Agsouth Farm Credit, Acav.Gowen Timber Company, Inc.
AgSouth Farm Credit held a security interest in timber and sued Gowen Timber for conversion after timber was cut from land securing the debt. A jury found for Gowen Timber. AgSouth appealed the denial of judgment notwithstanding the verdict and challenged evidentiary rulings, including the admission of parol evidence and the court’s instruction on attorney fees. The Court of Appeals held that the evidence did not support the verdict as a matter of law because Gowen Timber had cut timber in which AgSouth held a legally enforceable interest. The trial court also erred in admitting parol evidence that did not establish the claimed limitation on AgSouth’s rights and in submitting the liability question to the jury on an inadequate evidentiary record. The court reversed the judgment and ordered a new trial on the liability issues. It also addressed the statutory basis for attorney fees, explaining that fees authorized by the timber-conversion statute are distinct from fees recoverable in a tort claim. The judgment was reversed and the case remanded with direction. Two judges concurred.
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