APPELLATE COURT OPINIONS

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Penklor Properties, LLC v. Jo Ellen Buehler, et al.

W2018-00630-COA-R3-CV

Appellant Mid South Title Services, LLC agreed to act as escrow agent for a real estate transaction in which Appellee Penklor Properties, LLC was the buyer. Appellee tendered earnest money, which, under the Purchase and Sale Agreement, was to be held by Appellant unless and until the parties to the Purchase and Sale Agreement submitted a signed written agreement changing the terms of the escrow. Very shortly after the Purchase and Sale Agreement was signed, Appellant received a purported amendment from the seller’s former attorney and real estate broker. The amendment requested that Appellant release $53,000.00 of the escrowed funds in satisfaction of the attorney/broker’s “former legal fees.” Without inquiring further, Appellant issued the requested check. Appellant later discovered that the amendment was not, in fact, authorized by the parties to the Purchase and Sale Agreement. Appellee filed suit against Appellant for breach of contract and breach of fiduciary duty, and the trial court entered judgment against Appellant. Appellant appeals. We affirm.

Authoring Judge: Judge Kenny Armstrong
Originating Judge:Chancellor Jim Kyle
Shelby County Court of Appeals 03/25/19
John Gunn Et Al. v. Jefferson County Economic Development Oversight Committee, Inc.

E2018-01345-COA-R3-CV

Because appellants’ notice of appeal was filed more than thirty days following the trial court’s final, appealable judgment, we dismiss this appeal for lack of subject matter jurisdiction.

Authoring Judge: Judge J. Steven Stafford, P.J., W.S.
Originating Judge:Judge Don R. Ash, Senior Judge
Jefferson County Court of Appeals 03/25/19
Christy Keller Elrod Church v. Darrell Gene Elrod

M2018-01064-COA-R3-CV

In this post-divorce petition to modify, the Appellant (former Husband) contends that the trial court erred in concluding that his obligation to provide life insurance for the benefit of Appellee (former Wife) was part of a property settlement and therefore not subject to modification.  The trial court’s order included an upward deviation for support of the parties’ youngest child for the twelve month period prior to her emancipation.  The trial court also ordered Appellant to pay college tuition equal to that of the University of Tennessee at Knoxville without providing any allowance for scholarships and sponsor fees received by the parties’ daughter.  The trial court further found that Appellant was not guilty of civil contempt for failure to make payments into Appellee’s retirement account under the terms of the parties’ Agreed Order of Legal Separation (AOLS).  However, the trial court refused to relieve Appellant of his obligation to continue funding Appellee’s retirement account at the same level as he funds his own retirement account.  We conclude from our review that the life insurance policy obligation constitutes spousal support, which is subject to modification.  We vacate the trial court’s judgment concerning college tuition and hold that Appellant is obligated to pay the cost of tuition and books, less scholarships and sponsor fees received by the parties’ daughter.  All other aspects of the trial court’s order are affirmed.  Accordingly, we affirm in part, reverse in part, and remand for further proceedings in accordance with this opinion.

Authoring Judge: Judge Kenny Armstrong
Originating Judge:Judge Deanna B. Johnson
Williamson County Court of Appeals 03/25/19
Ernest Ray Laning et al. v. Johnny Lawrence et al.

E2017-02479-COA-R3-CV

This case arises out of a dispute involving conflicting claims to the charter of a local affiliate of a national veteran’s service organization, the ownership of real property held by the local affiliate, and the right to manage a clubroom being operated on the property. The appellants, plaintiffs in the trial court, seek review of an order setting aside the deed upon which their claim to ownership derives and dismissing their claim for damages. Finding no error, we affirm the judgment.

Authoring Judge: Judge Richard H. Dinkins
Originating Judge:Chancellor Douglas T. Jenkins
Hamblen County Court of Appeals 03/22/19
In Re: Cynthia P. Et Al.

E2018-01937-COA-R3-PT

In this parental termination case, the juvenile court found four statutory grounds for termination of a mother’s parental rights and that termination of parental rights was in her children’s best interest. We conclude that the record contains clear and convincing evidence to support all four grounds for termination of parental rights and that termination of parental rights is in the children’s best interest. So we affirm.

