d s ' s a f f i d a v i t s ; a n d t h a t t h e t r i a l c o u r t e r r e d i n e n t e r i n g 
a 
summary 
j u d g m e n t 
f o r U n i t e d 
Bank 
a n d t h e 
t h i r d - p a r t y 
d e f e n d a n t s 
on 
t h e 
c o u n t e r c l a i m s 
a n d 
t h i r d - p a r t y 
c l a i m s 
a s s e r t e d a g a i n s t them. 
20 
1090302 
I . 
H i n d s ' s 
L i a b i l i t y as a G u a r a n t o r 
H i n d s 
a r g u e s 
t h a t t h e t r i a l 
c o u r t 
e r r e d i n e n t e r i n g a 
summary j u d g m e n t 
a g a i n s t h i m b e c a u s e , he a r g u e s , he i s n o t 
l i a b l e 
on t h e A u g u s t 
25, 2006, 
g u a r a n t y 
( h e r e i n a f t e r " t h e 
g u a r a n t y " ) . 
H i n d s r e a s o n s t h a t t h e l a n g u a g e o f t h e g u a r a n t y 
e x t e n d s H i n d s ' s 
l i a b i l i t y 
o n l y t o w r i t t e n a g r e e m e n t s 
b e t w e e n 
Bon 
H a r b o r a n d U n i t e d Bank a n d t h a t , 
b e c a u s e 
Bon 
H a r b o r ' s 
s i g n a t u r e o f t h e u n d e r l y i n g p r o m i s s o r y n o t e was d e f e c t i v e , t h e 
g u a r a n t y does n o t s e c u r e any v a l i d w r i t t e n 
a g r e e m e n t s . 
"Our 
r e v i e w o f a summary j u d g m e n t i s de n o v o . 
'A 
m o t i o n f o r 
summary j u d g m e n t i s g r a n t e d o n l y when t h e 
e v i d e n c e 
d e m o n s t r a t e s 
t h a t 
" t h e r e i s no 
g e n u i n e 
i s s u e as t o any m a t e r i a l 
f a c t a n d t h a t t h e m o v i n g 
p a r t y i s e n t i t l e d t o a j u d g m e n t as a m a t t e r o f 
l a w . " 
R u l e 
5 6 ( c ) , A l a . R. C i v . P.' 
R e i c h e r t v . 
C i t y o f  
M o b i l e , 776 So. 2d 7 6 1 , 764 ( A l a . 
2 0 0 0 ) . We 
a p p l y 
'the 
same 
s t a n d a r d as t h a t o f t h e 
t r i a l 
c o u r t i n 
d e t e r m i n i n g 
w h e t h e r 
t h e e v i d e n c e b e f o r e t h e c o u r t 
made o u t a g e n u i n e 
i s s u e o f m a t e r i a l 
f a c t . ' 
B u s s e y 
 
v. J o h n D e e r e Co., 531 So. 2d 860, 862 ( A l a . 1 9 8 8 ) ; 
S y s t e m 
D y n a m i c s 
I n t ' l , 
I n c . v. B o y k i n , 683 So. 2d 
419, 420 ( A l a . 1 9 9 6 ) . I n o r d e r t o d e f e a t a p r o p e r l y 
s u p p o r t e d 
m o t i o n 
f o r a 
summary 
j u d g m e n t , 
t h e 
n o n m o v i n g 
p a r t y must p r e s e n t 
s u b s t a n t i a l 
e v i d e n c e 
t h a t 
c r e a t e s 
a 
g e n u i n e 
i s s u e 
o f 
m a t e r i a l 
f a c t . 
' S u b s t a n t i a l e v i d e n c e ' i s ' e v i d e n c e o f s u c h 
w e i g h t 
and q u a l i t y t h a t f a i r - m i n d e d p e r s o n s i n t h e e x e r c i s e 
o f 
i m p a r t i a l 
j u d g m e n t 
c a n 
r e a s o n a b l y 
i n f e r 
t h e 
e x i s t e n c e o f t h e f a c t s o u g h t t o be p r o v e d . ' 
West v .  
F o u n d e r s 
L i f e A s s u r a n c e Co. o f F l o r i d a , 547 So. 2d 
870, 871 ( A l a . 1 9 8 9 ) . " 
21 
1090302 
B o r d e r s v. C i t y o f H u n t s v i l l e , 875 So. 2d 1168, 1776-77 ( A l a . 
2 0 0 3 ) . 
" ' I n t h e p r e s e n t c a s e , t h e p l a i n t i f f a s k e d f o r and 
was 
g r a n t e d 
a summary 
j u d g m e n t . 
On 
a m o t i o n 
f o r an 
o f f e n s i v e 
summary j u d g m e n t , 
t h a t i s , one on b e h a l f o f t h e p l a i n t i f f , 
t h e 
p l a i n t i f f 
must 
c o n c l u s i v e l y 
p r o v e 
e v e r y 
e l e m e n t 
o f 
h i s 
c l a i m . ' " 
Ex 
p a r t e 
Ramsay, 
829 
So. 
2d 
146, 
153 
( A l a . 
2 0 0 2 ) ( q u o t i n g Ramsay v. G r o v e 
H i l l Mem'l Hosp. A u x i l i a r y , 
829 
So. 2d 142, 144-45 
( A l a . C i v . App. 
2 0 0 0 ) ) . 
A d d i t i o n a l l y , 
we 
n o t e 
t h a t 
" ' [ q ] u e s t i o n s 
o f 
l a w 
a r e 
r e v i e w e d de n o v o . ' " H e n d e r s o n v. M e a d W e s t v a c o C o r p . , 23 So. 3d 
625, 629 
( A l a . 2 
0 
0 
9 ) ( q u o t i n g A l a b a m a E l e c . Coop. v. 
