ÿWPCþ ho¶»ºu7¤RÚ©ÈBù²PžõñGÄl ÞÉk3S}<<´P¢GHJÈRxØ+üÂX`€œ…SÓDû8÷ïÑñ'ª÷B,‹½ q“bšâŒm¥q.˜4:V%'5®p>6ˆ®0Žøª•xÖl%  ‡s,‡™t¨Ñü:Ü ±››ãù±‘Ïå…嫧‡d4­á#Ó½éjÒœŠÂ&'èc7'Ò‘PüŽû:>¢Ð0Ã5Ã^ÿÖš‚'ÕŽàðƺêRä÷XÏåȘ’\hÎ[q&‡é®¾ ºKü]DÐpŒRdi§˜’Gf©:q6²¢=Å  ªSDÄÐÇÀ FøïB¨Ò@$ÿÎUŽW§²URFWúªo^vOd…j!XØÍ#©Œ›4Z‰ðT¼ýnu…ÏŸÓÄèŠ?÷*,‡¯Ö/ÛÌ"´ãæ1,§6P!­—T“nô=4ïöêâ¨KcÝÒ@±j%Â9à ›ÑܦS­-p”•5Œ#¢z½/ð’3½:d[S—_Ìç­àº½{B% Æ[}/’Iùw.Q¤µâh vþ&Ôí”q—Ëæ­+-–÷½C¤Â.¿7»`Úü¸( eSwoÚ\3ÔØ©÷RÏǯ4hY#æØkj¨e*# LU NW %¥ 0û«UN¦wšô4Ž¢.± Bß 0?ü 0D; Ø WU:ZZZ”””””””””””””” AQœÆí 0D³ 0D÷ 0D;; D/ B® D3˘HP LaserJet 4SiHPPCL5MS,ü,,,,,ü0nLHÎ(ÈhH  Z 6Times New Roman RegularX(Ó3c$¡¡Ñ7€|ìXXdðXXdð7ÑÑ  ÑÒ°ÒÒH°ÒÔ€¼Tþ¼XXÔÑTR[¤ AØ'ÿ Legal[¤ AØ'ÿ Legal AØ'ÿ Legal AØ'ÿ LegalTÑ(¶ÍY Z ‹6Times New Roman RegularºD»¼D½¾D¿DÀÁÂDÃ[ÄÅÆDÇÈDÉÊËDÌDÍeÎUÏÐDÑÓ€Û%sŒ&ddd3|xÛ $Ý ƒ T¡$ÝÒ°ÒÒH°ÒÔ€¼dÔ¼XXÔà ` àòòÚ  Ú1Ú  ÚóóÝ  ÝÔ€XŒöX¼¼dÔÔDHS€and€Thompson€were€dismissed€on€motion,€and€a€claim€is€presently€pendingÐ ° Ðagainst€DHS€before€the€Board€of€Claims. d(ï(3T¡$¤¤Ý ƒ3c!ÝÑ7€ŒöXXdðdð7ÑÑ  ÑÒ°ÒÒH°ÒÔ€¼dÔ¼XXÔÑTR[¤ AØ'ÿ Legal3Ø' AØ'ÿ Legalÿ3Ø'TÑÝ  Ýà ` àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  Úóó ÎÝ ƒ 1O$ÝÒ°ÒÒH°ÒÔ€¼T„¼XXÔà ` àòòÚ  Ú2Ú  ÚóóÝ  ÝÔ€X¼£X¼¼T„ÔThe€parties€seemingly€presumed€that€the€trial€court€did,€in€fact,€find€fraudulentÐ ° Ðmisrepresentation.€€A€careful€reading€of€his€findings,€however,€reveal€that€he€stopped€short€ofÏfinding€that€Mr.€Lee€falsely€represented€that€the€participants€would€likely€elect€directÏpayments€from€DHS. ùÝ ƒ"¯"ÝÝ  ÝÔ€XÈz XXXÔÔ€  XXÈzÔÓ  Óò òÔ Ad ÔFILEDÔ€XÈz X ÔÐ  ÐÌApril€23,€1999ÌÌCecil€Crowson,€Jr.ÌAppellate€Court€ClerkÔdAhÔó ó,c½¬AZ‹"Arial Regular!"#$&Cþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5(3¯$¢¢Ý ƒ!ÝÝ  Ý(3¯$££Ý ƒ!ÝÝ  Ý($$””ò òÚ  Ú1Ú  Úó ó(('÷ÿ dxdüÿP Pd 'ÿÿdxdÝ ƒ3c!ÝÑ7€ŒöXXdðdÈ7ÑÑ  ÑÒ°ÒÒH°ÒÔ€¼dÔ¼XXÔÑTR[¤ AØ'ÿ Legal3Ø' AØ'ÿ Legalÿ3Ø'TÑÝ  ÝñÑñ›ñÑñÑ  ÑÓÓÔ€¼Íy¼¼¼dÔÔÑ7€Œö»XdðXXdð7Ñò òòòÓ  ÓñÛññÑñßr€ )<,(j 8` `€€@E0±` 8ttxPh°ð  rßñÑññÛññÛññÛññÛññÑñ›ñÑññÛññÛñ›ñÛñIN€THE€COURT€OF€APPEALS€OF€TENNESSEEÌñÛñœßt€ )>.*jxp.` `€€@E ú` 8ttxPØ2ð È tß›ñÛñAT€NASHVILLEÌÓsÓÌó óóóÓÓADMINISTRATIVE€BOARD€FORà  à)à p àGRUNDY€CIRCUITÐ  T ÐFIRST€UNITED€METHODIST€à  à)Ð  d ÐCHURCH€OF€TRACY€CITY,à À àà  à)à p àNO.€01A01„9804„CV„00193Ð $ t ÐTENNESSEE,à  àà h àà À àà  à)Ð 4„  Ðà ` àà ¸ àà  àà h àà À àà  à)Ìà ` àPlaintiff/Appelleeà h àà À àà  à)à p àHON.€CURTIS€SMITHÐ T¤  Ðà ` àà ¸ àà  àà h àà À àà  à)à p àJUDGEÐ d´  Ðv.