ÿWPCõ /# ¢UN­ %û 0(b)w@14q…” 0Jœ 0Tæ 0^: 0h˜ 0r 0|r 0†î 0t 1u 0dyU>ÝB) AQD Æ• 0D[ 0@Ÿ 0Dß DC# D/f B• B² D3Ï AM U*O +y v~¤ vÓ"˜HP LaserJet 4SiHPPCL5MS,ü,,,,,ü0nLhÎ(ÖÃ9 Z ‹6Times New Roman RegularX($¡¡- ù- ËUÌUÍUÎUÏUÐUÑDÒÓÓ€Ýê‚_#žŸ ¡¢£¤¥¦§¨3|xÝ2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)P ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ< Œ 9p`(&Times New Roman% Line 7 d!"#$&Cþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5(3¯$¢¢Ý ƒ!ÝÝ  Ý("ÿÿ$££Ò  ÒÒ  Ò($$””ò òÚ  Ú1Ú  Úó ó7Border 1dd(('÷ÿ dxd düÿP Pd'''''ÿÿdxd!#%Cþÿ << Gÿÿ< Œ 9p`(Arial !Ý ƒ!ÝÑ  ÑÑ#€d#ÑÔ€ÔÝ  ÝÝ ƒ""ÝÝ  ÝÔ€+ÔÔ€+ÔÓ  Óò òÔ YYY ÔFILEDÔ€+XÔÌÌDecember€12,€1997ÌÌCecil€W.€CrowsonÌAppellate€Court€ClerkÔ  Ôó óPtPtHHÚ(ÿáÿâùFG(üHHØ(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  ion-F Geneva ÒÒ  ion-F Geneva ÒÝ ƒ!ÝÔ . ÔÔ€ÔÝ  ÝÒ  ÒÒ „ ÒÑ  ÑÑ\R AØ'\ÑÑ€ÑÑ7€–XXdìdÈ7ÑÑ  ÑÑ  Ñò ò›Þ ÞÌABC€SUPPLY€COMPANY,€INC.,à àà à)à àWilliamson€ChanceryÌà àà àà àà àà àà à)à àNo.€€23986Ìà àPlaintiff/Appellant,à àà àà à)Ìà àà àà àà àà àà à)à àÌVS.à àà àà àà àà àà à)Ìà àà àà àà àà àà à)à àÌUNITED€STATES€FIDELITY€AND€à à)à àAppeal€No.ÌGUARANTY€COMPANY;€CHARLESà à)à à01A01„9702„CH„00081ÌÙ€!ÙœßR€*,%A1-j|tÿ` ç `€€@ÿRß›&€VINZANT€CONSTRUCTION€CO.,à à)ÌINC.;€CAP„TENN€ASSOCIATES;€ACI€à à)ÌBUILDERS,€INC.€a/k/a€ACI€ROOFING,à à)€ÌINC.;€ADAM€KEITH€CHUNN;€AND€à à)ÌALBERT€NELSON€CHUNN,à àà à)Ìà àà àà àà àà àà à)à à€Ìà àDefendants/Appellees.à àà à)€à à€ÌÌÔ€„Ôà àà àà àà àà àà àà àÔ€XÔÌà@ àIN€THE€COURT€OF€APPEALS€OF€TENNESSEEÌÌà@ àMIDDLE€SECTION€AT€NASHVILLEÌà@ àAPPEAL€FROM€THE€CHANCERY€COURT€OF€WILLIAMSON€COUNTYÌÌà@ àAT€FRANKLIN,€TENNESSEEÌà@ àHONORABLE€HENRY€DENMARK€BELL,€JUDGEÌó óÌÌEverett€L.€Hixson,€Jr.à àà àà àà àà àR.€E.€Lee€DaviesÌPhillip€E.€Fleenorà àà àà àà àà àHARTZOG,€SILVA€&€DAVIESÌRobert€T.€Witthauerà àà àà àà àà àFifth€Avenue,€No.€&€Fair€StreetÌSHUMACKER€&€THOMPSONà àà àà àP.O.€Box€664ÌSuite€500,€First€TN€Buildingà àà àà àà àFranklin,€TN€37065„0664Ì701€Market€StreetÌChattanooga,€TN€37402„4800ÌATTORNEYS€FOR€PLAINTIFF/APPELLANTÌÌJohn€C.€Beiterà àà àà àà àà àà àLuther€Wright,€Jr.ÌNEAL€&€HARWELLà àà àà àà àà àBOULT,€CUMMINGS,€CONNERS€&€€€€Ì2000€First€Union€Towerà àà àà àà àBERRYÌ150€Fourth€Avenue,€Northà àà àà àà à414€Union€Street,€Suite€1600ÌNashville,€TN€37219„2498à àà àà àà àP.O.€Box€198062ÌATTORNEYS€FOR€DEFENDANTS/à àà àNashville,€TN€37219„8062ÌAPPELLEESÌÌÌÓ  Óò òAFFIRMED€AND€REMANDEDó óÌÌÓ  ÓÌà àà àà àà àà àHENRY€F.€TODDÌà àà àà àà àà àPRESIDING€JUDGE,€MIDDLE€SECTIONÌÌÌÌÌCONCUR:ÌÌBEN€H.