ÿWPCG …# VUNa %¯ 0(µUPÝw@- 4m  0l 0Dü 0J@ Š 0T’ 0^æ 0hD 0r¬ 0| 0†š B 0= 1uÍ 0dBU>¦U6äB)DCC AM† D3ÓU* 0 0@=Ô}v~QvÓÏ AO¢Æñ 0D· D/û B*˜HP LaserJet 4SiHPPCL5MS,ü,,,,,ü0nLhÎ(ÈhH  Z 6Times New Roman RegularX($¡¡&@FÐZ ‹8CaslonOpnface BT Regular … D† ‡ ˆ D‰ +Š D‹ DŒ D UŽ Ó€·‚^!3|x™ ((3üÝ$¤¤Ý ƒ!ÝÝ  Ýà  àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  Úóó2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô d2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)P ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ< Œ 9p`(&Times New Roman< Œ 9p`(Courier New% Line 7 d''''7Border 1dd€-(Cþÿ << Gÿÿ'ÿÿdxd< Œ 9p`(Arial Ý ƒ!ÝÑ#€d#ÑÔ€%ÔÝ  ÝÔ€+ÔÔ€+ÔÓ  ÓÔ YYY ÔFILEDÔ€+XÔÌÌò òMarch€18,€1997ÌÌCecil€Crowson,€Jr.ÌÔ€+ôÔAppellate€Court€Clerkó ó("ÿÿ$££Ò  ÒÒ  Ò ÊÝ ƒ!ÝÑ#€d#ÑÔ€%ÔÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝÔ€%ôÔÔ€&ÔA€dispute€arose€between€the€parties€over€the€amount€of€rent€that€wasÏdue.€€Manz€maintained€that€he€had€agreed€to€pay€rent€based€only€upon€theÏamount€of€hours€he€actually€used€the€machine,€while€Remco€insisted€that€it€hadÏagreed€to€rent€the€loader€at€a€flat€monthly€rate.ÌPtPtHHÚ(ÿáÿâùFG(üHHÚ(d'hStyl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑGenevaÑÑ ÑÒ  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  ÝÑ P ÑÑ\R AØ'\ÑÑ\R AØ'\ÑÔ€&ÔÑ7€ ÔXdðdÈ7ÑÑ  ÑÙ€€ÙßR€),(A1-j|` Å `€€@ÿRß›Þ ÞÌà@ àIN€THE€COURT€OF€APPEALS€OF€TENNESSEEÌÌÌÌREMCO€EQUIPMENT€SALES,€INC.,à à€€)€C/A€NO.€03A01„9609„CH„00300Ìà àà àà àà àà àà à€€)Ìà àPlaintiff„Appellee,à àà à€€)Ìà àà àà àà àà àà à€€)Ìà àà àà àà àà àà à€€)Ìà àà àà àà àà àà à€€)€APPEAL€AS€OF€RIGHT€FROM€THEÌv.à àà àà àà àà à€€€à à€€)€HAMILTON€COUNTY€CHANCERY€COURTÌà àà àà àà àà àà à€€)Ìà àà àà àà àà àà à€€)€Ìà àà àà àà àà àà à€€)ÌMARY€K.€MANZ€andà àà àà à€€)ÌEDWARD€H.€MANZ,€III,à àà à€€)Ìà àà àà àà àà àà à€€)€HONORABLE€R.€VANN€OWENS,Ìà àDefendants„Appellants.à à€€)€CHANCELLORÌÌÌÌÌÌFor€Appellantsà àà àà àà àà àFor€AppelleeÌÌLLOYD€A.€LEVITTà àà àà àà àJ.€CHRISTOPHER€HALLÌLevitt€&€Levittà àà àà àà àShumacker€&€Thompson,€P.C.ÌChattanooga,€Tennesseeà àà àà àChattanooga,€TennesseeÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌà@ àÔ€ÔÔ€ ÔO€P€I€N€I€O€NÔ€&ÔÔ€&XÔÌÌÌÌÌÌÌÌÌÌÌÌREVERSED€IN€PARTÌAFFIRMED€IN€PARTÌREMANDEDà àà àà àà àà àà àà àà àà àà àSusano,€J.ÌÓÓà àà àWe€are€asked€to€review€a€portion€of€the€trial€courtððsÏjudgment€entered€on€a€jury€verdict.€€The€jury€found,€among€otherÏthings,€that€the€plaintiff€Remco€Equipment€Sales,€Inc.€(Remco)€wasÏentitled€to€recover€attorney€fees€œas€a€result€of€a€dispute€arisingÏout€of€a€commercial€transaction€with€the›€defendant€Edward€H.€Manz,ÏIII€(Manz).€€In€order€to€resolve€this€dispute,€we€must€decide€ifÏan€earlier€written€rental€agreement€between€the€parties„„one€thatÏprovides€for€attorney€fees€in€case€of€a€dispute„„can€be€used€as€aÏbasis€for€a€fee€award€growing€out€of€a€subsequent€œnon„documentedÏtransaction›€between€these€same€parties.€€The€trial€court€ruledÏthat€it€could.€€The€juryððs€verdict€followed.€€Manz€appealed,Ïraising€issues€that€in€substance€present€the€following€questionsÏfor€our€review:ÌÌÓÓà àà8 à1.