Authoring Judge: Judge W. Neal McBrayer
Originating Judge:Judge Janice Hope Snider
Hamblen County Court of Appeals 03/22/19
Rebecca M. Little v. The City Of Chattanooga, Tennessee

E2018-00870-COA-R3-CV

Plaintiff appeals the dismissal of her complaint, which ostensibly alleged declaratory judgment, inverse condemnation, and due process violations. We vacate the dismissal of Plaintiff’s procedural due process claim because that claim was not actually addressed in the trial court’s order of dismissal. The trial court’s judgment is affirmed in all other respects

Authoring Judge: Judge J. Steven Stafford, P.J., W.S.
Originating Judge:Judge Pamela A. Fleenor
Hamilton County Court of Appeals 03/21/19
Candance Gooch Spight v. Deangelo M. Spight

W2018-00666-COA-R3-CV

This is an appeal from a final decree of divorce. Father/Appellant appeals the trial court’s ruling regarding retroactive child support. The appellate record contains no transcript or statement of the evidence for our review as required by the Tennessee Rules of Appellate Procedure. However, the trial court’s order contains an inconsistency regarding the amount of the retroactive child support award. Specifically, the amount of arrears ordered does not comport with the accrual date for arrears listed in the trial court’s order. Because there are no findings, to resolve the inconsistency, we vacate the trial court’s award of retroactive child support. The trial court’s order is otherwise affirmed.

Authoring Judge: Judge Kenny Armstrong
Originating Judge:Chancellor James F. Butler
Madison County Court of Appeals 03/21/19
United Supreme Council AASR SJ, et al v. Fredrick McWilliams, et al

W2018-00116-COA-R3-CV

This appeal concerns a derivative action brought on behalf of a non-profit corporation. Citing alleged embezzlement and misappropriation of funds by the directors, plaintiffs, members of the non-profit at the time of filing, brought a derivative action on behalf of the fraternal and charitable organization. After filing the derivative suit, plaintiffs established and became members of a competing organization. Pursuant to the original organization’s constitution, this caused the plaintiffs to surrender all their membership rights in the original organization. Defendants moved for summary judgment based on plaintiffs’ lack of standing to maintain the derivative action pursuant to Tennessee Rule of Civil Procedure 23.06. The trial court granted the motion, dismissing all of plaintiffs’ claims against defendants, holding that plaintiffs could not fairly and adequately represent the interest of the organization’s remaining members because they themselves were no longer members and because of the conflict of interest inherent in their establishment of the competing organization. We affirm.

Authoring Judge: Judge Arnold B. Goldin
Originating Judge:Chancellor Jim Kyle
Shelby County Court of Appeals 03/21/19
In Re: Conservatorship of Gloriadean S. Porter, et al

W2016-00693-COA-R3-CV

This action concerns the closing of two estates and a conservatorship. A beneficiary appeals the court’s award of attorney fees and expenses to the attorney of record and the subsequent denial of his motion to continue the settlement of the estates. We affirm.

Authoring Judge: Judge John W. McClarty
Originating Judge:Judge Karen D. Webster
Shelby County Court of Appeals 03/21/19
Larry Beckwith, Et Al. v. LBMC, P.C. Et Al.

M2017-00972-COA-R3-CV

A business retained a professional accounting firm to value its common stock and stock options. Almost four years after the requested valuation report was provided, the president of the business claimed that one of the firm’s accountants had disclosed confidential information about the valuation to a third party. The president and the accounting firm entered a tolling agreement for his individual claim. But after attempts to resolve the dispute failed, the president and the business filed a complaint against the accounting firm for breach of contract, accounting malpractice, and breach of fiduciary duty. The accounting firm moved for summary judgment, claiming the suit was barred by the statute of limitations. Applying the one-year statute of limitations for accounting malpractice actions and concluding that the tolling agreement established a filing deadline for the president, the trial court ruled that the plaintiffs’ claims were untimely. Upon review, we conclude that the tolling agreement paused the running of the statute of limitations on the president’s confidentiality claim. So we vacate the dismissal of the president’s confidentiality claim. We affirm the judgment of the trial court in all other respects.   

Authoring Judge: Judge W. Neal McBrayer
Originating Judge:Judge Michael Binkley
Williamson County Court of Appeals 03/21/19
Jack V. DeLany, ET AL. v. Martin R. Kriger, ET AL.

