Donald L. Tatum and Dorothy L. Tatum v. Vertis J. Wolrsham and Freda Johnson Michel

Court of Appeals of Tennessee

Donald L. Tatum and Dorothy L. Tatum v. Vertis J. Wolrsham and Freda Johnson Michel

Court of Appeals of Tennessee·Decided March 1, 1996·No. 03A01-9507-CH-00219·Published

Opinion

I N THE COURT OF APPEALS OF TENNESSEE

EASTERN SECTI ON FILED March 1, 1996

Cecil Crowson, Jr. Appellate C ourt Clerk DONALD L. TATUM a nd ) HAM LTON COUNTY I DOROTHY R. TATUM ) 03A01- 9507- CH- 00219 ) Pl a i nt i f f s - Appe l l e e s ) ) ) HON. HOWELL N. PEOPLES, v. ) CHANCELLOR ) ) VERTI S J . WORSHAM ) ) De f e nda nt , ) Cr os s - De f e nda nt / Appe l l a nt ) ) a nd ) ) FREDA J OHNSON M CHEL I ) ) De f e nda nt , ) Cr os s - Pl a i nt i f f / Appe l l e e ) AFFI RMED AND REMANDED

W LLI AM G. SCHW I ALL OF CHATTANOOGA FOR APPELLANT

M CHAEL A. ANDERSON OF CHATTANOOGA FOR DONALD L. TATUM a nd I DOROTHY R. TATUM

W FRANK BROW I I I , OF CHATTANOOGA FOR FREDA J OHNSON M CHEL . N, I

O P I N I O N

Godda r d, P. J .

Thi s c a s e or i gi na t e d f r om a c ompl a i nt by Dona l d L.

Ta t u m a nd Dor ot hy R. Ta t um a ga i ns t Ve r t i s J . W s ha m f or s pe c i f i c or

p e r f o r ma nc e of a l a nd s a l e a gr e e me nt a nd da ma ge s . M . a nd M s . r r Ta t u m a me nde d t he i r c ompl a i nt t o j oi n Fr e da J ohns on M c he l , a i

s e c o n d mor t ga ge hol de r of t he s ubj e c t pr ope r t y. The r e a f t e r , M . s

M c h e l f i l e d a c r os s - c l a i m a ga i ns t M . W s ha m, p r i nc i pa l l y i s or

s e e k i n g a de t e r mi na t i on of t he ba l a nc e owi ng on t he s e c ond

mo r t g a g e whi c h wa s i n di s put e .

M . W s ha m a ppe a l s a j udgme nt of t he Ha mi l t on Count y s or

Ch a n c e r y Cour t gr a nt i ng s pe c i f i c pe r f or ma nc e of a l a nd s a l e

c o n t r a c t a nd da ma ge s r e s ul t i ng f r om t he br e a c h of t ha t c ont r a c t

i n f a v o r of M . a nd M s . Ta t um. r r M . W s ha m a l s o a ppe a l s a s or

d e c r e e de t e r mi ni ng t he ba l a nc e owe d on t he s e c ond mor t ga ge a nd

g r a n t i n g he r a t t or ne y' s f e e s .

The f ol l owi ng i s a s umma r y of t he Cha nc e l l or ' s f i ndi n g s

o f f a c t whi c h a r e a c c ompa ni e d by a pr e s umpt i on of c or r e c t ne s s .

Ru l e 1 3 ( d) of t he Te nne s s e e Rul e s of Appe l l a t e Pr oc e dur e .

M . W s ha m a c qui r e d t he pr ope r t y t ha t i s t he s ubj e c t s or

o f t h i s di s put e f r om Fr e da J ohns on ( now Fr e da M c he l ) i n 1993. i

At t ha t t i me , M . M c he l , who now r e s i de s i n Fl or i da , h e l d a s i

s e c o n d mor t ga ge on t he pr o pe r t y. On Nove mbe r 13, 1993, M . s

W r s h a m e nt e r e d i nt o a Re a l Es t a t e Sa l e s Agr e e me nt wi t h M . a nd o r

M s . Ta t um. r The Agr e e me nt pr ovi de d i n pe r t i ne nt pa r t t he

f o l l o wi ng:

4. Shoul d we wr ongf ul l y f a i l or r e f us e t o c a r r y out t h e t e r ms o f t hi s a gr e e me nt , t he Se l l e r s s ha l l ha ve t he r i ght ( 1) t o e l e c t t o de c l a r e t hi s c ont r a c t c a nc e l l e d, i n whi c h e ve nt t he a mount de pos i t e d ma y be r e t a i ne d by

2 t he m a s l i qui da t e d d a ma ge s , o r ( 2) e l e c t t o a f f i r m t hi s c ont r a c t a nd e nf or c e i t s s pe c i f i c pe r f or ma nc e or r e c ove r d a ma ge s f or i t s br e a c h. I n t hi s c a s e , t he d e pos i t s ha l l be r e t a i ne d t o a ppl y on t he s a l e pr i c e or o n t he da ma ge s r e c ove r e d.

9. Shoul d t hi s of f e r be a c c e pt e d by t he s e l l e r s , t he p a r t i e s he r e t o a gr e e t o c l os e t he pur c ha s e 12- 27- 93.

