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Another Waller Win before Tennessee's Highest Court

In a precedent-setting case decided by the Tennessee Supreme Court, Waller attorneys obtained a decision in favor of their client investors who were sued for business torts arising out of the failure of a closely-held business to continue to make payments on a promissory note with which one 50% owner of a business had bought out the other 50% owner. The business failed, and when the purchaser filed bankruptcy, the seller sued our clients who had foreclosed and were engaged in winding up the business. The Tennessee Court of Appeals reversed a trial court decision and declared that the officers and directors of insolvent corporations owe fiduciary duties to creditors of the corporation, which the creditors can enforce by individual actions directly against the officers and directors. The Tennessee Supreme Court granted our clients' application for appeal and reversed the Court of Appeals. The Supreme Court, in a case of first impression, held that Tennessee law with respect to the duties owed to creditors by directors of insolvent corporations conformed to the law in Delaware.

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ExperienceAnother Waller Win before Tennessee's Highest Court
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