In Tennessee, certain kinds of contracts are not enforceable unless (1) they are in writing and (2) they are signed by the party against whom enforcement is sought (the defendant, typically). Why? Because the Tennessee Statute of Frauds says so. (Keep in mind that most contracts in Tennessee are enforceable…
The Tennessee Prompt Pay Act allows a contractor or subcontractor who has not been paid to recover, in addition to the amount owed under its contract, an award of attorneys’ fees (and interest). The recovery of attorneys’ fees is not automatic, but depends on convincing the judge or jury that…
In a recent case, the Court of Appeals of Tennessee was asked by a terminated employee (“Employee”) to rule that an agreement to arbitrate in his employment contract (Employment Agreement”) was not enforceable because arbitration would be too expensive. The court disagreed with the Employee, and affirmed the order of…
In the recent case of Ram Tool & Supply Company, Inc. v. HD Supply, the Court of Appeals of Tennessee adopted a rule which sets forth the circumstances under which a common law breach of fiduciary duty claim will be preempted by the Tennessee Uniform Trade Secrets Act (“TUTSA”). Before…
In Tennessee, contracts may be modified after they are made and after the parties have begun performing. In fact, it happens all of the time. Tennessee law allows the modification of contracts, and a modified contract is as effective as the original contract. Many Tennessee breach of contract cases result…
Members of Tennessee Limited Liability Companies (“LLCs”) have the right to file lawsuits to recover losses resulting from breaches of fiduciary duty committed by other LLC members or committed by officers or managers of the LLC. In Tennessee, if the breach of fiduciary duty caused a loss to the LLC,…
Regardless of what unfounded promises and misrepresentations are made by insurance companies and their agents about the scope or type of coverage purchased, an insured may well be able to use the principles of waiver or estoppel to hold an insurance company to its promises. This may be the case…
What are we talking about when we talk about parol evidence in breach of contract cases? Assume A and B have a written contract. A sues B for not fulfilling its obligations. The case of A v. B goes to trial. Any evidence at trial about the negotiations, discussions or…
Most business people I know are too busy to read their insurance policies. So, they rely on their insurance agents to make sure that they buy the kind of insurance coverage which they need. Insurance agents and insurance companies are quite capable of miscommunicating and making mistakes. So, sometimes, insureds…
The “first material breach” rule has become an almost knee jerk response as a defense in breach of contract cases. Under that rule, a party who commits a material breach of a contract cannot recover damages from the other party for the other party’s later material breach of the same…