ÿWPC~) …# VUNa %¯ 0Nµb 0Ù ä bì w@ô 4 m6 ÆM 0e 4x 0DŒ Ð †ß 0Je 0T¯ 0^ 0ha 0rÉ 0|; 0†· 0= 1uÍ 0dB B¦ D3ÃU>ö 0@4B)tDC AMàU*-1WPˆ'ØÿÿŠþv~ˆ vÓ" AOÙ'Æ(( 0Dî( D/2) Ba)˜HP LaserJet 4Si/4SiMX PS 600dpiPSCRIPTÀÌÀääÀÀÌ0 'í€"  Z 6Times New Roman Regular¼(&öy$¡¡Ó  ÓÙñÓ Ù- ù-(‰(2I·$¤¤Ý ƒöy!ÝÓ  ÓÙñÓ ÙÝ  ÝÒ°ÒÒ„°ÒÔ€X%BX¼¼ÔÓ  Óà ` àòòÚ  Ú0Ú  Úóó- ù- ]_D`aDbcdh]eiÓ€sÿU‹ÿÀÀÀ1, 2, 3,Level 1Level 2Level 3Level 4Level 54#)Þ2Quick 1.Úƒ ÚÚ  Ú.à0 àÛ€ ÛDÒ (#Ã$òòÚ  Ú0Ú  Úóó3|xsglanton v. beckley - concurring opinion - Todd Ì  $ ' IB011C20IB011C2 .   2 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 d$$$$'ÿÿdxd< Œ 9p`(&Times New Roman("ÿÿ$££Ò  ÒÒ  Ò% Line 7 d....7Border 1dd€-/Cþÿ << Gÿÿ< Œ 9p`(Arial 'Ý ƒ!ÝÑ  ÑÑ#€d#ÑÔ€,ÔÔ€,¼ÔÓ  ÓÝ  ÝÔ€1ÔÔ€1ÔÓ  Óò òÔ YYY ÔFILEDÔ€1XÔÌÌDecember€11,€1996ÌÌCecil€W.€CrowsonÌAppellate€Court€ClerkÔ  Ôó ó FÝ ƒ!ÝÑ#€d#ÑÔ€,ÔÔ€,¼ÔÓ  ÓÝ  ÝÝ ƒ$ÝÒ  ÒÒ „ ÒÔ€,XÔÓ  Óà àòòÚ  ÚÚ  ÚóóÝ  Ý›Ms.€Beckley€actually€filed€versions€of€her€amended€counter„complaints€in€the€circuit€court.Ì Ý ƒ!ÝÑ#€d#ÑÔ€,ÔÔ€,¼ÔÓ  ÓÝ  ÝÝ ƒ$ÝÒ  ÒÒ „ ÒÔ€,XÔÓ  Óà àòòÚ  ÚÚ  ÚóóÝ  ÝThe€tort€of€fraudulent€misrepresentation€consists€of€knowinglyÏand€recklessly€making€a€false€representation€as€to€a€material€fact€thatÏwas€justifiably€relied€on€by€the€plaintiff.€€òòSpeaker€v.€¢Cates€Co.£,óó€879Ï¢S.W.2d£€811,€816€(Tenn.€1994);€òòHarrogate€Corp.€v.€Systems€Sales€Corp.,óóÏ915€¢S.W.2d£€812,€817€(Tenn.€Ct.€App.€1995).€€In€order€to€support€a€claimÏof€fraudulent€misrepresentation,€the€representation€must€relate€to€aÏpast€or€present€fact.€€òòFowler€v.€Happy€Goodman€Family,óó€575€¢S.W.2d£€496,Ï498„99€(Tenn.€1978).€€The€tort€of€fraudulent€misrepresentation€must€beÏdistinguished€from€the€tort€of€promissory€fraud€that€does€not€require€aÏmisrepresentation€of€a€present€or€past€fact€but€rather€a€promise€ofÏfuture€action€with€no€present€intention€to€carry€out€the€promise.€€òòOakÏRidge€Precision€Indus.,€Inc.€v.€First€Tenn.€Bank€¢Natððl£€¢Assððn£,óó€835€¢S.W.2d£Ï25,€29€(Tenn.€Ct.€App.€1992);€òòStacks€v.€Saunders,óó€812€¢S.W.2d£€587,€592Ï(Tenn.€Ct.€App.€1990);€òò¢Brungard£€v.€Caprice€Records,€Inc.,óó€608€¢S.W.2d£€585,Ï590€(Tenn.€Ct.€App.€1980).Ì õÝ ƒ!ÝÑ#€d#ÑÔ€,ÔÔ€,¼ÔÓ  ÓÝ  ÝÝ ƒ$ÝÒ  ÒÒ „ ÒÔ€,XÔÓ  Óà àòòÚ  ÚÚ  ÚóóÝ  ÝòòSee€also,óó€òò¢Spragins£€v.€Sunburst€Bank,óó€605€So.€2d€777,€780€(Miss.Ï1992);€òò¢Cechovic£€v.€¢Hardin£€&€¢Assocs£.,€Inc.,óó€902€P.2d€520,€525€(Mont.Ï1995);€òòBishop€Logging€Co.€v.€John€Deere€Indus.€Equip.€Co.,óó€455€¢S.E.2d£€183,Ï188€n.6€(¢S.C.App£.€1995).Ì €Ý ƒ!ÝÑ#€d#ÑÔ€,ÔÔ€,¼ÔÓ  ÓÝ  ÝÝ ƒ$ÝÒ  ÒÒ „ ÒÔ€,XÔÓ  Óà àòòÚ  ÚÚ  ÚóóÝ  ÝThe€doctrine€of€contributory€negligence€formerly€applied€toÏactions€for€negligent€misrepresentation.€òòIsaacs€v.€¢Bokor£,óó€566€¢S.W.2d£Ï532,€540€(Tenn.€1978);€Restatement€(Second)€of€Torts€ðð€¢552A£€(1977).€ÏAccordingly,€the€doctrine€of€comparative€fault€applies€to€the€actions€inÏaccordance€with€the€Tennessee€Supreme€Courtððs€decision€in€òòMcIntyre€v.