Richard A. Diamond v. Bank of Alabama (Appeal from Jefferson Circuit Court: CV-04-4920). Application Overruled; Opinion Modified

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Rel: 11/20/2009 Rel: 02/19/2010 As m o d i f i e d on d e n i a l of rehearing. Notice: T h i s o p i n i o n i s s u b j e c t t o formal r e v i s i o n b e f o r e p u b l i c a t i o n i n t h e advance s h e e t s o f Southern R e p o r t e r . R e a d e r s a r e r e q u e s t e d t o n o t i f y t h e R e p o r t e r o f D e c i s i o n s , A l a b a m a A p p e l l a t e C o u r t s , 300 D e x t e r A v e n u e , M o n t g o m e r y , A l a b a m a 3 6 1 0 4 - 3 7 4 1 ( ( 3 3 4 ) 2 2 9 ¬ 0 6 4 9 ) , o f a n y t y p o g r a p h i c a l o r o t h e r e r r o r s , i n o r d e r t h a t c o r r e c t i o n s may b e made b e f o r e t h e o p i n i o n i s p r i n t e d i n Southern R e p o r t e r . SUPREME COURT OF ALABAMA OCTOBER TERM, 2009-2010 1051033 R i c h a r d A. Diamond v. Bank o f Alabama 1051034 Bank o f Alabama v. Premier Business C e n t e r s , I n c . , R i c h a r d A. Diamond, and O. W i l l i a m Evans Appeals from J e f f e r s o n C i r c u i t (CV-04-4920) Court 1051033, 1051034 PARKER, Justice. Richard A. Diamond cross-appeals, both Jefferson Circuit note brought disputes BOA credit. trial BOA c h a l l e n g e s as p a r t Business Centers, BOA entitled pursuant the trial against to the l e t t e r a from ("BOA") of the judgment on a i n attorney promissory fees and o t h e r s . holding that BOA made p u r s u a n t the t r i a l court's of i t sjudgment Diamond Diamond must to a letter failure against i n an of t o a w a r d BOA Diamond, Premier I n c . ( " P B C " ) , a n d O. W i l l i a m E v a n s . B e c a u s e 1 t o t h e reimbursement o f payments of credit, i n Diamond's B e c a u s e i n BOA's c r o s s - a p p e a l BOA was e n t i t l e d o f Alabama Diamond court's to the l e t t e r court relief $132,601.67 f o r payments interest was BOA b y BOA the reimburse seeking and Bank C o u r t a w a r d i n g BOA $ 2 0 0 , 0 0 0 and awarding action appeals to interest of credit, we affirm appeal (case t h e judgment o f (case no. 1051033). n o . 1 0 5 1 0 3 4 ) we h o l d that on t h e m o n e y s a d v a n c e d p u r s u a n t remand court to determine the appropriate Background we i t made the case f o r the amount o f i n t e r e s t and P r o c e d u r a l trial d u e BOA. Posture PBC and E v a n s f i l e d a s e p a r a t e a p p e a l a g a i n s t BOA; t h i s C o u r t g r a n t e d PBC a n d E v a n s ' s m o t i o n t o d i s m i s s t h a t a p p e a l on November 2 5 , 2008. See c a s e no. 1 0 5 1 0 7 3 . 1 2 1051033, 1051034 Diamond was a d i r e c t o r o f HQ B i r m i n g h a m , b y w h i c h P B C was f o r m e r l y When the president of name a lease pursuant office April 7, space the sublessees. Evans as rental payments then 2003, HQ t o secure no. lease the standby divided Gateway months, of feet Corporate and s u b l e t t h e other was services executed by I t required a n d HQ credit Inc., square Chase Birmingham. letter HQ B i r m i n g h a m ' s 19,984 and p r o v i d e d nine I n c . , entered Properties, 4 0 0 , One with o f HQ f o r the f i r s t a acquired businesses The became owned 4 5 % o f t h e s t o c k Birmingham, HQ B i r m i n g h a m president to provide On Diamond 2 D e n i s e , o w n e d 5%. i n suite space t o s m a l l payments PBC, agreement w i t h Gateway Alabama i n Birmingham. benefit to t o w h i c h HQ B i r m i n g h a m rentable Center, was changed PBC, a n d E v a n s ' s w i f e , into to k n o w n , a n d E v a n s was i t s p r e s i d e n t . a n d 5 0 % o w n e r o f PBC, E v a n s Effective of was I n c . , t h e name no Birmingham f o r Gateway's o b l i g a t i o n s and t h e r e n t a l when d u e . December 1, 2003, Business Centers, $200,000 standby l e t t e r BOA, I n c . f / k / a HQ of credit on a p p l i c a t i o n by "Premier Birmingham, Inc.," issued a f o r t h e b e n e f i t o f Gateway R e c o r d s o f t h e o f f i c e o f t h e Alabama S e c r e t a r y o f S t a t e i n d i c a t e t h a t t h e name was c h a n g e d on A u g u s t 2 9 , 2 0 0 3 . 2 3 1051033, 1051034 Alabama P r o p e r t i e s , I n c . I n i t s c o m m i t m e n t l e t t e r , BOA D i a m o n d , who w a s n e g o t i a t i n g on behalf a blanket and of also BOA required collateral guaranties provided b y Diamond that i n the form o f and equipment and j o i n t and E v a n s . The the l e t t e r commitment o f c r e d i t was t o be i n a m o u n t o f $ 2 0 0 , 0 0 0 u n t i l A u g u s t 1, 2 0 0 4 , a n d i n t h e a m o u n t $120,000 irrevocable was that the terms of the l e t t e r of c r e d i t l i e n on f u r n i t u r e , f i x t u r e s , personal letter the o f PBC, advised from August letter i n t h e amount part, as 1, 2 0 0 4 , t h r o u g h A u g u s t of c r e d i t a c t u a l l y issued only of $200,000. 