Dominion Bank of the Cumberlands v. Nuckolls

MEMORANDUM OPINION

GLEN M. WILLIAMS, District Judge.

This case is presently before the court on cross-appeals from the decision of the United States Bankruptcy Court for the Western District of Virginia.

The underlying facts are as follows. James R. Nuckolls and his wife, Judy M. Nuckolls, (“the Nuckolls”) owned and operated Jim and Judy’s Family Restaurant (“the Restaurant”) in Grundy, Virginia for a brief time until December 1983. In November 1982 they borrowed approximately $7,000 from Dominion Bank of the Cumber-lands (“the Bank”); and in return they granted the Bank a security interest in…