B a i l e y ' s  
C o n s t r . Co., 
950 So. 2d 280, 283 
( A l a . 2 0 0 6 ) . 
"As l o n g as t h e 
c o n t r a c t u a l 
t e r m s 
a r e 
c l e a r 
and 
u n a m b i g u o u s , 
q u e s t i o n s o f 
t h e i r 
l e g a l 
e f f e c t 
a r e q u e s t i o n s o f l a w . " 
W i n k l e b l a c k v.  
M u r p h y , 811 So. 2d 521, 525-26 ( A l a . 2 0 0 1 ) ( c i t i n g 
C o m m e r c i a l 
 
C r e d i t C o r p . v. L e g g e t t , 744 So. 2d 890 
( A l a . 1 9 9 9 ) ) . 
I n 
t h e i r p r i n c i p a l b r i e f on a p p e a l , Bon H a r b o r and 
H i n d s 
s t a t e 
t h e 
f o l l o w i n g 
r e g a r d i n g 
Bon 
H a r b o r ' s 
i n d e b t e d n e s s t o 
U n i t e d Bank: 
"Bon 
H a r b o r 
r e c o g n i z e s t h a t 
i t may 
n o t 
a c c e p t 
t h e 
p r o c e e d s f r o m U n i t e d [Bank] and t h e n c l a i m 
t h a t 
i t b e a r s no 
l i a b i l i t y t o r e p a y i t on t h e g r o u n d 
t h a t 
i t d i d n o t e x e c u t e t h e l o a n d o c u m e n t s . 
The company 
22 
1090302 
a c k n o w l e d g e s 
t h a t 
t h e money 
r e c e i v e d 
f r o m 
U n i t e d 
[Bank] 
was 
n o t 
a 
g i f t , 
and 
e x p e c t e d 
t o 
p a y 
a 
r e a s o n a b l e 
r a t e 
o f 
i n t e r e s t 
f o r 
t h e 
u s e 
o f 
t h e 
money. 
Bon 
H a r b o r does n o t c l a i m 
t h a t t h e r a t e 
o f 
i n t e r e s t 
p r o v i d e d f o r 
i n t h e 
l o a n d o c u m e n t s 
was 
u n r e a s o n a b l e . 
However, i t d i d n o t e n t e r 
i n t o 
t h e 
l o a n d o c u m e n t s p r e s e n t e d by U n i t e d 
[ B a n k ] , o r 
any 
o t h e r w r i t t e n a g r e e m e n t s , 
and i s t h e r e f o r e n o t b o u n d 
a c c o r d i n g t o t h e t e r m s o f t h o s e d o c u m e n t s . " 
(Bon H a r b o r and H i n d s ' s b r i e f , 
a t 
44.) 
The g u a r a n t y 
s t a t e d : 
" G u a r a n t o r 
h e r e b y 
u n c o n d i t i o n a l l y 
g u a r a n t e e s 
t h e 
p r o m p t and 
f u l l payment and p e r f o r m a n c e 
and p r o m i s e s 
t o 
p a y 
a l l o f 
[Bon 
H a r b o r ' s ] 
p r e s e n t 
and 
f u t u r e , 
j o i n t a n d / o r 
s e v e r a l , 
d i r e c t and 
i n d i r e c t , a b s o l u t e 
and 
c o n t i n g e n t , e x p r e s s and 
i m p l i e d , 
i n d e b t e d n e s s , 
l i a b i l i t i e s , 
o b l i g a t i o n s and c o v e n a n t s 
( c u m u l a t i v e l y 
' i n d e b t e d n e s s ' ) t o 
[ U n i t e d Bank] as 
f o l l o w s : 
"X 
UNLIMITED: 
G u a r a n t o r ' s 
l i a b i l i t i e s 
and 
o b l i g a t i o n s 
u n d e r 
t h i s 
g u a r a n t y 
( ' o b l i g a t i o n s ' ) 
s h a l l 
be 
u n l i m i t e d 
and 
s h a l l 
i n c l u d e , 
a l l p r e s e n t 
 
and 
f u t u r e 
w r i t t e n a g r e e m e n t s b e t w e e n 
[Bon 
H a r b o r ] 
 
and 
[ U n i t e d Bank] 
( w h e t h e r e x e c u t e d f o r t h e same o r 
d i f f e r e n t p u r p o s e s ) 
i n c l u d i n g , b u t n o t 
l i m i t e d t o , 
t h e 
[ J u l y 8, 2005,] p r o m i s s o r y n o t e s and a g r e e m e n t s 
... 
e v i d e n c i n g t h e i n d e b t e d n e s s , t o g e t h e r w i t h a l l 
i n t e r e s t 
and 
a l l o f 
[ U n i t e d B a n k ' s ] 
e x p e n s e s 
and 
c o s t s 
" 
( E m p h a s i s 
added.) 
H i n d s 
a r g u e s 
t h a t 
t h e 
s c o p e 
o f 
h i s 
l i a b i l i t y 
u n d e r 
t h e g u a r a n t y 
c a n n o t 
be 
e x t e n d e d b e y o n d 
t h e 
l a n g u a g e 
o f t h e g u a r a n t y . 
He 
c i t e s 
§ 8 - 9 - 2 ( 3 ) , 
A l a . Code 
1975, 
w h i c h 
r e q u i r e s 
t h a t p r o m i s e s 
" t o a n s w e r f o r t h e 
d e b t , 
d e f a u l t 
o r m i s c a r r i a g e o f a n o t h e r " be 
i n w r i t i n g . 
