ÿWPCF …# VUNa %¯ 0(µw@Ý4 1 @ 0JH 0T’ 0^æ D 0hJ 0r² 0|$ 0†  0& 1u¶ 0d+ U> U*Í B)÷ DC  AMc° BÀv~ÝvÓ[ D3. 0@a AO¡Æð 0D¶ D/ú B)˜HP LaserJet 4Si/4SiMX PS 600dpiPSCRIPTÀÌÀääÀÀÌ0 (ÈhH  Z ‹6Times New Roman RegularX($¡¡ S ÊT ÊU DV DW DX UY UZ Ê[ Ê\ Ó€·‚^!3|xg 2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  ÔHV26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô  ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)P ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ< Œ 9p`(&Times New Roman< Œ 9p`(Arial% Line 7 d!!!!7Border 1dd€-"Cþÿ << Gÿÿ Ý ƒ!ÝÑ#€d#ÑÔ€ÔÝ  ÝÔ€ ÔÔ€ ÔÓ  ÓÔ YYY ÔFILEDÔ€ XÔÌÌò òDecember€13,€1996ÌÌCecil€Crowson,€Jr.ÌÔ€ ôÔAppellate€Court€Clerkó ó dPtPtHHÚ(ÿáÿâùFG(üHHÚ(d'hStyl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑGenevaÑÑ ÑÒ  h HD: Geneva ÒÒ  h HD: Geneva Ò%%%%'ÿÿdxd("ÿÿ$££Ò  ÒÒ  Ò€-‚ƒCþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5($$””ò òÚ  Ú1Ú  Úó ó„„'÷ÿ dxdüÿP PdÝ ƒ!ÝÔ . ÔÔ€ÔÝ  ÝÑ  ÑÒ  ÒÒ ° ÒÒ  ÒÒ „ ÒÑ\R AØ'\Ñò òÑ  ÑÓ  ÓÑ\R AØ'\ÑÔ€ ÔÑ7€•1XXdìdÈ7ÑÙ€€ÙßR€#$"A1-j|` Å `€€@ÿRßÞ ÞÌIN›€THE€COURT€OF€APPEALS€FOR€THE€STATE€OF€TENNESSEEÌEASTERN€SECTION€AT€KNOXVILLEó óÌÌÌÓ  ÓW€&€F€LAND€COMPANY,€et€al.,à àà à)Ìà àà àà àà àà àà à)à àKNOX€CHANCERYÌà àPlaintiffs/Appelleesà àà àà à)Ìà àà àà àà àà àà à)Ìv.à àà àà àà àà àà à)Ìà àà àà àà àà àà à)à àNO.€03A01„9511„CH„00395ÌCHEROKEE€PLACE,€et€al.,à àà à)Ìà àà àà àà àà àà à)Ìà àDefendants/Appellantsà àà à)Ìà àà àà àà àà àà à)ÌJOHN€R.€FISER,à àà àà àà à)Ìà àà àà àà àà àà à)Ìà àIntervening€Plaintiff/Appelleeà à)Ìà àà àà àà àà àà à)Ìv.à àà àà àà àà àà à)Ìà àà àà àà àà àà à)ÌCHEROKEE€PLACE,€et€al.,à àà à)à àAFFIRMED€AND€REMANDEDÌà àà àà àà àà àà à)Ìà àDefendants/Appellantsà àà à)ÌÌÌÌÌHarold€P.€Stone€and€Anna€F.€Hinds,€Stone€&€Hinds,€P.C.,€Knoxville,€For€theÏà àAppellant,€Cherokee€Place.ÌDavid€Wilson€Long,€R.€Louis€Crossley,€Jr.,€Andrew€L.€Colocotronis,€Long,€RagsdaleÏà à&€Waters,€P.C.,€Knoxville,€For€the€Appellant,€First€Tennessee€Bank€NationalÏà àAssociation.ÌKeith€McCord,€McCord,€Troutman€&€Irwin,€P.C.,€Knoxville,€For€the€Appellee,€W€&€FÏà àLand€Company.ÌGeorge€w.€Morton,€Jr.,€Morton€&€Morton,€Knoxville,€For€the€Appellee,€C.€RichardÏà àBales.ÌRaymond€E.€Lacey,€Lacey€&€Winchester,€P.C.,€Knoxville,€For€the€Appellee,€John€R.Ïà àFiser.ÌWanda€G.€Sobieski,€Sobieski,€Messer€&€Assoc.,€Knoxville,€For€the€Appellee,ÏHaresh€à àK.€Mirani.Ìœ›Ìò òòòÓ  ÓMEMORANDUM€OPINIONó óóóÌœÓ  Ó›ÌÓ  ÓINMAN,€Senior€JudgeÌœÓ  Ó›ÌÓÓò òÓ  ÓIó óÌÓ  Óà àThe€parties€to€this€litigation€are€identified€in€Appendix€One€to€this€opinion.€ÏThose€presenting€issues€for€review€are:€€W€&€F€Land€Company,€Cherokee€Place,ÏFirst€Tennessee€Bank€National€Association,€C.€Richard€Bales€and€John€R.€Fiser.Ìà àMany€of€the€issues€are€fact„driven,€requiring€a€determination€of€the€credibilityÏof€the€witnesses;€others€are€questions€of€law.€€Our€review€is€òòde€novoóó€on€the€record,Ïaccompanied€with€a€presumption€of€the€correctness€of€the€trial€courtððs€findings€ofÏfact€unless€the€evidence€preponderates€against€it.€€òòTenn.€R.€App.€P.óó€13(d).€€NoÏpresumption€of€correctness€attaches€to€issues€of€law,€òòHill€v.€Tennessee€RuralÏHealth€Improvement€œAssn›.óó,€882€S.W.2d€801€(Tenn.€Ct.€App.€1994),€but€we€defer€toÏthe€Chancellor€with€respect€to€the€credibility€of€witnesses.€€òòBowman€v.€Bowmanóó,Ï836€S.W.2D€563€(Tenn.€Ct.€App.€1991).Ìà àThis€litigation€commenced€August€4,€1992€when€W€&€F€Land€Company€andÏits€trustee€partners€filed€a€complaint€against€Cherokee€Place€and€its€partners,€theÏFirst€Tennessee€Bank€and€C.€Richard€Bales,€a€trustee€for€the€Wise€Childrenððs€Trust,Ïwho€was€allegedly€expelled€as€a€W€&€F€partner.€€A€declaratory€judgment€that€theÏdefendant€breached€a€Ground€Lease€in€various€particulars€was€sought;€theÏdefendants€filed€their€answers,€counter„claims€and€cross„claims€as€hereafterÍdescribed.€€Following€a€protracted€trial€spanning€three€months,€the€Chancellor€filedÏthree€memorandum€opinions,€to€which€we€will€refer€from€time€to€time.Ìò òÓ  ÓIIó óÌÓ  Óà àIn€1983,€Wise€and€Fiser€created€two€entities€for€investment€purposes,€withÏunusual€tax€overtones,€for€the€benefit€of€their€respective€children.€€These€entitiesÏacquired€an€abandoned€textile€factory€(Cherokee).€€One€of€the€entities€was€W€&€F,€aÏlandlord€company€which€took€title€to€the€land,€the€other€entity€was€a€tenantÏcompany,€Cherokee€Place,€which€took€title€to€the€present€and€future€improvements.€ÏWise€and€Fiser€were€equal€partners€in€the€tenant€company,€the€trustees€for€theirÏchildren€were€equal€partners€in€the€landlord€company.€€The€relationship€betweenÏthese€companies€was€governed€by€a€Ground€Lease€dated€January€1,€1983.Ìà àIn€1989€Wise€encountered€financial€difficulties€with€other€business€interestsÏand€requested€a€distribution€of€some€of€the€tenantððs€(Cherokee€Place)€assets€or€aÏpersonal€loan,€both€of€which€Fiser€refused.€€He€thereafter€sent€Wise€a€buy„sellÏletter,€pursuant€to€their€partnership€agreement,€for€Wiseððs€interest€in€CherokeeÏPlace.Ìà àWise€elected€to€purchase€Fiserððs€interest€in€Cherokee€Place€for€the€amount„„$75,000.00„„specified€in€the€letter,€plus€the€release€of€Fiser€from€their€partnershipÏdebts.€€He€arranged€the€entry€of€new€partners€into€Cherokee,€who,€with€theÏassistance€of€a€loan€from€First€Tennessee€Bank,€provided€the€necessary€capital.