ÿWPC– …# VUNa %¯ 0(µU:Ýw@ 4W k z B‚ Ä 0JÌ 0T 0^j 0hÈ 0r0 0|¢ 0† 0¤ 1u4 0d© U> U *KB)uDCž Bá AMþâKv~-vÓ« D3~ 0@± AOñÆ@ 0D D/J By˜HP LaserJet 4Si/4SiMX PS 600dpiPSCRIPTÀÌÀääÀÀÌ0 (ÖÃ9 Z ‹6Times New Roman RegularX($¡¡,c½¬AZ‹"Arial Regular …U†P‡Dˆ‰ ‹ŒÓ€—DÒ 3|x—C:\WPWIN60\TEMPLATE\STANDARD.WPT2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)P ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ< Œ 9p`(&Times New Roman< Œ 9p`(Arial% Line 7 d####7Border 1dd d€-$Cþÿ << Gÿÿ ØÝ ƒ!ÝÔ€!ÔÝ  ÝÔ€"ÔÔ€"ÔÓ  Óò òÔ YYY ÔFILEDÔ€"XÔÌÌNovember€1,€1996ÌÌCecil€W.€CrowsonÌAppellate€Court€ClerkÔ  Ôó óPtPtHHÚ(ÿáÿâùFG(üHHÚ(d'@Styl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑGenevaÑÑ ÑÒ  BA Op Geneva ÒÒ  BA Op Geneva Ò%%%%'ÿÿdxd("ÿÿ$££Ò  ÒÒ  Ò€-‚ƒCþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5($$””ò òÚ  Ú1Ú  Úó ó„„'÷ÿ dxdüÿP PdÝ ƒ!ÝÔ . ÔÔ€!ÔÝ  ÝÑ\R AØ'\ÑÔ€"Ô›à@ àò òIN€THE€COURT€OF€APPEALS€OF€TENNESSEEÌà@ àWESTERN€SECTION€AT€œNASHVILLE›ÌÌÌMARTIN€SILVA,à àà àà àà à)€€Ìà àà àà àà àà àà à)Ìà àà àó óPlaintiff/Appellee,à àà àò ò)€€Davidson€Chancery€No.€95„2607„IIÌà àà àà àà àà àà à)ÌVS.à àà àà àà àà àà à)€€Appeal€No.€01A01„9604„CH„00153€Ìà àà àà àà àà àà à)ÌJAMES€A.€CROSSMAN€à àà àà à)Ìd/b/a€JIM€CROSSMAN€REALTY,à à)Ìà àà àà àà àà àà à)Ìà àà àó óDefendant/Appellant.à àò ò)ó óÌÌÌà@ àAPPEAL€FROM€THE€CHANCERY€COURT€OF€DAVIDSON€COUNTYÌà@ àAT€NASHVILLE,€TENNESSEEÌà@ àTHE€HONORABLE€ELLEN€HOBBS€LYLE,€CHANCELLORÌÌÙ€€ÙœßL€&'$;+'h|'2` ç `€€Lß›ÌÌÌÌÌÌÌò òROBERT€J.€NOTESTINE,€IIIó óÌNashville,€TennesseeÌAttorney€for€AppellantÌÌÌò òMICHAEL€SNEEDÌó óNashville,€TennesseeÌAttorney€for€AppelleeÌÌÌÌÌÌÌÌÌò òAFFIRMEDÌÌÌÌÌÌÌÌó óà àà àà àà àà àà àà àà àà àò òALAN€E.€HIGHERS,€J.ÌÌÌÌCONCUR:ÌÌW.€FRANK€CRAWFORD,€P.J.,€W.S.ÌÌHOLLY€KIRBY€LILLARD,€J.ÌÌó óœÑ7€QúXXdæXXdì7ÑÓ  ÓÓÓà àThis›€appeal€involves€a€dispute€as€to€the€obligations€of€the€parties€under€a€leaseÏagreement.€€The€lessor€of€the€premises,€James€A.€Crossman,€terminated€the€leaseÏafter€discovering€that€the€lessee,€Martin€Silva,€had€experienced€problems€withÏviolence€and€other€criminal€activities€at€the€previous€location€of€his€nightclub.€€SilvaÏfiled€a€complaint€in€the€Chancery€Court€for€Davidson€County€seeking€damages€forÏbreach€of€the€lease€contract.€€The€trial€court€heard€the€case€without€œa€jury›€and€awardedÏdamages€to€Silva.€€Crossman€has€appealed€and€argues€that€the€trial€court€erred€inÏfailing€to€find€grounds€for€rescission€of€the€lease€and€in€awarding€damages€œto€Silva.€ÏFor€the€reasons€stated€below,€we€affirm€the€judgment.€€ÌÌÓ  Óò òI.ÌÓ  Óó óà àSince€1992,€Martin€Silva€has€owned€and€operated€a€hispanic€nightclub€calledÏð ðEl€Huaracheðð€on€Ewing€Street€in€Nashville,€Tennessee.€In€the€late€spring€of€1995,ÏSilva€decided€to€relocate€the€nightclub€from€Ewing€Street€to€a€building€with€moreÏspace.€One€of€Silvaððs€representatives€contacted€Crossmanððs€leasing€agent,€LeslieÍPomeroy,€regarding€a€piece€of€commercial€property€listed€by€Crossman€that€wasÏlocated€at€514€Ash€Street€in€Nashville.