WPC} # VUNa % 0(UPw@- 4m   0l 0D 0JH 0T 0^ 0hD 0r 0| 0 0 1u 0d%U>U6B)DC& AMiU* D3 B0 0@Av~v AO' 0D D/1 B`HP LaserJet 4HPPCL5MS,,,,,,0nLh(hH  Z 6Times New Roman RegularX($&@FZ 8CaslonOpnface BT Regular DDDDDӀڃ"3|x((3$ !      0  (#$  0  2 0Indent123  2" 0Indent20 23  2, 0Indent30 0 23  26 0Indent40 0 0 23  2@ 0Indent50 0 0 0 23  2J 0Indent60 0 0 0 0 23  2T 0Indent70 0 0 0 0 0 23  2^ 0Indent80 0 0 0 0 0 0 23   ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)P 8Mac DefaultMac Default ` X<  9p`(&Times New Roman<  9p`(Courier New% Line 7 d&&&&7Border 1dd-'C << G<  9p`(Arial++++'dxd d  !#d#$  ))   YYY FILED)X September30,1997CecilCrowson,Jr.)AppellateCourtClerk ("$     !#d#$   $       %%Apparently,WoodSmithRealEstatewasnotinvolvedinthesale.PtPtHH(FG(HH(d'hStyl{WP}01  HH  2$HH  Geneva  <Px443!#4$*$$*$ KK  Geneva  Geneva .,6 Geneva   h HD: Geneva  h HD: Geneva -C<< CLevel 1Level 2Level 3Level 4Level 5($$   1  ' dxdP Pd ! . $  ݛ P \RA'\%\RA'\7lXXdd7 @ INTHECOURTOFAPPEALSOFTENNESSEEROBERTG.BUNCH,etux.  )C/ANO.03A019705CV00154DEBORAHC.BUNCH,   )̜R(,'A1-j|`  `@Rߛ      )  PlaintiffsAppellants,)      )      )      )v.      )      )APPEALASOFRIGHTFROMTHE      )KNOXCOUNTYCIRCUITCOURT      )      )      )GARYJ.COOPER,etux.,  )DOROTHYL.COOPER,and  )̜GJCCONSTRUCTIONCO.,  )      )HONORABLEHAROLDWIMBERLY,  DefendantsAppellees.)JUDGEForAppellants     ForAppelleesDONALDE.OVERTON    DAVIDE.SMITHGLENNAW.OVERTON    Hodges,Doughty&CarsonKnoxville,Tennessee   Knoxville,Tennessee̛   @  OPINION%%X̜AFFIRMEDANDREMANDED       Susano,J.    RobertG.Bunchandhiswife,DeborahC.Bunch( theBuyers),broughtsuitagainstGaryJ.Cooperandhiswife,DorothyL.Cooper( theSellers),torecoverdamagesallegedlycausedbytheSellersfaultyconstructionoftheirhouse.Theirsuitisbaseduponthetheorythatthesaleoftheirnewlyconstructedresidenceissubjecttoafouryearimpliedwarrantythatthehouse wasfitforthepurposesintended.Thejuryreturnedaverdictof$1,000fortheBuyers.Theyappealed,assertingoneissue,which,astakenverbatimfromtheirbrief,isasfollows: 8 Whetherornotthetrialcourterredinitsinstructionstothejurythattheoneyearwarrantycalled PoliciesandProceduresextendedtoplaintiffsatclosingappliedtothepurchaseoftheplaintiffshomefromdefendantsratherthaninstructingthejurythatthefouryearimpliedwarrantywhichisextendedtoplaintiffsby Dixonv.MountainCityConstructionCo .,623S.W.2d538(Tenn.1982)appliedtothepurchasebyplaintiffsoftheirhomefromdefendants.@ I.Facts  OnJuly11,1992,theBuyersandtheSellersexecutedaRealEstateSalesContract( theContract),bythetermsofwhichtheSellersagreedtosellandtheBuyersagreedtobuyahousetobeconstructedat2314ScanlonCourtinPowellfor$60,900.TheContractcontainsnowarranties;infact,itrecites,incapitalletters, NOWARRANTYBYSELLERSHALLSURVIVECLOSING.  TheContractisaprinted fillintheblanksformwiththenameandaddressofWoodSmithRealEstate .   כprintedatthetopoftheform.Some,butnotall,oftheblanksontheContractarefilledin.ItprovidesforaclosingdateofOctober30,1992.Curiously,theContractdoesnotindicate,inanyway,thattheϜhousehasnotyetbeenbuilt.  