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ÔÔ€ÔÝ  Ý›Ñ\R AØ'\ÑÑ\R AØ'\ÑÑ€ÑÑ7€!XXdìdÈ7ÑÑ  ќԀ¼ÔÞ ÞÌBLUE›€CROSS„BLUE€SHIELD€OFà à)ÌTENNESSEE,à àà àà àà à)Ìà àà àà àà àà àà à)à àAPPEAL€NO.Ìà àPLAINTIFF/APPELLANT,à à)à à01„A„01„9611„CV„00526Ìà àà àà àà àà àà à)Ìv.à àà àà àà àà àà à)à àCIRCUIT€COURT€NO.̜ـ€ÙßR€!# A1-j|%Õ` ç `€€@ÿRß›à àà àà àà àà àà à)à àCC„31„95ÌCITY€OF€LAWRENCEBURG,à àœ)›Ìà àà àà àà àà àà à)Ìà àDEFENDANT/APPELLEE.à à)ÌÌÓ  ÓÌÌÌCOURT€OF€APPEALS€OF€TENNESSEEÌÌMIDDLE€SECTION€AT€NASHVILLEÌÌAPPEAL€FROM€THE€œLAWRENCE›€COUNTY€CIRCUIT€COURTÌÌAT€LAWRENCEBURG,€TENNESSEEÌÌTHE€HONORABLE€WILLIAM€B.€CAIN,€JUDGEÌÌÓ  ÓÌÌÌÌÌÌROBERT€G.€NORRED,€JRÌJANE€M.€STAHLÌSpears,€Moore,€Rebman€&€WilliamsÌ801€Pine€Street,€P.O.€Box€1749ÌChattanooga,€Tennessee€37401„1749Ìà àATTORNEYS€FOR€PLAINTIFF/APPELLANTÌÌALAN€C.€BETZÌWhite€&€Betz,€AttorneysÌ22€Public€Square,€P.O.€Box€488ÌLawrenceburg,€Tennessee€38464Ìà àATTORNEY€FOR€DEFENDANT/APPELLEEÌÌÌÌÌà@ àAFFIRMED€AND€REMANDEDÌÌÌÌÌà àà àà àà àà àà àà àà àSAMUEL€L.€LEWIS,€JUDGEÌà@ àÔ€„ÔòòOÔ€¼ÔPINIONóóÌÌÓ€ÓÓ  Óà àThis€is€an€appeal€by€plaintiff/appellant,€Blue€Cross„Blue€Shield€ofÏTennessee€(ð ðBlue€Crossðð),€from€the€trial€courtððs€decision€which€dismissed€BlueÏCrossððs€complaint€requesting€reimbursement€from€the€City€of€LawrenceburgÏ(ð ðthe€Cityðð)€for€certain€claims€paid€by€Blue€Cross.€€The€facts€out€of€which€thisÏmatter€arose€are€as€follows.ÌÌà àBlue€Cross€provided€medical€insurance€to€the€City€and€its€employees€fromÏNovember€1984€until€31€January€1993.€€During€this€period,€Blue€Cross€deniedÏcertain€claims€made€by€the€City€and€its€employees.€€Charles€Brown,€the€CityððsÏSecretary€/Treasurer,€and€Ivan€Johnston,€the€Cityððs€Mayor,€wrote€letters€to€BlueÏCross€asking€Blue€Cross€to€pay€the€out€of€contract€claims€for€the€benefit€of€theÏCityððs€employees.€€All€the€letters€also€contained€the€following€paragraph:€€ð ðWeÏunderstand€that€if€our€group€policy€with€Blue€Cross€&€Blue€Shield€of€TennesseeÏterminates€and€we€are€in€a€deficit€position€we€will€be€liable€to€reimburse€BlueÏCross€&€Blue€Shield€of€Tennessee€for€any€amount€paid€out€of€contract.ðð€ÏThereafter,€Blue€Cross€paid€the€claims.ÌÌà àThe€City€canceled€the€insurance€contract€on€31€January€1993.€€Blue€CrossÏwas€in€a€deficit€position€and€demanded€the€City€reimburse€it€for€the€out€ofÍcontract€payments.€€The€City€refused€and€claimed€it€had€not€authorized€Brown€orÏJohnston€to€make€the€agreements€with€Blue€Cross.ÌÌà àBlue€Cross€filed€a€complaint€on€23€February€1995.€€Blue€Cross€claimed€theÏagreements€found€in€the€letters€entitled€it€to€reimbursement€from€the€City.€€TheÏCity€responded€and€claimed€that€neither€Brown€nor€Johnston€had€authority€toÏenter€into€a€binding€agreement€on€behalf€of€the€City.€€Thereafter,€Blue€CrossÏamended€its€complaint€to€include€equitable€estoppel€and€quantum€meruit€asÏgrounds€for€recovery.€€The€trial€court€entered€its€final€judgment€dismissing€theÏcomplaint€on€5€August€1996.€€The€judgment€included€the€following€conclusion:ÌÓÓà8 àLawrenceburg€is€governed€by€a€City€Charter€which€provides€thatÏthere€will€be€five€commissioners€who€make€up€the€Board€ofÏCommissioners,€and€that€there€must€be€an€affirmative€vote€to€adoptÏany€motion,€resolution,€or€ordinance€or€pass€any€measure€unlessÏotherwise€provided€for€in€the€act.