Ìà àThese€new€partners€were€Chalmers€and€GSM€Partnership,€whose€partnersÏwere€Haresh€K.€Mirani€and€G€&€S€Partnership,€whose€partners€were€Jeffery€R.ÍSharp€and€Gaines€C.€Walker.€€Wise€signed€an€agreement€to€form€a€partnershipÏwith€the€new€investors.€€The€Bank€advised€Wise€that€it€would€release€Fiser€from€theÏobligations€to€it€provided€the€new€investors€assumed€his€obligations€and€providedÏthat€the€landlord,€W€&€F,€agreed€to€transfer€the€Ground€Lease€from€Cherokee€PlaceÏto€the€ð ðnewðð€tenant,€also€called€Cherokee€Place.Ìà àOn€April€10,€1990,€Fiser€transferred€his€interest€in€the€tenant€company€toÏWise€pursuant€to€the€buy„sell€letter.€€He€was€thus€no€longer€involved€in€the€tenantÏcompany€(Cherokee€Place)€but€continued€to€own€a€one„half€interest€in€W€&€F,€theÏlandlord€company.€€Fiser€refused€to€assign€his€interest€to€the€new€investors,€asÏrequested,€insisting€that€he€would€only€assign€to€Wise,€who€then€concurrently,€orÏnearly€so,€assigned€the€50%€interest€to€the€new€investors.€€He€also€transferred€aÏ10%€interest€from€his€original€50%€interest€to€the€new€investors,€who€thereuponÏowned€a€60%€interest€in€Cherokee€Place.Ìà àParenthetically,€it€may€be€noted€that€at€this€juncture,€Fiser€shifted€his€focus€toÏthe€interests€of€the€landlord€company€with€an€eye€single€upon€the€debts€ofÏCherokee€Place€and€their€assumption€and€payment€by€the€new€investors€becauseÏthe€landlord€company€was€required€to€subordinate€its€interest€in€the€Ground€LeaseÏfor€the€debts€of€the€tenant€company.Ìà àA€Restated€Agreement€to€Form€a€Partnership€between€Fiser€and€the€newÏinvestors€was€effective€March€8,€1990.€€The€signatories€agreed€that€Wise€wouldÏobtain€Fiserððs€interest€for€the€òònew€investorsóó,€which€interest€would€immediately€passÏthrough€Wise€to€the€new€investors.Ìà àConcurrently€with€the€drafting€of€the€Restated€Agreement,€a€Cherokee€PlaceÏAmendment€of€Partnership€Agreement€was€drafted€by€Wiseððs€attorney,€whichÏreferenced€the€provisions€of€the€Restated€agreement€and€ð ðthat€the€originalÏpartnership€shall€not€be€dissolved€but€shall€continue€to€exist.ðð€€This€AmendmentÏfurther€provided€that€any€liability€of€GSM€or€Chalmers€would€be€satisfied€only€fromÏpartnership€assets€and,€as€against€Wise,€GSM€and€Chalmers€would€have€noÏliability€for€any€such€obligation€not€expressly€assumed.€€This€purported€amendmentÏfurther€provided€that€the€new€partners€would€assume€a€monthly€distribution€ofÏincome,€contrary€to€the€original€agreement€between€Fiser€and€Wise€that€aÏdistribution€would€be€made€if€they€agreed€to€do€so.Ìà àFiser€did€not€participate€in€the€Cherokee€Place€Amendment€of€PartnershipÏAgreement.€€Wise€and€the€new€partners€essentially€re„wrote€the€originalÏPartnership€Agreement€between€Wise€and€Fiser.€€Keeping€in€mind€that€the€flurry€ofÏpaperwork€on€April€10€and€12,€1990€was€in€effect€a€single€business€transactionÏresulting,€òòinter€aliaóó,€in€the€voluntary€divestiture€of€Fiser€of€his€entire€interest€in€theÏtenant€company.Ìà àOn€October€23,€1991,€the€new€Cherokee€Place€Partnership€requested€theÏlandlord€company€to€sign€a€subordination€agreement€to€enable€Cherokee€Place€toÏborrow€construction€funds.€€The€landlord€(Fiser)€wanted€evidence€that€the€tenantÏcompany€was€financially€sound€before€he€would€agree€to€subordination.€€TheÏGround€Lease€did€not€require€such€proof;€Fiser€and€his€attorney€were€furnished€aÏcopy€of€the€ð ðCherokee€Place€Amendment€of€Partnership€Agreementðð€of€April€12,Í1990,€who€thereupon€allegedly€learned€that€the€original€partnership€was€beingÏcontinued€contrary€to€their€asserted€belief€that€when€Fiser€sold€his€interest€theÏpartnership€was€òòipso€factoóó€dissolved.Ìà àFiser,€through€counsel,€advised€Cherokee€Place€of€his€belief€and€,€moreover,Ïthat€the€new€investors€were€assignees€under€the€Ground€Lease€and€thereforeÏpersonally€liable€for€all€debts€of€Cherokee€Place.Ìà àW€&€F€signed€the€subordination€agreement€subject€to€a€reservation€of€allÏrights€to€challenge€the€status€of€Cherokee€Place.Ìà àIn€August€1992,€Cherokee€Place€requested€that€the€landlord€company€signÏanother€subordination€agreement€to€enable€the€tenant€to€obtain€construction€funds.€ÏFiser€refused€to€do€so,€claiming€that€Cherokee€Place€was€a€new€partnership€andÏthat€the€new€investors€were€personally€liable€as€assignees€as€provided€for€in€theÏoriginal€Cherokee€Place€Partnership€Agreement.Ìà àAgain,€parenthetically,€it€should€be€noted€that€if€the€liability€of€the€newÏpartners€is€determined€under€the€original€partners,€it€remains€viable;€if€a€newÏpartnership€agreement€exists,€the€original€having€expired€when€Fiser€transferredÏhis€interest,€the€rights€of€the€partners€must€be€controlled€by€the€new€agreement.Ìà àOn€August€13,€1992,€the€W€&€F€partners€met€to€discuss€the€requestedÏsubordination,€which€had€become€a€critical€issue€with€terms€being€of€the€essence.€ÏThe€defendant€Bales,€as€trustee€for€the€Wise€Childrenððs€Trust,€was€present.€€HeÏagreed€that€subordination€by€the€landlord€was€appropriate,€while€the€trustees€forÏthe€Fiser€Childrenððs€Trusts€(H.R.€Thornton,€Jr.)€and€attorney€McCloud€opposed€it.€ÍThe€other€Fiser€trustee,€William€A.€Scruggs,€was€absent.€€He€was€contacted€byÏtelephone€and€supported€his€co„trustee,€Thornton.