ÿWPCï /# ¢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~ž vÓ˜HP LaserJet 4SiHPPCL5MS,ü,,,,,ü0nLhÎ(ÖÃ9 Z ‹6Times New Roman RegularX($¡¡- ù- 6E66E66U6D66E6Ó€)6 ê‚_#3|x+62 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)P ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ< Œ 9p`(&Times New Roman% Line 7 d!"#$&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€+XÔÌÌMay€6,€1998ÌÌCecil€W.€CrowsonÌAppellate€Court€ClerkÔ  Ôó óPtPtHHØ(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  ellan Geneva ÒÒ  ellan Geneva ÒÝ ƒ!ÝÔ . ÔÔ€ÔÝ  ÝÒ  ÒÒ „ ÒÑ  ÑÑ\R AØ'\ÑÑ€ÑÑ7€6zXXdìdÈ7ÑÑ  ÑÑ  Ñò ò›Þ ÞÌELI€MIKE,€an€individual,€JAMES€A.à à)ÌSCHRAMPFER,€an€individual,€and€à à)ÌJANE€B.€FORBES,€as€Trustee€inà àà à)Ìbankruptcy€for€the€estate€of€DAVID€L.à à)ÌOSBORN,à àà àà àà àà à)Ìà àà àà àà àà àà à)à àDavidson€ChanceryÌà àPlaintiffs/Appellants,à àà à)à àNo.€œ89„1713„II€(III)(I)›Ìà àà àà àà àà àà à)à àÌVS.à àà àà àà àà àà à)Ìà àà àà àà àà àà à)à àÌPO€GROUP,€INC.,€a€Tennessee€à àà à)à àAppeal€No.ÌÙ€!ÙœßR€*,%A1-j|äÜ` ç `€€@ÿRß›corporation;€JAMES€W.€(BILL)€à àà à)à àœ01A01„9707„CH„00321›ÌANDERSON,€III,€an€individual;€andà à)ÌHAROLD€L.€JENKINS,€an€individual,à à)Ìà àà àà àà àà àà à)Ìà àDefendants/Appellees.à àà à)ÌÌÌà@ àIN€THE€COURT€OF€APPEALS€OF€TENNESSEEÌà@ àAT€NASHVILLEÌÌà@ àAPPEAL€FROM€THE€CHANCERY€COURT€OF€DAVIDSON€COUNTYÌà@ àAT€NASHVILLE,€TENNESSEEÌÌÓ  ÓHONORABLE€œIRVIN€H.€KILCREASE,€JR.,›€CHANCELLORÌÓ  Óó óÌÌÌJohn€C.€Tishler,€#13441ÌTUKE,€YOPP€&€SWEENEYÌ17th€Floor,€Third€National€Bank€Bldg.Ì201€Fourth€Avenue€NorthÌNashville,€Tennessee€37219„2040ÌATTORNEY€FOR€PLAINTIFFS/APPELLANTSÌÌÌWilliam€L.€Harbison,€#7012ÌœAndrew€J.€Pulliam,€#16863›ÌSHERRARD€&€ROEÌ424€Church€Street,€Suite€2000ÌNashville,€Tennessee€37219ÌÌD.€Denty€CheathamÌCHEATHAM€&€PALERMOÌ43€Music€Square€WestÌP.O.€Box€121857ÌNashville,€Tennessee€37212„1857ÌATTORNEYS€FOR€DEFENDANTS/APPELLEESÌÌÓ  Óò òAFFIRMED.ó óÌÓ  ÓÌà àà àà àà àà àà àHENRY€F.€TODDÌà àà àà àà àà àà àPRESIDING€JUDGE,€MIDDLE€SECTIONÌœCONCURS:›ÌBEN€H.€CANTRELL,€JUDGEÌœÌCONCURS€IN€RESULT:ÌWILLIAM›€C.€KOCH,€JR.,€JUDGEÌÌò òELI€MIKE,€an€individual,€JAMES€A.à à)ÌSCHRAMPFER,€an€individual,€and€à à)ÌJANE€B.€FORBES,€as€Trustee€inà àà à)Ìbankruptcy€for€the€estate€of€DAVID€L.à à)ÌOSBORN,à àà àà àà àà à)Ìà àà àà àà àà àà à)à àDavidson€ChanceryÌà àPlaintiffs/Appellants,à àà à)à àNo.€œ89„1713„II€(III)(I)›Ìà àà àà àà àà àà à)à àÌVS.à àà àà àà àà àà à)Ìà àà àà àà àà àà à)à àÌPO€GROUP,€INC.,€a€Tennessee€à àà à)à àAppeal€No.Ìcorporation;€JAMES€W.€(BILL)€à àà à)à àœ01A01„9707„CH„00321›ÌANDERSON,€III,€an€individual;€andà à)ÌHAROLD€L.€JENKINS,€an€individual,à à)Ìà àà àà àà àà àà à)Ìà àDefendants/Appellees.à àà à)ÌÌÌó óÌà@ àòòò òÔ€„ÔO€P€I€N€I€O€NÔ€XÔó óóóÌÓ  ÓÓÓÌà àThe€captioned€plaintiffsðð€have€appealed€from€a€summary€judgment€dismissingÏplaintiffsðð€actions€against€the€corporate€defendant€for€the€value€of€their€stock€as€dissentingÏminority€shareholders€and€their€action€against€the€individual€defendants€for€breach€of€fiduciaryÏduty€as€corporate€directors.ÌÌà àOn€appeal,€plaintiffs€present€the€following€issues:ÌÒ ¸ ÒÒ ¸ ÒÓÓ1.