I N THE COURT OF APPEALS
FILED June 5, 1997
Cecil Crowson, Jr. RI CHARD GAUSE d / b / a ROOFWORKS ) SEVI ER CHANCERY Appellate C ourt Clerk OF TENNESSEE, ) C. A. NO. 0 3 A0 1 - 9 7 0 7 - CH- 0 0 0 0 1 ) Pl a i n t i f f - Ap p e l l a n t ) ) ) ) ) ) vs . ) HON. CHESTER R. RAI NWATER, J R. ) CHANCELLOR ) ) ) ) ) J ANI CE COLE d / b / a RI VERSI DE ) AFFI RMED I N PART, VACATED I N SHOP a n d J ERRY OGLE, ) PART, AND REM ANDED. ) De f e n d a n t s - Ap p e l l e e s )
ROBERT L. OGLE, J R. , Se v i e r v i l l e f o r Ap p e l l a n t .
J EFF D. RADER, Og l e , W n n & Ra d e r , Se v i e r v i l l e , f or Ap p e l l e e s . y
O P I N I O N
M M r r a y, J . c u
Th i s c a s e o r i g i n a t e d a s a n a c t i o n t o e n f o r c e a l i e n f o r wo r k a n d
ma t e r i a l s p u r s u a n t t o T. C. A. § 6 6 - 1 1 - 1 2 6 . Th e p l a i n t i f f a l l e g e d t h a t
h e h a d f u r n i s h e d e q u i p me n t , l a b o r a n d ma t e r i a l s wh i c h we r e u s e d f o r
i mp r o v e me n t s o n t h e p r o p e r t y wh i c h t h e d e f e n d a n t , Co l e o c c u p i e d a s
l e s s e e a nd t he de f e nda nt , Og l e , wa s a n o wn e r . Th e d e f e n d a n t , Og l e , f i l e d a n a n s we r , ge ne r a l l y s t a t e d t ha t h e o wn e d a n i n t e r e s t i n t he
s ubj e c t p r o p e r t y b u t wa s wi t h o u t s u f f i c i e n t k n o wl e d g e o r i n f o r ma t i o n
t o f or m a be l i e f a s t o t he t r ut h of t he a l l e ga t i ons s e t f or t h i n t he
c o mp l a i n t .
On t h e o t h e r h a n d , d e f e n d a n t , Co l e , f i l e d a n a n s we r a n d c o u n t e r -
c l a i m. I n h e r a n s we r Co l e a d mi t t e d t o h a v i n g a l e a s e h o l d i n t e r e s t i n
t he pr ope r t y. Sh e f ur t he r a d mi t t e d t ha t s he ha d e nt e r e d i nt o a n
a g r e e me n t wi t h t h e p l a i n t i f f t o p r o v i d e c e r t a i n l a b o r a n d ma t e r i a l s t o
r e pa i r t he r oof of t h e b u i l d i n g wh i c h s h e wa s l e s s e e a n d wh i c h wa s
oc c upi e d by a s u bl e s s e e . Th e s u b l e s s e e oper a t e d a bus i ne s s on t he
p r e mi s e s k n o wn a s Ri v e r s i d e Gi f t Sh o p .
In he r c o u n t e r c l a i m, t he de f e nda nt , Co l e , a l l e ge d t ha t t he
p l a i n t i f f b r e a c h e d t h e i r a g r e e me n t a n d f a i l e d t o p e r f o r m t h e l a b o r i n
a good wo r k ma n l i k e ma n n e r a nd t ha t as a r e s ul t t he i nt e r i or a nd
c o n t e n t s o f t h e b u i l d i n g we r e d a ma g e d a n d s h e wa s r e q u i r e d t o p a y f o r
d a ma g e s s u s t a i n e d b y h e r t e n a n t . Sh e s o u g h t d a ma g e s f r o m t h e p l a i n t i f f
i n t h e a mo u n t o f $ 1 2 , 0 0 0 . 0 0 . By a me n d me n t s h e i n c r e a s e d h e r d e ma n d f o r
d a ma g e s b y $ 4 , 0 0 0 . 0 0 .