€€The€Charter€further€provides€thatÏthe€Board€of€Commissioners€have€and€possess€all€administrative,Ïjudicial€and€legislative€powers€and€duties€and€have€complete€controlÏover€the€affairs€of€the€City.€€For€a€contract€to€be€enforceable€andÏbinding€on€Lawrenceburg,€it€must€[sic]€voted€upon€and€adopted€in€aÏpublic€meeting.€€The€minutes€of€the€meetings€of€the€Board€ofÏCommissioners€from€1984€through€1993€were€introduced€as€ExhibitÏ6,€and€there€is€no€mention€of€the€alleged€agreement€seekingÏreimbursement€for€out€of€contract€payments.€€It€was€never€votedÏupon,€approved€or€disapproved,€or€even€discussed€by€the€Board.€ÏThis€alleged€contract€between€Charles€Brown€and€Mayor€IvanÏJohnston€and€Blue€Cross„Blue€Shield€therefore€become€ultra€vires,Ïvoid€and€unenforceable.ÌÓ€ÓÌÓ€ÓBlue€Cross€filed€a€timely€notice€of€appeal€and€presented€the€following€issue€forÏour€review:€€ð ðWhether€the€trial€court€erred€when€it€dismissed€[Blue€Crossððs]Ïcomplaint€based€upon€finding€that€[Blue€Cross]€was€not€entitled€to€reimbursementÏfor€out€of€contract€payments€because€the€Secretary/Treasurer€and€Mayor€of€[theÏCity]€were€without€authority€to€bind€[the€City]€to€such€a€contract.ðð€€Blue€CrossÏcontends€it€is€entitled€to€reimbursement€based€on€the€theory€of€quantum€meruit.€€ÌÌà àInitially,€we€note€that€we€agree€with€the€trial€courtððs€holding€that€theÏcontracts€were€ultra€vires.€€ð ðUnder€Tennessee€law,€a€municipal€action€may€beÏdeclared€ultra€vires€for€either€of€two€reasons:€€(1)€because€the€action€was€whollyÏoutside€the€scope€of€the€city's€authority€under€its€charter€or€a€statute,€or€(2)Ïbecause€the€action€was€not€undertaken€consistent€with€the€mandatory€provisionsÏof€its€charter€or€a€statute.ððòòò ò€€City€of€Lebanon€v.€Bairdó óóó,€756€S.W.2d€236,€241Ï(Tenn.€1988).€€The€second€reason€clearly€applies€to€the€facts€of€this€case.€€TheÏcharter€required€the€Board€of€Commissioners€approve€the€contracts.€€The€BoardÏnever€approved€the€contracts.€€Thus,€the€contracts€were€ultra€vires.ÌÌà àA€finding€that€a€contract€is€ultra€vires€does€not€preclude€a€plaintiff€fromÏrecovering€funds€from€a€municipal€corporation.€€A€plaintiff€may€still€recoverÏunder€equitable€principles€if€certain€conditions€are€met.€€òòò òSee€City€of€Lebanonó óóó,Ï756€S.W.2d€at€242.€€A€municipal€corporation€may€still€be€liable€if€the€contract€isÏultra€vires€because€ð ðthe€city€failed€to€exercise€a€power€it€has€in€the€mannerÏprescribed€by€controlling€law.ðð€€òòò òId.óóó ó€at€243.€€The€second€condition€is€that€theÏcontract€not€be€executory.€€òòò òId.óóó ó€€The€facts€of€this€case€satisfy€both€requirements.€ÏFirst,€the€contract€was€ultra€vires€because,€although€the€City€had€the€authority€toÏenter€into€the€contracts,€it€did€not€comply€with€the€requirements€of€the€charter.€ÏSecond,€the€contracts€were€not€executory,€i.e.,€Blue€Cross€paid€the€out€of€contractÏclaims.€€Thus,€Blue€Cross€may€be€able€to€recoup€the€amount€of€the€claims€fromÏthe€City€if€Blue€Cross€is€able€to€establish€it€is€entitled€to€equitable€relief.