Walters v. Freeman
| Docket Number: | 2003-CA-01211-COA Linked Case(s): 2003-CA-01211-COA |
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| Court of Appeals: |
Opinion Link Opinion Date: 10-19-2004 Opinion Author: Griffis, J. Holding: Affirmed |
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| Additional Case Information: |
Topic: Replevin - Personal property - Foreclosure on real property Judge(s) Concurring: King, C.J., Bridges, P.J., Irving, Myers, Chandler, Barnes and Ishee, JJ. Non Participating Judge(s): Lee, P.J. Nature of the Case: CIVIL - OTHER |
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| Trial Court: |
Date of Trial Judgment: 05-28-2003 Appealed from: Hinds County Chancery Court Judge: Stuart Robinson Disposition: ORIGINAL JUDGMENT WAS AMENDED AND PLAINTIFF WAS AWARDED JUDGMENT AGAINST DEFENDANT IN THE AMOUNT OF $1,600. Case Number: G-2001-184R/1 |
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| Party Name: | Attorney Name: | |||
| Appellant: | Estate of Lavern Walters |
JOEL W. HOWELL |
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| Appellee: | Pat Freeman | WALTER E. WOOD |
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Synopsis provided by:  If you are interested in subscribing to the weekly synopses of all Mississippi Supreme Court and Court of Appeals hand downs please contact Tammy Upton in the MLI Press office. |
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| Topic: | Replevin - Personal property - Foreclosure on real property |
| Summary of the Facts: | Until 1986, Lavern Walters owned and operated Analytical Chemical Laboratories, Inc., a water conditioning business. In 1986, Walters sold the assets of ACL to Pat Freeman. The parties executed a promissory note, which was secured by a deed of trust and a security agreement. In 2000, Freeman defaulted on the promissory note. At that time, the balance owed was approximately $220,000. Walters initiated a foreclosure pursuant to the deed of trust, and the substituted trustee properly advertised the sale of the real property. At the sale, Walters tendered a purchase price of $232,606.99. The sale was memorialized in a substituted trustee’s deed. Thereafter, Walters and Freeman continued to negotiate so that Freeman could retain the business. Freeman’s attorney provided the building key to Walters. When Walters took possession of the premises, the personal property had been removed. Walters commenced this replevin action to recover the personal property, arguing that the personal property was part of what he purchased at the foreclosure sale. The chancellor determined that Walter's payment of $232,606.99 at the foreclosure sale extinguished the debt owed by Freeman and the trustee's right to possession of the equipment, subject to the security agreement. Walters is now deceased, and his estate appeals. |
| Summary of Opinion Analysis: | Walters argues that the chancellor erred because the parties intended the provisions allowing Walters to retake all property upon Freeman’s breach to survive termination of the sale agreement in order for Walters to re-sell the property as an on-going concern. The asset purchase agreement, the promissory note, the deed of trust and the security agreement were structured so that Walters could have foreclosed on both the real and personal property. However, the chancellor correctly recognized that Walters did not foreclose on all of the property available. Instead, the substituted trustee foreclosed only on the real property, subject to the deed of trust. The proceeds received from the sale of the real property were sufficient to pay off the entire debt owed. Therefore, the chancellor correctly determined that the debt owed by Freeman to Walters was satisfied in full by the foreclosure of the real property, pursuant to the deed of trust. |
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