W2018-01229-COA-R3-CV

Owners of a cat filed a wrongful death complaint against the cat’s veterinarian and animal hospital. The defendants admitted liability for wrongly placing a feeding tube into the cat’s trachea rather than her esophagus, causing the cat to aspirate and die when she was fed through the tube. The trial court found the defendants were not liable because the cat was so ill she likely would not have survived long anyway, and it dismissed the complaint. We reverse the trial court’s judgment and remand the case for a determination of damages.

Authoring Judge: Judge Andy D. Bennett
Originating Judge:Judge Mary L. Wagner
Shelby County Court of Appeals 03/20/19
Leah Keirsey v. K-VA-T Food Stores Inc.

E2018-01213-COA-R3-CV

This matter involves the grant of summary judgment to defendant, K-VA-T Food Stores Inc. (Food City), in a slip and fall case. Plaintiff, Leah Keirsey, filed an action alleging that, on a rainy day, defendant negligently maintained its premises and failed to warn her of hazardous conditions. Defendant moved for summary judgment arguing that it exercised reasonable care to prevent injury to its customers and warned them of potentially wet conditions; its motion was granted. Plaintiff appeals. We affirm.

Authoring Judge: Judge Charles D. Susano, Jr.
Originating Judge:Judge Alex E. Pearson
Hamblen County Court of Appeals 03/20/19
Vic Davis Construction, Inc. v. Lauren Engineers & Constructors, Inc.

E2017-00844-COA-R3-CV

A subcontractor brought suit against the general contractor for breach of contract and violations of the Prompt Pay Act. The subcontractor sought both damages, including punitive damages, and reformation of the subcontract based on fraud or mutual mistake. The general contractor counterclaimed for breach of contract. Upon the parties’ agreement, the trial court reformed the subcontract based on mutual mistake. The trial court also granted the general contractor summary judgment on the subcontractor’s claims for fraud and punitive damages. Then, following a bench trial, the court awarded a judgment to the subcontractor on its breach of contract claim and dismissed the general contractor’s counterclaim. The court declined to award the subcontractor a statutory penalty or attorney’s fees under the Prompt Pay Act. We affirm the trial court.

Authoring Judge: Judge W. Neal McBrayer
Originating Judge:Judge Douglas T. Jenkins
Hawkins County Court of Appeals 03/20/19
Stephen Teague Et Al. v. Shane Bruce

E2018-02104-COA-R3-CV

This is an appeal from a final order granting the petition, filed by the appellees, Stephen Teague, M.D., Mark Rasnake, M.D., University Infectious Disease, Lori Staudenmaier, D.O., and UT Family Physicians LaFollette, which sought a permanent restraining order against the appellant, Shane Bruce. The final order denying the pro se appellant’s motion to set aside the judgment, which the Trial Court treated as a motion for new trial, was entered on January 22, 2018. The appellant did not file his Notice of Appeal until November 21, 2018, more than thirty (30) days from the date of entry of the final order. The appellees filed a motion to dismiss this appeal arguing that the Notice of Appeal was not timely filed. We conclude that the appellees’ motion is well-taken and that we have no jurisdiction to consider this appeal.

Authoring Judge: Per Curiam
Originating Judge:Judge John D. McAfee
Campbell County Court of Appeals 03/18/19
Tiffany "Whitaker" Kramer v. Phillip John Kramer

E2018-00736-COA-R3-CV

In this appeal, the wife challenges the trial court’s division of the marital assets and liabilities. We find no error and affirm the judgment of the trial court.

Authoring Judge: Judge John W. McClarty
Originating Judge:Judge Telford E. Forgerty, Jr.
Blount County Court of Appeals 03/18/19
Angela Charlene Iveson v. Jeffrey Wayne Iveson

M2018-01031-COA-R3-CV

This appeal concerns a post-divorce effort to modify a residential parenting schedule. Angela Charlene Iveson (“Mother”) filed a petition against ex-husband Jeffrey Wayne Iveson (“Father”) in the Chancery Court for Sumner County (“the Trial Court”) seeking to modify the permanent parenting plan applicable to their minor daughter (“the Child”). The petition proceeded to a bench trial. Afterward, the Trial Court entered an order reducing and restricting Father’s parenting time as well as increasing his child support obligation. Father appeals to this Court, arguing, among other things, that the restrictions placed upon his parenting time are unwarranted and that the Trial Court erred by using his income for the most recent one year rather than a three year average of his income for child support purposes. We find that the Trial Court’s decisions with respect to these discretionary issues have a sufficient evidentiary basis and are consistent with applicable law. Thus, the Trial Court did not abuse its discretion. We, therefore, affirm the judgment of the Trial Court.

