ÿWPC  ÍuÔªûi'iq&1ÿ#½B~R­ÅNë ”pØK4X~@ áøžžM¿ÏÏ̵Gy ÞÎð¹v½9ïÞ–ìÎvÜÞ),‡`Ï1Adûn!ÜöZï|´õ€ž!dÐ@áM¢91† Ð”y²â?©Rx— yäqvAœZù!yÕ.'ÍŸPݬÍî³Ëqm7|TyÿÀý™ÄÛúó×õŽ«OæMóíM7…ÔAñÙ|):H¿bOŒë]_kÎÀŒ–]ÄFã`@kä^P¼u%+î‰Yã¶âÉQ pfÈ-õê°_‹¾%I"ãýÿ_Þ¦Sø’ÈÏN´F‘þ%–èIA¥ÕøÌ’MML_"'u– h:+ˆ…jÀ´dÛÝ´@âCÌ¢¤%;aqr×2R¹[ÞZl"b¹›uøÅh5¸‡Ûn (?$›ÄÊÇ‚EÉ©ÔûS=íD ÙAw…HZ÷ $H>ƒ"µü[-¸(èCM‹í—Ó5ÄÀÔ3PóÅwÚøa‰hݧ–Ï }vVl^^Åk9UøG†çŸ-]²fÐBØë,Hréûæ#غØÜ‹$Áˆºvᨧÿdòº®÷™>É^}Žž×_ æÏL$"^œ½ù%Ï(À¹b#Á\ % ^ # 0ˆ/ UN· w 4 z Ò— i x mz ‘ Æ™ Æ_ Æ% Æë UN±NÿUN 0DOE““““““““““““““““““““““““b•••••••••••••••••••••••••••••••••••• 0ë Bˆˆ 0¤¥ D3I D-| 0K©© ASôÆG 0¤  0D± A«õ˜HP LaserJet 8000 Series PSØÚØÚÚØØÚ0»,g)â (`£ª$¡¡Ñ€.ÑÑ8€½­»»d»»d8ÑÑ ý ÑÓ  Ó(í€"  Z6Times New Roman RegularUUb)ü¬  ˜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|xÿU‹ÿÀÀÀ Level 1Level 2Level 3Level 4Level 5‚Level 1Level 2Level 3Level 4Level 5„Level 1Level 2Level 3Level 4Level 5…Level 1Level 2Level 3Level 4Level 5(ÖÃ9 Z‹6Times New Roman Regular(ÖÃ9 Z ‹6Times New Roman Regular(#Ã$òòÚ  Ú0Ú  Úóó- ù-(|G2¹$¤¤Ý ƒ£ª!ÝÑ€.ÑÑ8€O4»»d d 8ÑÑ ý ÑÓ  ÓÝ  Ýà  àòòÚ  Ú0Ú  ÚóóÔ€ô"Hò»»Ô d(|3Mú$££Ý ƒ£ª!ÝÑ€.ÑÑ8€O4»»d d 8ÑÑ ý ÑÓ  ÓÝ  ÝVVVV'ÿÿdxd)!ÈÈÈÈdxdx( ±þ$’’ò òFigure€Ú  Ú1Ú  Úó ó^_X`YEþÿ<<CÿÿƒLevel 1Level 2Level 3Level 4Level 5(|3Mú$¢¢Ý ƒ£ª!ÝÑ€.ÑÑ8€O4»»d d 8ÑÑ ý ÑÓ  ÓÝ  Ý($$””ò òÚ  Ú1Ú  Úó óX[Z&OLE 2.0 Box <=8ÿÿÿÿÿÿÿÿÿÿCÿÿ HKKKKÝ ƒ£ª!ÝÑ€.ÑÑ8€P$»»d dÈ8ÑÑ ý ÑÓ  ÓÝ  ÝÔ_ÔÑ  ÑÔ€¼³¸»»»ÔÑ8€>äXXdê»»d 8ÑÑ  Ñà@ü ü ìàԇ³¸ÔIN€THE€COURT€OF€APPEALS€OF€TENNESSEEˆÐ ° Ðà@WW$ìàAT€KNOXVILLEÔ#†¼³¸»îî¼™ #ԈРÖ& ÐÓ  ÓOctober€6,€2000€SessionÐ üL ÐÔ‡Xú´X»¼³¸ÔÌÌÌò òÔ#†¼³¸»XXú´ô#ÔEDMOND€BROTHERS€SUPPLY€COMPANY,€INC.€€€v.€BOYLE€andÐ Ò " ÐADAMS,€òòet€alóó.Ô‡Xú´X»¼³¸Ôó óÐ æ 6 ÐÌà@@½½ìàò ò€Appeal€from€the€Chancery€Court€for€Sullivan€CountyÐ æ 6  Ðà@@øøìàNo.€15„196(M)€€€€€€Hon.€John€S.€Ô_ÔMcLellanÔ_Ô,€III,€ChancellorÐ Ò"  ÐÌFILED€NOVEMBER€6,€2000Ð ªú  Ðà@@ìì*ìàßA€V) °°` d€÷E<•` AßÐ –æ  ÐÌà@@TTìàNo.€E1999„027310COA„R3„CVÐ ‘á  ÐÌßA€V) °°` dE<h` AßÐ i¹ Ðó óÌÌÓ  ÓEdmond€Brothers€Supply€Company,€Inc.€(ð ðPlaintiffðð),€a€building€materials€supplier,€sold€materialsÐ P  Ðto€a€contractor€for€use€in€a€construction€project€for€Bristol€Regional€Womenððs€Center,€P.C.,Ð <Œ Ð(ð ðDefendantðð).€€Plaintiff€did€not€send€statements€to€Defendant€because€the€contractor€instructedÐ (x ÐPlaintiff€not€to€bill€Defendant.€€When€the€project€was€completed,€the€contractor€took€the€PlaintiffððsÐ d Ðfinal€bill€to€Defendant€for€payment.€€Defendantððs€office€manager€sent€a€check€in€full€payment€to€Ð P ÐPlaintiff,€but€Defendant€stopped€payment€on€the€check€and€refused€to€pay€the€bill.€€Plaintiff€broughtÐ ì< Ðsuit€against€Defendant,€individual€defendants,€and€a€partnership€to€enforce€a€Ô_ÔmaterialmenÔ_Ôððs€lien€forÐ Ø( Ðthe€outstanding€debt.