ÿWPCê$ …# VUNa %¯ 0 (µw@Ý4 1 @ 0xH 0DÀ 0J 0TN 0^¢ 0h 0rh 0|Ú 0†V 0Ü 1ul 0dá U >EB)ƒDC¬ AMïU*<fnuçãNÊã Bû D3iKv~´ 0@2vÓr AOE#Æ”# 0DZ$ D/ž$ BÍ$˜HP LaserJet 4Si/4SiMX PS 600dpiPSCRIPTÈÚØÚÚØÈÚ0nLHÎ(ÖÃ9 Z ‹6Times New Roman RegularX($¡¡ ?E@DAUB!eCÕQeRY eZÓ€dDÒ 3|xf(((2¬5$¤¤Ý ƒ!ÝÝ  ÝÓ  Óà  àòòÚ  Ú0Ú  Úóó(#Ã$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 d7Border 1dd€-Cþÿ << Gÿÿ< Œ 9p`(Arial Ý ƒ!ÝÑ  ÑÑ#€d#ÑÔ€ÔÝ  ÝÔ€#ÔÔ€#ÔÓ  Óò òÔ YYY ÔFILEDÔ€#XÔÌÌAugust€13,€1997ÌÌCecil€W.€CrowsonÌAppellate€Court€ClerkÔ  Ôó ó dÝ ƒ!ÝÑ#€d#ÑÔ€ÔÝ  ÝÝ ƒ $ÝÓ  Óà àòòÚ  ÚÚ  ÚóóÝ  Ý€€The€general€provision€regarding€commissions€and€advances€provides€in€part:Ìà8 àà à7.à à(a)à àUpon€the€condition€that€[TOSI]€shall€perform€all€of€the€termsÏand€conditions€of€this€Agreement€and€that€[TOSI]€shall€not€be€in€default€orÏotherwise€in€breach€hereof,€[OEI]€agrees€to€pay€[TOSI],€and€[TOSI]€agrees€toÏaccept,€in€full€consideration€of€[TOSIððs]€performance€hereof,€a€commission€equal€toÏ(i)€seven€percent€(7.0%)€of€Net€Billings€up€to€$3,400,000.00;€(ii)€eight€and€fiveÏtenths€percent€(8.5%)€of€Net€Billings€between€$3,400,001.00€and€$4,100,000.00;Ïand€(iii)€nine€percent€(9%)€of€Net€Billings€in€excess€of€$4,100,001.00.€€As€anÏadvance€against€such€commission,€[TOSI]€shall€receive€a€cash€draw€from€[OEI]€inÏan€amount€equal€to€$5,000.00€per€week€until€such€cash€advances€reach€theÏaggregate€amount€of€$260,000.00.€€After€the€aggregate€amount€of€$260,000.00€isÏreached,€cash€advances€shall€cease€and€[OEI]€shall€pay€the€amount€of€anyÏcommissions€that€are€due€to€[TOSI]€upon€[OEIððs]€receipt€of€payment€from€theÏagency€or€advertiser€for€the€time€sale(s)€to€which€such€commissions€relate.Ìà8 àà àà à(b)à àPayments€of€commissions€to€[TOSI]€shall€be€made€monthly.Ì ÝÝ ƒ!ÝÑ#€d#ÑÔ€ÔÝ  ÝÝ ƒ $ÝÓ  Óà àòòÚ  ÚÚ  ÚóóÝ  Ý€€Section€11(a)€provides:€€ð ðUpon€the€termination€of€this€Agreement€pursuant€to€theÏprovisions€hereof:€€(a)€Commissions,€adjusted€in€accordance€with€Section€7,€shall€be€payable€toÏ[TOSI]€with€respect€to€advertising€sold€by€[TOSI]€prior€to€the€termination€date€and€actually€airedÏbefore€the€termination€date€.€.€.€.ððÌ DÝ ƒ!ÝÑ#€d#ÑÔ€ÔÝ  ÝÝ ƒ $ÝÓ  Óà àòòÚ  ÚÚ  ÚóóÝ  Ý€€Hereinafter,€commissions€on€advertising€sold€prior€to€the€termination€date€and€aired€afterÏthe€termination€date€shall€be€referred€to€as€post„termination€commissions.Ì ÙÝ ƒ!ÝÑ#€d#ÑÔ€ÔÝ  ÝÝ ƒ $ÝÓ  Óà àòòÚ  ÚÚ  ÚóóÝ  Ý€€Counsel€for€TOSI€withdrew€this€issue€during€oral€argument.Ì d))))'ÿÿdxd _Ý ƒ!ÝÑ#€d#ÑÔ€ÔÝ  ÝÝ ƒ $ÝÓ  Óà àòòÚ  ÚÚ  ÚóóÝ  Ý€€TOSI€cited€a€paragraph€in€the€complaint,€which€OEI€denied€in€its€answer,€to€support€€itsÏclaim€that€it€lost€$400,000.00€in€commissions.€€OEI€did€not€specifically€deny€this€assertion€onÏappeal.ÌPtPtHHÚ(ÿáÿâùFG(üHHÚ(d'h("ÿÿ$££Ò  ÒÒ  ÒStyl{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€-‚ƒCþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5($$””ò òÚ  Ú1Ú  Úó ó„„'÷ÿ dxdüÿP PdÝ ƒ!ÝÔ . ÔÔ€ÔÝ  Ý›Ñ\R AØ'\ÑÑ\R AØ'\ÑÔ€¼ÔÑ7€bÊXXdêdÈ7ÑÑ  ÑœÞ ÞÌThe›€Outdoor€Source,€Inc.,à àà à)Ìà àPlaintiff/Appellant,à àà à)à àAppeal€No.