WPC" c԰>N?'>ddʹbSAj xriNUR L @(1ۦ/W YTq-'w;8lO8n5⌇W(Eq S\wݧ5yy kCEY'(LރLFc NrôH|] TD7w e^!+$QKCAWL>}|XE@S0נ󡞜\8_0N {X080Nі/]T j?UB#wQW]UUp"'8J߀.xtW^AH$-&R7מw̌bd YobtK8}-N,zc*x[- {}u}7Qr@LC$r *eGȁ8l1\% zi咣;𵫋W7# F UNQ % 0( UF 1 0lD 0D UF w@: 4z  > UF!^UFeUFm 1m} 0c 0wMUPUFUFZ 8UFU:++++++++ 0Dee D3o B A 0Khhhhh D+ 0 0h 0 0 0 0^ ^ ^ ^ ^ AOM!!! 0Db" D/" B"HP LaserJet 4HPPCL5MS,,,,,,0nLD(9 Z 6Times New Roman RegularX($<Q 9Z .Courier New Regular ' $    2     X>XXX T2X X>ArticleI,Section6,oftheTennesseeConstitutionprovides,in P  pertinentpart, [t]hattherightoftrialbyjuryshallremaininviolate.((3$ !      0  (#$  0  <Q 9Z .Courier New Regular DEDFDGDHKVLDMENUOӀ6S/% 3|xZ 4 $    3    X>XXXT2XX>T.C.A.211103providesasfollows: P    8 ` Eitherpartytoasuitinchanceryisentitled,uponapplication,toajurytotryanddetermineanymaterialfactindispute,saveincasesinvolvingcomplicatedaccounting,astosuchaccounting,andthoseelsewhereexceptedbylaworbyprovisionsofthisCode,andalltheissuesoffactinanypropercasesshallbesubmittedtoone(1)jury.<Q 9Z .Courier New Regular  $    1    X>XXXT2XX>Thestyleofthevariouspleadingsandordersbelowreflectsmultiple P  individuals/entitiesasthepartiestothislitigation;however,sincethisisessentiallyacontestbetweentwocompaniesFurniturePartners,Inc.andT.J.BakersFurniturewewillrefertothepartiesasplaintiffanddefendant. $    6    XXXXzXXForthetextofthisprovision,seefootnote3tothisopinion. T $    5    XXXXzXXTheoriginalcontractprovidedforacheckingaccountwithplaintiffas P  thesolesignatory.Thecontractwasthenmodifiedinwritingtorequirethesignaturesofbothpartiesonallchecks.<Q 9Z .Courier New Regular<Q 9Z .Courier New Regular $    6    XXXXzXXForthetextofthisprovision,seefootnote3ofthisopinion.uvwxyz#,37=CIQYag1.a.i.(1)(a)(i)1)a)(;s$2,  0  .3  0  (O{$0  2,  a  .3  0` (#(#&@FZ 8CaslonOpnface BT Regular<Q 9Z .Courier New Regular<Q 9Z .Courier New Regular XhYXXXR XXhY   Ad FILEDXhYX R   October20,1998  CecilCrowson,Jr. XXhYAppellateCourtClerk  . $    4    XXXXzXXWhileitisclearthatthedefendantwasconductingagoingoutof P  businesssale,itislessclearthatthedefendantwasinfactgoingoutofbusiness.<Q 9Z .Courier New Regular,cAZ"Arial Regular(3$ !  ݁Level 1Level 2Level 3Level 4Level 5++++'dxd d)'BG&OLE 2.0 Box <=8C HKKKK( $ Figure  1  'dxd(bD$0  0` (#(#2,   .3  0 ` (#` (#(x$0  0` (#(#0 ` (#` (#2,(  0  )3  0 (# (#(Ƃ$0  0` (#(#0 ` (#` (#0 (# (#2,(  a  )3  0h(#(#($0  0` (#(#0 ` (#` (#0 (# (#0h(#(#2,(   )3  0h(#h(#(4$0  0` (#(#0 ` (#` (#0 (# (#0h(#(#0h(#h(#2,  0  )3  0(#(#($0  0` (#(#0 ` (#` (#0 (# (#0h(#(#0h(#h(#0(#(#2,  a  )3  0p(#(#'C<< CLevel 1Level 2Level 3Level 4Level 5($$   1  ' dxdP Pd !  OOP X>XXXTR[A' Legal3'A' Legal3'T7vWXXdd7  Or*<,(j 8` `@EV ` ttx$P rߛO@INTHECOURTOFAPPEALS P  @$ATKNOXVILLEMIKEMIERZEJEWSKIand h     )C/ANO.03A019802CH00044 * FURNITUREPARTNERS,INC.,    )     `     h     )   ` PlaintiffsAppellants,  ) \     `     h     )   `     h     )v.   `     h     ) .     `     h     )APPEALASOFRIGHTFROMTHEX   `     h     )HAMILTONCOUNTYCHANCERYCOURTX   `     h     )   `     h     )̜BSENTERPRISES,INC.,and    ) \  BELINDASHATZERd/b/aT.J.    ) 2 BAKERSFURNITURE,   h     )     `     h     )HONORABLER.VANNOWENS,   ` DefendantsAppellees.  )CHANCELLOR d ForAppellants    h     ForAppellees   FREDT.HANZELIK   h     ELIZABETHG.ALT "> BRENTJAMES    h     WILLIAMT.ALT d# МHanzelik&James   h     WilliamT.Alt,P.C. :$ Chattanooga,Tennessee h     Chattanooga,Tennessee %  @$XXXX> | XXOPINIONXX  |X>XXXԈ 4*3  AFFIRMEDANDREMANDED h      p      x Susano,J. 98/8    ` ThissuitinchancerywasfiledbyFurniturePartners, Inc.,X>XXX>againstT.J.BakersFurniture.#X>XXX> #X>XXX> #  1      ׀Itarisesoutofa   failedbusinessrelationship.Thecomplaintaskedthetrialcourttoissue#X>XXX> #ԛa writofreplevyforitemsoffurnitureanda T temporaryrestrainingorder(TRO).AftergrantingtheTRO,theChancellorreferredtheissuesmadebythepleadingstoamaster.ϜFollowingthetrialcourtsreceiptofthemastersreport,theϜplaintifffiledananswertothedefendantscounterclaim,inwhichanswertheplaintiffrequestedatrialbyjury.Thecourtdeniedtheplaintiffsrequestforajurytrial;confirmedthemastersreport;andenteredajudgmentfor$39,916.36ontheϜdefendantscounterclaim.Theplaintiffappealed,contending,initssoleissue,thatitisentitledtoajurytrialpursuanttotheauthorityofArticleI,Section6,oftheTennesseeConstitution #  2      כandT.C.A.211103. ( #  3       !h ̜  %  Л@&I.Facts P     ` Thedefendantplannedtoconductagoingoutofbusinessfurnituresale. #  4      כItengagedtheservicesofthe ` plaintiffto manageandoverseethesale.Theplaintiffapparentlyhelditselfoutaspossessingexpertiseinsuchsales.Whileeachofthepartiesplacedfurnitureinthesale,theplaintiffwasprimarilyresponsibleforsecuringthefurnituretobesold.Accordingtotheoriginaltermsofthepartiesagreement,asfurniturewassold,thedefendantwastopaytheϜvendorsinvoicepriceandexpensesofthesale,plusasalesϜcommissiontotheplaintiff.ThedefendantwouldbeentitledtoϜthebalanceofthesalesproceeds.Thedefendantwouldalsobeentitledtotherevenuesfromthesalesofitsownfurniture,lessthesamepercentagesalescommissiontotheplaintiffandexpensesofthesale.   ` Thetermsofthecontractwerealteredduringthecourseofthebusinessrelationship.Therecordindicatesthattheplaintiffrequestedthatthedefendantpayforthefurnitureinadvance,ratherthanuponreceiptofthesalesproceedsasϜoriginallyagreedto.ThisisreflectedinthetestimonyoftheϜownerofthedefendantbusiness:  8 ` Q:Asaresultofthesellingoffurniture,wereϜtheirarrangementsmadeastohowyouwouldcompensateFurniturePartnersforthefurniture? ` `     ` A:Yes. L6+5    ` Q:Howwasthatdone?  8 ` A:Thearrangementswere,asthemoneycameinandtheinvoicesbecamedue,wewouldsettleupinthatmanner,waswhattheoriginalunderstandingwas. ` `    8 ` Q:Anddidthatunderstandingisthathowyouoperatedthesalesduringtheperiodoftimethatthiscontractwasinexistence? ` `     ` A:Thatwasnotwhatwasdone.   ` Q:Whatwasdone?  