ÿWPCÁ !# ÞUNé %7 0(=ew@m4­ÁÐ mÒé 0Jñ 0T; 0^ 0hí 0rU 0|Ç 0†C 0É 1uY 0dÎU>2v~pvÓî ˜HP LaserJet 4SiHPPCL5MS,ü,,,,,ü0nLdÒ(ÈhH  Z 6Times New Roman RegularX($¡¡ ÓÔDÕÖDרDÙVÚVÛÜPn~<$3|xÜÿU‹ÿÀÀÀ 2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)P ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ< Œ 9p`(&Times New RomanPtPtHHÚ(ÿáÿâùFG(üHHÚ(d'hStyl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$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 ÒÝ ƒ!ÝÔ . ÔÔ€ÔÝ  ÝÓ  ÓÑ\R AØ'\Ñò ò›Þ ÞÌà@ àIN€THE€COURT€OF€APPEALS€OF€TENNESSEEó óÌà@ àœò òAT›€JACKSON€€€Ìà àà àà àòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€ÌÌóóÌK„TESTING€œLAB,›€INC.,à àœà àà à)›à àÌà àà àà àà àà àà à)à àÌà àó óPlaintiff/Appellee,€ò òà àà àà à)à àó óShelby€Equity€œNo.€107837›€€€€Ìà àà àà àà àà àà àò ò)Ìvs.à àà àà àà àà àà à)à à€Ìà àà àà àà àà àà à)ÌESTATE€OF€LARRY€L.€KENNON,€€€€à à)à àó óAppeal€No.€02A01„9703„CH„00064Ìò òBRENDA€L.€KENNON,€EXECUTRIX,à à)Ìà àà àà àà àà àà à)Ìó óà àDefendant/Appellant.à àò òà àà à)à àÌó óòòÌóóò òÌ€€€ÌÌÌà@ àó óAPPEAL€FROM€THE€CHANCERY€COURT€OF€SHELBY€COUNTYÌà@ àAT€MEMPHIS,€TENNESSEEÌÌÌÌà@ àTHE€HONORABLE€D.€J.€ALISSANDRATOS,€CHANCELLOR€òòÌÌÌFor€the€Plaintiff/Appelleeóó:òòà àà àà àFor€the€Defendant/Appellantóó:òòÌóóÌLouis€R.€Lucas€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€à àWarner€Hodges,€III€€€€€€€€ÌRussell€X.€Thompson€€à àà àà àGermantown,€TennesseeÌMemphis,€TennesseeÌ€€€€€€€€€€€€€€€€€€ÌÌò òÌÌà àà àà àà àà àà àAFFIRMED€IN€PART€AND€Ìà àà àà àà àà àà àREVERSED€IN€PARTÌÌÌÌÌà àà àà àà àà àà àó óHOLLY€KIRBY€LILLARD,€J.ÌÌÌÌCONCUR:ÌÌòòÌóóW.€FRANK€CRAWFORD,€P.J.,€W.S.ÌÌÌALAN€E.€HIGHERS,€J.ÇØØÙ  ÙÓÓÑ7€lðXXdðXXdð7ÑÑ  Ñà@ àò òOPINIONó óÌà àAt€issue€in€this€case€is€a€stock€redemption€agreement€executed€by€the€owners€of€a€closely„held€corporation.€€The€Chancellor€issued€a€mandatory€injunction€instructing€the€holder€of€the€stockÏcertificates€to€abide€by€the€stock€redemption€agreement€and€turn€over€the€shares€to€the€corporation,Ïand€the€holder€appealed.€€We€affirm€in€part€and€reverse€in€part.Ìà àPlaintiff/Appellee€K„Testing€Laboratory,€Inc.€(ð ðK„Testingðð),€is€a€closely„held€TennesseeÏcorporation€with€offices€in€Memphis,€Tennessee.€€K„Testing€is€currently€owned€by€twoÏshareholders,€Bernie€Lee€Keating€and€the€estate€of€Larry€L.€Kennon,€Brenda€L.€Kennon,ÏExecutrix.€€Each€shareholder€holds€fifty€percent€of€the€capital€stock.€€Before€the€death€of€LarryÏKennon,€he€and€Keating€entered€into€a€ð ðStock€Restriction€and€Redemption€Agreementðð€(ð ðSRRAðð)Ïwhich€established€a€procedure€by€which,€upon€the€death€of€either€stockholder,€the€CorporationÏwould€purchase€the€decedentððs€stock€for€a€previously€ascertained€value.€€This€value€could€beÏmodified€by€mutual€agreement,€and€was€modified€in€1992€when€the€parties€increased€the€value€ofÏeach€shareholderððs€interest€to€$€315,000.00.€€Ìà àLarry€Kennon€died€on€April€9,€1996,€leaving€a€will€which€was€admitted€to€Probate€inÏShelby€County.€€Brenda€Kennon€was€named€as€Executrix.€€Pursuant€to€the€SRRA,€K„TestingÏmade€a€tender€offer€to€Brenda€Kennon€for€the€shares€of€stock€held€by€the€estate€of€Larry€KennonÏsoon€after€his€death.€€At€this€time,€Brenda€Kennon€asked€to€see€the€books€of€the€corporation.€ÏKeating€refused.€€The€œnegotiations›€broke€down,€and€on€July€11,€1996,€K„Testing€filed€a€lawsuit€toÏenforce€the€SRRA€against€Kennonððs€estate.