# FILED November 1, 1995 Cecil Crowson, Jr. App ellate C ou rt Clerk I N TH E C O U R T O FA PPEA LSO FTEN N ESSEE EA STER N SEC TI O N

J ER R Y CO LLI N S , d/ b/ a W

ESTSI D E ) C / A N O . 03A 01- 9507- C

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- 00216 EQUI PM ENTCOM

PANY, I NC. , ) ) GR EENEC HANC ER Y Pl a i ntif f

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pp e lla nt , )

) HON. DENNI SH. I NM AN, v. ) J UDGE ) GR EENECOUNTY BANK, ) AFFI R M ED I N PAR

T, ) VAC ATED I N PAR

T, D e f e nd a nt - A

pp e l l ee. ) AND R EM ANDED

J . RO N N I EG R EER , G r e e ne ville , for Pl a i ntif f

- A pp e lla nt . KENNETH C

LAR K HOOD, R

OGER S , LAUGHLI N, NUNNALLY, HOOD & C R UM , G r eene vi l l e , f or D e f e nd a nt - A

pp e l l ee.

O PI N I O N

Fr a nks . J .

I n t hi s di s put e be t w e e n pl a i nt i f f bor r ow e r a nd de f e nda nt l e nde r , t he Tr i a l C our t e nt e r e d s um

m a r y j udgm

e nt f or t he de f e nda nt a nd pl a i nt i f f ha s a ppe a l e d.

Pl a i ntif f C

o llin s b e g a nop e r a tingW e s t Si de Tr a c t or C om pa ny, I nc . ( W

ST) f or i t s ow

ne r , K e nne t h M

a l one i n 1986. Pl a i nt i f f a nd M

a l one a gr e e d t ha t Pl a i nt i f f w oul d be c om

e t he ow ne r of W

STi n e xc ha nge f or pa yi ng t he c om pa ny' s de bt s .2

Pl a i nt i f f s i m

ul t a ne ous l y ow

ne d a nd r a n W

e s t Si de Equi pm

e nt C om pa ny ( W

SE) , a us e d e qui pm e nt t r a di ng bus i ne s s . The bus i ne s s a r r a nge m e nt be t w

e e n Pl a i nt i f f a nd M a l one c ont i nue d unt i l 1992, w

he n W STbe c a m

e de l i nque nt w

i t h i t s de a l e r s a nd s uppl i e r s a nd c l os e d.

I n 1990, Pl a i nt i f f pl e dge d hi s hom e a nd f a r m

a s c ol l a t e r a l f or a $125, 000 l oa n f or W STf r om

de f e nda nt G

r e e ne C ount y Ba nk. U

l t i m a t e l y, de f e nda nt f or e c l os e d on t he pr ope r t y a nd pl a i nt i f f ' s e f f or t s t o pr e ve nt t he f or e c l os ur e t hr ough l i t i g a t i o nf a i l e d .

Pl a i ntif f the nf ile dthi s a c tiona lle g i ngth a t i l l e ga l hol ds ha d be e n pl a c e d on hi s c he c ki ng a c c ount , t ha t or a l r e pr e s e nt a t i o n s r e g a r di n gt he cr o s s - c o l l a t e r a l i zat i o n c l a us e i n t he de e d of t r us t c ons t i t ut e d f r a udul e nt i nduc e m e nt t o e nt e r a c ont r a c t , a nd t ha t s t a t e m e nt s by ba nk of f i c i a l s c ons t i t ut e d t or t i ous i nt e r f e r e nc e w i t h t he bus i ne s s r e l a t i ons hi p be t w e e n pl a i nt i f f a nd M a l one . The Tr i a l C

