Harrell v. Federal Nat'l Payables Inc.

No jury question remained as to whether plaintiff's failure to extend a $10 million line of credit to the first plaintiff's real estate management company caused the demise of that company and created the defendants' liability under a guaranty agreement.

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Federal National Payables, Inc. FNP sued Melton and Deborah Harrell the Harrells, asserting claims under a guaranty agreement. The Harrells counterclaimed, alleging that FNP failed to honor its agreement to provide funding to a company formed by Mr. Harrell. The trial court granted FNP’s motion for summary judgment as to counts four and five of the complaint, and FNP dismissed the remainder of the complaint.1 Thereafter, the court entered an order granting FNP’s motion for summary judgment as to damages and denying the Harrells’ motion to strike the supplemental affidavits in support thereof. The Harrells appeal both orders. For reasons that follow, we affirm the grant of summary judgment as to liability, but reverse the grant of summary judgment as to damages. Summary judgment is appropriate where the evidence of record “shows that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.”2 On appeal, we review a trial court’s grant of summary judgment de novo.3

Viewed in this manner, the record shows that Melton Harrell was the founder and president of Intown Properties, Inc. ITP, a real estate management company. In the mid to late 1990s, FNP, a factoring company, began purchasing accounts receivables from ITP. ITP’s receivables were generated through its contracts with the U.S. Department of Housing and Urban Development HUD.

Harrell v. Federal Nat'l Payables Inc.

No jury question remained as to whether plaintiff's failure to extend a $10 million line of credit to the first plaintiff's real estate management company caused the demise of that company and created the defendants' liability under a guaranty agreement.

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