1 Su b s e q u e n t l y , t h e c a s e wa s r e f e r r e d t o a s p e c i a l ma s t e r . Th e
s p e c i a l ma s t e r f o u n d t h a t t h e p l a i n t i f f h a d b r e a c h e d h i s c o n t r a c t by
f a i l u r e t o f i n i s h t h e wo r k a n d b y n e g l i g e n t l y d o i n g t h e wo r k a n d a s a
1 The plaintiff also filed a motion for summary judgment in which he sought to have the counterclaim dismissed because the property for which counter-plaintiff claimed damages was owned by a third party who is not a party to this action. The summary judgment was by agreement submitted to the Special Master for disposition along with all other matters. The matter was resolved adverse to the plaintiff. The chancellor later confirmed the findings of the master overruling the motion for summary judgment.
2 r e s ul t t h e r e wa s e x t e n s i v e d a ma g e t o t h e b u i l d i n g a n d i t s c o n t e n t s .
He f ound t ha t t he pl a i nt i f f wa s not e nt i t l e d to a j u d g me n t a nd
r e c o mme n d e d d i s mi s s a l o f t h e c o mp l a i n t . On t h e c o u n t e r c l a i m h e f o u n d
t ha t t he c ount e r - pl a i nt i f f ha d s us t a i ne d t he a l l e ga t i ons of he r
c ount e r c l a i m a nd wa s e nt i t l e d to d a ma g e s in t he t ot a l a mo u n t of
$10, 657. 21. Th e s p e c i a l ma s t e r f o u n d t h a t t h e d a ma g e s f o r r e p a i n t i n g
a nd r e c a r pe t i ng t ot a l e d $4, 417. 75.
Ex c e p t i o n s we r e f i l e d t o t h e ma s t e r ' s r e p o r t . Th e c h a n c e l l o r a t
t h e h e a r i n g o n t h e e x c e p t i o n s r e d u c e d t h e d a ma g e s f o r r e p a i n t i n g a n d
r e c a r pe t i ng t o $883. 55. He e n t e r e d a t o t a l j u d g me n t f o r t h e c o u n t e r -
p l a i n t i f f i n t h e a mo u n t of $7, 123. 01. Th e r e ma i n d e r o f t h e s p e c i a l
ma s t e r ' s r e p o r t wa s c o n f i r me d .
Fr o m t h i s j u d g me n t , t h e o r i g i n a l p l a i n t i f f h a s a p p e a l e d p r e s e n t -
i n g u s wi t h t h e f o l l o wi n g i s s u e s f o r r e v i e w:
1. W e t h e r t h e c o u r t e r r e d i n a d mi t t i n g e v i d e n c e i n t h e h r e c o r d o f wi t n e s s e s ( n o t t h e o wn e r s ) r e l a t i v e t o t h e v a l u e o f t h e me r c h a n d i s e a n d d a ma g e s t h e r e t o .
2. W e t h e r t h e c o u r t e r r e d i n n o t r e s t r i c t i n g t h e a mo u n t h o f d a ma g e s i n a c c o r d a n c e wi t h t h e p r o o f o f l o s s .
3. W e t h e r t h e c o u r t e r r e d i n f i n d i n g t h a t t h e r o o f wa s h d e f e c t i v e l y a p p l i e d a n d i n d e t e r mi n i n g d a ma g e s f o r b r e a c h o f wa r r a n t y .
4. W e t h e r t h e c o u r t e r r e d i n a wa r d i n g d a ma g e s f o r h me r c h a n d i s e wh e n t h e a p p e l l e e wa s n o t t h e o wn e r o f t h e me r c h a n d i s e a n d h a d n o c a u s e o f a c t i o n t h e r e f o r .
5. W e t he r t he c our t e r r e d i n h f i ndi ng appe l l a nt l i a bl e f o r d a ma g e t o t h e i n t e r i o r of t he bui l di ng i nc l udi ng c a r p e t i n g , wh i c h wa s t h e o b l i ga t i on unde r t he s ubl e a s e a g r e e me n t o f t h e s u b l e s s e e , La r r y Ut t a m, n o t a p a r t y t o t h i s l i t i ga t i o n .
