Billie Mclemore v. J.W. Powell & Raymond Nelson

968 S.W.2d 799, 1997 Tenn. App. LEXIS 541
CourtCourt of Appeals of Tennessee
DecidedJuly 31, 1997
Docket02A01-9702-CH-00030
StatusPublished
Cited by29 cases

This text of 968 S.W.2d 799 (Billie Mclemore v. J.W. Powell & Raymond Nelson) 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
Billie Mclemore v. J.W. Powell & Raymond Nelson, 968 S.W.2d 799, 1997 Tenn. App. LEXIS 541 (Tenn. Ct. App. 1997).

Opinion

CRAWFORD, Presiding Judge, W.S.

This is a suit to collect a debt owing from a purchase of cattle. Defendant, J.W. Powell (Powell), appeals the judgment of the trial court finding that there was an agency relationship between Powell and his co-defendant, Raymond Nelson (Nelson), and awarding the plaintiff, Ralph McLemore *800 (MeLemore), a judgment against Powell in the amount of $9,867.98. 1

In November 1987, MeLemore sold Nelson sixty-seven head of cattle at $350.00 a head. Nelson then sold forty-five head of the cattle at a cattle auction in McLemore’s name, and the checks in payment for the cattle were payable to MeLemore. MeLemore endorsed some of the checks that he received from the sale of the cattle over to Nelson. In return, Nelson gave MeLemore a signed, blank note. MeLemore later filled in the note for the amount of $27,500.00 and contends that Nelson assured him that Powell, as Nelson’s principal, would make payment within ninety days. Powell and MeLemore had entered into six transactions before this date that weré negotiated by Nelson on Powell’s behalf. Neither Nelson nor Powell paid MeLe-more for the cattle in this particular transaction.

On December 30, 1988, MeLemore filed a complaint against Nelson and Powell alleging, inter alia, that Nelson negotiated the sale of sixty-seven head of cattle with MeLe-more and that Nelson was acting as Powell’s agent or representative in the sale. In the complaint, MeLemore avers that Nelson executed a promissory note in the amount of $27,500.00 on behalf of Powell, that Powell admitted to MeLemore that Nelson was his agent or representative in the sale of the cattle, and that Powell obtained ownership of the cattle pursuant to the transaction. MeLemore further avers that Powell paid $4,000.00 of the $27,500.00, but that MeLe-more has not received the remaining $23,-500.00 due under the promissory note. In Count I of the complaint, MeLemore demands payment of the promissory note from Powell, pursuant to T.C.A. § 47-2-201 et seq., for the transaction entered into by Nelson on Powell’s behalf, plus attorney’s fees and interest. In Count II of the complaint, MeLemore avers that Nelson and Powell violated certain maxims of equity and demands judgment in the amount of $23,500.00, plus attorney’s fees and interest.

On February 1, 1989, Powell filed an answer admitting that Nelson executed a promissory note for the purchase of the cattle from MeLemore, but denying all of the material allegations in the complaint, including that Nelson was acting as his agent or representative in the sale. Also on February 1, 1989, Powell filed a cross-claim against Nelson averring that Nelson would be liable to Powell should MeLemore obtain a judgment against Powell. On August 8, 1989, Nelson filed an answer in which he admitted that he signed a blank note after buying some cattle from MeLemore and that the note was part of the proceeds for the payment of cattle that he bought from MeLemore. Nelson alleges, however, that MeLemore received most of the proceeds for the cattle and that Nelson signed the blank note for the small balance remaining after the sale and payment. On October 1, 1991, Powell filed an amended answer raising the Statute of Frauds in T.C.A. § 47-2-201 and § 29-2-101 and a lack of consideration as additional defenses. Also on October 1, 1991, Powell filed a motion for summary judgment. After a hearing, the trial court entered an order on January 25, 1993 granting summary judgment in favor of Powell and dismissing the action as to Nelson.

MeLemore appealed the judgment of the trial court to this Court, and in an opinion dated February 24,1994, this Court held that there was a material fact in dispute as to the existence of an agency relationship between Powell and Nelson at the time of the transaction. See McLemore v. Powell, No. 02A01-9302-CH-00043, 1994 WL 53643, at *4 (Tenn.App. Feb.24, 1994). This Court further held that T.C.A. § 29-2-101 was inapplicable, but that if the proof established an agency relationship, McLemore’s claim “may indeed fall within the exceptions set forth in T.C.A. § 47-2-201.” Id. at *4-5. Accordingly, this Court reversed the grant of summary of judgment and remanded the case for trial. Id. at *5.

On November 17,1995, Nelson filed a motion to amend his answer to add that McLe- *801 more’s right of action accrued on November 4, 1987. In the proposed amendment, Nelson asserted that McLemore had not amended his complaint to assert a right of action for breach of contract and that such a claim was now barred by the statute of limitations. The trial court entered an order granting this motion on January 11,1996.

After a bench trial, the trial court entered an order on August 29, 1996 incorporating the following findings by reference. The trial court found that Nelson purchased sixty-seven head of cattle from McLemore at $350.00 per head for a total of $23,450.00. The trial court further found that Nelson took approximately forty-five head of cattle and sold them at an auction, but instructed the sale barn to issue the checks for the proceeds in McLemore’s name. The trial court then found that McLemore endorsed $13,582.02 in checks over to Nelson at his request, that Nelson promised to pay McLe-more back in sixty to ninety days, and that Nelson signed a blank document to evidence the debt. McLemore later filled in the amount portion of the document in the amount of $27,500.00, which included $4,000.00 that is not part of this suit. The trial court found that Nelson was acting as Powell’s agent in the original transaction and that the document in question fell within an exception to the Statute of Frauds. The trial court also found that Nelson was not acting as Powell's agent when McLemore endorsed the checks for the sale of the cattle over to Nelson and that the amount owing as a result of this transaction, which was in effect a loan from McLemore to Nelson, was Nelson’s individual debt. Finally, the trial court awarded McLemore a judgment against Powell in the amount of $9,986.98 for the difference between the note and the amount owing under the original cattle purchase agreement.

Powell appeals the judgment of the trial court and presents six issues for review:

(1)Whether the evidence supports the verdict when the depositions of the decedent, McLemore, and the defendant, Powell, were not read into the record, but were filed as exhibits in violation of Tenn. R. Civ. P. 32.01.
(2) Whether the trial court erred when it failed to dismiss the suit upon motion of the defendant, Powell, because the complaint reflected on its face that McLemore was suing on a note, but McLemore and his counsel admitted that the note was merely a record of the transaction and argued that McLemore was entitled to a judgment under the equitable counts of the complaint.

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Cite This Page — Counsel Stack

Bluebook (online)
968 S.W.2d 799, 1997 Tenn. App. LEXIS 541, Counsel Stack Legal Research, https://law.counselstack.com/opinion/billie-mclemore-v-jw-powell-raymond-nelson-tennctapp-1997.