The Tennessee Court of Appeals has ruled in favor of Capital Bank in a lawsuit involving Oscar Brock and Frank Cowden III.
Mr. Brock is a current candidate for the District 6 seat on the County School Board. Joe Galloway is seeking re-election.
Capital Bank had filed a complaint seeking a deficiency judgment against Mr. Brock and Mr. Cowden, after they defaulted on a loan and following the sale at foreclosure of the property securing the debt.
The Appeals Court said, "After settlement discussions were unsuccessful, Capital Bank moved for summary judgment. It asserted that no genuine issue of material fact exists and that it is entitled to a judgment as a matter of law. Defendants contested the motion but only as to the amount of the deficiency and the issue of whether Capital Bank is entitled to an award of attorney’s fees. As a defense to the deficiency claim, Defendants stated that the property was sold at foreclosure for an amount “materially less” than its fair market value and that Capital Bank’s knowledge of the alleged less-than-market value sales price amounted to fraud, collusion or misconduct.
"The trial court granted Capital Bank’s motion. It was awarded a judgment of $168,798.98 which amount includes 70,628.85 in attorney’s fees. Defendants appeal. We affirm."