Hardeman County Bank v. Robert Stallings

This case concerns the enforceability of a personal guaranty executed by appellants, Mike Waller and Frieda Waller d/b/a Farmer's Supply and Elevator, for the benefit of the appellees, Hardeman County Bank, Bank of Bolivar and Merchants and Planters Bank of Toone. 1 The trial court entered judgment for the Banks as against the Wallers 2 in the amount of $42,765.67 and awarded an additional $10,030 in attorney fees. The Wallers have appealed, citing as error the trial court's refusal to grant their request for a jury trial and its failure to apply the applicable statute of limitations or the doctrine of laches as a means to preclude enforcement of the guaranty. For reasons hereinafter discussed, we affirm the judgment of the trial court. This lawsuit results from the attempts by various entities to maintain in operation the last railroad line in Hardeman County. To this end, the Hardeman County Railroad Company, Inc. (HCRC), composed of concerned individuals and businesses, was formed. In August 1982, the Industrial Development Board of the County of Hardeman (Board) agreed to purchase the railroad (the real property and accompanying ""facilities"" necessary for operation of the railroad) and lease it to HCRC. The acquisition was pursuant to the Board's issuance of Industrial Revenue Bonds, Series of 1982, in the amount of $600,000. The bonds were purchased by the Banks on the following pro rata basis: Hardeman County Bank, $355,000; Bank of Bolivar, $174,000; and Merchants and Planters Bank of Toone, $71,000. The Board secured its indebtedness by entering into an Indenture of Mortgage and Deed of Trust with Hardeman County Bank as trustee.