3 W wi l l e fi rst l o o k t o o u r s t a n d a r d o f r e v i e w. Ou r s t a n d a r d o f
r e v i e w i n n o n j u r y c a s e s i s c o n t r o l l e d b y Ru l e 1 3 ( d ) , Te n n e s s e e Ru l e s
o f Ap p e l l a t e Pr o c e d u r e i . e . , " [ u ] n l e s s o t h e r wi s e r e q u i r e d b y s t a t u t e ,
r e vi e w of f i ndi ngs of f a c t by t he t r i a l c our t i n c i vi l a c t i ons s ha l l
be de novo upon t he r e c or d of t he t r i al c our t , a c c o mp a n i e d by a
p r e s u mp t i o n o f t h e c o r r e c t n e s s o f t h e f i n d i n g , u n l e s s t h e p r e p o n d e r a n c e
o f t h e e v i d e n c e i s o t h e r wi s e . " To t h e e x t e n t , h o we v e r , t h a t t h e r e i s
a c o n c u r r e n t f i n d i n g o f f a c t b y t h e s p e c i a l ma s t e r a n d c h a n c e l l o r , we
mu s t be g u i d e d b y T. C. A. § 27- 1- 113 a nd t he c a s e s c ons t r ui ng t ha t
s t a t u t o r y e n a c t me n t .
T. C. A. § 2 7 - 1 - 1 1 3 p r o v i d e s t h e p r o p e r s t a n d a r d f o r t h i s Co u r t t o f o l l o w wh e n r e v i e wi n g t h e f i n d i n g s o f a ma s t e r i n wh i c h a c h a n c e l l o r c o n c u r s : " W e r e t h e r e h a s b e e n a h c o n c u r r e n t f i n d i n g o f t h e ma s t e r a n d c h a n c e l l o r , wh i c h u n d e r t he pr i nc i pl e s now obt a i ni ng i s bi ndi ng on t he a ppe l l a t e c o u r t s , t h e Co u r t o f Ap p e a l s s h a l l n o t h a v e t h e r i g h t t o d i s t u r b s u c h f i n d i n g . " Th e c o n c u r r e n t f i n d i n g o f a ma s t e r a n d a c h a n c e l l o r h a s t h e s a me f o r c e a n d e f f e c t a s a j u r y v e r d i c t a p p r o v e d b y t h e t r i a l j u d g e . Co a t e s v . Th o mp s o n, 7 1 3 S. W 2 d 8 3 ( Te n n . Ap p . 1 9 8 6 ) , c i t i n g Sc h o e n v . J . C. Br a d f o r d . & Co . , 6 4 2 S. W 2 d 4 2 0 ( Te n n . Ap p . 1 9 8 2 ) ; Fe r r e l l v . El r o d , . 6 3 Te n n . Ap p . 1 2 9 , 4 6 9 S. W 2 d 6 7 8 ( 1 9 7 1 ) . Su c h a c o n c u r r e n c e . i s c onc l us i ve on a ppe a l unl e s s ( 1) t he i s s ue i s one not p r o p e r f o r r e f e r e n c e t o a ma s t e r , ( 2 ) t h e c o n c u r r e n c e i s b a s e d o n a n e r r o r o f l a w o r a mi x e d q u e s t i o n o f l a w a n d f a c t , or ( 3) t he c onc ur r e nc e i s not s uppor t e d by any ma t e r i a l e v i d e n c e . Co a t e s , s u p r a . Se e a l s o , St a g g s v . He r f f M t o r Co . , 2 1 6 Te n n . 1 1 3 , 3 9 0 S. W 2 d 2 4 5 ( 1 9 6 5 ) . Th u s , we o . mu s t a f f i r m t h e Ch a n c e l l o r u n l e s s o n e o f t h e s e t h r e e e xc e pt i ons a ppl i e s i n t hi s c a s e .
Ha y n e s v . W l s o n , ( Te n n . Ap p . Op i n i o n f i l e d a t Kn o x v i l l e , De c e mb e r 2 8 , i 1994. )
Un d e r t h e f a c t s i n t h i s c a s e , we f i n d t h a t t h e i s s u e s p r e s e n t e d
do not c o me wi t h i n a n y o f t h e t h r e e e x c e p t i o n s n o t e d a b o v e a n d we r e
p r o p e r i s s u e s t o r e f e r t o a Sp e c i a l M s t e r . Th e r e f o r e , t h e c o n c u r r e n t a
4 f i ndi ngs of t he Sp e c i a l M s t er a a nd cha nc e l l or ar e s ubj e c t to t he
" ma t e r i a l e vi de nc e r ul e . " 2 Ou r r e vi e w of t he r e c or d r e f l e c t s t ha t
t h e r e i s ma t e r i a l e v i d e n c e t o s u p p o r t t h e c o n c u r r e n t f i n d i n g s o f f a c t
c o n c e r n i n g l i a b i l i t y a n d t o s o me d a ma g e s . Th e o n l y i s s u e s wh i c h we
wi l l d i s c u s s a r e t h o s e wh e r e t h e c h a n c e l l o r d i s a g r e e d wi t h t h e s p e c i a l
ma s t e r o r wh e r e t h e r e wa s a n e r r o n e o u s a p p l i c a t i o n o f t h e l a w.
