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James Slyman v. National Knife Collectors Association

Court of Appeals of Tennessee·Decided October 1, 1997·No. 03A01-9703-CV-00094·Published

Opinion

I N THE COURT OF APPEALS OF TENNESSEE

EASTERN SECTI ON

FILED October 1, 1997

Cecil Crowson, Jr. Appellate C ourt Clerk

J AMES SLYMAN ) HAM LTON COUNTY

I

) 03A01- 9703- CV- 00094 Pl a i nt i f f - Appe l l e e )

) )

v. ) HON. SAMUEL H. PAYNE, ) J UDGE )

NATI ONAL KNI FE COLLECTORS ) ASSOCI ATI ON )

)

De f e nda nt - Appe l l a nt ) AFFI RMED AND REMANDED

W LLI AM R. HANNAH OF CHATTANOOGA FOR APPELLANT I

ERSKI NE P. MABEE OF CHATTANOOGA FOR APPELLEE

O P I N I O N

Godda r d, P. J .

I n t hi s j ur y c a s e , Na t i ona l Kni f e Col l e c t or s

As s o c i a t i on a ppe a l s a $5000 j udgme nt r e nde r e d a ga i ns t i t i n f a v o r

o f J a me s Sl yma n, r a i s i ng t he f ol l owi ng t wo i s s ue s on a ppe a l ,

n e i t h e r of whi c h que s t i ons t he a mount of t he a wa r d:

1. W t he r t he Tr i a l Cour t e r r e d i n f a i l i ng t o he

h o l d a s a ma t t e r of l a w t ha t pl a i nt i f f c oul d not r e c ove r a ga i ns t de f e nda nt f or de f a ma t i on.

2. W t he r t he Tr i a l Cour t e r r e d i n f a i l i ng t o he

h o l d a s a ma t t e r of l a w t ha t t he 90/ 10 r ul e wa s not s e l e c t i ve l y e nf or c e d.

The c ompl a i nt s o ught da ma ge s a ga i ns t t he As s oc i a t i on

1

a n d i t s Pr e s i de nt , Bob Ca r gi l l , upon t wo t he or i e s . The f i r s t

wa s l i b e l , a nd t he s e c ond br e a c h of c ont r a c t . The l i be l t he or y

s t e ms f r om a n a l t e r c a t i on be t we e n M . Ca r gi l l a nd M . Sl yma n, r r

o c c u r r i ng on Se pt e mbe r 25, 1994, whe n M . Ca r gi l l a c c os t e d M .

r r

Sl y ma n wi t h r e ga r d t o M . Sl yma n' s c onve r s a t i on t he da y be f or e

r

wi t h Li s a Br oyl e s , who wa s e mpl oye d by t he As s oc i a t i on a s a n

e d i t o r of i t s ma ga z i ne a nd ma na ge r of i t s mus e um. The

c o n v e r s a t i on wi t h M . Br oy l e s c onc e r ne d M . Sl yma n' s be l i e f t h a t s r

t h e a d v e r t i s i ng f or a s how be i ng he l d i n Loui s vi l l e , Ke nt uc ky,

wa s i ns uf f i c i e nt .

As a l r e a dy not e d, M . Ca r gi l l c onf r ont e d M . Sl yma n r r

r e g a r d i ng hi s t r e a t me nt of M . Br oyl e s .

s Thi s r e s ul t e d, a c c or d i n g

t o M . Ca r gi l l , i n hi s be i ng phys i c a l l y a s s a ul t e d by M . Sl yma n , r r

a n a c c u s a t i on whi c h M . Sl yma n s t e a df a s t l y de ni e d.

r

Subs e que nt t o t h e c onf r ont a t i on, whi c h oc c ur r e d on

Se p t e mb e r 24, 1994, M . Ca r gi l l , on be ha l f of t he As s oc i a t i on,

r

s e n t a l e t t e r t o M . Sl yma n da t e d Oc t obe r 11, 1994, whi c h s t a t e d

r

t h e f o l l owi ng:

1 M . r Ca r g i l l wa s e x o n e r a t e d b y t h e j u r y .

Du e t o your c ont i nua l r e f us a l t o c ompl y wi t h t he NKCA s h ow r ul e t ha t 90% of your me r c ha ndi s e mus t be kni ve s , a n d your phys i c a l a t t a c k on me a t t he r e c e nt Loui s vi l l e NKCA Kni f e Show, you wi l l not be a l l owe d t o s e t up a t a n y NKCA Shows unt i l f ur t he r not i c e .

The p r e di c a t e f or t he l i be l s ui t i s t he s t a t e me nt i n

t h e l e t t e r a c c us i ng M . Sl yma n of a phys i c a l a t t a c k.

r Copi e s of

t h e l e t t e r we r e s e nt t o t he c ha i r ma n of s hows t o be he l d i n

Ci nc i nn a t i , Ohi o, Spr i ngf i e l d, I l l i noi s , a nd Cha t t a nooga .

Al t hough a l mos t a l l of t he pa r t i e s ' br i e f s a r e di r e c t e d

t o t h e i s s ue of l i be l , we be l i e ve , f or t he r e a s ons he r e i na f t e r

s e t o u t , t he s e c ond i s s ue i s di s pos i t i ve of t hi s a ppe a l .