à ` àà ¸ àà  àà h àà À àà  à)Ð tÄ  Ðà ` àà ¸ àà  àà h àà À àà  à)ÌTENNESSEE€DEPARTMENT€OFà  à)Ð ”ä ÐHUMAN€SERVICES,à h àà À àà  à)Ð ¤ô ÐFAGAN€THOMPSON,€individuallyà  à)Ð ´ Ðand€as€Program€Manager€for€DHS,à  à)Ð Ä ÐSOUTHEAST€TENNESSEE€à À àà  à)Ð Ô$ ÐPRIVATE€INDUSTRY€COUNCIL,à  à)Ð ä4 ÐINC.,€andà ¸ àà  àà h àà À àà  à)Ð ôD ÐWANZA€LEE,€individually€and€asà  à)Ð T ÐDirector€of€SETPIC,€INC.,à À àà  à)Ð d Ðà ` àà ¸ àà  àà h àà À àà  àœ)à p àREVERSED€and›Ð $t Ðà ` àDefendants/Appellantsà À àà  à)à p àœDISMISSED›Ð 4„ ÐÌÌÌMichael€A.€McMahan,€Chattanooga,€for€Appellant€Southeast€Tennessee€PrivateÏIndustry€Council,€Inc.ÌÌGregory€M.€œOððNeal›,€Winchester,€for€Appellee.ÌÌÌò òòòÓ  ÓÔ‡ ¥ë ¼¼ÍyÔO€P€I€N€I€O€NÔ#†¼Íy¼  ¥ë #ÔÐ Ô)$%# ÐÓ ÓÌà ` àà ¸ àà  àà h àà À àà  àà p àó óóóINMAN,€Senior€JudgeÐ ,l'% ÐÌÓÓÓ  Óà ` àThis€regrettable€controversy€arose€from€an€essential€misunderstandingÏbetween€good€people€dealing€in€good€faith€to€provide€good€services€to€economicallyÏdisadvantaged€families€in€Grundy€and€surrounding€counties.Ìà ` àThe€complaint€was€filed€by€the€First€United€Methodist€Church€of€Tracy€CityÏagainst€the€Tennessee€Department€of€Human€Services,€its€Program€Manager€FaganÏâ âThompson,€the€Southeast€Tennessee€Private€Industry€Council,€Inc.€[Council],€andÐ Ü8,41 Ðits€Executive€Director,€Wanza€Lee,€to€recover€the€losses€it€sustained€in€attemptingÏto€provide€transportation€for€participants€in€a€social€program.Ìâ ââ âà ` àThe€legal€predicate€of€the€complaint€is€asserted€òòfraudulentóó€misrepresentationsÐ ð@ Ðand€òòfraudulentóó€inducements€by€the€defendants€arising€from€a€nebulous€agreementÐ  ` Ðby€the€Church€to€furnish€transportation€for€recipients€of€benefits€provided€by€theÏFamilies€First€Program.€€The€Church€leased€four€buses€for€a€period€of€90€days€forÏthe€purpose€of€transporting€the€recipients,€estimated€to€be€circa€250,€on€a€daily€basis,Ïbelieving€that€the€Council€would€reimburse€it€$7.00€per€rider,€but€unaware€that€DHSÏwould€reimburse€some€of€the€recipients€directly€if€they€provided€their€ownÏtransportation.€€Most€of€the€participants€opted€for€the€money,€as€a€result€of€whichÏthe€plaintiffððs€buses€were,€as€a€practical€matter,€seldom€utilized.€€The€Church€lostÏ$18,000.00€plus€interest€on€this€humanitarian€venture.׃ ×Ý ƒ #ÃÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×Ð ` Ðà ` àThe€trial€court€found€thatÌÓÓà8 ` àð ðMr.€Lee,€as€executive€director€of€œSETPIC,›€represented€to€UMCTCÏthat€the€only€means€of€providing€transportation€to€Families€FirstÏparticipants€was€by€bus.€€The€proof€establishes€that,€had€UMCTCÏknown€participants€in€the€Families€First€Program€were€offered€directÏpayment€for€transportation€and€that€most€would€likely€elect€to€be€paidÏdirectly,€the€church€would€not€have€pursued€providing€transportationÏand€would€not€have€obligated€itself€for€the€cost€of€leasing€buses.