Th e f i r s t i s s u e d e a l s wi t h a p u r e q u e s t i o n o f l a w. Th e q u e s t i o n
p r e s e n t e d i s wh e t h e r a wi t n e s s , wh o i s n o t a n o wn e r o f p r o p e r t y ma y
t e s t i f y t o t h e v a l u e o f me r c h a n d i s e a n d d a ma g e s t o i t .
" [ A] wi t n e s s wh o i s f a mi l i a r wi t h t h e v a l u e o f p r o p e r t y o f t h e s a me
c h a r a c t e r ma y t e s t i f y t o t h a t va l ue . . . " W l s on v. i Br y a n t , 167
Te n n . 1 0 7 , 6 7 S. W 2 d 1 3 3 , 1 3 4 ( 1 9 3 4 ) . .
A wi t n e s s , M. r Ba i j u Ha r j a n i , t h e s u b l e s s e e ’ s s h o p ma n a g e r , wa s
a l l o we d to t es t i f y to t he va l ue of t he d a ma g e d me r c h a n d i s e ove r
pl a i nt i f f ' s obj e c t i on. We f i nd t hi s t e s t i mo n y to be e r r one ous l y
a d mi t t e d f o r t wo r e a s o n s . Fi r s t l y , t h e wi t n e s s wa s n e v e r q u a l i f i e d a s
be i ng f a mi l i a r wi t h t he va l ue of pr ope r t y of t he s a me c ha r a c t e r .
Se c o n d l y , t h e me a s u r e o f d a ma g e s u s e d b y t h e wi t n e s s d o e s n o t c o mp o r t
wi t h e x i s t i n g l a w.
I t i s a we l l - a c c e p t e d p r i n c i p l e o f l a w i n t h i s s t a t e t h a t d a ma g e s
t o p e r s o n a l p r o p e r t y ma y b e me a s u r e d b y e i t h e r t h e c o s t o f r e p a i r o r
t he r e duc t i on i n f a i r ma r k e t va l ue . Se e Co i n e r , " Te n n e s s e e La w o f
2 There is no mention of "concurrent findings" in Rule 13(d), Tennessee Rules of Appellate Procedure. The rule does, however, contain a limiting provision, i.e., "[u]nless otherwise required by statute." Concurrent findings are controlled by T.C.A. § 27-1-113. We also note that the Advisory Commission Comments, which specifically refer to T.C.A. § 27-1-113, state that "[t]his subdivision dealing with appellate review of findings of fact in civil actions, incorporates existing law."
5 Da ma g e s , " Se c t i o n 6 - 3 . Th i s r u l e i s f u r t h e r s e t f o r t h i n t h e c a s e o f
An d e r s o n v . I n ma n , 3 Te n n . Ap p . 1 9 5 ( 1 9 2 6 ) , wh i c h h a s b e e n i n c o r p o r a t e d
i n t o Te n n e s s e e Pa t t e r n I n s t r u c t i o n s , Ci v i l 1 4 . 4 0 a s f o l l o ws :
. . . i f t he d a ma g e s h a v e n o t b e e n r e p a i r e d , o r i f t h e pr ope r t y i s not c a pa bl e of r e pa i r s o a s t o r e s t or e t he t hr e e f a c t or s of f unc t i on, a ppe a r a nc e , a nd va l ue a s t he y e xi s t e d i mme d i a t e l y b e f o r e t h e [ i n c i d e n t ] , t h e n t h e me a s u r e o f d a ma g e s i s t h e d i f f e r e n c e i n t h e f a i r ma r k e t v a l u e o f t h e p r o p e r t y i mme d i a t e l y b e f o r e t h e [ i n c i d e n t ] a n d i mme d i a t e l y a f t e r t he [ i nc i de nt ] .