€ÌÌà àIt€is€undisputed€that€Crossman€and€Pomeroy€knew€that€Silva€intended€to€useÏthe€property€as€a€nightclub.€However,€neither€Crossman€nor€Pomeroy€performed€anyÏtype€of€background€check€on€him.€It€is€also€undisputed€that€Pomeroy€did€not€askÏSilvaððs€representative€whether€there€had€been€any€problems€with€violence€or€otherÏcriminal€activities€at€El€Huarache€and€that€Silvaððs€representative€did€not€volunteer€anyÏinformation€of€this€nature.€€The€lease€was€executed€on€July€10,€1995.€ÌÌà àSeveral€days€later,€Crossman€began€to€receive€calls€from€existing€tenants€at€theÏAsh€Street€location€objecting€to€Silvaððs€lease€of€the€premises€for€his€nightclub.€€As€aÏresult€of€these€calls,€Crossman€ordered€a€police€report€listing€the€number€andÏdescription€of€police€calls€to€El€Huarache.€€The€police€report€revealed€that€there€hadÏbeen€73€police€calls€to€El€Huarache,€several€of€which€involved€violent€crimes.€By€letterÏdated€July€27,€1995,€Crossmanððs€attorney€notified€Silva€that€the€lease€was€terminatedÏon€grounds€that€Silva€failed€to€disclose€the€problems€with€criminal€conduct€on€theÏpremises.€€Crossman€returned€Silvaððs€deposit€to€him,€and€Silva€vacated€the€premises.€ÌÌà àSilva€filed€this€action€on€August€24,€1995,€seeking€damages€or,€in€theÏalternative,€specific€performance€as€a€result€of€Crossmanððs€breach€of€the€lease.€In€hisÏanswer,€Crossman€denied€that€he€breached€the€lease€and€counterclaimed€forÏrescission€of€the€lease€on€the€basis€of€fraudulent€concealment.€ÌÌà àFollowing€a€hearing,€the€trial€court€concluded€that€Crossman€was€in€breach€ofÏthe€lease€agreement.€€In€his€findings€of€fact,€the€trial€court€noted€that€neither€Silva€norÏhis€representatives€fraudulently€concealed€any€information€as€they€were€not€askedÏabout€and€had€no€duty€to€provide€information€relating€to€problems€with€criminal€activityÏat€El€Huarache.€€The€trial€court€denied€Silvaððs€request€for€specific€performance€andÏdeclined€to€award€Silva€damages€for€lost€profits€on€the€basis€that€such€damages€wereÏtoo€speculative.€€The€trial€court€did,€however,€allow€Silva€to€recover€$3,500.00€forÏrenovation€costs,€$900.00€for€his€increased€rent,€$1,000.00€for€his€travel€expenses€toÏChicago,€and€$7,000.00€that€Silva€paid€to€book€two€bands€for€opening€night.€ÌÌà àCrossman€has€raised€two€issues€for€our€consideration€on€appeal.€€First,ÏCrossman€asserts€that€the€trial€court€erred€in€failing€to€find€that€Silvaððs€intentionallyÏwithholding€pertinent€information€from€Crossmanððs€agent€was€grounds€for€rescission€ofÏthe€lease.€€Second,€Crossman€contends€that€Silva€failed€to€prove€his€damages€withÏreasonable€certainty.€€ÌÌÓ  Óò òII.ÌÓ  Óó óà àOur€scope€of€review€of€this€case€is€governed€by€T.R.A.P.€13(d),€which€mandatesÏthat€review€of€findings€of€fact€by€the€trial€court€shall€be€òòde€novoóó€upon€the€record,Ïaccompanied€by€a€presumption€of€correctness€of€the€findings,€unless€theÏpreponderance€of€the€evidence€is€otherwise.