He 
a l s o 
23 
1090302 
r e l i e s on s e v e r a l c a s e s s t a t i n g t h a t g u a r a n t y a g r e e m e n t s must 
be 
s t r i c t l y 
c o n s t r u e d .
3 
H i n d s t h e n r e a s o n s 
t h a t t h e p h r a s e 
" s h a l l 
i n c l u d e , 
a l l p r e s e n t a n d f u t u r e 
w r i t t e n 
a g r e e m e n t s " 
l i m i t s 
h i s l i a b i l i t y 
u n d e r 
t h e g u a r a n t y 
t o " e x p r e s s a n d 
3 H i n d s 
c i t e s 
M i l l e r 
v. 
S t e w a r t , 
22 U.S. 
680, 702-03 
( 1 8 2 4 ) ( " N o t h i n g 
c a n be 
c l e a r e r , 
b o t h 
upon 
p r i n c i p l e a n d 
a u t h o r i t y , t h a n t h e d o c t r i n e , 
t h a t t h e l i a b i l i t y o f a 
s u r e t y 
i s n o t t o be e x t e n d e d , by i m p l i c a t i o n , b e y o n d t h e t e r m s o f h i s 
c o n t r a c t . To t h e e x t e n t , 
a n d i n t h e manner, a n d u n d e r t h e 
c i r c u m s t a n c e s , 
p o i n t e d o u t i n 
h i s 
o b l i g a t i o n , he i s 
b o u n d , a n d 
no f a r t h e r . I t 
i s 
n o t s u f f i c i e n t t h a t he may s u s t a i n no i n j u r y 
by a c h a n g e i n t h e c o n t r a c t , o r t h a t i t 
may e v e n be f o r h i s 
b e n e f i t . He h a s a r i g h t t o s t a n d upon t h e v e r y 
t e r m s o f 
h i s 
c o n t r a c t ; and i f 
he d o e s n o t a s s e n t t o any v a r i a t i o n o f i t , 
and a v a r i a t i o n i s 
made, i t 
i s f a t a l . " ) ; M e d l e y v . S o u t h T r u s t  
Bank, 500 So. 2d 1075, 1081 
( A l a . 
1 9 8 6 ) ( " I t 
i s f u n d a m e n t a l 
t h a t t h e l i a b i l i t y 
o f a g u a r a n t o r 
w i l l n o t be e x t e n d e d b y 
i m p l i c a t i o n b e y o n d t h e t e r m s o f h i s c o n t r a c t . I t m a t t e r s n o t 
t h a t he o r she s u s t a i n s no i n j u r y o r e v e n t h a t i t 
may be 
f o r 
h i s 
o r h e r b e n e f i t . 
T h i s 
C o u r t h a s s a i d t h a t t h e g u a r a n t o r 
'has a r i g h t t o s t a n d upon t h e v e r y t e r m s o f h i s 
c o n t r a c t , a n d 
i f he does n o t a s s e n t t o a n y v a r i a t i o n o f i t , 
a n d a v a r i a t i o n 
i s made, i t 
i s f a t a l . ' R u s s e l l v. G a r r e t t , 208 A l a . 92, 96-97, 
93 
So. 711 
( 1 9 2 2 ) , 
q u o t i n g 
M a n a t e e 
C o u n t y 
S t a t e 
Bank v .  
W e a t h e r l y , 144 A l a . 
655, 39 So. 988 
( 1 9 0 5 ) . " ) ; 
M c G e e v e r v .  
T e r r e H a u t e B r e w i n g Co., 201 A l a . 
2 
90 
, 2 
92 
, 78 So. 66, 68 
( 1 9 1 8 ) ( " I t i s s e t t l e d i n t h i s 
j u r i s d i c t i o n 
t h a t t h e c o n t r a c t 
o f a g u a r a n t o r must be 
s t r i c t l y 
c o n s t r u e d , 
a c c o r d i n g 
t o t h e 
l e t t e r o f t h e u n d e r t a k i n g . " ) ; 
M a n a t e e C o u n t y 
S t a t e 
Bank v .  
W e a t h e r l y , 144 A l a . 655, 658 39 So. 988, 988-89 
(1 905) ("The 
r u l e seems t o be w e l l s e t t l e d i n t h i s s t a t e t h a t t h e c o n t r a c t 
o f a s u r e t y o r g u a r a n t o r must be s t r i c t l y c o n s t r u e d 
a c c o r d i n g 
t o t h e l e t t e r o f t h e u n d e r t a k i n g . 
The s u r e t y h a s a r i g h t t o 
s t a n d upon t h e t e r m s o f h i s c o n t r a c t , a n d i t 
c a n n o t 
w i t h o u t 
h i s 
a s s e n t be c h a n g e d i n 
any r e s p e c t . To t h e e x t e n t a n d i n 
t h e 
manner s t a t e d i n 
h i s c o n t r a c t he i s 
b o u n d , a n d no f u r t h e r . " ) . 
24 
1090302 
i m p l i e d [ ] 
i n d e b t e d n e s s , 
l i a b i l i t i e s , 
o b l i g a t i o n s 
and 
c o v e n a n t s , " 
a r i s i n g f r o m w r i t t e n 
a g r e e m e n t s . 
U n i t e d Bank c o n t e n d s t h a t t h e p h r a s e 
" s h a l l 
i n c l u d e , a l l 
p r e s e n t 
and 
f u t u r e 
w r i t t e n 
a g r e e m e n t s " 
i s 
n o t 
l i m i t i n g 
i n 
n a t u r e . 