our t gr a nt e d s um

m a r y j udgm

e nt on a l l i s s ue s . A

f t e r gi vi ng A

ppe l l a nt a n a ddi t i ona l t w o w e e ks t o f i l e not i c e s of hol ds t ha t ha d be e n pl a c e d on hi s a c c ount , t he C our t f ound t ha t none of t he hol ds pr oduc e d w e r e w i t hi n t he r e gul a t i on' s one ye a r l i m i t a t i ons pe r i od. The C our t a l s o c o nc l u de dt h a t r e s j u di cat a andco l l a t e r a l es t opp e l b a r r e dt he c l a i m of f r a udul e nt i nduc e m e nt t o e nt e r a c ont r a c t . Fur t he r , t he c our t de t e r m

i ne d t ha t t he bus i ne s s r e l a t i ons hi p a l l e ge dl y i nt e r f e r e d w

i t h w a s pr os pe c t i ve i n na t ur e a nd t hi s j ur i s di c t i on doe s not r e c ogni z e a c a us e of a c t i on f or pr o s p ect i v e i nt e r f e r e nce.

Pl a i nt i f f c l a i m

s t ha t G

r e e ne C

ount y Ba nk vi ol a t e d 121 12 C. F . R. 229. 21 i s ent i t l e d " A v a i l a b i l i t y of Funds and Co l l e c t i on of Ch e c k s " and gove r n s t h e pr o c e dur e s w h i c h banks m

u s t f o l l o w

i n m a k i n g d e p o s i t s avai l a b l e t o cu s t o m e r s . 3 C. F. R. 2 2 9 1e t . s e q. ( c om m onl y know

n a s R e gul a t i on C

C ) by pl a c i ng i m

pr ope r hol ds on hi s c he c ki ng a c c ount s . The s t a t ut e of l i m i t a t i ons f or R

e gul a t i on C

C pr ovi de s t ha t a c t i ons m us t be br ought " w

i t hi n one ye a r a f t e r t he da t e of t he oc c ur r e nc e of t he vi ol a t i on i nvol ve d. " 12 C. F. R. 229. 21 ( 1992) . A t t he he a r i ng on t he m

ot i on f or s um

m a r y j udgm

e nt a nd a f t e r be i ng gi ve n a n a ddi t i ona l t w o w e e ks , pl a i nt i f f c oul d not pr oduc e a ny hol d not i c e s da t e d w i t hi n one ye a r of t he f i l i ng of t he s ui t . Pl a i nt i f f a r gue s t ha t t he hol ds r e pr e s e nt e d a c ont i nui ng oc c ur r e nc e a nd t he s t a t ut e of l i m i t a t i ons be ga n t o r un, f or a l l vi ol a t i ons , f r om t he da t e of t he l a s t hol d. Thi s a r gum e nt is w

ithout m

e r it. The la s t ho l dn o tic e is d a t e dm or e t ha n one ye a r f r om t he f i l i ng of t he s ui t a nd i s i t s e l f out s i de t he l i m

i t a t i ons pe r i od, a nd w hi l e a " c ont i nui ng vi ol a t i on" t he or y ha s be e n us e d t o pr e ve nt t he s t a t ut e of l i m i t a t i o n s f r o m

b a r r i nge m

p l oy m e nt di s c r i m

i na t i o n , s ee, e. g . , H av e ns Re al t y C

orp. v . C

ol e m an , 455 U

. S . 363, 71 L. Ed. 2d 214, 102 S . C

t . 1114 ( 1982) , t he c a s e s c i t e d by pl a i nt i f f f a i l t o pr ovi de a ny r a t i ona l e f or a ppl i c a t i on of t he t he or y t o t he s e c i r c um s t a nc e s . Pl a i ntif f r e c e i v e dw r itte nn o tic e s inf or m i ng hi m of e a c h a l l e ge d vi ol a t i on. The r e w a s no c onc e a l m

e nt of hi s r i ght s or l a c k of oppor t uni t y t o pur s ue t he s e c l a i m s a s s oon a s t he y a r os e a nd w e f i nd no r e a s on w hy t he s t a t ut e of lim ita tio n s s h oul dn o t b a r thi s c l a i m . Pl a i ntif f a s ke dthe Tr i a l C our t toa lte r or a m e n d t he s um

