Castleton Capital Company, LLC. v. Lucius E. Burch, III

The Plaintiff filed suit seeking to recover a deficiency on a loan executed by the Defendant and another left owing after foreclosure upon real estate. The Defendant had purchased a parcel of real estate from a company in which he was a director, and had assumed responsibility for repayment of a loan secured by that real estate. The Defendant denied liability, and alleged mutual mistake and negligent misrepresentation surrounding the loan against the lender because the loan documents he signed contained language regarding cross-collateralization involving a separate parcel of real estate formerly owned by the company in which the Defendant was a director, which real estate was sold two days prior to assumption of the loan obligations by the Defendant. Following a bench trial, the Chancellor granted judgment for the Plaintiff for $134,127.65 and attorneys' fees totaling $73,417.37, for a total judgment of $207,545.02. The Defendant appealed. We affirm.