Chicago Title Insurance Company v. Closed Nashville, LLC et al.

Mortgage companies maintain that the Tennessee Housing Development Agency(“THDA”), which services mortgages through the trade name of Volunteer Mortgage Loan Servicing(“VMLS”), is liable for monetary losses following the use of an improper bank account number. THDA and VMLS contend that they are protected by sovereign immunity and filed a motion to dismiss. The trial court denied the motion because it found THDA was engaged in commercial activities. THDA and VMLS appealed. We reverse.