ÿWPCš "UNì %: 0(@Jhw@²4ò 0z€ 0D— 0JÛ 0T% 0^y 0h× 0r? 0|± 0†- 0³ 1uC 0d¸U>ÒZv~, Bª vÓÇ (ÈhH  Z 6Times New Roman RegularX($¡¡c:\office\wpwin\template\opinion.wpt ŒDŽD“”•e–—D¢„g"V(.VJj((*2ên$¤¤Ý ƒ!ÝÝ  ÝÓ  Óà  àòòÚ  Ú0Ú  Úóó€€3|x—(#Ã$òòÚ  Ú0Ú  Úóó2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô  ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)P ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ< Œ 9p`(&Times New Roman ÈÝ ƒ!ÝÑ#€d#ÑÔ€ÔÝ  ÝÝ ƒ$ÝÓ  Óà àòòÚ  ÚÚ  Úóó€€Ý  ÝThe€Tennessee€Supreme€Court€recently€held€that€the€action€provided€by€the€TennesseeÏConsumer€Protection€Act€for€unfair€and€deceptive€practices€does€not€apply€to€a€seller€ð ðwho€is€notÏgenerally€engaged€in€the€sale€of€residential€property.ðð€€òòò òGanzevoort€v.€Russelló óóó,€1997€WLÏ273980,€at€*6„7€(Tenn.€May€27,€1997)€(mandate€issued€16€September€1997).€We€do€not€addressÏthe€issue€of€whether€the€Act€is€applicable€to€Appellees€because€there€is€not€enough€evidence€in€theÏrecord€to€make€this€determination€and€the€parties€did€not€brief€the€issue.ÌPtPtHHÚ(ÿáÿâùFG(üHHØ(d'` dStyl{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  ion-F Geneva ÒÒ  ion-F Geneva ÒÝ ƒ!ÝÔ . ÔÔ€ÔÝ  Ý›Ñ\R AØ'\ÑÑ\R AØ'\ÑÔ€¼ÔÑ7€Ç.XXdìXXdì7ÑÑ  ÑÞ ÞÌMichael€Keith€Newcomb,€and€wife€Caroline)ÌNewcomb,€Darden€E.€Davis€and€wife,€Annà à)à àAppeal€No.ÌJ.€Davis,à àà àà àà àà àà à)à à€01„A„01„9705„CH„00220Ìà àPlaintiffs/Appellants,à àà àà à)Ìv.à àà àà àà àà àà àà à)à àRule€No.€95„1061„IÌWilliam€Gonser,€and€wife€Lois€Gonser,à à)Ìà àDefendants/Appellees,à àà àà à)Ìandà àà àà àà àà àà àà à)ÌChristopher€Gonser,€and€wife€Lisa€Gonser,à à)Ìand€Shirley€Zeitlin€&€Company.à àà à)ÌÌÌÌÌÌÓ  ÓCOURT€OF€APPEALS€OF€TENNESSEEÌÌMIDDLE€SECTION€AT€NASHVILLEÌÌAPPEAL€FROM€THE€DAVIDSON€COUNTY€CHANCERY€COURTÌÌAT€NASHVILLE,€TENNESSEEÌÌTHE€HONORABLE€IRVIN€H.€KILCREASE€JR.,€CHANCELLORÌÌÓ  ÓÌÌÌÌÌGREGORY€L.€CASHIONÌCAROL€R.€DUNNÌManier,€Herod,€Hollabaugh€&€SmithÌ150€Fourth€Avenue,€North,€Suite€2200ÌNashville,€Tennessee€37219ÌATTORNEY€FOR€THE€PLAINTIFFS/APPELLANTSÌÌJOHN€J.€HOLLINS,€JR.ÌHollins,€Wagster€&€Yarbrough,€P.C.Ì424€Church€Street,€2210€SunTrust€CenterÌNashville,€Tennessee€37219ÌATTORNEY€FOR€THE€DEFENDANTS/APPELLEESÌÌÌÌÌÓ  ÓREVERSED€AND€REMANDEDÌÌÓ  ÓÌÌWALTER€W.€BUSSART,€JUDGEÌòòòòÓ  ÓÔ€„ÔOpinionÔ€¼ÔóóóóÌÓ  ÓÌÓ€ÓÓ  Óà àThis€is€an€appeal€by€plaintiffs/appellants,€Michael€and€Caroline€NewcombÏand€Darden€and€Ann€Davis,€from€the€decision€of€the€Davidson€County€ChanceryÏCourt€granting€the€motion€for€summary€judgment€filed€by€defendants/appelleesÏWilliam€and€Lois€Gonser.€€The€facts€out€of€which€this€matter€arose€are€asÏfollows.ÌÌà àChristopher€and€Lisa€Gonser€purchased€a€home€at€604€Georgetown€Drive,ÏNashville,€Tennessee€in€late€1992.€€Due€to€financing€problems,€ChristopherÏGonserððs€parents,€William€and€Lois€Gonser,€obtained€the€financing€for€the€home.€ÏAfter€the€closing,€Christopher€and€Lisa€quitclaimed€the€property€to€Christopher,ÏWilliam,€and€Lois.ÌÌà àIn€October€1993,€Christopher€learned€his€employer€planned€to€terminateÏhis€position€within€the€next€60€days.€€Christopher€listed€the€house€for€sale.