WPCP- sqnmh4k)x S"P3+VVo4{J%Vh,vYlK}q4-[sGُɰJT(ES 3;C֭IhB 8 ^x_;b_6s# F UNQ % 0( UF UP UFc w@ 4  2 0 l> 0DQUF?UFUFUFUF(UF7>UNu"UF" #UF&' B''QD'UF))U:******* D34+4+4+ 0Dg+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+g+ AO+++ 0D, D/- B3-HP LaserJet 4SiHPPCL5MS,,,,,,0nL(hH  Z 6Times New Roman RegularX($<4 9Z .Courier New Regular&@FZ 8CaslonOpnface BT Regular<4 9Z .Courier New Regular DDZeDDӀRC&3|x (  $    1     'XX 'CityandCountyBankofJeffersonCounty( C&C)subsequentlyfailed, P  anditsassetswereacquiredbyMerchantsandPlantersBank,pursuanttoaJanuary21,1984,purchaseandassumptionagreementwiththeFederalDepositInsuranceCorporation( FDIC).MerchantsandPlantersBankthereafterwaspurchasedbyDominionBankshares,whichinturnwasacquiredbyFirstUnionNationalBankin1993;thus,FirstUnionwassuedinitscapacityasultimatesuccessorininteresttoC&C.Foreaseofreference,wewillrefertothevariousentitiescollectivelyas theBank.# 'b##XX 'C#((3$ !      0  (#$  0   G  $    2    X XXXcXX TheBankassertsthattheseconcessionsweremadeonly asacustomer P  servicematter.Itcontendsthatatthesametime,Skeenwasspecificallytoldthathewouldnotbepaid10%interestafterAugust26,1989.Skeen,however,deniesagreeingtoanysuchreductionintheapplicablerate.Thetrialcourtmadenospecificfindingsastothisquestion.Ourdecisioninthiscasedoesnotrequireustoresolvethisconflict.<4 9Z .Courier New Regular<4 9Z .Courier New Regular   $    4    X XXXcXX TheBankalsocontendsthatSkeensclaimsofbreachofcontractand P  breachoffiduciarydutyarebarredbytheapplicablestatuteoflimitations,setforthatT.C.A.283109(3).Thatsectionprovidesthat [a]ctionsoncontractsnototherwiseexpresslyprovidedforshallbecommencedwithinsixyearsoftheaccrualofthecauseofaction.ThetrialcourtdeniedtheBanksmotionforsummaryjudgment,whichmotionwaspartiallybaseduponthedefendantsstatuteoflimitationsdefense.Initsmemorandumopinion,thetrialcourtdidnotspecificallyaddressthatdefenseonthemerits,electinginsteadtoaddressthesubstanceofSkeensclaim.Onthisappeal,wehavepretermittedconsiderationoftheBankscontentionthatSkeensclaimwasfiledbeyondtheperiodoflimitations.<4 9Z .Courier New Regular   $    3    X XXXcXX Skeenacknowledgesinhisbriefthattheevidencedidnotestablishan P  enforceableoralcontractbetweentheBankandhimself.HearguesthattheevidenceregardinganyoralrepresentationsmadebytheBankwasofferedmerelytoexplaintheintentionofthepartiesandtheinterpretationofthewrittendocuments.<4 9Z .Courier New Regular   $    3    X8XXXXX8Skeenacknowledgesinhisbriefthattheevidencedidnotestablishan P  enforceableoralcontractbetweentheBankandhimself.HearguesthattheevidenceregardinganyoralrepresentationsmadebytheBankwasofferedmerelytoexplaintheintentionofthepartiesandtheinterpretationofthewrittendocuments.<4 9Z .Courier New Regular   $    4    X8XXXXX8TheBankalsocontendsthatSkeensclaimsofbreachofcontractand P  breachoffiduciarydutyarebarredbytheapplicablestatuteoflimitations,setforthatT.C.A.283109(3).Thatsectionprovidesthat [a]ctionsoncontractsnototherwiseexpresslyprovidedforshallbecommencedwithinsixyearsoftheaccrualofthecauseofaction.ThetrialcourtdeniedtheBanksmotionforsummaryjudgment,whichwaspartiallybaseduponthedefendantsstatuteoflimitationsdefense.Initsmemorandumopinion,thetrialcourtdidnotspecificallyaddressthatdefenseonthemerits,electinginsteadtoaddressthesubstanceofSkeensclaim.Onthisappeal,wehavepretermittedconsiderationoftheBankscontentionthatSkeensclaimwasfiledbeyondtheperiodoflimitations.