Jetton Developments, LLC v. Estate of Dorothy Huddleston

CourtCourt of Appeals of Tennessee
DecidedDecember 21, 2023
DocketM2023-00026-COA-R3-CV
StatusPublished

This text of Jetton Developments, LLC v. Estate of Dorothy Huddleston (Jetton Developments, LLC v. Estate of Dorothy Huddleston) 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
Jetton Developments, LLC v. Estate of Dorothy Huddleston, (Tenn. Ct. App. 2023).

Opinion

12/21/2023 IN THE COURT OF APPEALS OF TENNESSEE AT NASHVILLE August 22, 2023 Session

JETTON DEVELOPMENTS, LLC v. ESTATE OF DOROTHY HUDDLESTON ET AL.

Appeal from the Chancery Court for Sumner County No. 2021CV-97 Louis W. Oliver, Chancellor ___________________________________

No. M2023-00026-COA-R3-CV ___________________________________

A limited liability company filed suit in relation to a piece of real property for which the company had executed an agreement to purchase. Although closing did not occur by the time stated in the executed agreement, the trial court ultimately held that the opposing side in this case was estopped from denying that the contract had been extended. Discerning no error, we affirm.

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

ARNOLD B. GOLDIN, J., delivered the opinion of the Court, in which KENNY ARMSTRONG and CARMA DENNIS MCGEE, JJ., joined.

Beth A. Garrison, Hendersonville, Tennessee, for the appellants, The John S. and Dorothy O. Huddleston Revocable Living Trust, The Estate of Dorothy Huddleston, Roger Huddleston, Claudia Neely, and Janice Knox.

Joseph B. Freedle, Gallatin, Tennessee, for the appellee, Jetton Developments, LLC.

OPINION

BACKGROUND

This appeal arises from a real estate contract executed by Dorothy Huddleston (“Mrs. Huddleston”) and Jetton Developments, LLC (“Jetton”). Although the property at issue was actually in a revocable living trust and not formally owned by Mrs. Huddleston at the time the contract with Jetton was executed, we note that the trial court made a determination during the pendency of this case that Mrs. Huddleston, a trustee of the trust, had the power to bind the trust, holding specifically as follows on the matter: “The purchase and sale agreement was validly entered into by Mrs. Huddleston as sole Settlor, sole Trustee, and sole Beneficiary [and she] had the power to sign the contract, and bind herself and the Trust.” There does not appear to be any dispute on appeal regarding the propriety of this ruling; instead, the controversy before us concerns Jetton’s efforts to acquire the subject property notwithstanding the fact that closing did not occur on or before the stated closing date in the contract. With that in mind, our overview of the facts of this case will be focused on that matter and the events that occurred subsequent to the written contract’s execution.1

Under the contract, which, among other things, provided that it was “for the benefit of, and . . .binding upon, the parties hereto, their heirs, successors, legal representatives and assigns,” the listed closing date was May 3, 2021. In advance of that date, on April 8, 2021, Chad Wilson, the seller’s agent, was contacted by someone from Jetton who wanted to inquire whether Mrs. Huddleston would extend the closing date. According to Mr. Wilson, Jetton was “comfortable” to close on the date in the contract but nonetheless “would really like to have an extension.” Mr. Wilson contacted Mrs. Huddleston by phone the same day to pose the question of an extension to her, and per his testimony, Roger Huddleston,2 who was Mrs. Huddleston’s son, “was in the background” on the call.3 According to Mr. Wilson, Mrs. Huddleston agreed to a thirty-day extension He further testified that Roger had stated that an extension would be a good idea. Jetton was informed on the same date that Mrs. Huddleston had agreed to an extension.