U n i t e d 
Bank 
n o t e s 
t h a t 
t h e 
p r e c e d i n g 
p a r a g r a p h 
p r o v i d e s 
t h a t 
H i n d s 
g u a r a n t e e s 
t h e 
" e x p r e s s 
and 
i m p l i e d , 
i n d e b t e d n e s s , 
l i a b i l i t i e s , 
o b l i g a t i o n s and c o v e n a n t s " b e t w e e n 
Bon 
H a r b o r and 
U n i t e d 
Bank. 
( E m p h a s i s added.) 
U n i t e d 
Bank 
t h e n a r g u e s t h a t t h e w o r d s " s h a l l i n c l u d e " a r e n o t 
l i m i t i n g 
i n 
n a t u r e , 
b u t 
a r e 
r a t h e r 
w o r d s 
o f 
e n l a r g e m e n t , 
c i t i n g 
S o u t h e a s t e r n M e a t s o f P e l h a m , I n c . v. C i t y o f B i r m i n g h a m , 8 95 
So. 
2d 
90 9 
( A l a . 2004 ). 
U n i t e d 
Bank 
t h e n 
n o t e s 
t h a t 
t h e 
g u a r a n t y 
a g r e e m e n t 
c o n t a i n e d 
t h r e e 
p o s s i b l e 
p a r a g r a p h s 
d e s c r i b i n g t h e s c o p e o f t h e g u a r a n t y : u n l i m i t e d , 
l i m i t e d t o 
an 
amount, and 
l i m i t e d t o s p e c i f i e d a g r e e m e n t s . 
H i n d s and 
U n i t e d 
Bank s e l e c t e d 
t h e 
f i r s t p a r a g r a p h . 
U n i t e d Bank a r g u e s 
t h a t , 
i f 
t h e 
p a r t i e s 
had 
w a n t e d 
t o 
l i m i t 
t h e 
g u a r a n t y 
t o 
w r i t t e n 
a g r e e m e n t s , 
t h e y 
c o u l d 
have 
s e l e c t e d 
t h e 
t h i r d 
o p t i o n 
and 
e x p r e s s l y 
l i m i t e d t h e g u a r a n t y t o w r i t t e n a g r e e m e n t s b e t w e e n 
Bon 
H a r b o r and 
U n i t e d 
Bank. 
I n s t e a d , 
t h e 
p a r t i e s c h o s e 
t h e 
25 
1090302 
f i r s t o p t i o n w h i c h s t a t e d i n s t e a d t h a t t h e g u a r a n t y " s h a l l 
be 
u n l i m i t e d . " 
We a g r e e w i t h U n i t e d B a n k ' s c o n s t r u c t i o n o f t h e 
g u a r a n t y . 
I n S o u t h e a s t e r n M e a t s , 
t h i s C o u r t 
s t a t e d : 
" I n a n o t h e r c o n t e x t , 
t h i s C o u r t e x p l a i n e d 
t h a t 
t h e 
w o r d 
' " i n c l u d i n g " 
i s 
n o t 
t o 
be 
r e g a r d e d 
as 
 
l i m i t a t i o n a l 
o r 
r e s t r i c t i v e , 
b u t 
m e r e l y 
as 
a 
p a r t i c u l a r s p e c i f i c a t i o n o f s o m e t h i n g t o be 
i n c l u d e d 
o r 
t o c o n s t i t u t e a p a r t 
o f some o t h e r 
t h i n g . ' 
Sims  
v. 
M o o r e , 
288 
A l a . 
630, 
635, 
264 
So. 
2d 
484 , 
487 
(1972) ( e m p h a s i s a d d e d ) . 
' " I n c l u d i n g " 
i s n o t 
a w o r d 
o f 
l i m i t a t i o n , 
r a t h e r 
i t i s a w o r d o f 
e n l a r g e m e n t , 
and 
i n 
o r d i n a r y 
s i g n i f i c a n c e a l s o 
may 
i m p l y 
t h a t 
s o m e t h i n g 
e l s e 
has 
b e e n 
g i v e n 
b e y o n d 
t h e 
g e n e r a l 
 
l a n g u a g e w h i c h p r e c e d e s 
i t . ' I d . 
( e m p h a s i s a d d e d ) . " 
895 
So. 
2d 
a t 
913. 
T h e r e f o r e , 
t h e p h r a s e 
" s h a l l 
i n c l u d e 
... 
w r i t t e n a g r e e m e n t s " ( e m p h a s i s added) c a n n o t r e a s o n a b l y be 
r e a d 
as l i m i t i n g o r r e s t r i c t i n g t h e s c o p e o f t h e g u a r a n t y . 
T h i s i s 
t r u e 
p a r t i c u l a r l y 
c o n s i d e r i n g 
t h e 
i m m e d i a t e l y 
p r e c e d i n g 
p h r a s e , w h i c h s t a t e s t h a t 
t h e g u a r a n t y 
" s h a l l be 
u n l i m i t e d , " 
and 
c o n s i d e r i n g 
t h e 
a l t e r n a t i v e 
c h o i c e s 
t h a t 
w o u l d 
have 
a l l o w e d 
t h e p a r t i e s t o s p e c i f y t h a t 
t h e g u a r a n t y was 
l i m i t e d 
t o c e r t a i n a g r e e m e n t s . 
A c c o r d i n g l y , 
H i n d s was 
l i a b l e u n d e r t h e g u a r a n t y f o r 
Bon 
H a r b o r ' s 
i n d e b t e d n e s s , 
e x p r e s s 
and 
i m p l i e d , 
w r i t t e n 
o r 
o t h e r w i s e , 
t o 
U n i t e d 
Bank. 
