ÿWPCß …# VUNa %¯ 0(µw@Ý4 1 @ 0lH 0D´ 0Jø 0TB 0^– 0hô 0r\ 0|Î 0†J 0Ð 1u` 0dÕ U>9B)wDC  AMãU*0âZ<½—Âv~Y D3× B vÓ' 0@ú AO:Ɖ 0DO D/“ B˜HP LaserJet 4Si/4SiMX PS 600dpiPSCRIPTÀÌÀääÀÀÌ0 (ÖÃ9 Z ‹6Times New Roman RegularX($¡¡ F G H I J£KLMÓ€WXDÒ 3|xZ((3üÝ$¤¤Ý ƒ!ÝÝ  Ýà  àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  Úóó2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)P ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ< Œ 9p`(&Times New Roman% Line 7 d!!!!7Border 1dd€-"Cþÿ << Gÿÿ< Œ 9p`(Arial ØÝ ƒ!ÝÔ€ ÔÝ  ÝÔ€$ÔÔ€$ÔÓ  Óò òÔ YYY ÔFILEDÔ€$XÔÌÌJanuary€15,€1997ÌÌCecil€W.€CrowsonÌAppellate€Court€ClerkÔ  Ôó ó wÝ ƒ!ÝÔ€ ÔÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝAccording€to€her€affidavit,€Gregory€informed€Daugherty€that€she€ð ðhad€discovered€that€theÏother€user€listed€on€his€application€owed€a€delinquent€account€to€Tri„County€that€needed€to€be€paidÏbefore€his€meter€could€be€set€according€to€Tri„Countyððs€policy.ðð€€Ì ûÝ ƒ!ÝÔ€ ÔÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝUnder€the€old€policy,€an€individual€was€denied€the€right€to€contract€for€electrical€service€atÏany€location€in€the€area€served€by€Tri„County€under€all€circumstances€and€relationships€so€long€asÏanother€individual,€who€owed€Tri„County€for€services,€resided€on€the€premises€where€servicesÏwere€being€sought.€€òòò òSmith€v.€Tri„County€Elec.€Membership€Corp.óóó ó,€689€S.W.2d€181Ï(Tenn.€App.€1985).Ì Ý ƒ!ÝÔ€ ÔÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝWe€find€òòò òDavisóóó ó€applicable€despite€the€fact€that€Daugherty,€at€the€time€of€filing€suit,€was€aÏnonmember€of€the€Cooperative.€€The€Act€expressly€provides€that€the€Cooperativeððs€bylaws€mayÏprescribe€ð ðrights€and€obligations€in€respect€of€.€.€.€membership€admission€.€.€.ððÌPtPtHHÚ(ÿáÿâùFG(üHHÚ(d'h++++'ÿÿdxd dStyl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑGenevaÑÑ ÑÒ  h HD: Geneva ÒÒ  h HD: Geneva Ò("ÿÿ$££Ò  ÒÒ  Ò€-‚ƒCþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5($$””ò òÚ  Ú1Ú  Úó ó„„'÷ÿ dxdüÿP PdÝ ƒ!ÝÔ . ÔÔ€ ÔÝ  ÝÑ\R AØ'\ÑÓ` Ü` p”XÓÑ\R AØ'\Ñ›Þ ÞÌà@ àò òIN€THE€COURT€OF€APPEALS€OF€TENNESSEE,€WESTERN€SECTIONÌà@ àAT€NASHVILLEÌà@ à_______________________________________________________ÌÌó óà à)ò òÌBILLY€JOE€DAUGHERTY,ó óà à)à àMacon€County€Circuit€CourtÌà à)à àNo.€3571Ì€€€€€Plaintiff/Appellant.à à)Ìà à)ÌVS.à à)à àC.€A.€NO.€01A01„9607„CV„00334̜ـ€ÙßR€#%"A1-j|lÿ~` ç `€€@ÿRß›à à)Ìò òTRI„COUNTY€ELECTRICó óà à)Ìò òMEMBERSHIP€CORPORATIONó ó,à à)Ìà à)Ì€€€€€Defendant/Appellee.à à)Ìà à)Ì______________________________________________________________________________ÌÌFrom€the€Circuit€Court€of€Macon€County€at€Lafayette.Ìò òHonorable€Bobby€Capers,€Judge€ó óÌÌÌÌò òThomas€H.€Bilbreyó ó,€Lafayette,€TennesseeÌAttorney€for€Plaintiff/Appellant.ÌÌÌÌò òKen€Witcheró ó,€Lafayette,€TennesseeÌAttorney€for€Defendant/Appellee.ÌÌÌÌOPINION€FILED:ÌÌœò òAFFIRMED€AND›€REMANDEDÌÌÌà àFARMER,€J.ÌÌÌÌCRAWFORD,€P.J.,€W.S.€ó ó:€(Concurs)Ìò òHIGHERS,€J.€ó ó:€œ(Concurs)ÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌ›ÓÓÓ  ÓÓ` Ü` ˜XÓœà àThe€appellant,€Billy€Joe€Daugherty€(Daugherty),€has€appealed€from€the€summaryÏjudgment€entered€by€the€trial€court€in€favor€of€the€appellee,€Tri„County€Electric€MembershipÏCorporation€(ð ðTri„Countyðð€or€ð ðthe€Cooperativeðð).