€€TheÏreal€estate€agent€had€Christopher€and€Lisa€sign€a€ð ðWritten€Condition€of€PropertyÏDisclosure€Statement.ðð€€The€disclosure€statement€provided€that€the€pool€was€inÏworking€condition,€had€no€known€defects,€was€not€in€need€of€repair,€and€had€notÏhad€any€repairs€in€the€last€6€months.ÌÌà àMichael€and€Caroline€Newcomb€were€looking€for€a€home€in€Nashville.€ÍCarolineððs€parents,€Darden€and€Ann€Davis,€had€agreed€to€help€with€the€financing.€ÏThe€Newcombs€were€shown€the€house€on€three€occasions€from€November€10Ïuntil€November€13.€€On€November€13,€they€presented€the€Gonserððs€agent€with€aÏcontract€for€sale€thereby€making€an€offer€to€purchase€the€home.€€The€agentÏreturned€the€signed€contract€along€with€a€copy€of€the€disclosure€statement€laterÏthat€same€day.€€Christopher€signed€the€contract€on€his€own€behalf€and€on€behalfÏof€his€parents€as€their€attorney„in„fact.€€The€contract€also€included€an€inspectionÏaddendum€regarding€both€the€house€and€the€pool.€€Christopher€signed€theÏaddendum€on€behalf€of€himself€and€his€parents.ÌÌà àOn€November€16,€1993,€William€and€Lois€Gonser€executed€a€power€ofÏattorney€naming€Christopher€as€their€attorney„in„fact€for€the€purposes€of€the€sale.€ÏThe€closing€occurred€on€December€15,€1993€with€Christopher€acting€as€attorney„in„fact€for€his€parents.ÌÌà àThe€Newcombs€filled€the€pool€in€the€Spring€of€1994€and€realized€it€wasÏleaking.€€Appellants€filed€a€complaint€on€4€April€1995.€€The€complaint€namedÏChristopher,€Lisa,€William€and€Lois€Gonser€and€Shirley€Zeitlin€&€Company€asÏdefendants.€€Appellants€alleged€all€the€defendants€were€liable€for€fraud€and/orÏintentional€misrepresentation,€violations€of€the€Tennessee€Consumer€ProtectionÏAct,€and€Christopherððs€breach€of€contract.€€Appellants€voluntarily€dismissedÏShirley€Zeitlin€&€Company.ÌÌà àAppellees€and€defendants,€Christopher€and€Lisa€Gonser,€filed€a€motion€forÏsummary€judgment€on€26€November€1996.€€They€argued€the€trial€court€shouldÏgrant€their€motion€because€ð ðneither€party€made€any€representations€whatsoeverÏregarding€the€condition€of€the€Plaintiffððs€pool€prior€to€December€15,€1993.ðð€ÍAppellees€relied€on€Lois€Gonserððs€affidavit€and€their€memorandum€of€law€withÏattachments€to€support€the€motion.€€Appellants€responded€by€alleging€AppelleesÏwere€liable€for€the€misrepresentations€because€Christopher€was€their€agent.€€ÌÌà àThe€trial€court€granted€summary€judgment€in€favor€of€William€and€LoisÏGonser€on€17€January€1997.€€Appellants€filed€a€motion€requesting€the€court€makeÏthe€summary€judgment€order€final€pursuant€to€Rule€54.02€and€a€notice€ofÏvoluntary€dismissal€as€to€Christopher€and€Lisa€Gonser.€€The€court€grantedÏAppellantsðð€motion€and€filed€an€order€on€26€February€stating€its€earlier€orderÏwas€a€final€order€pursuant€to€Rule€54.02€and€dismissing€all€claims€againstÏChristopher€and€Lisa€Gonser€without€prejudice.€€Appellants€filed€their€notice€ofÏappeal€on€20€March€1997.€€It€is€the€opinion€of€this€court€that€the€trial€court€erredÏin€granting€Appelleesðð€motion€because€they€failed€to€establish€they€were€entitledÏto€a€judgment€as€a€matter€of€law.ÌÌò òI.