Kevin Campbell v. Klil, Inc.

CourtCourt of Appeals of Tennessee
DecidedAugust 29, 2022
DocketM2021-00947-COA-R3-CV
StatusPublished

This text of Kevin Campbell v. Klil, Inc. (Kevin Campbell v. Klil, Inc.) 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
Kevin Campbell v. Klil, Inc., (Tenn. Ct. App. 2022).

Opinion

08/29/2022 IN THE COURT OF APPEALS OF TENNESSEE AT NASHVILLE Assigned on Briefs July 1, 2022

KEVIN CAMPBELL v. KLIL, INC. ET AL.

Appeal from the Circuit Court for Williamson County No. 2020-CV-393 James G. Martin, III, Judge ___________________________________

No. M2021-00947-COA-R3-CV ___________________________________

Homeowner appeals the trial court’s decision to not award attorney’s fees after an action to enforce a construction contract. Trial court found the provision to be unenforceable based on its undefined “where applicable” language. Applying the rules of contract construction, we conclude that this provision is enforceable and entitles the homeowner to an award of reasonable attorney’s fees in connection with this action. We reverse and remand for further proceedings to determine reasonable attorney’s fees.

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

J. STEVEN STAFFORD, P.J., W.S., delivered the opinion of the court, in which FRANK G. CLEMENT, JR., P.J., M.S., and THOMAS R. FRIERSON, II, J., joined.

Michele McGill, Franklin, Tennessee, for the appellant, Kevin Campbell.

Ben Powers, Franklin, Tennessee, for the appellees, KLIL, Inc., Kemp Outdoor Solutions, Inc., and James R. Kemp.

OPINION

I. FACTUAL AND PROCEDURAL HISTORY

This appeal stems from a breach of contract action, with the only remaining issue involving the interpretation of a contractual provision regarding attorney’s fees.

In August 2017, homeowner Kevin Campbell (“Mr. Campbell”) contracted with James Kemp, as owner of KLIL, Inc. d/b/a Kemp Outdoor Solutions, Inc., (collectively, “Appellee”)1 for an outdoor remodeling project at Mr. Campbell’s home. The contract included an attorney’s fee provision: “Should Contractor or Customer be required to engage the services of an attorney in connection with this Contract, Contractor or Customer shall be entitled to reasonable attorney’s fees or collection fees, where applicable.” Neither party disputes that Appellee was the drafter of the contract. Work on the project began in October 2017 and was to include installation of a covered patio, fireplace and outdoor kitchen, and various electrical and plumbing features.

As the construction progressed, Mr. Campbell alerted Appellee to various workmanship and construction problems, culminating in September 2018 when water began leaking into Mr. Campbell’s dining room. Efforts were made by Appellee to address Mr. Campbell’s complaints, but the parties could not fully resolve the issues. As a result, Mr. Campbell filed a civil warrant for breach of warranty against Appellee in the General Sessions Court for Williamson County in December 2019. Judgment was entered for Appellee. Mr. Campbell then appealed the matter to the Circuit Court for Williamson County (“the trial court”) in August 2020 and amended his complaint to include consumer protection, breach of contract, and breach of warranty causes of action, as well as a request for attorney’s fees under both the consumer protection statute and the contract.

At trial on May 20, 2021, the trial judge ruled from the bench, finding a failure by Appellee to complete the contract in a workmanlike manner and unfair and deceptive practices under the Consumer Protection Act, but no severe deception or bad faith. No statutory attorney’s fees were awarded. Judgment was entered in favor of Mr. Campbell in an order entered July 1, 2021, with the issue of contractual attorney’s fees reserved pending further briefing.2

After reviewing the parties’ briefs on the matter, the trial court found the term “where applicable” in the fee provision to be undefined so as to “not create a right to recover attorney’s fees under the facts and circumstances of this case,” and issued an order denying Mr. Campbell’s request for attorney’s fees on July 19, 2021. Mr. Campbell filed a notice of appeal to this Court on August 20, 2021.

1 The Defendants/Appellees are arguably separate entities. However, the record in this case does not clearly distinguish between use of “Kemp” as the collective defendants and Mr. Kemp individually. Because the Defendants/Appellees do not appear to assert in this appeal that they should be treated as disparate for liability purposes, they have retained the same counsel and submitted only collective pleadings, and the trial court found Mr. Kemp personally liable for the damages awarded to Mr. Campbell under Tennessee Code Annotated section 62-6-136(c), we will use the term “Appellee” to refer to Mr. Kemp and his businesses throughout for ease of reference. 2 The trial court “recognize[d] that the Contact contains an attorney[’s fee] provision and that the provision contains the word shall” and that precedent requires enforcement of such provisions. However, the provision at issue here ends with the words “where applicable,” and the trial court “question[ed] the meaning and impact of this language on the Court[’]s authority to award fees.” -2- II. ISSUE PRESENTED

Mr. Campbell raises for review only the issue of “whether the trial court erred in denying Mr. Campbell’s claim for an award of attorney fees pursuant to the attorney fee provision contained in the parties’ contract.”3 No issues for appeal have been raised by Appellee.

III. STANDARD OF REVIEW

Because this case involves the interpretation and enforcement of a written contract, the following principles are applicable:

In ‘resolving disputes concerning contract interpretation, our task is to ascertain the intention of the parties based upon the usual, natural, and ordinary meaning of the contractual language.’ Guiliano v. Cleo, Inc., 995 S.W.2d 88, 95 (Tenn. 1999). This determination of the intention of the parties is generally treated as a question of law because the words of the contract are definite and undisputed, and in deciding the legal effect of the words, there is no genuine factual issue left for a jury to decide. 5 Joseph M. Perillo, Corbin on Contracts, § 24.30 (rev. ed. 1998); Doe v. HCA Health Services of Tenn., Inc., 46 S.W.3d 191, 196 (Tenn. 2001). A court’s initial task in construing a contract is to determine whether the language of the contract is ambiguous. Once found to be ambiguous, a court applies established rules of construction to determine the parties’ intent. ‘Only if ambiguity remains after the court applies the pertinent rules of construction does [the legal meaning of the contract] become a question of fact’ appropriate for a jury. Smith v. Seaboard Coast Line R.R. Co., 639 F.2d 1235, 1239 (5th Cir. 1981).

Planters Gin Co. v. Fed. Compress & Warehouse Co., 78 S.W.3d 885, 890 (Tenn. 2002).

IV. ANALYSIS

Tennessee follows the American Rule regarding attorney’s fees. Cracker Barrel Old Country Store, Inc. v. Epperson, 284 S.W.3d 303, 308 (Tenn. 2009). The Rule “reflects the idea that public policy is best served by litigants bearing their own legal fees regardless of the outcome of the case.” House v. Est. of Edmondson, 245 S.W.3d 372, 377 (Tenn. 2008). Under the American Rule, a party may recover attorney’s fees “only if: (1) a contractual or statutory provision creates a right to recover attorney fees; or (2) some

3 Because Mr.

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Kevin Campbell v. Klil, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/kevin-campbell-v-klil-inc-tennctapp-2022.