B a s e d 
on 
t h e 
p r e v i o u s l y 
n o t e d 
26 
1090302 
a d m i s s i o n o f 
l i a b i l i t y 
o f Bon H a r b o r , Bon H a r b o r i s i n d e b t e d 
t o 
U n i t e d Bank f o r t h e $7,500,000 t r a n s f e r r e d t o i t i n 
J u l y 
2005 and f o r r e a s o n a b l e i n t e r e s t on t h a t d e b t . 
As a 
r e s u l t , 
U n i t e d Bank has shown t h a t t h e r e i s no g e n u i n e i s s u e as t o any 
m a t e r i a l 
f a c t r e g a r d i n g H i n d s ' s 
l i a b i l i t y 
u n d e r t h e g u a r a n t y 
f o r 
Bon 
H a r b o r ' s i n d e b t e d n e s s t o U n i t e d Bank and 
t h a t i t i s 
e n t i t l e d 
t o a j u d g m e n t as a m a t t e r o f l a w . 
The 
a b s e n c e 
o f 
p r o p e r s i g n a t u r e s o b v i o u s l y does n o t a f f o r d a d e f e n s e t o Bon 
H a r b o r ' s 
i n d e b t e d n e s s 
o r 
Bon 
H a r b o r 
and 
H i n d s 
w o u l d 
n o t 
c o n c e d e 
Bon 
H a r b o r ' s 
l i a b i l i t y 
i n t h e i r 
p r i n c i p a l 
b r i e f 
on 
a p p e a l . 
G i v e n t h e s c o p e 
o f t h e g u a r a n t y as 
i t r e l a t e s 
t o 
i m p l i e d l i a b i l i t i e s o f Bon H a r b o r , we n e e d n o t f u r t h e r a d d r e s s 
t h e 
i m p l i c a t i o n s o f t h e a b s e n c e o f a l l e g e d p r o p e r 
s i g n a t u r e s . 
H i n d s , t h e r e f o r e , has n o t shown t h a t t h e t r i a l c o u r t e r r e d i n 
e n t e r i n g a summary j u d g m e n t a g a i n s t 
h i m . 
I I . 
N e w l y D i s c o v e r e d E v i d e n c e 
Bon 
H a r b o r 
and 
H i n d s 
n e x t 
a r g u e 
t h a t 
t h e 
t r i a l 
c o u r t 
e r r e d i n f a i l i n g t o g r a n t t h e i r m o t i o n t o s e t a s i d e t h e 
M a r c h 
20, 2008, j u d g m e n t and 
t h e i r m o t i o n s 
f o r a summary j u d g m e n t 
b a s e d 
on 
n e w l y 
d i s c o v e r e d 
e v i d e n c e , i . e . , t h e 
J a n u a r y 
24, 
2007, l e t t e r f r o m B a n k s . 
S p e c i f i c a l l y , t h e y c o n t e n d t h a t t h e 
27 
1090302 
M a r c h 20, 2008, o r d e r was i n t e r l o c u t o r y a n d , t h e r e f o r e , 
t h a t 
t h e 
t r i a l 
c o u r t h a d d i s c r e t i o n t o r e c o n s i d e r t h e j u d g m e n t i n 
l i g h t o f t h e new e v i d e n c e . 
C i t i n g Simmons M a c h i n e r y Co. v . M  
& M B r o k e r a g e , I n c . , 409 So. 2d 7 4 3 , 759 ( A l a . 
1 9 8 1 ) , Bon 
H a r b o r and H i n d s c h a r a c t e r i z e t h e J a n u a r y 24, 2007, 
l e t t e r as 
an a d m i s s i o n by U n i t e d Bank o f t h e u l t i m a t e 
f a c t a t i s s u e i n 
t h e c a s e , a n d t h e y a r g u e t h a t t h e t r i a l 
c o u r t ' s 
d e c i s i o n n o t 
t o 
c o n s i d e r 
i t was 
a r b i t r a r y . 
Bon H a r b o r a n d H i n d s 
a r g u e , 
b a s e d on t h e a f f i d a v i t o f t h e i r 
c o u n s e l , 
t h a t 
t h e y d i d n o t 
d i s c o v e r t h e l e t t e r 
b e f o r e t h e e n t r y o f t h e M a r c h 20, 2008, 
j u d g m e n t . 
They 
a l s o 
a r g u e , 
w i t h o u t 
c i t a t i o n t o a u t h o r i t y , 
t h a t 
t h e 
t r i a l 
c o u r t 
was 
" o b l i g a t e d " t o c o n s i d e r 
i t w i t h 
r e s p e c t t o t h e i r m o t i o n f o r a summary j u d g m e n t . 
(Bon H a r b o r 
and H i n d s ' s b r i e f , a t 49.) 
U n i t e d Bank a r g u e s 
t h a t t h e t r i a l 
c o u r t d i d n o t e x c e e d 
i t s 
d i s c r e t i o n i n d e c i d i n g n o t t o c o n s i d e r 
t h e J a n u a r y 24, 
2007, 
l e t t e r . 
U n i t e d Bank c o n t e n d s t h a t t h e l e t t e r does n o t 
add any m a t e r i a l f a c t s t h a t were n o t a l r e a d y b e f o r e t h e 
t r i a l 
c o u r t i n c o n s i d e r i n g U n i t e d B a n k ' s m o t i o n a n d t h a t Bon H a r b o r 
and H i n d s d i d 
n o t r a i s e any new a r g u m e n t s b a s e d on t h e l e t t e r . 