€€Bales,€representing€a€50%Ïinterest€in€the€landlord€partnership,€was,€after€he€left,€expelled€from€the€partnershipÏbecause€of€his€alleged€violation€of€section€16.1€of€the€Partnership€Agreement€inÏvoting€for€subordination.€€After€Bales€was€expelled,€Thornton€and€Scruggs€votedÏthat€Cherokee€Place€had€breached€the€Ground€Lease€by€attempting€to€assign€aÏpartnership€interest€to€new€partners€without€their€assumption€of€personal€liability.€ÏThey€instructed€their€attorney,€McCord,€to€notify€Cherokee€Place€of€the€allegedÏbreach€and€give€them€the€required€15€days€to€cure€the€breach€under€section€14€ofÏthe€Ground€Lease€and€to€file€this€action€for€a€declaratory€judgment.Ìò òÓ  ÓIIIó óÌÓ  Óà àThe€complaint€alleged€that€the€Ground€Lease€tenant€breached€the€lease€byÏrepudiating€personal€liability€thereunder€while€concurrently€demanding€that€theÏlandlord€execute€a€subordination€agreement.€€The€plaintiffs€further€alleged€that€theÏsubordination€agreement€and€related€loan€instruments€were€unreasonable€andÏinequitable€and€that€all€defendants€were€engaged€in€coercive€conduct€calculated€toÏenrich€them€and€were€perpetrating€a€fraudulent€scheme.€€The€plaintiffs€sought€(1)€aÏdeclaratory€judgment€of€the€rights€of€the€parties€under€the€Ground€Lease;€(2)€toÏhave€the€ð ðnew€partnershipðð€declared€a€tenant€by€assignment€pursuant€to€paragraphÏ10€of€the€Ground€Lease;€(3)€a€declaration€that€W€&€F€was€not€obligated€toÏsubordinate€ð ðexcept€under€reasonable€terms€and€conditionsðð;€(4)€damages€andÏattorneyððs€fees.Ìà àThe€defendant€Bales€answered€that€W€&€F,€the€landlord,€had€no€authority€toÏfile€this€action€because€he€controlled€a€50%€interest€in€W€&€F€and€did€not€consent€toÏthe€litigation€and€filed€a€counter„claim€for€indemnification€and€accounting.€€HeÏdenied€the€right€of€the€co„partners€to€expel€him€from€the€partnership.Ìà àThe€defendant€Chalmers€filed€an€answer,€counter„claim€and€cross„claimÏessentially€claiming€that€he€and€the€other€individual€defendants€became€substituteÏpartners€in€Cherokee€Place€and€sought€a€declaration€that€the€original€partnershipÏhad€not€been€terminated€but€continued€to€be€a€tenant€under€the€Ground€Lease.€€AsÏadditional€relief,€he€sought€a€declaration€that€(1)€the€Ground€Lease€permittedÏacceleration€of€the€debt€payment€by€the€lender€in€the€event€Cherokee€defaultedÏwith€the€landlord€having€no€right€to€cure€the€default€except€full€payment€of€the€debt;Ï(2)€the€landlord€could€not€ð ðcureðð€certain€defaults;€(3)€terms€of€loans€might€beÏextended€beyond€the€term€of€the€Ground€Lease;€()€the€landlord€be€required€toÏexecute€a€general€power€of€attorney€authorizing€the€tenant€to€execute€all€futureÏsubordination€agreements€on€behalf€of€the€landlord.Ìà àThe€ð ðnew€partnershipsðð€filed€an€answer,€counter„claim€and€cross„claimÏadopting€the€pleadings€of€Chalmers€and€sought€damages€against€the€landlord€forÏfailure€to€execute€the€subordination€agreement€in€a€timely€manner.Ìà àFirst€Tennessee€Bank€was€deemed€a€necessary€party,€although€no€reliefÏwas€sought€against€it.€€It€belatedly€filed€an€ð ðapplication€for€a€declaratory€judgmentððÏon€the€eve€of€trial€alleging€that€the€ð ðnew€partnershipðð€was€a€continuation€of€theÍassigned€Cherokee€Place€partnership€and€sought€a€declaratory€judgmentÏconsonant€with€that€sought€by€the€other€defendants.Ìà àFiser€was€allowed€in€the€case€as€intervenor.€€He€sought€specific€s€of€the€saleÏof€his€partnership€interest€and€recovery€of€attorneyððs€fees€and€expenses.Ìò òÓ  ÓIVó óÌÓ  Óà àThe€Chancellor€ruled€that:Ìà0 à(1)€€The€lessor„landlord€was€required€by€the€provisions€of€the€Ground€LeaseÏto€subordinate€the€fee€to€mortgages€executed€by€the€tenant€for€constructionÏon€the€premises;Ìà0 à(2)€To€the€extent€that€the€tenant€defaulted€in€its€obligations€to€the€lenderÏresulting€in€an€acceleration€as€a€prelude€to€foreclosure,€the€landlord€had€60Ïdays€within€which€to€cure€such€default;Ìà0 à(3)€The€tenant€cannot€contract€for€a€loan€whose€term€extends€beyond€theÏterm€of€the€lease;Ìà0 à(4)€Cherokee€Place€(the€tenant)€is€a€continuation€of€the€original€partnership;Ìà0 à(5)€The€new€partners€have€no€personal€liability€under€the€Ground€Lease;Ìà0 à(6)€The€landlord€committed€no€breach€of€contract€in€refusing€to€execute€aÏsubordination€agreement€in€August€1992;Ìà0 à(7)€The€subordination€agreement€executed€by€the€landlord€in€February€1993Ïwas€reasonable€and€appropriate;Ìà0 à(8)€The€tenant€did€not€breach€its€obligations€under€the€ground€lease;Ìà à(9)€that€Wise€is€not€liable€for€the€attorney€fees€of€Fiser;Ìà0 à(10)€In€the€event€First€Tennessee€Bank€gives€written€notice€of€a€default€byÏCherokee€Place,€the€landlord€has€60€days€to€cure€the€default€by€making€theÏpayments€in€arrears,€ð ðprovided€that€the€landlord€gives€the€tenant€10€daysÏafter€written€notice€is€sent€to€cure€within€such€10„day€period€prior€to€landlordÏcuring€the€default;ððÌà0 à(11)€The€landlordððs€fee€is€security€for€all€existing€loans€owing€by€the€tenant€toÏFirst€Tennessee€Bank;Ìà0 à(12)€That€the€purported€expulsion€of€Bales,€Trustee€for€the€Wise€ChildrenððsÏTrust,€was€ineffective;Ìà0 à(13)€That€the€Wise€Childrenððs€Trust€may€not€expel€the€Fiser€Childrenððs€TrustÏfrom€the€W€&€F€Land€Company;Ìà0 à(14)€That€the€W€&€F€Land€Company€can€no€longer€function€as€a€partnershipÏand€is€dissolved€pursuant€to€òòTenn.€Code€Ann.