TIMGMT Acquisitions, LLC v. 5D Development, Inc. et al.

This appeal concerns third-party claims for breach of contract filed by a real estate developer against several real estate investment companies. The trial court entered an agreed order extending the time for the third-party defendants to file a “responsive pleading.” Then, prior to the deadline for filing their responsive pleadings, the third-party defendants filed a motion to dismiss under Rule 12 of the Tennessee Rules of Civil Procedure. But the developer argued that the third-party defendants waived their right to file a Rule 12 motion because the agreed order only extended the deadline for “responsive pleadings.” During the hearing on the motion to dismiss, the third-party defendants asked for an award of their attorney’s fees and costs under Tennessee Code Annotated § 20-12-119(c)(1), which requires courts to “award the party or parties against whom the dismissed claims were pending at the time the successful motion to dismiss was granted the costs and reasonable and necessary attorney’s fees incurred in the proceedings as a consequence of the dismissed claims by that party or parties.” The trial court granted the motion to dismiss but held that the third-party defendants could not recover their attorney’s fees and costs under § 20-12-119(c)(1) because “the written motion to dismiss did not include a request for an award of fees or cite to the statute.” This appeal followed. We conclude that the agreed order did not constitute a waiver of the third-party defendants’ right to file a motion to dismiss and affirm the dismissal of the claims at issue. However, we conclude that the third-party defendants are entitled to an award of their costs and attorney’s fees under § 20-12-119(c)(1). Thus, we reverse and remand with instructions to award the third-party defendants their reasonable and necessary attorney fees and costs.