OnSeptember30,1992,thepartiesclosedthesaleandawarrantydeedwasexecutedanddelivered.TheBuyersmovedintotheirresidencethesameday.Attheclosing,theSellershandedtheBuyersa21pagedocument.Thefirstpagereflectsthetitleofthedocumentas PolicyandProcedures.Aonepage TableofContentsisfollowedby(a)anothercoverpageentitled WarrantyProcedures,(b)a17page WarrantyStatement,and(c)aonepagelistingofsubcontractorswiththeirphonenumbers.ThesubjectdocumentessentiallyadvisedtheBuyersthattheSellersexpresslywarrantedtheconstructionmaterialsandworkmanshipτforoneyear.Onthefirstpageofthe WarrantyStatementisfoundthefollowingdisclaimerincapitalletters: 8 THISWARRANTYISINLIEUOFALLOTHERWARRANTIES,EXPRESSORIMPLIED,INCLUDINGBUTNOTLIMITEDTO,IMPLIEDWARRANTIESOFMERCHANTABILITY,HABITABILITY,ANDFITNESSFORAPARTICULARPURPOSE.  Attheclosing,theBuyerssignedaformentitled AcknowledgmentofReceiptwhereinthey acknowledge[d]receiptfromGJCConstruction[of]theexclusiveandtotalwarrantyuponthehouselocatedat...2314ScanlonCourt,Powell.Thatdocumentalsorecitesthat 8 I/wedoherebyacknowledgethatthewarrantyhereinreceivedisthetotalandexclusivewarrantyexcludinganyandallimpliedwarranties,relatingtothehomebeingpurchasedherein.ӜThepartiesagreethattherewerenodiscussionsregardingwarrantiespriortotheclosing.  AftertheBuyersmovedintotheirnewhouse,theyencounteredanumberofproblems,someofwhichwerefixedbytheSellers.Waterproblemswerediscoveredmorethanoneyearaftertheclosing.Theseproblems,whichwerenotremediedbytheSellers,promptedthislitigation.@ II.TheControversy  TheBuyersarguehere,astheydidinthetrialcourt,thatthissaleissubjecttoanimpliedwarranty,specificallytheonefirstrecognizedinthisjurisdictioninthecaseof Dixonv.MountainCityConst.Co. ,632S.W.2d538(Tenn.1982).RelyingonT.C.A.472725,theycontendthatthisimpliedwarrantyisforaperiodoffouryears.  Attrial,theBuyerssubmittedanproposedjuryinstructiontothetrialcourt.Thechargeadvisedthejurythatthesubjecttransactionwassubjecttoafouryearimpliedwarrantyofgoodworkmanshipandmaterials.Thetrialjudgerefusedtogivetherequestedinstruction.HeheldthatthesaleϜwasinsteadsubjecttotheoneyearexpresswarrantyalludedtoabove.TheBuyersdisagreewiththetrialcourtsreasoning.TheyurgeustofindthatthefacttheContractwassilentastoanywarrantiesmeans,asamatteroflaw,thattheimpliedwarrantyrecognizedin Dixon isapplicabletothiscase.@ III.LawandAnalysis  In Dixon ,theSupremeCourtestablishedwhathascometobeknownastheimpliedwarrantyofgoodworkmanshipandmaterials.Insodoing,theyadoptedtheimpliedwarrantysetforthintheNorthCarolinaSupremeCourtcaseof Hartleyv.ϜBallou ,209S.E.2d776,783(1974):Ӝ  8 WeadoptthatimpliedwarrantyruleinthisStateandinaccordwiththefactualsituationinthepresentcaseholdthatitshallalsoapplywhere,atthetimethecontractisenteredinto,adwellingistobeconstructedbythebuildervendor.Thiswarrantyisimpliedonlywhenthewrittencontractissilent.Buildervendorsandpurchasersarefreetocontractinwritingforawarrantyupondifferenttermsandconditionsortoexpresslydisclaimanywarranty.