Opinion ID: 1701589
Heading Depth: 1
Heading Rank: 2

Heading: Did the chancellor err in allowing appellee to collaterally attack a final judgment of the Circuit Court of Alcorn County?

Text: One of the claims (Claim E) alleged by FMBC to be covered by its dragnet clause was a promissory note in the total amount of $12,755 dated February 7, 1975, and executed by B.E. and Frankie Tidwell. This note was secured by a 1974 MGB automobile and a deed of trust on one and one-half acres of land. When the Tidwells defaulted on the note, the bank foreclosed on the property, purchasing the same for $10,347.98. FMBC also sought to replevy the automobile securing the loan. However, no answer was filed by the Tidwells and a default judgment in the amount of $3400 was entered against the Tidwells. FMBC contends the chancellor erred in allowing B.E. Tidwell to testify in a manner which constituted a collateral attack on the judgment and resulted in a ruling by the lower court that the judgment was invalid. In our opinion, the chancellor properly allowed testimony as to the $3400 judgment in an effort to determine (1) if it was an obligation that would be included under the dragnet clause whether it be by default judgment, contract, note or whatever; (2) further, that if it was a contract debt, was any amount still due thereon; and (3) whether the amount due on the loan involved in this transaction ($12,755) was in fact paid by Tidwell or satisfied by virtue of the foreclosure sale of the real estate which secured the note together with the 1974 MGB automobile. Moreover, this further establishes that the unliquidated claims against Tidwell were not ascertainable when the bank attempted to foreclose upon the real estate and pay the amount of the loan ($9,074.58) plus trustee's fees and advertising costs of the trustee's sale. The purchase of the real estate by the bank was sufficient to liquidate the entire loan secured by the one and one-half acres of real estate and the MGB automobile. However, the bank examiner ordered the bank to reduce the amount received at the trustee's sale from $10,347.98 to $1,215.91, being the value of the real estate as determined by the bank examiner, thereby creating a $7,858.67 deficiency on the note which the bank attempted to encompass within the provisions of the dragnet clause. We are unable to say the chancellor was manifestly wrong as to his findings on Claim E or that he erred in allowing testimony concerning the $3400 judgment. The chancellor must be complimented upon his handling of this detailed and complicated trial, requiring many days of trial, and five volumes of exhibits and testimony. His detailed findings of fact upon each separate claim and his interpretation of whether the amount was liquidated or unliquidated and would come within the dragnet clause, have been of great benefit to this Court. After extensive study of the record, the briefs and applicable law, we are unable to say the chancellor was manifestly wrong in any of his findings of fact or conclusion of law. It therefore follows that this cause is affirmed. AFFIRMED. PATTERSON, C.J., SUGG and WALKER, P. JJ., and BROOM, ROY NOBLE LEE, BOWLING, HAWKINS and PRATHER, JJ., concur.