As n o t e d a b o v e , Bon H a r b o r h a s c o n c e d e d 
l i a b i l i t y 
r e g a r d i n g 
28 
1090302 
i t s i n d e b t e d n e s s t o U n i t e d Bank, a n d H i n d s ' s g u a r a n t y 
a p p l i e s 
t o b o t h t h e e x p r e s s and i m p l i e d i n d e b t e d n e s s o f Bon 
H a r b o r . 
As a r e s u l t , e v i d e n c e r e g a r d i n g Bon H a r b o r ' s 
l i a b i l i t y on t h e 
p r o m i s s o r y n o t e s i s i m m a t e r i a l . 
A d d i t i o n a l l y , 
b a s e d on t h e a f f i d a v i t f r o m i t s c o u n s e l ' s 
p a r a l e g a l , U n i t e d Bank a r g u e s 
t h a t Bon H a r b o r a n d H i n d s h a d 
t h e 
l e t t e r i n t h e i r p o s s e s s i o n b e f o r e t h e y r e s p o n d e d t o U n i t e d 
B a n k ' s m o t i o n a n d b e f o r e t h e t r i a l 
c o u r t e n t e r e d t h e summary 
j u d g m e n t on M a r c h 20, 2008. 
A c c o r d i n g l y , U n i t e d Bank a r g u e s , 
Bon 
H a r b o r a n d H i n d s have n o t p r o f f e r e d any e x p l a n a t i o n 
f o r 
t h e i r 
f a i l u r e t o s u b m i t t h e l e t t e r s o o n e r . 
They c i t e H a i l v .  
R e g e n c y 
T e r r a c e Owners A s s ' n , 
782 So. 2d 1 2 7 1 , 1278 ( A l a . 
1 9 9 9 ) . 
The p a r t i e s 
c o r r e c t l y 
a g r e e t h a t t h e t r i a l 
c o u r t h a d 
d i s c r e t i o n w h e t h e r t o c o n s i d e r t h e J a n u a r y 24, 2007, l e t t e r . 
See Simmons M a c h i n e r y , 
409 So. 2d a t 759 
( " C r e d i t 
A l l i a n c e 
c o r r e c t l y a r g u e s t h a t t h e p a r t i a l summary j u d g m e n t r e n d e r e d b y 
t h e 
t r i a l c o u r t was s u b j e c t t o r e v i s i o n a t any t i m e b e f o r e t h e 
e n t r y 
o f 
j u d g m e n t 
a d j u d i c a t i n g 
a l l t h e 
p a r t i e s ' 
c l a i m s , 
r i g h t s , and l i a b i l i t i e s , 
u n d e r R u l e 5 4 ( b ) , [ A l a . R. C i v . P.] 
A l t h o u g h i t 
i s t r u e t h a t t h e p a r t i a l summary j u d g m e n t i n t h i s 
c a s e 
was 
s u b j e c t t o 
r e v i s i o n 
... 
, 
s u c h 
r e v i s i o n 
was n o t 
29 
1090302 
m a n d a t o r y upon t h e t r i a l 
c o u r t .... 
W h e t h e r a 
t r i a l 
c o u r t 
r e v i s e s a p a r t i a l g r a n t o f summary j u d g m e n t ... i s a m a t t e r o f 
d i s c r e t i o n w h i c h , a b s e n t an a b u s e , we w i l l n o t d i s t u r b . ) . 
I n 
H a i l , 
i n c o n s i d e r i n g 
a 
t r i a l 
c o u r t ' s 
d e c i s i o n 
t o 
s t r i k e 
a f f i d a v i t s s u b m i t t e d i n o p p o s i t i o n t o a p a r t i a l , a n d t h e r e f o r e 
i n t e r l o c u t o r y , summary j u d g m e n t , t h i s C o u r t 
s t a t e d : 
"The 
f a c t o r s a c o u r t i s t o c o n s i d e r on t h e q u e s t i o n 
w h e t h e r t o r e v i s e an i n t e r l o c u t o r y summary j u d g m e n t 
a r e 
a n a l o g o u s 
t o t h o s e 
i t i s t o c o n s i d e r when a 
p a r t y a t t e m p t s t o o f f e r new e v i d e n c e i n s u p p o r t o f 
a m o t i o n u n d e r R u l e 5 9 ( e ) [ , A l a . 
R. C i v . 
P . ] . Thomas  
v. 
S w i n d l e , 
676 So. 2d 333, 335 
( A l a . 
C i v . App. 
1 9 9 6 ) . E v i d e n c e s u b m i t t e d i n an e f f o r t t o r e v i s e an 
i n t e r l o c u t o r y summary j u d g m e n t c a n be c o n s i d e r e d b y 
t h e 
c o u r t 
i f t h e nonmovant c a n 
o f f e r 
a 
p r o p e r 
e x p l a n a t i o n f o r i t s 
f a i l u r e t o s u b m i t t h e e v i d e n c e 
e a r l i e r , 
i n r e s p o n s e 
t o t h e m o t i o n 
f o r summary 
j u d g m e n t . I d . , 
a t 335, c i t i n g Moore v . G l o v e r , 501 
So. 2d [1187,] 
1189 [ ( A l a . 
1 9 8 6 ) ] . " 
782 So. 2d a t 1278. 
B a s e d 
on t h e a f f i d a v i t p r e s e n t e d b y U n i t e d Bank, t h e 
t r i a l c o u r t c o u l d h a v e c o n c l u d e d t h a t t h e l e t t e r was 
a v a i l a b l e 
t o Bon H a r b o r a n d H i n d s b e f o r e t h e y r e s p o n d e d t o U n i t e d B a n k ' s 
m o t i o n 
f o r a summary 
j u d g m e n t a n d b e f o r e t h e 
t r i a l 
c o u r t 
e n t e r e d i t s 
M a r c h 20, 2008, o r d e r . 