W t h r e ga r d t o t he s e c ond i s s ue , t he As s oc i a t i on ha s

i

wh a t i s known a s a 90- 10 Rul e , whi c h i s s e t out i n i t s Pol i c i e s

a n d Pr o c e dur e s :

I I I - 5. 2 De a l e r s ha l l a gr e e t ha t 90% of t he di s pl a ye d me r c ha ndi s e s ha l l be c ut l e r y or c ut l er y r e l a t e d ma t e r i a l s . Any e xc e pt i ons t o t hi s a gr e e me nt mus t ha ve pr i or a ppr ova l of t he s how c ha i r ma n/ ma na ge r .

The e vi de nc e i s i n di s put e a s t o whe t he r ot he r

e x h i bi t o r s we r e a l l owe d t o vi ol a t e t hi s Rul e wi t h i mpuni t y, a s

wa s M . Sl yma n unt i l t he c onf r ont a t i on be t we e n hi m a nd M .

r r

Ca r g i l l r e ga r di ng M . Sl yma n' s t r e a t me nt of M . Br oyl e s .

r s

Al t hough, a s a l r e a dy not e d, t he c ompl a i nt s ought

d a ma ge s f or b r e a c h o f c ont r a c t , t he c a s e wa s t r i e d on t he t he or y

t h a t t h e As s oc i a t i on s e l e c t i ve l y e nf or c e d t he r ul e by pe na l i z i n g

h i m f o r non- c ompl i a nc e , but not ot he r e xhi bi t or s , a nd a l s o on t h e

t h e o r y t ha t be c a us e t he As s oc i a t i on ha d a l l owe d hi m t o vi ol a t e

t he r u l e i n t i me s p a s t he wa s e nt i t l e d t o r e a s ona bl e not i c e t ha t

i n t h e f ut ur e t he r ul e wou l d be e nf or c e d.

As a r e s ul t , M . Sl yma n wa s not a bl e t o pa r t i c i pa t e i n

r

t he i r f u t ur e e xhi bi t s h e l d i n Ci nc i nna t i , Spr i ngf i e l d, a nd

Ch a t t a n ooga , f or whi c h he ha d a l r e a dy pa i d a f e e . Al t hough

u l t i ma t e l y t he f e e wa s r e t ur ne d by M . Ca r gi l l ' s l e t t e r of

r

Oc t o b e r 11, M . Sl yma n ne ve r t he l e s s c ont e nds he s uf f e r e d da ma g e s

r

a s a r e s ul t of be i ng ba r r e d f r om di s pl a yi ng hi s wa r e s , f or whi c h

he s ue s .

W f i r s t not e t ha t unde r s i mi l a r c i r c ums t a nc e s t he

e

Su p r e me Cour t he l d i n Li ve l y v. Dr a ke , 629 S. W 2d 900 ( Te nn.

.

1 9 8 2 ) , t ha t a de bt or , whos e i ns t a l l me nt l oa n wa s s e c ur e d by a

d e e d o f t r us t , wa s e nt i t l e d t o a r e a s ona bl e not i c e f r om t he

l e nd e r t ha t t he i r r e gul a r pa yme nt s he r e t of or e a c c e pt e d mus t be

ma d e i n a c c or da nc e wi t h t h e not e e vi de nc i ng t he i nde bt e dne s s

b e f o r e f or e c l os ur e of t he pr ope r t y c oul d be a c c ompl i s he d. In

r e a c h i n g t hi s c onc l us i on t he Supr e me Cour t s a i d t he f ol l owi ng ( a t

p a g e 9 0 3) :

I t i s a l s o s e t t l e d, h owe ve r , t hat as a r e s ul t of a c o ur s e of de a l i ng be t we e n pa r t i e s , t he hol de r of a n i n de bt e dne s s ma y be de e me d t o ha ve wa i ve d t he r i ght t o a c c e l e r a t e wi t hout gi vi ng pr i or not i ce t o t he de bt or of h i s i nt e nt i on t o do s o. As s t a t e d by t he Cour t of Ap pe a l s :

" The r e i s a not h e r t he or y upon whi c h t he Ch a nc e l l or ' s de t e r mi na t i on mi ght be s us t a i ne d, vi z . : t he c onduc t of t he pa r t i e s ha s be e n s uc h t ha t a n i mpl i e d modi f i c a t i on of t he t e r ms of t he a g r e e me nt e xi s t e d, b y whi c h t he de bt or wa s a l l owe d t o mi s s p a yme nt s f r om t i me t o t i me , a nd unt i l t he c r e di t or ga ve a c t ua l not i c e of hi s i nt e nt t o r e l y on t h e ol d t e r ms no de f a ul t a nd f or e c l os ur e c oul d be a c c ompl i s he d. "

The t he or y of s e l e c t i ve e nf or c e me nt a nd l a c k of not i c e

i s d e mo ns t r a t e d by t he f ol l owi ng c ha r ge t o t he j ur y by t he Tr i a l

Co u r t , whi c h wa s not obj e c t e d t o by t he As s oc i a t i on:

The y a l s o t a ke t he pos i t i on t ha t he i s t he onl y o n e t ha t t he y' ve e ve r a ppl i e d t hi s 90- 10 r ul e t o. Now, y o u' ve he a r d t he e vi de nc e f r om bot h s i de s . Now, l a di e s a n d ge nt l e me n of t he j ur y, bot h a r e r e s pons i bl e t o r e a d t h e byl a ws , t he r e i s no de f e ns e of l a w t ha t s a ys you h a ve n' t r e a d t he byl a ws or ha ve n' t r e a d t he r ul e s . If y o u di d, you unde r s t a nd, we ' d ha ve l a ws ui t s e ve r y da y, s a y, " He r e ' s t he c ont r a c t , I di dn' t r e a d i t . "

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James Slyman v. National Knife Collectors Association, (Tenn. Ct. App. 1997).

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