€ððóó€61„1„131;Ìà0 à(15)€The€Wise€Childrenððs€Trust€is€entitled€to€an€accounting€from€the€W€&€FÏLand€Company.Ìò òÓ  ÓVÌÓ  Óó óà àà àWe€first€consider€the€issues€propounded€by€the€plaintiff.€€These€issuesÏare,€òòin€haec€verba:ÌÓÓà0 àóóI.€€THE€TRIAL€COURT€ERRED€AS€A€MATTER€OF€LAW€IN€FAILING€TOÏAPPLY€CARDINAL€RULES€APPLICABLE€TO€THE€INTERPRETATION€OFÏUNAMBIGUOUS€CONTRACTS€BUT,€INSTEAD,€IGNORED€CONTRACTÏPROVISIONS,€CREATED€NEW€CONTRACTS,€MISCONSTRUEDÏCONTRACT€PROVISIONS€AND€FAILED€TO€ENFORCE€THE€CONTRACT€ASÏWRITTEN.ÌÌà0 àII.€€THE€TRIAL€COURT€ERRED€AS€A€MATTER€OF€LAW€IN€FAILING€TO€BASEÏITS€FINDINGS€AND€CONCLUSIONS€UPON€THE€UNDISPUTED,ÏMATERIAL,€RELEVANT€AND€ADMISSIBLE€EVIDENCE€BUT,€INSTEAD,ÏMADE€FINDINGS€AND€CONCLUSIONS€BASED€UPON€ARGUMENTS,ÏOPINIONS,€POSITIONS,€IMPROPER€INFERENCES,€SUPPOSITION,ÏCONJECTURE€AND€IMPRESSIONS€NOT€SUPPORTED€BY€ANYÏMATERIAL,€RELEVANT€OR€ADMISSIBLE€EVIDENCE.ÌÌà0 àIII.€€THE€TRIAL€COURT€ERRED€AS€A€MATTER€OF€LAW€IN€FAILING€TOÏHOLD€THAT€THE€DEFENDANT,€CHEROKEE€PLACE€PARTNERSHIP,€WASÏA€TENANT€BY€ASSIGNMENT€PURSUANT€TO€SECTIONS€10€AND€10.14ÏOF€THE€GROUND€LEASE:ÌÌà0 àà0 àA.€€THE€TRIAL€COURT€ERRED€AS€A€MATTER€OF€LAW€IN€FAILINGÏTO€HOLD€THAT€A€PARTNERSHIP€FORMED€BY€JOHN€FISER€ANDÏWALTER€WISE€ON€DECEMBER€1,€1982,€WAS€TERMINATED€AS€OFÏAPRIL€10,€1990.ÌÌà0 àà0 àB.€€THE€TRIAL€COURT€ERRED€AS€A€MATTER€OF€LAW€IN€FAILINGÏTO€HOLD€THAT€DEFENDANTS€WISE,€CHALMERS€AND€GSMÏFORMED€A€NEW€PARTNERSHIP€NAMED€CHEROKEE€PLACE€ONÏAPRIL€12,€1990,€AND€ERRONEOUSLY€CONCLUDED€THAT€THEÏNEW€PARTNERSHIP€WAS€A€CONTINUATION€OF€THE€ORIGINALÏCHEROKEE€PLACE€PARTNERSHIP€WITH€CHALMERS€AND€GSMÏBECOMING€SUBSTITUTE€PARTNERS.ÌÌà0 àà0 àC.€€THE€TRIAL€COURT€ERRED€AS€A€MATTER€OF€LAW€IN€HOLDINGÏTHAT€WISE,€THE€ONLY€PARTNER€WITH€FISER€IN€THE€ORIGINALÏCHEROKEE€PLACE€PARTNERSHIP,€AFTER€ACQUIRING€FISERððSÏINTEREST€IN€THE€PARTNERSHIP€PURSUANT€TO€A€BUY„SELLÏAGREEMENT,€TRANSFERRED€A€PART€OF€HIS€100%€INTEREST€TOÏCHALMERS€AND€GSM,€WHO€THEN€BECAME€SUBSTITUTEÏPARTNERS€IN€THE€ORIGINAL€TERMINATED€PARTNERSHIP.ÌÌà0 àà0 àD.€€THE€TRIAL€COURT€ERRED€AS€A€MATTER€OF€LAW€IN€FAILINGÏTO€HOLD€THAT€THE€CONTRACTUAL€TERMS,€PROVISIONS€ANDÏADMISSIONS€CONTAINED€IN€THE€DEED€OF€TRUST€ANDÏSUBORDINATION€AGREEMENT€DATED€APRIL€8,€1991€(R.€EX.€6)ÏWERE€NOT€ENFORCEABLE€AND€BINDING€ON€THE€PARTIESÏTHERETO.ÌÌà0 àIV.€€THE€TRIAL€COURT€ERRED€AS€A€MATTER€OF€LAW€IN€HOLDING€THATÏSECTION€7€OF€THE€GROUND€LEASE€(R.€EX.€12)€MANDATORILYÏOBLIGATES€THE€LANDLORD€TO€HAVE€A€DEED€OF€TRUST€LIEN€PLACEDÏON€ITS€FEE€INTEREST€IN€THE€PROPERTY€TO€SECURE€TENANTÏFINANCING€FOR€LEASEHOLD€IMPROVEMENTS€AND€CONSTRUCTION:ÌÌà0 àà0 àA.€€THE€TRIAL€COURT€ERRED€AS€A€MATTER€OF€LAW€IN€FAILINGÏTO€HOLD€THAT€THE€SUBORDINATION€PROVISIONS€IN€SECTION€7ÏOF€THE€GROUND€LEASE€ARE€UNENFORCEABLE€FOR€LACK€OFÏDEFINITENESS.ÌÌà0 àà0 àB.€€THE€TRIAL€COURT€ERRED€AS€A€MATTER€OF€LAW€INÏCONSTRUING€THE€CLAUSE€ð ðTHIS€LEASE€SHALL€BE€SUBJECTÏAND€SUBORDINATE€TO€THE€LIEN€OF€ANY€MORTGAGE€.€.€.€.ðð€INÏSECTION€7.01€OF€THE€GROUND€LEASE€TO€MEAN€THAT€W€&€FÏWAS€REQUIRED€TO€ENCUMBER€ITS€FEE€INTEREST€IN€THEÏPROPERTY€TO€SECURE€TENANT€LOANS.ÌÌà0 àà0 àC.€€THE€TRIAL€COURT€ERRED€AS€A€MATTER€OF€LAW€INÏINCONSISTENTLY€HOLDING€THAT€THE€1993€SUBORDINATIONÏAGREEMENT€AND€LOAN€DOCUMENTS€WERE€REASONABLE€ANDÏENFORCEABLE€AGAINST€W€&€F€WHILE,€AT€THE€SAME€TIME,ÏHOLDING€THAT€THE€DOCUMENTS€DID€NOT€COMPLY€WITH€THEÏPROVISIONS€OF€THE€GROUND€LEASE€AND€PARTIALLY€MODIFIEDÏTHE€DOCUMENTS€IN€AN€ATTEMPT€TO€MAKE€THEM€COMPLYÏWITH€W€&€FððS€RIGHTS€UNDER€THE€GROUND€LEASE.ÌÌà0 àà0 àD.€€THE€TRIAL€COURT€ERRED€IN€PERMITTING€THE€DEFENDANTSÏAND€THE€BANK€TO€RELEASE€THE€APRIL€8,€1991€DEED€OF€TRUSTÏ(R.€EX.€6)€AND€REPLACE€IT€BY€THE€1993€SUBORDINATIONÏAGREEMENT€(R.€EX.€148)€AND€RELATED€LOAN€DOCUMENTS.ÌÌà0 àV.€€THE€TRIAL€COURT€ERRED€AS€A€MATTER€OF€LAW€IN€HOLDING€THATÏTHE€EXPULSION€OF€BALES€AS€A€PARTNER€IN€W€&€F€ON€AUGUST€13,Ï1992,€PURSUANT€TO€EXPLICIT€PROVISIONS€OF€THE€W€&€fÏPARTNERSHIP€AGREEMENT€WAS€INEFFECTIVE.ÌÌà0 àà0 àA.€€IN€HOLDING€THAT€BALES€REMAINED€A€PARTNER€IN€W€&€F,ÏAND€WAS€NOT€EXPELLED,€THE€TRIAL€COURT€ERRED€AS€AÏMATTER€OF€LAW€BY€IGNORING€AND€FAILING€TO€INTERPRET€THEÍCONTRACT€AS€WRITTEN€AND€THE€PROVISIONS€OF€THEÏUNIFORM€PARTNERSHIP€ACT€AT€òòTenn.€Code€Ann.€ððóó€61„1„130.ÌÌà0 àà0 àB.€€THE€TRIAL€COURT€ERRED€AS€A€MATTER€OF€LAW,€ANDÏINCONSISTENT€WITH€ITS€RULING€THAT€THE€EXPULSION€OFÏBALES€WAS€INEFFECTIVE,€BY€DISSOLVING€THE€W€&€fÏPARTNERSHIP€AT€THE€CONCLUSION€OF€THE€TRIAL.ÌÌà0 àà0 àC.€€THE€TRIAL€COURT€ERRED€AS€A€MATTER€OF€LAW€IN€HOLDINGÏTHAT€UPON€DISSOLUTION€OF€THE€W€&€F€PARTNERSHIP,€THEÏPARTNERS€OF€W€&€F€EACH€OWNED€AN€UNDIVIDED€INTEREST€INÏTHE€W€&€F€PROPERTY€AS€TENANTS€IN€COMMON€AND€WOULD€BEÏREQUIRED€TO€ENCUMBER€THEIR€RESPECTIVE€FEE€INTEREST€INÏTHE€PROPERTY€TO€SECURE€FUTURE€LOANS€OF€THE€TENANT.ÌÌà0 àVI.€€THE€TRIAL€COURT€ERRED€AS€A€MATTER€OF€LAW€IN€FAILING€TOÏAWARD€W€&€F€EXPENSES€AND€ATTORNEY€FEES€PURSUANT€TOÏSECTIONS€14.04€AND€15€OF€THE€GROUND€LEASE.ÌÌà0 àVII.€€THE€TRIAL€COURT€ERRED€AS€A€MATTER€OF€LAW€IN€DISMISSINGÏPLAINTIFFððS€CLAIM€FOR€FRAUD€AND€CONSPIRACY€AGAINST€THEÏDEFENDANTS€AND€BALES€AND€ABUSED€ITS€DISCRETION€IN€FAILINGÏTO€APPLY€THE€DOCTRINE€OF€ð ðUNCLEAN€HANDSðð€AS€A€BAR€TO€ANYÏRELIEF€BY€THE€DEFENDANTS€AND€BALES€UNDER€THEIR€RESPECTIVEÏCOUNTERCLAIMS.ÌÌà àIssues€one€and€two€are€œexegetical›.