Soloff v. Dollahite

OPINION

CANTRELL, Judge.

The trial court held that the Community Bank of Germantown was not a holder in due course of two notes payable to Paneling and Home Center, Inc. and negotiated to the bank by James S. Dollahite, Sr. Thus, the court held that the bank’s interest in the notes was subject to the prior claims of the State of Tennessee for unpaid taxes and of Elizabeth Soloff, a creditor of Paneling and Home Center, Inc.

Prior to 1984, James Steel Dollahite, Jr. operated an incorporated business in Nashville under the name of Paneling Centers of America (PCA). Mr. Dollahite and his father,…