15. I n e ve nt of t he de f a ul t of e i t he r pa r t y he r e t o, a nd l i t i ga t i on e ns ue s , a r e a s ona bl e a t t or ne y' s f e e s ha l l be i nc l ude d i n t he da ma ge s of t he non- de f a ul t i ng pa r t y, r e c ove r a bl e t oge t he r wi t h a ny c our t c os t s .

Th e c o n t r a c t a l s o pr ovi de d t ha t M . W s ha m woul d ma ke r e pa i r s s or

r e q u i r e d by a n FHA a ppr a i s a l a nd s uppl y a wood i nf e s t a t i on

c l e a r a nc e l e t t e r .

The Ta t ums we r e una bl e t o obt a i n t he ne c e s s a r y

f i n a n c i ng by De c e mbe r 27, 1993. Thus , t he c l os i ng di d not t a k e

p l a c e o n t ha t da t e . But t he pa r t i e s ne got i a t e d f ur t he r a nd a t

l e a s t i mpl i c i t l y a gr e e d t o c l os e t he s a l e on J a nua r y 28, 1994.

Th e Ta t ums a t t e nde d t he c l os i ng on t he pr ope r da t e , a s di d M . s

W r s h a m. o M . W s ha m a s s e r t e d t ha t t he onl y r e a s on s he a t t e nd e d s or

wa s b e c a us e s he wa s t hr e a t e ne d wi t h a l a w s ui t by c ouns e l f or t h e

Ta t ums i f s he f a i l e d t o a t t e nd.

At t he c l os i ng, M . W s ha m r e f us e d t o c l os e t he s a l e s or

b e c a u s e t he r e wa s a di s put e a s t o t he a mount s he owe d on t he

mo r t g a g e he l d by M . M c he l . s i M . M c he l wa s r e s i di ng i n Fl or i d a s i

a n d d i d not a t t e nd t he c l os i ng.

The r e a f t e r , t he Ta t ums br ought t hi s s ui t a ga i ns t M . s

W r s h a m, r e que s t i ng t he Tr i a l Cour t t o or de r s pe c i f i c pe r f or ma n c e o

3 o f t h e i r c ont r a c t . M . W s ha m f i l e d a c r os s - c l a i m a ga i ns t M . s or s

M c h e l s e e ki ng a de t e r mi na t i on of t he a mount owe d on t he mor t ga g e i

h e l d b y M . M c he l . s i M . M c he l c ount e r - c l a i m d. s i e

The Cha nc e l l or f ound t ha t M . W s ha m ha d a c t e d s or

u n r e a s o na bl y by f a i l i ng t o c l os e t he s a l e a nd wa s i n br e a c h of

t h e i r a gr e e me nt . Spe c i f i c a l l y, t he Cha nc e l l or s t a t e d, " t he

a p p r o p r i a t e t hi ng t o do a nd t he pr ope r t hi ng t o do wa s t o go

f o r wa r d wi t h t he c l os i ng a nd e s c r ow a ny di s put e d a mount s o t ha t

a t s o me t i me l a t e r M . W s ha m a nd M . M c he l c a n r e s ol ve s or s i

wh a t e v e r di f f e r e nc e s t he y ha ve e i t he r be t we e n t he m or t hr ough t h e

a pp r o p r i a t e a c t i on. " The Cha nc e l l or gr a nt e d s pe c i f i c pe r f or ma nc e

o f t h e c ont r a c t , a s we l l a s mone t a r y da ma ge s , i n f a vor of t he

Ta t u ms a nd or de r e d t ha t a c l os i ng t a ke pl a c e on J ul y 12, 1994.

Th e Ch a nc e l l or a l s o d i r e c t e d t ha t a de t e r mi na t i on be ma de a s t o

t h e v a l ue of M . M c he l ' s mor t ga ge a nd a wa r de d a t t or ne y' s f e e s t o s i

M . M c he l . s i As t o t he di s put e d por t i on of t he de bt , t he

Ch a n c e l l or or de r e d t ha t t he y be pl a c e d i n e s c r ow unt i l t he Cou r t

ma d e a de t e r mi na t i on of t he a mount owe d.

M . W s ha m r a i s e s s e ve n i s s ue s on a ppe a l , f our a s t o s or

M . a n d M s . Ta t um a nd t hr e e a s t o M . M c he l . r r s i W wi l l a ddr e s s e

e a c h i n t ur n.

M . W s ha m f i r s t a r gue s t ha t t he Tr i a l Cour t e r r e d i n s or

f a i l i n g t o f i nd t ha t t he Ta t um' s ha d br e a c he d t he l a nd s a l e s

c o n t r a c t by be i ng una bl e t o c l os e t he c ont r a c t on De c e mbe r 27,

4 1 9 9 3 , o r , a l t e r na t i ve l y, t ha t t he c ont r a c t ha d e xpi r e d on t ha t

da t e . Es s e nt i a l l y, M . W s ha m i s a r gui ng t ha t t i me wa s of t he s or

e s s e n c e of t he c ont r a c t , a nd by f a i l i ng t o be a bl e t o c l os e on

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