€€All€defendants€denied€Ô_ÔenforceabilityÔ_Ô€of€the€lien.€€The€Trial€Court€dismissedÐ Ä Ðthe€action€to€enforce€the€Ô_ÔmaterialmenÔ_Ôððs€lien,€dismissed€the€action€against€the€individual€defendantsÐ ° Ðand€the€partnership,€and€granted€judgment€to€Plaintiff€against€Defendant€on€an€agency€theory.€€TheÐ œì ÐTrial€Court€found€that€the€contractor€had€authority€to€make€the€purchases€for€Defendant€and€thatÐ ˆØ Ðsince€Defendant€had€used€the€materials€in€its€building,€Defendant€was€obligated€to€pay€for€them,Ð t Ä Ðdespite€its€instruction€to€the€contractor€not€to€charge€any€materials€for€the€project.€€Defendant€appealsÐ `!°  Ðthis€judgment.€€We€hold€that€the€contractor€had€no€actual,€implied,€apparent,€or€ostensible€authorityÐ L"œ! Ðto€charge€building€materials€to€Defendant.€€We€reverse€the€judgment€of€the€Trial€Court,€and€dismissÐ 8#ˆ" Ðthe€Complaint€against€Defendant.€€€Ð $$t# ÐÓÝÓÌò òTenn.€R.€App.€Rule€3;€Judgment€of€the€Trial€Court€Reversed;€Case€Remanded.ó óÐ ü%L!% ÐÌòòÓ  ÓÔ#†¼³¸»àXú´—#ÔÔ‡Xú´X.¼³¸ÔD.€Michael€Ô_ÔSwineyÔ_Ô,€J.óó,€delivered€the€opinion€of€the€court,€in€which€òòHouston€M.€Ô_ÔGoddardÔ_Ô,€Ô_ÔP.J.Ô_ÔóóÐ Ô'$#' Ðand€òòCharles€D.€Susano,€Jr.€J.óó,€joined.Ð À($( ÐÌThomas€C.€Ô_ÔJesseeÔ_Ô,€Johnson€City,€Tennessee,€for€the€Appellant€Boyle€and€Adams,€et€al.Ð ˜*è%* ÐÌDavid€S.€Ô_ÔBunnÔ_Ô,€Bristol,€Tennessee,€for€the€Appellee,€Edmond€Brothers€Supply€Company,€Inc.€Ð p,À', ÐÓ Óò òÐ \-¬(-ý ÐÔ_ÔOPINIONó óÔ#†¼³¸»XXú´F #ÔÔ‡Xú´X»¼³¸ÔÐ ° ÐÌòòóóÔ#†¼³¸»XXú´#ÔÔ‡Xú´X»¼³¸ÔÓ  Óà@ÛÛ%ìàò òòòBackgroundóóó óÔ#†¼³¸»XXú´a#ÔÔ€Xú´X»¼³¸ÔˆÐ ˆØ ÐÌà  àà ` àEdmond€Brothers€Supply€Company,€Inc.,€Plaintiff,€is€a€building€materials€supplierÐ `° Ðin€Bristol,€Tennessee.€€Boyle€and€Adams€is€a€medical€partnership€whose€partners€are€Drs.€Gary€C.Ð L œ ÐBoyle€and€Wesley€F.€Adams,€Jr.€€The€partnership€operates€Bristol€Regional€Womenððs€Center,€P.C.Ð 8 ˆ Ð(Defendant).€€Ms.€Leisa€Boyle€is€the€Office€Manager€of€the€Womenððs€Center.€€Ð $ t ÐÌà  àà ` àOn€Halloween€night€1995,€an€arson€fire€caused€major€damage€to€the€Womenððs€Center,Ð ü L  Ðessentially€gutting€the€second€floor€and€causing€substantial€water€damage€to€the€first€floor.€€Dr.€BoyleÐ è 8  Ðcontacted€Mr.€Thomas€David€Wine,€a€contractor€who€had€worked€for€him€on€numerous€otherÐ Ô$  Ðprojects,€and€asked€him€to€oversee€reconstruction€of€the€building.€€Dr.€Boyle€was€anxious€toÐ À  Ðaccomplish€the€repair€as€quickly€as€possible.€€Mr.€Wine€contacted€another€builder,€Mr.€Craig€Griffin,Ð ¬ü  Ðð ðbecause€his€specialty€was€insurance.ðð€€Mr.€Wine€set€up€a€meeting€between€Dr.€Boyle,€Dr.€BoyleððsÐ ˜è  Ðattorney,€Mr.€Wine,€and€Mr.€Griffin,€at€which€time€€Mr.