ÌÌÓÓà àIssues€Three€(A),€(B),€(C),€(D)€and€Four€(A),€(B),€(C),€(D)€will€be€discussedÏcollectively.Ìà àPlaintiffs€argue€that€the€Cherokee€Place€Partnership€was€dissolved€as€aÏmatter€of€law€on€February€8,€1990,€and€that€the€findings€of€the€Chancellor€directedÏto€this€issue€are€undisputed.€€These€findings€are:ÌÒ  ÒÒ „ ÒÒ  ÒÒ r ÒÓÓÓ  Ó€à àð ðIn€early€1990,€Mr.€Fiser€decided€to€exercise€his€rights€under€aÏprovision€in€the€Cherokee€Place€partnership€agreement€[SectionÏ7.04]€which€has€been€identified€by€all€the€parties€during€this€litigationÍas€a€put€provision.€€The€put€provision€provided€a€means€for€theÏCherokee€Place€partners€to€disassociate€themselves,€if€one€or€theÏother€of€them€decided€to€do€so.€€IN€exercising€the€put€provision,€Mr.ÏFiser€gave€notice€by€letter€(R.€Ex.€14)€to€Mr.€Wise€in€March€[sic€„ÏFebruary]€of€1990€that€he€(Fiser)€would€sell€or€buy€one„half€of€theÏpartnership€for€$75,000.00,€plus€the€selling€partner€was€to€beÏrelieved€from€his€guaranty€obligations€to€the€Bank.€€The€put€letterÏhaving€been€delivered€to€Mr.€Wise,€Mr.€Wise€then€had€the€choice€ofÏeither€selling€his€one„half€interest€in€the€Cherokee€Place€PartnershipÏto€Mr.€Fiser€for€$75,000.00€and€having€Mr.€Fiser€arrange€to€have€himÏ(Mr.€Wise)€relieved€from€his€obligation€to€the€Bank,€or€the€choice€ofÏpurchasing€Mr.€Fiserððs€one„half€interest€for€$75,000.00,€andÏarranging€to€have€Mr.€Fiser€relieved€from€his€(Mr.€Fiserððs)€obligationÏto€the€Bank.Ìà àMr.€Wise€exercised€his€right€[R.€Ex.€15]€under€the€put€toÏpurchase€Mr.€Fiserððs€interest€for€$75,000.00,€and€arranging€to€haveÏMr.€Fiser€released€from€liability€to€the€Bank.€€That€exercise€of€rightsÏby€Mr.€Wise€was€carried€out,€and€completed€sometime€in€April€ofÏ1990,€when€the€transaction€closed€and€Mr.€Fiser€signed€over€hisÏinterest€in€the€partnership€[R.€Ex.€22].ðð€€òòId.óó€at€615.ÌÌà à*à àà à*à àà àà à*à àà àà à*à àà àà àÌà àð ðThus,€when€the€purchase€of€Mr.€Fiserððs€interest€wasÏcompleted,€Mr.€Fiser€received€$75,000.00€and€was€relieved€fromÏliability€to€the€Bank,òò€òòóóand€Mr.€Wise€had€acquired€Mr.€Fiserððs€interest.ððóó€ÏòòId.óó€€at€616.ÌÌà à*à àà àà à*à àà àà à*à àà àà à*ÌÌà àð ðBefore€the€put€transaction€closed,€Mr.€Wise€asked€Mr.€Fiser€toÏconvey€his€partnership€interest€directly€to€the€new€partners,€and€Mr.ÏFiser€refused€to€do€so.€€Mr.€Fiser€said€he€would€only€proceed€with€theÏput€transaction€as€provided€in€his€put€letter€[R.€Ex.€14].€€Thus,€in€theÏclosing€transaction,€the€documents€Mr.€Fiser€signed€òòtransferred€hisÏone„half€interest€directly€to€Mr.€Wise.ÌÌóóà à*à àà àà à*à àà àà à*à àà àà à*ÌÌà àð ðMr.€Fiser€insisted€on€carrying€out€the€put€as€set€forth€in€his€putÏletter€òòand€it€was€carried€out€that€way.ððóó€€òòId.óó€at€617.ÌÌÒ  ÒÒ r ÒÒ  ÒÒ Ï ÒÓÓÓ  Óà àThus€the€plaintiffs€conclude€that€since€Wise€became€„€albeit€for€a€moment€„Ïthe€100%€owner€of€Cherokee€Place€Partnership,€the€partnership€was€dissolved€asÏa€matter€of€law€under€the€partnership€agreement€and€the€Uniform€PartnershipÏLaw.€€òòTenn.€Code€Ann.€ððóó€61„1„128€defines€dissolution€of€a€partnership€as€follows:ÌÒ  ÒÒ Ï ÒÒ  ÒÒ ½ ÒÓÓÓ  Óà0 àð ðThe€dissolution€of€a€partnership€is€the€change€in€the€relationÏof€the€parties€caused€by€any€partner€ceasing€to€be€associatedÏin€the€carrying€on€as€distinguished€from€the€winding€up€of€theÏbusiness.ððà àÌÒ  ÒÒ ½ ÒÒ  ÒÒ Ï ÒÓÓÓÓÓ  Óà àÌÓÓà àAllied€with€the€statute€is€òòTenn.€Code€Ann.€ððóó€61„1„130,€which€provides€that€aÏdissolution€is€caused€by€(1)€the€termination€of€the€term€or€particular€undertaking,€orÏ(2)€the€express€will€of€any€partner€when€no€term€or€undertaking€is€specified,€andÏ(3)€other€causes€not€here€relevant.Ìà àWe€concur€in€the€Chancellorððs€findings€that€the€substitution€andÏcontinuation€of€the€partnership€is€contemplated€by€the€Agreement,€as€reinforcedÏby€the€Memorandum€of€Partner€Withdrawal,€executed€by€Fiser,€which€declares€thatÏhe€had€withdrawn€as€a€partner€in€Cherokee€Place,€clearly€signifying€as€theÏdefendants€argue,€that€Cherokee€Place€continued€as€a€viable€partnership€withÏnew€partners.€€See,€òòe.g.,óó€òòœCowan›€v.€œMaddin›,€óó786€S.W.2D€647€(Tenn.€Ct.€App.Ï1989).€€Moreover,€Fiser€and€Wise€executed€another€agreement€when€the€buy„sellÏtransaction€was€finalized;€this€agreement€provided€that€ð ð[It]€shall€be€binding€uponÏand€inure€to€the€benefit€of€the€parties€hereto€and€their€respective€heirs,€legalÏrepresentatives,€successors€and€assigns€the€Partnership€and€Partners€of€theÏPartnership.ððÌà àFiser€testified,€in€fact,€that€he€had€assumed€when€he€made€the€ððputðð€offer€toÏWise€that€Wise€would€bring€in€new€partners.€€The€defendants€insist€that€FiserÏcannot€now€complain€that€he€was€unaware€of€Wiseððs€intent€with€regard€toÏsubstituted€partners,€and€we€agree.€€The€defendants€further€insist€that€the€ð ðnewÏpartnershipðð€theory,€advanced€three€years€after€the€fact,€is€only€a€ruse.Ìà àAfter€the€put€letter€was€delivered€to€Wise,€he€and€the€new€investorsÏexecuted€a€contract€whereby€the€original€Cherokee€Place€Partnership€wasÏcontinued€in€lieu€of€the€creation€of€a€new€partnership.€€As€the€ChancellorÏobserved,€the€significance€of€this€is€found€in€the€claim€of€W€&€F€and€Fiser€that€aÏnew€partnership€resulted€in€an€assignment€to€it€of€the€ground€lease€interest€ofÏCherokee€Place,€and€the€new€partners€became€personally€liable€to€the€landlordÏfor€ground€lease€obligations.