à àWhether€summary€judgment€is€appropriateÏdismissing€a€claim€based€upon€the€statute€ofÏlimitations€when€the€undisputed€facts€œindicate›€that€theÏcause€of€action€accrued€within€the€period€of€theÍstatute€of€limitations€rather€than€outside€the€period€asÏdetermined€by€the€Trial€Court?ÌÌ2.à àAlternatively,€whether€summary€judgment€isÏappropriate€dismissing€a€claim€based€upon€the€statuteÏof€limitations€when€different€inferences€regarding€theÏaccrual€of€plaintiffs€cause€of€action€may€be€drawnÏfrom€the€facts?ÌÌ3.à àIn€the€event€the€summary€judgment€isÏreversed,€whether€the€discretionary€costs€œjudgment›Ïshould€be€vacated?ÌÒ  ÒÒ „ ÒÓÓÌÌÌÓÓà àDefendants€present€the€following€issues:ÌÌÒ ¸ ÒÒ ¸ ÒA.à àWhether€the€Trial€Court€properly€held€thatÏappellantsðð€claims€are€time„barred€by€the€three„yearÏstatute€of€limitations€in€Tenn.€Code€Ann.€ðð€28„3„105Ïdue€to€those€claims€accruing€more€than€three€yearsÏbefore€appellants€filed€this€suit€when€appellants€knewÏof€their€claims€and€their€counsel€threatened€suit€onÏtheir€behalf€in€letters€making€the€same€allegations€thatÏappellants€make€in€this€suit.ÌÌB.à àWhether€the€Trial€Courtððs€award€ofÏdiscretionary€costs€to€Mr.€Anderson€was€within€theÏcourtððs€authority€under€Tenn.€R.€Civ.P.€54.04€toÏaward€discretionary€costs?ÌÒ  ÒÒ „ ÒÓÓÌà àIn€a€former€appeal€in€this€same€case,€the€Supreme€Court€held€that€the€applicable€statuteÏof€limitations€was€three€years.€€This€suit€was€filed€on€June€30,€1989.€€Three€years€prior€to€JuneÏ30,€1989,€was€June€30,€1986.€€The€primary€inquiry€on€appeal€is€whether€plaintiffððs€right€ofÏaction€or€any€part€thereof€arose€after€June€30,€1986.ÌÌà àThe€individual€defendants€were€the€sole€stockholders,€officers€and€directors€of€theÏcorporate€defendant€which€owned€majority€interests€in€a€number€of€lesser€corporations€inÍwhich€plaintiffs€held€minority€interests.€€Specifically,€stock€of€the€corporate€defendant,€œPo›ÏGroup,€Inc.,€was€owned€in€equal€shares€by€the€defendants,€Anderson€and€Jenkins,€who€wereÏalso€equal€owners€of€all€of€the€stock€of€Pro€Combination,€Inc.,€a€non„party.€€Po€Group,€Inc.,Ïowned€80%€of€the€stock€of€Po€Louisville,€Inc.,€72.57%€of€the€stock€of€Po€Jackson,€Inc.,€andÏ73%€of€the€stock€of€Po€Memphis,€Inc.ÌÌà àThe€plaintiff,€Eli€Mike,€was€a€minority€stockholder€of€Po€Louisville,€Inc.€€TheÏplaintiffs,€James€A.€Schrampfer€and€David€œOsborne,›€were€minority€stockholders€of€PoÏJackson,€Inc.,€and€Po€Memphis,€œInc..›€€David€œOsborne›€is€in€bankruptcy,€and€his€interests€areÏrepresented€by€Jane€A.€Forbes,€Trustee.ÌÌà àAfter€an€unsuccessful€effort€to€sell€the€corporate€stock€of€Po€Group,€Inc.,€and€PoÏCombination,€Inc.,€to€œDineLite›€Corporation,€Po€Group,€Inc.€agreed€to€sell€and€œDineLite›ÏCorporation€agreed€to€buy€substantially€all€of€the€assets€of€Po€Group,€Inc.€and€PoÏCombination,€œInc..€›€€T.C.A.€ðð€48„1„907(€c)€€requires€that€stockholders€dissenting€from€such€aÏsale€be€paid€the€fair€value€of€their€stock.€€A€part€of€the€consideration€of€the€sale€was€theÏpayment€by€œDineLite›€of€certain€bank€debts€of€Po€Group,€Inc.,€and€Po€Combination,€Inc.,Ïwhich€were€guaranteed€by€the€individual€defendants,€Jenkins€and€Anderson.€€This€provision€ofÏthe€sale€is€the€basis€of€the€plaintiffsðð€suit€against€the€defendants,€Jenkins€and€Anderson.