€CANTRELL,€JUDGEÌWILLIAM€C.€KOCH,€JR.,€JUDGEÌÌò òABC€SUPPLY€COMPANY,€INC.,à àà à)à àWilliamson€ChanceryÌà àà àà àà àà àà à)à àNo.€€23986Ìà àPlaintiff/Appellant,à àà àà à)Ìà àà àà àà àà àà à)à àÌVS.à àà àà àà àà àà à)Ìà àà àà àà àà àà à)à àÌUNITED€STATES€FIDELITY€AND€à à)à àAppeal€No.ÌGUARANTY€COMPANY;€CHARLESà à)à à01A01„9702„CH„00081Ì&€VINZANT€CONSTRUCTION€CO.,à à)ÌINC.;€CAP„TENN€ASSOCIATES;€ACI€à à)ÌBUILDERS,€INC.€a/k/a€ACI€ROOFING,à à)€ÌINC.;€ADAM€KEITH€CHUNN;€AND€à à)ÌALBERT€NELSON€CHUNN,à àà à)Ìà àà àà àà àà àà à)Ìà àDefendants/Appellees.à àà à)ÌÓÓÌà@ àòòÔ€¼ÔO€P€I€N€I€O€NÔ€XÔóóÌÓ  Óó óà àThe€captioned€plaintiff,€ABC€Supply€Co.,€Inc.,€(hereafter€ABC)€has€appealed€from€theÏsummary€dismissal€of€some€of€the€captioned€defendants.€ÌÌà àCap„Tenn€Associates,€(hereafter€Cap„Tenn),€as€owner,€engaged€Charles€&€VinzantÏConstruction€Co.,€Inc.,€(hereafter€C&V),€to€construct€a€large€commercial€building.€€UnitedÏStates€Fidelity€and€Guaranty€Company€executed€a€bond€guaranteeing€faithful€performance€byÏC&V,€the€general€contractor.€€The€foregoing€defendants€were€dismissed€by€the€summaryÏjudgment.ÌÌà àC&V€engaged€ACI€Builders€a/k/a€ACI€Roofing,€Inc.,€(hereafter€ACI),€asÏsubcontractor,€to€construct€or€apply€the€roof€of€the€building.€€Adam€Keith€Chunn€and€AlbertÏNelson€Chunn,€as€guarantors€for€ACI,€joined€in€an€application€for€credit€to€be€extended€to€ACIÏfor€the€purchase€of€roofing€materials€from€ABC.ÌÌà àCap„Tenn,€the€owner,€C&V,€the€general€contractor€and€USF&G,€the€surety€of€theÏgeneral€contractor,€€were€dismissed€by€summary€judgment.€€The€Trial€Court€directed€entry€ofÏthe€partial€summary€judgment€as€final€as€provided€by€TRCP€Rule€54.02.ÌÌà àJudgment€was€rendered€in€favor€of€ABC,€the€materialman€against€ACI,€the€roofingÏsub„€contractor,€and€its€two€guarantors€for€$40,418.37€plus€$2,230.00€attorney€fees.€€ThisÏportion€of€the€judgment€is€not€before€this€Court€on€appeal.ÌÌà àABC,€the€plaintiff„appellant€materialman,€has€filed€a€brief€in€this€Court€presenting€theÏfollowing€issues:ÌÒ ¸ ÒÒ ` ÒÓ  ÓÓÓòòSTATEMENT€OF€THE€ISSUES€ÌPRESENTED€FOR€REVIEWóóÌÓ  ÓÌà àWhether€the€court€below€erred€in€granting€SummaryÏJudgment€to€Defendants€United€States€Fidelity€GuarantyÏCompany€(ð ðUSF&Gðð),€Charles€Vinzant€ConstructionÏCompany,€Inc.€(ð ðC&Vðð),€and€Cap„Tenn€Associates€(ð ðCap„Tennðð)€where:ÌÌà à(a)à àgenuine€issues€of€material€fact€exist€under€theÏà àdoctrine€of€quantum€meruit€as€to€whether€ABC€wasÏà àpaid€for€materials€supplied€by€it€to€the€job€underÏà àABCððs€theory€of€recovery.