€€ThisÏmisrepresentation€was€material€as€it€was€a€major€consideration€ofÏUMCTC€in€estimating€the€need€for€œbuses›€to€provide€transportation.ððÐ ` 8"` 8" ÐÌà8 ` àð ðMr.€Lee€was€a€principle€source€of€information€to€UMCTC€because€heÏhad€long€experience€in€a€field€where€UMCTC€was€ignorant.€€BecauseÏof€Mr.€Leeððs€superior€knowledge,€UMCTC€reasonably€relied€on€himÏas€a€source€of€information.€€Their€reliance€on€the€information€heÏprovided€resulted€in€UMCTC€incurring€the€expense€and€interest€to€theÏdate€of€trial€on€the€loan€made€by€the€church€to€pay€the€lease.ððÐ ` 8"` 8" ÐÌà ` àThe€judgment€incorporates€the€foregoing€finding,€and€further€provides€that€ÌÌà8 ` àð ð.€.€.€false€representations€were€made€with€(sic)€knowingly€orÏrecklessly,€the€Plaintiff€actually€relied€upon€the€misrepresentations,Ïand€the€reliance€was€reasonable€under€the€circumstances,€and€theÐ  6ð1/ ÐPlaintiff€suffered€damages€as€a€result€of€its€reliance€upon€the€materialÏrepresentations€put€forth€by€the€Defendant.ððÐ ` 8"` 8" ÐÌÓÓà ` àThe€Council€and€Mr.€Lee€appeal,€and€present€for€review€the€issue€of€whetherÏthe€plaintiff€was€entitled€to€recover€under€the€doctrine€of€fraudulentÏmisrepresentation€because€it€did€not€reveal€that€œDHS›€would€pay€some€participantsÏdirectly€upon€their€request.Ìà ` àÔ‡¼T„¼¼¼½9ÔOur€review€of€the€findings€of€fact€made€by€the€trial€Court€is€òòde€novoóó€uponÐ `°  Ðthe€record€of€the€trial€Court,€accompanied€by€a€presumption€of€the€correctness€ofÏthe€finding,€unless€the€preponderance€of€the€evidence€is€otherwise.òò€Tenn.€R.€App.Ð ¸ ÐP.,€Rule€13óó(d)Ô#†¼½9¼¼¼T„#ÔÔ‡¼T„¼¼¼½9Ô;€òòCampbell€v.€Florida€Steel€Corp.,€óó919€S.W.2d€26€(Tenn.€1996).Ô#†¼½9¼¼¼T„‘#ÔÐ ä4 Ðà ` àThe€facts€are€not€in€substantial,€material€dispute.€€The€Reverend€Mr.€Walters,Ïpastor,€testified€that€his€Church€was€interested€in€starting€a€day€care€center€under€theÏFamilies€First€Program,€to€be€funded€by€œDHS,›€which€thereupon€inquired€of€theÏChurch€if€it€might€also€consider€providing€the€transportation€necessary€for€theÏProgram.€€A€meeting€was€held€in€œDunlap›€on€July€18€to€discuss€child€care€andÏtransportation.€€The€role€of€the€Council€was€that€of€transportation€broker€for€DHS.Ìà ` àMr.€Walters€attended€œthe›€meeting€in€Dunlap€accompanied€by€Martha€Nixon,Ïa€member€of€the€Church.€€They€were€informed€that€Fagan€Thompson,€of€theÏDepartment€of€Human€Services,€was€in€charge€of€the€transportation€program€forÏTennessee,€and€that€the€Council€would€be€the€broker€for€DHS€in€providing€theÏnecessary€transportation.