€€Did€the€trial€court€err€in€denying€œManzððs›Ïmotion€for€a€directed€verdict,€and€œinÏsubsequently›€allowing€the€jury€to€decide€ifÏRemco€was€entitled€to€attorney€fees?ÌÌà àà8 à2.€€Did€the€trial€court€err€in€awarding€RemcoÏattorney€fees€of€$8,250?ÌÌÓÓÌà@ àIÌÌà àà àManz€first€rented€the€piece€of€equipment€at€issue€inÏthis€case„„a€John€Deere€655€front„end€loader€(loader)„„in€October,Ï1994.€€At€that€time,€he€signed€œRemcoððs€form€contract›€œentitled›Ïð ðRental€Agreementðð,€which€provides€in€pertinent€part€thatÌÌÓÓà àà8 à[i]n€the€event€it€is€necessary€for€[Remco]€toÏemploy€an€attorney€to€recover€this€equipmentÏor€collect€the€rentals€or€damages€due€underÏthis€contract,€[Manz]€shall€pay€all€costs€thatÏaccrue,€including€reasonable€attorneyððs€fees.ÌÌÓÓÌManz€used€the€loader€on€the€property€of€his€mother,€the€defendantÏMary€K.€Manz.€€Following€this€initial€rental,€Remco€œpicked€up›€theÏœloader,›€and€Manz€paid€the€œrent›€due.€€The€parties€agree€that€thisÏcontract€was€then€fully€performed€on€both€sides.ÌÌà àà àOn€November€11,€1994,€Remco€again€delivered€theÏequipment€to€Manz€at€his€motherððs€œproperty.›€€The€Remco€employeeÏwho€delivered€the€loader€brought€along€a€ð ðRental€Agreementðð€formÏidentical€to€the€one€Manz€had€signed€œon›€the€first€rental.€€ManzÏwas€not€present€to€sign€the€œcontract,›€so€the€employee€left€theÏœloader›€and€returned€the€unsigned€form€to€œRemcoððs€office.€›€RemcoÏapparently€took€no€further€action€to€secure€œManzððs›€signature.ÌÌà àà àIn€accordance€with€the€partiesðð€oral€understanding€thatÏthe€second€rental€would€be€for€a€period€of€one€month,€Manz€keptÏthe€loader€until€December€12,€1994.€€œWhen›€Manz€failed€to€pay€forÏthe€loader€or€return€it€to€Remco,€the€latter€œagain€picked€up›€theÏequipment€and€sent€Manz€a€bill€for€œ$6,416.›€€This€figure€representsÏthe€rent€due,€plus€$1,500€œfor€claimed€damage›€œto›€the€equipmentÏwhile€it€was€in€œManzððs›€possession.€€After€Manz€sent€œRemco€a›€checkÏœfor›€$2,241.30,€œapparently€contending€that€it€was€in›€fullÏsatisfaction€of€his€obligationsœ€under€the€rental× ƒ. ××  ×›,€Remco€filed€aÏNotice€of€Claim€of€Lien€on€the€property€of€the€defendant€Mary€K.ÏManz,€and€subsequently€filed€œthis›€lawsuit.ÌÌà àà àManz€moved€for€a€directed€verdict€at€the€end€of€RemcoððsÏproof„in„chief,€and€again€at€the€close€of€all€the€proof.€€TheÏtrial€court€denied€the€motion€on€both€occasions.€€The€jury€thenÏfound€that€Manz€was€obligated€to€pay€rent€in€the€amount€of€$3,400,Ïas€well€as€$750€to€compensate€Remco€for€damage€to€the€loader.€€TheÏjury€also€determined€that€the€second€œrental›€between€the€partiesÏincluded€the€terms€of€the€written€rental€agreement,€specificallyÏthe€provision€for€attorney€fees.€€This€finding€precipitated€a€non„jury€hearing€on€œfees,›€after€which€the€trial€judge€awarded€RemcoÏattorney€fees€of€$8,250.ÌÌà àà àManz€œappealed›€only€the€award€of€attorney€fees,€insistingÏthat€he€cannot€be€bound€œby›€the€terms€of€a€contract€that€he€did€notÏsign,€and€that€the€trial€judge€erred€in€denying€his€motion€for€aÏdirected€verdict€on€fees.