ÌÌà à(b)à àgenuine€issues€of€material€fact€exist€underÏà àABCððs€bond€claim€as€to€œ(i)›€whether€the€ninety€dayÏà ànotice€provision€contained€in€the€bond€is€applicableÏà àand,€if€so,€(ii)€whether€USF&G,€C&V€and€Cap„Tenn€à àhad€actual€notice€of€the€claim€sufficient€to€satisfy€theÏà ànotice€requirement;€andÌÒ ¸ ÒÒ < Òà àÌÒ ¸ ÒÒ ` Òà à(c)à àthe€ð ðJoint€Check€Ruleðð€relied€upon€byÏà àUSF&G,€C&V,€and€Cap„Tenn€to€extinguish€theirÏà àliability€to€ABC€is€inapplicable€because€of€theÏà àexistence€of€òòcontemporaneous€contractsóó€covering€theÏà àsame€subject€matter€which€preclude€the€application€ofÏà àthe€joint€check€rule.€€(Emphasis€supplied)ÌÌÒ  ÒÒ Ï ÒÌÓÓà àCap„Tenn,€the€owner„appellee,€has€filed€a€brief€in€response€to€appellantððs€issues.€ÏC&V,€the€general€contractor,€and€USF&G,€its€surety,€have€filed€a€brief€and€supplementalÏbrief€presenting€the€following€issue:ÌÒ ¸ ÒÒ ` ÒÓÓà àWhether€the€Chancery€Court€was€correct€in€grantingÏSummary€Judgment€for€the€Defendants/Appellees€UnitedÏStates€Fidelity€Guaranty€Company€and€Charles€&€VinzantÏConstruction€Company,€Inc.ÌÒ  ÒÒ Ï ÒÓÓÌà àOn€June€21,€1995,€C&V,€the€general€contractor,€ACI,€the€€roof€subcontractor,€andÏABC,€the€roofing€material€furnisher,€executed€the€following€ð ðòòJoint€Check€Agreementóóðð:ÌÒ ¸ ÒÒ ` ÒÓÓThis€Joint€Check€Agreement€entered€into€this€òò21óó€day€ofÏòòJuneóó,€òò1995óó,€between€(General€Contractor)€òòCharles€&ÏVinzant€Construction€Coóó.Ìòò500€Southland€Dr.,€Suite€102,€Birmingham,€AL€€35226€Ì205„823„6761óó€(hereinafter€referred€to)€as€(subcontractor)ÏòòACI€Roofing,€Incóó.Ìòò1808€Pulaski€Hwy.,€Fayetteville,€TN€37334€615„433„6949óóÌ(hereinafter€referred€to€as€Subcontractor)€and€AmericanÏBuilders€&€Contractors€Supply€Co.,€Inc.€d/b/a/€ABC€SupplyÏCo.,€Inc.€(hereinafter€referred€to€as€ABC).ÌÌThe€parties€hereto€agree€as€follows:ÌÌ1.à àAny€and€all€payments€between€General€andÏSubcontractors€in€connection€with€the€Project€describedÏbelow€shall€be€made€only€by€checks€issued€in€the€jointÏnames€of€Subcontractor€and€ABC€by€the€General€pursuant€toÏinvoices€submitted€by€Subcontractor€to€General.ÌÌòòCool€Springs€Market€Building€located€at€2000€Mallory€Lane,ÏFranklin,€Tn.€€37065€615„771„7954ÌóóÌ2.à àAll€checks€issued€by€General€jointly€to€SubcontractorÏand€ABC€as€set€out€above€shall€be€delivered€to€ABC€byÏSubcontractor,€whereupon€Subcontractor€will€endorse€saidÏchecks€and€surrender€them€to€ABC€€for€deposit€by€ABC.