Ìà àà àà àà àà àà à)à à01„A„01„9702„€CH„00053Ìv.à àà àà àà àà àà à)̜ـ€ÙßR€ $A1-j|›ý` ç `€€@ÿRß›à àà àà àà àà àà à)à àChancery€Court€No.ÌOutdoor€Entertainment,€Inc.,à àà à)à à95„2732„IÌà àDefendant/Appellee.à àà à)€€ÌÌÌÌÌÌà@ àCOURT€OF€APPEALS€OF€TENNESSEEÌÌà@ àMIDDLE€SECTION€AT€NASHVILLEÌÌÌà@ àAPPEAL€FROM€THE€CHANCERY€COURT€OF€DAVIDSON€COUNTYÌÌà@ àAT€NASHVILLE,€TENNESSEEÌÌÌà@ àTHE€HONORABLE€IRVIN€H.€KILCREASE,€CHANCELLORÌÌÌÌÌÌÌÌGREGORY€D.€SMITHÌWillis€&€KnightÌ215€Second€Avenue€NorthÌNashville,€Tennessee€37201Ìà àATTORNEY€FOR€PLAINTIFF/APPELLANTÌÌL.€WEBB€CAMPBELL€IIÌSherrard€&€Roe,€PLCÌ424€Church€Street,€Suite€2000ÌNashville,€Tennessee€37219Ìà àATTORNEY€FOR€DEFENDANT/APPELLEEÌÌ€ÌÌà@ àREVERSED€IN€PART€AND€REMANDEDÌÌÌÌÌà àà àà àà àà àà àà àà àSAMUEL€L.€LEWIS,€JUDGEÇÓ€ÓÓ  Óà@ àÔ€„ÔòòOÔ€¼ÔPINIONóóÌà àThis€is€an€appeal€by€plaintiff/appellant,€The€Outdoor€Source,€Inc.Ï(ð ðTOSIðð),€from€the€chancery€courtððs€decision€granting€the€motion€for€summaryÏjudgment€filed€by€defendant/appellee,€Outdoor€Entertainment,€Inc.€(ð ðOEIðð),€andÏoverruling€TOSIððs€motion€for€summary€judgment.€€The€facts€out€of€which€thisÏmatter€arose€are€as€follows.ÌÌà àTOSI€and€OEI€entered€into€a€Sales€Representation€Agreement€on€1€JulyÏ1994.€€OEI€drafted€the€Agreement€under€which€TOSI€agreed€to€sell€advertisingÏon€a€commission€basis€for€three€television€programs€produced€by€OEI.€€InÏaddition,€TOSI€received€an€advance€of€$5,000.00€against€its€commissions€eachÏweek.× ƒ% ××  ×€€The€Agreement€was€to€end€on€31€December€1995€unless€one€of€theÏparties€terminated€it€earlier.€€Section€10(a)€of€the€Agreement€allowed€either€partyÏto€terminate€the€Agreement€without€cause€upon€thirty€days€written€notice.€€InÏaddition,€sections€6(b)€and€10(b)€allowed€ð ðfor€causeðð€terminations€based€onÏfailure€to€perform,€breach,€or€default.€€Finally,€section€11(a)€required€OEI€to€payÏTOSI€for€advertising€ð ðsold€by€[TOSI]€prior€to€the€termination€date€and€actuallyÍaired€before€the€termination€dateðð€upon€termination€of€the€Agreement.× ƒ& ××  ×ÌÌà àIn€early€1995,€OEI€decided€to€terminate€the€Agreement€because€it€wantedÏto€handle€its€sales€in„house€rather€than€through€a€contractor.€€OEI€sent€a€letter€toÏTOSI€dated€10€May€1995€terminating€the€Agreement€on€9€June€1995.€€TOSIÏcontinued€to€sell€advertising€up€to€the€termination€date.€€After€the€AgreementÏterminated,€OEI€refused€to€pay€any€commissions€to€TOSI€for€advertising€soldÏprior€to€the€termination€date€and€aired€after€the€termination€date.× ƒ' ××  ×€€In€addition,ÏOEI€claimed€it€paid€TOSI€$43,020.00€more€in€advances€than€it€owed€TOSI€inÏcommissions€for€advertising€sold€and€aired€prior€to€the€termination€date.ÌÌà àTOSI€filed€a€complaint€on€1€September€1995.€€TOSI€alleged€OEI€breachedÏthe€partiesðð€Agreement€by€failing€to€pay€all€post„termination€commissions€andÏacted€with€bad„faith€in€the€negotiations€to€extend€the€Agreement.€€OEI€answeredÏand€filed€a€counterclaim€for€any€excess€advances.€€Each€party€filed€a€motion€forÏsummary€judgment€after€conducting€discovery.€€The€court€entered€an€order€on€4ÏSeptember€1996.