In a recent breach of contract case, In re Estate of John E. Mayfield, the Court of Appeals of Tennessee reversed the decision of the trial court which had held that a contract for the sale of a storage facility was unenforceable because there was no mutual assent of the…
Tennessee Business Litigation Lawyers Blog
New Opinion and New Law on Economic Loss Doctrine in Tennessee
The economic loss doctrine prohibits a party, which is seeking only damages for economic loss, from recovering those damages pursuant to a tort cause of action. Under the doctrine, economic losses are the damages suffered by a party, other than damages for personal injury or property damage to “other” property. …
Sales Commissions Denied Where Employee “Procured” Business, but Did Not “Develop” It
The United States District Court for the Northern District of Tennessee decided against a former employee in a breach of contract case for failure to pay sales commissions on the grounds that he was required to do more than just connect the new customer with his employer (“Employer”). It should…
First Material Breach Defense Fails in Tennessee Commission Case
With some frequency, we see the first material breach defense raised in cases where a sales representative is owed commissions. After placing the account, the party with whom it was placed desires to keep the revenue, but resents continuing to pay the agreed commissions. So, it alleges that it should…
General Contractors’ Liability to Subcontractors for Delay Under Tennessee Law
With some frequency, subcontractors incur extra expense, or lose other opportunities to make money, because another subcontractor did not complete its work within the time by which it was represented it would be completed. There are situations in which it is possible that the general contractor might be responsible for…
When Might a General Contractor’s Commercial General Liability Policy Provide Coverage for Defective Work?
General contractors typically have commercial general liability policies (“CGLs”). (CGL policies are not the same as performance bonds, which might also be in place for a particular construction job.) In my experience, the key provisions of most CGL policies are identical or are substantially similar. In fact, one task of…
Recent Tennessee Partition Case: Court Finds Ouster and Entitlement to Rent
A recent opinion of the Court of Appeals of Tennessee provides a good roadmap of the law for joint owners of land involved in partition cases where there are claims that the proceeds from the sale of the property should not be divided equally because of rental value received by…
Supreme Court of Tennessee Issues Opinion Related to Joint Bank Accounts
In a recent opinion in a breach of contract case brought against a Bank by a joint account owner, the Supreme Court of Tennessee overruled two lower courts which had decided in favor of the Bank. For owners of joint bank accounts, often referred to as “joint tenants,” the Court’s…
Tennessee Business Court Pierces Veil of Limited Partnership in Case of First Impression
Pepper Law, PLC was recently successful in having the Business Court, located in Davidson County, pierce the veil of a limited partnership to hold the limited partner personally liable for a judgment rendered years earlier against the limited partnership. No Tennessee appellate court has yet addressed whether or not the…
What Amounts to a Trade Secret Under the Tennessee Uniform Trade Secrets Act?
Often, in trade secrets cases, a pivotal issue is whether or not what the plaintiff claims is a trade secret is, in fact, a trade secret under the Tennessee Uniform Trade Secrets Act (“TUTSA”). TUTSA’s definition of “trade secrets” includes “information” which is “technical, nontechnical, or financial data, a formula,…