Ï¢Balentine£,óó€833€S.W.2d€€52€(Tenn.€1992).ÌPtPtHHÚ(ÿáÿâùFG(üHHÚ(d'hStyl{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  inion Geneva ÒÒ  inion Geneva Ò€-‚ƒCþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5($$””ò òÚ  Ú1Ú  Úó ó„„'÷ÿ dxdüÿP PdÝ ƒ!ÝÔ . ÔÔ€,ÔÔ€,¼ÔÓ  ÓÝ  ÝÑ Ü ÑÒ  ÒÒ ° ÒÒ  ÒÒ „ ÒÑ\R AØ'\ÑÑ\R AØ'\ÑÑ€ÑÑ7€K¼¼ddÈ7ÑÑ  ÑÑ  ÑÔ€,„Ô›Þ ÞÌà@ àò òIN€THE€COURT€OF€APPEALS€OF€TENNESSEEÌà@ àMIDDLE€SECTION€AT€NASHVILLEó óÌÌÔ€,¼ÔÌLUVELL€L.€GLANTON,à àà à)Ìà àà àà àà àà àà à)Ìà àPlaintiff/Appellant,à àà à)Ìà àà àà àà àà àà à)à àDavidson€CircuitÌà àà àà àà àà àà à)à àNo.€95C„2102ÌVS.à àà àà àà àà àà à)Ìà àà àà àà àà àà à)à àAppeal€No.Ìà àà àà àà àà àà à)à à01A01„9606„CV„00283̜ـ€ÙÙ€€ÙßR€02/A1-j|^¥` ç `€€@ÿRß›SHIRLEY€BECKLEY,à àà àà à)Ìà àà àà àà àà àà à)Ìà àDefendant/Appellee.à àà à)ÌÌÌÓ€ÓÑ€ÑÑ7€K»¼d¼¼d7Ñà àà àà@ àòòò òÔ€,„ÔCONCURRING€OPINIONÔ€,¼Ôóóó óÌÌà àI€concur€with€the€results€of€the€courtððs€opinion€in€thisÏcase.€€However,€I€am€filing€this€separate€opinion€because€IÏcannot€follow€the€courtððs€reasoning.€€I€have€concluded€that€theÏevidence€fully€supports€the€trial€courtððs€conclusion€that€Mr.Ï¢Glanton£€negligently€misrepresented€to€Ms.€Beckley€that€heÏhad€secured€lease€agreements€from€his€fellow€lawyers€thatÏwould€generate€$1,600€in€monthly€revenue.€€Accordingly,€IÍwould€hold€that€Ms.€¢Beckley£€is€entitled€to€damages,€recissionÏof€her€agreement€with€Mr.€¢Glanton£,€and€partition€of€theÏproperty.ÌÌà@ àò òI.ó óÌÌà à¢Luvell£€¢Glanton£,€a€Nashville€lawyer,€decided€to€purchase€aÏdilapidated€house€on€Jefferson€Street€to€renovate€for€use€asÏa€law€office.€€His€uncle€who€was€acting€as€one€of€the€realÏestate€agents€for€the€transaction€suggested€that€he€approachÏShirley€¢Beckley£€about€investing€in€the€project.€€When€Mr.Ï¢Glanton£€discussed€the€project€with€Ms.€Beckley€in€lateÏFebruary€1993,€he€told€her€that€the€renovated€house€wouldÏhave€offices€for€four€lawyers€that€would€each€rent€for€$400Ïper€month.€€He€also€told€her€that€he€intended€to€rent€one€ofÏthe€offices€himself€and€that€he€had€already€secured€theÏagreement€of€three€of€his€associates€to€rent€the€remainingÏoffices.€€Ms.€Beckley€decided€to€invest€in€the€project€relyingÏon€Mr.€¢Glanton£ððs€representations€that€she€would€receive€halfÏof€the€monthly€rental€proceeds€and€that€she€would€benefitÏfrom€the€appreciation€in€the€propertyððs€value.ÌÌà àMr.€¢Glanton£€and€Ms.€Beckley€signed€a€contract€toÏpurchase€the€property€on€March€17,€1993.€€The€closingÏoccurred€on€March€22,€1993.€€Five€days€later,€Mr.€¢Glanton£€andÏMs.€Beckley€signed€an€agreement€containing€the€followingÏfour€material€terms:ÌÓÓà0 àà àà8 àà8 à1.€€€€€€€Both€parties€agree€that€the€premisesÏlocated€at€915€Jefferson€Street,€was€bought€toÏbe€used€as€a€Law€Office.ÌÌà8 àà8 à2.€€€€€€€That€the€building€will€not€be€sold€forÏat€least€7€years€without€the€agreement€ofÏboth€parties.