Mary Catherine Gentry v. Tagner H. Bailey

CourtCourt of Appeals of Tennessee
DecidedFebruary 27, 2012
DocketE2011-01278-COA-R9-CV
StatusPublished

This text of Mary Catherine Gentry v. Tagner H. Bailey (Mary Catherine Gentry v. Tagner H. Bailey) 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
Mary Catherine Gentry v. Tagner H. Bailey, (Tenn. Ct. App. 2012).

Opinion

IN THE COURT OF APPEALS OF TENNESSEE AT KNOXVILLE February 1, 2012 Session

MARY CATHERINE GENTRY v. TAGNER H. BAILEY ET AL.

Appeal by Permission from the Chancery Court for Hamilton County No. 07-0368 Jeffrey M. Atherton, Chancellor

No. E2011-01278-COA-R9-CV - Filed February 27, 2012

A jury awarded Mary Catherine Gentry (“the Plaintiff”) compensatory damages of $80,000 against four defendants involved in the sale to her of a condominium. It also awarded punitive damages in the amount of $30,000 – $10,000 each against three of the four defendants. The defendants (collectively referred to herein as “the Defendants”) are Battery Place Condominiums, LLC, the owner of the complex (“the Owner”); Tagner H. Bailey, the builder of the complex (“the Builder”); Gina Sakich, the realtor who handled the transaction (“the Realtor”); and Realty Center of Chattanooga, Inc., the agency for which the Realtor worked (“the Agency”). Before the trial court entered judgment on the verdict, the Builder and the Owner renewed their motion for directed verdict. The trial court entered an order on March 10, 2010, that purports to (1) grant a directed verdict on the issue of punitive damages; (2) grant the motion for directed verdict on the issue of compensatory damages; (3) grant a new trial limited to compensatory damages; and (4) deny the motion for directed verdict as to reasonable reliance. Thereafter the chancellor who presided over the trial retired and a new chancellor was appointed. Numerous motions and hearings later, the new chancellor entered an order setting the case for trial; the order also modified, pursuant to Tenn. R. Civ. P. 60.01, the first chancellor’s March 10, 2010, order by deleting the earlier order’s grant of a directed verdict as to compensatory damages. The trial court later granted the Tenn. R. App. P. 9 application of the Defendants and stayed all proceedings pending appeal. We likewise granted the Defendants’ request for an interlocutory appeal. Finding no error in the trial court’s judgment, we affirm.

Tenn. R. App. P. 9 Interlocutory Appeal by Permission; Judgment of the Chancery Court Affirmed; Case Remanded

C HARLES D. S USANO, J R., J., delivered the opinion of the Court, in which D. M ICHAEL S WINEY and J OHN W. M CC LARTY, JJ., joined. Sean W. Martin and Blair Bennington Cannon, Chattanooga, Tennessee, for the appellants, Gina Sakich and Realty Center of Chattanooga, Inc.

Barry L. Abbott, Chattanooga, Tennessee, for the appellants, Tagner H. Bailey and Battery Place Condominiums, LLC.

Pamela R. O’Dwyer and Randall D. Larramore, Chattanooga, Tennessee, for the appellee, Mary Catherine Gentry.

OPINION

I.

A statement in the Defendants’ brief captures the essence of the jury’s verdict:

[The Plaintiff] successfully convinced the jury that the [D]efendants misrepresented her condominium as a two bedroom unit when it was only a one bedroom with study and that as a one bedroom with study it was worth $80,000 less than what she paid at the time of purchase.

The jury found that all defendants, with the exception of the Realtor, were guilty of intentional misrepresentation and it awarded punitive damages of $10,000 each against the other three defendants for a total of $30,000. The jury also found that all of the defendants violated the Tennessee Consumer Protection Act, Tenn. Code Ann. §§ 47-18-101 et seq. (2001 & Supp. 2011). Chancellor Howell N. Peoples presided over the trial. It lasted approximately one week.

The Plaintiff submitted a proposed judgment on the jury verdict, to which the Defendants objected. The Agency filed a renewed motion for directed verdict on the sole basis that punitive damages could not be awarded against it, as a principal, when its agent, the Realtor, had been absolved of liability for these damages. The Builder and the Owner then renewed their joint motion for directed verdict. They asserted that the punitive damages award did not satisfy the prescriptions of Hodges v. S.C. Toof & Co., 833 S.W.2d 896 (Tenn. 1992); that the Plaintiff failed to prove her damages; and that she failed to prove that she justifiably relied upon the Defendants’ misrepresentations. Chancellor Peoples heard argument on the pending motions on February 18, 2010, and announced his ruling from the bench. The court first stated that there was evidence from which the jury could have found “that an intentional misrepresentation was made,” but that it was not clear and convincing. Therefore, the court granted the motion for directed verdict as to punitive damages.

-2- Concerning the issues of compensatory damages and reasonable reliance, the court stated the following:

On the issue of compensatory damages, we have the testimony of the Plaintiff, Ms. Gentry, the testimony of Mr. Rominger [the Plaintiff’s expert], and the testimony of Mr. Tindell [the Defendants’ expert]. At the time the Plaintiff gave her deposition, she didn’t know what the value of her unit was.

* * *

She, apparently, learned, sometime between her deposition and trial, what she believed to be information sufficient to state the value of her unit.

Mr. Rominger relied upon pre-construction contracts for reaching his value. . . .

Mr. Tindell’s testimony could be called into question because of his relationship with [the Builder] from a personal standpoint.

In the opinion of the Court, the Plaintiff’s evidence regarding the value of the property is insufficient, but so is the Defendant’s. The Plaintiff is required to prove the damages, and the testimony of Mr. Rominger and Ms. Gentry certainly does not do that. So the Court would find that the Plaintiff is entitled to a new trial on the issue of compensatory damages.

On the matter of reliance, the evidence is certainly contradictory on what was available to the Plaintiff to inform her about the unit. The jury was entitled to weigh that evidence and to reach a conclusion that her reliance was reasonable . . . . The jury made their finding and the Court will not reverse that finding. That would apply also to the Consumer Protection Act claims.

When asked why the court was granting a new trial when the parties were “not at a new trial motion yet,” the court stated “[t]hat’s what you’re looking at.” Counsel for the Plaintiff verbally articulated his understanding of the court’s ruling as follows:

-3- Based on what I understand, the order should be entered sustaining liability under the cause of actions found by the jury. We are awarded a new trial with regard to the level of compensatory damages. And with regard to punitive damages, that’s just a directed verdict. We don’t have any new trial regarding that issue?

The court responded, “[r]ight.” The court announced that the new trial would be with a new jury and suggested that counsel for the Builder and the Owner prepare an order.

The order, entered March 10, 2010, states, in pertinent part:

This cause . . . came before the Court on February 18, 2010 upon the Defendants’ (Tagner H. Bailey and Battery Place Condominiums, LLC) Renewed Motion for Directed Verdict pursuant to Rules 50 and 59 of the Tennessee Rules of Civil Procedure. The Court made certain findings and conclusions during the hearing . . . . The transcript of the findings and conclusions of the Court is attached hereto . . . and incorporated by reference herein.

WHEREFORE, . . . it is hereby,

ORDERED, ADJUDGED AND DECREED as follows:

1. The Defendants’ Motion for Directed Verdict with respect to the issue of punitive damages is GRANTED.

2.

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Bluebook (online)
Mary Catherine Gentry v. Tagner H. Bailey, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mary-catherine-gentry-v-tagner-h-bailey-tennctapp-2012.