ÌÌà àThe€sale€was€approved€by€a€majority€of€the€stockholders€of€each€of€the€corporations,Ïincluding€those€in€which€plaintiffsðð€were€interested,€at€a€meeting€held€on€December€15,€1985.ÌÌà àAs€stated€above,€the€Supreme€Court€concluded€the€former€appeal€by€holding€that€theÏthree„year€statute€of€limitations€barred€the€action€of€plaintiffs€against€the€corporate€defendant.€ÏThe€opinion€of€the€Supreme€Court€also€states:ÌÒ ¸ ÒÒ ` ÒÓÓ.€.€.any€right€the€plaintiffs€may€have€had€to€recover€fromÏAnderson€and€Jenkins€for€breach€of€their€fiduciary€duties€asÏofficers€or€directors€of€any€of€the€three€subsidiaryÏcorporations€or€Po€Group,€Inc.,€expired€on€January€1,Ï1989,€prior€to€the€date€on€which€the€present€suit€was€filed,ÏJune€30,€1989.€€The€plaintiffs€acknowledge€that€Section€48„18„601€bars€recovery€from€Anderson€or€Jenkins€for€anyÏbreach€of€fiduciary€duties€as€officers€or€directors.€€937ÏS.W.2d€at€794.ÌÓ  Ó„€„€„€„ÌÓ  Óà àThe€complaint€alleges€that€the€majority€shareholder,ÏPo€Group,€Inc.,€breached€a€fiduciary€duty€owed€to€them€asÏminority€shareholders€.€.€.€.€[T]he€plaintiffs€allege€that€theÏproceeds€from€the€sale€of€corporate€assets€were€unfairlyÏdistributed€by€the€defendant,€Pro€Group,€Inc.,€to€theÏdefendants€Anderson€and€Jenkins.€€The€complaint€does€notÏotherwise€define€the€duty€or€the€wrong.€€The€allegations€doÏnot€indicate€clearly€the€ð ðgravamen€of€the€action.ðð€€The€legalÏwrong€of€which€the€plaintiffs€complain€is€uncertain.€€TheÏcomplaint€does€not€charge€fraud;€however,€there€is€found€inÏthe€complaint€the€statement€that€the€breach€of€fiduciary€dutyÏby€the€òòdefendantsóó€included€ð ðthe€diversion€and/orÏmisappropriationðð€of€assets.€€Even€then,€the€legal€duty€thatÏwas€violated€is€not€entirely€clear.ÌÌà àThe€plaintiffs€seek€no€judgment€of€liability€forÏwrongdoing€against€Anderson€and€Jenkins.€€The€complaintÏagainst€Anderson€and€Jenkins€is€that€their€relationship€withÏthe€majority€shareholder,€Po€Group,€Inc.,€was€such€that€theÏplaintiffs€should€be€allowed€to€pierce€the€corporate€veil€andÏcollect€from€the€individual€defendants€the€value€of€theirÏshares€of€stock.ÌÓ  Ó„€„€„€„ÌÓ  Óà àThus,€the€action€of€Po€Group,€as€the€majorityÏshareholder€in€the€three€subsidiary€corporations,€wasÏessential€to€the€consummation€of€the€sale.€€òòIdóó.€at€794.€ÌÒ  ÒÒ „ ÒÓ  ÓÓÓÌÓ  Óà àThe€cause€was€remanded€by€the€Supreme€Court€to€afford€opportunity€to€the€plaintiffs€œtoÏshow€that›€some€wrongful€act€of€the€individual€defendants€occurred€after€June€30,€1966.€€NoÏsuch€act€is€shown€by€this€record.ÌÌà àAppellants€insist€that€the€three„year€statute€did€not€begin€to€run€against€them€until€theÏfinal€transfer€of€assets€which€occurred€after€June€30,€1986.€€This€Court€does€not€agree.€€By€theÏbinding€contract€to€sell€and€buy€the€assets,€the€corporations€were€bound€to€complete€theÏtransfer€and€delivery€of€such€assets,€and€the€statute€of€limitations€began€to€run€at€that€time,Ïregardless€of€any€delay€in€carrying€out€the€details€of€transfer.ÌÌà àThe€plaintiffs€assert€that€the€individual€defendants€committed€a€breach€of€fiduciary€dutyÏby€relieving€themselves€of€their€liability€as€guarantors.€€The€guaranteed€liability€was€secondaryÏto€the€primary€liability€of€the€corporations€which€was€a€legitimate€subject€of€inclusion€in€theÏsales€agreement.