T h e r e f o r e , t h e t r i a l c o u r t 
c o u l d have c o n c l u d e d t h a t Bon H a r b o r a n d H i n d s d i d 
n o t " o f f e r 
a p r o p e r e x p l a n a t i o n f o r i t s 
f a i l u r e t o s u b m i t t h e e v i d e n c e 
30 
1090302 
e a r l i e r , 
i n r e s p o n s e 
t o 
t h e 
m o t i o n 
f o r summary 
j u d g m e n t . " 
H a i l , 
782 
So. 
2d 
a t 
1278. 
A c c o r d i n g l y , 
t h e 
t r i a l 
c o u r t 
d i d 
n o t 
e x c e e d 
i t s d i s c r e t i o n 
i n d e c i d i n g 
n o t 
t o 
c o n s i d e r 
Bon 
H a r b o r 
and 
H i n d s ' s m o t i o n s b a s e d 
on 
t h e 
J a n u a r y 
24, 
2007, 
l e t t e r . 
I I I . 
H i n d s ' s 
A f f i d a v i t s 
Bon 
H a r b o r and H i n d s a r g u e t h a t t h e 
t r i a l 
c o u r t e r r e d i n 
s t r i k i n g 
H i n d s ' s 
a f f i d a v i t s 
s u b m i t t e d 
i n 
s u p p o r t 
o f 
t h e i r 
m o t i o n t o v a c a t e , m o t i o n s f o r a summary j u d g m e n t , and 
r e s p o n s e 
t o 
U n i t e d Bank and 
t h e 
t h i r d - p a r t y d e f e n d a n t s ' 
m o t i o n f o r a 
summary j u d g m e n t . 
However, Bon 
H a r b o r and H i n d s do n o t 
c i t e 
any 
a u t h o r i t y t o s u p p o r t 
t h e i r a r g u m e n t s on 
t h i s i s s u e . 
T h i s 
C o u r t has 
s t a t e d : 
" R u l e 2 8 ( a ) ( 1 0 ) , A l a . R. App. 
P., 
r e q u i r e s 
t h a t 
a r g u m e n t s i n an a p p e l l a n t ' s b r i e f c o n t a i n 
' c i t a t i o n s 
t o t h e c a s e s , 
s t a t u t e s , o t h e r a u t h o r i t i e s , and 
p a r t s 
o f 
t h e 
r e c o r d 
r e l i e d 
on.' 
F u r t h e r , 
' i t i s 
w e l l 
s e t t l e d 
t h a t 
a 
f a i l u r e 
t o 
c o m p l y 
w i t h 
t h e 
r e q u i r e m e n t s o f R u l e 2 8 ( a ) ( 1 0 ) r e q u i r i n g c i t a t i o n o f 
a u t h o r i t y 
i n 
s u p p o r t 
o f 
t h e 
a r g u m e n t s 
p r e s e n t e d 
p r o v i d e s 
t h i s 
C o u r t 
w i t h 
a b a s i s 
f o r 
d i s r e g a r d i n g 
t h o s e a r g u m e n t s . ' S t a t e Farm Mut. 
A u t o . I n s . Co. 
v. 
 
M o t l e y , 
909 
So. 
2d 
806, 
822 
( A l a . 2005) 
( c i t i n g 
Ex  
p a r t e 
S h o w e r s , 
812 
So. 
2d 
277 , 
281 
( A l a . 2001 ) ) . 
T h i s i s s o , b e c a u s e 
' " i t i s n o t t h e f u n c t i o n o f 
t h i s  
C o u r t t o do a p a r t y ' s 
l e g a l 
r e s e a r c h 
o r t o make 
and 
 
a d d r e s s 
l e g a l 
a r g u m e n t s 
f o r 
a 
p a r t y 
b a s e d 
on 
 
u n d e l i n e a t e d 
g e n e r a l 
p r o p o s i t i o n s n o t 
s u p p o r t e d 
by 
 
s u f f i c i e n t 
a u t h o r i t y o r a r g u m e n t . " ' B u t l e r v. Town 
31 
1090302 
o f A r g o , 871 
So. 
2d 1, 20 
( A l a . 2003) 
( q u o t i n g Dykes  
v. Lane 
T r u c k i n g , 
I n c . , 
652 
So. 
2d 
248 , 251 
( A l a . 
19 9 
4 ) ) . " 
Jimmy Day 
P l u m b i n g & H e a t i n g , 
I n c . v. S m i t h , 
964 
So. 
2d 
1, 
9 
( A l a . 2007) 
( e m p h a s i s a d d e d ) . 
B e c a u s e Bon 
H a r b o r and 
H i n d s 
h a v e 
n o t 
c o m p l i e d 
w i t h 
t h e 
r e q u i r e m e n t s 
o f R u l e 
2 8 ( a ) ( 1 0 ) , 
A l a . 
R. 
C i v . 
P., 
we 
w i l l 
n o t 
c o n s i d e r 
t h e i r a r g u m e n t s as 
t o 
t h i s 
i s s u e . 
I V . 