1, 2 0 0 5 . b y BOA, I t reads, in however, pertinent follows: "We [BOA] hereby establish our Clean Unconditional Irrevocable Transferable Letter of C r e d i t No. _ _ _ _ _ (the 'Letter of Credit') i n favor of Gateway Alabama Properties, Inc., a California corporation, and i t s successors and permitted assigns ( c o l l e c t i v e l y , the 'Beneficiary') f o r an a g g r e g a t e amount n o t t o e x c e e d t h e amount indicated above [$200,000], expiring at office located at 2340 Woodcrest Place, Suite 200, B i r m i n g h a m , AL 3 5 2 0 9 A T T N : L e s t e r O. H a m i t e r with o u r c l o s e o f b u s i n e s s on A u g u s t 1, 2004 ( t h e ' E x p i r y Date'). "Funds under t h i s L e t t e r of C r e d i t are p a y a b l e i n immediately a v a i l a b l e funds of [BOA] ('Issuer') to Beneficiary upon presentation to [BOA] of B e n e f i c i a r y ' s o r i g i n a l o f t h e L e t t e r o f C r e d i t and a s i g h t d r a f t d r a w n on [ B O A ] , i n t h e f o r m attached as Exhibit 'A' h e r e t o , o r upon p r e s e n t a t i o n to Issuer of B e n e f i c i a r y ' s o r i g i n a l of the L e t t e r of 4 The 1051033, 1051034 Credit and a demand f o r p a y m e n t , n o t t o $200,00.00, stating that: 'Beneficiary demands p a y m e n t o f $ [ a sum n o t t o $200,000.00] under t h i s L e t t e r of C r e d i t . ' exceed hereby exceed "[BOA] s h a l l honor the L e t t e r of C r e d i t against conforming documents without inquiry as to the incumbency or a u t h o r i t y of the p a r t y e x e c u t i n g the s i g h t d r a f t on b e h a l f o f B e n e f i c i a r y , w h e t h e r o r n o t Applicant disputes the incumbency or a u t h o r i t y of the p a r t y e x e c u t i n g t h e s i g h t d r a f t on b e h a l f of Beneficiary. "Multiple hereunder. demands for payment may be made " I t i s a c o n d i t i o n of t h i s L e t t e r of C r e d i t that i t s h a l l be a u t o m a t i c a l l y e x t e n d e d w i t h o u t amendment f o r an a d d i t i o n a l p e r i o d o f one (1) y e a r f r o m t h e p r e s e n t or each f u t u r e E x p i r y Date, u n l e s s , at l e a s t n i n e t y (90) d a y s p r i o r t o s u c h E x p i r y D a t e , we s e n d you a n o t i c e i n w r i t i n g by c e r t i f i e d m a i l , overnight c o u r i e r or hand d e l i v e r y a t the above a d d r e s s , t h a t we e l e c t n o t t o r e n e w t h i s L e t t e r o f C r e d i t f o r s u c h additional period." In association promissory note conditioned on irrevocable with to the l e t t e r BOA agreeing future o f c r e d i t , PBC advances commercial letter of to pay "upon credit Alabama P r o p e r t i e s , I n c . " Other p r o v i s i o n s the payment balance," "beginning of the "interest payment of 01/01/2004," on monthly and the 5 the up to $200,000 presentment issued to of the note outstanding accrued-interest payment executed a of of Gateway require principal payments principal "at 1051033, 1051034 maturity on 0 8 / 0 1 / 2 0 0 4 i f c a l l e d following "ADDITIONAL u p o n . " The n o t e contains the TERMS": " T H I S NOTE I S SECURED BY BLANKET F I X T U R E S AND EQUIPMENT. " T H I S NOTE I S SUPPORTED BY CREDIT DATED 12/01/2003 PROPERTIES, INC. LIEN ON FURNITURE, I R R E V O C A B L E L E T T E R OF TO GATEWAY ALABAMA "THIS NOTE IS FURTHER SUPPORTED BY UNLIMITED PERSONAL GUARANTY AGREEMENTS BY RICHARD A. DIAMOND AND O. W I L L I A M EVANS." (Capitalization Page are in 2 of the note incorporated print original.) contains by v i r t u e of the following I AGREE PAGE TO THE THOSE ON terms on p a g e 2 i s o n e t h a t full. the states remaining unpaid I f I receive advance w i l l advance." "OBLIGATIONS TERMS OF statement i n bold start to earn Another INDEPENDENT" block: NOTE (INCLUDING Among t h e that from the p r i n c i p a l THIS that i n original.) 2)." (Capitalization the p r i n c i p a l each conditions l o c a t e d on p a g e 1 i m m e d i a t e l y a b o v e t h e s i g n a t u r e "SIGNATURES: in additional time "interest accrues to time, u n t i l i n more t h a n one interest only when relevant provision and s t a t e s , paid advance, I receive is titled i n part: "Any extension o f new c r e d i t t o any of u s , o r r e n e w a l o f t h i s n o t e by a l l o r l e s s t h a n a l l o f us w i l l n o t r e l e a s e me f r o m my d u t y t o p a y i t . (Of 6 on 1051033, 1051034 c o u r s e , y o u a r e e n t i t l e d t o o n l y one p a y m e n t i n f u l l . ) I a g r e e t h a t y o u may a t y o u r o p t i o n e x t e n d t h i s note or the debt r e p r e s e n t e d by t h i s n o t e , or any p o r t i o n o f t h e n o t e o r d e b t , f r o m t i m e t o t i m e w i t h o u t l i m i t o r n o t i c e and f o r any t e r m w i t h o u t a f f e c t i n g my l i a b i l i t y f o r p a y m e n t o f t h e n o t e . " The note R i c h a r d A. was signed identifies includes "Premier t h e n p r e s i d e n t o f PBC, agreement only each PBC borrower s u c c e s s o r s and of also on behalf as the borrower, above, jointly l e n d e r i s i d e n t i f i e d as BOA, its Business Centers, Inc., Diamond, P r e s i d e n t . " Diamond, as of-credit by stating a s s i g n s . " The PBC. that executed a That agreement stating that " ' I ' and severally." The " ' Y o u ' means l e n d e r , agreement p r o v i d e s : "You [BOA] have e x t e n d e d t o me [PBC] a l i n e of c r e d i t i n t h e AMOUNT o f TWO HUNDRED THOUSAND AND 0 0 / 1 0 0 ' S $ 2 0 0 , 0 0 . 0 0 . Y o u w i l l make l o a n s t o me f r o m t i m e t o t i m e u n t i l ... 0 8 / 0 1 / 2 0 0 4 . A l t h o u g h t h e l i n e of credit e x p i r e s on that date, I will remain o b l i g a t e d t o p e r f o r m my d u t i e s u n d e r t h i s a g r e e m e n t s o l o n g a s I owe money a d v a n c e d a c c o r d i n g to the t e r m s o f t h i s a g r e e m e n t , as e v i d e n c e d b y a n y n o t e o r notes I have signed promising to repay these amounts. "AMOUNT: T h i s l i n e o f c r e d i t i s O B L I G A T O R Y : Y o u may n o t r e f u s e t o make a l o a n t o me u n d e r t h i s l i n e o f c r e d i t u n l e s s one o f t h e f o l l o w i n g o c c u r s : ... e. UPON PRESENTMENT OF I R R E V O C A B L E COMMERCIAL L E T T E R OF C R E D I T I S S U E D TO GATEWAY ALABAMA P R O P E R T I E S , INC. 7 line- 1051033, 1051034 "PROMISSORY NOTE: I w i l l repay any advances made a c c o r d i n g t o t h i s l i n e o f c r e d i t agreement as s e t o u t i n t h e p r o m i s s o r y n o t e , I s i g n e d on 1 2 / 0 1 / 2 0 0 3 The