Kennon v. Commercial Standard Insurance

376 S.W.2d 703, 52 Tenn. App. 521, 1963 Tenn. App. LEXIS 111
CourtCourt of Appeals of Tennessee
DecidedDecember 6, 1963
StatusPublished
Cited by6 cases

This text of 376 S.W.2d 703 (Kennon v. Commercial Standard Insurance) 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
Kennon v. Commercial Standard Insurance, 376 S.W.2d 703, 52 Tenn. App. 521, 1963 Tenn. App. LEXIS 111 (Tenn. Ct. App. 1963).

Opinion

AVERY, (P.J.,W.S.).

This is a suit from the Chancery Court of Henry County based upon an account for services rendered by the complainant below, John L. Kennon, d/b/a Kennon Adjustment Company against the defendant below, Commercial Standard Insurance Company, in an investigation of a claim under the Workmen’s Compensation Law of the State of Kentucky, filed by P. C. Faughn against the Murray Auto Parts Company. The total amount of the account is $3,005.62. The original bill alleges that the defendant:

[523]*523* * became indebted to tbe complainant on an open account for work, labor and services and moneys paid ont in connection witb certain litigation, investigation conducted by complainant for the defendant as an adjuster, as hereinafter detailed. ’

The answer admits that the referred to claim which is shown to be No. WC-165266 was referred to the complainant for handling, and the real defense is stated in the following words:

“ Defendant admits that it requested the services of the complainant in investigating and disposing of the claim, but denies that said services were of a reasonable value of $2,548.00, or that it was necessary for complainant to accrue out-of-pocket expense so that the total amount for services and expenses would total $3,005.62.”

The answer then denies that it agreed to pay claimant that amount and avers it is willing and able to pay complainant reasonable compensation for the services performed in connection with the claim.

The case was tried before Chancellor Wayne A. Cox, on depositions without a jury, and he decreed against the defendant below for $2500.00 and cost. The Chancellor did not file a memorandum opinion, and his decree simply recites:

“* * * complainant, John L. Kennon, d/b/a Kennon Adjustment Company was duly employed by the defendant, Commercial Standard Insurance Company, a foreign corporation domesticated and doing business by virtue of the laws of the State of Tennessee to adjust and represent the defendant in the [524]*524protection of their interest in Case No. 165266 occurring on September 24, 1956 at the Murray Auto Párts Company in Murray, Kentucky; that said litigation remained in progress for a period of approximately sixteen (16) months culminating in a decision or award by the Workmen’s Compensation Board of the State of Kentucky in the amount of Seven Hundred Thirty-nine Dollars and Seventy-seven ($739.77) Cents. That complainant spent much time and effort, and was out considerable expense, in the representation of the defendant in this cause and that although he submitted his detailed and itemized bill for his services in connection therewith, the defendant refused to recognize same or pay the reasonable value of the services which was rendered defendant. That the complainant’s services to the defendants are of the reasonable value of Twenty-five Hundred ($2500.00) Dollars, inclusive of hours spent in investigation, out of pocket expenses, office expenses, automobile expenses, long distance telephone calls and that the defendant has paid no amount whatsoever to the complainant for such services.
“IT IS THEREFORE ORDERED, ADJUDOED AND DECREED BY the Court that the complainant, John L. Kennon, d/b/a Kennon Adjustment Company, have and recover of the defendant, Commerical Standard Insurance Company, the sum of Two Thousand Five Hundred ($2,500.00) Dollars, and all the costs of the cause, for all of which execution is awarded. ’ ’

Defendant prayed an appeal from that decree, which was granted to this Court and has been perfected as [525]*525provided by law. Tlie error assigned in this Court is as follows:

“As assignment of error, appellant cites the failure of the learned Chancellor to give sufficient weight to the testimony offered by appellant as to the actual value of appellee’s services, as compared with the weight given appellee’s unsubstantiated testimony. Appellant avers that the failure of the learned Chancellor to award appellee the full amount demanded indicates a rejection of appellee’s theory of recovery and relegates his claim to one on the basis of quantum meruit, since appellant did not deny the amount of labor and expenses alleged to have been performed and incurred by appellee, and there is no other basis for awarding a reduced amount. This being the case, the appellee’s theory of recovery should have been totally disregarded and an award made on the basis of the expert testimony offered by the appellant as to the actual value of the services rendered.”

In the beginning we think the statement by counsel relative to the amount allowed by the Chancellor, could not have been on any other theory than that he undertook to arrive at a reasonable value for the services rendered, as rendered, and in a manner shown by the account filed, granting the complainant what he thought was a reasonable value for his services on a quantum meruit basis and thereby reduced the claim by $505.62, for if it was necessary in the investigation of the claim which had been forwarded to complainant to put in the time and incur the expense, as shown by the account filed, there could be no denial of the fact that the charges made, when applied to a per hour basis, a per meal basis, a per mile basis, telephonic and telegraphic expense, are reasonable. [526]*526Thus the position the Chancellor took, — since he filed no memorandum of how he arrived at the amount, either disbelieved the amount of services had been rendered as claimed, or he arrived at the conclusion that the services rendered in accord with the account filed, was not necessary in the investigation of the claim. Thus it would appear that the Chancellor either disregarded the expert testimony in its entirety and decided the issue on the basis of the evidence of the complainant alone, for there is no relationship whatever between the highest amount fixed by either of the expert witnesses, as will be shown hereinafter, and the amount of the account as filed by complainant or the amount of the judgment or decree as fixed by the Chancellor.

Regardless of how the Chancellor arrived at his conclusion, the case is here before us to be heard de novo with presumption of the correctness of the Chancellor’s decree unless the evidence preponderates against that decree. T. C. A. Section 27-301 and 27-303, and the many cases annotated under T. C. A. Section 27-303.

If we are to consider the testimony of the expert witnesses who were working in the same field of inquiry as the complainant, and in the same area as the complainant works, with four of such experts whose integrity is not questioned, giving testimony as will be hereinafter set out, and it is received as competent evidence in the case, even though it be governed by the rules applied to the testimony of experts, there can be no question but that the testimony and evidence in the case does preponderate against the degree of the Chancellor. This is particularly true in view of the condition of the testimony given by complainant as will be ■ further hereinafter referred to.

[527]*527The record shows that the file was first sent to complainant on the 18th day of October, 1956 by the Berry Insurance Agency in Murray, Kentucky. It is presumed that this is the agency through which the Workmen’s liability insurance was procured by Murray Auto Parts Company.

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Cite This Page — Counsel Stack

Bluebook (online)
376 S.W.2d 703, 52 Tenn. App. 521, 1963 Tenn. App. LEXIS 111, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kennon-v-commercial-standard-insurance-tennctapp-1963.