Jeffrey Keith Phillips and Jennifer Phillips v. Eugene Russell

CourtCourt of Appeals of Tennessee
DecidedMarch 4, 1996
Docket03A01-9509-CV-00298
StatusPublished

This text of Jeffrey Keith Phillips and Jennifer Phillips v. Eugene Russell (Jeffrey Keith Phillips and Jennifer Phillips v. Eugene Russell) 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
Jeffrey Keith Phillips and Jennifer Phillips v. Eugene Russell, (Tenn. Ct. App. 1996).

Opinion

I N THE COURT OF APPEALS

FILED March 4, 1996

Cecil Crowson, Jr. Appellate C ourt Clerk J EFFREY KEI TH PHI LLI PS a nd ) WASHI NGTON CI RCUI T J ENNI FER PHI LLI PS, ) C. A. NO. 03A01- 9509- CV- 00298 ) ) Pl a i nt i f f s - Appe l l e e s ) ) ) ) ) ) vs . ) HON. G. RI CHARD J OHNSON ) J UDGE BY I NTERCHANGE ) ) ) ) ) EUGENE RUSSELL, ) AFFI RMED AND REMANDED ) De f e nda nt - Appe l l a nt )

TI M OTHY S. BELI SLE, Ande r s on, Fuga t e , Gi ve ns , Count s , & Be l i s l e , J o h n s o n Ci t y, f or Appe l l a nt .

ROBERT J . J ESSEE, J ohns on Ci t y, f or Appe l l e e s .

O P I N I O N

M M r a y, J . c ur The pa r t i e s t o t hi s a p pe a l e nt e r e d i nt o a c ont r a c t whe r e by t h e

a pp e l l a nt wa s t o c ons t r uc t a home f or t he a ppe l l e e s . Pr obl e ms

d e v e l o p e d be t we e n t he pa r t i e s whi c h r e s ul t e d i n a n a c t i on by t h e

p l a i nt i f f s - a ppe l l e e s to r e c ove r da ma ge s f r om t he de f e nda n t -

a pp e l l a nt f or de f e c t i ve wor kma ns hi p i n t he c ons t r uc t i on a n d t o

r e mo v e a c l oud f r om t he i r t i t l e r e s ul t i ng f r om a l i e n f i l e d by t he

d e f e n d a nt . The de f e nda nt f i l ed a c o u n t e r c l a i m a ga i ns t t he

p l a i nt i f f s a n d a c r os s - c l a i m a ga i ns t Shi r l e y G. Hughe s . Shi r l e y

Hu g h e s wa s t r us t e e unde r a de e d of t r us t e xe c ut e d by t he pl a i nt i f f s

t o s e c ur e pa yme nt o f a pr omi s s or y not e i n t he a mount of $80, 000. 0 0 . 1 p a y a b l e t o El i z a be t ht on Sa vi ngs a nd Loa n As s oc i a t i on.

I n hi s c ount e r c l a i m, t he de f e nda nt s ought to r e c ove r t he

unpa i d ba l a nc e of t he c ont r a c t pr i c e pl us a dd i t i ona l s ums he

c l a i ms t o h a v e e xpe nde d i n t he c ons t r uc t i on of t he hous e . He

a l l e g e s t ha t he i s e nt i t l e d t o r e c ove r f r om t he pl a i nt i f f s on t he

t h e o r y of qua nt um me r ui t . No r e c ove r y i s s ought a ga i ns t t he c r os s -

d e f e n d a nt .

Af t e r a be nc h t r i a l t he c our t r e s ol ve d t he i s s ue s i n f a vor o f

t he p l a i nt i f f s a nd a wa r de d j udgme nt a ga i ns t t he d e f e nda nt i n t h e

a mo u n t of $3, 412. 69. Fr om t hi s j udgme nt t he de f e nda nt ha s a ppe a l e d

a n d p r e s e nt s t he f ol l owi ng i s s ue s f or our c ons i de r a t i on:

1 For simplicity, the parties will be referred to in the capacity in which they appeared in the trial court.

2 1. W t he r t he c onduc t of t he pl a i nt i f f s , i n p e r - he mi t t i ng t he de f e nda nt t o c ont i nue wo r k on pl a i n- t i f f s ’ hous e de s pi t e pe r c e i ve d de vi a t i ons f r om t he c ont r a c t a n d i n not a l l owi ng t he de f e nda nt s uf f i - c i e nt oppor t uni t y t o c or r e c t t he de f e c t s a f t e r not i c e t ha t t he pl a i nt i f f s ’ i nt e nde d t o wi t hhol d pa yme nt u nt i l t he de f e c t s we r e c or r e c t e d, s houl d pr e c l ude t he m f r om pr e va i l i ng a ga i ns t t he de f e n- da nt .

2. W t he r t he t r i a l c our t e r r e d i n a wa r di ng j udgme nt he t o p l a i nt i f f s wh e r e t he e vi de nc e f a i l e d t o e s t a b- l i s h p l a i nt i f f ’ s ’ e nt i t l e me nt t o j udgme nt .