m a r y j udgm

e nt on t he ba s i s of hi s di s c ove r y of a not i c e2Th e al l e g e d al t e r a t i o n s of t h e b a n k d o c u m e n t ar e ev i d e n ced b y t h e d i f f e r e n t t ype w

r i t e r pr i n t us e d f o r t h e l a s t s e n t e n c e . ( De pos i t i on of D r . A l f ons o Lu c e r o , Ph . D. ) . 4 of a hol d on hi s ba nk a c c ount t ha t ha d oc c ur r e d w i t hi n t he one y e a r s t a t ut e o f lim ita tion s p e r i o d , a n da lle g e da lte r a tion s 2 of a ba nk doc um

e nt . The m

ot i on w

a s de ni e d. W he t he r t o gr a nt a ne w t r i a l ba s e d on ne w l y di s c ove r e d e vi de nc e i s di s c r e t i ona r y w i t h t he t r i a l j udge . Se ay v . C

ity o f K n ox v ille , 654 S . W . 2d 397 ( Te nn. A

pp. 1983) . The m ovi ng pa r t y m

us t de m

ons t r a t e t ha t t he ne w e vi de nc e w

a s not know

n pr i or t o or dur i ng t r i a l a nd t ha t i t c oul d not ha ve b eenas cer t a i ne db yt he exe r c i s e o f r eas o n a b l e di l i g e nce. A l s o t o be c ons i de r e d by t he Tr i a l J udge i s w he t he r a ne w t r i a l ba s e d on s uc h e vi de nc e w oul d c ha nge t he r e s ul t . Leep e r v . C ook , 688 S . W

. 2d 94 ( Te nn. A

pp. 1985) . Pl a i nt i f f f ound t he hol d s l i ps by s e a r c hi ng t hr ough hi s r e c or ds a nd t he ba nk doc um e nt , a l l e ge dl y a l t e r e d, w a s t ur ne d ove r t o pl a i nt i f f dur i ng di s c ove r y. A c c or di ngl y, pl a i nt i f f w

a s i n pos s e s s i on of t he r e c or ds a nd doc um e nt w hi l e t he c a s e w

a s b e i nglitig a t e d . H e w a s g i v e na ddition a l tim e a f t e r t he he a r i ng on t he s um m a r y j udgm

e nt t o t i m

e l y pr oduc e h o l dn o tic e s . W

e a gr e e w

iththe Tr i a l J u dg e th a t p l a i ntif f di d not e xe r c i s e r e a s ona bl e di l i ge nc e i n pr e s e nt i ng t he s e c l a i m s a nd a f f i r m

hi s de ni a l of t he m ot i on t o a l t e r or a m e nd t he j udgm

e nt . N e xt, p l a i ntif f in s i s t s r e s j udi c at aandco l l a t e r a l e s t oppe l s houl d not ba r hi s a c t i on.

A de t e r m

i na t i on of w

he t he r a n a c t i on i s ba r r e d by r e s j udi c at ai s a n a ppr opr i a t e us e of s um m a r y j udgm

e nt . By r d5

v . H a l l , 847 S . W

. 2d 208 ( Te nn. 1993) . Re s j udi c at a b a r s a s econ ds ui t b e t w eent he s a m

e p a r t i e s o nt he s a m e cau s e o f act i o nas t oal l i s s u e s w hi c h w e r e or c oul d ha ve be e n l i t i ga t e d i n t he f or m e r s ui t . Sc al e s v . Sc a l e s , 564 S . W . 2d 667 ( Te nn. A

pp. 1977) . The pa r t y a s s e r t i ng t he de f e ns e m us t de m

ons t r a t e : ( 1) t ha t t he unde r l yi ng j udgm

e nt w a s r e nde r e d by a c our t of c om pe t e nt j ur i s di c t i on; ( 2) t ha t t he s a m e pa r t i e s w

