˙WPCH …# VU:a %› 0(Ąb Éw@Õ4 ) 8 0J8 0T‚ 0^Ö 0h4 0rœ 0| 0†Š 0 1u  U, 0dA U,Ĩ U*Ņ B)û DC$ AMg´v~ B@vĶ] D30 0@c AOŖÆō 0D¸ D/ü B+˜HP LaserJet 4Si/4SiMX PS 600dpiPSCRIPTĀĖĀääĀĀĖ0 ,†r‰AZ‹"Arial RegularX($ĄĄ- ų - /0D12D34D567Ķ€AGav 3|xA2 ˙˙0Indent1Ô2ÔÔ3  Ô2" ˙˙0Indent2ā0 āÔ2ÔÔ3  Ô2, ˙˙0Indent3ā0 āā0 āÔ2ÔÔ3  Ô26 ˙˙0Indent4ā0 āā0 āā0 āÔ2ÔÔ3  Ô2@ ˙˙0Indent5ā0 āā0 āā0 āā0 āÔ2ÔÔ3  Ô2J ˙˙0Indent6ā0 āā0 āā0 āā0 āā0 āÔ2ÔÔ3  Ô2T ˙˙0Indent7ā0 āā0 āā0 āā0 āā0 āā0 āÔ2ÔÔ3  Ô2^ ˙˙0Indent8ā0 āā0 āā0 āā0 āā0 āā0 āā0 āÔ2ÔÔ3  Ô  ˙˙?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)< Œ 9p`(ModernP ˙˙8Mac DefaultMac DefaultĶ ` °šXĶ< Œ 9p`(Monaco< Œ 9p`(Arial% Line 7 d 7Border 1dd€-!Cū˙ << G˙˙ Ũ ƒ!ŨŅ  ŅŅ#€d#ŅÔ€ÔÔ€ÔŨ  ŨÔ€ÔĶ  Ķō ōÔ YYY ÔFILEDÔ€XÔĖĖMarch€22,€1996ĖĖCecil€W.€CrowsonĖAppellate€Court€ClerkÔ  Ôķ ķPtPtHHÚ(˙á˙âųFG(üHHÚ(d'@ dStyl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃĐ ĐĐHHĐĐ  ĐĐ2ĐĐ˙˙¸æ$˙ĐĐHHĐĐĐĐĐĐĐĐ  ĐĐ ĐĐ ĐŅŅŅGenevaŅŅ ŅŅ € ŅŅ<Px–ČŅŌŌŌ443!#4ŌŌ$ *$ŌŌ$*$ŌŌ ˙KK ŌŌ  Geneva ŌŌ  Geneva ŌĶ.,ĶĶĶĶ6ĶĶ ĶßßßßßßßßßßßßßßßßßßŅMonacoŅŅ ŅŌ  BA: T Monaco ŌŌ  BA: T Monaco Ō%%%%'˙˙dxd("˙˙$ŖŖŌ  ŌŌ  Ō€-‚ƒCū˙<< C˙˙ƒLevel 1Level 2Level 3Level 4Level 5($$””ō ōÚ  Ú1Ú  Úķ ķ„„'÷˙ dxdü˙P PdŨ ƒ!ŨÔ . ÔÔ€ÔĶ&€X„d&ĶŅ#€Xd#ŅÔ€ÔŨ  ŨŌ € ŌŌ „ ŌŅ  ŅŅ\R AØ'\ŅŅ€ŅŅ7€—XXdædČ7ŅŅ  ŅŅ  ŅHERMITAGE€HOUSE€SQUARE,€L.P.,ā ā)Ėā āā āā āā āā āā ā)Ėā āPlaintiff/Appellant,ā āā āā ā)Ėā āā āā āā āā āā ā)ā āAppeal€No.Ėā āā āā āā āā āā ā)ā ā01„A„01„9507„CV„00296ĖVS.ā āā āā āā āā āā ā)Ėā āā āā āā āā āā ā)ā āDavidson€CircuitĖā āā āā āā āā āā ā)ā āNo.€94C„208€and€94C„266ĖWALTER€D.€ENGLAND,ā āā āā ā)ĖŲ€€ŲßL€"#!;+'h|‘K` į `€€Lßā āā āā āā āā āā ā)Ėā āDefendant/Appellee.ā āā ā)ĖĖĖĖā@ āCOURT€OF€APPEALS€OF€TENNESSEEĖā@ āMIDDLE€SECTION€AT€NASHVILLEĖĖĖĖAPPEALED€FROM€THE€CIRCUIT€COURT€OF€DAVIDSON€COUNTYĖAT€NASHVILLE,€TENNESSEEĖĖTHE€HONORABLE€CAROL€L.€McCOY,€SPECIAL€JUDGEĖĖĖĖĖTHOMAS€F.€BLOOMĖ500€Church€StreetĖFifth€FloorĖNashville,€Tennessee€37219Ėā āAttorney€for€Plaintiff/AppellantĖĖTHOMAS€E.€STEWARTĖ333€Gallatin€Road,€SouthĖMadison,€Tennessee€37115Ėā āAttorney€for€Defendant/AppelleeĖĖĖĖĖĖĖā@ āAFFIRMED€AND€REMANDEDĖĖĖĖĖĖĖā āā āā āā āā āā āā āBEN€H.€CANTRELL,€JUDGEĖĖCONCUR:ĖTODD,€P.J.,€M.S.ĖKOCH,€J.ĖĖĖĖĖĶ  ĶĶĶā@ āō ōōōÔ€„ÔO€P€I€N€I€O€Nķ ķķķÔ€XÔĖĖā āā āThe€payee€on€a€promissory€note€sued€the€maker€in€GeneralĪSessions€Court€for€payment€of€the€last€$1,500€due€on€it.€€The€court€enteredĪjudgment€for€the€payee.€€The€maker€appealed,€and€filed€a€complaint€in€CircuitĪCourt€which€was€consolidated€with€his€appeal.