ÌÌà8 àà8 à4.€[sic]€That€both€parties€agree€that€theyÏ¢will£€keep€the€other€party€informed€as€toÏany€work€done€on€the€premises.ÌÌà8 àà8 à4.€€€€€€€€Both€parties€shall€share€equally€inÏthe€ownership€liabilities,€and€the€incomeÏgenerated€from€the€property.ÌÌÌÓ€Óà àMr.€¢Glanton£€and€Ms.€Beckley€began€renovating€theÏproperty€soon€after€the€closing.€€When€the€original€contractorÏleft€after€being€paid€approximately€$10,000,€they€retained€aÏsecond€contractor€to€finish€the€renovations.€€In€February€1994Íthey€obtained€an€$82,500€construction€loan€from€¢NationsBank£Ïto€complete€the€project.€€Mr.€¢Glanton£€finally€moved€into€hisÏlaw€office€between€January€and€March€1994.€€Mr.€¢Glanton£ððsÏassociates€had€never€signed€leases€for€the€other€offices€and,Ïconsequently,€never€moved€into€the€renovated€house.€€Ms.ÏBeckley€stopped€paying€her€share€of€the€mortgage€paymentsÏafter€the€other€three€offices€remained€vacant€forÏapproximately€six€months.€€Mr.€¢Glanton£€placed€a€ð ðfor€rentððÏsign€in€the€front€window,€but€no€one€had€rented€the€vacantÏoffices€by€the€time€of€the€trial.€€ÌÌà àMr.€¢Glanton£€eventually€sued€Ms.€Beckley€in€the€DavidsonÏCounty€General€Session€Court€in€January€1995€seeking€toÏrecover€her€share€of€the€mortgage€payments€and€theÏmaintenance€costs,€as€well€as€ð ðhis€time€associated€with€theÏrenovation€of€the€property.ðð€€Ms.€Beckley€responded€byÏasserting€that€she€was€entitled€to€various€set„offs.€€She€alsoÏasserted€that€Mr.€¢Glanton£€had€failed€to€pay€rent€for€thirteenÏmonths€and€had€failed€to€reimburse€her€for€advertisingÏexpenses.€€The€general€sessions€court€awarded€Mr.€¢Glanton£Ï$1,094.24.ÌÌà àMs.€Beckley€filed€an€ð ðamended€counter„complaintððÏfollowing€her€appeal€to€the€Circuit€Court€for€DavidsonÏCounty.× ƒ3 ××  ×€€The€allegation€of€most€relevance€on€this€appeal€wasÏthat€Mr.€¢Glanton£€had€committed€ð ðfraud€and€deceptionðð€byÏfalsely€representing€to€Ms.€Beckley€that€ÌÓÓà8 àà8 àhe€and€three€associates€then€in€his€lawÏoffice€would€rent€the€four€private€officesÏin€the€premises€and€the€common€areas,Ïsuch€as€reception€room,€conference€room,Ïbaths,€kitchen€area€and€parking€lot€forÏ$400.00€each,€for€a€total€of€$1,600.00,Ïmonthly.€€She€was€assured,€again€falsely,Ïthat€she€would€receive€one„half€of€theÏrental€proceeds€and€this€promise,€if€keptÏby€the€counter„defendant€would€haveÏmade€the€investment€he€persuaded€her€toÏmake€by€such€misrepresentations,€worthÏthe€amount€she€paid.€€That€the€counter„defendant€knew,€or€should€have€known,Ïthat€his€associates€had€not€agreed€as€heÏlead€the€counter„plaintiff€to€believe€theyÏwould€and€in€any€event€he€made€theÏassurances€as€though€they€were€known€byÍhim€to€be€true€when€in€fact€they€wereÏfalse.ÌÌÌÓ€ÓBased€on€these€allegations,€Ms.€Beckley€requested€damages,Ïrescission€of€the€March€27,€1993€agreement,€and€the€partitionÏand€sale€of€the€property.ÌÌà àDuring€the€bench€trial,€Mr.