€€òòFoster€v.€Bueóó,€749€S.W.2d€736,€741Ï(Tenn.€1988).ÌÌÓ  Óò òA.ÌÓ  Óó óà àThe€law€in€Tennessee€provides€that€misrepresentation€may€be€grounds€forÏrescission€of€a€contract€where€the€evidence€shows€that:ÌÓÓà8 àà8 à(1)€there€is€an€assertion€that€is€not€in€accord€with€facts,€(2)Ïthe€assertion€[is]€either€fraudulent€or€material,€(3)€theÏassertion€€[is]€relied€upon€by€the€recipient€in€manifestingÏassent,€and€(4)€the€reliance€of€the€recipient€[is]€justified....AÏpersonsðð€nondisclosure€of€a€fact€known€to€him€is€equivalentÏto€an€assertion€that€the€fact€does€not€exist€where€he€knowsÏthat€disclosure€of€the€fact€would€correct€a€mistake€of€theÏother€party€as€to€a€basic€assumption€on€which€that€party€isÏmaking€a€contract€and€if€nondisclosure€of€the€fact€amountsÏto€a€failure€to€act€in€good€faith€and€in€accordance€withÏreasonable€standards€of€fair€dealing.€€ÌòòÌScruggs€v.€Roachóó,€No.€03A01„9209„CH„00358,€1993€WL€93362,€at€*4€(Tenn.€App.ÏMarch€31,€1993)(internal€citations€omitted).€ÌÌÌÌÓÓà àLiability€for€concealment€or€nondisclosure€will€arise€only€where€a€party€has€aÏduty€to€disclose€the€material€facts€at€issue.€€òòWyner€v.€Athens€Utilities€Boardóó,€821ÏS.W.2d€597,€599€(Tenn.€App.€1988).€€A€duty€to€disclose€exists€where:ÌÓÓà8 àà8 à1.€[T]here€is€a€previous€definite€fiduciary€relation€betweenÏthe€parties.Ìà8 àà8 à2.€[I]t€appears€one€or€each€of€the€parties€to€the€contractÏexpressly€reposes€a€trust€and€confidence€in€the€other.Ìà8 àà8 à3.€[T]he€contract€or€transaction€is€intrinsically€fiduciary€andÏcalls€for€perfect€good€faith....ÌÌòòMacon€Cty.€Livestock€Mkt.€v.€Kentucky€State€Bankóó,€724€S.W.2d€343,€349€(Tenn.€App.Ï1986)(quoting€òòDomestic€Sewing€Machine€Co.€v.€Jacksonóó,€83€Tenn.€418,€424„25Ï(1885).ÌÌÓÓÌà àIn€the€present€case,€there€was€no€fiduciary€or€other€relationship€of€trust€andÏconfidence€between€the€parties.€€The€facts€before€us€indicate,€without€dispute,€that€thisÏwas€an€arms„length€transaction.€€Moreover,€the€number€of€police€calls€to€SilvaððsÏnightclub€was€a€matter€of€public€record€that€could€have€been€ascertained€by€CrossmanÏprior€to€the€execution€of€the€lease.€€Consequently,€we€do€not€find€that€the€evidenceÏpreponderates€against€the€trial€courtððs€determination€that€Silva€had€no€duty€to€discloseÏthe€subject€information.ÌÌÓ  Óò òB.ÌÓ  Óó óà àCrossmanððs€second€issue€is€whether€the€trial€court€erred€in€assessing€damagesÏat€$12,400.00€when€Silva€failed€to€prove€with€reasonable€certainty€the€existence€andÏthe€amount€of€his€damages.Ìà àÌà àAlthough€damages€may€be€allowed€for€breach€of€contract€even€though€the€exactÏamount€is€not€proved,€damages€must€nevertheless€be€proved€to€a€reasonable€degreeÏof€certainty.€€òòPinson€&€Assoc.€Ins.€Agency,€Inc.€v.€Krealóó,€800€S.W.2d€486,€488€(Tenn.ÏApp.€1990).