€€œÌà àOn›€the€same€date€the€Complaint€in€this€action€was€filed,€the€Chancellor€issued€an€Order€toÏShow€Cause€and€for€Permission€to€Commence€Discovery€Prior€to€Answer.€€This€Order€scheduledÏa€final€hearing€for€July€26,€1996€and€also€granted€K„Testing€permission€to€take€the€deposition€ofÏBrenda€Kennon€upon€five€daysðð€notice.€€Brenda€Kennon€filed€a€motion€to€quash€her€deposition€onÏJuly€15,€1996.€€This€motion€was€denied€and€Brenda€Kennonððs€deposition€took€place€on€July€22,Ï1996.€€A€hearing€was€held€on€July€26,€1996.€On€that€date,€the€Chancellor€entered€an€order€grantingÏa€mandatory€injunction€which€required€Brenda€Kennon€to€immediately€transfer€the€decedentððsÍstock€to€K„Testing€in€exchange€for€the€sum€of€€œ$›€œ307,500.›€€K„Testing€then€filed€a€motion€forÏattorneysðð€fees€and€costs€in€this€matter.€€The€Chancellor€granted€K„Testingððs€request,€over€BrendaÏKennonððs€objection,€on€August€23,€1996.€€Brenda€Kennon€filed€a€motion€for€new€trial€and€aÏmotion€to€allow€filing€of€œcounter„complaint.›€€The€Chancellor€denied€both€motions,€and€BrendaÏKennon€appealed€to€this€Court.Ìà àWe€review€the€Chancellorððs€findings€òòò òde€novoó óóó,€with€a€presumption€of€correctness€of€theÏfindings€of€fact.€Tenn.€R.€Civ.€P.€13(d).€Ìà àThe€Appellant€raises€two€issues€on€appeal.€€First,€she€argues€that€the€Chancellor€erred€inÏgranting€ð ðwhat€was€in€effect€a€summary€œjudgment›€only€eleven€days€after€the€complaint€was€œfiled,ðð›Ïand€without€adequate€opportunity€to€allow€her€to€properly€investigate€and€develop€her€defenses€andÏcounter„complaint.€While€Appellant€raises€legitimate€questions,€this€argument€was€not€raisedÏbefore€the€Chancellor€until€thirty€days€after€the€hearing€of€July€26,€in€a€motion€for€new€trial€filed€byÏBrenda€Kennon.€€Because€Kennon€never€requested€an€extension€of€time€or€a€resetting€of€theÏhearing€date,€she€cannot€now€argue€that€the€expedited€hearing€was€error.€€€œð ð[T]his›€Court€can€onlyÏconsider€such€matters€as€were€brought€to€the€attention€of€the€trial€court€and€acted€upon€orÏ[pretermitted]€by€the€trial€court.ðð€òòò òStewart€Title€Guar.€Co.€v.€F.D.I.C.ó óóó,€936€S.W.2d€266,Ï270„71€(Tenn.€App.€1996)€(quoting€òòò òIrvin€v.€Binkleyó óóó,€577€S.W.2d€677,€679€(Tenn.€App.Ïœ1978));›€œòòò òsee€also€Thomas›€v.€Noeó óóó,€301€S.W.2d€391,€394€(Tenn.€App.€1956);€òòò òFoley€v.ÏDayton€Bank€&€Trustó óóó,€696€S.W.2d€356,€359€(Tenn.€App.€1985)).€Ìà àAppellant€argues€that€the€trial€court€abused€œits›€discretion€in€denying€Kennonððs€motion€for€aÏnew€trial.€€In€Tennessee,€ð ðthe€granting€or€denying€of€a€new€trial€lies€largely€in€the€discretion€of€theÏtrial€judge.ðð€ò òòòMize€v.€Skeenóóó ó,€468€S.W.2d€733,€736€œ(Tenn.€App.€1971)›€(citing€òòò òGardner€v.ÏBurkeó óóó,€28€Tenn.€App.€119,€187€S.W.2d€25€(1944)).€€A€trial€court€is€given€ð ðwide€latitudeðð€in€itsÏdisposition€of€a€motion€for€new€trial.€€The€appellate€court€will€not€overturn€such€a€decision€unlessÏthere€has€been€an€abuse€of€discretion.€€òòò òLoeffler€v.€Kjellgrenó óóó,€884€S.W.2d€œ463,€468›€(Tenn.ÏApp.€1994)€(citing€òòò òMize€v.€Skeenó óóó,€œ468›€S.W.2d€733,€736€(1971);òòò ò€Tennessee€Asphalt€Co.Ív.€Purcelló óóó€œòòò òEnter,€Inc.ó óóó,›€631€S.W.2d€439,€442€(Tenn.€App.€1982)).€€In€this€case,€Appellant€hasÏnot€demonstrated€that€the€trial€court€abused€œits›€discretion€in€denying€Kennonððs€motion€for€a€newÏtrial.