Paul Dean Corp. v. Kilgore

Evidence of a letter from plaintiff's counsel memorializing a settlement agreement and defendant's negotiation of two checks in connection with the settlement agreement authorized the trial court to conclude that the parties' reached an enforceable agreement to stop foreclosure proceedings.

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James Kilgore purchased Smyrna Cleaners and Laundry the “laundry” from Paul Dean Corporation and signed a promissory note. To secure the note, Kilgore granted the corporation a security interest in the laundry. Kilgore subsequently defaulted on the promissory note, and PDC threatened foreclosure proceedings. Kilgore then sued PDC and Paula Ortiz, president of PDC, collectively “PDC” asserting that he had reached a binding settlement agreement with PDC. Kilgore sought injunctive relief, a declaratory judgment, attorney fees, and punitive damages. Following a bench trial, the trial court determined that PDC and Kilgore had reached a valid settlement agreement, which Kilgore had honored. The trial court further concluded that PDC’s foreclosure actions “were not justified,” and it awarded Kilgore $10,000 in punitive damages. PDC filed this appeal, asserting multiple enumerations of error.1 For reasons that follow, we affirm in part and reverse in part.

The relevant facts demonstrate that, on August 1, 1996, PDC sold the laundry to Kilgore for $125,000. The sales contract required Kilgore to pay $25,000 at closing and to sign a promissory note for the balance of the purchase price. The contract provided that, beginning on September 1, 1996, Kilgore would pay six monthly installments of $1,219.80, followed by a balloon payment of the remainder of the loan on March 1, 1997. PDC retained a security interest in the laundry.

Paul Dean Corp. v. Kilgore

Evidence of a letter from plaintiff's counsel memorializing a settlement agreement and defendant's negotiation of two checks in connection with the settlement agreement authorized the trial court to conclude that the parties' reached an enforceable agreement to stop foreclosure proceedings.

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