Ìà àThe€original€Partnership€Agreement€provided:ÌÒ  ÒÒ ½ ÒÓÓÓ  Óà0 à6.02€òòContinuation.óó€€The€Partnership€shall€continue€as€long€as€theÏpartnership€owns€and€manages€the€projects€developed€or€acquiredÏby€it,€and€thereafter€until€such€time€as€the€parties€agree€to€aÏtermination,€provided,€however,€that€the€partnership€may€beÏterminated€at€any€time€upon€the€agreement€to€do€so€of€the€partiesÏwhose€aggregate€partnership€percentages€are€no€less€than€66„2/3%.ÌÌÒ  ÒÒ Ï ÒÓÓÒ  ÒÒ  ÒÓ  Óà àThere€is€no€evidence€in€this€record€that€a€termination€or€a€corollaryÏdistribution€of€assets€was€ever€contemplated€at€the€time€of€the€buy„sellÏagreement.€€We€cannot€square€the€provision€that€the€partnership€shall€continueÏas€long€as€the€partnership€owns€and€manages€the€projects€developed€orÍacquired€by€it,€and€all€parties€agree€that€this€was€the€case.€€The€Chancellor€foundÏthat€the€partnership€continued€as€contemplated€in€the€original€agreement,€aÏfinding€with€which€we€concur.€€While€Fiser€argues€that€he€did€not€intend€that€theÏpartnership€continue€„€as€evidenced€by€the€fact€that€he€refused€to€convey€hisÏinterest€to€the€new€partners€„€there€is€no€evidence€that€he€expressed€such€anÏintent.€€The€Chancellor€found,€by€implication,€that€Fiser€was€surprised€by€WiseððsÏdecision€to€buy,€rather€than€sell,€and€thereafter€did€whatever€he€could€to€avoid€theÏfacilitation€of€the€transaction.€€The€plaintiffs€strenuously€argue€that€theÏChancellorððs€findings€are€contrary€to€the€evidence€and€the€documentation.€€We€doÏnot€agree.Ìà àSince€Wise€had€no€personal€liability€as€provided€in€the€ground€lease,€itÏfollows,€as€the€Chancellor€held,€that€the€new€partners€likewise€have€no€personalÏliability.Ìà àIssues€4(A),€(B)€and€(C)€will€be€considered€together.€€The€plaintiffs€object€toÏthe€ground€lease€requirement€that€their€fee€title€must€be€subordinated€to€the€lienÏof€any€mortgage€the€tenant€tenders€to€a€lender€for€construction€funds.€€Aside€fromÏthe€fact€that€this€objection€partakes€of€obstructionism,€since€the€tenant„lesseeÏcould€not€develop€the€project€and€further€the€interests€of€all€concerned,€includingÏthe€landlord,€the€Ground€Lease€clearly€provides€for€such€subordination€and€weÏsee€no€point€in€belaboring€the€point.€€We€concur€in€the€Chancellorððs€findings€onÏthis€issue.Ìà àIssue€5€involves€the€attempted€expulsion€of€Bales,€Trustee€for€the€WiseÏChildrenððs€Trust,€from€the€W€&€F€Partnership.€€This€action€was€punitive€in€nature,Ïand€seemingly€reactionary€to€Balesðð€opinion€that€the€landlord€should€subordinateÏthe€fee€to€a€mortgage.Ìà àThe€Partnership€Agreement€provides€that:ÌÒ  ÒÒ  ÒÓÓÓ  Óà0 àà0 à16.01.à àDefaulting€Events.€€In€the€event€any€partner€.€.€.€(vi)€isÏresponsible€for€any€act€.€.€.€which€would€justify€a€decree€ofÏdissolution€of€the€Partnership€under€the€laws€of€the€State€ofÏTennessee€(a€defaulting€event)€.€.€.€and€in€the€event€theÏPartnership€is€continued€by€the€non„defaulting€partners,Ïunder€Section€19.01(d)€.€.€.€then€the€Partnership,€in€additionÏto€any€other€remedy€that€it€may€have€at€law€or€in€equityÏagainst€the€defaulting€partner,€may€elect€to€liquidate€theÏentire€interest€in€the€partnership€of€the€defaulting€partner.€ÏAny€such€election€.€.€.€shall€be€made€by€the€Partnership,Ïgiving€written€notice€of€such€election€to€the€defaultingÏpartner€within€such€60„day€period.€€If€the€Partnership€electsÏhereunder€to€liquidate€the€defaulting€partnerððs€entireÏinterest€in€the€Partnership,€the€liquidation€price€of€suchÏinterest€shall€be€determined€and€paid€in€the€manner€andÏupon€the€same€terms€and€conditions€provided€in€Section€7Ïhereof€.€.€.€.ÌÌÒ  ÒÒ Ï ÒÓÓÓ  Óà àThe€Chancellor€minced€no€words€in€finding€that€Bales€weighed€hisÏresponsibilities€as€a€Trustee€and€acted€appropriately€to€protect€not€only€theÏinterests€of€the€Wise€children€but€the€interests€of€the€W€&€F€Land€Company,€andÏhis€attempted€expulsion€was€ineffective.€The€plaintiff€argues€that€the€ChancellorÏheld€that€while€W€&€F€and€the€remaining€partners,€Scruggs€and€Thornton,€had€theÏright€to€expel€Bales€under€the€Partnership€Agreement,€his€expulsion€would€resultÍin€a€forfeiture.€€We€do€not€so€interpret€the€Chancellorððs€opinion;€he€held,€simplyÏstated,€that€Bales€had€acted€prudently€and€nothing€he€did€justified€his€ouster.Ìà àIn€connection€with€the€issue€of€the€purported€expulsion€of€Bales,€theÏplaintiffs€argue€that€the€Chancellor€erred€in€holding€that€upon€the€dissolution€of€theÏW€&€F€Partnership€the€partners€thereupon€owned€an€undivided€interest€in€the€W€&ÏF€property€as€tenants€in€common€and€would€be€required€to€encumber€suchÏinterest€as€security€for€future€loans.€€We€concur€in€this€finding.Ìà àWe€are€uncertain€of€the€plaintiffsðð€argument€directed€to€the€judicialÏdissolution€of€the€Partnership.€€They€argue€that€their€expulsion€of€Bales€dissolvedÏthe€partnership;€they€also€argue€that€the€transfer€by€Fiser€of€his€interest€to€WiseÏdissolved€the€partnership,€but€are€somehow€critical€of€the€judicial€dissolution€of€it.€ÏThere€is€little€doubt€that€the€dissolution€ordered€by€the€Chancellor€was€eminentlyÏcorrect;€neither€is€there€doubt€that,€pending€further€decisions€by€the€formerÏpartners,€they€continue€to€own€the€property€as€tenants€in€common.