€¢Glanton£€and€Ms.€Beckley€gaveÏconflicting€accounts€of€his€representations€concerning€theÏstatus€of€the€rental€agreements€of€the€other€offices€in€theÏbuilding.€€The€trial€court€accredited€Ms.€Beckleyððs€version€ofÏthe€representations€and€found€that€Ms.€Beckley€had€made€outÏa€claim€for€negligent€misrepresentation.€€The€trial€court€setÏMs.€Beckleyððs€damages€at€$19,200€but€also€determined€thatÏMr.€¢Glanton£€was€entitled€to€an€$8,000€set„off€for€expensesÏincurred€in€refurbishing€the€property.€€The€trial€court€furtherÏreduced€the€award€by€$3,700€because€Ms.€Beckley€did€notÏconfirm€for€herself€that€Mr.€¢Glanton£ððs€associates€had€agreedÏto€lease€the€remaining€office€space€in€the€house.€€Accordingly,Ïthe€trial€court€awarded€Ms.€Beckley€a€$7,500€judgment€againstÏMr.€¢Glanton£.ÌÌà@ àò òII.ó óÌÌà àThe€Tennessee€Supreme€Court€recognized€the€tort€ofÏnegligent€misrepresentation€over€twenty„five€years€agoÏwhen€it€approved€the€tentative€draft€of€what€is€nowÏRestatement€(Second)€of€Torts€ðð€552€(1977).€€òò¢Tartera£€v.Ï¢Palumbo£,óó€224€Tenn.€262,€271„72,€453€¢S.W.2d£€780,€784€(1970).€ÏThe€elements€of€the€tort€are€described€as€follows:ÌÓÓà8 àà8 àà àOne€who,€in€the€course€of€hisÏbusiness,€profession€or€employment,€or€inÏany€other€transaction€in€which€he€has€aÏpecuniary€interest,€supplies€falseÏinformation€for€the€guidance€of€others€inÏtheir€business€transactions,€is€subject€toÏliability€for€pecuniary€loss€caused€toÏthem€by€their€justifiable€reliance€uponÏthe€information,€if€he€fails€to€exerciseÏreasonable€care€or€competence€inÏobtaining€or€communicating€theÏinformation.ÌÌÓ€ÓRestatement€(Second)€of€Torts€ðð€552(1).€€Tennesseeððs€courtsÏhave€consistently€cited€and€applied€this€definition€for€theÏpast€twenty„five€years.€€òòSee,€e.g.,óó€òòJohn€Martin€Co.€v.ÍMorse/Diesel,€Inc.,óó€819€¢S.W.2d£€428,€431€(Tenn.€1991);€òò¢McFarlin£Ïv.€Watts,óó€895€¢S.W.2d£€687,€690€(Tenn.€Ct.€App.€1994).ÌÌà àThe€Restatement€does€not€describe€precisely€the€kindsÏof€false€information€covered€by€this€tort.€€Perceiving€someÏconnection€between€this€tort€and€the€tort€of€fraudulentÏmisrepresentation,¢× ƒ4 ××  ×£€Tennessee€courts€have€joined€severalÏother€courts€in€requiring€that€the€false€information€mustÏconsist€of€statements€of€a€material€past€or€present€fact.€Ïòò¢McElroy£€v.€Boise€Cascade€Corp.,óó€632€¢S.W.2d£€127,€130€(Tenn.€Ct.ÏApp.€1982);€òòMarshall€v.€¢Bostic£,óó€App.€No.€¢02A01£„9406„CV„00141,€1995€WL€115971,€at€*4€(Tenn.€Ct.€App.€Mar.€15,€1995);ÍòòYork€v.€¢Branell£€College€of€Memphis,€Inc.,€óó¢02A01£„9209„CV„00257,€1993€WL€484203,€at€*3€(Tenn.€Ct.€App.€Nov.€23,€1993);ÏòòWhite€v.€¢Eastland£,óó€App.€No.€¢01A01£„9009„CV„00329,€1991€WLÏ149735,€at€*4€(Tenn.€Ct.€App.€Aug.€9,€1991);€òòHenley€v.€¢Labat£„Anderson,€Inc.,€óó¢03A01£„9104„CV„00126,€1991€WL€120403,€atÏ*2€(Tenn.€Ct.€App.€July€9,€1991).