€Griffin€agreed€to€work€on€the€project€withÐ „Ô  ÐMr.€Wine.€€The€two€building€contractors€were€told€to€hire€laborers,€who€would€be€paid€weekly€byÐ pÀ ÐMs.€Boyle€according€to€time€sheets€provided€by€Mr.€Wine€or€Mr.€Griffin.€€They€were€also€told€thatÐ \¬ Ðthis€was€to€be€a€ð ðcash€job,ðð€and€that€the€Office€Manager€would€supply€them€with€cash€weekly€toÐ H˜ Ðpurchase€the€needed€materials.€€Dr.€Boyle€testified€that€he€instructed€all€the€contractors€involved€thatÐ 4„ Ðthey€were€not€to€purchase€materials€on€credit.€Ð  p ÐÌà  àà ` àDuring€the€first€part€of€the€project,€Mr.€Wine€did€demolition,€and€Ms.€Boyle€gave€himÐ øH Ðcash€to€purchase€any€supplies€he€needed.€€Mr.€Wine€testified€that,€ð ð.€.€.€as€it€got€a€little€moreÐ ä4 Ðcomplicated,€I€let€Craig€Griffin€go€to€Leisa€and€whatever€it€was€we€needed,€she€would€write€a€checkÐ Ð  Ðfor€the€amount€and€give€him€a€draw€to€pay€for€all€the€help.ðð€€Both€Mr.€Wine€and€Ms.€Boyle€testifiedÐ ¼  Ðthat€neither€Mr.€Wine€nor€Mr.€Griffin€ever€was€authorized€to€charge€any€building€supplies€to€theÐ ¨ø ÐWomenððs€Center€or€to€the€doctors€individually.€€Ms.€Boyle€initially€gave€Mr.€Griffin€a€check€forÐ ”ä Ð$3,500€to€purchase€building€supplies€and€testified€that€€Mr.€Griffin€ð ðonly€had€authority€to€buy€withÐ €Ð Ðthe€amount€of€money€that€he€had€on€a€weekly€basis.ðð€€Mr.€Griffin€testified€that€he€would€furnish€theÐ l¼ Ðbillings€on€weekly€or€biweekly€basis€and€that€he€would€be€reimbursed€if€he€had€spent€over€what€heÐ X ¨ Ðhad€in€the€account€or€that€they€would€advance€the€money€to€him€for€operating€capital.€Ð D!” Ðà  àà ` àÌà  àà ` àWhen€Mr.€Griffin€first€approached€Plaintiff€to€purchase€building€supplies€for€theÐ #l! Ðproject,€he€gave€Plaintiff€the€$3,500€Ms.€Boyle€had€given€him.€€Plaintiff€set€up€an€account€in€theÐ $X" Ðname€of€Bristol€Womenððs€Center€with€a€credit€of€$3,500€against€which€Griffinððs€purchases€were€toÐ ô$D # Ðbe€made.€€At€Mr.€Griffinððs€instruction,€the€account€was€annotated€by€Plaintiff€€that€no€bills€were€toÐ à%0!$ Ðbe€sent€to€the€Womenððs€Center.€€During€construction,€Mr.€Griffin€purchased€building€materials€fromÐ Ì&"% ÐPlaintiff€in€the€amount€of€$24,864.70.€€In€addition€to€the€first€$3,500,€Ms.€Boyle€later€gave€Mr.Ð ¸'#& ÐGriffin€another€$2,000€to€pay€for€building€supplies€received€from€Plaintiff,€which€Mr.€Griffin€appliedÐ ¤(ô#' Ðto€the€account.€€Mr.€Griffin€later€returned€material€for€a€credit€of€$309.38.€€When€Mr.€Griffinððs€partÐ )à$( Ðof€the€project€was€complete,€he€gave€Ms.€Boyle€the€invoices€and€a€final€bill€from€Plaintiff€in€theÐ |*Ì%) Ðamount€of€$19,055.32.€€Ms.€Boyle€complained€to€Mr.€Griffin€that€the€bill€was€too€high,€butÐ h+¸&* Ðnevertheless,€she€wrote€a€check€for€$18,557.05€and€mailed€it€to€Plaintiff.