note sets out t h e terms relating to m a t u r i t y , i n t e r e s t r a t e , repayment and advances. I f i n d i c a t e d i n t h e p r o m i s s o r y note, t h e advances will be made a s f o l l o w s : UPON PRESENTMENT OF I R R E V O C A B L E COMMERCIAL LETTER OF CREDIT ISSUED TO GATEWAY ALABAMA P R O P E R T I E S , I N C . "RELATED DOCUMENTS: I h a v e s i g n e d t h e f o l l o w i n g documents i n c o n n e c t i o n w i t h t h i s l i n e o f c r e d i t and n o t e ( s ) entered into i n accordance with t h i s l i n e of credit: security agreement dated 12/01/2003; g u a r a n t y d a t e d 12/01/2003. "MISCELLANEOUS: T h i s l i n e of credit may n o t b e changed e x c e p t by a w r i t t e n agreement s i g n e d by you a n d me. The l a w o f t h e s t a t e i n w h i c h y o u [BOA] a r e located w i l l g o v e r n t h i s a g r e e m e n t . A n y t e r m ... c o n t r a r y t o a p p l i c a b l e l a w w i l l n o t be e f f e c t i v e , u n l e s s t h e l a w p e r m i t s y o u a n d me t o a g r e e t o s u c h a variation." (Capitalization In added.) a d d i t i o n t o t h e note and t h e l i n e - o f - c r e d i t Diamond and personally of i n o r i g i n a l ; emphasis debts Evans each provided guaranteeing the f u l l and o b l i g a t i o n s a "guaranty" described i n the i d e n t i c a l g u a r a n t y d o c u m e n t s i d e n t i f y PBC a s t h e b o r r o w e r the lender. Lender t h e payment that "the Undersigned and performance 8 guaranty on December The state document a n d p r o m p t p a y m e n t when d u e documents e x e c u t e d by Diamond and Evans They agreement, of the debt, 1, 2 0 0 3 . a n d BOA a s guarantees to l i a b i l i t y or 1051033, 1051034 obligation the of Borrower following: credit, $200,000 of even directors member part of 2003, and PBC. formal as Diamond's board of a wife, directors, Evans agreement. member of Shelley, receipt existing of such Diamond, however, had has revoked his August 10, On purchased Diamond the who board was r e s i g n e d her presentation August of also position t o BOA, or committed notice [ o f r e v o c a t i o n ] by p r e s e n t e d no the on as 24, 2 0 0 4 , BOA of sight 2004. reimburse alleging i n count the draft On promptly was of the Lender." evidence indicating that a check f o r $54,942.88 guaranty. terms a a by i t s f o r at the time issued Gateway a g a i n s t a s i g h t d r a f t p r e s e n t e d i n accordance Gateway then r e v o c a b l e by t h e g u a r a n t o r , p r o v i d e d t h a t t h e r e "indebtedness actual he of o f t h e same a g r e e m e n t . D i a m o n d ' s g u a r a n t y t e r m s , was no or a r i s i n g Denise by the of securing letter 31, PBC of of note president as out promissory December share resigned evidenced date." Effective Diamond's to Lender BOA letter of in the amount 16, 2004, August f o r the first credit. of when payment, BOA w i t h the then $145,057.12 they BOA did sued 1 b r e a c h o f t h e p r o m i s s o r y n o t e , and 9 to paid on not PBC, Diamond 1051033, and Evans, a l l e g i n g later amended that to 1051034 i t s complaint Diamond had repay the moneys his advanced to negligently understand to that i t s detriment failed to 3, and a judgment interest and costs and the under for BOA (count read obligations counts 3 and misrepresented and a c t u a l damages o f $200,000 and count add intentionally representations had i n count 2 b r e a c h of t h e i r g u a r a n t i e s . his had 3) 4, intentions on that guaranty i t (count claiming relied and BOA his Diamond document 4). BOA and sought p u n i t i v e damages o f $800,000 actual $500,000 damages in punitive of $200,000 d a m a g e s on on plus count 4. PBC, credit D i a m o n d , and agreement 2 0 0 4 , BOA it had was not for trial court a guaranties entitled to Diamond and also had granted, BOA's Evans found misrepresentation on in part, that under their BOA claim had the expired on on December 10 The parties 2005, $200,000. supported Diamond note in its count 1, payments summary-judgment guaranties, against August 27, i t s promissory not line-of- f o r the l e t t e r of c r e d i t . and f r o m PBC because reimbursement summary j u d g m e n t , a w a r d e d BOA, court the made t o G a t e w a y u n d e r t h e moved and and Evans argued t h a t motion and The the from trial intentional3 and that 1051033, 1051034 Alabama law d i d not support understand" complaint. claim BOA The t r i a l the "negligent asserted court as then failure count 4 dismissed of t o read and the those amended claims with prejudice. After over hearing $200,000 order arguments i n attorney regarding fees, BOA's the t r i a l application for court issued an on M a r c h 2 4 , 2 0 0 6 , a w a r d i n g BOA $ 1 3 2 , 6 0 1 . 6 7 i n a t t o r n e y fees. I t added indebtedness that and amount entered to the judgment $200,000 in of favor principal of BOA for $332,601.67 a g a i n s t PBC, Diamond, and E v a n s , " w h i c h d e f e n d a n t s shall be j o i n t l y and s e v e r a l l y obligated f o r this judgment." B e c a u s e c r o s s - c l a i m s a s s e r t e d b y D i a m o n d a g a i n s t E v a n s a n d PBC and by Evans trial court 54(b), Ala. a n d PBC certified R. against Diamond the judgment C i v . P., a n d BOA, remained as f i n a l pursuant Diamond, and Evans a p p e a l e d s e p a r a t e l y f r o m t h e j u d g m e n t . The a p p e a l PBC has been appeal (case dismissed, no. see supra pending, note 1 0 5 1 0 3 3 ) a n d BOA's 3 the to Rule a n d PBC o f Evans and 1, l e a v i n g cross-appeal Diamond's (case no. 1051034). D i a m o n d ' s w i f e S h e l l e y was a p p a r e n t l y a n i n t e r v e n o r a n d a p a r t y t o the c r o s s - c l a i m s . L i k e w i s e , Evans's wife Denise also a party to the cross-claims. 