€€The€requirement€that€damages€be€proved€with€reasonable€certainty€doesÏnot€require€mathematical€precision,€but€only€requires€enough€proof€to€enable€the€trierÏof€fact€to€make€a€fair€and€reasonable€assessment.€€òòId.óó€at€488.€€€It€is€a€fundamental€tenetÏof€Tennessee€law€that€courts€will€not€award€speculative€or€uncertain€damages.€ÏòòNashland€Assocs.€v.€Shumateóó,€730€S.W.2d€332,€334€(Tenn.€App.€1987).€€WhenÏanticipated€lost€profits€are€too€speculative,€an€aggrieved€party€may€recover€based€onÏhis€or€her€reliance€interest,€which€includes€ð ðexpenditures€made€in€preparation€forÍperformance€or€in€performance....ðð€RÔ€"ôÔESTATEMENTÔ€"XÔ€(SÔ€"ôÔECONDÔ€"XÔ)€Ô€"ôÔOFÔ€"XÔ€CÔ€"ôÔONTRACTSÔ€"XÔ,€Sec.€349Ï(1979).ÌÌà àSilva€testified€as€follows€with€respect€to€his€damages.€€€He€spent€$3,500.00€forÏvarious€renovations€that€were€approved€by€Crossman€and€evinced€in€the€leaseÏagreement.€€In€preparation€for€the€opening€of€the€new€location,€Silva€traveled€toÏChicago€to€purchase€a€mechanical€bull€for€$5,000.00.€€He€testified€that€his€travelÏexpenses€were€approximately€$1,000.00,€although€he€did€not€have€a€receipt€or€aÏcanceled€check€to€confirm€these€expenses.€Silva€also€testified€that€he€contracted€withÏtwo€Mexican€bands€to€play€on€opening€night.€€Because€his€lease€was€terminated,Ïhowever,€he€was€forced€to€cancel€the€bookings.€€Silva€stated€that€he€paid€the€bandsÏ$7,000.00€in€cash,€and€that€he€did€not€have€a€receipt€or€a€canceled€check.€€In€order€toÏremain€at€his€old€location,€Silvaððs€rent€increased€by€$150.00€a€month.€€Finally,€SilvaÏpresented€testimony€relating€to€what€he€estimated€that€he€lost€in€profits€due€to€hisÏinability€to€open€the€club€on€Ash€Street.€ÌÌà àWhere€issues€of€credibility€and€weight€of€testimony€are€involved€and€the€trialÏjudge€has€observed€and€listened€to€the€witnesses,€considerable€deference€must€beÏafforded€to€the€trial€courtððs€findings€because€the€trial€judge€is€in€the€best€position€toÏevaluate€credibility.€€òòTenn„Tex€Properties€v.€Brownell„Electro,€Inc.óó,€778€S.W.2d€423,Ï425„26€(Tenn.€1989).ÌÌà àThe€trial€judge€in€this€case€had€the€opportunity€to€observe€Silva€and€to€assessÍhis€credibility€as€he€testified€regarding€the€damages€that€he€allegedly€suffered.€€In€theÏabsence€of€any€evidence€in€the€record€to€the€contrary,€we€are€not€inclined€to€disburbÏthe€trial€judgeððs€findings€in€this€regard.€€The€trial€judge€properly€disallowed€recovery€forÏspeculative€lost€profits€and€arrived€at€a€figure€that€is€reasonable€and€entirely€consistentÏwith€both€the€evidence€presented€at€trial€and€the€applicable€law.ÌÌà àAccordingly,€the€judgment€of€the€trial€court€is€affirmed.€€Costs€on€appeal€areÏadjudged€against€appellant.ÌÌÓÓà àà àà àà àà àà àà àà àòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€Ïóóà àà àà àà àà àà àà àà àHIGHERS,€J.ÌÌCONCUR:ÌÌÌÌòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€óóÌCRAWFORD,€P.J.,€W.S.ÌÌÌÌòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€óóÌLILLARD,€J.