Wansley v. First National Bank Of Vicksburg

566 So. 2d 1218 (1990)

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Nature of the Case

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Facts

Ps are farmers. Ps held as co-tenants 4,200 acres of farmland. They divided their farming operations, each independently working half of the land. Ps obtained annual crop production loans through D. Ps were unable to repay these loans in full and began renewing their unpaid debts with each new production loan. D required additional security and got Ps' land. Ps executed and delivered a deed of trust conveying their interest in the land to John C. Wheeless, Jr., as trustee. The instrument reflected a conveyance in trust to secure indebtedness to D. Ps were unable to pay even a substantial portion of what each owed at the end of the 1984 crop season. D declared their debts in default and directed Wheeless, as trustee, to foreclose. On March 29, 1985, Trustee Wheeless offered the lands at public auction. The Bank was the lone bidder, offering $500,000.00 for each interest. Wheeless accepted these bids. On April 1, 1985, Wheeless executed trustee's deeds and delivered these to D. Ps filed a complaint in the Chancery Court of Sharkey County to cancel and set aside the trustee's deeds. Ps argued that Trustee Wheeless was personally financially interested in the Bank and hence was not an impartial and disinterested trustee. Wheeless was general counsel for D and served on its board of directors. Wheeless freely acknowledges that he was 'one of the D's largest' shareholders. Wheeless had also represented Ps at various times over the years. The Chancery Court confirmed D's fee simple title to the foreclosed lands. The Court found for D on its counterclaim, entering deficiency judgments against Tom and Mary Ann Wansley for $493,294.00, plus interest, and against Julian and Mary Frances Wansley for $230,030.00, plus interest. D sold the lands to L. G. Willis, Jr. and John T. Pitts. The sales price was substantially lower than $1,000,000.00, the aggregate amount credited Ps upon foreclosure. Ps appealed. The Supreme Court of Mississippi held that D’s failure to appoint a disinterested trustee voided the sale. D petitioned for a rehearing.