3 is is 11 1051033, 1051034 Analysis "In looks a summary judgment, a t t h e same f a c t o r s t h a t ruling on carries 703 reviewing the motion no p r e s u m p t i o n an the t r i a l court [O]n appeal of correctness." S o . 2 d 9 3 2 , 938 ( A l a . appellate a court considered i n summary judgment Hornsby v. Sessions, 1997). "'In reviewing the d i s p o s i t i o n of a motion f o r s u m m a r y j u d g m e n t , we u t i l i z e t h e same s t a n d a r d a s that of the t r i a l court i n determining whether the e v i d e n c e b e f o r e t h e c o u r t made o u t a g e n u i n e i s s u e of material fact' and whether t h e movant was e n t i t l e d t o a j u d g m e n t a s a m a t t e r o f l a w . When t h e m o v a n t m a k e s a p r i m a f a c i e s h o w i n g t h a t t h e r e i s no genuine issue of m a t e r i a l f a c t , the burden then shifts t o t h e nonmovant to present substantial evidence creating such an issue. Evidence i s ' s u b s t a n t i a l ' i f i t i s o f 'such w e i g h t and q u a l i t y that fair-minded persons i n the exercise of impartial judgment can reasonably infer the e x i s t e n c e o f t h e f a c t s o u g h t t o be p r o v e d . ' " Ex p a r t e General (citations caveat omitted). that favorable this "Our r e v i e w C o u r t must r e v i e w t o t h e nonmovant doubts against Co., M o t o r s C o r p . , 7 6 9 S o . 2 d 9 0 3 , 906 ( A l a . 1 9 9 9 ) subject the record i n a light and must resolve a l l t h e movant." Hobson v. A m e r i c a n C a s t 690 S o . 2 d 3 4 1 , 344 (Ala. C a s e No. Diamond i s further argues that most reasonable Iron Pipe 1997). 1051033 because 12 to the the loan documents executed 1051033, in 1051034 support the of the l e t t e r of c r e d i t had e x p i r e d before payments t o Gateway under t h e l e t t e r court erred when i t enforced next argues that the t r i a l parol evidence regarding execution of the are loan agreement, a for the creation loan The PBC of a debt, Gateway. 5 honoring Payment not i t disallowed guarantee after the t o , or documents. line-of-credit guaranties, agreement the promissory made h i m . He prior the the personal payments by t h e promissory by when The l i n e - o f - c r e d i t 4 line-of-credit and documents: note, and t h e g u a r a n t i e s evidenced erred against the signing of the loan o b l i g a t i o n to repay credit, court documents the promissory s e c u r i t y agreement. PBC's to four t h e documents the t r i a l negotiations that occurred contemporaneously with, There of credit, BOA made note provides evidences under the l e t t e r t h e payment note. a g r e e m e n t o b l i g a t e d BOA t o l o a n money letter of credit up was be made to of of the debt i t s irrevocable of and $200,000 The s e c u r i t y agreement, a l t h o u g h i m p l i c a t e d on t h i s appeal. 4 to a l o a n document, to upon i s not The line-of-credit agreement a c t u a l l y provides that p r e s e n t m e n t o f t h e l e t t e r o f c r e d i t w o u l d a l l o w BOA t o r e f u s e to make a l o a n , b u t t h i s literal i n t e r p r e t a t i o n of the p a r a g r a p h e n t i t l e d " A m o u n t " ("You may n o t r e f u s e t o make a l o a n ... u n l e s s o n e o f t h e f o l l o w i n g o c c u r s : ... (e) u p o n 5 [substituted page 13] 1051033, 1051034 presentation Diamond "from time to time until ... 08/01/2004." argues: "One e v e n t t h a t t e r m i n a t e d t h e r i g h t t o make a l o a n i s t h e e x p i r a t i o n o f t h e l i n e i t s e l f . The p a r t i e s a g r e e d t o c r e a t e t h e l i n e o f c r e d i t o n D e c e m b e r 1, 2 0 0 3 a n d t o c l o s e i t o n A u g u s t 1, 2 0 0 4 . [PBC] was o b l i g a t e d t o pay o n l y monies 'advanced a c c o r d i n g t o the terms o f t h i s agreement ' I m p o r t a n t l y , none of the terms of the agreement c o u l d be c h a n g e d e x c e p t by w r i t t e n agreement, s i g n e d b y BOA a n d [ P B C ] . BOA d o e s n o t h a v e a n y s i g n e d d o c u m e n t that r e n e w s t h e l i n e o f c r e d i t a g r e e m e n t . ... BOA i s n o t aware o f any p r o v i s i o n i n the l i n e of credit a g r e e m e n t t h a t c a u s e s t h e ... a g r e e m e n t t o r e n e w a u t o m a t i c a l l y . ... BOA c o n f i r m e d i n t e s t i m o n y t h a t t h e ... a g r e e m e n t was ' d e s i g n e d ' t o e x p i r e on A u g u s t 1, 2 0 0 4 b e c a u s e BOA may h a v e b e e n r e q u i r e d t o r e d u c e the [ l e t t e r o f c r e d i t ] f r o m $200,000 t o $120,000. "The Promissory Note "The p r o m i s s o r y n o t e e v i d e n c e d t h e d e b t c r e a t e d by t h e l i n e of credit agreement. I t m a t u r e d on A u g u s t 1, 2 0 0 4 . A s o f t h e m a t u r i t y d a t e , BOA h a d n o t advanced a n y money under the line of credit agreement. The n o t e p r o v i d e d that i t , and any a g r e e m e n t s e c u r i n g t h e n o t e , c o u l d n o t be m o d i f i e d u n l e s s t h e m o d i f i c a t i o n was i n w r i t i n g a n d s i g n e d b y [PBC] a n d BOA. The p r o m i s s o r y n o t e h a d a m a t u r i t y d a t e o f A u g u s t 1, 2 0 0 4 , w h i c h c o r r e s p o n d e d e x a c t l y with the e x p i r a t i o n date of the [ l e t t e r of c r e d i t ] . A s o f A u g u s t 1, 2 0 0 4 , BOA h a d n o t a d v a n c e d a n y f u n d s on t h e l o a n o n b e h a l f o f [ P B C ] . "The Limited "Mr. presentment Guaranty Evans and Diamond ") h a s n o t b e e n 14 each argued. signed identical 1051033, 1051034 limited guaranties B o t h ... c h e c k e d t h e b o x ... that called for a limited form o f g u a r a n t y , as o p p o s e d t o a