€€The€complaint€alleged€that€theĪobligation€on€the€note€could€not€be€enforced,€because€it€represented€payment€onĪan€illegal€transaction.€€The€makerđđs€argument€was€that€the€note€represented€aĪcommission€on€a€sale€of€real€estate,€in€favor€of€an€individual€who€was€not€a€realĪestate€broker€or€agent,€in€violation€of€Tenn.€Code€Ann.€đđ€62„13„101€et€seq.€ĖĖā āā āThe€payee€admitted€that€he€was€not€a€broker€or€agent,€but€deniedĪthat€the€note€represented€a€brokerđđs€commission.€€He€contended€rather€that€theÍpayment€was€in€consideration€of€his€relinquishing€his€interest€in€the€enterpriseĪthat€had€purchased€the€property.€€The€trial€court€found€that€the€note€did€notĪrepresent€an€illegal€commission.€€We€affirm.€ĖĖā@ āō ōI.ķ ķĖĖā āā āWalter€England,€the€payee€on€the€note€in€question,€is€a€dealer€inĪautomobiles€and€recreational€vehicles,€whose€place€of€business€is€locatedĪdirectly€across€Lebanon€Road€from€the€Hermitage€Motel.€€Charles€Turner€was€theĪowner€of€the€Hermitage€Motel€and€of€adjoining€property€containing€a€restaurantĪand€antique€shop.€€He€and€Mr.€England€were€acquaintances€of€long€standing,Īand€when€he€was€checking€on€the€motel,€Mr.€Turner€would€frequently€cross€theĪroad€to€chat€with€Mr.€England.€ĖĖā āā āMr.€Turner€was€near€retirement,€and€he€found€that€the€rewards€ofĪoperating€the€motel€were€outweighed€by€the€headaches,€and€by€theĪinconvenience€of€managing€its€operations€from€his€home€in€Old€Hickory.€€He€toldĪMr.€England€that€he€had€decided€to€sell€the€motel€property,€and€Mr.€EnglandĪexpressed€an€interest€in€acquiring€it.€€Though€the€property€had€been€appraised€forĪ$3€million,€Mr.€Turner€said€he€was€willing€to€sell€it€to€Mr.€England€for€$1.6€million.€ĪMr.€England€told€Mr.€Turner€that€he€could€not€afford€to€purchase€the€$1.6€millionĪproperty€by€himself,€and€would€seek€a€partnership€with€other€investors.€€Mr.ÍTurner€gave€Mr.€England€a€thirty€day€option€to€purchase€the€property€for€$1.6Īmillion.€€The€option€was€extended€orally€and€when€another€investor€appeared,€theĪparties€negotiated€in€good€faith€until€the€deal€closed.€€There€is€no€suggestion€inĪthe€record€that€Mr.€Turner€employed€Mr.€England€as€an€agent€or€broker,€or€thatĪthey€ever€negotiated€a€fee€of€any€kind.€ĖĖā āā āMr.€England€contacted€the€appellant,€James€C.€Patterson,€anĪattorney€licensed€in€three€states,€and€the€general€partner€in€an€enterprise€calledĪBeach€Capital€Ventures,€Inc.€€Mr.€England€supplied€Mr.€Patterson€with€informationĪabout€the€motel€property,€and€the€appellant€decided€to€pursue€the€investmentĪopportunity€in€tandem€with€Walter€England.€€Mr.