Kanta Keith v. Gene Ervin Howerton

CourtCourt of Appeals of Tennessee
DecidedNovember 13, 2002
DocketE2002-00704-COA-R3-CV
StatusPublished

This text of Kanta Keith v. Gene Ervin Howerton (Kanta Keith v. Gene Ervin Howerton) 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
Kanta Keith v. Gene Ervin Howerton, (Tenn. Ct. App. 2002).

Opinion

IN THE COURT OF APPEALS OF TENNESSEE AT KNOXVILLE November 13, 2002 Session

KANTA KEITH, ET AL. v. GENE ERVIN HOWERTON, ET AL.

Appeal from the Circuit Court for Knox County No. 1-685-98 Dale C. Workman, Judge

FILED DECEMBER 19, 2002

No. E2002-00704-COA-R3-CV

This case is on appeal for the second time. In the first appeal, we held that the defendants violated the Tennessee Consumer Protection Act (“the Act”)1 in certain pawn transactions with the plaintiffs. We remanded the case to the trial court for a determination of whether the plaintiffs were entitled to treble damages and attorney’s fees under the Act. Following a bench trial on these issues, the court below determined that the plaintiffs were not entitled to treble damages, but that they were entitled to a slight augmentation of their compensatory awards. In addition, the trial court awarded attorney’s fees and costs, in amounts which are substantially less than those claimed by counsel. The plaintiffs appeal, arguing that the trial court erred in refusing to award treble damages and in its award of fees and costs. By way of a separate issue, the defendants argue that the trial court erred in granting a declaratory judgment to the plaintiff, Kanta Keith (“Mr. Keith”), following the death of his wife, the plaintiff, Darlene Keith (“Mrs. Keith”). We affirm in part, vacate in part and remand.

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

CHARLES D. SUSANO, JR., J., delivered the opinion of the court, in which HERSCHEL P. FRANKS and D. MICHAEL SWINEY, JJ., joined.

Donald K. Vowell and Elizabeth K. Johnson, Knoxville, Tennessee, for the appellants, Kanta Keith and Walter Jackson.

Craig L. Garrett, Maryville, Tennessee, for the appellees, Gene Ervin Howerton and Easy Money, Inc.

OPINION

1 Tenn. Co de A nn. § 4 7-18 -101 , et seq. (2001 & Supp. 2002 ). I.

The facts of this case are set forth in detail in our previous opinion, Keith v. Howerton, C/A No. E2000-02703-COA-R3-CV, 2001 Tenn. App. LEXIS 646 (Tenn. Ct. App. E.S., filed Aug. 28, 2001). Following the bench trial that preceded the first appeal, the trial court held that the plaintiffs failed to show an ascertainable loss and therefore failed to prove that the defendants had violated the Act. However, the trial court found that the plaintiffs were entitled to receive the fair market value of their pawned, and later stolen, items. Accordingly, the court granted the plaintiff, Walter Jackson (“Mr. Jackson”), an award of $1,100 and awarded the plaintiffs, Mr. and Mrs. Keith, $2,250.

On appeal, we held that the plaintiffs did in fact show an ascertainable loss. We further held that the defendants had violated the Tennessee Pawnbrokers Act of 19882 by failing to offer any monetary reimbursement to the plaintiffs, and that this violation constituted a violation of the Act. With respect to the trial court’s award of damages, we held that the award to Mr. and Mrs. Keith made no provision for the repayment of the money loaned and the charges incurred under certain of their pawn contracts, which amounts totaled $683. We therefore adjusted the Keiths’ award from $2,250 to $1,566.80. Finally, we remanded the case to the trial court to determine “whether the [p]laintiffs should receive treble damages and attorney fees.” Keith, 2001 Tenn. App. LEXIS 646, at *33.

On remand, the trial court determined that an award of treble damages was inappropriate in this case, choosing instead to augment the plaintiffs’ awards. The trial court increased the award to Mr. Jackson from $1,100 to $1,750. Similarly, the trial court increased the Keiths’ award from $1,566.80 to $2,010.80. In addition, the court awarded Mr. Jackson and the Keiths $169.95 each in discretionary costs. These costs included the cost of the parties’ depositions, but did not include the cost of preparing the trial transcript for the appeal. The court also awarded attorney’s fees of $2,000, $1,000 for the Keiths and a like amount for Mr. Jackson.

The trial court was also faced with the issue of the death of Mrs. Keith, who passed away two and one half weeks before the last hearing. Mr. Keith filed a motion for a declaratory judgment, alleging that Mrs. Keith had died on December 28, 2001, and that all of her property, “including the cause of action and judgment herein, was held by the entirety.” Therefore, Mr. Keith reasoned, said interest and judgment immediately passed by operation of law to him upon the death of Mrs. Keith. Accordingly, Mr. Keith asked the trial court to declare that he is the sole owner of Mrs. Keith’s cause of action and resulting judgment. No one was substituted in Mrs. Keith’s place. The trial court granted the declaratory judgment, holding that the judgment entered in favor of Mr. Keith “includes the interest of his late wife Darlene Keith, which, as held in the separately entered declaratory judgment, passed to Mr. Keith by operation of law.”

On appeal, the plaintiffs raise two issues for our consideration:

2 Tenn. Co de A nn. § 4 5-6-2 01, et seq. (2000 & Supp. 2002 ).

-2- 1. Whether the trial court erred in augmenting the plaintiffs’ awards, rather than awarding treble damages.

2. Whether the trial court erred in its award of attorney’s fees and costs.

As an additional issue, the defendants raise the question of whether the trial court erred in granting Mr. Keith a declaratory judgment and in holding that Mrs. Keith’s judgment passed to him by operation of law.

II.

In this non-jury case, our review is de novo upon the record, with a presumption of correctness as to the trial court’s factual determinations, unless the evidence preponderates against those findings. Tenn. R. App. P. 13(d); Union Carbide Corp. v. Huddleston, 854 S.W.2d 87, 91 (Tenn.1993); Wright v. City of Knoxville, 898 S.W.2d 177, 181 (Tenn.1995). The trial court's conclusions of law, however, are accorded no such presumption. Campbell v. Florida Steel Corp., 919 S.W.2d 26, 35 (Tenn.1996); Presley v. Bennett, 860 S.W.2d 857, 859 (Tenn.1993).

III.

The plaintiffs argue that the trial court erred in refusing to award the plaintiffs treble damages, and in choosing instead to augment the plaintiffs’ award. We disagree.

With respect to treble damages under the Act, Tenn. Code Ann. § 47-18-109(a) (2001) provides, in pertinent part, as follows:

(3) If the court finds that the use or employment of the unfair or deceptive act or practice was a willful or knowing violation of this part, the court may award three (3) times the actual damages sustained and may provide such other relief as it considers necessary and proper.

(4) In determining whether treble damages should be awarded, the trial court may consider, among other things:

(A) The competence of the consumer or other person;

(B) The nature of the deception or coercion practiced upon the consumer or other person;

(C) The damage to the consumer or other person; and

-3- (D) The good faith of the person found to have violated the provisions of this part.

The plaintiffs argue that the language of (a)(3) should be interpreted to mean that, if a trial court determines that the award of damages should be increased, its only option is to award treble damages, and that a mere augmentation of an award is not contemplated by the statute.

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Kanta Keith v. Gene Ervin Howerton, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kanta-keith-v-gene-ervin-howerton-tennctapp-2002.