€€The€Church€officials€were€told€that€they€would€be€paidÏabout€$3.50€per€child€and€$4.00€per€adult,€later€increased€to€$7.00€per€day.Ìà ` àAfter€the€Dunlap€meeting,€œChurch›€representatives€pursued€the€matter€with€theÏlocal€DHS€office€in€Tracy€City.€€œMs.›€Nixon€began€gathering€information€about€theÏnumber€of€people€who€were€eligible€and€who€had€indicated€in€DHS€surveys€a€needÏfor€transportation€services.€€She€was€in€contact€with€the€local€DHS€office€daily€forÐ ð8@41 Ðthree€weeks€obtaining€census€figures€about€DHS€clients€who€might€useÏtransportation.€€She€was€not€told€by€DHS€about€its€authority€to€pay€$5.00€per€day€toÏparticipants€for€alternative€transportation.Ìà ` àThe€Church€appointed€a€committee,€made€plans,€and€developed€a€budget,Ïwhich€concluded€that€the€expenses€for€the€transportation€might€exceed€the€revenue,Ïbut€recommended€to€the€Administrative€Board€of€the€Church€that€it€proceed€with€theÏproject€if€its€expenses€were€guaranteed€for€90€days.Ìà ` àMr.€Walters€informed€Mr.€Thompson€that€the€Church€could€not€provideÏtransportation€without€a€guarantee€of€its€costs.€€Walters€was€informed€by€Mr.€LeeÏthat€he€did€not€have€the€authority€to€guarantee€the€costs€because€the€approval€ofÏDHS€was€required.Ìà ` àBy€the€end€of€July,€the€Church€committee€had€obtained€information€from€theÏDepartment€of€Human€Services€about€the€number€of€people€who€might€be€utilizing€Ïthe€transportation€program.€These€figures€were€furnished€to€Mr.€Thompson€and€toÏMr.€Lee.Ìà ` àMr.€Walters€testified€that€Mr.€Thompson€led€him€to€believe€that€it€would€beÏa€ð ðpilot€type€programðð€for€providing€transportation€under€the€Families€FirstÏProgram,€and€that€he€discussed€the€matter€with€Mr.€Lee,€who€told€him€that€theÏCouncil€did€not€œthen€have€a€contract›€with€DHS.€€Mr.€Andy€of€the€Church€admittedÏthat€Mr.€Lee€told€them€that€the€approval€of€DHS€was€required€for€any€contract.Ìà ` àThe€Church€representatives€had€been€told€by€DHS€representatives€that€theyÏcould€expect€45€participants€initially€and€that€the€number€could€grow€to€250€to€300.€ÏThese€numbers€were€obtained€from€interviews€by€DHS€of€their€clients.€€Mr.€Lee€wasÏnever€a€party€œto›€the€discussions€about€how€many€participants€would€be€involved€orÏâ âhow€many€buses€would€be€needed.Ð °730 Ðà ` àThe€Church€finalized€its€plans€to€enter€into€an€agreement€for€transportationÏâ âof€Families€First€participants€on€August€14,€1996,€and€a€week€later€Mr.€Walters€wasÏinformed€by€Mr.€Lee€that€the€rate€that€the€œCouncil›€was€authorized€to€pay€was€$7.00Ïa€day.€€Mr.€Walters€said€this€daily€rate€was€inadequate,€and€acknowledged€that€at€allÏtimes€he€knew€that€so€far€as€Mr.