Rafia N. Khan, Individually, And In Her Capacity As Trustee Of The Rafia N. Khan Irrevocable Trust v. Regions Bank

This appeal arises from a disputed arbitration award. Rafia N. Khan (“Mrs. Khan”), individually, and as Trustee of the Rafia N. Khan Irrevocable Trust (“the Trust”) sued Regions Bank (“the Bank”) in the Chancery Court for Knox County (“the Trial Court”) alleging that the Bank had committed unfair acts under the Tennessee Consumer Protection Act (“the TCPA”) by refusing to release a lien on property owned by the Trust and pledged to secure the Khans’ line of credit with the Bank. Mrs. Khan’s husband previously had withdrawn $40,000 on the joint line of credit, a move Mrs. Khan opposed. Per the loan documents, the parties by an agreed order entered into arbitration. The arbitrator Robert P. Murrian (“the Arbitrator”), in a lengthy and detailed final award, found that the Bank was not liable for any unfair acts under the TCPA, that Mrs. Khan was not personally liable for the $40,000 loan made by the Bank to Mr. Khan, and that Mrs. Khan was not entitled to an order in the arbitration requiring the Bank to release the lien on the property. The Trial Court vacated the arbitration award. The Bank appeals. We hold, inter alia, that the Arbitrator rendered a sound, well-reasoned decision and award, and the Trial Court erred in vacating the award. We reverse the Trial Court.