¢× ƒ5 ××  ×£€€Accordingly,€the€tort€ofÏnegligent€misrepresentation€cannot€be€based€on€conjecture,Ïstatements€of€opinion,€puffing€and€¢salestalk£,€orÏrepresentations€of€future€events.ÌÌà àThe€court€has€not€explained€the€basis€for€its€conclusionÏthat€the€trial€court€erroneously€concluded€that€Mr.€¢Glanton£Ïð ðcommitted€an€actionable€negligent€misrepresentation€of€aÏpresent€fact.ðð€€I€can€only€assume€that€it€has€determined€thatÏthe€representations€Mr.€¢Glanton£€made€to€Ms.€Beckley€toÏinduce€her€to€invest€in€the€project€involved€conjecture,Ïstatements€of€opinion,€and€representations€concerning€futureÏevents.€€Specifically,€the€court€must€have€concluded€that€Mr.Í¢Glanton£ððs€statements€concerning€the€leasing€of€the€otherÏoffices€in€the€house€and€the€expectation€of€future€income€didÏnot€relate€to€past€or€present€facts.ÌÌà àThe€key€evidence€in€this€case€is€Ms.€Beckleyððs€testimonyÏsince€the€trial€court€chose€to€accredit€her€version€of€Mr.Ï¢Glanton£ððs€representations.€€While€grammarians€could€debateÏthe€significance€of€Ms.€Beckleyððs€choice€of€tenses,€my€readingÏof€her€entire€examination€and€cross„examination€leaves€meÏwith€the€firm€conviction€that€Mr.€¢Glanton£ððs€representations€toÏher€involved€both€past€and€present€facts.€€In€essence,€sheÏtestified€that€Mr.€¢Glanton£€told€her€that€he€expected€that€theirÏmonthly€rental€income€after€renovating€the€house€would€beÏ$1,600€because€he€and€three€of€his€associates€had€agreed€toÏlease€the€space€for€$400€per€month€each.€€While€theÏstatements€concerning€the€anticipated€rental€incomeÏinvolved€future€events,€they€were€based€on€the€present€factÏthat€Mr.€¢Glanton£€and€his€three€associates€had€already€agreedÏto€lease€offices€in€the€building€once€it€was€renovated.€€TheÏrepresentations€concerning€these€existing€agreementsÍinvolve€a€present€or€past€fact€and,€therefore,€support€a€claimÏfor€negligent€misrepresentation.€ÌÌà@ àò òIII.€ó óÌÌà àMy€conclusion€that€Mr.€¢Glanton£€made€negligentÏmisrepresentations€concerning€the€existence€of€leases€forÏthe€offices€in€the€new€building€entitles€Ms.€Beckley€toÏdamages€and€recission€of€the€March€27,€1993€agreement.€€IÏfind€no€basis€to€disagree€with€the€trial€courtððs€calculation€ofÏMs.€Beckleyððs€damages€based€on€her€share€of€the€rentalÏincome€that€she€would€have€received€during€the€two€yearsÏsince€the€completion€of€the€renovation€of€the€house.€ÏLikewise,€I€find€no€basis€to€disagree€with€the€trial€courtððsÏdecision€to€reduce€these€damages€to€$7,500.× ƒ6 ××  ×€€The€recissionÏof€the€March€27,€1993€agreement€clears€the€way€to€an€actionÏfor€partition.€€Like€my€colleagues,€I€have€concluded€that€Tenn.ÍCode€Ann.€ðð€29„27„212€permits€partition€even€in€the€absenceÏof€¢NationsBank£.€€Accordingly,€I€concur€that€the€case€should€beÏremanded€to€enable€the€partition€to€proceed.ÌÌÓÓà àà àà àà àà àà à_____________________________Ìà àà àà àà àà àà àWILLIAM€C.€KOCH,€JR.,€JUDGEÌÔ€,„Ô