€Lee€was€concerned€the€rate€would€be€$7.00€per€dayÏper€passenger€unless€he€received€some€authority€from€DHS.Ìà ` àOn€August€œ23rd›,€there€was€a€meeting€at€the€Department€of€Human€ServicesÏoffices€in€Tracy€City€about€the€implementation€of€the€Families€First€Program.€€TheÏprimary€purpose€of€the€meeting€was€to€tell€the€participants€what€they€were€supposedÏto€do€and€explain€procedures€for€all€components€of€Families€First€including€childÏcare,€adult€education€and€transportation.€€At€that€meeting€Mr.€Lee€announced€thatÏthe€Tracy€City€United€Methodist€Church€had€been€selected€as€the€transportationÏprovider.€€Mr.€Walters€testified€that€Mr.€Lee€stated€the€Churchððs€expenses€would€beÏguaranteed€for€90€days,€but€Mr.€Lee€denied€that€he€ever€discussed€a€90€day€pilotÏcontract€with€the€Church.€€Mr.€Andy€testified€that€Mr.€Lee€said€a€financial€guaranteeÏwas€being€ð ðworked€onðð€but€no€term€was€mentioned.€€òòMr.€Walters€understood€thatÐ $à Ðthe€guarantee€would€come€from€DHS,óó€and€acknowledged€that€Mr.€Lee€told€him€atÐ °&"  Ðthat€time€that€the€State€had€not€yet€prepared€his€contract.€€Mr.€Andy€admitted€ð ðinÏfairness€to€Mr.€Lee,ðð€that€he€correctly€told€the€Church€about€a€possible€guaranteeÏfrom€DHS.Ìà ` àThe€Church€had€previously€made€arrangements€with€Taylor€Bus€Sales€inÏMurray,€Kentucky,€to€lease€four€buses€for€a€period€of€90€days.€€It€took€delivery€ofÏthe€buses€during€the€last€week€of€August.€€But€before€taking€delivery€of€the€buses,ÏMr.€Walters€called€Mr.€Lee,€who€told€him€that€he€did€not€yet€have€a€contract€in€placeÏwith€the€Department€of€Human€Services.€€Fagan€Thompson€of€DHS€told€Mr.ÏWalters€that€the€ð ðcontract€was€in€the€works,ðð€that€it€would€be€forthcoming,€and€ð ðnotÐ Ð9 52 Ðto€worry.ðð€€Nevertheless,€the€buses€were€delivered,€even€though€Mr.€Walters€knewÏthat€no€contract€had€been€approved.Ìà ` àA€contract€was€forwarded€from€the€Council€to€Mr.€Andy€of€the€Church€on€orÏabout€August€œ29th›.€€It€òòdid€not€provide€a€financial€guarantee.óó€€Whereupon,€Mr.Ð  ` ÐWalters€called€both€Fagan€Thompson€and€Wanza€Lee,€but€it€was€Fagan€ThompsonÏof€DHS€who€advised€Mr.€Walters€that€an€addendum€would€be€forthcoming.€€Mr.€LeeÏagain€told€Rev.€Walters€that€he€could€do€nothing€without€directions€from€œñ;ñthe€ñ;ñDHS›€andÏfurnished€Mr.€Walters€a€copy€of€his€contract€with€the€State€òòshowing€that€he€did€notÐ à Ðhave€the€authorityóó€to€do€what€Mr.€Thompson€had€apparently€promised.Ð ° Ðà ` àOnce€the€Church€began€the€transportation,€there€were€few€participants€inÏFamilies€First€who€utilized€the€transportation€services,€because€the€Department€ofÏHuman€Services€would€pay€participants€up€to€$5.00€per€day€to€arrange€their€ownÏtransportation.