Ìà àIssue€6€complains€of€the€refusal€of€the€Chancellor€to€award€W€&€F€itsÏexpenses€and€attorney€fees.Ìà àThe€ground€lease€provides€that:ÌÒ  ÒÒ ½ ÒÓÓÓ  Óà0 àà à14.04€òòLessorððs€Expenses.óó€€If€Lessee€shall€at€any€time€be€inÏdefault€hereunder,€and€if€Lessor€shall€deem€it€necessary€to€engageÏattorneys€to€enforce€Lessorððs€rights€hereunder,€the€determination€ofÏsuch€necessity€to€be€in€the€sole€discretion€of€the€Lessor,€LesseeÏwill€reimburse€Lessor€for€the€reasonable€expenses€incurredÏthereby,€including€but€not€limited€to€court€costs€and€reasonableÏattorneyððs€fees.€€If€Lesseeððs€rights€hereunder€are€not€terminated,€theÏamount€of€such€expenses€shall€be€deemed€to€be€additional€rentÍhereunder€and€shall€forthwith€be€due€and€payable€by€Lessee€toÏLessor.ÌÌà0 àà à15.€€òòRemedies.Ìà0 àà àà àóóIn€addition€to€the€other€remedies€herein,€it€is€intendedÏand€agreed€to€by€both€parties€that€if€a€court€determines€there€hasÏbeen€a€breach€of€this€Lease,€the€defaulting€or€breaching€party€shallÏbe€obligated€to€pay€the€other€partyððs€attorneyððs€fees,€provided€thisÏprovision€shall€not€affect€the€limitations€of€the€partiesðð€liability€as€setÏforth€elsewhere€herein.ÌÌÒ  ÒÒ Ï ÒÓÓÓ  Óà àThe€Chancellor€declined€to€order€the€Lessee€(Cherokee€Place)€to€pay€theÏLessorððs€(Landlord)€attorney€fees€and€expenses,€holding€by€implication€that€theÏLessee€was€never€in€default,€on€the€one€hand,€and€questioning€the€right€of€theÏtrustees€of€the€Fiser€Childrenððs€Trust€to€engage€counsel€for€the€Partnership€andÏcommence€this€action,€on€the€other.€€From€all€of€the€circumstances€presented€inÏthis€record€we€pronounce€our€concurrence€with€the€judgment€of€the€Chancellor€onÏthe€issue€of€attorney€fees.Ìà àIssue€7€claims€error€because€the€Chancellor€failed€to€find€fraud€andÏconspiracy€by€the€defendants€or€to€apply€the€doctrine€of€unclean€hands.€€Suffice€toÏstate€that€we€have€reviewed€this€record€carefully€and€find€no€justiciable€evidenceÏof€fraud€or€conspiracy€on€the€part€of€the€defendants.Ìò òÓ  ÓVIÌÓ  Óà àó óCherokee€Place€presents€for€review€two€issues:€(1)€Whether€the€refusal€ofÏthe€landlord€to€subordinate€its€fee€interest€in€1992€was€a€breach€of€the€groundÏlease,€and€(2)€Whether€the€Chancellor€erred€in€holding€that€Cherokee€Place€couldÏnot€mortgage€beyond€the€term€of€the€ground€lease.Ìà àThe€Chancellor€found€that€under€the€Ground€Lease,€the€landlord€had€theÏobligation€to€subordinate€the€fee€to€a€mortgage€by€the€tenant.€€One€of€the€loanÏdocuments€provides:ÌÒ  ÒÒ ½ ÒÓÓÓ  Óà0 àc.€€The€parties€hereto€stipulate€and€agree€that€the€language€used€inÏParagraph€4(b)€above€is€consistent€with€the€provisions€of€theÏLease.€€However,€Landlord€and€Borrower€recognize€that€LenderÏinterprets€such€language€to€permit€Lender€to€accelerate€the€LoanÏindebtedness€and,€except€with€respect€to€exercising€its€right€ofÏforeclosure€under€the€Deed€of€Trust,€to€exercise€all€other€remediesÏavailable€to€Lender€upon€Borrower€committing€a€default€under€theÏloan.ÌÌÓÓÓ  ÓBut€as€the€Chancellor€observed,€ÌÓÓÓ  Óà0 àð ðAs€can€be€seen€this€provides€that€the€Landlord€(W€&€F)€and€theÏBorrower€(Cherokee€Place)€recognize€that€the€lending€BankÏinterprets€the€ground€lease€to€allow€acceleration€upon€default.€€TheÏevidence€disclosed€that€the€parties€understood€this€to€mean€thatÏupon€acceleration€W€&€F€could€only€cure€and€take€over€CherokeeÏPlaceððs€position€by€paying€the€entire€balance€due€on€the€loan€atÏonce.€€W€&€Fððs€position,€which€was€held€at€trial€to€be€substantiallyÏcorrect,€was€that€it€could€cure€by€paying€monthly€payments€inÏdefault,€and€then€continue€in€Cherokee€Placeððs€shoes€makingÏmonthly€payments€on€the€loan€balance,€not€having€to€pay€the€entireÏbalance€at€once.€€While€paragraph€œ4c›.€did€not€state€that€theÏinterpretation€of€the€Bank€was€correct,€it€could€be€forcefully€arguedÏthat€inasmuch€as€there€was€no€other€interpretation€than€that€of€theÏBank€in€œ4c.›,€that€W€&€F€had€abandoned€its€position.€€Thus,€theÏtendered€paragraph€does€not€reflect€the€fact€that€a€serious€disputeÏexisted,€and€that€W€&€F€contested€the€interpretation€in€œ4c›.€€The€loanÏdocument€should€have€either€reflected€the€dispute€in€someÏbalanced€way,€or€not€addressed€the€matter€at€all.€€W€&€F€did€notÏhave€to€accept€the€provision€as€tendered,€and€so€W€&€Fððs€failure€toÏsign€the€loan€documents€containing€paragraph€œ4c›.€was€not€aÏbreach.ÌÌà0 àà àParagraph€œ21c›.€of€Exhibit€œ83A›€of€the€1992€loan€documentÏprovides:ÌÌÒ  ÒÒ  Òà0 àà0 àc.€€This€Agreement€pertains€only€to€loans€that€matureÏno€later€than€the€term€of€the€Lease€(as€extended)Ïunless€the€prior€written€consent€of€Landlord€to€a€loanÏwith€a€longer€term€is€obtained€such€consent€not€to€beÏunreasonably€withheld€or€delayed.ÌÌÒ  ÒÒ S Òà0 àThe€effect€of€this€provision€would€have€been€to€obligate€W€&€F€toÏsubordinate€its€fee€interest€to€loans€and€their€securities€runningÏbeyond€the€term€of€the€ground€lease,€perhaps€far€beyond.€€W€&€FÏfelt€that€this€would€permit€Cherokee€Place€to€heavily€obligate€W€&ÏFððs€fee€interest,€and€possibly€distribute€assets€to€its€partnersÏleaving€W€&€F€to€pay€for€them.€€Such€an€outcome€would€not€haveÏbeen€without€possibility.€€At€trial€it€was€ruled€that€under€the€termsÏof€the€ground€lease€the€fee€interest€of€W€&€F€could€not€be€requiredÏto€be€to€a€mortgage€beyond€the€term€of€the€lease.