n u n l i m i t e d g u a r a n t y . ... B y c h e c k i n g the l i m i t e d g u a r a n t y box Diamond a g r e e d t o p a y o n l y those debts c r e a t e d by t h e terms of t h e Loan D o c u m e n t s . D i a m o n d c r o s s e d o u t p a r a g r a p h 'B,' w h i c h would have o b l i g a t e d him t o pay a l l i n d e b t e d n e s s o f [ P B C ] , f r o m a n y s o u r c e . I n o t h e r w o r d s , when t h e loan documents expired, the limited guaranties, w h i c h s e c u r e d t h e Loan Documents, a l s o e x p i r e d . "In Alabama, a l e t t e r of credit transaction i n v o l v e s t h r e e s e p a r a t e and d i s t i n c t commitments: (1)the a p p l i c a n t ' s agreement w i t h t h e bank, which o b l i g a t e s t h e bank t o i s s u e t h e l e t t e r and o b l i g a t e s the a p p l i c a n t t o r e i m b u r s e t h e bank ( i n t h i s c a s e , the [ l e t t e r o f c r e d i t ] and p r o m i s s o r y note between BOA and [PBC]); (2) the bank-beneficiary relationship, i.e., the l e t t e r of c r e d i t i t s e l f ( i n t h i s c a s e t h e [ l e t t e r o f c r e d i t ] made b y BOA i n favor of [Gateway]); and (3) the applicantbeneficiary relationship, i . e . , the underlying c o n t r a c t ( i n t h i s case, t h e l e a s e agreement between [Gateway] a n d [ P B C ] ) . N o b e l I n s . Co. v . F i r s t N a t . B a n k o f B r u n d i d g e , 821 S o . 2 d 2 1 0 , 2 1 6 - 1 7 ( A l a . 2 0 0 1 ) . T h u s , t h e l a w t r e a t s BOA's c o m m i t m e n t u n d e r the [ l e t t e r o f c r e d i t ] t o [Gateway] as a s e p a r a t e and distinct commitment from the underlying t r a n s a c t i o n b e t w e e n BOA a n d [ P B C ] . U n l e s s a b a n k d o c u m e n t s b o t h c o m m i t m e n t s i n one d e b t i n s t r u m e n t , a c o u r t s h o u l d a n a l y z e t h e c o n t o u r s o f each document s e p a r a t e l y . Stated d i f f e r e n t l y , the v i t a l i t y of each separate commitment rises or f a l l s o n i t s own merits." 6 6 Diamond continues this argument as follows: "This i s precisely why many banks use a r e i m b u r s e m e n t a g r e e m e n t a s a m e t h o d t o d o c u m e n t [a l e t t e r - o f - c r e d i t ] t r a n s a c t i o n such as t h i s , b e c a u s e i n a r e i m b u r s e m e n t agreement, a bank o b l i g a t e d t h e a p p l i c a n t t o ' r e i m b u r s e ' t h e bank whenever a draw i s 15 1051033, 1051034 Diamond's brief, BOA argues documents a t 25-28 that expired (emphasis i n o r i g i n a l ) . the loan was n o t made after the loan o n A u g u s t 1, 2 0 0 4 , b u t was a c t u a l l y made o n D e c e m b e r 1, 2 0 0 3 , when t h e p r o m i s s o r y n o t e was s i g n e d a n d t h e letter of c r e d i t issued. "The l o a n was made a n d t h e d e b t o w e d by [PBC] b e f o r e A u g u s t 1, 2 0 0 4 . " BOA's b r i e f , as authority for this argument SouthTrust a t 3 1 . BOA Bank N.A. v . W e b b - S t i l e s C o . , 931 S o . 2 d 7 0 6 , 7 1 0 - 1 1 standby being letter made SouthTrust of c r e d i t by Bank, the i s essentially issuing this Court bank to included of Alabama, ( A l a . 2005)("A equivalent the to a applicant."). t h e above brief, a t 28-29. 16 loan In descriptive paid under [a l e t t e r of c r e d i t ] . BOA's current practices now employ a reimbursement agreement i n s t e a d o f a c o m b i n a t i o n o f a l i n e o f c r e d i t and a p r o m i s s o r y n o t e . ... I f t h a t a g r e e m e n t h a d b e e n u s e d in this case, instead of BOA's line of c r e d i t / p r o m i s s o r y note documentation, then there i s l i t t l e d o u b t t h a t t h e t w o c o m m i t m e n t s o f BOA w o u l d h a v e c o i n c i d e d p e r f e c t l y a n d p e r m i t t e d BOA t o d e m a n d p a y m e n t f r o m [PBC] a n d t h e g u a r a n t o r s when [ G a t e w a y ] drew-down t h e [ l e t t e r o f c r e d i t ] . However, b e c a u s e a r e i m b u r s e m e n t a g r e e m e n t was n o t u s e d i n t h i s c a s e , a n d b e c a u s e BOA o b l i g a t e d i t s e l f u n d e r t h e [ l e t t e r o f c r e d i t ] i n a way t h a t d i d n o t c o i n c i d e w i t h i t s transactional documents with [PBC] and the g u a r a n t o r s , BOA c a n n o t s u c c e s s f u l l y m a i n t a i n that its renewal of the [letter of credit] somehow r e n e w e d , e x t e n d e d a n d m o d i f i e d BOA's i n d e p e n d e n t commitment w i t h [PBC]." Diamond's cites 1051033, 1051034 sentence i n a d i s c u s s i o n r e g a r d i n g not the o r i g i n a t i o n a loan, but the use under a l e t t e r advances upon on contends, exists of c r e d i t . the which that applicant's credit of risk whether it made of c r e d i t not balances true, as BOA a loan i s i s s u e d but before Committee ( A l a . 1 98 8 ) , BOA i s at r i s k from i s i s s u e d to the date the l e t t e r Citronelle, of here. Court of the l e t t e r . letter the The d u r i n g the l i f e any AmSouth argues that the date the of c r e d i t confirmed letter. That, of the l e t t e r the i s at r i s k 17 of the that from the i s not the i s n o t w h e t h e r BOA was however, of c r e d i t obtained indemnity letter is letter I t i s undisputed of c r e d i t q u e s t i o n here sufficiently to this v. f o r f e e s a s s o c i a t e d w i t h an o p e n of a standby pursuant Operators of c r e d i t liability issuance BOA agreement, create principal It i s simply 2 d 1387 , 1390 i t . In q u e s t i o n posed at So. d u r i n g the l i f e issuer of the i n S o u t h T r u s t Bank h e l d t h a t Unit of a l e t t e r to by t h e terms hands. of c r e d i t returned date Court of e x c e p t i o n t o b l o c k a payment credit accrues. this 536 issuer the of Citronelle B a n k , N.A., of Here, at the time a l e t t e r Citing letter letter interest money c h a n g e s the of the f r a u d date credit i t issued, f o r the after but payments the stated 1051033, 1051034 expiration of the line-of-credit agreement between BOA and PBC. Diamond's the loan entire documents moneys u n d e r the Diamond the and had of c r e d i t and on the BOA premise paid that any a l t h o u g h BOA that, Gateway was i t h a d n o t s e c u r e d i n d e m n i f i c a t i o n b y PBC Evans, expiration i s based expired before letter o b l i g a t e d to pay, by argument as date g u a r a n t o r s , beyond of the loan August documents. 