e r e i nvol ve d i n bot h s ui t s , ( 3) t ha t t he s a m e c a us e of a c t i on w a s i nvol ve d i n bot h s ui t s , a nd ( 4) t ha t t he unde r l yi ng j udgm e nt w a s on t he m

e r i t s . Lee v. H

a l l , 790 S . W

. 2d 293, 294 ( Te nn. A pp. 1990) . C ol l a t e r a l e s t oppe l , i n c ont r a s t , ba r s a s e c ond s ui t b e t w eent he s a m

e p a r t i e s o na di f f e r e nt cau s e o f act i o nw he r e t he is s u e s w

e r e a c t u a llylitig a t e da n dde t e r m i ne dinthe f or m e r s ui t . Sc al e s . Pl a i ntif f a r gu e s the ju dg e inc or r e c tly gr a nt e d s um

m a r y j udgm

e nt be c a us e t he t hi r d e l e m e nt of re s j udi c at a, i . e . , t he s a m e cau s e o f act i o n , w a s n o t m

e t . The pr i or l i t i ga t i on s ought t o e nj oi n t he f or e c l os ur e on A

ppe l l a nt ' s f a r m

a nd hom

e . Thos e pr ope r t i e s ha d be e n pl e dge d unde r a 1990 l oa n a gr e e m e nt . A

c r os s - c o l l a t e r a l i zat i o ncl a u s e i nt h a t agr eem e nt s t a t e dt h a t t he c o l l a t e r a l f r o m

t he l o a nw

a s al s ot ob e u s e das s ecur i t yf or ot he r l oa ns out s t a ndi ng t o W SEa nd W

ST, a nd t he de e d of t r us t w a s not t o be r e l e a s e d unt i l t he l oa ns out s t a ndi ng ha d be e n p a i d . Pl a i ntif f c l a i m s th a t he w

a s n o t a w

a r e o f thi s c r o s s - c o l l a t e r a l i zat i o ncl a u s e w he nhe s i g ne dt he do c um e nt . Pl a i nt i f f a r gue s t he pr e vi ous l i t i ga t i on s ought t o pr e ve nt f or e c l os ur e on hi s f a r m be c a us e t he Ba nk ha d i m pa i r e d hi s a bi l i t y t o pa y t hr ough t he w r ongf ul r e pos s e s s i on of hi s6

e qui pm e nt . H

e di s t i ngui s he s t he pr e vi ous c l a i m s f r om hi s pr e s e nt cl a i m

, w hi c hi s ch a r act e r i zedas f r a u du l e nt i n du cem e nt t o e nt e r i nt o t he D e e d of Tr us t c ont a i ni ng c r os s - c o l l a t e r a l i zat i o nl a ngu a g e . H e ar gu e s t h a t t he or a l r e pr e s e nt a t i ons w e r e m a de t o hi m

i ndi c a t i ng t ha t hi s f a r m a nd hom e w oul d be r e l e a s e d upon r e pa ym e nt of t he l oa n. The Tr i a l C

our t de a lingw

iththe pr i or litig a tion a ddr e s s e dt he cr o s s - c o l l a t e r a l i zat i o ncl a u s e dur i n gt he pl a i nt i f f ' s e f f or t t o e nj oi n t he f or e c l os ur e :