Th e f o l l o wi n g r u l e h a s a l s o b e e n e n u n c i a t e d :
I n t h i s s t a t e , t h e o r d i n a r y a n d b a s i c me a s u r e o f d a ma g e s f o r i n j u r y t o p e r s o n a l p r o p e r t y i s t h e d i f f e r e n c e b e t we e n i t s ma r k e t v a l u e i mme d i a t e l y b e f o r e a n d i mme d i a t e l y a f t e r t h e i n j u r y . I r v i n g Pu l p a n d Pa p e r , Lt d . v . Du n b a r Tr a n s f e r a n d St o r a g e Co . , 7 3 2 F. 2 d 5 1 1 ( 6 t h Ci r . 1 9 8 4 ) ; Ya z o o a n d M V. R. Co . v . W l l i a ms , 1 8 2 Te n n . 2 4 1 , 1 8 5 . i S. W 2 d 5 2 7 , 5 2 9 ( Te n n . 1 9 4 5 ) ; Te n n e s s e e J u r i s p r u d e n c e , . Da ma g e s , § 1 8 , p a g e 4 2 .
No n e o f t he pr ope r me a s u r e s we r e e mp l o y e d i n t h i s cas e. Th e
wi t n e s s , M. r Ba i j u Ha r j a n i , wh o t e s t i f i e d a s t o t h e d a ma g e s t o t h e
me r c h a n d i s e , t e s t i f i e d o n l y a s t o t h e c o s t o f t h e d a ma g e d o r d e s t r o y e d
pr ope r t y. W hol d t ha t e t h e t e s t i mo n y o f M. r Ha r j a n i wa s i mp r o p e r l y
a d mi t t e d a n d f u r t h e r t h e t e s t i mo n y i f a l l o we d i s i n s u f f i c i e n t e v i d e n c e
as a ma t t e r of l a w u p o n wh i c h a j u d g me n t f or d a ma g e s t o pe r s ona l
pr ope r t y c a n be ba s e d.
Th e a p p e l l a n t n e x t i n s i s t s t h a t t h e d a ma g e s f o r p e r s o n a l p r o p e r t y
s h o u l d b e r e s t r i c t e d t o t h e a mo u n t o f l o s s a s s t a t e d i n a s wo r n p r o o f
of l os s pr e pa r e d by t he a ppe l l e e . W a g r e e t h a t t h e p r o o f o f l o s s wa s e
6 a d mi s s i b l e a n d t h e r e c o r d r e f l e c t s t h a t i t wa s a d mi t t e d i n t o e v i d e n c e .
Ad mi s s i o n s c a n b e u s e d n o t onl y a s s ubs t a nt i ve e vi de nc e but al so as
e v i d e n c e t o u c h i n g t h e c r e d i b i l i t y o f t h e wi t n e s s . Ad mi s s i o n s a r e i n
n o wa y c o n c l u s i v e . Se e Te n n e s s e e Ru l e s o f Ev i d e n c e , Ru l e 8 0 3 ( 1 . 2 ) .
W f i n d n o me r i t i n t h i s i s s u e . e
As t o t h e t h i r d i s s u e , t h e r e i s ma t e r i a l e v i d e n c e t o s u p p o r t t h e
j u d g me n t of t he t r i a l c our t a nd s pe c i a l ma s t e r . Th u s , a ppl yi ng t he
ma t e r i a l e v i d e n c e r u l e a s we h a v e d i s c u s s e d s u p r a , we f i n d n o me r i t i n
t hi s i s s ue .
I s s u e s f o u r a n d f i v e a r e i n t e r r e l a t e d a n d we wi l l c o n s i d e r t h e m
t oge t he r .
Un d e r t h e s u b l e a s e a g r e e me n t b e t we e n c o u n t e r - p l a i n t i f f , Co l e , a n d
t he s ubl e s s e e , Ut t a m, we f i n d t h e f o l l o wi n g p r o v i s i o n s :
7. M i nt e na nc e a nd Re pa i r . a
a. Su b l e s s o r s h a l l ma k e a l l s t r u c t u r a l r e p a i r s s u c h a s s u p p o r t s , r o o f a n d t h e e x t e r i o r wa l l s o f t h e b u i l d i n g i n a t i me l y ma n n e r d u r i n g t h e t e r m o f t h i s l e a s e .
b . Su b l e s s e e s h a l l , d u r i n g t h e t e r m o f t h i s a g r e e me n t a t h i s s o l e e x p e n s e , o t h e r wi s e ma i n t a i n b o t h t h e i n t e r i o r a n d e x t e r i o r o f t h e l e a s e d p r e mi s e s i n a s g o o d o r d e r a n d r e p a i r a s i t i s a t t h e c o mme n c e me n t o f t h i s l e a s e , r e a s o n - a b l e we a r a n d t e a r e x c e p t e d , n o r wi l l t h e s u b l e s s e e s u f f e r o r p e r mi t a n y wa s t e o r n e g l e c t o f p r o p e r t y a n d wi l l r e p a i r o r r e s t o r e t h e s a me a s o f t e n a s ma y b e n e c e s s a r y i n o r d e r t o k e e p t h e l e a s e d p r e mi s e s i n a g o o d s t a t e o f r e p a i r .
