Stratton v. Wommack

230 F. App'x 491
CourtCourt of Appeals for the Sixth Circuit
DecidedApril 6, 2007
Docket06-5634
StatusUnpublished
Cited by2 cases

This text of 230 F. App'x 491 (Stratton v. Wommack) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stratton v. Wommack, 230 F. App'x 491 (6th Cir. 2007).

Opinions

GRIFFIN, Circuit Judge.

Plaintiff Jimmy Stratton was under contract to manage the band known as Los Lonely Boys (“the Boys”), which consists of the three Garza brothers. In October 2003, Stratton filed an action in federal court claiming that defendant Kevin Wommack violated Tennessee law by tortiously inducing the Garzas to breach their management agreement (“the contract”) in late 1999 or early 2000. The district court granted summary judgment to Wommack [492]*492on the ground that Stratton failed to file his claim within the three-year period required by Tenn.Code Ann. § 28-3-105. Stratton timely appealed. Stratton agrees that § 28-3-105 applies, but he contends that his cause of action did not accrue until he read newspaper and website articles in 2003 that gave him reason to believe that Wommack, rather than others, was involved in the tortious inducement.

For the reasons that follow, we vacate the grant of summary judgment and remand for further proceedings. Under Tennessee law, a tort cause of action does not necessarily accrue at the time the plaintiff knows that he has suffered an injury. A tort cause of action does not accrue until the plaintiff also knew, or reasonably should have known, “the occasion, the manner and means by which a breach of duty occurred that produced his injury” and “the identity of the defendant who breached the duty. Foster v. Harris, 633 S.W.2d 304, 305 (Tenn.1982) (emphasis added). Contrary to this rule, the district court failed to consider whether there was a genuine issue as to whether reasonably diligent investigation would have led Stratton to discover Wommack’s inducement of the Garzas’ breach less than three years before he filed this action. The district court should have made that fact-sensitive determination in the first instance.

I.

The complaint alleges that Stratton is a resident of Tennessee and Wommack is a resident of Texas,1 and that Wommack’s tortious interference caused Stratton to lose over $100,000 in commissions and $70,000 in unreimbursed expenses, i.e., more than $75,000 exclusive of interest and costs. Accordingly, it appears that the district court had diversity jurisdiction under 28 U.S.C. § 1332(a)(1). We have jurisdiction under 28 U.S.C. § 1291.

II.

In November 1996, Stratton entered into an Artist-Manager Agreement2 with the Garzas/Los Lonely Boys. Stratton agreed to

advise and counsel [the Garzas] in matters pertaining to music, music publishing and musical performance; publicity; public relations and advertising; ... compensation and privileges for similar artistic values; ... the selection of booking and/or theatrical agencies, and persons, firms and corporations who will counsel, advise, seek and procure employment and engagements for Artist; and with regard to general practices in the music and entertainment industry as are called for by this Agreement.

Agreement ¶ 3. The Garzas agreed to pay Stratton a 20% commission and reimburse travel and other expenses directly related to his representation of the group. Agreement ¶¶ 7-8.

In April 1999, Stratton entered into a Memorandum of Understanding (“MOU”) with the Garzas which superseded the 1996 Agreement. The MOU was to last for five years, with an additional two years at Stratton’s option.

In early 1999, two record producers from Chicago, Jim Tullio and Rob Fabroni, [493]*493contacted Stratton after hearing a Los Lonely Boys CD and said they wanted to see the Garzas perform. Tullio and Fabroni traveled to Florida and saw the Garzas perform live. Sometime between April and September 1999, the Garzas and Stratton went to Chicago to meet with Tullio and Fabroni. At that meeting, Tullio and Fabroni allegedly criticized Stratton’s management in the presence of the Garzas.

From September 21 through November 29, 1999, the Garzas’ counsel wrote three letters to Stratton’s counsel requesting a detailed written accounting of all commissions Stratton had received and all expenses he had charged to the Garzas’ account while under the management agreements. Stratton did not provide the requested accounting.

Unbeknownst to Stratton, sometime in November or December 1999, record producers Tullio and Fabroni invited Wommack to see the Garzas perform live in Nashville. Wommack thus traveled from Texas and viewed the performance; however, the Garzas did not introduce Stratton to Wommack.

In late 1999, the Garzas left Nashville and returned home to Texas without giving Stratton any advance warning, and thereafter they had no further contact with Stratton. The Garzas failed to honor some personal appearances and concerts which Stratton had scheduled and committed them to perform, including a Christmas party for the Academy of Recording Arts and Sciences on December 13, 1999. Even when they did perform at scheduled concerts, they failed to pay Stratton any commissions. The Garzas also failed to record music with one David Rifkin, as Stratton had arranged. Likewise, the Garzas did not perform at a BMI Showcase in Nashville on January 6, 2000.3

In March 2000, the Garzas’ counsel wrote to Stratton’s counsel and stated that the Garzas were terminating their agreement with Stratton effective immediately. The Garzas cited Stratton’s refusal to provide the requested accounting as a material breach.

Later that month, Stratton’s counsel wrote back, stating that the agreement remained in effect, that their failure to perform was complicating his attempt to provide an accounting, and that he would provide an accounting “in a reasonable time.” Stratton also stated that he was

further concerned that there are third parties that may have gained the collective ear of the band and may be at the root of Los Lonely Boys’ desire to walk away from the person who has expended great sums of personal funds and who has deferred his rightful payment for services rendered, to bring this band through the development stage. We will continue our investigation into this aspect of the case.

According to the Boys’ father, he took over the management of the group after “the fallout” with Stratton, which he placed as occurring in “2000 sometime.” Mr. Garza testified that Wommack began handling the group’s bookings after they terminated their agreement with Stratton and was paid a 15% commission on any performances that he booked. Mr. Garza testified, however, that Wommack was not their “manager” per se at the time of the deposition, in April 2002.

In May 2002, the Garzas entered into a formal written agreement for Wommack to manage the Boys for seven years at a 20% commission. Stratton alleges that he did [494]*494not become aware that Wommack was managing the Garzas until he saw an August 2003 Austin American-Statesman article that referred to Wommack as their manager.

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Bluebook (online)
230 F. App'x 491, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stratton-v-wommack-ca6-2007.