1, We 2004, therefore e x a m i n e t h e l o a n d o c u m e n t s i n t h e same m a n n e r a s d i d t h e court to supporting "such test Diamond's weight and exercise of existence of the Life whether denial quality impartial Assurance fact Co. there of was that of can t o be Florida, So. evidence persons reasonably proved." 547 trial i . e . , evidence fair-minded judgment sought substantial liability, 2d or in infer West v. 870 , of the the Founders 87 1 (Ala. 1989). The letter of credit, a u t o m a t i c a l l y extended 1, 2004, e x p i r a t i o n u n l e s s BOA that notified i t i n t e n d e d not f o r one date and by i t s terms, was to year beyond i t s o r i g i n a l each subsequent Gateway i n w r i t i n g to renew the 18 and by letter of expiration secure credit. be August date delivery 1051033, In 1051034 the personal guaranty he s i g n e d , Diamond stated that he " a b s o l u t e l y a n d u n c o n d i t i o n a l l y g u a r a n t e e s t o [BOA] the f u l l a n d p r o m p t p a y m e n t when d u e , w h e t h e r a t m a t u r i t y o r e a r l i e r ... a s f o l l o w s : A. I f t h i s [ x ] is checked, ... t h e payment ... of the debt evidenced by or a r i s i n g out of the following: $200,000 p r o m i s s o r y n o t e s e c u r i n g l e t t e r o f c r e d i t of even date and any extensions, renewals or replacements thereof." The life of extended personal guaranty, by i t s own to the extent the promissory note The that the promissory i t was note, supported s i g n e d by by PBC, is i s extended. on unlimited terms, i t s face personal states guaranty a g r e e m e n t s e x e c u t e d b y D i a m o n d a n d E v a n s . On p a g e 2, u n d e r t h e heading "OBLIGATIONS relevant to this credit than The of and the issue. The f i r s t t o any o f u s , o r r e n e w a l a l l o f us w i l l other reads: this INDEPENDENT," not release " I agree note or the debt that there are two r e a d s : " A n y e x t e n s i o n o f new of t h i s note me my from y o u may by a l l or less duty to pay i t . " at your option f o r a n y t e r m w i t h o u t a f f e c t i n g my l i a b i l i t y BOA had extend r e p r e s e n t e d by t h i s n o t e , o r any p o r t i o n the note or debt, from time t o time w i t h o u t l i m i t note." sentences the right notice. 19 to extend the or notice f o r payment o f note without 1051033, 1051034 The l i n e - o f - c r e d i t agreement d e f i n e s t h e c o n d i t i o n s under which BOA was a u t h o r i z e d under that pertinent t o make loans t o PBC, t h e b o r r o w e r a g r e e m e n t . The l i n e - o f - c r e d i t agreement reads, i n part: "You h a v e e x t e n d e d t o me a l i n e o f c r e d i t i n t h e AMOUNT of TWO HUNDRED THOUSAND AND 00/100'S $ 2 0 0 , 0 0 0 . 0 0 . Y o u w i l l make l o a n s t o me ... u n t i l 0 8 / 0 1 / 2 0 0 4 . A l t h o u g h t h e l i n e o f c r e d i t e x p i r e s on that date, I w i l l remain o b l i g a t e d to perform a l lof my d u t i e s s o l o n g a s I owe money a d v a n c e d u n d e r t h i s a g r e e m e n t , as e v i d e n c e d b y any n o t e s I have s i g n e d p r o m i s i n g t o repay these amounts. fi "PROMISSORY NOTE: I w i l l repay a n y a d v a n c e s made a c c o r d i n g t o t h i s l i n e o f c r e d i t agreement as s e t o u t i n t h e p r o m i s s o r y n o t e , I s i g n e d on 1 2 / 0 1 / 2 0 0 3 . fi "MISCELLANEOUS: T h i s line of credit may n o t b e changed except by a w r i t t e n agreement s i g n e d by you a n d me." (Capitalization i n original.) The lists a "security dated 12/01/2003," b u t nowhere the terms of agreement dated those documents of the agreement, document 12/01/2003" does i t p u r p o r t agreement. I t r e q u i r e s a m u t u a l l y terms f o r an e x t e n s i o n and line-of-credit into "guaranty to incorporate line-of-credit s i g n e d w r i t i n g t o change t h e there i s no of the term 20 the and a agreement provision i n the of the agreement. The 1051033, 1051034 line-of-credit 1, agreement, by i t s terms, d i d expire on A u g u s t 2004. BOA a r g u e s that, "even i f t h e L i n e o f C r e d i t Agreement i n t h i s case d i d not adopt t h e m a t u r i t y of t h e Note, i t e x p r e s s l y s t a t e s t h a t t h e B a n k c a n make l o a n s t o [PBC] u n t i l A u g u s t 1, 2 0 0 4 , a n d t h e l o a n s o u g h t t o b e c o l l e c t e d by [BOA] on t h i s a c t i o n was made o n D e c e m b e r 1, 2 0 0 3 , when t h e L e t t e r o f C r e d i t was i s s u e d . " BOA's b r i e f , a t 33. As d i s c u s s e d earlier i n this opinion, argument i s n o t s u p p o r t e d by C i t r o n e l l e , by BOA plain BOA. i n support language me" that maximum note." PBC. BOA "the p r i n c i p a l BOA letter sum shown of p r i n c i p a l merely I t i s equally on A u g u s t you l o a n 1, of credit, to the and e x e c u t e d by not that me" cited "you have but that "[y]ou The p r o m i s s o r y " y o u h a v e l o a n e d me" o r " t o d a y y o u l o a n I t i s obvious executed states t o me f r o m t i