<4 9Z .Courier New Regular -  $    1    /XX/CityandCountyBankofJeffersonCounty( C&C)subsequentlyfailed, P  anditsassetswereacquiredbyMerchantsandPlantersBank,pursuanttoaJanuary21,1984,purchaseandassumptionagreementwiththeFederalDepositInsuranceCorporation( FDIC).MerchantsandPlantersBankthereafterwaspurchasedbyDominionBankshares,whichinturnwasacquiredbyFirstUnionNationalBankin1993;thus,FirstUnionwassuedinitscapacityasultimatesuccessorininteresttoC&C.Foreaseofreference,wewillrefertothevariousentitiescollectivelyas theBank.#/b##XX/C#(hH  Z 6Times New Roman Regular<4 9Z .Courier New Regular   $    4    X XXXFXX TheBankalsocontendsthatSkeensclaimsofbreachofcontractand P  breachoffiduciarydutyarebarredbytheapplicablestatuteoflimitations,setforthatT.C.A.283109(3).Thatsectionprovidesthat [a]ctionsoncontractsnototherwiseexpresslyprovidedforshallbecommencedwithinsixyearsoftheaccrualofthecauseofaction.ThetrialcourtdeniedtheBanksmotionforsummaryjudgment,whichwaspartiallybaseduponthedefendantsstatuteoflimitationsdefense.Initsmemorandumopinion,thetrialcourtdidnotspecificallyaddressthatdefenseonthemerits,electinginsteadtoaddressthesubstanceofSkeensclaim.Onthisappeal,wehavepretermittedconsiderationoftheBankscontentionthatSkeensclaimwasfiledbeyondtheperiodoflimitations.<4 9Z .Courier New Regular d G  $    2    !X8XXX!XX8TheBankassertsthattheseconcessionsweremadeonly asacustomer P  servicematter.Itcontendsthatatthesametime,Skeenwasspecificallytoldthathewouldnotbepaid10%interestafterAugust26,1989.Skeen,however,deniesagreeingtoanysuchreductionintheapplicablerate.Thetrialcourtmadenospecificfindingsastothisquestion.Ourdecisioninthiscasedoesnotrequireustoresolvethisconflict.<4 9Z .Courier New Regular #X XXX#2  X#X   Ad FILED#̶  #2   April16,1999  CecilCrowson,Jr.#  #̶AppellateCourt  Clerk ,cAZ"Arial Regular'dxd(3$ !  -C<< CLevel 1Level 2Level 3Level 4Level 5($$   1  ' dxdP Pd !  P XpXXXTR[A' Legal3'A' Legal3'T7XXdXXd7r"*<,(j 8 `@EQ  tt0"HP rߛ@| | INTHECOURTOFAPPEALSOFTENNESSEE P  @$ATKNOXVILLERONALDL.SKEEN,   h   )C/ANO.O3A019810CV00355 T    `     h   )   ` PlaintiffAppellant,)   `     h   )   `     h   )v.   `     h   )APPEALASOFRIGHTFROMTHE 2     `     h   )JEFFERSONCOUNTYCIRCUITCOURT   `     h   )   `     h   )   `     h   )FIRSTUNIONNATIONALBANK  ) `  OFTENNESSEE,    h   ) 6    `     h   )HONORABLEREXHENRYOGLE,   ` DefendantAppellee.  )JUDGE 2 ForAppellant    h     ForAppellee : F.SCOTTMILLIGAN   h     MARKS.DESSAUER 6 Little&Milligan,PLLC h     Hunter,Smith&Davis   Knoxville,Tennessee h     Kingsport,Tennessee   @$XXXXp M XXOPINIONXX  MXpXXXԈ 1J'/ AFFIRMEDANDREMANDED h      p      x Susano,J. ^:09    ` RonaldL.Skeen( Skeen)seekstorecovercompensatoryandpunitivedamages,aswellasotherrelief,fromFirstUnionNationalBankofTennessee( theBank).HisclaimarisesoutofanallegedbreachofadepositagreementwiththeBank,theBanksallegedbreachofitsfiduciaryduty,andotherallegedmisconduct.Followingabenchtrial,thetrialcourtgrantedSkeenlimitedreliefbutdeniedthebulkofhisclaim.Skeenappeals,raisingissuesthatpresentthefollowingquestionsforourreview:  