€€For€reasons€set€forth€below,€we€affirm.€ÌÌà àOn€February€22,€1993,€Daugherty€applied€for€membership€and€electrical€serviceÏwith€Tri„County.€€His€application€listed€Beth€Evitts€as€a€resident€at€the€location€where€servicesÏwere€sought.€€Tri„County€initially€granted€membership€and€Daugherty€paid€a€membership€fee€andÏdeposit.€€Later€that€day,€Tri„County€employee,€Tracy€Gregory,€notified€Daugherty€that€serviceÏwould€be€denied€because€it€had€been€discovered€that€Ms.€Evitts€had€a€delinquent€account€with€theÏCooperative.× ƒ& ××  ×€€Daugherty€also€spoke€with€Gregoryððs€immediate€supervisor,€Jackie€Woodard.€€TheÏfollowing€day€Daugherty€returned€to€the€Tri„County€office€to€discuss€the€matter€with€Gregory.€€HeÏwas€not€informed€of€his€right€to€be€heard€before€the€general€manager€regarding€his€denial€ofÏservice.€His€membership€fees€were€refunded.€€On€February€24,€Daugherty€filed€the€present€actionÏfor€damages€allegedly€resulting€from€his€denial€of€service.€€On€this€same€day,€Tri„Countyððs€generalÏmanager€reviewed€Daughertyððs€application€and€ordered€that€it€be€approved.€€Service€was€providedÏDaugherty€on€this€date.€€The€affidavit€of€Ms.€Gregory€states:ÌÌÓÓà8 àà à[On]€February€24,€1993,€.€.€.€I€informed€Tri„CountyððsÏGeneral€Manager,€Kelly€Nuckols,€that€I€had€neglected€to€ask€Mr.ÏDaugherty€if€he€and€Velma€Beth€Evitts€had€resided€at€the€sameÏresidence€during€the€time€that€Ms.€Evitts€incurred€her€delinquentÏaccount.€€The€General€Manager€informed€me€that€he€was€orderingÏthat€the€Application€for€Membership€and€Electric€Service€beÏapproved.€.€.€.€€€ÌÌÌÌÓÓà àAt€the€time€of€Daughertyððs€application,€Tri„County€operated€under€General€PolicyÏNo.€22,€which,€as€relevant€here,€reads€as€follows:ÌÌÓÓà8 àB.à àWhen€an€applicant€for€new€electric€service€has€resided€with€aÏpresently€delinquent€customer€of€the€Cooperative€during€all€or€partÏof€the€time€when€the€delinquent€bill€was€incurred,€and€when€theÏdelinquent€customer€will€also€be€residing€at€the€residence€to€whichÏthe€new€electric€service€is€requested,€a€new€meter€will€not€beÏinstalled€for€the€applicant€until€the€account€of€the€delinquentÏcustomer€is€paid€in€full;ÌÌà8 à.€.€.€.€ÌÌà8 àD.à àWhen€an€application€for€new€electric€service€is€denied€basedÏupon€the€provisions€of€this€rule,€the€rule€having€been€explained€toÏthe€applicant,€the€applicant€shall€have€the€right€to€a€hearing€beforeÏthe€General€Manager€or€his€designated€representative€in€order€toÏpresent€proof€that€the€applicant€is€not€in€violation€of€this€rule;ÌÌà8 àE.à àIf€the€applicant€is€dissatisfied€with€the€final€decision€of€theÏGeneral€Manager€or€his€designated€representative€following€theÏhearing,€the€applicant€may€file€a€written€request€with€the€Board€ofÏTrustees€of€the€Cooperative€asking€the€Board€to€review€the€decision.€ÏThe€applicant€may€also€request€to€appear€before€the€Board€andÏpresent€proof€that€he€is€not€in€violation€of€this€rule.€€The€Board€shallÏdecide€whether€or€not€to€grant€any€request€to€appear€before€theÏBoard€and€shall€also€decide€whether€to€affirm,€reverse€or€modify€theÏdecision€of€the€General€Manager€or€his€designated€representative.€€ÌÌÌÌÓÓà àIn€regard€to€the€ð ðappeal€processðð€available€under€the€policy,€the€affidavit€of€Tri„County€President,€Tom€Thompson,€Jr.,€states:ÌÌÓÓà8 àà àWith€regard€to€General€Policy€No.