€England€played€an€active€role€inĪnegotiating€the€terms€of€purchase,€which€were€memorialized€in€a€letter€of€intentĪdrafted€by€Mr.€Patterson.€ĖĖā āā āThe€letter€of€intent€contemplated€a€lease€purchase€by€an€as„yet„to„be€formed€limited€partnership€called€Hermitage€House€Square€LimitedĪPartnership.€€Mr.€Patterson€signed€on€behalf€of€the€limited€partnership.€€Mr.€TurnerĪand€his€wife,€agreed€to€the€terms€and€affixed€their€signatures€to€the€letter€of€intentĪon€September€27,€1991.€€Ėā āā āAt€about€the€same€time,€Mr.€Patterson€sent€a€letter€to€Mr.€England,Īconfirming€an€agreement€reached€during€an€earlier€telephone€conversation.€€TheĪletter€outlined€€the€terms€of€Mr.€Englandđđs€participation€in€the€proposed€Íenterprise,€€€đ đ.€.€.€should€the€acquisition€of€Hermitage€House€Square€proceed.đđ€€Mr.ĪEngland€was€to€acquire€a€15%€equity€share€in€the€Hermitage€House€Partnership.€ĪHe€was€also€to€serve€as€property€manager€of€the€motel€at€a€base€salary€ofĪ$35,000.€€Mr.€England€could€increase€his€equity€share€to€18%,€and€receive€aĪbonus€that€would€be€added€to€his€salary€according€to€a€formula€based€on€the€netĪprofit€earned€by€the€motel.Ė€€Ėā@ āō ōII.ķ ķĖĖā  €€ā āOn€October€11,€1991,€the€Tennessee€Secretary€of€State€issued€aĪcertificate€of€limited€partnership€for€Hermitage€House€Square€L.P.€€The€generalĪpartner€named€in€the€certificate€was€Beach€Capital€Ventures,€and€JamesĪPatterson€signed€in€his€capacity€as€Chairman€of€the€General€Partner.€€The€limitedĪpartner€or€partners€were€not€identified€at€the€time.€€Though€Hermitage€HouseĪSquare€L.P.€is€the€nominal€party€in€this€case,€we€will€continue€to€refer€to€Mr.ĪPatterson€as€the€appellant,€for€he€was€obviously€the€driving€force€behind€both€theĪlimited€partnership€and€the€current€appeal.€€€ĖĖā āā āMr.€England€subsequently€decided€that€he€did€not€want€to€be€a€full„time€motel€manager.€€On€February€15,€1992,€Charles€Turner€conveyed€theĪHermitage€Motel€to€Hermitage€House€Square€L.P.€€On€the€same€day,€Mr.ĪPatterson€executed€a€promissory€note€to€Mr.€England€for€$20,000€in€the€name€ofÍthe€limited€partnership€đ đfor€value€receivedđđ€and€also€gave€Mr.€England€a€check€forĪ$5,000.€€The€note€was€to€be€paid€in€four€successive€monthly€$5,000€installmentsĪbeginning€on€March€1,€1992.€€ĖĖā āā āThough€he€did€not€follow€the€schedule€set€out€in€the€original€note,ĪMr.€Patterson€made€more„or„less€regular€payments€to€Mr.€England.€€The€terms€ofĪpayment€were€altered€by€agreement€of€the€parties€on€June€8,€1992,€and€$500Īwas€added€to€the€principal€amount.€€By€October€2,€1992,€Mr.€England€had€beenĪpaid€a€total€of€$19,000€on€the€note.ĖĖā āā āMr.