* * * * *
7 Th e r e f o r e , u n d e r t h e e x p r e s s t e r ms o f t h e c o n t r a c t b e t we e n t h e
s u b l e s s o r a n d s u b l e s s e e , t h e s u b l e s s o r i s r e q u i r e d t o ma i n t a i n t h e r o o f
i n good r e pa i r . A f a i l ur e t o do s o, e ve n i f t he f a ul t of a not he r ,
wo u l d c o n s t i t u t e a b r e a c h o f t h e s u b l e a s e a g r e e me n t . I f t he r e i s s uc h
a b r e a c h a n d t h e s u b l e s s e e s u f f e r s d a ma g e s , h e wo u l d b e e n t i t l e d t o
r e c o v e r h i s l o s s e s f r o m t h e s u b l e s s o r , i n c l u d i n g d a ma g e s t o t h e a r e a s
wh e r e t h e s u b l e s s e e wa s r e s p o n s i b l e f o r ma i n t e n a n c e . “ Th e p u r p o s e o f
a s s e s s i n g d a ma g e s i n b r e a c h o f c o n t r a c t c a s e s i s t o p l a c e t h e p l a i n t i f f
a s n e a r l y a s p o s s i b l e i n t h e s a me p o s i t i o n s h e wo u l d h a v e b e e n i n h a d
t h e c o n t r a c t b e e n p e r f o r me d , but t he nonbr e a c hi ng par t y i s not t o be
p u t i n a n y b e t t e r p o s i t i o n b y r e c o v e r y o f d a ma g e s f o r t h e b r e a c h o f t h e
c ont r a c t t ha n he wo u l d ha ve be e n if t he c ont r a c t ha d be e n f ul l y
p e r f o r me d . Ac t i o n Ad s , I nc . v. W l l i a m B. i Ta n n e r Co . , 5 9 2 S. W 2 d 5 7 2 .
( Te n n . Ap p . 1 9 7 9 ) . ” La mmo n s v . Ch a mb e r l a i n , 9 0 9 S. W 2 d 7 9 5 ( Te n n . Ap p . .
1993) .
I t c a nnot be s e r i ous l y a r gue d t ha t t he s ubl e s s e e di d not s uf f e r
d a ma g e s f r o m d e f e c t s i n t h e r o o f . Un d e r t h e f a c t s o f t h i s c a s e , t he
s u b l e s s e e wi t h h e l d $ 1 0 , 0 0 0 . 0 0 i n r e n t f o r d a ma g e s t o t h e i n t e r i o r o f
t h e b u i l d i n g a n d t h e me r c h a n d i s e l o c a t e d t h e r e i n . Th e r e c o r d d o e s n o t
r ef l ect wh e t h e r a ny of t he mo n i e s wi t h h e l d wa s e ve r pa i d to t he
s ubl e s s or . I n a n y e v e n t , t h e s u b l e s s e e c o u l d h a v e ma i n t a i n e d a n a c t i o n
a g a i n s t t h e s u b l e s s o r f o r d a ma g e s p r o x i ma t e l y c a u s e d b y t h e d e f e c t i v e
r oof , i nc l udi ng a r e a s t ha t t h e s u b l e s s e e wa s o b l i g a t e d t o ma i n t a i n
unde r t he t e r ms of t he l ease pr ovi de d t he ma i n t e n a n c e c os t s we r e
i nc r e a s e d by t he de f e c t i ve r oof .
8 W f i n d t h a t i s s u e s f o u r a n d f i v e a r e g o v e r n e d b y t h e f o l l o wi n g e
r u l e s o f l a w.