m e t o t i m e . " not that amount date the case and i t i s c o n t r a r y documents d r a f t e d agreement o r "as o f t h i s make l o a n s provides but of the loan The l i n e - o f - c r e d i t loaned will o f i t s argument, supra, this that that above I [$200,000] can borrow on t h e d a t e t h e l o a n assumed an o b l i g a t i o n obvious that no m o n e y s 2004, as t h e r e s u l t 21 documents loans this were to w e r e owed b y PBC t o o f draws b e c a u s e no d r a w a g a i n s t me" i s the under t o make note against the t h e l e t t e r was made 1051033, until 1051034 August Although 1, the 2004, the l i n e - o f - c r e d i t before BOA made l e t t e r of c r e d i t , could loans on A u g u s t t o Gateway under t h e p r o m i s s o r y note and t h e g u a r a n t i e s made u n d e r note that expired payment notice, and t h e y out pursuant to the l e t t e r were promissory agreement i t s first be e x t e n d e d w i t h o u t moneys p a i d not 10, 2004. are v a l i d of credit the l i n e - o f - c r e d i t requires as t o whether or agreement. The PBC t o r e p a y a n y p a y m e n t s made u n d e r t h e l e t t e r o f c r e d i t d o e s n o t r e l y on t h e l i n e - o f - c r e d i t agreement. $200,000 credit the I t merely documents f o r advances by Gateway. line-of-credit Even made BOA reimbursed of c r e d i t . credit. while that t o pay BOA of the l e t t e r of advanced agreement and t h e g u a r a n t i e s under was i n require that f o r t h e moneys i t paid pursuant Further, argues, reimbursement i s r e q u i r e d under Alabama of on p r e s e n t m e n t agreement the p r o m i s s o r y note letter agreement t h o u g h no m o n e y s w e r e effect, be PBC's a s BOA to the l a w when a n i s s u e r p a y s u n d e r a l e t t e r BOA a r g u e s : "When [PBC], Evans and Diamond e n t e r e d i n t o t h e transaction f o r the l e t t e r of c r e d i t , they submitted t o b e g o v e r n e d b y A l a b a m a l a w . ... Among t h o s e l a w s ... i s an A l a b a m a statute imposing l i a b i l i t y on [PBC] t o r e i m b u r s e [BOA] i m m e d i a t e l y f o r a m o u n t s paid under the Letter of Credit regardless of w h e t h e r t h e r e was a n e f f e c t i v e N o t e a n d L i n e o f 22 1051033, 1051034 Credit Agreement. 108(i)(1)(2002)." BOA's b r i e f , 108(i)(1), that a t 36-37. article: applicant A l a . Code The s t a t u t e [1975,] BOA a presentation (1) i s i n immediately d a t e o f i t s payment to available of funds." be line one "[T]he of c r e d i t ascertain with funds in Citronelle, as a d i s t i n c t of the issuer the beneficiary's trial court then of Credit however, trial that 23 a to agreed letter of as a and t h a t t h e of c r e d i t i s independent the issuer's "In t h i s case, agree. court of these together instrument and t h e b e n e f i c i a r y , the as p a r t possible, and independent instruments establish c r u c i a l ties with We court the guaranties, The relationship with said: the a partial the t r i a l and c o n s t r u e d of a l e t t e r by by not l a t e r than the reasonably intention." between t h e i s s u e r obligation The and t h e L e t t e r the extent the p a r t i e s ' stands contract To the note, issuer or required In i t sorder entering a r e t o be i n t e r p r e t e d the holding credit regards agreement transaction. instruments of Court -- § 7 - 5 - reimbursed s u m m a r y j u d g m e n t i n r e s p o n s e t o BOA's m o t i o n , stated: 7-5- " ( i ) An as p e r m i t t e d entitled § references A l a . C o d e 1 9 7 5 -- r e a d s a s f o l l o w s : has honored this See however, customer. the other the l e t t e r of c r e d i t . " 1051033, 1051034 "A l e t t e r - o f - c r e d i t t r a n s a c t i o n t y p i c a l l y i n c l u d e s three separate commitments: (1) the applicant's agreement w i t h the bank, w h i c h o b l i g a t e s the bank to i s s u e the letter and o b l i g a t e s the applicant to reimburse the bank; (2) the bank-beneficiary r e l a t i o n s h i p , i . e . , the l e t t e r of c r e d i t i t s e l f ; and (3) t h e a p p l i c a n t - b e n e f i c i a r y r e l a t i o n s h i p , i . e . , the u n d e r l y i n g c o n t r a c t . " Southern So. in 2d Energy Homes, Inc. Bank of Alabama, 1185 ( A l a . 19 9 8 ) ( e m p h a s i s a d d e d ) . The question here is and distinction 1185 the In from by Applicant can Art. and 3, court the could A u g u s t 1, be discuss made. 2004, and by Beneficiary the the between of banks or 709 So. at Bank.'" 2d Revision, International discussed the p r o v i s i o n s f o r the the promissory d i d not is 500). trial the No. w h i c h , Diamond a r g u e s , i s the PBC 1993 "'[a] case a v a i l h i m s e l f Issuing It r e l a t i o n s h i p s . This that existing UCP, 2004, e x p i r a t i o n d a t e and court fact 709 commitment relationship. other i n no the C o m m e r c e , Pub. the l e t t e r of c r e d i t , two the relationships i t s order, trial the of c r e d i t ] (quoting Chamber o f applicant-bank i s evidenced contractual between the distinct [under a l e t t e r to AmSouth 1180, separate The v. As the note, and August 1, extension of the line-of-credit guaranties. agreement, o n l y document under w h i c h a noted, that document i t s t e r m s , i t c o u l d be 24 loan expired extended only on by 1051033, a 1051034 writing signed by by BOA, the "[BOA] w i l l make loans drafted both parties. line-of-credit t o [PBC] f r o m 08/01/2004. A l t h o u g h t h e l i n e [PBC] will the terms advances set agreement" according that time states to time that until on t h a t ... date, [ i t s ] d u t i e s under and t h a t to this out i n the promissory argues agreement i n