Tim E. Shaw v. FSGBank, N.A.

In 2007, Tim E. Shaw contacted FSGBank, N.A. (FSG) regarding the refinancing of multiple loans. FSG initiated the processing of his request for refinancing; in the meantime, it extended to him a new loan for $60,000 to enable him to purchase another piece of property for investment purposes. The new loan was secured by a trust deed on property he owned at 430 Highland Avenue in Cleveland, Tennessee. In 2010, after an apparent default by Mr. Shaw on the $60,000 loan, FSG sought foreclosure proceedings on the Highland Avenue property and advertised a trustee sale. As a result, Mr. Shaw filed a complaint against FSG in 2010. He alleged a number of claims, specifically (1) breach of an agreement for future loans; (2) breach of contract; (3) conversion; (4) fraud; and (5) misrepresentation. FSG subsequently filed a motion for judgment on the pleadings, contending that Mr. Shaw’s complaint failed to state an actionable claim as there was not in existence a written agreement by FSG to make additional loans. Further, FSG claimed that Mr. Shaw’s misrepresentation claim was barred by the statute of limitations and because it was based upon FSG’s alleged failure to make loans it never agreed to make.