Al t h o u g h n o t e x p r e s s l y s o d e n o mi n a t e d i n t h e c o m- p l a i n t , t h e g r a v a me n o f t h i s s u i t i s i n d e mn i t y ; t h a t i s , t h e p l a i n t i f f i s s e e k i n g r e i mb u r s e me n t o f d a ma g e s h e e x p e c t s t o p a y t o a t h i r d p a r t y f o r d a ma g e s s u f f e r e d b y t h e t h i r d p a r t y a s a r e s u l t o f d e f e n d a n t ' s d e f e c t i v e p e r f o r ma n c e o f a c o n t r a c t wi t h p l a i n t i f f o r d e f e n d a n t ' s b r e a c h o f wa r r a n t y i n a s a l e t o pl a i nt i f f .
Co n t r a c t s o f i n d e mn i f i c a t i o n ma y b e e x p r e s s , o r ma y a r i s e b y i mp l i c a t i o n f r o m t h e r e l a t i o n s h i p o f t h e p a r t i e s . Ho u s e b o a t i n g Co r p . o f Ame r i c a v . M r s h a l l , Te n n . 1 9 7 7 , 5 5 3 a S. W 2 d 5 8 8 . .
A p e r s o n wh o , i n wh o l e o r i n p a r t , h a s d i s c h a r g e d a d u t y wh i c h i s o we d b y h i m b u t wh i c h , a s b e t we e n h i ms e l f a n d a not he r , s houl d ha ve be e n di s c ha r ge d by t he ot he r , i s e n t i t l e d t o i n d e mn i t y f r o m t h e o t h e r u n l e s s b a r r e d b y t h e wr o n g f u l n a t u r e o f h i s o wn c o n d u c t . So u t h e r n Co a l & Co k e Co . v . Be e c h Gr o v e M n . Co . , 5 3 Te n n . Ap p . 1 0 8 , 3 8 1 S. W 2 d 2 9 9 i . ( 1 9 6 3 ) ; Ca r t e r v . E. T. & W N. C. Tr a n s p . Co . , 3 5 Te n n . Ap p . . 1 9 6 ; 2 4 3 S. W 2 d 5 0 5 ( 1 9 5 1 ) . .
A c o n t r a c t o f i n d e mn i t y n e e d n o t b e e x p r e s s ; i n d e mn i t y ma y b e r e c o v e r e d i f t h e e v i d e n c e e s t a b l i s h e s a n i mp l i e d c o n t r a c t . I n a d d i t i o n , a r i g h t t o i n d e mn i t y e x i s t s wh e n e v e r one pa r t y i s e xpos e d t o l i a bi l i t y by t he a c t i on of a not he r wh o , i n l a w o r i n e q u i t y , s h o u l d ma k e g o o d t h e l o s s o f t h e o t h e r . Th e r i g h t o f i mp l i e d i n d e mn i t y i n c o n t r a c t u a l c a s e s i s ba s e d upon a br e a c h of c ont r a c t by t he pe r s on aga i ns t wh o m i n d e mn i t y i s s o u g h t , . . . .
St i v e r M t g . , k I nc . , v. Pe r f o r ma n c e Bu s . Fo r ms , I nc . , 1 9 9 1 Te n n . Ap p . LEXI S 93 0 .
Th i s c a s e ma y b e a n a l o g i z e d t o t h e a u t h o r i t y s e t o u t a b o v e . Th e
c ount e r c l a i m di d not e xpr e s s l y i nc l ude a c l a i m s pe c i f i c a l l y de s i gna t e d
a s a c l a i m f o r i n d e mn i t y b u t i t d o e s i n c l u d e a c l a i m f o r d a ma g e s p a i d
out t o her t e na nt .
9 W f i nd t ha t e t he c o u nt e r - pl a i nt i f f i s e nt i t l e d t o r e c ove r f r om
t h e c o u n t e r - d e f e n d a n t f o r d a ma g e s t o t h e me r c h a n d i s e o f t h e s u b l e s s e e
a n d o t h e r d a ma g e s f o r wh i c h t h e s u b l e s s e e c o u l d l o o k t o t h e s u b l e s s o r
f o r p a y me n t . Th e r e f o r e , we f i n d n o me r i t i n i s s u e s f o u r a n d f i v e .
