BOP, LLC, Et Al. v. Plastic Surgery Of Nashville, P.C., Et Al.

This appeal arises from a complaint for breach of a commercial lease agreement brought by the landlord to recover damages from the tenant and its guarantor. The tenant admitted breaching the lease but asserted that the landlord had been made whole prior to the commencement of this action and was not entitled to an award of damages. The tenant also asserted a counterclaim for attorney’s fees as authorized by the lease. The trial was bifurcated. A jury determined that the landlord was not entitled to recover any damages because the landlord recovered its damages in full in a previous proceeding in general sessions court, the landlord failed to mitigate its damages, and its claims were barred by res judicata. Following a bench trial on the parties’ competing claims to recover attorney’s fees and costs pursuant to the lease agreement, the court determined that the tenant and guarantor were entitled to recover their attorney’s fees and costs as the prevailing parties. The landlord appeals. We affirm the court’s decision in all respects. Because the lease agreement states the prevailing party in any action, or appeal thereon, shall be entitled to its reasonable attorney’s fees and court costs and Defendants prevailed on all issues on appeal, we remand with instructions for the trial court to award Defendants the reasonable and necessary attorney’s fees and costs they incurred in this appeal.