WPC_ l~#<җ%Z#0(2ljnca)LԴѸCB1அ.m|ϥ ^Tjmkt q),4)uLQbfzb}˒:S7dgodx|搢T>IXpw[,댫0Idvňy%y3]CD-614${wtZ-#PFi-\UX;Sloi dsS $؁0 $Ur/#$U2O ^j1T4Xhk_^A1ʡ%nTnЭ):q(eؿ(G,nsHG)>>NP4!nYS#\O( ^ۭ|pL'<(`t"8.9IR4k%;;7;fF "P9E-o>oKtnCN?D1b#\ % ^ # 0/ U!N w 4 z  i x mz  | B  0DNEUN`^H                   bTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT 0\\\\ BGG 0d D3 D-; 0Khh AS 0 0Dp AHP LaserJet 4050 Series PCL 6,,,,0lsP-s (`$.8dd8    ("  Z6Times New Roman Regular,-k1| C:\PROGRA~1\COREL\WORDPE~1\TEMPLATE\CUSTOM~1\REVISE~1.WPTC:\Program Files\Corel\WordPerfect Office 2000\Template\Custom WP Templates\revised standard opinion.wpt3|xU R$      3    _ԀKISSwasa heavymetalgroup,recognizedbyaspecialissueofMetalEdgeMagazine.Level 1Level 2Level 3Level 4Level 5Level 1Level 2Level 3Level 4Level 5Level 1Level 2Level 3Level 4Level 5Level 1Level 2Level 3Level 4Level 5(#$  0   R$      4    _Ԁ_Vinnie_ԀVincentisthetradeorstagenameoftheplaintiff.  R$      1    _ԀThereisnoevidenceintherecordtosupportthisallegation. R$      2    _ԀWhichrequiredsophisticatedartworktobesuppliedbytheplaintiff.(9 Z6Times New Roman Regular T R$      5    _ԀTheconfirmationlettersentbytheplaintiffappearstobe,asinsistedbythedefendants,aconfirmationof  aspacereservationratherthantheconfirmationofacontract,andstereotypical. > R$      6    _ԀTheartworksubmittedbytheplaintiffwashimself,dressedinhisKISScostume,whichdoubtlesslycasta  somewhatchillingeffectuponadecisiontoacceptthead.- -(|G2$ !.8\ dXXd8         0   d(|3 R$ !.8\ dXXd8     VVVV'dxd)!dxdx( $ Figure  1  ^_X`YE<<CLevel 1Level 2Level 3Level 4Level 5(|3 R$ !.8\ dXXd8     ($$   1  X[Z&OLE 2.0 Box <=8C HKKKK !.8\ dd8     _  \ 8 XXdd8  @ AL\ INTHECOURTOFAPPEALSOFTENNESSEE  @kk$ATNASHVILLE#\ AL #Ԉ &   November7,2000Session L X X\  #\ XX #VINCENTJ._CUSANO_,a/k/ap/k/a_VINNIE_ԀVINCENTv.  ^ STERLING/_McFADDEN_ԀPARTNERSHIP,d/b/aMETALEDGEX X\  , ETAL.  " r @@ AppealfromtheChanceryCourtforDavidsonCounty " r @@No.964088IIIEllen_Hobbs_ԀLyle,Chancellor ^  @@*AV) ` dE<` A "  @@TTNo.200000161_COA_ԄR3CVFiledOctober16,_2002_   AV) ` dE<` A     Theplaintifffiledthisactionfordamagesforbreachofcontractallegingthathetelephonedthe  publishersofficeofaspecialtymagazinetodiscusstheinsertionofanadextollingandadvertising x histalentsandproduct,andthattheadcoordinatortowhomhetalkedagreedtoinsertthead.The d adcoordinatorcalledtheplaintiffafewdayslaterandinformedhimthattheproposedadwasnot P acceptable.Aprincipalissuewaswhethertheadcoordinator,asagent,hadtheapparentauthority < tobindthemagazine.TheChancellorconcludedthattheagenthadtherequisiteapparentauthority (x because,ineffect,henevertoldtheplaintiffthathehadnoauthoritytobindthemagazine,butthat d theplaintiffwasentitledtorecoveronlynominaldamages.Thejudgmentisreverseduponafinding P thatagencycannotbeprovedsolelybystatementsoftheagent. <  Tenn.R.App.P.3AppealasofRight;JudgmentoftheChanceryCourtReversedand  Dismissed      g BenH._Cantrell_,_P.J._,M.S.,#\ X #X X.\ WilliamC.Koch,Jr.,J.,#\ X  #X X.\ ԀWilliamB.Cain#\ X k #X X.\ ,J. `#"  DanielMarkNolanandJasonMatthewMill,Clarksville,Tennessee,fortheappellant,VincentJ. 8% $ _Cusano_. $&t!