Opinion ID: 1695245
Heading Depth: 1
Heading Rank: 2

Heading: The Vidrine Matter

Text: On November 12, 1991, a Formal Complaint against Gex regarding the Vidrine matter was filed before a Complaint Tribunal by the Mississippi Bar. The complaint concerned a real estate transaction between Gex and Vidrine. On February 10, 1986, Gex sold a parcel of real estate to Jacqueline A. Vidrine for $30,000. Gex received $10,000 in cash and the remaining balance of $20,000 was secured by a Promissory Note and Deed of Trust. Vidrine paid monthly installment payments on the balance of the note to the Hancock Bank in Bay St. Louis, Mississippi as agreed and stated in the Promissory Note. On March 5, 1986, Gex received a loan of $16,002 from the Hancock Bank which was not related to the Vidrine Promissory Note, Deed of Trust and Warranty Deed. Gex executed a Collateral Note in return for the $16,002 loan. He then assigned all of his right, title and interest in the Promissory Note executed by Vidrine to the Hancock Bank as collateral for the $16,002 loan. In May 1987, Vidrine requested that her attorney, Julien K. Byrne, III (Byrne) contact Gex and determine the payoff necessary to satisfy the Promissory Note. Gex mailed a letter to Byrne's secretary, Glenda Downs, stating he would accept $18,000 in satisfaction of Vidrine's promissory note. Vidrine issued and delivered two checks to Byrne totaling $18,000 in accordance with Gex's letter. Vidrine did not know that Gex assigned his right, title and interest in the Promissory Note to Hancock Bank. After receiving two personal checks totalling $18,000 from Vidrine, in satisfaction of the Promissory Note, Gex executed an Authority to Cancel the Deed of Trust executed by Vidrine. He did not inform Vidrine or Byrne that he had previously assigned all of his right, title and interest in the Deed of Trust to Hancock Bank. Nor did he notify the Hancock Bank that he accepted the $18,000 in satisfaction of the Deed of Trust and Promissory Note executed by Vidrine. Gex did not use the money to satisfy the remaining balance of the $16,002 loan. Instead, Gex used the money to pay income taxes and other personal expenses. Gex received three extensions between March 30, 1988 and May 21, 1990 to pay the $16,002 loan balance. The Promissory Note executed by Vidrine was listed as security for the original note of $16,002 on each extension. Gex never notified the bank that he accepted an early retirement of Vidrine's note in seeking the extensions. Jerry D. Heitzmann, Branch Manager of the Hancock Bank, testified that in November 1990 he obtained Vidrine's address from Gex in an effort to collect on the note. Gex never said anything to Heitzmann about the payoff or cancellation of the note and deed of trust. Heitzmann discovered that Vidrine had paid the balance on the note. The Bank filed suit against Gex for his outstanding indebtedness and obtained a judgment which remained unsatisfied at the time of the Tribunal's Opinion and Judgment. The bank viewed Vidrine as an innocent victim and did not foreclose on the property. In addition, Vidrine does not have a clear or marketable title to the land. Gex admitted he received two checks from Vidrine and deposited them into his personal account to pay his expenses, rather than depositing the money into a trust account. He admitted the bank had an interest in the funds Vidrine paid him. When asked ... [I]sn't it true that you are making a representation to Mrs. Vidrine, through her counsel, by executing and tendering this authority to cancel, (the deed of trust) that you had such authority; isn't that correct, Gex replied, I would think that would be true, yes, sir. Jeannette Purchner, loan officer at Hancock Bank, testified that she had known Gex for many years and knew he was prone to procrastinate. Gex did not tell her he received money from Vidrine, did not ask the bank for permission to cancel the Deed of Trust and did not inform the bank the deed had been cancelled when he received the loan extensions. Janet Power, Purchner's successor, testified that upon Purchner's retirement, she received the Gex file. She discussed with Gex having Vidrine make direct payments to the bank since Gex was late with payments. Power stated that when the third extension was granted, Gex failed to mention that the note had been paid and the deed cancelled. Had she known Vidrine's note was already satisfied, it could not have served as collateral on Gex's loan which she would not have extended.