N o w the f i r s t m

a tte r - th a t is , th e o f f e r to di s c ha r ge t he not e di r e c t l y s e c ur e d by t he de e d of t r u s t - th a t, o f c our s e , is the c r o s s - c o l l a t e r a l i z a t i o nc l au s e is s u e . I ' v e de a l t w i t hit . The C our t of A

ppe a l s ha s de a l t w i t h i t . I ' m

bound b yi t . Th o s e cl a u s e s ar e v a l i d , andf a i l ur e t or ead t he la n gu a g e , a n dI ' m s ur e M

r . Co llin s is te lling t he t r ut h. H

e di dn' t r e a d t he l a ngua ge . H e di dn' t r eal i ze t he s i g ni f i cance o f i t , b ut t he case ar e lite r a llyle g i o ninthi s s t a t e th a t s a yth a t f a ilur e t o r e a d l a ngua ge t ha t i s t he r e t o r e a d i s not a de f e ns e t o e nf or c e m e nt of t ha t l a ngua ge . The Tr i a l C

our t he l d t hi s c l a i m w a s ba r r e d unde r e i t he r r e s j u di cat a or co l l a t e r a l es t opp e l b ecau s e t he pr i or act i o n ' s s ol e pur pos e [ w a s ] t he e nj oi ni ng of t he f or e c l os ur e by t he ba nk on t he de e d of t r us t . A t t ha t t i m

e , e ve r yt hi ng t ha t c oul d ha ve be e n know n a bout t ha t s i t ua t i on w

a s know

n. The r e w

e r e no be l a t e d r e ve l a t i ons of f a c t . The onl y t hi ng t ha t oc c ur r e d a f t e r t h a t s ui t w a s t he f or ecl o s ur e andi t o ccur r e d b e c a u s e the C

our t r e f u s e dtoe nj o i nit.. . Co llin s ' c l a i m t ha t t he ba nk f r a udul e nt l y i nduc e d hi m t o e nt e r i nt ot h a t cr o s s co l l a t e r a l i zat i o nagr eem e nt or m i s r e pr e s e nt e d f a c t s t o hi m s uc h t ha t he s i gne d i t w i t h a m

i s a ppr e he ns i on of i t s e f f e c t . . . c oul d a nd s houl d ha ve be e n r a i s e d a t t ha t t i m e w i t hi n t he c onf i ne s of t ha t s ui t s i nc e i t di d ha ve a s i t s s ol e pur p o s e . . .th a t f or e c l o s ur e s a l e . . . M r . Co llin s is b a r r e db yc o l l a t e r a l e s t opp e l i ntha t r e g a r d ...." The s t a t ut e gove r ni ng i nj unc t i ons of f or e c l os ur e s r e qui r e s t ha t :7 C ont e nt s of A

ppl i c a t i on f or I nj unc t i on. - - The pa r t y a ppl yi ng f or r e l i e f i n s uc h c a s e s ha l l di s t i nc t l y s t a t e how

, w he n, a nd t o w

hom t he de bt or a ny pa r t of de bt s e c ur e d a f or e s a i d ha s be e n pa i d, or a ny c i r c um s t a nces o f f r a u dw hi c hvi t i a t e the c o nt r a c t " . T. C. A . 29- 23- 202 ( 1980) ( e m pha s i s a dde d) . The e s t oppe l of a j udgm e nt or de c r e e e xt e nds t o a l l m a t t e r s m

a t e r i a l t ot he deci s i o no f t he case w hi c ht he p a r t i e s e xe r c i s i ng r e a s ona bl e di l i ge nc e m i ght ha ve br ought f or w a r d a t t he ti m

e . M c K i nn ey v. W

i dn e r , 746 S . W

. 2d 699 ( Te nn. A

pp. 1987) . A

pl a i nt i f f m

a y not r e s e r ve a t he or y w hi c h s uppor t s hi s a c t i on f or a s e c ond l a w s ui t . I d. Pl a i ntif f ' s c l a i m s e e k s r e lie f o nthe b a s i s o f f r a udul e nt i nduc e m e nt i n e nt e r i ng i nt o t he Tr us t D e e d. By t he t e r m s of t he s t a t ut e , t he i s s ue of f r a ud s houl d ha ve be e n l i t i ga t e d i n t he pr i or pr oc e e di ng. I n t he pr e vi ous pr o ceedi n g , t he i s s u e o f t he cr o s s - c o l l a t e r a l i zat i o ncl a u s e w a s act u a l l yl i t i g a t e dandde t e r m i ne d . The r e ar e none w f act s w hi c h w e r e not know

