Rivers v. Lynch
Rivers v. Lynch
Opinion of the Court
Appellee Lynch owned a garage and body shop. Eager to become involved in another line of work, he discussed with Jack Wilkins
During the time the three men were associated the only loan closed was for the refinancing of Lynch’s home. Wilkins spent most of his time attempting to obtain financing to purchase 175 acres of land in Nashville, Tennessee on which he hoped to develop a “music theme park.” Wilkins ultimately located a bank in the West Indies which agreed to provide $2.6 million in financing for the purchase and development of this land on condition that Wilkins provide $50,000 as a commitment fee. It is undisputed that Wilkins falsified a financial statement in order to procure approval for this financing.
The financing arrangement with the West Indies bank ultimately collapsed due to the failure to pay the remaining amount of the commitment fee. Wilkins’ testimony is that his demand on the bank for return of the $26,000 was refused. Lynch testified that after learning that the financing had fallen through, Rivers advised him to consult an attorney to determine if Lynch could recover the $26,000 from
At trial Lynch testified that Rivers made no representations to him to induce Lynch to execute the promissory note or put his garage up as collateral for the loan.
The jury initially returned a verdict in favor of Lynch and against Wilkins in the amount of $26,000. The jury also found “for [Lynch] a stay of foreclosure until the amount is received by [Lynch].” The trial court instructed the jury that it could not condition the stay of foreclosure in the suit against Rivers on satisfaction of the judgment against Wilkins. Lynch then announced that he was not seeking a money judgment, but only a judgment cancelling the note and deed to secure debt. The jury resumed deliberations and returned with a verdict which stated, “We, the jury, find against both defendants and hereby void the note, the deed to secure debt and permanently enjoin the foreclosure by defendant Michael L. Rivers.”
The trial court made the jury verdict the judgment of the court. Rivers appeals from the trial court’s denial of his motions for directed verdict and judgment notwithstanding the verdict.
We have carefully scrutinized the record in this case and have found no evidence to support the jury’s verdict that appellant Rivers committed any acts of fraud upon Lynch. Therefore, the trial court erred in denying Rivers’ motion for judgment notwithstanding the verdict. OCGA § 9-11-50.
Judgment reversed.
Wilkins has not filed an appeal in this case.
Lynch testified Wilkins told him that the net worth Wilkins showed on the financial statement was “on paper” and would not come into Wilkins’ possession until he reached the age of 40.
Lynch’s position is that the “loan” was actually made to Wilkins, and not to Lynch.
Reference
- Full Case Name
- RIVERS v. LYNCH
- Cited By
- 1 case
- Status
- Published