€22,€the€Board€ofÏDirectors€recognized€the€fact€that€a€ð ðfront€lineðð€employee€could€makeÏa€mistake€in€denying€an€application€for€membership€and€electricÏservice.€€In€order€to€set€forth€a€procedure€to€correct€any€suchÏmistakes,€the€policy€provides€a€two€step€appeal€process.€.€.€.ÌÌà8 àà àAt€no€time€did€Billy€Joe€Daugherty€or€his€attorney€file€aÏwritten€request€with€the€Board€of€Directors€asking€the€Board€toÏreview€the€decision€of€the€General€Manager€or€any€other€employeeÏof€the€Cooperative€with€regard€to€Daughertyððs€application€forÏmembership€and€electric€service.ÌÌà8 àà àFurthermore,€at€no€time€did€Billy€Joe€Daugherty€or€hisÏattorney€request€to€appear€before€the€Board€of€Directors€with€regardÏto€his€application€for€membership€and€electric€service.€€ÌÌÌÌÓÓà àIn€his€complaint,€Daugherty€asserts€that€although€Tri„County€had€enacted€PolicyÏNo.€22,€it€was,€in€reality,€continuing€to€implement€a€previously€adopted€policy€found€unreasonableÏand€arbitrary€by€this€Court€in€òòò òSmith€v.€Tri„County€Electric€Membership€Corp.óóó ó,€689ÏS.W.2d€181€(Tenn.€App.€1985).× ƒ' ××  ×€€Tri„County€moved€for€summary€judgment€on€grounds€that€theÏpolicy€on€which€Daugherty€relied€as€the€basis€for€his€complaint€was€rescinded€May€3,€1985€andÏreplaced€by€a€new€policy€which€was€reasonable€and€in€compliance€with€òòò òSmithóóó ó;€that€service€wasÏprovided€Daugherty€two€days€after€he€made€application;€and€that€Daugherty€failed€to€exhaust€hisÏadministrative€remedies.€€Tri„County€submitted€supporting€affidavits€from€various€employees€andÏthat€of€its€counsel,€Ken€Witcher.€€In€response,€Daugherty€submitted€an€affidavit€and€also€reliedÏupon€the€deposition€of€Ms.€Gregory.€€The€affidavit€of€Daugherty€states,€as€relevant€here:ÌÌÓÓà8 à[O]n€February€22,€1993,€and€February€23,€1993,€I€went€to€theÏoffice€of€[Tri„County]€and€attempted€to€obtain€electric€service,Ïhowever,€[Tri„County]€refused€to€set€a€meter€because€the€individualÏthat€I€told€them€was€going€to€be€living€with€me,€owed€them€a€bill.€.€.Ï.€ÌÌà8 àà à.€.€.€.€€At€no€time€did€I€get€the€benefit€of€the€electric€serviceÏthat€had€been€provided€to€the€individual€who€was€going€to€be€livingÏwith€me.ÌÌà8 àà à[Tri„Countyððs]€employee€did€not€ask€me€if€I€received€anyÏbenefit€of€the€electric€services€which€were€owed€for,€nor€did€[Tri„County]€inform€me€that€I€could€have€a€hearing€before€the€GeneralÏManager.€.€.€.€ÌÌÌÌÓÓà àThe€trial€court€granted€Tri„Countyððs€motion€upon€finding:ÌÌÓÓà8 à[T]he€policy€relied€upon€by€[Daugherty]€as€the€basis€of€hisÏcomplaint€was€rescinded€by€[Tri„County]€on€May€3,€1985€andÏreplaced€by€a€new€policy€known€as€General€Policy€No.€22,€whichÏpolicy€the€Court€finds€to€be€reasonable,€including€paragraphs€D€andÏE€thereof€which€provide€an€administrative€procedure€for€resolving€aÏdispute€over€denial€of€electric€service,€and€[Daugherty]€failed€toÏexhaust€his€administrative€remedies€before€filing€this€lawsuit€in€thatÏhe€failed€to€request€a€hearing€before€the€General€Manager€evenÏthough€his€attorney€was€aware€that€he€had€a€right€to€request€such€aÏhearing,€and€that€the€General€Manager€did,€in€fact,€order€that€electricÏservice€be€provided€to€[Daugherty]€as€soon€as€he€became€aware€ofÏthe€dispute€two€days€after€[Daugherty]€applied€for€membership€andÏelectric€service;€ÌÌÌÌÓÓà àWe€perceive€the€issue€on€appeal€as€whether€the€trial€court€erred€in€entering€aÏsummary€judgment€for€Tri„County.