n or ne w

i s s ue s w

hi c h c oul d not ha ve be e n pr e s e nt e d a t t ha t t i m e . A c c or di ngl y, t he Tr i a l J udge pr ope r l y gr a nt e d s um

m a r y j udgm

e nt on t hi s i s s ue . Fi n a lly , p l a i ntif f c o nt e n d s the Tr i a l J u dg e w a s in e r r or i n gr a nt i ng s um m a r y j udgm

e nt on t he i s s ue of t or t i ous i nt e r f e r e nc e w

i t hp l a i nt i f f ' s b u s i ne s s r e l a t i o n s hi p . Pl a i nt i f f a l l e ge d t ha t t he ba nk, t hr ough i t s a ge nt s a nd e m pl oye e s t or t i ous l y de s t r oye d " t he bus i ne s s r e l a t i ons hi p b e t w e e nJ e r r yC

o l l i ns . . . a n dK e nne t hM

a l one . . ." . The i nt e r f e r e nc e c om

pl a i ne d of oc c ur r e d i n 1991 w he n a ba nk o f f i cer r e f u s e dt om a ke a l o a nt oW

e s t Si de Tr act or and a lle g e dl yto l dM

a l o ne th a t p l a i ntif f w a s s t e a linghi m

b lind a n d" c a r r y i ng[ hi m ] o f f . " Pl a i ntif f te s tif i e dth a t a s a3 Th e el e m e n t s of t h e t o r t o f i n t e r f e r e n ce w i t h b u s i n ess r e l a t i o n s ar e : t h e exi s t e n c e of a va l i d bus i n e s s r e l a t i on ( not nec e s s a r i l y evi d e n c e d by a n enf o r c e a b l e cont r a c t ) or expe c t a n c y ; know l e dge of t h e r e l a t i ons h i p o r ex p ect a n c y o n t h e p a r t o f t h e i n t e r f e r e r ; an i n t e n t i o n a l i n t e r f e r e n c e i nduc i ng or ca u s i ng a br e a c h or t e r m i n a t i on of t h e r e l a t i ons h i p or expe c t a n c y ; and r e s u l t a n t dam a g e t o t h e par t y w hos e r e l a t i ons h i p or expe c t a n c y had be e n di s r upt e d . K an Cons t r u c t i on and Cl e ani ng Co r p . I n c . , v. Ta t u m, 1993 W L434741 ( Te nn. A pp. 1993) , c itin g 45 A m . J u r . 2d I n t erf erence 50 ( 1969) . 4T. C. A. 28- 3 - 104 ( 1980) r e a d s : " Pe r s o n a l t o r t act i o n s . - (a) Ac t i o n s fo r l i b e l , fo r i nj u r i e s t o t h e p e rso n , fal s e i m p r i s o n m

e n t , m a l i c i ous pr o s e c u t i on, cr i m i n a l conve r s a t i on, s e duc t i on, br e a c h of m a r r i a g e p r o m

i se, act i o n s and sui t s agai n s t at t o r n e y s f o r m a l p r act i c e w h e t h e r s u c h ac t i ons ar e gr ounde d or bas e d i n cont r a c t or t o r t , ci v i l a c t i ons f o r com

p e n s a t o r y or puni t i v e dam a g e s , or bot h , br ought under t h e f e d e r a l ci v i l r i g h t s s t a t u t es, an d act i o n s f o r st a t u t o r y p e n a l t i es s h a l l b e com

m e n c e d w

i t h i n one ( 1 ) yea r af t e r ca u s e of ac t i on ac c r u e d . "

8 r e s ult M

a l o ne a n dhi s f a m ilyw ou l dn o t a s s i s t p l a i ntif f in t a ki ng out a l oa n, w oul d not pl e dge a ddi t i ona l c ol l a t e r a l t o a l l ow hi m t o bor r ow

m or e m one y, a nd e ve nt ua l l y e vi c t e d pl a i nt i f f ' s bus i ne s s f r om t he pr ope r t y. The bus i ne s s s ubs e que nt l y f ol de d.