8 ` 1.DidthetrialcourterrinrulingthatSkeensVariableRateIndividualRetirementAccount( VIRA)wasbasedonanoralcontractwiththeBankspredecessor? ` `    8 ` 2.DidthetrialcourterrinfailingtoconstrueSkeenswrittenVIRAcontracttorequiretheBanktomakeminimuminterestpaymentsoftenpercentaslongasSkeensfundsremainedondeposit? ` `    8 ` 3.DidthetrialcourterrinfailingtorulethattheBankwasafiduciarytoSkeenandinfailingtorulethattheBankhadbreacheditsfiduciarydutytoSkeenregardingtheadministrationoftheVIRA? ` `  Weaffirm.@l l I.FactsandProceduralHistory l-#*    ` SkeenoriginallyopenedhisVIRAaccountatCity&CountyBankofJeffersonCountyonFebruary26,1982.   #  1      Atthat |2,(0 time,Skeendeposited$2,000withtheBankandwasissuedacertificateofdeposit( CD).Hesignedadocumententitled DepositAgreementandDisclosureStatementForYourIndividualRetirementAccount( theDepositAgreement).Thatdocumentprovides,inpertinentpart,asfollows:  8 ` I.CTheBankspecificallyreservestherighttoamendthetermsandprovisionsofthisDepositAgreementandDisclosureStatementfromtimetotimeandatitssolediscretion.... ` `  Atthesametime,SkeenalsoexecutedanotherdocumentamendingtheDepositAgreement.Theamendmentprovides,inpertinentpart,asfollows:  8 ` ThisagreementisbetweenCity&CountyBankofJeffersonCountyand[RonaldSkeen].ThisagreementamendsSectionII,C.toreadasfollows: ` `    8 ` InthecaseofanaccountatBankdesignatedas[a]VIRAaccount,interestontheaccountshallaccrueonfundsfromthedateofdeposittothedateofwithdrawalataperannumrateindexedtotheprecedingweekaverageoptionrateon180dayTreasuryBillsplustwopercent....񛀀Thisadditionalagreementtoamendshallinnootherwayaltertheterms,conditionsorprovisionsotherwisesetforthinthedepositagreementanddisclosurestatementforyourindividualretirementaccount. ` `    8 ` Innoinstanceshalltheaccountbearinterestat .p$, arateoflessthantenpercentperannumnormore /P%- thanarateof16percentperannum. ` `  (Emphasisadded.)   ` TheCDwastomatureandberenewedautomaticallyevery18monthsuntilSkeenwithdrewthefunds.Thus,theCD 8x.8 initiallymaturedandwasrenewedonAugust26,1983.Followingasecondrenewal,onFebruary26,1985,theBankbeganpayinglessthan10%interestontheaccount.Skeenapparentlyearned9%interestontheaccountfromFebruary27,1985toFebruary26,1988,atwhichtimetheCDwasagainrenewed,butwithaninterestrateof8%.Shortlythereafter,onApril25,1988,theBanksentalettertoSkeenstatingthattheaccountwasthenearning8%interest.ThisnotificationwasapparentlythefirstindicationthatSkeenhadthathisCDwasearninglessthan10%.AfterSkeencomplainedtoarepresentativeoftheBank,theBankagreedtodepositadditionalfundsintotheaccounttobringtheinterestrateupto10%.TheBankalsopromisedtopayhim10%interestuntilthenextmaturitydate,August26,1989.   #  2       0    ` TheCDwasonceagainrenewedonAugust26,1989,atwhichpointtheBankbeganpayinginterestofapproximately8%ontheaccount.TheCDmaturedandwasrenewedagainonFebruary26,1991,August26,1992,andFebruary26,1994.InFebruary,1994,theBanksentSkeenaletteradvisinghimthatbecausetheBankhadelectedtodiscontinuethistypeofaccount,theCDwouldnotberenewedagainafteritsnextmaturitydate.TheCDmaturedagainonAugust26,1995,atwhichtimeitwasnotrenewed.WhenSkeendidnotredeemtheCD,theBanksenthimanotherletterstatingthathisfundswerenolongerearninginterest. 