€€After€Ms.€Boyle€discussedÐ ° Ðthe€matter€with€Dr.€Boyle€that€day,€Dr.€Boyle€stopped€payment€on€the€check€and€refused€to€pay€anyÐ œì Ðof€the€amount€due.€€Plaintiff,€represented€by€former€counsel,€then€filed€this€suit€against€the€individualÐ ˆØ Ðdefendants,€the€partnership,€and€Bristol€Regional€Womenððs€Center,€P.C.€to€recover€the€balanceÐ tÄ Ðowing€on€the€outstanding€account€by€enforcement€of€a€materialmenððs€lien.€€Defendants€answeredÐ `° Ðasserting€that€Plaintiffððs€suit€should€be€dismissed.€€Ð L œ Ðà  àà ` àÌà  àà ` àAt€trial,€Mr.€Marvin€Ferrell,€salesman€for€Plaintiff,€testified€that€he€set€up€the€accountÐ $ t Ðin€the€name€of€Bristol€Regional€Womenððs€Center€and€credited€$3,500€to€the€account€at€Mr.€GriffinððsÐ  ` Ðinstruction.€€He€never€received€authorization€from€any€physician€or€any€employee€of€the€WomenððsÐ ü L  ÐCenter€to€establish€an€account€for€the€Womenððs€Center.€€Although€it€was€Plaintiffððs€routine€businessÐ è 8  Ðpractice€to€obtain€such€authorization€from€a€property€owner,€Plaintiff€did€not€do€so€here.€€None€ofÐ Ô$  Ðthe€defendants€ever€told€him€that€Mr.€Griffin€was€authorized€to€charge€anything€to€an€account€in€theÐ À  ÐWomenððs€Centerððs€name.€€He€also€stated€that€the€Womenððs€Center€was€never€sent€monthlyÐ ¬ü  Ðstatements,€although€it€was€Plaintiffððs€usual€€procedure€to€send€such€bills.€€Mr.€Ferrellððs€first€contactÐ ˜è  Ðwith€Ms.€Boyle€was€after€the€project€was€finished€and€Plaintiffððs€bill€remained€unpaid.€Ð „Ô  ÐÌà  àà ` àDr.€Gary€Boyle,€the€self„described€supervisor€of€the€rebuilding€project,€testified€atÐ \¬ Ðtrial€about€the€purchasing€of€building€materials:Ð H˜ ÐÌà8  àà8` Ð Ð àQ:à8¸ ` x` xàAt€any€time€did€you€authorize€anyone€on€the€job€siteÐ  p Ðto€open€a€charge€account€at€any€supplier?Ð \¸ ¸  ÐÌà8  àà8` Ð Ð àA:à8¸ ` x` xàNot€only€would€the€answer€to€that€be€no,€the€answerÐ ä4 Ðwould€be€that€I€specifically€instructed€everyone€that€IÐ Ð  Ðhired€that€they€were€to€charge€nothing.€€Again,€theyÐ ¼  Ðnot€only€were€not€told€to,€there€were€specifically€told€Ð ¨ø Ðnot€to.€€Ð”ä¸ ¸  ÐÌà8  àà8` Ð Ð àQ:à8¸ ` x` xàAnd€how€often€were€they€to€turn€in€€„€„€they€beingÐ l¼ ÐWine€and€Stanley€and€Griffin€„€„€how€often€were€theyÐ X ¨ Ðto€turn€in€their€receipts,€their€hours?€€How€were€theyÐ D!” Ðgoing€to€get€paid?Ð0"€ ¸ ¸  ÐÌà8  àà8` Ð Ð àA:à8¸ ` x` xàWeekly,€and€again,€they€were€going€to€get€cashed€out.€Ð $X" ÐIn€other€words,€it€was€going€to€be€a€cash€paid€job.Ðô$D #¸ ¸  Ðà  àÌà  àà ` àOn€May€14,€1997,€the€Trial€Court€filed€its€Memo€Opinion,€in€which€the€Trial€CourtÐ Ì&"% Ðfound€that€Mr.€Griffin€was€hired€by€Dr.€Boyle€to€purchase€materials€and€was€the€agent€of€theÐ ¸'#& ÐWomenððs€Center€as€to€the€purchase€of€those€materials.