words this as [PBC] o w e [ s ] money a d v a n c e d a c c o r d i n g of this made i t s face, of c r e d i t expires remain o b l i g a t e d t o perform a g r e e m e n t so l o n g On line note." PBC, t h e s i g n e r PBC "will repay any of c r e d i t agreement (Emphasis added.) of the l i n e - o f - c r e d i t to as Diamond agreement, owed no money u n d e r t h a t a g r e e m e n t on A u g u s t 1, 2 0 0 4 , t h e d a t e the been agreement advanced expired. during Although the period was i n e f f e c t , Diamond's The note, promissory i t i s true referred to only the l e t t e r n o t i c e . Diamond's g u a r a n t y , w h i c h r e f e r r e d o n l y t o t h e automatically and extended line-of-credit agreement the promissory to cover extended note, the promissory i s not incorporated promissory note or the guaranty expiration of the l i n e - o f - c r e d i t 25 that Diamond by of without credit properly misplaced. and of was fact i s agreement credit letter the guaranties, no money h a d the l i n e - o f - c r e d i t r e l i a n c e on t h a t which that BOA was also note. The into e i t h e r the signed, and t h e a g r e e m e n t , t h e r e f o r e , h a s no 1051033, 1051034 e f f e c t on t h e o b l i g a t i o n s set f o r t h i n the promissory the document. guaranty "If the unambiguous, effect the become appropriate, Blakeney, Casting has terms & Dev. questions be So. transaction to 2d 774 585 contract of of decided Co., asserted a construction may 568 within the law by contract for a the 2d 853, 855 the loan which BOA, Diamond, and court did find ambiguous. The trial ambiguous. In the promissory note, its legal and, when and judgment. McDonald documents not and v. Dill U.S. ( A l a . 1 9 9 1 ) . No that PBC under the Diamond g u a r a n t e e d the "$200,000 p r o m i s s o r y c r e d i t of even date." in entering Accordingly, a summary j u d g m e n t Die party the PBC are are the documents parties agreed to to pay securing the f o r BOA, trial and [the] letter letter c o u r t d i d not that be BOA r e p a y m e n t o f money p a i d note v. underlying $ 2 0 0 , 0 0 0 f o r p a y m e n t s made u p o n t h e p r e s e n t a t i o n o f t h e of c r e d i t . and plain court summary (Ala. 1990)." So. are note judgment out of err is affirmed. C a s e No. BOA presents three 1051034 issues in i t s cross-appeal. 7 BOA first O n e o f t h e i s s u e s BOA a s k e d t h i s C o u r t t o d e t e r m i n e was whether the t r i a l c o u r t exceeded i t s d i s c r e t i o n i n awarding i t 7 26 1051033, 1051034 asks: "[D]id terms and c o n d i t i o n s agreement, the t r i a l the t r i a l court of the promissory and g u a r a n t i e s ? " In case court correctly enforced note and t h e g u a r a n t i e s . on e r r i n enforcing August Diamond's 1, 2004, note, of credit that t h e terms o f t h e promissory The l i n e - o f - c r e d i t under line express n o . 1 0 5 1 0 3 3 we h e l d but i t s e x p i r a t i o n obligations the the agreement d i d not promissory expired compromise note and h i s guaranty. The trial as next issue BOA p r e s e n t s court e r ri n f a i l i n g provided The related by t h e note?" promissory note on c r o s s - a p p e a l t o award [BOA] i n t e r e s t BOA's b r i e f , includes that i s "did the on t h e d e b t a t 6. following provision to interest: "INTEREST: I agree to pay interest on the o u t s t a n d i n g p r i n c i p a l b a l a n c e from 12/02/2003 a t t h e r a t e o f 4 . 0 0 0 % p e r y e a r u n t i l t h e F I R S T RATE CHANGE. l e s s t h a n t h e t o t a l a t t o r n e y f e e s a c t u a l l y p a i d b y BOA. The argument p r e s e n t e d i n support o f t h e r e q u e s t , h o w e v e r , was d i r e c t e d a g a i n s t a r g u m e n t s made b y E v a n s a n d PBC, e n t i t i e s t h a t a r e n o t p a r t i e s t o t h i s c a s e . Our e x a m i n a t i o n o f BOA's n o t i c e o f appeal t o t h i s Court and t h e a s s o c i a t e d docketing s t a t e m e n t r e v e a l no m e n t i o n o f a n i s s u e r e g a r d i n g attorney f e e s . We t h e r e f o r e p r e t e r m i t a n y d i s c u s s i o n o f t h e a w a r d o f a t t o r n e y f e e s b y t h e t r i a l c o u r t o r o f BOA's c o n t e n t i o n t h a t the t r i a l c o u r t s h o u l d have awarded a t t o r n e y f e e s under t h e A l a b a m a L i t i g a t i o n A c c o u n t a b i l i t y A c t , § 1 2 - 1 9 - 2 7 2 , A l a . Code 1975. 27 1051033, 1051034 "Variable Rate: s t a t e d below: This rate may then change as " I n d e x R a t e : The f u t u r e r a t e w i l l be 0.000% GREATER THAN the following i n d e x r a t e : PRIME RATE AS D E F I N E D AS THE HIGHEST RATE P U B L I S H E D IN THE WALL STREET JOURNAL AS (Capitalization The in trial interest be original.) court did awarded. addressing appropriate the not address Because i n t e r e s t under the note, not 'PRIME R A T E ' " we BOA BOA's clearly f i n d t h a t the issue, and c o n s i d e r a t i o n of the that has trial case request a that right to court erred in remanded for is issue. Conclusion The trial documents in not terms against addressing of judgment no. court the of 1051034 appropriate did Diamond. the we trial The issue promissory the not remand the in trial of note. court proceedings err court interest case no. to due to an award AFFIRMED. 1 0 5 1 0 3 4 -- AFFIRMED IN PART AND 28 we trial BOA. 1 0 5 1 0 3 3 -- BOA 1051033, the the did err, Accordingly, i n case i n regard enforcing REMANDED. of loan however, under the affirm the and in case court for interest to 1051033, 1051034 Cobb, Murdock, C . J . , and Lyons, Woodall, a n d Shaw, J J . , c o n c u r . 29 Stuart, Smith, Bolin,

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