€€Thus,€W€&€FððsÏfailure€to€sign€the€1992€loan€documents€containing€provision€œ21c›.Ïdid€not€constitute€a€breach€by€W€&€F.ððÌÌÒ  ÒÒ Ï ÒÓÓÓ  Óà àWe€concur€in€this€finding.€€We€also€agree€with€the€conclusion€that€theÏlandlord€could€not€be€required€to€subordinate€its€fee€estate€beyond€the€term€of€theÏlease.€€Cherokee€Place€argues€that€the€ground€lease€does€not€explicitly€prohibitÏthe€landlord€from€doing€so,€but€neither€does€the€ground€lease€require€unlimitedÏsubordination;€the€landlord€is€only€required€to€agree€to€a€subordination€the€termsÏof€which€are€reasonable.€€To€require€the€fee€interest€to€be€subordinated€òòadÏinfinitum€óówould€wreak€havoc€never€contemplated.Ìò òÓ  ÓVIIÌÓ  Óà àó óFiser,€the€intervenor,€presents€for€review€the€issues€of€(1)€whether€theÏoriginal€Cherokee€Place€Partnership€could€continue€as€the€same€entity€after€oneÏof€two€partners€acquired€the€entire€partnership€interest,€and€(2)€whether€Fiser€isÏentitled€to€reimbursement€of€attorney€fees€from€Wise.Ìà àThe€first€issue€has€been€addressed.Ìà àThe€answer€to€the€second€issue€is,€no.€€We€agree€with€the€ChancellorððsÏfindings€as€to€each€of€these€issues.Ìò òÓ  ÓœÌÌVIII›ÌÓ  Óà àó óThe€appellee€Richard€Bales€presents€one€issue€for€review.€€He€insists€thatÏthe€Chancellor€ð ðshould€have€permitted€him€to€enforce€the€buy„out€provisionsÏunder€the€partnership€agreement€so€as€to€purchase€the€Fiser€Childrenððs€Trusts€œonÏ›the€same€basis€that€Fiser€tried€unsuccessfully€to€ððcash€outðð€the€Wise€ChildrenððsÏTrust.€€This€would€be€for€Bales,€he€says,€poetic€justice,€when€the€œpredative›€actionsÏof€Fiser€are€carefully€considered.Ìà àThe€W€&€F€Land€Company€Partnership€Agreement€contained€the€sameÏð ðputðð€provision€that€Fiser€utilized€in€the€Cherokee€Place€Partnership.€€Bales€wasÏfearful€that€if€he€ð ðgot€a€putðð€he€could€not€respond€on€behalf€of€the€Wise€ChildrenÏbecause€the€trust€had€no€funds.€€Wise€had€none;€his€children€had€no€financialÏresources.Ìà àUndoubtedly€there€were€parlous€times€for€Bales,€but€Fiserððs€interests€neverÏmade€a€ððputðð€on€him.€€Perhaps€it€could€be€said€that€the€ððputðð€to€Wise€in€the€otherÏpartnership€was€instructive.€€At€any€rate,€Bales€recognizes€that€the€ChancellorÏexercised€his€reasonable€discretion€in€creating€an€equitable€remedy€whichÏeliminated€a€forced€sale€of€the€assets€of€W€&€F.Ìà àBales€argues€that€pursuant€to€òòTenn.€Code€Ann.€ððóó€61„1„131,€which€providesÏthat€it€is€a€ground€for€dissolution€of€a€partnership€if€a€partner€is€excluded€fromÏparticipation€in€the€conduct€of€business,€he,€as€Trustee€for€the€Wise€Children,€isÏentitled€to€an€award€of€damages€against€the€other€partners.€€He€concedes€that€anyÏdamages€would€be€nominal€in€nature€and€for€this€reason€suggests€that€the€WiseÏChildren€Trust€should€be€allowed€to€acquire€the€Fiser€interests.€€This€would€carryÏððpoetic€justiceðð€too€far,€in€one€judgment,€because€we€think€the€Chancellor€arrivedÏat€the€essential€justice€of€the€case.Ìò òÓ  ÓIXÌÓ  Óà àó óThe€First€Tennessee€Bank€presents€for€review€the€single€issue€of€whetherÏthe€trial€court€properly€determined€that€its€right€of€acceleration€of€Cherokee€PlaceððsÏindebtedness€upon€default€is€subordinate€to€the€landlordððs€right€to€cure€theÏdefault.à àThe€trial€courtððs€Final€Judgment€provides:ÌÒ ` ÒÒ Ï ÒÒ ` ÒÒ  ÒÓÓÓ  Ó€ð ð.€.€.€in€the€event€First€Tennessee€Bank€gives€written€notice€thatÏCherokee€Place€has€defaulted€in€making€a€monthly€payment€on€aÏmortgage€or€deed€of€trust€loan€to€which€Landlord€is€subordinated,ÏLandlord€has€sixty€(60)€days€to€cure€said€default€by€making€aÏmonthly€payment€directly€to€the€mortgagee,€òòprovidedóó€that€LandlordÏgives€Cherokee€Place€ten€(10)€days€after€written€notice€is€sent€toÏcure€within€such€ten€(10)€day€period€prior€to€Landlord€curing€theÏdefault.€€If€Landlord€cures€the€default€by€making€the€monthlyÏpayment€after€notice€to€and€failure€by€Cherokee€Place€to€cureÏwithin€ten€(10)€days,€Landlord€could€then€step€into€the€shoes€ofÏCherokee€Place,€as€Lessee,€and€continue,€in€effect€as€theÏborrower€of€the€bank,€by€making€monthly€payments.ðð€ÌÒ  ÒÒ  ÒÒ  ÒÒ Ï ÒÓ  ÓÌÓÓà à€The€record€shows€that€Cherokee€Place€Partnership€has€never€been€inÏdefault€on€any€payment€to€First€Tennessee€Bank€on€any€loan.€€Therefore,€we€findÍFirst€Tennessee€Bank€has€not€raised€a€justiciable€issue€at€trial€or€in€this€appeal.€€€ò òÏ[cite€case(s)€]ó ó€€€We€hereby€modify€the€trial€courtððs€Final€Judgment€insofar€as€itÏpurports€to€render€judgment€on€this€issue.€€€Should€First€Tennessee€Bank€allege€aÏdefault€on€its€loan(s)€in€the€future,€the€parties€will€be€free€to€seek€a€judicialÏdetermination€as€to€the€bankððs€acceleration€rights€and€the€cure€rights€of€CherokeeÏPlace€and€W€&€F€at€that€time.Ì€€€à àAs€modified,€the€judgment€of€the€trial€court€is€affirmed,€with€costsÏapportioned€as€follows:Ìà àW€&€F€Land€Companyà àà à50%Ìà àJohn€Fiserà àà àà àà à25%Ìà àCherokee€Place€Partnershipà à15%Ìà àFirst€Tennessee€Bankà àà à10%Ìà àThe€case€is€remanded€to€the€trial€court€for€appropriate€disposition€of€theÏissues€reserved€at€trial.ÌÌÓÓà àà àà àà àà àà à__________________________________Ìà àà àà àà àà àà àWilliam€H.€Inman,€Senior€JudgeÌÌœÌCONCUR:›ÌÌÌÌ_________________________________ÌœHerschel›€P.€Franks,€JudgeÌÌÌÌ_________________________________ÌDon€T.€œMcMurray›,€JudgeÌœÔ% € Ô›à à€