In a breach of contract case recently decided by the Supreme Court of Tennessee, Dick Broadcasting v. Oak Ridge FM, Inc., the Court held that the implied duty of good faith and fair dealing applied to a contract provision which allowed a party to assign it rights under the contract…
Articles Posted in Business Litigation
Tennessee Case Proves that Real Estate Commission Can be Recovered Even Without a Contract
The Court of Appeals of Tennessee, in the case of Rocky Top Realty, Inc. v. Young, issued an opinion that is a good reminder that, under Tennessee law, you don’t necessarily have to prove a breach of a contract to recover money you are owed for services (or goods). The…
Tennessee Law: A Contractor’s Right to Recover Amounts in Excess of Monetary Limit of Contractor’s License
In a case involving a breach of a construction contract for a development in Gallatin, Tennessee, a contractor was allowed to recover money for work done, which work substantially exceeded the monetary limit of the contractor’s license. This decision is very significant, and favorable for Tennessee contractors and subcontractors. The…
Tennessee Law Regarding an Insurance Company’s Right to Deny Benefits for Misrepresentation
In a recent Tennessee case, the beneficiary of a life insurance policy prevailed over the insurance company which denied coverage under the policy at issue based on alleged misrepresentations by the insured in the application for the policy. The case discusses some basic law that is applicable in Tennessee when…
Lessons About Tennessee Bad Faith Insurance Law
Tennessee has a statute, which, provided certain conditions are met, allows an insured to recover “bad faith” damages against the insured’s insurance company. The United States Court of Appeals for the Sixth Circuit, which is the federal appeals court with jurisdiction over federal cases tried in Tennessee (and several other…
Tennessee Court Allows Lost Profits Resulting from Damage to Truck Tractor
In a recent lost profits case decided by the Court of Appeals of Tennessee, DBK Trucking Co., LLC v. JNJ Express, Inc., that court held that the owner of a 1998 Kenworth tractor could recover the profits it was not able to earn because of the damage to the tractor…
Contractor’s Lawsuit Against Subcontractor Barred by Tennessee Statute of Repose
In Tennessee, there are two types of statutes that might bar an otherwise meritorious claim: (1) statutes of limitation; and (2) statutes of repose. A construction defect case may be filed within the statute of limitation, but, nevertheless, be barred by the statute of repose which establishes an outer limit…
“Time Is Of The Essence” Clauses And Their Effect On Real Estate Contracts In Tennessee
Many real estate contracts, and other contracts, which are entered into in Tennessee and governed by Tennessee law, contain “time is of the essence” clauses. What difference do such clauses make in Tennessee contracts? A recent decision of the Tennessee Court of Appeals demonstrates how such a clause can make…
Tennessee Member-Managed Limited Liability Companies: Liability Of Members To Other Members And/Or The LLC
This blog addresses Tennessee law regarding the liability of members of Tennessee limited liability companies to other members and/or to the LLC itself. In 1994, the “Tennessee Limited Liability Company Act” became law in Tennessee. In 2005, the “Tennessee Revised Limited Liability Company Act” became law. The Revised Act added…
Changing Insurance Policy Beneficiaries In Violation Of Marital Dissolution Agreements: What Tennessee Courts Have To Say
Frequently, as part of a divorce, a spouse is required to maintain life insurance for the benefit of the other spouse or for children. In our practice, we have been involved in several cases where, in spite of a requirement in a divorce decree or marital dissolution agreement, a spouse…