€Patterson€and€Mr.€England€subsequently€had€a€falling€out,€andĪMr.€Patterson€stopped€making€payments.€€Mr.€England€then€sued€Mr.€Patterson€onĪthe€note€in€the€Davidson€County€General€Sessions€Court,€and€received€aĪjudgment€for€$1,500€plus€interest,€costs€and€reasonable€attorney€fees.€€Mr.ĪPatterson€appealed€to€the€Circuit€Court€and€filed€a€complaint,€which€alleged€thatĪhe€was€not€liable€for€the€debt,€because€the€consideration€on€the€note€was€anĪillegal€commission€on€the€sale€of€real€estate.€ĖĖā@ āō ōIII.ķ ķĖĖā āā āThe€Tennessee€Real€Estate€Broker€License€Act€of€1973,€Tenn.€CodeĪAnn.€đđ€62„13„101€et€seq.€prohibits€any€individual€from€acting€as€a€real€estateÍbroker€without€first€obtaining€a€license.€€An€unlicensed€person€who€performs€theĪservices€reserved€by€the€Act€for€licensed€brokers€may€not€sue€to€recoverĪcompensation€for€any€prohibited€act,€and€may€be€subject€to€penalties€that€includeĪreturn€of€treble€the€amount€collected€as€compensation€for€any€such€services,Īpayment€of€a€fine,€and€even€imprisonment.€€Tenn.€Code€Ann.€đđ€62„13„110.ĖĖā āā ā€The€definition€of€a€broker€found€in€Tenn.€Code€Ann.€đđĪ62„13„102(2)(A)€describes€the€real€estate€transactions€whose€performance€isĪrestricted€to€licensed€professionals:ĖĖŌ 0 ŌŌ  ŌĶĶ(2)(A)€"Broker"€means€any€person€who€for€a€fee,Īcommission,€finders€fee€or€any€other€valuableĪconsideration,€or€with€the€intent€or€expectation€of€receivingĪthe€same€from€another,€solicits,€negotiates€or€attempts€toĪsolicit€or€negotiate€the€listing,€sale,€purchase,€exchange,Īlease€or€option€to€buy,€sell,€rent€or€exchange€for€any€realĪestate€or€of€the€improvements€thereon€.€.€.,€or€whoĪadvertises€or€holds€himself€out€as€engaged€in€any€of€theĪforegoing;€.€.€.ĖĖĖĖŌ € ŌŌ „ ŌĶĶā āā āThe€statute€encompasses€a€great€variety€of€transactions,€but€theĪrestrictions€on€those€transactions€only€apply€where€an€individual€is€acting€forĪanother;€where€he€is€acting€on€his€own€behalf,€there€is€no€requirement€that€aĪperson€acquire€a€real€estate€license€before€negotiating€a€conveyance€of€land.€ōōÍLloyd€v.€Wiseman,ķķ€51€Tenn.€App.€401,€368€S.W.2d€303€(1963);ōō€Smith€v.€Guyķķ,€24ĪTenn.€App.€352,€144€S.W.2d€702€(1940).Ė€€€€€€Ėā āā āIn€both€of€the€above„mentioned€cases,€the€plaintiffs€negotiated€forĪthe€purchase€of€real€property€by€enterprises€of€which€they€were€a€part.€€When€theirĪpartners€refused€to€pay€them€money€to€which€the€plaintiffs€felt€their€participation€inĪthe€respective€enterprises€entitled€them,€they€sued.