8 ` A:Itwassupposedtobethatway,butweendedupτhewasdemandingthemoneyandhavingmymanagerwritechecksfortheinvoicesupfrontinmanycases,ofwhichwehaveseveralfallingoutsthereashewasdoingthat.Sotherefore,wewerentbeingabletosellitonaconsignmentbasisasweagreed. ` `    8 ` Q:Whenyousayyouwerepayingthemoneyupfront,whatdoyoumeanbythat? ` `    8 ` A:Well,therewereseveralinvoices.Whentheyfirstopenedupthesale,IwasinNewYork.Hehadmymanagerwritecheckstothesevendors[sic]justrightoffthebat.IfIcouldhavedonethatIwouldnothaveneededtohirehimandhiscompanytobringitinandsellitonconsignment. ` `  @XX%***   ` RelationsbetweenthepartiesdeterioratedafterthepartiesfurthermodifiedtheircontracttodecreasetheϜplaintiffssalescommissionpercentageandprovideforajointcheckingaccount. #  5      כDealingsbetweenthepartiesfurthersoured .p$, whentheCityofChattanooganotifiedthedefendantthattheϜgoingoutofbusinesssalehadtobecompletedearlierthanoriginallyscheduled.Theplaintiffwasupsetaboutthechangeintheendingdateofthesale,andbecameconcernedthatthe `5+4 defendantwouldselltheplaintiffsfurniturewithoutpayingforϜit.Forthisreason,theplaintiffobtainedaTROagainstfurthersales.   ` Theplaintiffalsosoughtdamagesbasedonanallegedbreachofcontractand,aspreviouslyindicated,demandedajurytrial.Thedefendantcounterclaimedfordamagesarisingfromtherestrainingorderaswellasfrombreachofcontract.Inessence,thislitigationrequiredmultipledeterminations:whethervariousunsoldpiecesoffurniturebelongedtotheplaintiffortothedefendant;whethertheplaintiffhadbeenoverpaidor,conversely,wasdueadditionalsumsforfurnituresold;theproperamountofcommissionsduetheplaintiffD;DEAAEwhetherexpensesofthesalehadbeCenproperlyaccountedforandpaid;andwhetherthedefendantwasdamaged,and,ifso,towhatextent,asaresultoftheplaintiffimproperlyobtainingtheTRO.C̛@II.StandardofReview  ($    ` Inthisnonjurycase,ourreviewisdenovouponthe +8!( recordoftheproceedingsbelow.Rule13(d),T.R.A.P.Sincethesoleissuebeforeuswhether,ontheundisputedfacts,theplaintiffisentitledtoajurytrialisoneoflaw,thereisnopresumptionofcorrectnessastothetrialcourtsjudgmentonthisissue. CampbellV.FloridaSteelCorp .,919S.W.2d26,35 3)2 (Tenn.1996); Presleyv.Bennett ,860S.W.2d857,859(Tenn. 5`+4 1993).  9.8 @ III.SubstantiveLaw P     ` Article1,Section6,oftheTennesseeConstitutionpreservestherighttoajurytrialasitexistedatcommonlaw. SmithCountyEducationAssociationv.Anderson ,676S.W.2d  328,336(Tenn.1984)FF(quotingGinpartGfrom Marlerv.Wear ,96S.W.447,   448(Tenn.1906)).Sincecommonlawdidnotcountenanceajurytrialforinherentlyequitablematters,theabovereferencedconstitutionalprovisionincludesnosuchright,see Moorev.   Mitchell ,329S.W.2d821,823(Tenn.1959);however,astatutory ` righttotrialbyjurydoesexistinTennessee.TheapplicableprovisionisfoundatT.C.A.211103.HHHH #  6      כBythisprovision,the   legislatureintendedtocreatea broadstatutoryrighttoajurytrialinequitycases... Sasserv.AverittExpress,Inc .,839 p  S.W.2d422,434(Tenn.App.1992).However,thelegislaturespecificallyexempted casesinvolvingcomplicatedaccounting,astosuchaccounting.SeeT.C.A.211103.Seealso Smith %8  МCountyEducationAssociation ,676S.W.2dat336; Moore ,329 P'" S.W.2dat823; GreeneCountyUnionBankv.Miller ,75S.W.2d49, )$ 52(Tenn.App.1934).@$IV.Analysis 0.