First City National Bank of Oxford v. Whitmore

This is an appeal from an order granting a preliminary injunction against foreclosure of a mortgage. We reverse and remand.

Plaintiffs are general contractors who contracted with Regency Health Club, Inc., to construct a building to be used as a health club. Fred Fitts, president of Regency, negotiated on its behalf. Prior to the commencement of construction, Robert L. Whitmore, a plaintiff, was advised by Tom Stinson, president of First City National Bank of Oxford, that First City had loaned the money to Regency for construction of the health club. In April 1975, Regency executed a mortgage…