3h)2    ` SkeenfiledtheinstantactiononSeptember22,1995.Followinganonjurytrial,thetrialcourtawardedSkeen$807.52asinterest,baseduponthenormalratepaidonan18monthCD,fortheperiodfromAugust27,1995toFebruary28,1998.ThetrialcourtfoundthattheBankhadorallyledSkeentobelievethathisfundswouldearninterestataminimumrateof10%untilwithdrawn;however,thecourtnotedthatthisoralagreementwasnotapartoftheassumptionagreementbetweentheMerchantsandPlantersBankandtheFDIC,andthattheFDICisauthorizedtosellassetsfreeandclearofanyencumbrancesotherthanthosesetforthintheassumptionagreement.Thus,thetrialcourtheldthatSkeen isnotentitledtorecoveronthebasisofanyoralagreementandisentitledonlytorecoverasperthetermsofhis18monthcertificateofdeposit...;accordingly,itdismissedSkeensremainingclaims.@II.StandardofReview $     ` Ourreviewofthisnonjurycaseisdenovouponthe 8($ recordoftheproceedingsbelow.Rule13(d),T.R.A.P.Therecordcomestouswithapresumptionofcorrectnessastothetrialcourtsfactualfindings,whichpresumptionwemusthonor unlessthepreponderanceoftheevidenceisotherwise. Id.; .$, UnionCarbideCorp.v.Huddleston ,854S.W.2d87,91(Tenn. 0h&. 1993); OldFarmBakery,Inc.v.MaxwellAssoc. ,872S.W.2d682, 20(0 684(Tenn.App.1993).However,thepresumptionofcorrectnessdoesnotextendtothetrialcourtsconclusionsoflaw. Campbellv.FloridaSteelCorp. ,919S.W.2d26,35(Tenn.1996); 7H-6  Presleyv.Bennett ,860S.W.2d857,859(Tenn.1993). `9/8 Ї@ III.ThePartiesContentions P     ` SkeenarguesthatthetrialcourterredinbasingitsdecisiononthepremisethatSkeensclaimswerefoundedonanallegedoralagreement.Skeeninsists,onthecontrary,thathisclaimissupportedbythewrittendocumentsexecutedbytheparties.  #  3      Specifically,hearguesthathewascontractually X  entitledtoreceiveatleast10%interestfortheentiretimehisfundswereintheVIRA,byvirtueoftheamendmentexecutedconcurrentlywiththeDepositAgreement.SkeenpointstolanguageintheamendmenttotheDepositAgreementstatingthat interestontheaccountshallaccrueonfundsfromthedateofdeposittothedateofwithdrawal.(Emphasisadded).Hethus H arguesthatthetrialcourterroneouslyfailedtogiveeffecttotheamendedportionoftheagreement.Finally,SkeencontendsthattheBankowedhimafiduciarydutyandthatitscourseofdealingamountstoabreachofthatduty.   ` TheBank,meanwhile,arguesthatthetrialcourtproperlyheldthatSkeencouldnotrelyontheallegedoralagreementtosustainhisclaim.TheBankalsoinsiststhat,evenifSkeensclaimisbasedsolelyonthewrittendocuments,hestillisnotentitledtorelief.Inthiscontext,theBankreliesuponthelanguageofI.CoftheDepositAgreement,which,aspreviouslynoted,reservestotheBanktheright toamendthetermsandprovisionsof[theDepositAgreement]from 3)2 timetotimeandatitssolediscretion.TheBankalsopointsoutthattheamendmenttotheDepositAgreementprovidesthatitdoesnotalteranyprovisionsoftheDepositAgreementotherthanX XXX II.Cofthatdocument.WithregardtoSkeensclaimofa H breachoffiduciaryduty,theBankcontendsthatitneverowedanydutytoSkeenbeyondthatsetforthintheDepositAgreement.Itcites#X XXX /#X XXX I.H#X XXX 0#Ԁofthatdocument,whichsectionprovidesas @  follows:  8 ` Itemsreceivedfordepositorcollectionareacceptedonthefollowingtermsandconditions: ` `    8 ` (1)BankactsonlyasDepositorscollectingagentandassumesnoresponsibilitybeyondtheexerciseofduecare.... ` `  Inaddition,theBankarguesthatevenifafiduciaryrelationshipexisted,thereisnoevidencetosupportafindingthatitbreachedthatduty.Finally,theBankinsiststhatthetrialcourterredinawardingSkeeninterestonhisfundsfortheperiodfromAugust27,1995onedayafterthefinalmaturitydateoftheCDtoFebruary28,1998.  #  4      כ (% @$IV.Analysis D,!)    ` Afterreviewingtherecord,weareoftheopinionthat /\%- nobreachofcontractorbreachoffiduciarydutyoccurredinthiscase.Asnotedearlier,theDepositAgreementreservedfortheBanktherighttoamend,atintheBankssolediscretion,theDepositAgreementstermsandprovisions.TheBankexercisedthisrightbyelectingtochangetherateofinterestpayableonSkeensaccountto8%effectiveuponthematurityofhisCDonAugust26,1989.NothinginthecontractbetweenthepartiesprohibitedtheBankfromtakingthisaction.Byitsterms,theamendmenttotheDepositAgreementaffectsonlyII.CoftheDepositAgreement;infact,theamendmentspecificallyprovidesthatit shallinnootherwayaltertheterms,conditionsorprovisionsotherwisesetforthinthedepositagreement....X XXX It 8 iswellsettledthatabsentfraudormistake,acontractmustbeinterpretedandenforcedaswritten. NSADBABenefitPlan,Inc.  v.ConnecticutGen.LifeIns.Co. ,968S.W.2d791,795(Tenn.App. !P 1997); Ballardv.NorthAmericanLifeandCasualtyCo. ,667 h# S.W.2d79,82(Tenn.App.1983).#X XXX :9#ԀWethereforefindthattheBank 0%  actedwithinitsrightsundertheDepositAgreementwhenitbeganpayinginterestoflessthan10%onSkeensaccount.WecannotagreewithSkeensassertionthat [t]heBankcontractedawayitsabilitytomodifythisprovisionfurther.Onthecontrary,theBankspecificallyreservedtherighttodoexactlythat.Accordingly,weholdthatnobreachofcontractoccurredintheinstantcaseandthatthetrialcourtproperlydismissedthisaspectofSkeensclaim.   ` Bythesametoken,theevidencedoesnotmakeoutaclaimofbreachoffiduciarydutybytheBank.Asnotedearlier,theBankwascontractuallyobligatedtoexercisenothingmore 9.8 thanduecareforthebenefitofthedepositor.ThereisnoevidencethattheBankfailedtofulfillthisobligation.Furthermore,evenifafiduciarydutyexistedaboveandbeyondthedutysetforthintheDepositAgreement,thereisnoevidencetosupportafindingthatsuchadutywasbreached.Aswehaveexplained,theBankactedreasonablyandwithinthediscretionaffordeditbytheDepositAgreementinalteringtheapplicablerateofinterestuponmaturityofSkeensCD.Therefore,thetrialcourtcorrectlydismissedhisclaimregardingtheallegedbreachoffiduciaryduty.   ` Finally,weturntotheBanksissueconcerningthetrialcourtsawardofinterestintheamountof$807.52toSkeen.ThisamountrepresentstheinterestratepaidbytheBankonan18monthCD,asappliedtoSkeensfundsovertheperiodfromAugust27,1995toFebruary28,1998.Duringthisperiod,theBankheld,butpaidnointereston,thefundsinSkeensaccount.Underthesecircumstances,wedonotfindthatthetrialcourterredinawardingtheremedythatitdidSkeeninterestof$807.52.@#V.Conclusion p+ !(    ` Thejudgmentofthetrialcourtisaffirmed.Costsonappealaretaxedtotheappellant.Thiscaseisremandedtothetrialcourtforenforcementofthejudgmentandthecollectionofcostsassessedthere,allpursuanttoapplicablelaw.   `     h     __________________________   `     h     CharlesD.Susano,Jr.,J. 9L/9 CONCUR:________________________HoustonM.Goddard,P.J.________________________HerschelP.Franks,J.