James W. Grubb Et Al. v. Joe D. Grubb Et Al.

This appeal concerns the end of a business relationship between two brothers, Joe D. Grubb (“Joe”) and James W. Grubb (“Jim”).2 After many years of working together in the cash advance and rent-to-own businesses, Jim sued Joe in the Chancery Court for McMinn County (“the Trial Court”), asserting breach of contract, intentional interference with business relationships, breach of fiduciary duty, and equitable relief under the LLC dissolution statute. Joe sued Jim in turn. One of the chief issues concerned Jim’s claim to equal compensation from the brothers’ businesses based on an alleged express oral agreement with Joe. After a trial, the Trial Court found in favor of Jim, awarding him damages based on multiple grounds. Centrally, the Trial Court found that an express oral agreement between Jim and Joe provided for equal compensation, even though Jim testified that the alleged agreement was “unspoken” and “just the way it’s been.” Joe appeals. We hold, inter alia, that notwithstanding the Trial Court’s factual findings and credibility determinations in favor of Jim, what Jim testified to did not constitute an express oral agreement or any other kind of contract as a matter of law. Jim’s alternative theories for relief are unavailing as well. We reverse.