Ӝ Dixon ,632S.W.2dat542.Thefirstreportedappellateopinionfollowing Dixon thatexaminestheimpliedwarrantyunderdiscussionistheCourtofAppealsdecisioninthecaseof Dewberryv.Maddox ,755S.W.2d50(Tenn.App.1988).In Dewberry ,weaddressedthefollowingprovisionsinasalescontract: 8 Selleragreestohaveplumbing,heating,electrical,appliances,andairconditioningsystemsingoodworkingorderattimeofclosing.@ *** 8 PurchaseracceptsPropertyinitsexistingcondition,nowarrantiesorrepresentationshavingbeenmadebySellerorAgentwhicharenotexpresslystatedherein.Weheldthatthe ingoodworkingorder𛀜statementinthatcasewasnot sufficienttosupplanttheimpliedwarrantyenunciatedin Dixon . Id .at54.Insodoing,westatedthat 8 [i]twouldcompletelydefeattheprecedentsetby Dixon ifasellercouldcircumventtheimpliedwarrantybyexpresslywarrantingsomeaspectofanewhousewhichhasnothingtodowiththeworkmanshiporthematerialsused. Id .Wealsoheldthattheattempteddisclaimerwasnot adequatetodisclaimthe[ Dixon ]impliedwarranty. Id .Weopinedthatinordertohaveavaliddisclaimer, itmustbeinclearandunambiguouslanguage. Id .  The Dewberry casewasfollowedbyourdecisionin Axlinev.Kutner ,863S.W.2d421(Tenn.App.1993).In Axline ,weagainfoundtobeinadequateadisclaimeridenticaltotheonequotedabovefrom Dewberry . Id .at42425.In Axline ,wealsofoundthataprovisioninthesalescontract 1yearbuilderswarrantyincludedwas meaninglessandnotsufficienttoavoidtheimpliedwarrantyofgoodworkmanshipandmaterials becausethereisnoindicationwhatthebuilderiswarranting. Id .at424.  Intheinstantcase,wefindandholdthatthetrialcourtwascorrectinrefusingtoinstructthejuryregardingtheimpliedwarrantyofgoodworkmanshipandmaterials.Inthiscase,theSellers,whowereinthebusinessofbuildinghouses,furnishedtheBuyersanexpress,detailed,expansivewarrantythatcoveredworkmanshipandmaterialsforaperiodofoneyear.Thatwarrantysetforthreasonableproceduresforinvokingitsprovisions,includingaprovisionrequiringthatallclaimsbemadeinwriting.  TheevidenceisveryclearthattheBuyersunderstoodthatthistransactionwassubjecttoaoneyearexpresswarranty.Theyacknowledgedinwritingthattheyreceivedacopyofthatwarrantyandfurtheracknowledgedthatitwastheonlywarrantyinvolvedinthetransaction.Thewarrantyincludesadisclaimerthat,unliketheonein Dewberry and Axline ,is clearandunambiguousastothewarrantiesdisclaimed.See Dewberry ,755S.W.2dat54.BothoftheBuyerstestifiedattrialthattheyreadtheSellersexpresswarrantyandhenceknewthattherewasaoneyearwarrantycoveringtheirtransaction.  TheBuyersattempttoavoidtheoneyearexpresswarrantybypointingoutthattheContractitselfissilentastoanywarranties.Theyclaimthatthe Dixon impliedwarrantyshouldcontrolthiscasebecause,quotingfrom Dixon , [t]hiswarrantyisimpliedonlywhenthewrittencontractissilent. Dixon ,632S.W.2dat542.Hence,sotheargumentgoes,acontractsilentastowarrantiesgivesrisetothe Dixon impliedwarranty.  Wedonotbelievethequotedlanguagefrom Dixon isanimpedimenttotheeffectivenessoftheexpresswarrantyfurnishedto,readby,andacknowledgedbytheBuyersattheclosing.WhileϜitistruethattheContractintheinstantcaseissilentastowarranties,itisclearthatthepartiesintendedthatthistransactionwouldbesubjecttotheoneyearexpresswarranty.