Ernest Hobbs v. Russell L. Leonard

CourtCourt of Appeals of Tennessee
DecidedFebruary 15, 2019
DocketM2018-00317-COA-R3-CV
StatusPublished

This text of Ernest Hobbs v. Russell L. Leonard (Ernest Hobbs v. Russell L. Leonard) 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
Ernest Hobbs v. Russell L. Leonard, (Tenn. Ct. App. 2019).

Opinion

02/15/2019 IN THE COURT OF APPEALS OF TENNESSEE AT NASHVILLE January 9, 2019 Session

ERNEST HOBBS V. RUSSELL L. LEONARD ET AL.

Appeal from the Circuit Court for Coffee County No. 43271 Vanessa Jackson, Judge

No. M2018-00317-COA-R3-CV

After a defendant in an earlier action settled the claims against him, the lawyer representing the plaintiffs in the earlier action notified a regulatory agency of the defendant’s alleged conduct at issue in the earlier action. The defendant/current plaintiff filed a breach of contract action against the lawyer, asserting that the lawyer breached the terms of the settlement agreement by filing a complaint against him with the regulatory agency. The lawyer defended the action by claiming that the settlement agreement violated public policy and was unenforceable. The trial court held that the settlement agreement was not contrary to public policy and entered judgment for the plaintiff. The lawyer appealed, and we affirm the trial court’s judgment.

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

ANDY D. BENNETT, J., delivered the opinion of the Court, in which W. NEAL MCBRAYER, J., joined, and RICHARD H. DINKINS, J., filed a separate concurring opinion.

Donald N. Capparella, Nashville, Tennessee, for the appellant, Russell L. Leonard.

Brennan Maureen Wingerter, Knoxville, Tennessee, for the appellee, Ernest Hobbs.

OPINION

I. FACTUAL AND PROCEDURAL BACKGROUND

Ernest Hobbs was the defendant in an earlier action filed in chancery court in which Russell L. Leonard was the attorney representing three individuals, Laura Houghtaling, Dustin Frazier, and Tiffany Chrisulis (now Frazier). The plaintiffs in the earlier action, Case No. 2014-CV-170, asserted that Mr. Hobbs had falsely represented himself as a real estate agent and that his actions constituted fraudulent and deceptive trade practices. The parties settled Case No. 2014-CV-170 in December 2014 and signed a General Release. Mr. Leonard approved the release “as to form and substance” and signed his name as “Attorney for Plaintiff.”

The parties identified Case No. 2014-CV-170 in the General Release and stated their desire “to settle, compromise and dispose of the above-described claims . . . .” The release continued, in pertinent part:

By the execution of this Release, the PLAINTIFFS, for themselves and their family, . . . , agents, legal representatives . . . do hereby forever and fully remise, release, acquit and discharge the DEFENDANTS, their family, . . . , agents, legal representatives, . . . , sole proprietorships or entities affiliated with, related to, owned or controlled by them, (hereinafter referred to collectively as the RELEASED PARTIES) of and from any and all actions, causes of action, suits, debts, sums of money, accounts, covenants, contracts, agreements, arrangements, promises, obligations, warranties, trespasses, torts, injuries, losses, damages, claims, demands, and other relief of any nature whatsoever, whether known or unknown, whether absolute, fixed or contingent, whether in law, in equity or before administrative agencies or departments, that PLAINTIFFS ever had, now have or hereafter can, shall or may have, by reason of or arising out of any matter, cause or event alleged or which could have been alleged in the above-referenced action in the Chancery Court of Coffee County, Tennessee, Case #2014-CV-170, which will be dismissed on the merits with full prejudice and the Court costs, but not the discretionary costs, will be taxed to the PLAINTIFFS.

In connection with the foregoing, it is expressly understood and agreed by PLAINTIFFS as follows:

(a) That this is a full and final general release of all matters whatsoever and that this general release is intended to and does embrace not only all known and anticipated damages and injury but also all unknown and unanticipated damages and injury that may later develop or be discovered, including all effects and consequences thereof;

(b) That this release will forever bar any action or claim whatsoever by PLAINTIFFS against the RELEASED PARTIES, which arose or which might arise in the future from the claims released herein, and that no lawsuit will ever be instituted nor will any claim of any nature ever be asserted

-2- against any person or entity hereby released for any injury or damages, whether known or unknown, sustained or to be sustained, as a result of the foregoing claims;

(c) That PLAINTIFFS shall indemnify, defend, and hold harmless the RELEASED PARTIES from and against any loss, claim, demand, damage, suit, cost or expense of any nature whatsoever (including attorneys’ fees) arising from or relating to the claims herein released if said claims are asserted or attempted to be asserted by, under, or through the PLAINTIFFS, . . . , agents, . . . , legal representatives, . . . , or entities affiliated with, related to, owned or controlled by [them]; [and]

(d) That PLAINTIFFS and [their] counsel shall not solicit, encourage, assist, or incite the initiation by any other person or entity of any claims or demands against the RELEASED PARTIES arising from or relating to any allegations contained in the above-referenced action from the beginning of the world to the date of the Release[.]

The following month, in January 2015, Mr. Leonard sent a letter to the Tennessee Real Estate Commission (“TREC” or “the Commission”) in which he identified himself as an attorney representing Mr. and Mrs. Frazier and Ms. Houghtaling. Mr. Leonard wrote that “[t]hese people asked me to forward a formal complaint to you concerning a Mr. Ernie Hobbs operating as Penguin Properties and Tennessee Homes, LLC.” Mr. Leonard continued:

To put it briefly and succinctly, Mr. Hobbs is buying properties from one party and selling to another party without a license, and in the process is reaping huge profits that are nothing short of unjust enrichment. We were previously involved in legal action with Mr. Hobbs from the standpoint of a detainer with regard to Mr. and Mrs. Frazier and on behalf of Ms. Houghtaling and the Fraziers in a contract action that is separate and apart from the detainer. I have attached the original complaint and copies of the leases and option contracts produced by Mr. Hobbs as well [as] other materials instructive of what he is doing.

The Commission opened an investigation into Mr. Hobbs’ activities based on Mr. Leonard’s letter. Mr. Hobbs eventually entered into a Consent Decree with TREC and paid a fine of $6,000 to avoid formal disciplinary proceedings.

-3- Mr. Hobbs then turned around and sued Mr. Leonard, Ms. Houghtaling, and Mr. and Mrs. Frazier for breach of contract, intentional infliction of emotional distress, defamation, and interference with business relations. According to Mr. Hobbs, the claims Mr. Leonard made in his letter to the Commission were identical in substance to the claims that the plaintiffs in the earlier action (Case No. 2014-CV-170) asserted against him that were released in the General Release. Mr. and Mrs. Frazier answered the complaint and denied having any knowledge of the letter Mr. Leonard sent to TREC. Mr. Leonard moved to dismiss the complaint and/or for summary judgment, which the trial court denied. Ms. Houghtaling did not file an answer to the complaint, and Mr. Hobbs obtained a default judgment against her.

A trial was held on November 14, 2017, and the trial court entered a Final Order on January 31, 2018, finding that Mr. Leonard breached the General Release and awarding Mr. Hobbs damages in the amount of $6,000 and attorney’s fees in the amount of $14,288.30. Mr. Leonard admitted at trial that his former clients, Ms.

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Bluebook (online)
Ernest Hobbs v. Russell L. Leonard, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ernest-hobbs-v-russell-l-leonard-tennctapp-2019.