€Mr.€Lee€testified€that€approval€for€alternate€transportation€came€fromÏDHS€case€managers€and€DHS€œproceduresñ<ñ,ñ<ññ=ñ›€andñ=ñ›€that€he€could€not€speculate€on€who€wouldÏuse€alternative€means,€and€that€he€had€no€knowledge€of€the€research€that€UMCTCÏmembers€were€doing€with€DHS€about€the€participants.Ìà ` àThe€Church€stopped€its€participation€in€the€œprogramñ>ñ,ñ>ñ›€and€returned€the€leasedÏbuses€at€the€end€of€the€90€day€lease.€€It€then€sought€redress€from€DHS€for€the€moneyÏthat€it€had€lost,€but€the€Commissioner€stated€that€she€was€unable€to€resolve€theÏmatter.Ìà ` àIt€is€worth€emphasizing€that€Mr.€Walters€testified€that€the€agreement€wasÏmade€ð ðbetween€myself€and€Fagan€Thompson,ðð€and€that€it€was€Mr.€Thompson€whoÏreassured€him€that€the€contract€was€ð ðin€the€works.ððÌà ` àWe€find€scant€evidence€in€this€record€that€Mr.€Lee€represented€orÏâ âmisrepresented€anything€to€the€Church,€which€argues,€in€the€brief,€that€LeeÐ °730 Ðð ðcandidly€admittedðð€from€past€experiences€that€he€anticipated€a€high€percentage€ofÏthe€participating€people€would€choose€to€use€the€alternative€form€of€transportation.Ìâ âà ` àThe€record€reveals€this€testimony€by€Mr.€Lee,€which€we€reproduce€verbatim:ÌÓÓà ` àQ:à8 ¸ àDid€you€know€how€many€people€in€Grundy€County€would€beÐ  ` Ðusing€that€[alternative€means]?Ð ¸ 8"¸ 8" ÐÌà ` àA:à8 ¸ àNo.Ð@ ¸ 8"¸ 8" ÐÌà ` àQ:à8 ¸ àWhen€did€you€find€that€out?Ð`° ¸ 8"¸ 8" ÐÌà ` àA:à8 ¸ àWell,€as€the€request€for€them€to€start€using€it€would€come€in.€Ð €Ð  ÐNo€way€to€speculate€as€to€the€level€of€activity€for€.€.€.€now,€weÏdid€feel€that€a€high€percentage€of€the€people€across€the€groupÏlike€for€œstipending›,€you€know.€€That€was€my€feelings.Ð ¸ 8"¸ 8" ÐÌà ` àQ:à8 ¸ àFrom€past€experience?ÐÐ ¸ 8"¸ 8" ÐÌà ` àA:à8 ¸ àPast€experience.€€But€to€really€know,€no€way€to€tell€you€that.Ðð@¸ 8"¸ 8" ÐÌÓÓà ` àThe€quoted€testimony€hardly€rises€to€the€admission€of€anything.Ìà ` àTo€summarize,€there€is€no€evidence€in€this€record€that€Mr.€Lee€of€the€CouncilÏfraudulently€misrepresented€or€induced€the€Church€to€contract€as€it€did.Ìà ` àTo€recover€for€fraudulent€misrepresentation,€a€plaintiff€must€prove€that€theÏdefendant€knowingly€and€falsely€misrepresented€a€past€or€present€fact€which€theÏplaintiff€reasonably€relied€upon.€òò€Metro€œGovððt›.€v.€œMcKinney›,óó€852€S.W.2d€233€(Tenn.Ð °&"  ÐApp.€1992).€€We€reiterate€that€there€is€no€proof€in€this€record€that€the€defendantsÏknowingly€and€falsely€misrepresented€to€the€plaintiff€that€some€participants€mightÏopt€to€be€paid€directly€by€DHS€and€provide€their€own€transportation.