Thomas A. Smythe v. Fourth Avenue Church Of Christ, Inc.

CourtCourt of Appeals of Tennessee
DecidedOctober 13, 2021
DocketM2020-01190-COA-R3-CV
StatusPublished

This text of Thomas A. Smythe v. Fourth Avenue Church Of Christ, Inc. (Thomas A. Smythe v. Fourth Avenue Church Of Christ, 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
Thomas A. Smythe v. Fourth Avenue Church Of Christ, Inc., (Tenn. Ct. App. 2021).

Opinion

10/13/2021 IN THE COURT OF APPEALS OF TENNESSEE AT NASHVILLE August 17, 2021 Session

THOMAS A. SMYTHE v. FOURTH AVENUE CHURCH OF CHRIST, INC.

Appeal from the Chancery Court for Williamson County No. 47328 Joseph A. Woodruff, Judge ___________________________________

No. M2020-01190-COA-R3-CV ___________________________________

This appeal involves a contract issue concerning a purported addendum to a land purchase and sale agreement. The trial court granted the seller’s motion for summary judgment holding that there was no mutual assent on at least one material term: whether the modification would include a new date-certain deadline for the diligence period or be open- ended. The buyer appeals. We affirm.

Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Chancery Court Affirmed

CARMA DENNIS MCGEE, J., delivered the opinion of the court, in which J. STEVEN STAFFORD, P.J., W.S., and ARNOLD B. GOLDIN, J., joined.

Joshua R. Denton and Jeremey R. Goolsby, Nashville, Tennessee, for the appellant, Thomas A. Smythe.

Alan D. Hall and Julie G. Hamner, Franklin, Tennessee, for the appellee, Fourth Avenue Church of Christ, Inc.

OPINION

I. FACTS & PROCEDURAL HISTORY

In June 2006, Fourth Avenue Church of Christ, Inc. (“Seller”) purchased a twenty- acre property (“the Property”) with a fifty-foot access easement. Sometime in 2008, the Property was rezoned for commercial use. Seller eventually offered to sell the Property and posted a “For Sale” sign on the Property with Mr. Douglas Buttrey’s contact information. Mr. Buttrey was a member of the Church, a licensed attorney, and was helping to procure a buyer and negotiate the sale of the Property. When Mr. Thomas Smythe (“Buyer”) became interested in the Property, he contacted Mr. Buttrey. On April 19, 2017, Seller and Buyer entered into a Land Purchase and Sale Agreement in which Buyer agreed to purchase the Property from Seller.

The Agreement required Buyer to place a refundable deposit of $60,000 in escrow to be held through the course of a sixty-day diligence period. The sixty-day diligence period was then followed by a thirty-day period for closing. The Agreement also noted that Buyer had an interest in simultaneously buying the adjoining eighty-acre parcel, and if both Seller and Buyer agreed to extend the diligence period based on unforeseen issues involving disposition of that eighty-acre parcel, then those issues would be addressed in writing at that time. Upon expiration of the diligence period, Buyer was required to deliver a written decision to Seller’s attorney stating whether the $60,000 should be refunded and the contract nullified, or alternatively, whether Buyer had decided to proceed with the closing. In proceeding with the closing, the $60,000 in escrow would become a non- refundable deposit. Particularly, the Agreement provided that written notices and demands may be made by email and recognized that the Agreement was based on “principal to principal” interactions.

On the same day the parties entered into the Agreement, Buyer and Seller entered into the first addendum to the Agreement. The first addendum modified certain provisions within the Agreement. In the first addendum, the parties agreed to the following modifications:

1. Zoning reference in the captions is changed to: Commercial, Thompsons Station; 2. Buyer’s ability to terminate the Agreement within the sixty (60) day diligence period is absolute; 3. Seller agrees to deliver a warranty deed conveying title to Buyer at closing; 4. Seller agrees to pay back Greenbelt taxes at closing, if any; and 5. Other than Greenbelt rollback taxes, property taxes to be prorated between Buyer and Seller at closing.

Following the execution of the Agreement and the first addendum, Buyer paid the $60,000 deposit and began conducting due diligence regarding the Property. Securing a new easement appropriate for Buyer’s intended commercial use was identified as one of the issues to be addressed during the diligence period.

Throughout the diligence period, Buyer communicated with Mr. Buttrey concerning any issues surrounding the Agreement and the new easement to be obtained. On May 31, 2017, Buyer and Mr. Buttrey held a meeting to discuss securing the new easement from an adjoining landowner. After the meeting, Mr. Buttrey emailed Buyer stating that he intended to reach out to the representative of the adjoining landowner’s estate (“the Estate”) regarding the new easement.

When it became clear that the new easement would not be obtained within the -2- diligence period, which was set to expire on June 19, 2017, Buyer emailed Mr. Buttrey suggesting a second addendum that would extend the diligence period. On June 15, 2017, Mr. Buttrey emailed Buyer stating that Seller was willing to approve an extension to the diligence period. On June 19, 2017, because of some confusion between the parties, Mr. Buttrey reiterated by email that the extension to the diligence period had been agreed to by Seller. The parties entered into the second addendum and extended the diligence period to September 1, 2017. At the end of June 2017, Buyer then began independently reaching out to the Estate to discuss the Estate’s willingness to execute a waiver of its right of first refusal to purchase the Property and an agreement regarding the new easement. At a meeting between Buyer and the Estate, the Estate’s attorney assured Buyer that he did not believe there would be a problem obtaining both the waiver of the right of first refusal and an agreement regarding the new easement.

On August 25, 2017, Buyer emailed Mr. Buttrey suggesting a third addendum. The email stated the following:

[The Estate’s attorney] stated once again that he thought there would be no problem giving us a written confirmation that 1) [t]he Estate will waive any implied rights of refusal and confirm that [Seller] is free to sell their 20 acres at will, and 2) [t]he Estate will give any buyer of that 20 acre parcel the right to purchase a separate “shared access” directly to the [P]roperty off Lewisburg Pike in whatever way proves compliant with governing traffic and zoning issues (assuming of course we are not for whatever reason able to finally purchase the surrounding 80 acres as planned).

I will have Ashcroft1 confirm that I am going hard subject only to the receipt of those written clarifications so they can be appended to the closing documentation. And having received such, I will within 15 business days then go hard with a full $200,000 (adding another $140,000 to the $60,000 already in escrow).

The process of actually confirming a purchase from [t]he Estate could take another three to four months based on third party determinations on value, and based on [the Estate’s executrix] deciding between options including an outright sale and/or a normalized sale contingent to zoning approvals.

...

I am suggesting that dated from the point that the $200,000 is put into escrow as a non-refundable deposit, plus 30 business days thereafter, I would assume

1 By “Ashcroft,” Buyer was referring to the Ashworth Law Firm where one of his attorneys was employed. -3- the monthly 6.5% interest payments on your Wells Fargo debt until we have taken out the loan in its entirety. Through that interim you would be free to take the $200,000 and use it as you will, without holding it in escrow.

Please take that up with [Seller’s attorney], and I’ll ask the lawyers to point out any complications to this format.

As this email reflects, Buyer’s proposed third addendum would have accounted for the need to obtain the Estate’s waiver of the right of first refusal and an agreement regarding the new easement.

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Bluebook (online)
Thomas A. Smythe v. Fourth Avenue Church Of Christ, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-a-smythe-v-fourth-avenue-church-of-christ-inc-tennctapp-2021.