The Tr i a l C

our t c onc l ude d t he di s i nt e gr a t i on of t he bus i ne s s r e l a t i ons hi p w a s pr os pe c t i ve a nd t he r e i s no c a us e of a c t i on i n Te nne s s e e f or t or t i ous i nt e r f e r e nc e w i t h a pr os pe c t i ve bus i ne s s r e l a t i ons hi p.

The r e ar e di s put e di s s u e s o f m a t e r i a l f act as t o w he t he r t he a l l e ge d i nt e r f e r e nc e w a s w i t h a n e xi s t i ng bus i ne s s r e l a t i ons hi p. A

c c or di ngl y, i t i s a ppr opr i a t e t o r e m a nd t hi s cas e f or a de t e r m i n a t i o no f w

he t he r t he el e m

e nt s o f t hi s t or t e xi s t . 3 A

ppe l l e e r e s ponds t ha t i n a ny e ve nt t he a c t i on i s ba r r e d by t he one ye a r s t a t ut e of l i m i t a t i ons §28- 3- 104 4 . The a pp lic a b l e s t a t ut e o f lim ita tion s is de t e r m i ne db ythe a l l e g a t i o n s o f t he com p l a i nt . H

e r e t he d a m

a g e al l e g e di s t he l os s of M

a l one ' s bus i ne s s r e l a t i ons hi p a nd f i na nc i a l ba c ki ng, w hi c hle dtothe c l o s e o f the b u s i ne s s . Pl a i ntif f ' s c l a i m9

de a l s w

i t h bus i ne s s a nd pr ope r t y l os s e s w hi c h a r e gove r ne d by t he t hr e e - ye a r l i m i t a t i on pe r i od of T. C. A . §28- 3- 105, a nd t he l i m i t a t i ons pe r i od f or t he a na l ogous t or t of i nt e r f e r e nc e w i t h a cont r act u a l r e l a t i o n s hi pi s t hr ee y ear s . W e conc l u de t he t hr e e - y e a r s t a t ut e o f li m i t a t i o n s w

ou l da pp l y . Se e C ar r ut he r s Re ady

- M

i x , I nc . v . C

e m e nt M as ons Loc al 520 , 779 F. 2d 320 ( 6t h C i r . 1985) ; G

iffo r dv . C

ity o f G a tlinb u r g, 900 S . W . 2d 293 ( Te nn. A

pp. 1995) . Fi na l l y, de f e nda nt a r gue s pl a i nt i f f ' s c l a i m w oul d be ba r r e d unde r t he doc t r i ne of j us t i f i c a t i on. I t a r gue s i t s a c t i ons w

e r e pr i vi l e ge d a nd j us t i f i e d, a nd i n f a c t i t ha d s uc h dut y unde r a ny of t he s e c i r c um s t a nc e s , i . e . , w

he n a pe r s on s t a nds i n a pos i t i on of r e s pons i bi l i t y t o a not he r , w he n t he i nt e r f e r e nc e i s t o pr ot e c t t he publ i c w e l f a r e , a nd w

he n one ha s a dut y t o pr ot e c t t he w e l f a r e of a not he r . M effo r dv . C

ity of D upont oni a , 49 Te nn. A pp. 349, 354 S . W

. 2d 823 ( 1961) . Es s e ntia lly , D

e f e n d a nt a r gu e s it h a dthe r i ght tote l l M a l o ne o f C

o l l i n s ' act i vi t i e s b ecau s e M a l o ne w

a s a cu s t o m

e r a nd s t oc khol de r i n t he ba nk a nd w a s a gua r a nt or of W SEa nd W

