Trimble v. Sonitrol of Memphis, Inc.

HIGHERS, Judge.

This case involves a secured transaction in connection with the sale of two corporations. The first corporation was sold for $100 via an asset purchase agreement, and the second corporation was sold for over a million dollars for which promissory notes were executed by the second corporation. These notes were secured by a security interest in the assets of both corporations. As additional security for the notes, the stock of the second corporation was to be delivered to an escrow agent. Upon the defendant corporation’s failure to make a payment on the notes, the plaintiff…