Authoring Judge: Chief Judge D. Michael Swiney
Originating Judge:Chancellor Louis W. Oliver
Sumner County Court of Appeals 03/18/19
Enhanceworks, Inc. v. Dropbox, Inc.

M2018-01227-COA-R3-CV

This appeal involves the issue of personal jurisdiction over Appellee, a Delaware corporation with its principal place of business in San Francisco, California. The trial court, on Appellee’s Tennessee Rule of Civil Procedure 12.02(2) motion to dismiss for lack of personal jurisdiction, decided it lacked personal jurisdiction and dismissed the case. Appellant appeals. Discerning no error, we affirm and remand.

Authoring Judge: Judge Kenny Armstrong
Originating Judge:Judge Joseph p. Binkley, Jr.
Davidson County Court of Appeals 03/14/19
Sallie Lunn Tarver v. John Taylor Tarver, et al.

W2017-01556-COA-R3-CV

This appeal involves a unique divorce proceeding. Throughout most of the parties’ 29-year marriage, the husband worked as vice president of his father’s railroad construction business. Numerous properties, assets, and accounts were jointly titled in the names of the husband and his father over the years. When the wife filed a complaint for divorce, she named as defendants not only the husband but also his father. Shortly thereafter, the husband’s father drastically reduced the amount of money the husband was receiving from the company. The divorce trial was conducted over the course of twelve days. The trial court classified some of the disputed assets as belonging solely to the husband’s father. It found that the husband had an ownership interest in other property and included it in the marital estate subject to equitable division. The trial court imputed income to both the husband and the wife and ordered the husband to pay alimony and child support. The parties raise various issues on appeal regarding the classification, valuation, and division of marital property, the imputation of income for purposes of alimony and child support, and the alimony award. The wife also seeks an award of attorney’s fees on appeal. For the following reasons, we affirm the trial court’s decision in all respects and deny the request for attorney’s fees on appeal.

Authoring Judge: Senior Judge Robert E. Lee Davies
Originating Judge:Judge Robert Samual Weiss
Shelby County Court of Appeals 03/13/19
State of Tennessee, Ex Rel. Herbert H. Slatery, III, Et Al. v. Volkswagen Aktiengesellschaft, Et Al.

M2018-00791-COA-R9-CV

At issue in this appeal is the breadth of federal preemption under Title II of the federal Clean Air Act, 42 U.S.C. §§ 7521 to 7590, for claims that pertain to: (1) the initial manufacture and installation of “defeat device” software in emissions control systems in automobiles, and (2) post-sale software updates of emissions control systems during manufacturer recalls. The State of Tennessee brought this action against several automobile manufacturers for violating state anti-tampering laws by tampering with the emissions control systems in more than 8,000 of their “clean diesel” vehicles that were registered and operated in Tennessee from 2008 to 2015. The manufacturers responded by filing Tenn. R. Civ. P. 12.02(6) motions to dismiss arguing that all of the claims were preempted by the federal Clean Air Act. The trial court dismissed the claims that pertained to the initial manufacture and installation of emissions control systems for automobiles as expressly preempted by Section 209(a) of the act; however, the court denied the manufacturers’ motions to dismiss the claims that pertained to the post-sale software updates of emissions control systems during manufacturer recalls. We have determined that all of the State’s claims are preempted by the federal Clean Air Act. Therefore, we affirm the dismissal of the claims related to the initial manufacture and installation of emissions control systems, reverse the decision to deny the Rule 12 motions to dismiss the post-sale software updates and installations, and remand with instructions to dismiss all claims.

Authoring Judge: Presiding Judge Frank G. Clement, Jr.
Originating Judge:Chancellor Claudia Bonnyman
Davidson County Court of Appeals 03/13/19
Country Mile, LLC, Et Al. v. Cameron Properties

M2017-01771-COA-R3-CV

Cameron Properties, LLC (“Landlord”) appeals the judgment of the Circuit Court for Williamson County (“the Trial Court”), which, inter alia, found Landlord in breach of a lease agreement with Country Mile, LLC (“Country Mile”) and awarded a judgment against Landlord of $18,037.75. Landlord raises issues, among others, regarding standing, whether Country Mile breached the lease agreement by failing to pay rent, and whether Landlord is entitled to an award of all of its attorney’s fees. We find and hold, that Country Mile, Well North, LLC, and Dean Pennington all had standing; that the Trial Court did not err in finding the tenants in breach but that Landlord had breached the lease agreement first; that the tenants proved $18,037.75 in damages from Landlord’s breach; and that pursuant to the lease agreement Landlord is entitled to an award of reasonable attorney’s fees due to the tenant’s breach. We affirm the Trial Court’s judgment.  