% J.WilliamLincoln,III,Nashville,Tennessee,andTheodoreM.Greenberg,NewYork,NewYork, 'L#' forappellees,Sterling/McFaddenPartnership,d/b/aMetalEdgeMagazineandSterlingsMagazines, (8$( Inc. )$%)  -(- Ї#\ XX  #X X\     OPINION  PERCURIUM #\ XX  #X X\   0   I.  t     Thisisanactionfordamagesforbreachofcontract.Theplaintiffisamusician,songwriter, L  performer,andsoleownerof_Metaluna_ԀRecords,LLC.Thedefendantsare(1)Sterling/McFadden 8  Partnership,d/b/aMetalEdgeMagazineand(2)SterlingsMagazines,Inc. $ t   TheplaintiffallegedthatonMay13,1996hetelephonedMelGoldman whoisthe  L  MarketingandSalesDirector #  1      ׀ofMetalEdgeMagazine,andwhoisalsotheAgentof  8  Sterling/McFaddenand/orSterlingsMagazinesandenquiredaboutplacingafullpagecolor $  advertisementinaspecialMetalEdgeMagazineissuetobereleasedseveralmonthslater.Thead   wouldextol,forcommercialpurposes,theentertainmentqualityofaCDproducedandmanufactured   bytheplaintiff.     HeallegedthathediscussedwithMr.Goldmanthenature,content,andmakeupoftheadT #  2       p whichwasconfirmedsubjecttothereceiptbyMr.Goldmanoftherequireddata.Sevendayslater, \ theplaintiffallegedthatheagaincalledMr.Goldmanthatacheckinpartialpaymentoftheadwas H intransitandthatMr.GoldmanagainconfirmedthattheadwouldbeinsertedintheKISSissue.  #  3      ׀ 4 Afewdayslater,thecheckwasreturnedandMr.Goldmancalledtoadvisetheplaintiffthatthe  p proposedadwouldnotbeplacedbecauseGeneSimmons,cofounderofKISS,hadrefusedtotake  \ thead.Theplaintiffallegedthathewasnotinformedby anyoneatMetalEdgethatSimmonshad H therighttoapproveordisapproveany advertisementgoingintotheKISSissue. 4   Theplaintiffthenalleged uponinformationandbelief(1)thattheactionsof Mr.Goldman   andMr.Vincent_l #  4      _Ԁconstitutedabindingcontract,(2)thattherefusaltoplaceMr.Vincentsadinthe  KISSissueconstitutedabreachofcontract,and(3)thathesufferedalossofbusinessasaresult.    Thedefendantsdeniedthattheplaintiffwasauthorizedtoplacethead,butadmittedthatMr. l Goldmanstatedthebasictermstoreservespaceforanadplacementshouldtheadbeaccepted. X  Theydeniedthattherequiredartworkwasreceived,anecessaryprerequisiteforthead;theydenied D! anyagreementtoacceptanad,becauseGoodmanlackedtherequiredauthority. 0"     $D # _ II.   p  TheChancellordismissedSterling/McFaddenInc.owingtothelackofproofconnectingthis  defendanttothe factsandissuesofthiscase. t   WhetherMr.Goldman,anadcoordinatorofthemagazine,hadtheapparentauthoritytobind L  themagazinecontractuallywasapivotalissueatthetrial.TheChancellorfoundthat 8  8  8`   [W]hentheplaintiffcalledthemagazineandstatedthathewantedto  ` placeanad,themagazinedirectedtheplaintifftoMr.Goldman  L  therebyindicatingthatMr.Goldmanwasthepersonatthemagazine  8  todiscussthematter.Moreover,Mr.Goldmanexercisedauthorityby $  givingtheplaintiffinformationandinstructions,i.e.,Mr.Goldman   toldtheplaintiffthelocationoftheadinthemagazine,therateofthe   adspace,thedeadlinetosubmittheartworkandthathecould   contractwiththemagazinebysendingawrittenconfirmation.   Furthermore,Mr.Goldmandidnotforwardtheconfirmationtothe p allegedlyappropriatemagazineemployee.Alsosignificanttothe \ CourtisthatMr.Goldmanadmittedthatatnotimedidhetellthe H plaintiffthatMr.Goldmandidnothavetheauthoritytomakesucha 4 contract... p` x` x   TheChancellorthenfound H 8  8`   [B]utmostsignificantinestablishingagencyistheactionofthe   principal.Themagazine,throughMr.Tuller,acquiescedormadeit   appearthatMr.Goldmandidhaveauthoritytocontractbyinstructing  Mr.Goldmantocontacttheplaintifftorejectthead...` x` x   Afterfindingthatthepartiescontractedasallegedbytheplaintiff,theChancellorconcluded l thatthedefendantmagazinebreachedthecontractbyrefusingtoinserttheadandthattheplaintiff X  suffereddamagesasaresult,theamountofwhichwasrevealedbytheproofastoospeculativeto D! awardotherthanthenominalamountof$750.00. 