ÏòòSubcontract€amountóó€of€$225,140.00.ÌÌ3.à àOne€purpose€of€this€Joint€Check€Agreement€is€toÏprovide€the€payment€of€invoices€rendered€by€ABC€on€salesÏof€all€materials€to€Subcontractor€for€use€on€the€project,€not€inÏexcess€of€Subcontractor€amount.€€This€agreement€does€notÏconstitute€an€assignment€of€funds,€and,€except€to€the€extentÏof€payment€actually€received€and€retained€by€ABC,€theÏexecution€of€this€Agreement€and€taking€of€such€joint€checkÏshall€not€effect€(sic)€or€otherwise€impair€any€bond,€lien€orÏother€creditor€rights€and€remedies€which€ABC€now€has€orÏmay€hereafter€have.€€This€Agreement€shall€remain€in€fullÏforce€and€effect€until€written€cancellation€is€forwarded€toÏGeneral€and€Subcontractor€by€an€authorized€representative€ofÏABC€and€all€outstanding€invoices€owed€by€Subcontractor€toÏABC€are€paid€in€full.ÌÌABCððs€rights€contained€herein€are€a€portion€of€theÏconsideration€for€ABCððs€agreement€to€supply€materials€forÏthe€Project.€€ÌÌÒ  ÒÒ Ï ÒÌÓÓà àThe€record€contains€a€further€document€entitled€òòJoint€Payment€Agreementóó,€but€itÏcontains€no€date,€no€blanks€are€filled€in€and€it€contains€only€the€signature€of€ABC€and€ACI.€ÏThe€signature€of€C&V,€the€general€contractor,€does€not€appear€in€the€space€provided€for€it.€ÏPlaintiffððs€reliance€upon€the€ð ðsecond€contractðð€is€misplaced€because€the€general€contractor€wasÏnot€a€party€to€it.ÌÌà àThe€record€also€contains€a€tabulation€of€€deliveries€claimed€by€ABC€to€have€been€madeÏto€ACI€from€July€26,€1995,€to€August€18,€1995,€amounting€to€a€total€of€$82,492.21.ÌÌà àOn€July€25,€1995,€ACI€submitted€a€payment€request€to€C&V€seeking€payment€forÏ$75,234.00€worth€of€roofing€materials.€€It€attached€to€this€request€an€invoice€for€theseÍmaterials€dated€July€24,€1995,€purportedly€prepared€by€ABC.€€ABC€insists,€withoutÏcontradiction€by€Cap„Tenn,€C&V,€or€USF&G,€that€ACI€actually€forged€this€invoice.ÌÌà àIn€accordance€with€the€òòJoint€Check€Agreementóó,€C&V€issued€a€check€payable€to€ABCÏand€ACI€in€the€amount€of€$67,710.60€which€represented€the€$75,234.00€less€10%€ð ðretainageððÏof€$7,523.40.€€The€ð ðretainageðð€was€retained€by€C&V€to€assure€that€ACI€would€satisfactorilyÏcomplete€its€contract€to€construct€the€roof.€€Sec.€13€Am€Jur.2d€Building€and€ConstructionÏcontracts€ðððð21.p24.€€Upon€satisfactory€performance€of€the€roof€contract,€ABC€and€ACIÏwould€be€entitled€to€payment€of€the€accumulated€retainage€by€a€check€payable€to€both€underÏthe€joint€check€agreement.