€€The€Trial€Court€found,€among€other€things,€Ð ¤(ô#' Ðthat€Mr.€Griffin€had€authority€to€purchase€materials€from€Plaintiff€and€that€the€Womenððs€CenterÐ )à$( Ðstopped€payment€on€its€check€in€full€payment€for€those€materials€after€a€phone€call€from€theÐ |*Ì%) ÐWomenððs€Centerððs€attorney€to€Plaintiffððs€Vice„President.€€The€Trial€Court€further€found€that€theÐ h+¸&* ÐWomenððs€Center€had€knowledge€of€Mr.€Griffinððs€making€purchases€from€Plaintiff€and€ð ðtook€noÐ ° Ðaction€to€place€Plaintiff€on€notice€of€Defendantsðð€ððno€credit€purchasesðð€arrangement€allegedly€madeÐ œì Ðwith€Mr.€Griffin.€€The€Trial€Court€opined€that€the€primary€dispute€appeared€to€be€the€method€ofÐ ˆØ Ðpurchasing€materials€by€credit€rather€than€with€cash.€€The€Trial€Court€found€that€Plaintiff€had€failedÐ tÄ Ðto€prove€delivery€to€the€Womenððs€Center€of€certain€materials,€and€declined€to€award€PlaintiffÐ `° Ðjudgment€for€those€invoices.€€The€Trial€Court€dismissed€the€action€against€the€Boyle€and€AdamsÐ L œ Ðpartnership,€Gary€Boyle,€Leisa€Boyle,€Deborah€Adams€and€Wesley€Adams€individually,€andÐ 8 ˆ Ðdismissed€the€action€to€enforce€the€materialmenððs€lien.€€The€Trial€Court€granted€judgment€to€theÐ $ t ÐPlaintiff€against€Defendant€Bristol€Regional€Womenððs€Center,€P.C.€in€the€sum€of€$17,426.95,€plusÐ  ` Ðprejudgment€interest€and€statutory€post„judgment€interest,€discretionary€costs,€mediation€expense,Ð ü L  Ðand€trial€court€reporter€expenses.€€Only€the€judgment€against€Bristol€Regional€Womenððs€Center,€P.C.Ð è 8  Ðis€on€appeal.€Ð Ô$  ÐÌà@))%ìàò òòòDiscussionˆÐ ¬ü  ÐÌà  àà ` àó óóóDefendant€appeals€and€raises€the€following€issues:Ð „Ô  ÐÌà8  àà8` Ð Ð à1.à0¸ ` x` xàThe€Trial€Court€erred€in€finding€that€Craig€Griffin€was€anÐ \¬ Ðagent€of€The€Bristol€Regional€Womenððs€Center€and€hadÐ H˜ Ðauthority€to€purchase€materials€on€credit€from€the€plaintiff€forÐ 4„ Ðthe€benefit€of€the€defendant.à  àÐ p¸ x¸ x ÐÌà8  àà8` Ð Ð à2.à0¸ ` x` xàThe€Trial€Court€erred€in€finding€that€the€plaintiff€met€itsÐ øH Ðburden€of€proof€concerning€the€sale€to,€delivery€to,€and€use€ofÐ ä4 Ðbuilding€materials€by€the€defendant€and€the€amount€owed€byÐ Ð  Ðthe€defendant€based€on€said€sales.м ¸ x¸ x ÐÌà8  àà8` Ð Ð à3.à0¸ ` x` xàThe€Trial€Court€erred€in€awarding€prejudgment€interest€on€theÐ ”ä Ðamount€awarded€to€the€plaintiff.Ѐи x¸ x ÐÓÓÌÓÓà  àà ` àOur€review€is€òòde€novoóó€upon€the€record,€accompanied€by€a€presumption€of€theÐ D!” Ðcorrectness€of€the€findings€of€fact€of€the€Trial€Court,€unless€the€preponderance€of€the€evidence€isÐ 0"€  Ðotherwise.€€Tenn.€R.€App.€P€13(d);òò€Alexander€v.€€Inman,€óó974€S.W.2d€689,€692€(Tenn.€1998).