€€Our€standard€of€review€on€a€motion€for€summary€judgment€isÏto€take€the€strongest€legitimate€view€of€the€evidence€in€favor€of€the€nonmoving€party,€allow€allÏreasonable€inferences€in€their€favor€and€discard€all€countervailing€evidence.€€òòò òE.g.,€Clifton€v.ÏBassóóó ó,€908€S.W.2d€205,€208€(Tenn.€App.€1995).€€It€is€only€when€there€is€no€disputed€issue€ofÏmaterial€fact€that€summary€judgment€should€be€granted€by€the€trial€court€and€sustained€by€the€CourtÏof€Appeals.€€òòò òRebel€Motor€Freight€v.€Malone€&€Hyde,€Inc.óóó ó,€813€S.W.2d€470,€473€(Tenn.ÏApp.€1991).ÌÌà àThe€record€establishes€that€Tri„County€is€a€nonprofit€cooperative€membershipÏcorporation€operating€under€the€provisions€of€the€Rural€Electric€Community€Services€CooperativeÏAct,€T.C.A.€ðððð€65„25„201,€òòò òet.€seqóóó ó.€(ð ðActðð),€which€authorizes€the€Cooperative€to€ð ðadopt,€amend,Ïand€repeal€by„laws.ðð€€T.C.A.€ðð€65„25„205(a)(8).€€T.C.A.€ðð€65„25„211€pertains€to€memberÏqualification€and€provides€that€any€person€wishing€to€become€a€member€must€be€ð ðwilling€and€ableÏto€abide€by€the€cooperativeððs€terms€and€conditions€for€rendering€service.ðð€ðð€65„25„211(a)(1).€€TheÏAct€further€provides€that€ð ð[t]he€bylaws€may€prescribe€.€.€.€qualifications,€limitations,€rights€andÏobligations€in€respect€to€membership,€and€shall€prescribe€such€in€respect€of€membershipÏadmission,€.€.€.ðð€€T.C.A.€ðð€65„21„211(a)(3).ÌÌà àOne€of€the€stated€reasons€for€the€trial€courtððs€grant€of€summary€judgment€wasÏDaughertyððs€failure€to€exhaust€his€administrative€remedies€prior€to€filing€suit.€€Tri„County€calls€ourÏattention€to€the€supreme€court€case€of€òòò òDavis€v.€Appalachian€Electric€Cooperative,€Inc.óóó ó,Ï373€S.W.2d€450€(Tenn.€1963),€wherein€suit€was€filed€against€that€cooperative€by€some€of€itsÏmembers€to€compel€the€refund€of€excess€charges.€€òòò òDavisóóó ó€held€that€before€seeking€judicial€relief,Ïthe€plaintiffs€must€have€first€exhausted€their€remedies€within€the€corporation.€€òòò òDavisóóó ó,€373€S.W.2dÏat€454.€€In€respect€thereto,€the€court€states:ÌÌÓÓà8 àà àIt€is€a€general€rule€of€law€in€this€State€that€before€a€minorityÏstockholder€or€shareholder€may€maintain€a€suit€to€enforce€his€rightsÏas€such€against€the€corporation€and€the€majority€in€charge€and€inÏcontrol€of€the€corporation,€he€is€required€to€show€that€his€remediesÏpermitted€within€the€corporate€structure€have€been€exhausted,€or€thatÏsuch€an€attempt€to€exhaust€said€remedies€would€be€a€useless€gesture.€ÏWe€have€a€number€of€decisions€supporting€this€general€statement.ÌÌà8 àà àThe€question€then€is€whether€or€not€there€is€an€availableÏavenue€for€the€redress€of€the€grievances€of€the€appellees€within€theÏcorporate€structure€which€they€have€not€attempted€to€utilize,€or€has€itÏbeen€shown€that€such€attempt€would€be€illusory€because€it€wasÏunder€the€control€of€hostile€interests.ÌÌà8 àà àIf€the€shareholder€has€not€exhausted€his€remedies€within€theÏcorporation€and€has€not€shown€that€any€attempt€along€such€linesÏwould€be€blocked€by€an€oppressive€majority,€or€be€an€idle€gestureÏfor€some€other€reason,€then€he€has€not€brought€himself€under€theÏgeneral€exception€of€useless€attempt€and€must€be€denied€relief.