For a former employee or contractor who has signed a non-competition agreement, the threshold question is quite often this: Is the non-compete agreement enforceable or not? How Tennessee courts treat non-compete agreements varies by court and by the unique facts of each case. In my experience, there is quite a…
Tennessee Business Litigation Lawyers Blog
Understanding the Effects of the Tennessee Uniform Simultaneous Death Act
Spouses, children and parents, or other persons, who may be heirs of each other, sometimes die because of common accidents or disasters. As well, even in the absence of a common disaster or accident, sometimes spouses die within a short time of each other. When those tragic events or nearly…
Figuring Fair Market Value in Tennessee Condemnation Cases: Expert Witnesses Cannot Use Highest and Best Use Approach to Valuation
In condemnation cases, it is understandable that a landowner would want a jury to be able to consider the value of the landowner’s property based on its highest and best use. For example, if the landowner’s property is uniquely situated such that a party wanting to construct a hotel on…
Understanding the Bad Faith Failure to Pay Penalty in Tennessee Insurance Cases
Under Tennessee law, if an insurance company denies a claim, it can be subject to a bad faith failure to pay penalty. The maximum amount of the penalty is 25% of the claim amount which the insurance company should have paid. Moreover, the penalty does not apply unless the refusal…
When Checks or Payments are Designated “Paid in Full”: Accord and Satisfaction Law in Tennessee
It happens with some frequency in Tennessee that a check is written and notated “paid in full” or “payment in full.” Sometimes, if a check is not written “paid in full,” the business which owes the debt may send an accompanying letter stating that the payment is for the full…
Basic Rules in Tennessee Regarding Auction Sales of Real Estate
When real estate is sold at auction in Tennessee, what rights do the seller and highest bidder have after the hammer falls? Can the seller back out of the sale? What are the chances that the highest bidder can win a case for specific performance if the seller tries to…
Rights of “Children” Who are Not Formally Adopted to Probate and Non-Probate Assets in Tennessee
It happens that marriages occur, but children of one of the marrying spouses are not adopted by the other spouse. It also happens that these children are treated by the non-adopting spouse just like his or her own children despite never being formally adopted. So, what are the rights of…
Sixth Circuit Issues Notably Flawed Opinion in Sales Commission Case
For salesmen and manufacturers representatives who are owed commissions, a recent decision of the Court of Appeals for the Sixth Circuit in a breach of contract case for commissions owed is not encouraging. The analysis and application of Tennessee breach of contract law to the facts of the case by…
Business Divorces Between 50/50 Owners in Tennessee
In Tennessee, quite a few corporations and LLCs are owned equally by two parties. Frequently, the relationship between the owners sours, or worse. At some point, a “business divorce” may become necessary. If you want to keep the business, but need your co-owner out of the business, how do you…
Overcoming Dishonest or Criminal Acts Exclusions in Insurance Policies
Many Tennessee businesses have commercial general liability policies, and many other types of policies and endorsements, which contain exclusions for any loss resulting from dishonest or criminal acts. These exclusions will most likely apply to employees, partners and directors of the business. Sometimes, in insurance policy litigation, there is no…