€Ð #l! ÐÌà  àà ` àDefendant€first€raises€the€issue€of€whether€the€Trial€Court€erred€in€finding€that€CraigÐ ô$D # ÐGriffin€was€an€agent€of€The€Bristol€Regional€Womenððs€Center€with€authority€to€purchase€materialsÐ à%0!$ Ðon€credit€from€Plaintiff€for€the€benefit€of€Defendant.€€The€finding€of€the€Trial€Court€was€that€Mr.Ð Ì&"% ÐGriffinððs€authority€to€purchase€materials€from€Plaintiff€for€Defendant€obligated€Defendant€to€payÐ ¸'#& ÐPlaintiff€for€those€materials,€despite€the€fact€that€Mr.€Griffin€was€specifically€instructed€not€to€chargeÐ ¤(ô#' Ðany€materials€to€the€Defendant.€€Ð )à$( Ðâ âÐ |*Ì%) Ðà  àà ` àAs€stated€in€3€C.J.S.€òòAgency€óóðð€410€(1973),€ð ð[a]€principal€is€bound€neither€by€contractsÐ ° Ðâ âmade€by€a€person€not€his€agent,€nor€by€those€of€his€agent€beyond€the€scope€of€his€actual€and€apparentÐ œì Ðauthority,€which€he€has€not€ratified€and€is€not€estopped€to€deny.ðð€€òòBells€Banking€Co.€v.€JacksonÐ ˆØ ÐCentre,€Inc.,€óó938€S.W.2d€421,€424€(Tenn.€Ct.€App.€1996).€€Apparent€authority€of€an€agent€is€suchÐ tÄ Ðauthority€as€the€principal€knowingly€permits€the€agent€to€assume€or€which€the€principal€holds€theÐ `° Ðagent€out€as€possessing.€€òòRich€Printing€Co.€v.€McKellarððs€Estate,€óó330€S.W.2d€361,€376€(Tenn.€Ct.Ð L œ ÐApp.€1959).€€Apparent€authority€of€an€agent€must€be€determined€by€the€acts€of€the€principal€and€notÐ 8 ˆ Ðthose€of€the€agent.€€òòDurham€v.€Wadell€&€Reed,€Inc.,€óó723€S.W.2d€129,€130€(Tenn.€Ct.€App.€1986).€Ð $ t ÐOstensible€authority€is€such€authority€as€a€principal€intentionally€or€by€lack€of€ordinary€care€causesÐ  ` Ðor€allows€a€third€person€to€believe€the€agent€possesses.€€It€is€essential€to€ostensible€authority€that€theÐ ü L  Ðprincipal€hold€the€agent€out€to€the€public€as€possessing€sufficient€authority€to€embrace€the€particularÐ è 8  Ðact€in€question€when€the€agent€does€not€actually€have€such€authority,€or€allows€the€agent€to€exerciseÐ Ô$  Ðsuch€authority€even€though€not€actually€granted,€and€the€person€dealing€with€the€agent,€acting€inÐ À  Ðgood€faith,€believed€or€had€reason€to€believe€the€agent€had€the€necessary€authority.€€When€an€agentÐ ¬ü  Ðacts€within€the€scope€of€his€apparent€or€ostensible€authority,€the€principal€cannot€prevail€against€aÐ ˜è  Ðthird€party€unless€it€shows€that€the€third€party€knew€or€had€reason€to€believe€the€agent€did€not€haveÐ „Ô  Ðthe€claimed€authority.òò€€Intersparex€Leddin€KG€v.€Al„Hadda,€óó852€S.W.2d€246,€247€(Tenn.€Ct.€App.Ð pÀ Ð1992).€€Ð \¬ ÐÌà  àà ` àIn€this€case,€there€is€no€proof€in€the€record€that€Defendant€gave€Mr.€Griffin€actualÐ 4„ Ðauthority€to€establish€an€account€in€the€name€of€the€Womenððs€Center,€charge€building€materials€toÐ  p Ðthe€Womenððs€Center,€and€withhold€sending€monthly€statements€to€Defendant.