€€Manz€also€argues€that€Remco€was€not€theÏprevailing€œparty€as€far€as€entitlement›€to€attorney€œfees€isÏconcerned,›€because€the€juryððs€verdict€of€$4,150€œis›€closer€to€theÏamount€paid€by€Manz,€i.e.€œ$2,241.30,›€than€the€amount€claimed€byÏRemco,€i.e.€$6,416.€€In€the€alternative,€Manz€contends€that€theÏamount€of€attorney€fees€awarded€by€the€trial€judge€œis›€notÍreasonable,€in€light€of€the€amount€of€the€juryððs€œaward›€œof€damagesÏand›€the€surrounding€circumstances.Ìœ›œÌ›à@ àIIÌÌà àà àIn€reviewing€the€trial€courtððs€denial€of€œManzððs›€motionÏfor€a€directed€verdict,€we€are€required€to€take€the€œstrongestÏlegitimate›€view€of€the€evidence€in€favor€of€the€opponent€of€theÏmotion,€allow€all€reasonable€inferences€in€the€œnonmovant›ððs€favor,Ïand€discard€all€countervailing€evidence.€€ò òòòBills€v.€Lindsayó óóó,€909ÏS.W.2d€434,€438€(Tenn.€App.€1993);€òòò òPettus€v.€Hurstó óóó,€882€S.W.2dÏ783,€788€(Tenn.€App.€1993).€€A€directed€verdict€is€ð ðappropriateÏonly€when€the€evidence,€viewed€reasonably,€supports€œ[only]€one›Ïconclusion.ðð€€œòòò òId.ó óóó›ÌÌà àà àIt€is€well„established€that€absent€a€œstatute€providingÏfor€attorney€fees€or›€œan€agreement›€between€the€œparties€soÏproviding,›€an€award€of€attorney€fees€as€part€of€a€damage€award€isÏcontrary€to€œthe€public›€policy€œof›€Tennessee.€€òòò òOwen€v.€Stanleyóóó ó,Ï739€S.W.2d€782,€788€(Tenn.€App.€1987)ò ò;ó ó€ò òòòJohn€J.€Heirigs€Constr.ÏCo.€v.€Exideóóó ó,€709€S.W.2d€604,€609€(Tenn.€App.€1986);€ò òòòThayer€v.ÏWright€Co.ó óóó,€362€S.W.2d€805,€812€(Tenn.€App.€1961).€€In€this€case,Íthere€is€no€applicable€œstatute›€œproviding›€for€attorney€fees;Ïœtherefore,›€we€must€determine€whether€the€second€rental€includesÏsuch€a€provision.ÌÌà àà àœEach€of€the›€œtwo€rental›€agreement€forms€before€œus„„oneÏsigned€and€one€unsigned„„clearly›€œprovides›€that€Remco€may€recoverÏreasonable€attorney€fees€incurred€in€the€recovery€of€the€equipmentÏor€the€collection€of€rent€and€œdamages.›€€However,€the€œcontract€forÏthe€second€transaction,›€which€is€the€relevant€document€here,€wasÏnever€signed€by€Manz.€€Thus,€the€question€becomes€whether€theÏterms€and€conditions€contained€in€that€unsigned€form,€includingÏthe€provision€for€attorney€fees,€govern€the€second€rentalÏagreement€œdue›€to€a€course€of€dealing€established€between€theÏparties€œas€a€result€of€the€first€transaction.›€€For€the€reasons€setÏforth€below,€we€hold€that€they€do€not.ÌÌà àà àAt€trial,€Remco€contended€that€the€prior€course€ofÏdealing€between€the€parties€could€be€used€to€œestablish›€the€termsÏand€conditions€of€their€second€rental€agreement.€€Specifically,ÏRemco€points€out€that€Manz€had€signed€the€prior€contract,€whichÏprovides€for€attorney€fees,€and€that€an€identical€form€had€beenÏœprepared›€for€the€second€rental.€€Therefore,€according€to€Remco,Íthe€parties€had€established€a€course€of€dealing€sufficient€toÏimpose€the€same€contractual€terms€upon€Manz€œfor€the›€secondÏœtransaction.›ÌÌà àà àWe€disagree€with€Remcoððs€analysis.€€We€do€not€believeÏthat,€under€these€circumstances,€a€single€prior€transaction€isÏsufficient€to€constitute€a€ð ðcourse€of€dealingðð,€as€contemplated€byÏthe€Uniform€Commercial€œCode€(UCC).