€€Fraud€aside,Ïthere€is€no€evidence€that€the€Council€deliberately€failed€to€inform€the€plaintiff€thatÏsome€participants€might€opt€out.׃ ×Ý ƒ #ÃÝòòÚ  Ú2Ú  ÚóóÝ  Ý×  ×€€œÐ P1 ,* ÐÐ p3À., Їà ` àIt€was€the€DHS€that€recruited€the€Church€to€submit€a€proposal€to€provide€theÏtransportation€services,€and€virtually€all€of€the€information€on€which€the€ChurchÏrelied€was€furnished€by€employees€of€DHS.€€Ìà ` àThe€trial€courtððs€decision€appears€to€rest€on€the€following€two€factualÏfindings:€first,€that€Mr.€Lee€told€the€ññChññññchcññurch€that€ð ðthe€only€means€of€providingÏtransportation€to€Families€First€participants€was€by€busðð€and€the€second,€that€ñžñMñžññŸñmñŸñr.Ïñ ñLñ ññ¡ñlñ¡ñee€never€informed€the€ñ¢ñCñ¢ññ£ñcñ£ñhurch€ð ðthat€participants€could€elect€to€be€directly€paid€forÏtransportation.ðð€€The€evidence€in€the€record€does€not€support€the€trial€courtððs€findingÏthat€ñ¤ñMñ¤ññ¥ñmñ¥ñr.€Lee€made€this€statement.€€The€only€testimony€on€this€point€was€that€ofÏMartha€Nixon€who€stated€that€ð ð[w]e€were€told€that€there€was€no€transportation€inÏGrundy€County€if€we€did€not€help.ðð€€Her€use€of€the€passive€voice€obscures€theÏidentity€of€the€person€who€made€that€statement.€€After€reading€the€record€as€a€whole,Ïespecially€the€testimony€of€the€Reverend€William€Bruce€Walters€and€Leo€Andy,€ñ¦ñweñ¦ññ¦ñtheñ¦ñÏñ§ñconcludeñ§ññ§ñmost€appropriate€conclusion€isñ§ñ€that€this€statement€was€ñ¨ñmost€likely€ñ¨ñmade€by€Fagan€Thompson€or€someÏother€employee€of€the€Department.Ìà ` àIn€order€to€recover€for€fraudulent€or€negligent€misrepresentation,€the€plaintiffÏmust€prove€that€it€reasonably€relied€on€false€statements€made€by€the€defendant.€€òòSeeÐ °&"  ÐSñªññ©ñopeñ©ññªññ«ñpeñ«ññ¬ñepñ¬ñaker€v.€Cates€Co.,€óó879€S.W.2d€811,€816€(Tenn.€1994);€òòMetropolitan€Govððt.€v.Ð Ð( $" ÐMcKinney,€óó852€S.W.2d€233,€237€(Tenn.€App.€1992).€€The€ñ­ñCñ­ññ®ñcñ®ñhurchððsÐ ð*@&$ Ðmisrepresentation€claims€against€Mr.€ñ¯ñLñ¯ññ°ñlñ°ñee€and€STPCI€must€fail€because€of€theirÏconcession€that€all€the€representations€about€the€details€of€the€Families€First€programÏwere€made€by€representatives€of€the€Department.€€There€is€no€factual€or€legal€basisÏfor€holding€Mr.€ñ±ñLñ±ññ²ñlñ²ñee€or€STPIC€responsible€for€these€statements.Ìà ` àThe€trial€courtððs€second€factual€finding€is€that€Mr.€Lee€did€not€inform€theÏrepresentatives€of€the€ñ³ñCñ³ññ´ñcñ´ñhurch€that€participants€in€the€Families€First€program€couldÏreceive€a€direct€stñµñiñµññ¶ñoñ¶ñpend€for€arranging€their€own€transportation.€€Mr.