IN THE COURT OF APPEALS OF TENNESSEE
AT NASHVILLE
FILED
July 10, 1998
FORD CONSUMER FINANCE )
COMPANY, INC., ) Cecil W. Crowson
) Appellate Court Clerk
Plaintiff/Appellee, )
) Davidson Chancery
VS. ) No. 95-2830-I
)
AMBROSE W.J. CLAY, ) Appeal No.
) 01A01-9610-CH-00481
Defendant/Appellant. )
APPEAL FROM THE CHANCERY COURT
FOR DAVIDSON COUNTY
AT NASHVILLE, TENNESSEE
THE HONORABLE IRVIN H. KILCREASE, JR., CHANCELLOR
For Plaintiff/Appellee: For Defendant/Appellant:
No Appearance Ambrose W.J. Clay
Pro Se
VACATED AND REMANDED
WILLIAM C. KOCH, JR., JUDGE
OPINION
This is an appeal involves a maker’s liability on a promissory note. The
Chancery Court for Davidson County, following a bench trial, awarded the holder of
the note a $27,523.47 judgment. The maker of the note appealed to this court and
then filed a Chapter 7 bankruptcy petition in the United States Bankruptcy Court for
the Middle District of Tennessee. The maker of the note has now informed this court
that the debt arising from the judgment on the note has been discharged, relieving
him from further personal liability on the note. Because the judgment on the note is
now void by force of federal law, we vacate the judgment below and remand this case
with directions that it be dismissed.
I.
In 1987 Ambrose W. J. Clay executed a promissory note for $19,381.51 with
Ford Consumer Finance Co. Inc.’s (“Ford”) predecessor, Associates Financial
Services, Inc. The note was secured by a deed of trust on a piece of real property
owned by Mr. Clay. After Mr. Clay defaulted on the note, Ford sued Mr. Clay in the
Chancery Court for Davidson County seeking a judgment against him for the unpaid
balance of the note plus interest, costs, and attorneys fees as provided in the note.
Mr. Clay resisted the collection action by asserting that Ford was required to realize
on its collateral before proceeding against him personally for the debt.
Both parties moved for summary judgment. The trial court determined that
Ford was not required to proceed against the collateral before proceeding against Mr.
Clay for a personal money judgment. On the merits, the trial court found Mr. Clay
in default and awarded Ford a judgment for the unpaid balance of $23,933.45, plus
reasonable attorneys fees of $3,590.02 for a total judgment of $27,523.47.
Thereafter, on April 8, 1996, Mr. Clay appealed.
On November 12, 1996, Mr. Clay filed a petition for Chapter 7 bankruptcy in
the United States Bankruptcy Court for the Middle District of Tennessee. As part of
that filing he sought discharge of any personal liability on the Ford note. Ford filed
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no action in the bankruptcy court contesting the dischargeability of its debt, and on
October 17, 1997, the United States Bankruptcy Court granted Mr. Clay a Chapter 7
discharge covering the Ford debt.
II.
The courts ordinarily decline to provide judicial relief in cases that do not
involve a genuine and existing controversy requiring the adjudication of present
rights. See State ex rel. Lewis v. State, 208 Tenn. 534, 537, 347 S.W.2d 47, 48
(1961); Dockery v. Dockery, 559 S.W.2d 952, 954 (Tenn. Ct. App. 1977). Thus,
cases must remain justiciable throughout the entire course of the litigation, and the
concept of mootness involves circumstances that render a case no longer justiciable.
See McIntyre v. Traughber, 884 S.W.2d 134, 137 (Tenn. Ct. App. 1994). A moot
case has lost its character as a present, live controversy, see McCanless v. Klein, 182
Tenn. 631, 637, 188 S.W.2d 745, 747 (1945), and a case will be considered moot if
it no longer serves as a means to provide some sort of relief to the prevailing party.
See McIntyre v. Traughber, 884 S.W.2d at 137; Massengill v. Massengill, 36 Tenn.
App. 385, 388-89, 255 S.W.2d 1018, 1019 (1952).
It is well-settled that a discharge in bankruptcy operates to void a debtor’s
personal liability for any judgment obtained prior to the debtor’s bankruptcy filing.
See 11 U.S.C.A. § 524(a)(1) (West 1993); In re Walls, 125 B.R. 908, 909 (Bankr. D.
Del. 1991); In re Freels, 79 B.R. 358, 361 (Bankr. E.D. Tenn. 1987); Conklin v. Iowa
Dist. Court, 482 N.W.2d 444, 447 (Iowa 1992). 11 U.S.C.A. § 524(a)(2) further
provides that a Chapter 7 discharge operates to enjoin any act by a creditor to enforce
a pre-petition discharged debt as a personal liability of the debtor. Thus, by operation
of federal law, Ford may no longer pursue Mr. Clay personally for his debt under the
promissory note, and Ford’s judgment in the trial court may nevermore be employed
to reach Mr. Clay personally by garnishment, execution, or otherwise.
Since Ford’s judgment has been abrogated by Mr. Clay’s discharge in
bankruptcy, Mr. Clay no longer needs relief in this court from the judgment below.
Any additional relief this court could give would be tantamount to carrying coals to
Newcastle. This case no longer serves as a means to provide relief to Mr. Clay. The
ordinary practice when a case becomes moot on appeal is to vacate the judgment in
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the trial court and remand the case with directions that it be dismissed. See McIntyre
v. Traughber, 884 S.W.2d at 138. Consequently, we vacate the judgment below and
remand this case for dismissal of Ford’s complaint. We tax the costs of this appeal
to Ambrose W. J. Clay, no surety of record appearing.
______________________________
WILLIAM C. KOCH, JR., JUDGE
CONCUR:
_______________________________
SAMUEL L. LEWIS, JUDGE
_______________________________
BEN H. CANTRELL, JUDGE
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