€€The€incidental€benefit€to€the€individual€defendants€without€detriment€to€theÏcorporations€is€not€legitimate€ground€for€liability€of€the€individual€defendants.€€Moreover,€theÏprovision€of€the€sales€agreement€for€satisfaction€of€bank€debts€was€disclosed€to€plaintiffs€in€theÏnotice€of€stockholders€meeting€received€by€plaintiffs.€€Furthermore,€on€January€3,€1986,Ïplaintiffsðð€attorney€wrote€a€letter€to€the€president€of€Po€Louisville,€Po€Memphis€and€Po€JacksonÏdemanding€payment€of€fair€value€of€plaintiffsðð€stock€and€stating:ÌÒ ¸ ÒÒ ` ÒÓÓà àThe€value,€of€course,€should€include€monies€thatÏhave€been€misappropriate€[sic]€from€the€Company€by€theÏcontrolling€shareholder,€the€value€of€the€franchise€rights€forÏthe€Companyððs€market€that€were€represented€by€the€majorityÏshareholders€to€be€in€the€Company€and€the€proportionateÏvalue€being€realized€by€the€majority€shareholderððs€beingÏrelieved€of€certain€liabilities€by€DineLite€Corporation.ÌÌà àð ð[f]ailure€to€arrive€at€a€fair€value€forðð€the€shares€ofÏMr.€Brownððs€client,€Ì...will€leave€us€no€alternative€but€to€institute€litigation,€whichÏwould€include,€but€not€necessarily€be€limited€to€claims€for:ÌÌà àà à(1)à àviolations€of€notice€procedures€underÏà àà àà àthe€Tennessee€General€CorporationÏAct€ÌÌà àà à(2)à àviolations€of€state€and€federalÏsecurities€à àà àà àlawÌÌà àà à(3)à àmisappropriation€of€assetsÌÌà àà à(4)à àviolations€of€the€racketeering€[sic]Ïà àà àà àinfluences€and€corrupt€organizationsÏà àà àà àact.ÌÌà àWe€await€further€action€by€you€on€this€matter.ÌÒ  ÒÒ „ ÒÓÓÌà àPlaintiffs€assert€that€there€was€an€inequitable€distribution€of€benefits€to€the€subordinateÏcorporations€by€payment€of€the€various€bank€loans€which€adversely€affected€the€value€of€theirÏstock€and€thereby€unfairly€reduced€the€amount€to€be€paid€to€them€for€their€stock.ÌÌà àNo€evidence€is€cited€or€found€as€to€the€specific€or€amount€of€the€alleged€inequitableÏallocation€of€bank€loan€relief€among€the€several€corporations€involved.€€Even€though€the€actionÏof€plaintiffs€were€not€barred,€no€relief€could€be€granted€to€plaintiffs€for€the€alleged€inequity€ofÏrelief€from€bank€loans€because€of€the€lack€of€evidence€of€the€amount€of€damages.ÌÌà àFinally,€plaintiffs€argue€that,€in€event€of€reversal€of€the€judgment€of€the€Trial€Court,€theÏaward€of€discretionary€costs€should€be€dismissed.€€There€is€no€complaint€that€the€award€ofÏdiscretionary€costs€was€otherwise€in€error.ÌÌà àNo€grounds€are€found€for€reversal€of€the€judgment€of€dismissal,€hence€the€award€ofÏdiscretionary€costs€will€not€be€reversed.ÌÌÌÌà àThe€judgment€of€the€Trial€Court€is€affirmed.€€Costs€of€this€appeal€are€taxed€against€theÏappellants€and€their€surety.€€The€cause€is€remanded€to€the€Trial€Court€for€necessary€furtherÏproceedings.ÌÌÓ  Óò òAFFIRMED€&€REMANDEDó ó.ÌÓ  ÓÓÓà àà àà àà àÌÌà àà àà àà àà àà àà à_________________________________Ìà àà àà àà àà àà àà àHENRY€F.€TODDà àÌà àà àà àà àà àà àà àPRESIDING€JUDGE,€MIDDLEÏSECTIONÌÓ  ÓÌÌÌCONCUR:ÌÌÌ_____________________________ÌBEN€H.€CANTRELL,€JUDGE̛̜œÌÌCONCURS€IN€RESULT:Ì›ÌÌœ_____________________________ÌWILLIAM›€C.€KOCH,€JR.,€œJUDGEÌ›