Although a member of Jetton thereafter prepared a written document memorializing an extension of the closing date, digitally signed that document, and emailed it to Mr. Wilson, Mr. Wilson did not locate the document until about a week later when he checked his spam folder. Mr. Wilson then reached out to Mrs. Huddleston in an effort to get her to sign the extension paperwork Jetton had prepared, but by the time he got in touch with her, he had become exposed to COVID. Discussing this in his testimony, Mr. Wilson explained as follows:

And the next time I tried to call her I had found out that I had been exposed to COVID, and I called to tell her that. And I said as soon as I . . . get out of my quarantine because I don’t want to take a chance. COVID had run through our office, so I didn’t want to take a chance on her just going up

1 Given that focus, we dispense with an overview regarding the procedural filings that precipitated the trial court’s ruling that Mrs. Huddleston had the power to sign the contract in this case and bind the trust. 2 Herein, we will refer to Mr. Huddleston as Roger for ease of reference and to provide a clear contrast from the references made to Mrs. Huddleston. We intend no disrespect. 3 Roger claimed that he was in another room during the call and did not hear the conversation. He testified that his mother told him that Mr. Wilson wanted her to sign an extension; he further testified that his mother did not tell him that she had agreed to an extension. -2- to the office and signing it.

By the time that that was over with, I had called a couple times and missed her, back and forth. I finally got a hold of her, and I was busy that day and I said I will call you back later on in the week and we will meet and sign. And she said okay.

The extension paperwork was never formally signed by Mrs. Huddleston, however, as she died at Roger’s home in Indiana on April 30, 2021. According to Roger, he and his mother had only been there for a few days when she passed. At the oral argument of this matter, counsel for Roger stated that Mrs. Huddleston’s actions did not indicate that she was preparing to come back for a May 3 closing date.

As we mentioned earlier, the contract provided that it was “binding upon . . . the parties hereto, their heirs, successors, legal representatives and assigns,” and of note, Roger was the successor trustee of the trust that held the subject property. Subsequent to his mother’s death, Roger represented that he was going to honor the contract, with Mr. Wilson testifying that Roger had called him on the date of Mrs. Huddleston’s passing and discussed the subject of selling the property. Mr. Wilson also testified that he had spoken with Roger again “at some point after that.” Then, “maybe a month later” according to Mr. Wilson, Roger had informed him that he no longer wanted to sell the property.

According to Roger, he did not call Mr. Wilson on the date of his mother’s death, but he did acknowledge that he had communicated his intention to follow through with the contract. He even confirmed that he had done so subsequent to the May 3, 2021, closing date that was originally scheduled in the written contract. He specifically asserted that he had called Mr. Wilson on May 10, 2021, and communicated his intention at that time to follow through with the contract. He further testified that he was aware that Jetton was working on permits and taking steps to pursue closing. With respect to that concern, evidence was introduced at the trial regarding substantial expenses Jetton incurred under the expectation that the contract would be closed. As will be discussed later in this Opinion, the trial court would ultimately find that Jetton had continued to work on issues for the development of the property after Mrs. Huddleston’s death and had spent thousands of dollars post-May 3. Members of Jetton testified that they had labored with the understanding that an extension was in place, and again, Roger testified that he was aware that Jetton was continuing to pursue efforts towards closing as of May 10, 2021, the date he claims he expressed his intent to follow through with the contract. A closing never happened, however, as Roger then later communicated that he would not honor the contract.

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Related

Beazley v. Turgeon
772 S.W.2d 53 (Court of Appeals of Tennessee, 1988)
Watson v. Watson
196 S.W.3d 695 (Court of Appeals of Tennessee, 2005)
Southern States Development Co. v. Robinson
494 S.W.2d 777 (Court of Appeals of Tennessee, 1972)
Wells v. Tennessee Board of Regents
9 S.W.3d 779 (Tennessee Supreme Court, 1999)
Cobble v. Langford
230 S.W.2d 194 (Tennessee Supreme Court, 1950)
Church of Christ v. McDonald
171 S.W.2d 817 (Tennessee Supreme Court, 1943)

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Jetton Developments, LLC v. Estate of Dorothy Huddleston, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jetton-developments-llc-v-estate-of-dorothy-huddleston-tennctapp-2023.