Dover Signature Properties, Inc. v. Customer Service Electric Supply, Inc.

The appellant, the developer of a senior living facility in Knoxville, appeals the trial court’s
determination that it breached a joint check agreement that included itself, an electrical
subcontractor, and an electrical supplier as signatories. Although the appellant had initially
denied executing the joint check agreement and had expressed a lack of awareness of the
electrical supplier’s involvement with the subcontractor and senior living project, it
ultimately acknowledged during litigation that its controller had signed the joint check
agreement and that the supplier’s materials were incorporated into the project. The proof
at trial revealed that, notwithstanding its execution of the joint check agreement, the
appellant never issued a joint check that would assure that the supplier received payment.
Instead, the appellant paid only the subcontractor who failed to pay the supplier. Herein,
we affirm the trial court’s judgment awarding the supplier relief against the appellant.