€€The€defendants€argued€thatĪthe€plaintiffs€could€not€recover€because€the€services€they€performed€were€thoseĪnormally€associated€with€real€estate€brokerage,€and€they€were€not€licensed€asĪbrokers.€However,€the€court€found€that€the€licensing€statute€did€not€not€preventĪthem€from€recovering,€because€they€were€dealing€for€themselves€as€well€as€forĪothers.€€Although€these€cases€involved€the€interpretation€of€an€earlier€version€ofĪthe€current€statute,€they€are€still€good€law.ĖĖā@ āō ōIV.ķ ķĖĖā āā āIn€the€present€case,€Mr.€England€contended€that€in€negotiating€theĪpurchase€of€the€Hermitage€Motel€he€was€acting€to€further€his€own€interests€as€wellĪas€Mr.€Pattersonđđs.€€In€substance€the€transaction€was€a€simple€one:€Mr.€EnglandĪobtained€an€option€on€the€motel€and€found€a€đ đmoney€partnerđđ€to€help€him€makeĪthe€acquisition.€€In€return€for€his€option€Mr.€England€was€to€receive€an€interest€inĪthe€partnership€formed€to€acquire€title€to€the€property.€€Although€the€trial€judgeÍruled€inadmissible€the€details€of€the€option€because€it€had€been€lost,€the€record€isĪclear€that€the€option€did€exist€and€that€Mr.€Turner€went€to€some€pains€to€protect€Mr.ĪEnglandđđs€interests€when€Mr.€Patterson€began€conducting€the€negotiations.€€TheĪtestimony€of€Mr.€Turner,€and€Mr.€Pattersonđđs€letter€outlining€the€appelleeđđs€equityĪshare€in€the€project€and€his€proposed€role€in€managing€the€motel€support€Mr.ĪEnglandđđs€contention.€€The€lack€of€any€contract€or€other€document€in€the€recordĪcontaining€a€reference€to€a€brokerage€arrangement€or€to€a€fee€for€services,Īstrengthens€his€argument.ĖĖā āā āThe€appellant€makes€much€of€the€courtđđs€finding€that€Mr.€EnglandĪdid€not€become€a€partner€at€the€time€Mr.€Patterson€acquired€a€certificate€forĪHermitage€House€Square€L.P.,€or€at€any€time€thereafter.€€We€note€that€Mr.ĪPatterson€testified€on€cross„examination€that€the€sole€limited€partner€withdrewĪimmediately€after€formation,€to€be€replaced€by€other€limited€partners,€and€that€theĪcourt€also€found€that€Mr.€England€would€have€received€an€equity€share€at€the€timeĪthe€sale€closed,€if€he€had€not€surrendered€his€right€prior€to€that€time.ĖĖā āā āMr.€Patterson€argues€that€his€agreement€to€give€Mr.€England€anĪequity€interest€in€the€enterprise€as€compensation€for€negotiating€the€transactionĪwould€still€constitute€an€illegal€commission,€just€as€a€cash€payment€would.€€HeĪhas€directed€our€attention€to€cases€from€other€jurisdictions€that€have€real€estateĪbrokerage€licensing€laws€similar€to€our€own,€to€demonstrate€that€the€valuableÍconsideration€that€constitutes€a€brokerđđs€fee€may€take€almost€any€form,€includingĪan€equity€interest€in€the€acquiring€enterprise.