€€The€evidence€in€the€record€supports€the€proposition€that€the€SRRA€is€valid.€€While€KennonÏmay€disagree€with€the€valuation€of€the€stock€contained€in€the€œagreement,€the›€SRRA€is€enforceable.€ÏThe€decision€of€the€trial€court€is€affirmed€on€this€issue.€€ÌœÇ›à àThe€Appellant€next€argues€that€the€Chancellor€erred€in€awarding€œattorneyððs›€fees€to€K„Testing€because€no€statutory€provision€or€a€contractual€agreement€allowing€such€an€award€appliedÏin€this€case.€Ìà àK„Testing€maintains€that€an€award€of€attorneyððs€fees€in€this€situation€was€proper€becauseÏthe€ð ðfees€and€expenses€incurred€in€this€action€were€occasioned€by€the€actions€of€the€DefendantÏwhich€were€without€any€basis€in€fact€or€law,€and€the€defenses€asserted€were€baseless€andÏfrivolous.ðð€€After€reviewing€the€record,€we€find€that€K„Testingððs€request€for€attorneyððs€fees€wasÏnot€based€upon€any€œstatute€or€provision›€in€the€œSRRA.›€€K„Testing€relied€instead€upon€assertionsÏthat€Kennon€had€acted€wrongfully€in€refusing€to€turn€over€the€stock€according€to€the€agreement.€ÏOn€appeal,€K„Testing€argues€that€Kennon€is€guilty€of€conduct€that€would€justify€an€award€of€feesÏunder€either€Rule€11€of€the€Tennessee€Rules€of€Civil€Procedure€or€under€ð ðrecognized€grounds€ofÏequity.ðð€€However,€K„Testing€based€its€original€request€on€neither€Rule€11€nor€equitable€grounds.€Ìà à€Tennessee€recognizes€the€American€rule€of€legal€fees,€which€requires€litigants€to€pay€theirÏown€fees,€with€few€exceptions.€€òòò òMorrow€v.€Bobbittó óóó,€943€S.W.2d€384,€392€(Tenn.€App.€1996)Ï(citing€òòò òHoward€G.€Lewis€Const.€Co.,€Inc.€v.€Leeó óóó,€830€S.W.2d€60,€64€(Tenn.€App.Ï1991)).€€One€exception€is€that€ð ðattorney's€fees€may€be€recovered€by€a€prevailing€party€whenÏattorney's€fees€are€provided€for€by€statute€or€by€contract€between€the€parties,€.€.€.ðð€€òòò òCookvilleÏGynecology€&€Obstetrics,€P.C.€v.€Southeastern€Data€Sys.,€Inc.ó óóó,€€884€S.W.2d€458,Ï463€(Tenn.€App.€1994)€(citing€òòò òGoings€v.€Aetna€œCas.›€&€œSur.›€Co.ó óóó,€491€S.W.2d€847€(Tenn.ÏApp.€œ1972).€€Where›€there€are€sufficient€grounds€for€such€awards,€a€trial€court€has€wide€discretionÏin€its€decision€to€award€attorneys€fees.€òòò òGarfinkel€v.€Garfinkeló óóó,€945€S.W.2d€744,€748€(Tenn.ÏApp.€1996).€€Generally,€however,€ð ð[i]n€the€absence€of€a€statutory€provision€or€a€contractualÏagreement€between€the€parties,€attorney€fees,€incurred€by€a€litigant,€are€not€a€proper€element€ofÏdamages.ðð€ò òòòMorrowó óóó,€at€392€(citing€òòò òJohn€J.€Heirigs€Const.€Co.,€Inc.€v.€Exideó óóó,€709ÏS.W.2d€604,€609€(Tenn.€App.€1986);€òòò òGoings€v.€Aetna€Cas.€&€Sur.€Co.ó óóó,€491€S.W.2d€847,Ï848€(Tenn.€App.€1972)).€€The€record€in€this€case€contains€no€basis€for€an€award€of€attorneyððs€fees.€ÍThe€award€of€attorneyððs€fees€is€reversed.̜Ǜà àThe€decision€of€the€trial€court€is€affirmed€in€part€and€reversed€in€part,€consistent€with€thisÏOpinion.€€Costs€are€taxed€equally€against€the€parties,€for€which€execution€may€issue,€if€necessary.ÌÌÓÓà àà àà àà àà àòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€Ìà àà àà àà àà àò òóóHOLLY€KIRBY€LILLARD,€J.Ìó óà àò òÌCONCUR:ÌÌÌòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€ÌóóW.€FRANK€CRAWFORD,€P.€J.,€W.S.ÌÌÌòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€óóÌALAN€E.€HIGHERS,€J.ó ó