W a f f i r m t h e j u d g me n t e of t he t r i a l c our t on al l i s s ue s e xc e pt
t he f i r s t . W f i n d t h a t t h e wr o n g me a s u r e o f d a ma g e s wa s u t i l i z e d i n e
d e t e r mi n i n g d a ma g e s t o t h e s u b l e s s e e ’ s me r c h a n d i s e . Ac c o r d i n g l y , t h e
j u d g me n t f or d a ma g e t o t h e me r c h a n d i s e i s v a c a t e d . Th i s c a s e mu s t
r e ma n d e d t o t h e t r i a l c o u r t f o r a r e t r i a l a n d r e c a l c u l a t i o n o f d a ma g e s
t o t h e me r c h a n d i s e l o c a t e d wi t h i n t h e b u i l d i n g i n q u e s t i o n .
Th e a p p e l l e e i n h e r br i e f ha s a s ke d t hi s c our t t o mo d i f y t h e
a wa r d t o h e r by i nc r e a s i ng i t by $2, 887. 50, wh i c h s h e c l a i ms wo u l d
c o mp e n s a t e h e r f o r t h e f u l l a mo u n t s h e wa s r e q u i r e d t o p a y f o r r e p a i r s
t o t he r oof . Th e r e i s ma t e r i a l e v i d e n c e t o s u p p o r t t h e f i n d i n g s o f t h e
s p e c i a l ma s t e r a n d t h e c o n c u r r e n t f i n d i n g s o f t h e c h a n c e l l o r . Un d e r
t h e s e c i r c u ms t a n c e s , a p p e l l e e ' s r e q u e s t mu s t b e d e n i e d .
Co s t s a r e t a x e d e q u a l l y b e t we e n t h e a p p e l l a n t , Ri c h a r d Ga u s e and
t he a ppe l l e e , J a n i c e Co l e . Th i s c a s e i s r e ma n d e d t o t h e t r i a l c o u r t
f o r s u c h o t h e r a c t i o n a s i s n e c e s s a r y i n a c c o r d a n c e wi t h t h i s o p i n i o n .
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ Do n T. M M r r a y , J u d g e c u
10 CONCUR:
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ He r s c h e l P. Fr a n k s , J u d g e
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ Ch a r l e s D. Su s a n o , J u d g e
11 I N THE COURT OF APPEALS
RI CHARD GAUSE d / b / a ROOFWORKS ) SEVI ER CHANCERY OF TENNESSEE, ) C. A. NO. 0 3 A0 1 - 9 7 0 7 - CH- 0 0 0 0 1 ) Pl a i n t i f f - Ap p e l l a n t ) ) ) ) ) vs . ) HON. CHESTER R. RAI NWATER, J R. ) CHANCELLOR ) ) ) ) J ANI CE COLE d / b / a RI VERSI DE ) AFFI RMED I N PART, VACATED I N SHOP a n d J ERRY OGLE, ) PART, AND REM ANDED. ) De f e n d a n t s - Ap p e l l e e s )
J UDGMENT
Th i s a p p e a l c a me o n t o b e h e a r d u p o n t h e r e c o r d f r o m t h e Ch a n c e r y
Co u r t of Se v i e r Co u n t y , br i e f s a nd a r g u me n t of c ouns e l . Up o n
c o n s i d e r a t i o n t h e r e o f , t h i s Co u r t i s o f t h e o p i n i o n t h a t t h e r e wa s s o me
r e ve r s i bl e e r r or i n t he t r i a l c our t .
W a f f i r m t h e j u d g me n t e of t he t r i a l c our t on al l i s s ue s e xc e pt
d a ma g e s f o r me r c h a n d i s e . W f i n d t h a t t h e wr o n g me a s u r e o f d a ma g e s wa s e
ut i l i z e d in d e t e r mi n i n g d a ma g e s to t he s ubl e s s e e ’ s me r c h a n d i s e .
Ac c o r d i n g l y , t h e j u d g me n t f or d a ma g e t o t h e me r c h a n d i s e i s v a c a t e d .
Th i s c a s e i s r e ma n d e d t o t h e t r i a l c o u r t f o r a r e t r i a l a n d r e c a l c u l a -
t i on of d a ma g e s t o t he me r c h a n d i s e l o c a t e d wi t h i n t h e bui l di ng i n
que s t i on.
Co s t s a r e t a x e d e q u a l l y b e t we e n t h e a p p e l l a n t , Ri c h a r d Ga u s e and
t he a ppe l l e e , J a n i c e Co l e . Th i s c a s e i s r e ma n d e d t o t h e t r i a l c o u r t
f o r s u c h o t h e r a c t i o n a s i s n e c e s s a r y i n a c c o r d a n c e wi t h t h i s o p i n i o n . PER CURI AM