BILL W. GENTRY v. CINCO RESEARCH CORPORATION

CourtCourt of Appeals of Tennessee
DecidedOctober 27, 2025
DocketE2024-01901-COA-R3-CV
StatusUnpublished

This text of BILL W. GENTRY v. CINCO RESEARCH CORPORATION (BILL W. GENTRY v. CINCO RESEARCH CORPORATION) 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
BILL W. GENTRY v. CINCO RESEARCH CORPORATION, (Tenn. Ct. App. 2025).

Opinion

10/27/2025 IN THE COURT OF APPEALS OF TENNESSEE AT KNOXVILLE Assigned on Briefs August 4, 2025

BILL W. GENTRY v. CINCO RESEARCH CORPORATION ET AL.

Appeal from the Chancery Court for Carter County No. C230207 John C. Rambo, Chancellor ___________________________________

No. E2024-01901-COA-R3-CV ___________________________________

This case originated as a breach of contract action for the sale of a business. Eventually, the parties entered into a settlement agreement in which the defendants agreed to pay $1,000,000.00 by a specified date. A few days before the deadline, the defendants attempted to gain an extension and/or renegotiate the terms. The negotiations did not result in written modification of the settlement agreement, the defendants failed to pay the agreed-upon sum by the deadline, and the plaintiff sued to enforce the settlement agreement. The trial court ruled in favor of the plaintiff, finding that there was no meeting of the minds as to modification, no written modification, and no breach of the duty of good faith and fair dealing. The defendants appeal only the claim that the plaintiff did not breach the duty of good faith and fair dealing. We affirm the decision of the trial court and award the plaintiff reasonable attorney’s fees pursuant to the settlement agreement.

Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Chancery Court Affirmed and Remanded

J. STEVEN STAFFORD, P.J., W.S., delivered the opinion of the court, in which FRANK G. CLEMENT, JR., P.J., M.S., and JOHN W. MCCLARTY, J., joined.

Mark W. McFall, Johnson City, Tennessee, William W. Sames, General Machine and Tool Co, and Cinco Research Corporation, and William Sames, Ph.D.

Danny P. Dyer, Knoxville, Tennessee, for the appellee, Michael L. Tripplett, Personal Representative of the Estate of Bill W. Gentry.

MEMORANDUM OPINION1

1 Rule 10 of the Rules of the Court of Appeals of Tennessee provides: I. FACTUAL AND PROCEDURAL HISTORY

On July 11, 2023, Plaintiff/Appellee Bill W. Gentry (“Appellee”)2 filed a complaint against Defendants/Appellants Cinco Research Corporation (“CRC”), General Machine and Tool Company (“General Machine”), and William Sames (together with CRC and General Machine, “Appellants”) in the Chancery Court for Carter County (“the trial court”). Therein, Appellee alleged that the parties entered into a contract in 2022 for Appellants to purchase General Machine, Appellee’s former company, and that Appellants breached that contract. According to Appellee, the transaction between the parties consisted of four documents: (1) a Promissory Note made by CRC in which CRC agreed to pay Appellee $1,750,000.00 to purchase General Machine; (2) a security agreement made by General Machine granting Appellee a security interest in certain collateral; (3) a stock pledge agreement made by CRC granting Appellee a lien on all the issued and outstanding common stock in General Machine; and (4) a limited guaranty of the promissory note in which Mr. Sames personally guaranteed up to $750,000.00 of the indebtedness owed by CRC to Appellee.3

The case proceeded for some time until March 28, 2024, when the parties filed a joint motion to stay, indicating that they had entered into a settlement agreement (“the Settlement Agreement”) on March 19, 2024. The motion stated that the parties’ obligations under the Settlement Agreement would be due in six months’ time; the parties therefore asked that the action be stayed pending completion of the terms of the Settlement Agreement. Relevant to this appeal, the Settlement Agreement contains provisions

This Court, with the concurrence of all judges participating in the case, may affirm, reverse or modify the actions of the trial court by memorandum opinion when a formal opinion would have no precedential value. When a case is decided by memorandum opinion it shall be designated “MEMORANDUM OPINION,” shall not be published, and shall not be cited or relied on for any reason in any unrelated case.

2 Mr. Gentry died on February 1, 2025, after the conclusion of the trial court proceedings. After a suggestion of death was filed, the personal representative of his estate was substituted as the plaintiff by this Court. For ease of reading, we simply refer to this party as Appellee throughout this Opinion. 3 These documents were filed under seal by agreement of the parties. -2- requiring all modifications to its terms to be made in writing,4 for attorney’s fees,5 and for a specific amount of damages upon default.6 On October 3, 2024, Appellee returned to the trial court and filed a motion to enforce the Settlement Agreement. Therein, Appellee alleged that Appellants failed to meet their obligation to pay $1,000,000.00 by the deadline of September 19, 2024. Appellee therefore asked that the trial court enter a judgment against CRC in the amount of $1,785,182.10 plus interest, a judgment against Mr. Sames for $750,000.00, attorney’s fees, and injunctive relief. The motion to enforce the Settlement Agreement was eventually heard on November 14, 2024. According to the statement of evidence produced in this appeal, Mr. Sames testified that he associated with Clifton Onolfo, the CEO of Global Cities Capital, LLC (“GCC”) to obtain a loan to pay the settlement amount. Mr. Sames produced an email from his attorney to Appellee’s attorney dated September 16, 2024, in which she asked for a thirty-day extension to pay the required amount (less a $20,000.00 good faith payment up front), or to come to an alternative agreement as outlined in the email. Mr. Sames testified that CRC needed an infusion of capital from GCC to pay the amount required under the Settlement Agreement, as CRC could not make the required payment. But Mr.

4 The Settlement Agreement states as follows: “13. Modification in Writing. No waiver, change or modification of this Agreement shall be valid unless the same is in writing and is signed by the party to be bound thereby.” 5 The Settlement Agreement states as follows:

8. Attorneys’ Fees, Expenses, and Costs. Should it be necessary to initiate any action to enforce the terms of this Agreement, or any action for breach of this Agreement, the prevailing party shall be entitled to an award of the reasonable attorneys’ fees, expenses and costs incurred in prosecuting any such action for enforcement and/or breach of this Agreement, even if such action is resolved without proceeding to a judgment. Each party shall continue to perform its duties and obligations under this Agreement and the Escrow Agreement pending resolution of any disputes. 6 The Settlement Agreement states as follows:

If [Appellants] fail to deliver the Settlement Amount to [Appellee] by the Six- Month Date, by their signatures below, the Parties authorize and direct their respective counsel to tender to the Court an Agreed Judgment, generally in the form of the document attached hereto as Exhibit E providing for the entry of judgment in favor of [Appellee] and against: (a) CRC for all amounts due under the Note, plus interest and attorneys’ fees; (b) [Mr.] Sames for $750,000 plus attorneys’ fees pursuant to the Limited Guaranty, and (c) General Machine under the Security Agreement authorizing repossession and sale of the remaining Collateral (the date of that judgment, the “Judgment Date”). To avoid dispute as to the amount of the judgment as of the Judgment Date, it is stipulated and agreed that, as of February 9, 2024, the unpaid balance of the Note is $1,873,129.80; that per diem interest of $412.90 will continue to accrue and that [Appellee] has incurred attorney fees and litigation expenses of $19,501.48. -3- Sames conceded that he had not been in contact with Appellee at any time following the execution of the Settlement Agreement to discuss payment options. Mr.

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Bluebook (online)
BILL W. GENTRY v. CINCO RESEARCH CORPORATION, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bill-w-gentry-v-cinco-research-corporation-tennctapp-2025.