Authoring Judge: Chief Judge D. Michael Swiney
Originating Judge:Judge Joseph A. Woodruff
Williamson County Court of Appeals 03/13/19
Patrick Durkin v. MTown Construction, LLC

W2018-00953-COA-R3-CV

This is the second appeal from a trial court’s award in a case dealing with damage to real property. The plaintiff’s home had been damaged by a rainstorm while a construction company was in the middle of repairing the roof. The trial court entered an award in favor of the plaintiff for the reasonable costs of repair and remediation in the amount of $118,926.12 by totaling the damage estimate of the defendant’s insurance adjuster with the estimates provided by the plaintiff’s experts. While we affirm the trial court’s method of awarding damages based on the reasonable costs of repair, finding duplication in its award, we vacate the amount of the trial court’s judgment and remand the case for a new calculation of damages.

Authoring Judge: Judge Arnold B. Goldin
Originating Judge:Judge Rhynette N. Hurd
Shelby County Court of Appeals 03/13/19
State of Tennessee v. Jerome Antonio McElrath

W2015-01794-SC-R11-CD

We granted the State’s permission to appeal in this case to determine whether to adopt, as a matter of state law, the good-faith exception to the exclusionary rule set forth by the United States Supreme Court in Herring v. United States, 555 U.S. 135 (2009), and if so, whether the Herring good-faith exception permits introduction of the evidence in this case. A Union City police officer arrested the defendant without a warrant because he was on a list of individuals who had been “barred” from housing authority property. The list in question was maintained by the Union City Police Department. Upon performing a search incident to arrest, the officer seized marijuana from the defendant. Nineteen days later, the same officer arrested the defendant on the same property based on the same list and again seized marijuana from the defendant. It was later discovered that the list was incorrect and that the defendant’s name should have been removed prior to the date of his arrests. The trial court suppressed the evidence in both cases, and the Court of Criminal Appeals affirmed. The trial court and the Court of Criminal Appeals based their decisions on Tennessee’s not having yet adopted Herring’s good-faith exception. Upon discretionary review, we adopt the good-faith exception as set forth by Herring but conclude that neither of the defendant’s arrests falls within the good-faith exception. Accordingly, the judgment of the Court of Criminal Appeals is affirmed.  

Authoring Judge: Justice Roger A. Page and Chief Justice Jeffrey S. Bivins, joins
Originating Judge:Judge Jeff Parham
Obion County Court of Appeals 03/12/19
In Re: Rilyn S.

E2018-00027-COA-R3-PT

A putative father challenges the trial court’s decision to terminate his parental rights on five grounds. We find that the trial court erred in terminating the putative father’s rights for failure to support. In all other respects, we affirm the decision of the trial court.

Authoring Judge: Judge Andy D. Bennett
Originating Judge:Judge Michael S. Pemberton
Loudon County Court of Appeals 03/12/19
In Re Elizabeth H.

M2018-01464-COA-R3-PT

The mother has appealed from a final judgment terminating her parental rights. Because the mother did not file her notice of appeal within thirty days after entry of the judgment as required by Tenn. R. App. P. 4(a), we dismiss the appeal.

Authoring Judge: Presiding Judge Frank G. Clement, Jr.
Originating Judge:Chancellor Ronald Thurman
Davidson County Court of Appeals 03/11/19
George W. Brown, et al. v. Markesha C. Echols, et al.

W2018-01240-COA-R3-CV

This is a motor vehicle accident case. Following a jury trial, the Plaintiffs were awarded $250,000.00 in damages. On appeal, the Defendant challenges, among other things, the trial court’s admission of video testimony from a medical expert and the court’s decision to allow a vocational expert to testify as to loss of earning capacity damages. Because we are of the opinion that the Defendant’s evidentiary objections have merit, we vacate the jury’s verdict and the trial court’s judgment and remand for a new trial.

Authoring Judge: Judge Arnold B. Goldin
Originating Judge:Judge Valerie L. Smith
Shelby County Court of Appeals 03/11/19