€€The€court€granted€OEIððs€motion,€overruled€TOSIððs€motion,€andÏreserved€the€issue€of€damages,€i.e.€the€amount€of€the€excess€advances.€€The€courtÏawarded€OEI€discretionary€costs€of€$1,401.55€on€15€October€1996.€€Finally,€theÏcourt€entered€its€final€judgment€on€5€December€1996.€€The€judgement€evidencedÏan€agreed€order€entered€into€by€the€parties€setting€the€amount€of€the€excessÏadvances€at€$43,020.00€and€reserving€TOSIððs€right€to€appeal€the€issue€of€liability.€ÍThereafter,€TOSI€filed€its€notice€of€appeal€and€presented€the€following€issues:ÌÓÓà8 à1.à àWhether€the€Trial€Court€erred€in€finding€that€the€Plaintiff€wasÏnot€entitled€to€commissions€for€advertising€sold€prior€to€termination,Ïwhere€the€Plaintiffððs€contract€with€OEI€was€terminated€without€causeÏand€there€was€no€unequivocal€provision€to€the€contrary.Ìà8 à2.à àWhether€the€Trial€Court€misapplied€ordinary€rules€of€contractÏconstruction€in€resolving€disputes€over€the€Contract€in€favor€of€OEI.Ìà8 à3.à àWhether€the€Trial€Court€erred€in€failing€to€require€OEI€toÏnegotiate€a€contract€extension€in€good€faith,€where€the€contractÏexpressly€required€that€it€do€so.× ƒ( ××  ×ÌÓ€ÓÌÓ€ÓÌà@ àò òStandard€of€Reviewó óÌÌà àWhen€reviewing€a€trial€courtððs€decision€on€a€motion€for€summaryÏjudgment,€this€court€uses€the€same€standard€as€that€used€in€the€trial€court.Ïòòò òClifton€v.€Bassóóó ó,€908€S.W.2d€205,€208€(Tenn.€App.€1995).€€Thus,€this€court€willÏaffirm€the€granting€of€a€motion€for€summary€judgment€if€there€are€no€genuineÏissues€of€material€fact€and€the€law€entitles€the€movant€to€a€judgment€in€his€or€herÏfavor.€€òòTenn.€R.€Civ.€P.óó€56.03€(West€1996).€€Because€the€parties€do€not€disputeÏthe€facts€material€to€the€issues€presented€by€this€case,€the€only€issue€for€this€courtÏis€whether€the€law€entitled€OEI€to€a€favorable€judgment.€€It€is€the€opinion€of€thisÏcourt€that€the€law€does€not€entitle€OEI€to€a€judgment€and€that€the€trial€court€erredÏin€overruling€TOSIððs€motion.ÌÌà@ àò òIssue€Oneó óÌÌà àThe€general€rule€of€law€in€Tennessee€is€that€ð ða€salesman€is€entitled€toÏcommission€for€any€sale€made€by€him€prior€to€discharge€if€the€order€is€acceptedÏand€shipped€after€discharge.ðð€€òòò òQuinnan€v.€American€Hosp.€Supply€Corp.óóó ó,ÍNo.€85„195„II,€1985€WL€4076,€at€*3€(Tenn.€App.€29€Oct.€1985).€€Clearly,€thisÏrule€of€law€applies€by€analogy€to€the€instant€case.€€This€rule€does€not€apply,Ïhowever,€when€ð ðthe€parties€unequivocally€agree€otherwise.ðð€€òòò òId.ó óóó€at€*4.€€The€termÏunequivocal€means€ð ðleaving€no€doubt.ðð€€òòMerriam€Websterððs€CollegiateÏDictionaryóó€1290€(10th€ed.€1993).ÌÌà àTOSI€insists€section€11(a)€does€not€meet€the€requirements€of€òòò òQuinnanó óóóÏwhile€OEI€argues€the€opposite.€€It€is€the€opinion€of€this€court€that€TOSI€isÏcorrect.€€To€explain,€the€language€of€section€11(a)€clearly€obligates€OEI€to€payÏTOSI€commissions€on€advertising€sold€and€aired€prior€to€the€termination€date,Ïbut€is€silent€with€respect€to€post„termination€commissions.€€This€silence€createsÏdoubt€as€to€whether€the€Agreement€entitled€TOSI€to€post„terminationÏcommissions.