ϜTheBuyersnotonlyacceptedtheoneyearexpresswarrantyattheϜclosing,theyalsomadeclaimsunderitandreceivedbenefitsasaresultofit.IntherecordbeforeusaretwolettersfromtheBuyerstotheSellersonedatedOctober27,1992,andtheotherdatedSeptember28,1993listingitemsforrepairundertheoneyearwarranty.Thesecondofthetwoletterswaswrittentwodaysbeforetheoneyearanniversaryoftheclosing.Itincludesthestatementthat [t]hisisalistofitemsthatneedtobefixedorrepairedonour1yearwarranty.(Emphasisadded).  Mr.BunchwrotetheSellersathirdletterdatedAugust23,1995,buttheproofindicatesthatitwasactuallywrittenAugust23,1994.Whiletheletteriswellbeyondtheoneyearperiodofthewarranty,itissignificantbecauseitalsoreferstothe 1yearwarranty.Mrs.Bunchstestimonyisparticularlysignificantonthissubject: 8 Q.Allright.Youwrotetheselettersforyourhusbandabouttheoneyearwarranty,didyounot? 8 A.Yes,sir. 8 Q.Andyouallwererelyingonthatwarranty? 8 A.Yes,sir. 8 Q.AndhesstatedDidyouwritetheletterinAugustof94thathasthedateofAugustof95? 8 A.ImnotsureifhewroteitorIwroteit.Imnotsurewhichitwas. 8 Q.Atanyrate,italsoreferstotheoneyearwarranty,doesitnot? 8 A.Yes,sir,itdoes. 8 Q.Youallreviewedthatwarrantywhenyougotit? 8 A.Yes,sir,welookedoverit. 8 Q.Andyoubothsignedtheacknowledgmentofthereceiptofit? 8 A.Yes,sir. 8 Q.Youbothreadit? 8 A.Yes,sir. 8 Q.Bothreadtheacknowledgmentform,thereceiptofit? 8 A.Yes,sir.8 8 Q.AndyouactedonandusedthataspartofyourcontractwithMr.andMrs.Cooper?8 8 A.ImnotsureIunderstandthequestion.8 8 Q.Thewarranty.Inotherwords,youall,whenyoucalledthemorwrotetothem,youdwritetothemaboutthewarranty? 8 A.Yes,sir.  Thus,thepartiestotheContractclearlyrecognizedtheoneyearexpresswarrantyasapartoftheirtransaction.The ruleofpracticalconstructionisapplicabletothefactsofthiscase: 8 ...theinterpretationplaceduponacontractbythepartiesthereto,asshownbytheiracts,willbeadoptedbythecourtandthattothisendnotonlytheactsbutthedeclarationsofthepartiesmaybeconsidered. HamblenCountyv.CityofMorristown ,656S.W.2d331,335(Tenn.1983).  Intheinstantcase,thereisanexpresswarrantyofgoodworkmanshipandmaterialswithacleardisclaimerofanyimpliedwarrantiesincluding ...IMPLIEDWARRANTIESOFMERCHANTABILITY,HABITABILITY,ANDFITNESSFORAPARTICULARPURPOSE.Under Dixon ,theseprovisionsaresufficienttorenderinapplicabletheimpliedwarrantydescribedinthatcase.Thetrialcourtwascorrectinrefusingtogivetherequestedinstruction.ThepartiestotheContract contract[ed]inwritingforawarrantyupondifferenttermsandconditions. Dixon ,632S.W.2dat542.  Thejudgmentofthetrialcourtisaffirmed.Costsonappealaretaxedagainsttheappellantsandtheirsurety.Thiscaseisremandedtothetrialcourtforenforcementofthejudgmentandcollectionofcostsassessedthere,allpursuanttoapplicablelaw.       __________________________         CharlesD.Susano,Jr.,J.CONCUR:________________________HoustonM.Goddard,P.J.________________________̜HerschelP.Franks,J.