Tennessee courts, if they follow the law, which they usually do, are very disinclined to make a party do something or to make a party refrain from doing something until the usual legal processes which occur after a lawsuit has been filed have taken place. The usual processes, which typically…
Articles Posted in Business Litigation
Breach of Contract Cases: When Does Tennessee Law Apply?
As much as any other area of the law, the common law related to contractual rights and to breach of contract cases seems to be generally pretty consistent from state to state, but there can be differences. Sometimes, those differences might make a critical difference in a breach of contract…
Supreme Court of Tennessee Adopts New Standard for Determining Whether a Claim is Direct or Derivative
Generally speaking, a shareholder of a corporation or a member of an LLC has no individual right against a third party for an injury done to the corporation or LLC. While injuries done to corporations and LLCs most always have a direct monetary impact on owners, still, such claims belong…
“As Is” Contracts and the Mutual Mistake Defense
Tennessee breach of contract cases can sometimes be defended successfully by asserting the defense of mutual mistake. Here is a hypothetical example of a case in which the defense of mutual mistake would squarely apply: Seller sells a residential lot to Buyer. At the time Buyer and Seller sign their…
Using the Doctrine of Equitable Estoppel to Defeat a Statute of Limitations Defense
In Tennessee breach of contract cases, the defense of the statute of limitations is raised with some frequency. Most of the time that it is asserted as an affirmative defense, it will not defeat the plaintiff’s claim. It is one of the affirmative defenses which lawyers insert reflexively into their…
Using Quantum Meruit to Recover in Tennessee
In many, if not just about every, breach of contract case filed in Tennessee, the plaintiff will include a quantum meruit claim with his, her or its breach of contract cause of action. Why is that done? What is a quantum meruit claim? Quantum meruit is a legal cause of…
Litigating Contracts with “No Oral Modification” Clauses
Many breach of contract cases in Tennessee involve written contracts which contain what I refer to as “no oral modification clauses.” Although the language of these types of clauses differs, they usually say something like this: “This Agreement may not be amended, modified, changed or extended except by a written…
Business Court Ruling Expands Fiduciary Duties of LLC Members
A recent ruling from the Davidson County, Tennessee Business Court in a breach of fiduciary duty case has expanded the scope of fiduciary duties owed by LLC members to other LLC members. Under Tennessee law, it is, and has been for many years, well-established that shareholders in corporations and partners…
Statutes of Limitations in Tennessee Breach of Contract Cases: An Overview of the Basics
Step One: Determining Which Statute of Limitations Applies The Six Year Statute of Limitations Applies Most of the Time Most breach of contract cases in Tennessee will be subject to the six (6) year statute of limitations codified at T.C.A. §28-3-109. There is one (1) other possible statute of limitations…
Recovering Attorney’s Fees Pursuant to a “Prevailing Party” Contractual Provision
Under Tennessee law, which follows the “American Rule,” a winning party cannot recover its attorney’s fees from the losing party. There are a couple of exceptions to that Rule. One of those exceptions is that a party can recover its attorney’s fees if there is a contractual provision whereby the…