ST not e s . D

e f e nda nt f ur t he r a r gue s s um m a r y j udgm

e nt i s a ppr opr i a t e o nt hi s i s s u e b ecau s e t he al l e g e ds t a t e m e nt s t h a t C ol l i ns w

a s s t e a l i ng M

a l one bl i nd a r e i na dm i s s i bl e he a r s a y a nd a r e not s ubj e c t t o c ons i de r a t i on on a m ot i on f or s um

m a r y j udgm e nt , T. R. C. P. R

ul e 56. 06 a nd t ha t t he r e m a i ni ng a dm i s s i bl e e vi de nc e w oul d be a r out t he e l e m e nt s of j u s t i f i c a t i o n .

W e cann o t agr ee. Fi r s t , M effo r d t eache s t h a t j u s tif i c a tio nis a ppr opr i a t e if :

O ne w ho i s c ha r ge d w

i t h r e s pons i bi l i t y f or t he10 w e l f a r e of a not he r i s pr i vi l e ge d pur pos e l y t o c a us e hi m not t o pe r f or m

a c ont r a c t , or t o e nt e r i nt o or c ont i nue a bus i ne s s r e l a t i on, w i t h a t hi r d pe r s on i f t he a c t or ( a ) doe s not e m pl oy i m

pr ope r m

e a ns a nd ( b) a c t s t opr o t e c t t he w e l f are o f t he ot her. " I d. , c itingR

e s t a t e m

e nt of Tor t s , V

o l. 4 , Se c . 7 7 0 . A dvi s i ng s om

e one t ha t t he i r bus i ne s s a s s oc i a t e i s s t e a l i ng t he m

bl i nd i s a que s t i ona bl e m a nne r of i nf or m

i ng of pr obl e m

s w i t h a l oa n. M

or e ove r , t he e vi de nc e t ha t ba nk o f f i c e r s s a i dC

o llin s w

a s " s t e a ling[ hi m ] b lind " is n o t ne c e s s a r i l y i na dm i s s i bl e . Thos e s t a t e m e nt s c oul d be nonhe a r s a y ope r a t i ve f a c t s w hi c h a r e a dm

i s s i bl e . N

. C ohe n, D

. Pa i ne , S . She pp ear d , T e nn e s s ee Law

o f E v i de n c e , Secon d Edi t i on, 801. 5 ( 1990) . " V e r ba l a c t s " m

a y c a us e l e ga l c ons e que nc e s w

hol l y a pa r t f r om

t he t r ut h or f a l s i t y of t he w or ds . A

n a na l ogy c a n be dr a w n t o a de f a m

a t i on a c t i on, w

he r e t he pl a i nt i f f m

us t pr ove t he de f e nda nt s poke or w r ot e t he de f a m a t or y w

or ds . The pl a i nt i f f ' s pur pos e i s t o e s t a bl i s h t h a t the s t a t e m

e nt w a s m a de , n o t too f f e r it topr o v e the t r ut ho f the m

a t t e r a s s e r t e dinthe s t a t e m e nt. T

e nn e s s ee La w o f E v i de n ce, I d. The r ecor dpr e s e nt s ani s s u e o f m a t e r i a l f act as t o w ha t ve r s i on of e ve nt s oc c ur r e d. Sum m a r y j udgm

e nt on t he i s s u e o f ju s t i f i c a t i o nis n o t appr opr i a t e .

For t he f or e goi ng r e a s ons w e a f f i r m

t he Tr i a l C our t ' s j udgm

e nt i n pa r t a nd va c a t e i n pa r t a nd r e m a nd f or f ur t he r pr oc e e di ngs i n a c c or da nc e w i t h t hi s opi ni on. C o s t s o f app eal ar e as s e s s e do ne - h a l f t oeachp a r t y .11 ________________________ H e r s c he l P. Fr a nk s , J . CONC UR:

___________________________ D on T. M

c M ur r a y, J .

___________________________ C h a r l e s D

. Su s a n o , J r ., J .