0"    Theplaintiffappeals,andpresentsforreviewtheissuesofwhethertheChancellorerredin $X" failingtoawardcompensatorydamages,andindismissingSterlingsMagazine,Inc.fromthecase. $D # ThedefendantspresentforreviewtheissuesofwhethertheChancellorerredinfindingacontract %0!$ asallegedbytheplaintiff,andinfailingtoconsiderwhethertheplaintiffproperlymitigatedhis &"% damages. '#& _ h+&*    III.   '  Appellatereviewisdenovoontherecordaccompaniedwiththepresumptionthatthe  judgmentiscorrectunlesstheevidenceotherwisepreponderates.Rule13(d)Tenn.R.App.P.As t toconclusionoflaw,thereisnopresumptionofcorrectness. UnionCarbideCorp.v._Huddleston_ , ` 854S.W.2d87(Tenn.1993). L     IV.  $ t )  OnMay13,1996,theplaintiffcalledMetalEdgeMagazine.Hehadnotcalledthemagazine  L  previously,andhadnoknowledgeofitsbusinesspractices.Heenquiredaboutplacinganadand  8  wasconnectedtoMr.Goldman,anadcoordinator,whoconfirmedthata specialissuewascoming $  out,thatit wasawonderfulplacetopremiermyCDandthathewould makecertainthatIhad   therighthandsideofthemagazine...withinthefirst20pagesorso.#\ XX #X X\ Theplaintifftestifiedthat   hewasinstructedtofaxareservationforthespaceandthatGoldmanassuredhim thespacewas   mine.Inrelatingwhatwasnecessaryforhimtodonext,theplaintifftestifiedthattheartworkfor   theadandadownpaymentof$355.00wererequired.AfewdayslaterhecalledGoldmanto p enquireifhecouldpay$500.00downinsteadof$355.00,andwasassuredthathecould. \   OnMay24,1995,Goldmancalledtheplaintifftoadvisehimthatthemagazinewould not 4 runyourad,becauseGeneSimmonssaid,no.Thecheckwasreturned.Theplaintiffhadbeen,in  p yearspast,amemberofthebandKISS,whichtwicefiredhimwithlingeringeffects.KISSenjoyed  \ aspecialrelationshipwiththemagazine. H   Andrew_Tuller_ԀistheCEOofSterling/McFaddenPartnership.Hetestifiedthathelearned   thattheplaintiffwantedtoadvertiseinthemagazine,andthathedecidednottoacceptthespace   reservationforitandinstructedMr.Goldmantotell Mr.Vincentthatwecannotrunhisadbecause  oftheconflictbetweenhimandKISS.Hetestifiedthatonlyhe,MortonFullerandPeterCallahan,  bothorwhomareseniorpartners,hadauthoritytocontractonbehalfofthemagazine,andthatno  authoritytocontracthadeverbeendelegatedtoMr.Goldman. l    V.  D! 2  AsindicatedbytheChancellor,thepivotalissuerequiresanindepthconsiderationand #l! analysisoftheapparentauthorityoftheagent,Mr.Goldman,tobindthedefendants.Thelawinthis $X" jurisdictiontouchingupontheissuehasbeenwellsettledandexpoundeduponforgenerations: $D # Agencymustbeprovedbythepartyassertingit,and maynotbeprovedsolelybythestatements %0!$ oftheagent. JohnJ._Heirigs_ԀConst.Co.v._Exide_ ,709S.W.2d604(Tenn.Ct.App.1986). &"% (Emphasissupplied).See,also, ActionAdsInc.v._Wm_.B.TannerCo. ,592S.W.2d572(Tenn.Ct. '#& App.1979); Robertsonv.Lyons ,553S.W.2d754(Tenn.Ct.App.1977); _Haury_Ԁ&SmithRealtyCo. (#' v.PiccadillyPartnersI ,802S.W.2d612(Tenn.Ct.App.1990).In EdmondBros.SupplyCo.v. )$( BoyleandAdams ,44S.W.3d530,(Tenn.Ct.App2000)weheld apparentauthorityofanagent |*%) mustbedeterminedbytheactsoftheprincipalandnotthoseoftheagent.(Emphasissupplied). h+&* ЇX XXX   In V.L.NicholsonCo.V._Transcon_ԀInvestmentandFinancialLtd.,Inc. ,595S.W.2d474  (Tenn.1980),oneoftheissueswaswhetheranarchitecthadapparentauthoritytobind_Transcon_.  Thelitigationinvolvedextraworkperformedonaconstructionproject.Suchextraworkwasorally  approvedbythearchitect,whoadmittedlywasnot_Transcon_sactualagent.TheSupremeCourtheld t thatthearchitectwas cloakedwiththeapparentauthoritytoacton_Transcon_sbehalf,includingthe ` meetingswithNicholsonandtheletteraskingthearchitecttocertifysufficientcausetoterminate L  Nicholson.TheCourtfurtherreasonedthat 8  8  8`   [_i]n_Ԁordertodeterminewhetheranagencyhasbeenestablished,the  ` relationshipofthepartiesistobescrutinized,andthefactswill  L  establishagencywhetherthepartiessointendedorunderstood.  