#*    ` Itisnowclearbeyondanydoubtthatthereisaright 1`'. totrialbyjuryformattersinherentlyequitable.See Smith X3)0 МCountyEducationAssociation ,676S.W.2dat336; Moore ,329  5*2 МS.W.2dat823.However,itislikewiseclearthatthisstatutory 6,4 МrightdoesnotextendtomattersinvolvingcomplicatedϜaccountings.See Sasser ,839S.W.2dat434.Inanearlycase,   thiscourtaddressedmattersexemptedfromthepurviewofthestatute:  8 ` Ifitisacaseforcomplicatedaccounting,suchpartyhasnorighttodemandorhaveatrialbyjury.Thefoundationofjurisdictioninequityinacaseofcomplicatedaccountsisbasedupontheinadequacyofthelegalremedy,aswherethereisanembarrassmentinmakingproof,thenecessityforadiscovery,ortheproductionofbooksandpapers,orwhereitwouldbedifficult,ifnot 4 impossible,forajurytounravelthenumeroustransactionsinvolved,andjusticecouldnotbedoneexceptbyemployingthemethodsofinvestigationpeculiartocourtsofequity.Itis  wellsettledthatwheretheaccountsarecomplicatedthisconstitutesofitselfsufficientgroundfortheassumptionofjurisdictionbyacourtofequity,andwheretheaccountismadeupofitemsforandagainsteachparty,ortheitemsarenumerousandextendoveralongperiodofϜtime.!` `   GreeneCountyUnionBank ,75S.W.2dat52(emphasisadded) P%  М(quoting1C.J.618,619).Seealso Taylorv.Tompkins ,49Tenn. '" (2Heisk.)88,89(1870).   ` Intheinstantcase,itisclearthattheissuesbefore H,!( thetrialcourtinvolvedaninherentlycomplicatedaccounting.Theaccountingfordamagesarisingfromthecompetingclaimsforbreachofcontractrequiredanalysisofmanyrecords,includingcanceledchecks,vendorinvoices,inventorycontrollogs,andotherdocuments.Apparently,neitherpartyhadaformalaccountingsystem.Therecordshowsthatthetransactionsbetweenthepartiescoveredafourmonthperiod,involvedsalesofover$300,000intoto,andpertainedtoinvoicesfromseveral 98/8 differentvendors.Therearenumerousinvoicesandchecksforpurchasesoffurniture.Handwrittensheetsappeartobethebasisforinventorycontrol.Anumberofchecksareincludedintherecord,butdonothavecorrespondingdocumentationattached.Returnstovendors,aswellasoverpaymentstobothvendorsandϜtheplaintiff,areatissue.Alldatahadtobeanalyzedextensivelytodeterminetheproperamountofdamages.Inaddition,theaccountingfordamagesarisingfromtheissuanceoftherestrainingorderinvolvedmanyfactors.Lostprofitswerecalculatedbasedonsalesvolumeandgrossprofitpercentages,lessexpenses.Thedeterminationofthesefactorsinvolvedaworkingknowledgeoftheretailindustryaswellasaworkingknowledgeofbasicaccountingprinciples.   ` ThedefendanthiredanexpertacertifiedpublicaccountanttosiftthroughandunravelthemanytransactionsϜbetweentheparties.Theexpertproducedanaccountingofthedamagesunderthecontractandundertherestrainingorder,whichstudyanalyzedindetailallofthevariousdata.Severalcalculationswerenecessary,aswellasextensivecompilationofsupportingschedulesforthosecalculations.   ` Wefindandholdthattheissuesmadebythepleadingsinvolvedacomplicatedaccounting,thusplacingthiscaseoutsidethebroadstatutoryrighttoajurytrialsetforthHHinT.C.A.211103.̜K  `5+4 KLL@#V.Conclusion P     ` Itthereforeresultsthatthejudgmentofthetrialcourtisaffirmed.Costsoftheappealaretaxedtotheappellant.Thiscaseisremandedtothetrialcourtforenforcementofthejudgmentandcollectionofcostsassessedthere,allpursuanttoapplicablelaw.   `     h     __________________________   `     h     CharlesD.Susano,Jr.,J.̜M  P M̜NNCONCUR:_____________________________HoustonM.Goddard,P.J._____________________________WilliamH.Inman,Sr.J.