€Lee€candidlyÐ Ð9 52 Ðconcedes€that€he€did€not€inform€the€ñ·ñCñ·ññ¸ñcñ¸ñhurch€of€this€option,€but€it€does€not€necessarilyÏfollow€that€his€failure€to€do€soñ¹ñ€ñ¹ñwñºñ€ñºñarrants€imposing€liability€on€him€or€STPIC.Ìà ` àOur€courts€have€recognized€that€the€nondisclosure€of€information€may€giveÏrise€to€an€action€fñ»ñorñ»ññ¼ñroñ¼ñ€fraud.€€However,€concealment€or€nondisclosure€becomesÏfraudulent€only€when€it€is€the€duty€of€a€party€having€knowledge€of€the€facts€toÏdisclose€them€to€the€otherñ½ñ€ñ½ñ€party.€€òòSee€Macon€County€Livestock€Mkt.,€Inc.€v.Ð P   ÐKentucky€State€Bank,€Inc.,€óó724€S.W.2d€343,€349€(Tenn.€App.€1986).€€This€dutyÐ pÀ  Ðarises€only€when€(1)€there€is€a€fiduciary€relationship€between€the€parties,€(2)€one€ofÏthe€parties€has€expressly€repoñ¾ñnñ¾ñsed€trust€and€confidence€inñ¿ñnñ¿ñ€the€other,€or€(3)€theÏcontract€is€intrinsically€fiduciary€and€calls€for€perfect€good€faith.€€òòSee€DomesticÐ Ð  ÐSewing€Mach.€Co.€v.€Jackson,€óó83€Tenn.€418,€424„25€(1885);€ñÂññÀñJñÀññÁñuñÁññÂññÃñòòñÃññÄñJuñÄññÃñòòñÃññÂñjUñÂñstice€v.€AndersonÐ ð@ ÐCounty,€óó955€S.W.2d€613,€616„17€(Tenn.€App.€1997).Ð ` Ðà ` àThese€legal€standards€govern€our€analysis€of€the€claims€in€this€case€evenÏthough€the€claimant€is€a€religious,€not„for„profit€entity.€€Religious€organizationsÏengaging€in€secular€transactions€are€not€entitled€to€more€favorable€treatment€by€theÏlaw€ñÅñsñÅññÆñdñÆñimply€because€their€motives€are€eleemosynary€rather€than€monetary.€€Under€theÏfacts€of€this€case,€the€ñÇñCñÇññÈñcñÈñhurch€did€not€have€a€fiduciary€relñÉñañÉñtionship€with€Mr.€Lee€andÏhad€not€expressly€placed€its€trust€and€confidence€in€him.€€To€the€contrary,€if€theÏñÊñCñÊññËñcñËñhurch€was€placñÌñlñÌñing€its€trust€and€confidence€in€anyone,€it€was€in€Mr.€Thompson€andÏthe€other€Department€employees.€€The€information€concerning€the€opportunity€forÏparticipants€in€the€Families€First€program€to€obtain€direct€subsidies€rather€than€toÏuse€state„provided€transportation€wasñÍñ›ñÍñ€ñÍñpublicallyñÍññÍñpubliclyñÍññÍñœñÍñ€available€to€anyone€performing€dueÏdiligance.€€Thus,€under€the€facts€of€this€case,€Mr.€Lee€did€not€have€a€duty€to€informÏthe€ñÏñCñÏññÐñcñÐñhurch€about€the€other€transportation€options€available€to€the€Families€FirstÏâ âparticipants.€€€€Ð °730 Ðà ` àWe›€conclude€that€the€evidence€preponderates€against€the€judgment€which€isÏâ âreversed.€€The€case€is€dismissed€at€the€costs€of€the€appellee.ÌÓÓÌœñÎñÌñÎñ›à ` àà ¸ àà  àà h àà À àà  à_______________________________Ìà ` àà ¸ àà  àà h àà À àà  àWilliam€H.€Inman,€Senior€JudgeÌCONCUR:ÌÌà ` àÌÌ_______________________________ÌWilliam€C.€Koch,€Jr.,€JudgeÌÌÌÌ_______________________________ÌCharles€D.€Susano,€Jr.,€JudgeÌÌ