€€œTo€the€extent€of€the€retainage,€the€summary€judgment€in€favor€ofÏC&V€and€USF&G€is€reversed.›ÌÌà àC&V€delivered€the€$67,710.60€check€to€ACI,€and€ACI€endorsed€the€check€andÏdelivered€it€to€ABC€which€endorsed€and€deposited€it€to€the€credit€of€ABC€in€its€bank€accountÏon€or€about€August€22,€1995.€€However,€ABC€drew€and€delivered€a€check€to€ACI€forÏ$23,324.12€and€now€seeks€to€recover€from€C&V€and€its€surety€this€amount€of€$23,324.12Ïwhich€it€has€already€received€from€C&V€and€paid€to€ACI.€€Nothing€in€this€record€supports€theÏright€of€ABC€to€collect€this€$23,324€from€C&V€or€its€surety€for€the€second€œtime.€€Therefore,Ïwe€affirm€the€summary€judgment€in€favor€of€C&V€and€USF&G€on€this€claim.›ÌÌà àABC€attempts€to€rely€upon€the€above€mentioned€ð ðòòJoint€Payment€Agreementóóðð€whichÏcontains€the€words:ÌÒ ¸ ÒÒ « ÒÓÓà àNOW,€THEREFORE,€in€consideration€of€SupplierÏfurnishing€the€work€for€said€Project,€and€other€valuableÏconsideration,€Contractor€agrees€to€make€payment€for€saidÏWork€by€issuance€of€a€check€made€payable€jointly€toÍSupplier€and€Subcontractor.€€Subcontractor€agrees€that€suchÏjoint€check€payment€shall€be€applied€againstÏSubcontractorsððs€contract€price€with€Contractor.€€PaymentÏof€the€aforesaid€amount€shall€be€due€at€Supplierððs€place€ofÏbusiness.ÌÌà àIn€the€event€Contractor€and€Subcontractor€are€forÏany€reason€in€disagreement€as€to€monies€due€fromÏContractor€to€Subcontractor,€at€the€time€payment€for€theÏaforesaid€work€is€due€to€Subcontractor,€Contractor€agreesÏto€make€full€payment€to€Supplier€directly,€in€lieu€of€issuingÏa€joint€check,€and€Subcontractor€agrees€that€said€money€soÏpaid€by€Contractor€to€Supplier€shall€be€applied€againstÏSubcontractorððs€contract€price€with€contractor.€€ContractorÏshall€not€be€obligated€to€make€payment€to€Supplier€ifÏSubcontractor€becomes€indebted€to€Contractor€for€defaultÏunder€said€contract.ÌÌà àNothing€contained€herein€in€this€agreement€shall€beÏconstrued€as€a€waiver€of€any€of€the€Contractorððs€rights€orÏremedies€against€the€Subcontractor€or€others.€€Additionally,Ïthis€agreement€shall€in€no€way€create€an€obligation€uponÏContractor€to€make€payments€in€excess€of€the€amounts€dueÏSubcontractor€under€the€subcontract,€or€that€this€agreementÏshall€not€be€construed€to€create€a€contractual€obligation€toÏsupplier€on€the€part€of€Contractor€except€as€set€forth€in€thisÏagreement.ÌÒ  ÒÒ Ï ÒÓÓÌà àAs€stated€above,€this€ð ðòòJoint€Payment€Agreementóóðð€was€signed€only€by€ABC€and€ACI.€ÏNo€other€party€executed€it.