Session November 2, 2016
from the Circuit Court for Davidson County No. 15C2873 Thomas
W. Brothers, Judge.
musician/composer borrowed money from a bank and assigned
performance royalties as collateral. He later filed for
bankruptcy, and his debt to the bank was discharged. The
bank, however, continued to collect royalties during the
pendency of the bankruptcy case. The musician/composer filed
suit against the bank seeking recovery of the royalties
collected by the bank after the filing of the bankruptcy
petition based on theories of unjust enrichment and
conversion. The musician/composer also sought damages from
the bank for violation of the automatic stay of 11 U.S.C.
§ 362. The bank moved to dismiss the case for failure to
state a claim upon which relief can be granted. The trial
court granted the motion. Because it lacked subject matter
jurisdiction over the claims, we vacate the decision of the
R. App. P. 3 Appeal as of Right; Judgment of the Circuit
Court Vacated and Case Remanded
Hugh Carroll (Argued), Carrollton, Georgia, and Robert P.
Noell, Knoxville, Tennessee, for the appellant, Brandon
Strevel Hayes (Argued), Knoxville, Tennessee, and Mary Beth
Haltom White, Nashville, Tennessee, for the appellee, U.S.
Bank National Association.
Neal McBrayer, J., delivered the opinion of the court, in
which Frank G. Clement, Jr., P.J., M.S., and Richard H.
Dinkins, J., joined.
NEAL McBRAYER, JUDGE.
this case was decided on a motion to dismiss for failure to
state a claim upon which relief can be granted, we accept the
following allegations pertinent to this appeal as true.
See, e.g., Doe v. Sundquist, 2 S.W.3d 919, 922
(Tenn. 1999). Plaintiff Brandon Barnes is a musician and
composer. Prior to July 21, 2006, Mr. Barnes regularly
received royalties through the American Society of Composers,
Authors and Publishers, which is commonly known by the
21, 2006, Mr. Barnes borrowed $106, 969 from U.S. Bank
National Association. As part of his loan, Mr. Barnes granted
a security interest in all of his
rights to payment from ASCAP (or any successor thereto or
assign thereof) arising under or related in any and all of
[Mr. Barnes'] affiliation agreements or other contracts
with ASCAP . . . referenced by such entity as under, or
included as part of, account no. 2153 and any and all
replacements or substitutions of and for such contracts and
any and all replacements, substitutions and renumberings of
such account, and all proceeds of the foregoing.
U.S. Bank filed a financing statement in Alabama on February
Barnes filed a petition for relief under Chapter 7 of Title
11 of the United States Code (the "Bankruptcy
Code"), on May 22, 2009, in the Northern District of
Alabama. Mr. Barnes included his debt to U.S. Bank on his
bankruptcy schedules, and U.S. Bank received notice of the
bankruptcy filing. The United States Bankruptcy Court for the
Northern District of Alabama ...