›€€The€statute,€as€adopted€inÏTennessee,€defines€a€ð ðcourse€of€dealingðð€asÌÌÓÓà àà8 àa€sequence€of€previous€conduct€between€theÏparties€to€a€particular€transaction€which€isÏfairly€to€be€regarded€as€establishing€a€commonÏbasis€of€understanding€for€interpreting€theirÏexpressions€and€other€conduct.ÌÌÓÓÌT.C.A.€ðð€47„1„205(1).€€Although€there€are€no€Tennessee€casesÏdirectly€on€point,€other€courts€interpreting€this€œprovision€of€theÏUCC›€have€noted€that€the€ð ðemphasis€is€on€a€sequence€of€events;€aÏsingle€transaction€cannot€constitute€a€course€of€dealing.ðð€Ïòòò òInternational€Therapeutics,€Inc.€v.€McGraw„Edison€Co.ó óóó,€721ÏF.2d€488,€491€(5th€Cir.€1983).€€òòAccord,€e.g.,€ò òBowdoin€v.€ShowellÏGrowers,€Inc.ó óóó,€817€F.2d€1543,€1547€n.18€(11th€Cir.€1987);€ò òòòKernÏOil€and€Refining€Co.€v.€Tenneco€Oil€Co.óóó ó,€792€F.2d€1380,€1385Í(9th€Cir.€1986);€ò òòòCompton€v.€Nationwide€Mut.€Ins.€Co.óóó ó,€480ÏF.Supp.€1254,€1257€(W.D.€Va.€1979);€ò òòòGeneral€Motors€AcceptanceÏCorp.€v.€Clifton„Fine€Central€School€Dist.óóó ó,€85€N.Y.2d€232,Ï623€N.Y.S.2d€821,€647€N.E.2d€1329,€1331€(1995);€òòò òUnique€Designs,ÏInc.€v.€Pittard€Machinery€Co.ó óóó,€200€Ga.App.€647,€409€S.E.2dÏ241,€246€(1991).òò€óóÌÌà àà àWe€find€this€authority€persuasive.€€Therefore,€weÏconclude€that€the€first€rental€of€the€loader€under€the€œwritten›Ïagreement€œsigned€by€the€parties€did›€not€establish€a€course€ofÏdealing€sufficient€to€bind€Manz€œin€the€second€transaction€to›€theÏterms€of€the€œidentical,€but€unsigned›€rental€contract.ÌÌà àà àRemco€also€argues€that€it€was€not€unusual€in€œthe›€courseÏof€œits€business,›€or€in€the€practice€of€the€industry,€for€rentalÏcontracts€to€remain€unsigned.€€Even€if€true,€these€facts€have€noÏdirect€bearing€on€this€case.€€Remcoððs€transactions€with€otherÏparties€are€immaterial€to€its€dealings€with€Manz.€€Moreover,€proofÏof€one€prior€transaction€with€Remco€does€not€establish€that€ManzÏhad€knowledge€œof,›€œor›€assented€œto,›€Remcoððs€usual€business€œpractice.›ÌÌà àà àœWe›€find€that€the€trial€judge€erred€in€denying€œManzððs›Ïmotion€for€a€directed€verdict€on€the€issue€of€attorney€fees.€ÏViewed€reasonably,€the€evidence€supports€only€one€conclusion„„theÏsecond€rental€was€not€based€on€a€contract€between€the€partiesÏproviding€for€attorney€fees.€€òòSee€ò òPettusó óóó,€882€S.W.2d€at€788.€ÏGiven€our€disposition€of€this€issue,€we€œfind€it€unnecessary›€toÏaddress€the€questions€of€whether€Manz€was€the€prevailing€party€andÏwhether€the€fees€awarded€were€reasonable.€€ÌÌà àà àThe€judgment€of€the€trial€court€awarding€Remco€attorneyÏfees€of€$8,250€is€hereby€reversed.€€The€remainder€of€the€judgmentÏis€affirmed.€€Costs€on€appeal€are€assessed€to€the€appellee.€€ThisÏcase€is€remanded€to€the€trial€court€for€the€entry€of€an€orderÏdismissing€Remcoððs€claim€for€attorney€fees,€and€such€furtherÏproceedings€as€may€be€necessary,€consistent€with€this€opinion,€andÏfor€collection€of€costs€assessed€below,€pursuant€to€applicableÏlaw.ÌÌÌÓÓà àà àà àà àà àà àà à__________________________Ìà àà àà àà àà àà àà àCharles€D.€Susano,€Jr.,€J.ÌÌÌÌCONCUR:ÌÌÌÌ________________________ÌHouston€M.€Goddard,€P.J.ÌÌÌÌ________________________ÌWilliam€H.€Inman,€Sr.J.Ì