3. W t he r de f e nda nt he i s e nt i t l e d t o j udgme nt a ga i ns t t he p l a i nt i f f s .

W wi l l f i r s t c ons i de r t he t hi r d i s s ue . e I t i s undi s put e d t ha t

t he d e f e nda nt - c ount e r - pl a i nt i f f wa s not a l i c e ns e d c ont r a c t o r . 2 T. C. A. § 62- 6- 103 pr ovi de s i n pe r t i ne nt pa r t a s f ol l ows :

62- 6- 103. Li c e ns e r e qui r e m nt - Re c ove r y of e xpe ns e s e by unl i c e ns e d c ont r ac t or . ( a ) ( 1) Any pe r s on , f i r m or c o r por a t i on e nga ge d i n c ont r a c t i ng i n t hi s s t a t e s ha l l be r e qui r e d t o s ubmi t e vi de nc e t ha t s uc h pe r s on, f i r m or c o r po r a t i on i s qua l i f i e d t o e nga ge i n c ont r a c t i ng, a nd s ha l l be l i c e ns e d a s he r e i na f t e r pr ovi de d. I t i s unl a wf ul f or a ny pe r s on, f i r m or c or por a t i on t o e nga ge i n or of f e r t o e nga ge i n c ont r a c t i n g i n t he s t a t e , u nl e s s s uc h p e r s on, f i r m or c or po r a t i on ha s be e n dul y l i c e ns e d unde r t he pr ovi s i ons of t hi s c ha pt e r , a s he r e i na f t e r pr ovi de d. An y pe r s on, f i r m or c or por a t i on e nga ge d i n c ont r a c t i ng, i n c l udi ng s uc h pe r s on, f i r m or c or por a t i on t ha t e nga ge s i n t he c ons t r uc t i on of r e s i de nc e s or dwe l l i ngs c on- s t r uc t e d on pr i va t e pr ope r t y f or t he pur pos e of r e s a l e , l e a s e , r e nt or a ny ot he r s i mi l a r pur pos e , s ha l l be r e qui r e d t o s ubmi t e vi de nc e t ha t s uc h pe r s on, f i r m or c o r por a t i on i s qua l i f i e d t o e nga ge i n c ont r a c t i ng a nd/ or b u i l di ng, a nd s ha l l be l i c e ns e d. I t i s unl a wf ul f or a ny

2 T.C.A. § 62-6-103 was amended in 1994. The text set out here is the text as it existed before the 1994 amendment.

3 p e r s on, f i r m, or c or por a t i on t o e nga ge i n, or of f e r t o e n ga ge i n, c ont r a c t i ng or bui l di ng a s he r e i na bove d e s c r i be d, unl e s s s uc h pe r s on, f i r m or c or por a t i on ha s b e e n dul y l i c e ns e d unde r t he pr ovi s i ons of t hi s c ha pt e r .

* * * *

( c ) Any unl i c e ns e d c ont r a c t or c ove r e d by t he p r ovi s i ons of t hi s c ha pt e r s ha l l be pe r mi t t e d i n a c our t o f e qui t y t o r e c ove r a c t ua l doc ume nt e d e xpe ns e s onl y upon a s howi ng of c l e a r a nd c onvi nc i ng pr oof .

To a voi d t he c ons e que nc e s of t hi s s t a t ut e , t he de f e nda n t

t h e or i z e s t ha t t he pl a i nt i f f s ar e e s t oppe d f r om a s s e r t i ng t he

u n l i c e n s e d s t a t us of t he de f e nda nt . De f e nda nt i ns i s t s t ha t t he

pl a i nt i f f s ' a c t i ons i n a l l owi ng hi m t o go f or wa r d knowi ng t ha t h e

wa s u n l i c e ns e d c r e a t e d a n e s t oppe l . No a ut hor i t y i s c i t e d t o u s

a nd we h a ve f ound none whe r e by e s t oppe l c a n be s uc c e s s f ul l y i nvok e d

t o d e f e a t t he pur pos e s of t he a bove s t a t ut e . Eve r yone i s pr e s u me d

t o k n o w t he l a w. Da vi s v. M t r opol i t a n Gove r nme nt of Na s hvi l l e , e

6 2 0 S. W 2d 532 ( Te nn. . App . 1981) . The r e f or e , t he de f e nda nt is

c ha r g e a bl e wi t h t he knowl e dge t ha t he c oul d r e c ove r no mor e t h a n

t he s t a t ut e a l l ows , i . e . , a c t ua l doc ume nt e d e xpe ns e s a nd t he n, a nd

o n l y t h e n, upon a s howi ng, by c l e a r a nd c onvi nc i ng pr oof , t ha t h e

i n c u r r e d t he e xpe ns e s . To hol d o t he r wi s e woul d be t o c r e a t e a

j ud i c i a l e xc e pt i on t o t he s t a t ut e whi c h we a r e unwi l l i ng t o do. We

h o l d t h a t e s t oppe l doe s not a ppl y unde r t he c i r c ums t a nc e s of t h i s

case.

4 As doc ume nt e d pr oof , t he de f e nda nt of f e r e d i nt o e vi de n c e

c he c ks i n t he t ot a l a mount of $88, 774. 32, whi c h he c l a i ms r e-

p r e s e nt e d moni e s e xpe nde d on t he pl a i nt i f f s ’ hous e .

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