Kozy v. Werle

902 S.W.2d 404, 1995 Tenn. App. LEXIS 117
CourtCourt of Appeals of Tennessee
DecidedFebruary 24, 1995
StatusPublished
Cited by26 cases

This text of 902 S.W.2d 404 (Kozy v. Werle) 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
Kozy v. Werle, 902 S.W.2d 404, 1995 Tenn. App. LEXIS 117 (Tenn. Ct. App. 1995).

Opinion

OPINION

TODD, Presiding Judge.

The defendant/third-party plaintiff, Robert W. Werle, has appealed from orders awarding judgments against him and in favor of Stephen J. Kozy, plaintiff, for $7,500 plus $2,500 fee, and dismissing Werle’s third-par *406 ty action against William E. McDonald, Jr., third-party defendant.

On appeal, defendant presents the following issues:

1. Whether the trial judge erred in directing a verdict for the plaintiff in a suit on a note and directing a verdict for the third-party defendant at the conclusion of all the testimony.
2. Whether the court erred in attempting to establish a “reasonable attorney fee” on the note without a jury when a jury was timely demanded.

This action was brought in General Sessions Court for principal of $7,500.00 and attorneys’ fees provided in a note. Upon removal to the Circuit Court, defendant filed a jury demand and answered, admitting his signature on the note and alleged that his signature was obtained by misrepresentation of plaintiff and William E. McDonald.

By leave of Court, defendant joined his answer to a third-party complaint against William E. McDonald who answered denying liability and asserting the defense of statute of limitations.

On February 4, 1994, the Trial Court entered the following order:

This cause came to be heard before Judge Hamilton Y. Gayden, Jr., and a duly empaneled jury on January 26, 1994, and at the close of all the proof the plaintiff and third-party defendant having moved for a directed verdict in their favor on all issues and the Court being of the opinion that the motion should be granted,
It is ordered that the plaintiff, Stephen J. Kozy, have and recover of the defendant, the sum of $7,500.00 plus attorney fees and the costs of the cause. Plaintiffs attorney shall submit a motion and affidavit regarding the amount of attorney’s fees requested and the Court will establish fees.

Thereafter, counsel for plaintiff filed an application for $3,900.75 fees supported by affidavit of details.

On April 29, 1994, the Trial Court entered the following order:

A hearing was conducted on the 22nd day of April, 1994, on the motion of the defendant, Robert W. Werle, to strike plaintiffs application for attorney’s fees. On defendant’s motion, plaintiffs response, arguments of counsel, and the briefs submitted by the parties, the Court finds that said motion is not well taken and is hereby overruled. Plaintiffs counsel shall set a hearing date for a hearing on the plaintiffs application for attorney’s fees and the amount of fees to be awarded shall be determined by the Trial Judge.

Thereafter, the Trial Court awarded $2,500 attorney’s fees and dismissed defendant’s third-party complaint.

-First Issue: Directed Verdict-

In ruling upon a motion for directed verdict the trial judge is required to take the strongest legitimate view of evidence opposing a directed verdict and to overrule the motion unless a reasonable person could draw only one conclusion from the evidence, and that in accordance -with the motion. Crosslin v. Alsup, Tenn.1980, 594 S.W.2d 379; Smith v. Inman Realty Co., Tenn.App. 1992, 846 S.W.2d 819.

There is uncontradicted evidence of the following facts:

William E. McDonald, Jr., is an investment counsellor who specializes in soliciting investors to contribute “seed money” for the development of promising investment projects.

Plaintiff and defendant are investors who advance such “seed money” in the hope of “getting in on the ground floor” of profitable investments.

Defendant visited and was impressed by a restaurant in Tampa, Fla., named “the Kapok Tree.” He discussed with the owners a license for use of the name in opening a similar restaurant in Nashville. He returned to Nashville, advanced and obtained from others “seed money,” which was used to promote the idea. The initial effort failed, but he promised the investors that a new effort would be made and, if it were successful, they would participate.

Defendant McDonald undertook to solicit new “seed money” which was furnished by plaintiff, defendant and others and deposited to the credit of “Kapok Tree, Inc.,” although no such corporation was ever organized. The money was disbursed by McDonald for development expenses, largely incurred by defendant.

*407 "When the initial funds were exhausted, McDonald undertook to secure additional “seed money5’ from investors. "When he approached plaintiff he was told that plaintiff would advance no more without security. McDonald promised to secure security and later reported to plaintiff that he would get a note to secure $7,500 of plaintiffs investment. Thereupon plaintiff made an additional advancement of “seed money” to the “Kapok Tree, Inc.’s” development fund. McDonald then presented to plaintiff for his signature the following note:

$7,500.00 Nashville, Tennessee, July 1, 1988 for value received, we jointly and severally promise to pay to the order of Stephen J. Kozy the sum of Seven thousand five hundred and 00/100 dollars to be paid as follows: in full on September 30, 1988, non-interest bearing This note is secured by development fees from Kapok Tree, Inc., a Tennessee corporation.
If any installment of this note and/or the payment of interest as provided herein is not paid at the time and place specified herein, the entire principal and interest unpaid shall be due and payable at once at the election of the holder of this note. All parties hereto whether makers, endorsers, sureties, guarantors, or otherwise, hereby waive notice of dishonor, protest, notice of protest and notice of non-payment of this obligation and further waive all exemptions whether homestead, exempt property or otherwise to which they or any of them may now or hereafter be entitled under the laws of this State or any other State. Each of the undersigned hereby agree that additional signatures may be added, either above or below any signatures hereto.
If placed in the hands of an attorney for collection, or if placed in judgement, we agree to pay a reasonable attorney’s fee.
/s/ Robert W. Werle
Address Name Address
/in prinV Robert W. Werle
Address Name Address
(in print) John Goodhue, Attorney for Kapok Tree, Inc.
Turnley & Goodhue
First American Center
Nashville, Tennessee 37238

There is no evidence that there was any discussion as to the capacity in which defendant signed the note.

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Cite This Page — Counsel Stack

Bluebook (online)
902 S.W.2d 404, 1995 Tenn. App. LEXIS 117, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kozy-v-werle-tennctapp-1995.