ÌÌà àThere€are€several€terms€used€to€describe€the€equitable€relief€sought€by€BlueÏCross€in€this€case.€€The€Tennessee€Supreme€Court€stated:ÌÓÓà8 àà àActions€brought€upon€theories€of€unjust€enrichment,€quasiÏcontract,€contracts€implied€in€law,€and€quantum€meruit€areÍessentially€the€same.€€Courts€frequently€employ€the€variousÏterminology€interchangeably€to€describe€that€class€of€impliedÏobligations€where,€on€the€basis€of€justice€and€equity,€the€law€willÏimpose€a€contractual€relationship€between€parties,€regardless€of€theirÏassent€thereto.Ìà à.€.€.€.€Ìà8 àà à.€.€.€They€are€founded€on€the€principle€that€a€party€receiving€aÏbenefit€desired€by€him,€under€circumstances€rendering€it€inequitableÏto€retain€it€without€making€compensation,€must€do€so.Ìà à.€.€.€.Ìà8 àà à.€.€.€Each€case€must€be€decided€according€to€the€essentialÏelements€of€quasi€contract,€to„wit:€A€benefit€conferred€upon€theÏdefendant€by€the€plaintiff,€appreciation€by€the€defendant€of€suchÏbenefit,€and€acceptance€of€such€benefit€under€such€circumstances€thatÏit€would€be€inequitable€for€him€to€retain€the€benefit€without€paymentÏof€the€value€thereof.Ìà8 àà àThe€most€significant€requirement€for€a€recovery€on€quasiÏcontract€is€that€the€enrichment€to€the€defendant€be€unjust.ÌÓ€ÓÌÓ€Óòòò òPaschallððs,€Inc.€v.€Dozieróóó ó,€219€Tenn.€45,€53„7,€407€S.W.2d€150,€154„55Ï(Tenn.€1966);€òòò òsee€also€Estate€of€Atkinson€v.€Allied€Fence€andÏImprovement€Co.ó óóó,€746€S.W.2d€709,€711€(Tenn.€App.€1987)€(applying€theÏelements€listed€in€òòò òPaschallððsó óóó€to€quantum€meruit).€€Thus,€the€City€must€haveÏreceived€a€benefit€as€a€result€of€Blue€Cross€paying€the€Cityððs€employeeððs€claimsÏfor€Blue€Cross€to€recover€under€quantum€meruit.€€ÌÌà àUnfortunately,€we€are€unable€to€conclude€the€City€received€any€tangibleÏbenefit.€€The€Cityððs€employees€received€the€benefit.€€If€there€were€any€benefit€toÏthe€City,€it€was€intangible.€€That€is,€it€is€possible€to€conclude€the€City€benefitedÏbecause€its€employees€were€healthier€and€happier.€€Nevertheless,€there€is€noÏevidence€in€the€record€that€the€employees€were€healthier€and€happier€or€of€theÏvalue€of€the€intangible€benefit.€€Evidence€of€the€value€of€the€benefit€is€necessaryÏto€the€claim€because€the€amount€of€damages€recoverable€under€the€theory€ofÏquantum€meruit€equals€the€value€of€the€benefit€conferred.€€ò òòòSee€Paschallððsóóó ó,€407ÍS.W.2d€at€155.€€Thus,€Blue€Cross€is€either€not€entitled€to€reimbursement€becauseÏthe€City€did€not€receive€a€benefit€or€because€Blue€Cross€failed€to€provideÏevidence€of€the€value€of€the€intangible€benefit€received.€€Either€conclusionÏrequires€this€court€affirm€the€decision€of€the€trial€judge.ÌÌà àTherefore,€it€follows€that€the€judgment€of€the€trial€court€is€affirmed€andÏthe€case€is€remanded€to€the€trial€court€for€any€further€necessary€proceedings.€ÏCosts€on€appeal€are€taxed€to€plaintiff/appellant,€Blue€Cross„Blue€Shield€ofÏTennessee.ÌÌÌÌÓÓà àà àà àà àà àà àà à_______________________________Ìà àà àà àà àà àà àà àSAMUEL€L.€LEWIS,€JUDGEÌÌCONCUR:ÌÌÌ_______________________________ÌHENRY€F.€TODD,€P.J.,€M.S.ÌÌÌ_______________________________ÌWILLIAM€C.€KOCH,€JR.,€J.