ÌÌà àABC€asserts€that€it€has€furnished€a€total€of€$81,921.71€of€materials€used€in€the€roofingÏjob€and€has€received€only€$75,234.00€therefor.€€C&V€responds€that€ABC€has€not€yet€provenÏthe€actual€delivery€and€use€of€the€invoiced€materials€in€the€roofing€project.€€Moreover,€C&VÏhas€its€right€of€retainage,€or€delay€of€payment,€until€the€roof€contract€has€been€satisfactorilyÏperformed€by€ACI.€€Upon€proof€of€such€performance,€the€rights€of€ABC€and€ACI€to€theÏretainage€may€be€enforced.€€Until€such€performance€is€proved€the€question€of€liability€of€C&VÍand€its€surety€cannot€be€determined.€€Moreover,€the€œperformance€of€the€notice›€provision€of€theÏsurety€undertaking€of€USF&G€œhas›€not€been€shown€by€ABC€or€ACI.ÌÌà àIt€is€undisputed€that€ABC€received€and€deposited€a€check€for€the€full€amount€of€its€bill.€ÏIts€voluntary€payment€of€part€of€the€check€to€ACI€did€not€create€any€obligation€upon€C&V€orÏUSF&G€to€reimburse€ABC€for€said€voluntary€payment.€€The€only€claim€which€ABC€mightÏhave€against€Cap„Tenn,€the€owners€of€the€land,€would€be€unjust€œenrichment.€€However,€theÏrecord€is€clear€that€Cap„Tenn.€has€paid€all€it€was€obligated€to€pay€under€its€contract.€ÏTherefore,€no€claim€for€unjust€enrichment€may€be€asserted€against€Cap„Tenn.€€Seeòò€PaschallððsÏInc.€v.€Dozieróó,€219€Tenn.€45,€407€S.W.2d€150€(1966).€€As€we€read€the€complaint€ABC€didÏnot€assert€this€claim€against€C&V€and€USF&G.›ÌÌà àThe€case€is€not€closed€in€the€Trial€Court,€where€ABC€will€have€an€opportunity€toÏprove€and€œenforce›€such€rights€as€it€may€be€able€to€establish€to€the€retainage€held€by€C&V€toÏassure€satisfactory€performance€of€the€roofing€contract€by€ACI.€€Any€dispute€as€to€satisfactoryÏcompletion€of€the€roof€will€remain€open€for€litigation€in€the€Trial€Court.ÌÌà àThe€summary€judgment€dismissing€œC&V,›€the€general€contractor,€and€USF&G,€theÏsurety,€on€the€general€œcontract,›€is€œreversed€to€allow€ABC€to€assert€its€right€to€the€retainage.€€InÏall€other€respects,€the€summary€judgment€dismissing€Cap„Tenn,€C&V€and€USF&G€isÏaffirmed.€€ÌÌÌÌÌÌÌÌCosts€of€this€appeal€are€taxed€against€the€appellant,€ABC.€€The€cause€is€remanded€to€the€TrialÏCourt€for€further€necessary€procedure.ÌÓÓÌÌÓ  Óò òAFFIRMED€AND€REMANDEDó óÌÓ  Óà àà àà àà àÌÌÌà àà àà àà àà àà àòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€Ïóóà àà àà àà àà àà àà àHENRY€F.€TODDÌà àà àà àà àà àà àPRESIDING€JUDGE,€MIDDLE€SECTIONÌÌÌÌÌÌCONCUR:ÌÌÌÌ____________________________ÌBEN€H.€CANTRELL,€JUDGEÌÌÌ____________________________ÌWILLIAM€C.€KOCH,€JR.,€JUDGE