Anil Construction, Inc. v. Patrick D. McCollum, Individually and d/b/a Pat's Custom Cabinets

CourtCourt of Appeals of Tennessee
DecidedAugust 7, 2014
DocketW2013-01447-COA-R3-CV
StatusPublished

This text of Anil Construction, Inc. v. Patrick D. McCollum, Individually and d/b/a Pat's Custom Cabinets (Anil Construction, Inc. v. Patrick D. McCollum, Individually and d/b/a Pat's Custom Cabinets) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anil Construction, Inc. v. Patrick D. McCollum, Individually and d/b/a Pat's Custom Cabinets, (Tenn. Ct. App. 2014).

Opinion

IN THE COURT OF APPEALS OF TENNESSEE AT JACKSON April 22, 2014 Session

ANIL CONSTRUCTION, INC. v. PATRICK D. McCOLLUM, INDIVIDUALLY AND D/B/A/ PAT’S CUSTOM CABINETS

An Appeal from the Chancery Court for Madison County No. 67465 William B. Acree, Jr., Chancellor

No. W2013-01447-COA-R3-CV - Filed August 7, 2014

This appeal involves an alleged breach of a construction contract. The plaintiff general contractor hired the defendant subcontractor to build cabinetry for a new movie theater. The work was to be completed by the time the movie theater opened. At the time of the opening, some items regarding the cabinets remained undone, and the contractor refused to pay until the work was completed. The general contractor filed this lawsuit for breach of contract for failure to complete the project in a timely manner and for defective work, and the defendant subcontractor filed a counterclaim for breach of contract for failure to pay under the contract. The trial court held in favor of the subcontractor and awarded damages. The general contractor now appeals. We vacate the trial court’s judgment and remand the matter for findings of fact and conclusions of law as required under Tennessee Rule of Civil Procedure 52.01.

Tenn. Rule App. P. 3 Appeal as of Right; Judgment of the Chancery Court is Vacated and Remanded

H OLLY M. K IRBY, J., delivered the opinion of the Court, in which A LAN E. H IGHERS, P.J., W.S., and J. S TEVEN S TAFFORD, J., joined.

Adam M. Nahmias, Memphis, Tennessee, for the Plaintiff/Appellant, Anil Construction, Inc.

Jon A. York, Jackson, Tennessee, for the Defendant/Appellee, Patrick D. McCollum, Individually and d/b/a Pat’s Custom Cabinets OPINION

F ACTS AND P ROCEEDINGS B ELOW

Ambarish Keshani is in the business of managing movie theaters. He uses his own construction company, Plaintiff/Appellant Anil Construction, Inc. (“Anil Construction”), to build the movie theaters he manages.

Mr. Keshani, through Anil Construction, began construction on a new movie theater in Jackson, Tennessee, the Cinema Planet 10 (“Cinema 10”). On April 13, 2010, Anil Construction executed a contract with subcontractor Defendant/Appellee Patrick McCollum, d/b/a Pat’s Custom Cabinets (“Mr. McCollum”), for Mr. McCollum to build all of the cabinetry for the Cinema 10. The contract detailed the seven specific areas in Cinema 10 where Mr. McCollum was to install cabinets. In return, the parties agreed, Anil Construction would pay Mr. McCollum a total contract price of $44,650 — half ($22,325) upon execution of the contract, and the other half 15 days after completion of the cabinet project. The contract describes the cabinet work as a “turn-key” job, that is, both parties anticipated that the subcontractor would complete the entire project. The contract also stated that the job needed to be completed by the scheduled opening of the theater in June 2010, and that time was of the essence:

Opening of [the] movie theatre in June, 2010 (Tentative date being June 11 but could move one or two weeks) is critical to Anil Construction Inc and Pat’s Cabinet understands that clearly and agrees to accommodate Anil Construction as needed. . . . Time is of an essence.