8  Apparentauthorityinanagentissuchauthorityastheprincipal $  knowinglypermitstheagenttoassumeorwhichheholdstheagent   outaspossessing...suchauthorityasareasonablyprudentman,   usingdiligenceanddiscretion,inviewofthepartysconduct,would   naturallysupposetheagenttopossess.Ifitcanbeshownthat...the   persondealingwiththeagentknewofthefactsandactingingood p faithhadreasontobelieve,anddidbelieve,thattheagentpossessed \ thenecessaryauthority,thenthegeneralruleonapparentauthority H maybeapplied.(Citationsomitted).4` x` x   TheapparentagencyofMr.Goldman,ifany,mustbegleanedfromthesefactualfindings:  \ (1)theplaintiffcalledthemagazineandstatedthathewantedtoplaceanad;(2)hewasdirectedto H Mr.Goldman,whogavetheplaintiffexplicitinstructionsandinformation,suchasthelocationof 4 theadinthemagazine,therateoftherequiredspace,thedeadlinestosubmittheartwork,andthat   hecouldcontractwiththemagazinebysendingwrittenconfirmation; #  5      ׀(3)theconfirmationwas   sent,andMr.Goldmanretainedit,i.e.,hedidnotforwardittoanyoneelse;(4)Mr.Goldmanatno  timeinformedtheplaintiffthathehadnoauthoritytocontract,notwithstandingthathedid,infact,  telltheplaintiff thatwehaveacontract;and(5)CEO_Tuller_,ofthemagazine,instructedMr.  GoldmantorejecttheadowingtoaconflictwiththeKISSorganization. l   Thedefendantsrelyupon Nicholson insupportoftheirinsistencethatthefactsjustifya D! findingofapparentagency.Theoperativelanguageof Nicholson [ suchauthorityasareasonably 0"  prudentman,usingdiligenceanddiscretion,inviewofthepartiesconduct,wouldnaturallysuppose #l! theagenttopossess]isinappositehereinlightofallthecircumstances. $X"   TheplaintiffadmittedthathehadtwicebeenfiredbytheKISSband.Healsoadmittedthat %0!$ atthetimehecalledthemagazinetoplacehisadaseriousdisputeexistedbetweenhimandKISS &"% whichlaterdevelopedintobitterlitigation.Theplaintifftestified '#&  (#' 8  8`   Q.0 ` x` xUnderthosecircumstances,is_it_ԀasurprisetoyouthatKISS  mightnotwantyoutoplaceanadinaKISSdedicated  magazine? x x 8  8`   A.0 ` x` xNo.t x x 8  8`   Q.0 ` x` xIf,insteadofrejectingyourad,thecompanyhadreceived ` yourartworkandthenrejectedyouradbecauseitdisapproved L  ofyourartwork, #  6      ׀wouldyou...havebelievedthatthe 8  companybrokeanycontractwithyou?$ t x x 8  8`   A.0 ` x` xIdontknow.Itwoulddependonthecircumstancesata  ` giventimeIthink. L  x x   Areasonablyprudentman usingdiligenceanddiscretionwouldhardlyassumetheapparent $  agencyofMr.Goldmaninlightofthecircumstances.Moreover,whentheprincipallearnedofthe   adrequest,theplaintiffwaspromptlyinformedthathisproposedadwasrejected.     Theonlyevidenceofanagencyrelationshipappearsfromthetestimonyofthepurported   agent.ThereisnoevidencethattheprincipalsofthemagazineauthorizedMr.Goldmantomake p anagreementbindingthemagazine,andnoevidencethatthemagazineknowinglypermittedMr. \ Goldmantoassumeauthority,orholdhimselfoutaspossessingtheauthoritytobindthemagazine. H WethereforeconcludethattheplaintifffailedtocarryhisburdenofprovingtheagencyofMr. 4 Goldmantobindthemagazine.Thisconclusionis_dispositive_Ԁofthecaseandtheremainingissues  p are_pretermitted_.Thejudgmentisreversedandthecomplaintisdismissedatthecostsofthe  \ appellant.#X XXX o8# H    `     h     PERCURIUM     `     h      p      x