Local TV Tennessee, LLC d/b/a WREG-TV v. N.Y.S.E. Wolfchase, LLC d/b/a The New York Suit Exchange

This is a breach of contract action in which both parties assert affirmative claims. Plaintiff, a Memphis TV station, sued one of its advertisers for breach of an advertising agreement to recover approximately $511,000 for past advertising services. Defendant Advertiser filed a counterclaim under the Tennessee Consumer Protection Act, for constructive fraud, and for breach of contract. The trial court granted judgment on the pleadings with respect to the breach of contract claim in favor of Plaintiff and awarded damages of $510,000. Subsequently, the trial court granted Plaintiff’s Motion to Dismiss Defendant’s Second Amended Counter-Complaint in its entirety, finding that Defendant failed to state any claims upon which relief could be granted. Defendant appealed. We have concluded that Defendant’s Answer constituted a denial that Defendant owed approximately $511,000 in unpaid advertising fees; therefore, Plaintiff’s Motion for Judgment on the Pleadings should have been denied. We affirm the trial court’s dismissal of Defendant’s claims for constructive fraud; however, we have determined that the factual allegations in the Second Amended Counter-Complaint are sufficient to state claims for breach of contract, and claims under the Tennessee Consumer Protection Act. Therefore, we reverse the dismissal of these claims and remand for further proceedings.