ESSIE JAMES AND WILLIAM JAMES v. PETRA FINANCE, LLC, ET AL. - Articles

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ESSIE JAMES AND WILLIAM JAMES v. PETRA FINANCE, LLC, ET AL.

Posted by: Azya Thornton on Apr 28, 2026

Court: TN Court of Appeals

Attorneys 1: Webb A. Brewer, Memphis, Tennessee, for the appellant, William Z. James.

Attorneys 2: Bret J. Chaness and Patricia Whitehead, Peachtree Corners, Georgia, for the appellees, Petra Finance, LLC, and Clear Springs Loan Services, Inc.

Judge(s): MCGEE

This case involves a petition for rescission of a mortgage loan based on fraud in the inducement. The trial court granted summary judgment to the defendants on two separate grounds. The first basis for the trial court’s grant of summary judgment was that the plaintiff sought rescission of the loan transaction but admitted that he could not repay the amount he received in the transaction and also admitted that he could not restore the status quo if the note and deed of trust were rescinded. Because the plaintiff was unable to place the parties in their prior status, the trial court found that he was not entitled to rescission. Next, the trial court found that the plaintiff failed to identify any misrepresentation made by the original lender and only alleged misrepresentation by the mortgage broker, who was not a party to this lawsuit. The trial court found that the plaintiff failed to present any evidence or legal theory showing that the mortgage broker was acting as an agent of the original lender, so his statements were not attributable to the defendants. The plaintiff appeals. We affirm.

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