BancorpSouth Bank v. 51 Concrete, LLC, et al.

This is a conversion case. The appellant bank perfected a security interest in collateral for a loan made to its debtor. The debtor subsequently sold the collateral to appellee companies, representing that there were no liens on the collateral. The appellee companies subsequently resold the collateral. Later, the debtor defaulted on the loan, and the appellant bank obtained a default judgment against him. The debtor then filed bankruptcy. The appellant bank filed this lawsuit against the appellee companies for conversion, seeking the proceeds from the sale of the collateral. The trial court awarded judgments against both appellee companies, plus prejudgment interest accruing from the date of the appellant bank's prior default judgment against the debtor. The appellant bank appealed arguing, among other things, that the trial court erred in determining the date from which prejudgment interest began to accrue. The appellee companies contend that the appellant bank should not be awarded prejudgment interest. On appeal, we affirm the trial court's decision to award prejudgment interest but modify the amount of the award.