€€In€fact,€theÐ  \ Ðpreponderance€of€the€evidence€is€to€the€contrary.€€Nor€did€Defendant€ever€hold€Mr.€Griffin€out€asÐ øH Ðhaving€authority€to€establish€such€a€credit€account€and€make€charges.€€The€testimony€at€trial€showsÐ ä4 Ðthat€none€of€Plaintiffððs€employees€ever€communicated€with€Defendant€until€the€project€was€finished.€Ð Ð  ÐPlaintiff€could€onerate€Defendant€for€the€debt€if€it€could€show€that€Defendant€ð ðby€lack€of€ordinaryÐ ¼  Ðcareðð€caused€or€allowed€Plaintiff€to€believe€that€Mr.€Griffin€had€the€authority€to€charge€purchases.€Ð ¨ø ÐThe€preponderance€of€the€evidence€is€otherwise.€€Plaintiffððs€employees€testified€that€its€normalÐ ”ä Ðprocedures€would€have€prevented€this€scenario,€and€that€it€exercised€poor€business€judgment€inÐ €Ð Ðfailing€to€follow€its€normal€procedures.Ð l¼ Ѐà  àÐ X ¨ Ðà  àà ` àIt€is€uncontested€that€Mr.€Griffin€was€authorized€to€purchase€construction€materialsÐ D!” Ðfor€Defendantððs€project€and€that€Defendantððs€Office€Manager€on€occasion€reimbursed€him€for€theÐ 0"€  Ðpurchase€of€such€construction€materials€upon€his€presentation€of€receipts.€€None€of€the€contractorsÐ #l! Ðwho€testified€at€trial€indicated€that€they€were€authorized€to€establish€any€accounts€in€the€name€ofÐ $X" ÐDefendant€or€to€purchase€any€building€materials€on€credit.€€Defendantððs€Office€Manager€routinelyÐ ô$D # Ðgave€ð ðworking€moneyðð€to€the€contractors,€which€they€used€to€buy€materials€with€cash,€and€onÐ à%0!$ Ðoccasion€she€reimbursed€them€for€purchases€they€had€made€with€their€own€resources€when€theyÐ Ì&"% Ðbrought€in€receipts.€€At€trial,€the€Office€Manager€testified€that€Mr.€Griffin€ð ðonly€had€authority€to€buyÐ ¸'#& Ðwith€the€amount€of€money€that€he€had€on€a€weekly€basis€.€.€.€he€would€come€back€and€get€someÐ ¤(ô#' Ðmore.ðð€€Dr.€Boyle€testified€that€Mr.€Griffin€was€instructed€not€to€purchase€any€materials€on€creditÐ )à$( Ðand€ð ðto€charge€nothingðð€as€this€was€to€be€a€ð ðcash€job.ððÐ |*Ì%) Ðà  àà ` àÐ h+¸&* Ðà  àà ` àSuppliers€who€are€creditors€in€building€projects€normally€have€recourse€under€theÐ ° ÐTennessee€Materialmenððs€Liens€statutes,€Tenn.€Code.€Ann.€ðð€66„11„101,€òòet€seqóó.,€when€a€contractorÐ œì Ðsuch€as€Mr.€Griffin€purchases€building€materials€on€credit€and€the€supplier€is€never€paid.€If€theÐ ˆØ Ðsupplier€complies€with€the€requirements€of€the€Materialmenððs€Liens€statutes,€the€supplier€can€perfectÐ tÄ Ðits€lien.€€If€the€supplier€does€not€comply€with€the€requirements€of€the€statutes,€its€lien€is€lost.€€Ð `° ÐÌà  àà ` àHere,€Plaintiff€filed€suit€to€enforce€a€materialmenððs€lien.