ÌÌÌÌÓÓòòò òIdóóó ó.€at€452.ÌÌà àIt€is€undisputed€that€Daugherty€did€not€seek€review€of€his€denial€of€service€by€theÏmeans€afforded€under€Policy€No.€22.€€Clearly,€under€òòò òDavisóóó ó,€Daugherty€would€be€required€to€doÏso€in€the€absence€of€a€showing€that€such€attempt€would€have€proven€ð ðillusory.ðð× ƒ( ××  ×€€The€questionÍthus€becomes€whether€the€doctrine€of€exhaustion€of€administrative€remedies€has€been€renderedÏinapplicable€due€to€the€undisputed€failure€of€Tri„County€to€notify€Daugherty€of€the€appeal€process.€ÌÌà àDaugherty€asserts€that€Policy€No.€22€is€ð ðunreasonableðð€because€it€does€notÏexpressly€provide€that€the€applicant€be€informed€of€the€review€process.€€Tri„County€concedes€thatÏits€employees€never€explained€the€appeals€procedure€to€Daugherty€personally,€but€asserts€thatÏcounsel€for€Daugherty€was€made€aware€of€the€process,€by€its€own€attorney,€in€previous€litigationÏvery€similar€to€the€case€at€bar.€€The€affidavit€submitted€by€Mr.€Witcher€undisputedly€supports€thisÏcontention.€€The€law€on€the€issue,€however,€is€that€ð ða€client€is€not€affected€with€notice€because€ofÏknowledge€obtained€by€his€attorney€from€outside€sources,€and€not€in€the€course€of€hisÏemployment,€as,€for€example,€where€the€knowledge€is€acquired€by€the€attorney€in€the€performanceÏof€professional€services€for€another,€.€.€.ðð€€7A€C.J.S.€òòò òAttorney€and€Clientóóó ó€ðð€182(b)€(1980);Ïòòò òsee€also€Neilson€v.€Weberóóó ó,€64€S.W.€20€(Tenn.€1901).ÌÌà à18€C.J.S.€òòò òCorporationsóóó ó€ðð€117€(1990)€provides:ÌÌÓÓà8 àà àThe€members€of€a€corporation€are€as€a€general€ruleÏconclusively€presumed€to€have€knowledge€of€its€by„laws€and€cannotÏescape€a€liability€arising€thereunder,€or€otherwise€avoid€theirÏoperation,€on€a€plea€of€ignorance€of€them.ÌÌà8 àà à.€.€.€.ÌÌà8 àà àAlthough€it€has€been€held€that€persons€dealing€with€aÏcorporation€are€affected€with€notice€of€the€provisions€of€itsÏconstitution€and€by„laws€as€well€as€the€provisions€of€its€charter,Ïstrangers€or€third€persons€are€not€chargeable€with€notice€of€by„laws,Ïand€in€order€that€they€may€be€affected€thereby€knowledge€must€beÏproved.ÌÌÌÌÓÓà àIt€is€uncontroverted€that€no€one€with€Tri„County€informed€Daugherty€of€his€rightsÏregarding€the€procedure€for€review€and€that€Daugherty€did€not€inquire.€€Daugherty€became€aÏmember€of€the€corporation€on€February€22,€albeit€for€a€short€period€of€time.€€We€find€it€just€asÍreasonable€during€the€two€day€period€of€February€22„24€for€Daugherty€to€have€made€inquiryÏregarding€any€process€of€review€afforded€within€the€corporation€as€to€immediately€pursue€suitÏagainst€it.€€Consequently,€we€hold€that€under€this€particular€set€of€facts,€Tri„Countyððs€failure€toÏpersonally€notice€Daugherty€of€its€appeal€process€is€insufficient€to€render€the€doctrine€inapplicable.€ÏAs€it€is€undisputed€that€Daugherty€failed€to€first€exhaust€his€administrative€remedies,€he€must€beÏdenied€relief.€ÌÌà àIt€results€that€the€summary€judgment€entered€in€favor€of€Tri„County€is€affirmed€andÏthis€cause€dismissed.€€Costs€are€assessed€to€the€appellant,€for€which€execution€may€issue€ifÏnecessary.ÌÌÓÓÓ` Ü` È“XÓà à___________________________________Ìà àFARMER,€J.ÌÌÌÌ______________________________ÌCRAWFORD,€P.J.,€W.S.€(Concurs)ÌÌÌ______________________________ÌHIGHERS,€J.€(Concurs)›