The 
C o u n t e r c l a i m s 
and 
T h i r d - P a r t y 
C l a i m s 
Bon 
H a r b o r and H i n d s a r g u e t h a t t h e 
t r i a l 
c o u r t e r r e d i n 
e n t e r i n g 
a summary j u d g m e n t 
f o r U n i t e d 
Bank and 
t h e 
t h i r d -
p a r t y d e f e n d a n t s on t h e i r c l a i m s o f b r e a c h o f d u t y , f r a u d , 
and 
s u p p r e s s i o n , 
and f o r a d e c l a r a t o r y j u d g m e n t b e c a u s e , t h e y 
s a y , 
g e n u i n e 
i s s u e s 
o f m a t e r i a l 
f a c t 
e x i s t e d as 
t o t h o s e 
c l a i m s . 
I n t h e i r p r i n c i p a l b r i e f on a p p e a l , 
Bon H a r b o r and H i n d s a r g u e 
g e n e r a l l y 
and 
do 
n o t 
s p e c i f y a r g u m e n t s 
r e l a t i n g 
t o e a c h 
o f 
t h e i r 
f o u r c l a i m s . 
They do 
n o t 
c i t e t o any 
a u t h o r i t y e x c e p t 
f o r 
t h e 
p r o p o s i t i o n 
t h a t 
" [ o ] n c e 
a 
f r a u d 
has 
b e e n 
a c c o m p l i s h e d , s u b s e q u e n t a c t i o n s c a n n o t c o m p l e t e l y 
e r a s e 
t h e 
i n j u r y 
done 
t o 
t h e 
p e r s o n 
a g a i n s t 
whom 
t h e 
f r a u d 
was 
c o m m i t t e d . " 
B o s w e l l 
v. 
L i b e r t y N a t ' l L i f e 
I n s . Co., 
643 
So. 
2d 
580, 
584 
( A l a . 1 9 9 4 ) . 
A l s o 
c i t i n g S p o o n e r v. 
S t a t e 
Farm 
32 
1090302 
Mut. A u t o . I n s . 
Co., 709 So. 2d 1157 ( A l a . 1 9 9 7 ) ; S o u t u l l o v .  
Commonwealth L a n d T i t l e I n s . Co., 646 So. 2d 1352 ( A l a . 1 9 9 4 ) ; 
and O l d S o u t h e r n 
L i f e I n s . 
Co. v. W o o d a l l , 348 So. 2d 1377 
( A l a . 1 9 7 7 ) , Bon H a r b o r a n d H i n d s a r g u e o n l y t h a t t h e i r 
c l a i m s 
a r e " a n a l o g o u s " t o t h e s i t u a t i o n s p r e s e n t e d i n t h e s e c a s e s ; 
t h a t a " s u b s t a n t i a l w r o n g o c c u r r e d on J u l y 8, 2 0 0 5 , " a n d t h a t 
U n i t e d Bank c a n n o t undo 
i t ; a n d t h a t t h e " f a c t s 
r e l a t i n g t o 
t h e f r a u d u l e n t 
f a i l u r e t o make t h e l o a n on J u l y 8 t h " 
must be 
t a k e n 
as 
t r u e . 
Bon 
H a r b o r 
a n d H i n d s 
do n o t s t a t e 
any 
a r g u m e n t s 
r e g a r d i n g how t h e a u t h o r i t y 
t h e y 
c i t e 
r e l a t e s t o 
t h e i r 
c l a i m s o f b r e a c h o f d u t y , f r a u d , a n d s u p p r e s s i o n , a n d 
f o r 
a 
d e c l a r a t o r y 
j u d g m e n t . 
N o r do 
t h e y 
show how t h e 
a u t h o r i t y r e l a t e s t o a f i n d i n g t h a t g e n u i n e i s s u e s o f m a t e r i a l 
f a c t 
e x i s t as t o t h e e l e m e n t s o f t h o s e 
c l a i m s . 
As 
s t a t e d 
a b o v e , 
" ' " i t i s 
n o t t h e f u n c t i o n o f t h i s C o u r t t o do a p a r t y ' s 
l e g a l 
r e s e a r c h o r t o make a n d a d d r e s s 
l e g a l a r g u m e n t s 
f o r 
a 
p a r t y b a s e d on u n d e l i n e a t e d g e n e r a l p r o p o s i t i o n s n o t s u p p o r t e d 
by 
s u f f i c i e n t 
a u t h o r i t y o r a r g u m e n t . " ' " 
Jimmy Day P l u m b i n g , 
964 So. 2d a t 9. 
Bon H a r b o r a n d H i n d s have n o t c o m p l i e d w i t h 
t h e 
r e q u i r e m e n t s o f R u l e 
2 8 ( a ) ( 1 0 ) , A l a . 
R. App. P., 
w i t h 
r e s p e c t t o t h i s a r g u m e n t . 
A c c o r d i n g l y , Bon H a r b o r a n d H i n d s 
33 
1090302 
h a v e 
n o t 
shown 
t h a t 
t h e 
t r i a l 
c o u r t 
e r r e d 
i n 
e n t e r i n g 
a 
summary 
j u d g m e n t 
f o r 
U n i t e d 
Bank 
and 
t h e 
t h i r d - p a r t y 
d e f e n d a n t s on 
t h e i r c o u n t e r c l a i m s 
and 
t h i r d - p a r t y c l a i m s . 
C o n c l u s i o n 
B a s e d 
on 
t h e 
f o r e g o i n g , 
we 
a f f i r m 
t h e 
t r i a l 
c o u r t ' s 
j u d g m e n t i n f a v o r o f U n i t e d Bank, B a n k s , M e i g s , and L i p h a m 
and 
a g a i n s t Bon 
H a r b o r and 
H i n d s . 
AFFIRMED. 
Cobb, C . J . , 
and 
W o o d a l l , 
S t u a r t , S m i t h , 
B o l i n , 
P a r k e r , 
M u r d o c k , and Shaw, J J . , c o n c u r . 
34