€€Seeā āōōWilkins€v.€Heebnerķķ,€480ĪA.2d€1141€(Pa.€Super.€1984).€ĖĖā āā āBut€the€appellantđđs€argument€does€not€resolve€the€critical€questionĪas€to€whether€Mr.€England€was€acting€on€his€own€behalf€when€he€acquired€theĪinchoate€interest€in€question,€or€whether€he€was€merely€acting€as€an€agent€for€Mr.ĪPatterson€or€Mr.€Turner.€€This€is€a€question€of€fact,€which€the€trial€court€foundĪadversely€to€the€appellant,€and€which€is€presumed€on€appeal€to€be€correct,€unlessĪthe€preponderance€of€the€evidence€is€otherwise.€€See€Rule€13(d)€Tenn.€R.€App.€P.€€ĖĖā@ āō ōV.ķ ķĖĖā āā āThe€present€case€began€as€a€suit€on€a€note€in€General€SessionsĪCourt.€It€is€not€clear€from€the€record€if€the€defendant€advanced€an€affirmativeĪdefense€at€this€early€stage€in€the€proceedings,€but€if€he€had,€the€burden€of€proofĪwould€have€been€on€him€to€prove€the€illegality€of€the€underlying€contract,€as€theĪinstrument€bore€on€its€face€an€unconditional€promise€to€pay.€€ĖĖā āā āThe€case€continued€with€Mr.€Patterson€filing€a€complaint€in€CircuitĪCourt.€The€burden€remained€on€him€to€establish€by€a€preponderance€of€theĪevidence€that€the€€relationship€between€himself€and€Mr.€England€was€that€ofÍprincipal€and€broker.€€Mr.€Patterson€testified€unequivocally€that€this€was€the€sumĪand€substance€of€the€business€relationship€between€the€parties,€but€as€anĪattorney€he€was€well„versed€in€the€elements€of€the€claim€he€was€trying€toĪestablish,€and€the€court€found€his€testimony€not€to€be€credible.€€€ĖĖā āā āThe€court€found€more€credible€the€testimony€of€Mr.€Turner€and€Mr.ĪEngland,€to€the€effect€that€Mr.€England€proposed€buying€the€property€himself,€thatĪthe€two€of€them€agreed€on€a€price,€and€that€Mr.€England€sought€other€investors€toĪmake€acquisition€of€the€property€possible.€€The€court€concluded€from€this€that€Mr.ĪEngland€participated€in€the€negotiations€over€the€property€to€promote€his€ownĪinterest€as€an€investor€rather€than€to€promote€Mr.€Pattersonđđs€interest€by€playingĪthe€role€of€broker.€We€do€not€find€that€the€evidence€preponderated€against€the€trialĪcourtđđs€finding.€ĖĖĖā@ āō ōVI.ķ ķĖĖā āā āWe€affirm€the€trial€court.€€Remand€this€cause€to€the€Circuit€Court€ofĪDavidson€County€for€further€proceedings€consistent€with€this€opinion.€€Tax€theĪcosts€on€appeal€to€the€appellant.ĖĖĖĶĶā āā āā āā āā āā āā ā_____________________________Ėā āā āā āā āā āā āā āBEN€H.€CANTRELL,€JUDGEĖĖĖĖĖĖCONCUR:ĖĖĖĖĖ_______________________________ĖHENRY€F.€TODD,€PRESIDING€JUDGEĖMIDDLE€SECTIONĖĖĖĖĖ_______________________________ĖWILLIAM€C.€KOCH,€JR.,€JUDGEĖĖĮŅ  Ņ