The Tennessee Supreme Court today issued guidance on the steps courts should follow when a creditor sells collateral used to obtain a loan, but does not provide the required notice of the sale. The case involved a bank loan that was used to purchase an airplane, with the plane itself and additional guarantors securing the transaction. When the debtor failed to maintain insurance, the bank, Regions Bank, placed the loan in default, and the resulting accelerated payments were not made. The bank filed suit against the guarantors. While that action was pending, Regions also repossessed the plane and spent money to make it flightworthy and marketable. Regions then ultimately sold the plane at a private sale for less than the amount owed to Regions. The Court concluded that resolution of this issue was a fact question for the trier of fact, in this case the trial court, to decide. The court expressly rejected the Court of Appeals’ evidentiary requirement regarding proof negating a debtor’s or guarantor’s ability or motivation to redeem or purchase the collateral. The court then spelled out the proper procedures for a trial court to utilize to resolve this issue.

The Tennessee Supreme Court has recently granted review in eight cases, including civil cases that involve wrongful death plaintiffs, health care liability pre-suit notices, and accrual of civil actions. Criminal cases include sex offender probation, error coram nobis, warrantless searches, retroactivity of constitutional challenges, and creation of child pornography. The Raybin Supreme Court Hot List reviews the cases and offers predictions.

The Tennessee Supreme Court ruled today that courts must consider all nine statutory factors, as well as any other relevant facts, when deciding whether terminating parental rights is in a child’s best interests. The Supreme Court explained that requiring courts to consider all relevant facts and circumstances ensures each case receives individualized consideration before fundamental parental rights are terminated. Justice Cornelia A. Clark authored the unanimous opinion.