€€In€other€words,€there€is€no€unequivocal€statement€that€OEI€is€notÏobligated€to€pay€TOSI€post„termination€commissions€upon€termination€of€theÏAgreement.€€Thus,€the€general€rule€of€law€applies,€and€TOSI€is€entitled€to€itsÏpost„termination€commissions.ÌÌà@ àò òIssue€Twoó óÌÌà àOEI€claims€section€11(a)€only€obligates€OEI€to€pay€TOSI€commissions€onÏadvertising€sold€and€aired€prior€to€the€termination€date€upon€termination€of€theÏAgreement€without€cause.€€Thus,€it€is€OEIððs€contention€that€TOSI€lost€any€rightsÏit€had€under€the€Agreement€to€the€post„termination€commissions€uponÏtermination€of€the€Agreement€without€cause€by€either€party.€€In€response,€TOSIÏargues€that€such€an€interpretation€of€section€11(a)€amounts€to€an€unlawfulÏforfeiture.€€We€agree.ÌÌà àOEIððs€proposed€construction€of€section€11(a)€results€in€an€unenforceableÏforfeiture.€€Forfeitures€are€not€illegal€per€se,€but€are€not€favored€in€equity.€ÏGenerally,€courts€will€enforce€forfeitures€ð ðunless€justice€and€equity€is€violated.ðð€Ïòòò òSanders€v.€Sandersóóó ó,€40€Tenn.€App.€20,€34,€288€S.W.2d€473,€479€(1955).€ÏThus,€courts€will€not€enforce€a€penalty€or€forfeiture€as€written€unless€it€is€fairlyÏproportionate€to€the€damages€incurred€by€the€party€seeking€to€enforce€the€penaltyÏor€forfeiture.€€òòò òSee€Hasden€v.€McGinnisóóó ó,€54€Tenn.€App.€39,€43,€387€S.W.2dÏ631,€633€(1964).ÌÌà àThere€are€no€damages€in€this€case€to€compare€with€the€forfeiture.€€OEIÏterminated€the€Agreement€without€cause.€€Moreover,€OEI€admits€that€TOSI€didÏnot€breach€the€Agreement€in€any€way€and€that€it€simply€wanted€to€move€itsÏadvertising€sales€in„house.€€In€contrast,€TOSI€claims€it€lost€approximatelyÏ$400,000.00× ƒ+ ××  ×€in€commissions.€€It€is€the€opinion€of€this€court€that€such€aÏdisproportionate€forfeiture€is€inequitable€and€unjust€and€should€not€be€enforced€asÏwritten.€€Therefore,€OEIððs€proposed€construction€of€section€11(a)€must€fail.ÌÌà@ àò òConclusionó óÌÌà àIt€is€the€conclusion€of€this€court€that€the€chancery€court€erred€in€overrulingÏTOSIððs€motion€for€summary€judgement.€€As€a€matter€of€law,€the€Agreement€didÏnot€contain€an€unequivocal€provision€that€OEI€was€not€obligated€to€pay€post„termination€commissions€upon€termination€of€the€Agreement.€€In€addition,€theÏconstruction€of€section€11(a)€proposed€by€OEI€results€in€an€unlawful€forfeitureÏwhich€the€court€may€not€enforce.ÌÌà àTherefore,€it€follows€that€the€provision€in€the€chancery€courtððs€orderÏoverruling€TOSIððs€motion€for€summary€judgment€is€reversed.€€On€remand,€theÏchancery€court€shall€enter€an€order€awarding€TOSI€any€commissions€earnedÏpursuant€to€section€7€of€the€Agreement.€€Costs€on€appeal€are€taxed€againstÏdefendant/appellee,€Outdoor€Entertainment,€Inc.ÌÌÌÓÓÔ€XÔà àà àà àà àà àà àà à___________________________________Ìà àà àà àà àà àà àà àSAMUEL€L.€LEWIS,€JUDGEÌÌCONCUR:ÌÌ_______________________________________ÌHENRY€F.€TODD,€PRESIDING€JUDGE,€Ìà àMIDDLE€SECTIONÌÌÌ_______________________________________ÌBEN€H.€CANTRELL,€JUDGE