€€The€Trial€Court€foundÐ 8 ˆ ÐPlaintiff€had€not€satisfied€the€requirements€of€the€Materialmenððs€Liens€statutes€and€dismissed€theÐ $ t Ðaction€to€enforce€the€lien.€Nevertheless,€the€Trial€Court€found€that€whether€the€building€materialsÐ  ` Ðwere€purchased€with€cash€or€on€credit€was€not€relevant€to€the€issue€of€agency.€€We€disagree.€€To€soÐ ü L  Ðhold€would€establish€a€precedent€contrary€to€the€purpose€and€procedures€of€the€Materialmenððs€LiensÐ è 8  Ðstatutes.€€The€Materialmenððs€Liens€statutes€provide€certain€protections€for€both€a€supplier€and€aÐ Ô$  Ðproperty€owner.€€If€the€supplier€fails€to€comply€with€the€requirements€of€the€Materialmenððs€LiensÐ À  Ðstatutes,€the€supplier€has€no€materialmenððs€lien€against€the€ownerððs€property.€€To€circumvent€thatÐ ¬ü  Ðstatute€by€permitting€recovery€against€the€ð ðprincipalððò ò€ó óunder€an€agency€theory€upon€showing€only€thatÐ ˜è  Ðthe€contractor€had€authority€to€purchase€materials,€although€not€on€credit,€would€effectively€amendÐ ˆØ  Ðthe€statute€by€judicial€decree.€€Plaintiffððs€position,€if€adopted,€would€result€in€property€owners€beingÐ tÄ Ðliable€to€suppliers€for€materials€purchased€by€a€contractor€even€if€that€contractor€was€specificallyÐ `° Ðinstructed€not€to€purchase€the€materials€on€credit,€the€owner€had€paid€the€contractor€for€thoseÐ Lœ Ðmaterials,€and€the€contractor€had€not€satisfied€the€requirements€of€the€Materialmenððs€Liens€statutes.€Ð 8ˆ ÐSuch€a€holding€would€give€far€more€protection€to€a€supplier,€and€correspondingly€less€protection€toÐ $t Ða€property€owner,€than€that€provided€for€by€Tennessee€Materialmenððs€Liens€statutes€and€establishedÐ ` Ðagency€law.€€Ð üL ÐÌà  àà ` àFrom€the€record€before€us,€the€evidence€preponderates€in€favor€of€a€finding€that€Mr.Ð Ô$ ÐGriffinððs€purchasing€the€materials€from€Plaintiff€on€credit€was€beyond€the€scope€of€his€actual,Ð À Ðapparent,€implied,€or€ostensible€authority€as€Defendantððs€agent.€€Plaintiffððs€only€recourse€for€paymentÐ ¬ü Ðof€Mr.€Griffinððs€charges€lies€in€an€action€against€Mr.€Griffin.€€Our€holding€on€this€issue€makes€itÐ ˜è Ðunnecessary€to€address€the€remaining€issues€raised€by€Defendant,€which€are€pretermitted€as€moot.Ð „Ô ÐÌÔ‡Xú´XXXú´Ôà@  %ìàò òòòConclusionóóó óˆÐ \ ¬ ÐÌà  àà ` àThe€judgment€of€the€Trial€Court€is€reversed,€and€this€cause€is€remanded€to€the€TrialÐ 4"„  ÐCourt€for€such€further€proceedings€as€may€be€required,€if€any,Ô#†Xú´XXXú´^#Ô€consistent€with€this€Opinion,€and€forÐ  #p! Ðcollection€of€the€costs€below.€€The€costs€on€appeal€are€assessed€against€the€Appellee,€EdmondÐ  $\" ÐBrothers€Supply€Company,€Inc.Ð ø$H # ÐÌÌÌÌÌà  àà ` àà ¸ àà  àà h àà À àà  à___________________________________€Ð €*Ð%) Ðà  àà ` àà ¸ àà  àà h àà À àà  àD.€MICHAEL€SWINEY,€JUDGE