As is often the case, things did not go as planned. The Cinema 10 opening did not occur in June 2010 as stated in the contract. For reasons that are disputed in the record, the opening was delayed until October 1, 2010. Moreover, the cabinets were not completed by the delayed October 1, 2010 opening. The record contains various email communications between the parties regarding the delay. In many of them, Mr. Keshani is urging Mr. McCollum to complete the job; in others, Mr. McCollum is pressing Mr. Keshani to pay him the balance owed on the contract. Mr. Keshani asserted that the delays in completion were caused by Mr. McCollum. Mr. McCollum in turn maintained that the delays were caused by factors outside of his control. Mr. McCollum would later testify at trial that the cabinetry work was installed and in use by October 12, 2010.

In November 2010, Mr. Keshani sent emails to Mr. McCollum accusing him of taking items from the Cinema 10 that he was not authorized to take. Mr. Keshani’s emails also listed 15 items regarding the cabinetry that were allegedly incomplete. He forbade Mr. McCollum

-2- from going onto the theater property without arranging it in advance in writing with Mr. Keshani personally. Mr. Keshani told Mr. McCollum that he did not consider the job to be complete until all of the listed items were done, and he made it clear that he would not pay the balance of the contracted fee until all of them were resolved.

In an effort to address their disagreement, Mr. Keshani and Mr. McCollum had a face-to-face meeting on November 23, 2010. It did not go well. Mr. Keshani emphasized the items that still needed to be resolved, and Mr. McCollum insisted on getting payment from Mr. Keshani. According to Mr. Keshani, the meeting culminated in Mr. McCollum threatening him with bodily harm.

After that, both sides threatened legal action. On December 1, 2010, Mr. Keshani emailed Mr. McCollum that he would pay Mr. McCollum the contract balance “[o]nce you complete all of the remaining items.” The email added: “This is my final attempt before proceeding with legal action . . . .” Two days later, Mr. McCollum’s attorney sent Mr. Keshani a letter demanding payment under the contract for work completed. If Mr. Keshani failed to respond by December 24, 2010, the letter said, Mr. McCollum would pursue legal action.

On December 16, 2010, Anil Construction filed this lawsuit against Mr. McCollum, individually and d/b/a Pat’s Custom Cabinets, in the Chancery Court for Madison County, Tennessee. The complaint alleged breach of contract for failing to complete the cabinets in a timely and workmanlike manner, and sought damages “in an amount to be proven at trial.” Mr. McCollum responded by filing a counterclaim for the balance due under the contract. This prompted numerous affirmative defenses. Anil Construction’s initial answer to the counterclaim asserted the affirmative defense of first-to-breach, claiming that Mr. McCollum was barred from recovery because he first breached the contract. Anil Construction later amended its answer to the counterclaim to include the affirmative defenses of set-off, recoupment, and duress. Discovery ensued.

On March 11, 2013, the trial court conducted a bench trial. It heard testimony from Mr. Keshani, an expert witness on construction, and Mr. McCollum.

Mr. Keshani testified at the outset. He said that, in the beginning of the Cinema 10 project, he worked primarily with Mr. McCollum’s employee, Jimmy Lloyd. Mr. Lloyd assured Mr. Keshani that the cabinets would be completed and ready to install by the end of July 2010. This proved not to be true. The delay with the cabinets, Mr. Keshani said, kept other trades from completing their portions of the movie theater project, such as the electric work, the tiling, and the plumbing.

-3- Mr. Keshani testified that, on August 20, 2010, he emailed Mr. McCollum to relay his concern about the continued delays. The email stressed that Mr. McCollum’s tardiness in completing the cabinetry was “causing serious delays in our opening.” In his response, Mr. McCollum asked for certain information from Mr. Keshani, but assured Mr. Keshani that he would continue to work on the cabinetry “in full force until completed.” Shortly after that, on August 23, 2010, the parties signed a “Memorandum of Understanding” that outlined minor changes to the contract and, consistent with Mr. McCollum’s email, said that Mr. McCollum would “put full force to complete the job.” At that time, Mr. Keshani testified, the Cinema 10 was ready for installation of the cabinets. Despite all of this, Mr. McCollum did not complete the cabinets.

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Anil Construction, Inc. v. Patrick D. McCollum, Individually and d/b/a Pat's Custom Cabinets, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anil-construction-inc-v-patrick-d-mccollum-individually-and-dba-tennctapp-2014.