à àSummary€Judgmentó óÌÌà àThis€court€reviews€a€trial€courtððs€decision€to€grant€a€motion€for€summaryÏjudgment€as€if€we€were€making€the€initial€ruling.€€òòò ò€See€Gonzales€v.€AlmanÏConstr.€Co.ó óóó,€857€S.W.2d€42,€44„45€(Tenn.€App.€1993).€€Before€a€party€canÏprevail€on€a€motion€for€summary€judgment,€they€must€demonstrate€there€are€noÏgenuine€issues€as€to€any€material€fact€and€the€law€entitles€the€party€to€a€favorableÏjudgment.€€òòò òSee€Byrd€v.€Halló óóó,€847€S.W.2d€208,€214€(Tenn.€1993).€€The€courtÏmust€resolve€three€questions€when€determining€whether€there€are€no€genuineÏissues€as€to€any€material€fact.€€These€are:€ð ð(1)€whether€a€òòfactualóó€dispute€exists;€(2)Ïwhether€the€disputed€fact€is€òòmaterialóó€to€the€outcome€of€the€case;€and€(3)€whetherÏthe€disputed€fact€creates€a€òògenuineóó€issue€for€trial.ðð€€òòò òId.ó óóó€€The€Tennessee€SupremeÍCourt€defined€a€material€fact€as€follows:ÌÓÓà8 àA€disputed€fact€is€material€if€it€must€be€decided€in€order€to€resolveÏthe€substantive€claim€or€defense€at€which€the€motion€is€directed.€ÏTherefore,€when€confronted€with€a€disputed€fact,€the€court€mustÏexamine€the€elements€of€the€claim€or€defense€at€issue€in€the€motion€toÏdetermine€whether€the€resolution€of€that€fact€will€effect€theÏdisposition€of€any€of€those€claims€or€defenses.ÌÓ€ÓÌÓ€Óòòò òId.óóó ó€at€215.€€ð ð[T]he€test€for€a€ððgenuine€issueðð€€is€whether€a€reasonable€jury€couldÏlegitimately€resolve€that€fact€in€favor€of€one€side€or€the€other.€.€.€.€In€making€thisÏdetermination,€the€court€is€to€view€the€evidence€in€a€light€favorable€to€theÏnonmoving€party€and€allow€all€reasonable€inferences€in€his€favor.ðð€€òòò òId.ó óóóÌÌà àInitially,€the€movant€has€the€burden€of€demonstrating€the€requirements€ofÏsummary€judgment.€€òòò òSee€id.ó óóó€€ð ðA€conclusory€assertion€that€the€nonmoving€partyÏhas€no€evidence€is€clearly€insufficient.ðð€€òòò òId.ó óóó€€Once€the€movant€makes€a€properlyÏsupported€motion,€the€burden€shifts€to€the€nonmovant€to€provide€contradictoryÏevidence€using€affidavits€or€any€of€the€other€discovery€materials€listed€in€RuleÏ56.03.€€òòò òSee€id.ó óóóÌÌò òII.à àAnalysisó óÌÌà àWe€begin€our€analysis€by€determining€whether€Appellees€demonstrated€a€Ïlack€of€material€factual€disputes€and€entitlement€to€judgment.€€Appellees€claimÏthey€are€entitled€to€a€judgment€in€their€favor€because€Appellees€did€not€make€anyÏmisrepresentations€directly€to€Appellants.€€Essentially,€Appelleesðð€argument€isÏthat€they€are€entitled€to€a€judgment€as€a€matter€of€law€because€Appellants€can€notÏestablish€an€element€of€their€claims,€i.e.,€the€existence€of€a€misrepresentation.€ÏThus,€this€court€must€examine€the€elements€of€Appellantsðð€various€claims€and€theÏmeans€of€proving€those€elements.€€The€existence€of€a€misrepresentation€is€anÍelement€in€each€of€Appellantsðð€claims.€€ÌÌà àAppellants€first€claim€is€fraud€and/or€intentional€misrepresentation.€€TheÏelements€of€fraud€are:ÌÓÓà8 àActions€for€fraud€contain€four€elements:€€(1)€an€intentionalÏmisrepresentation€of€a€material€fact,€(2)€knowledge€of€theÏrepresentation's€falsity,€and€(3)€an€injury€caused€by€reasonableÏreliance€on€the€representation.€€The€fourth€element€requires€that€theÏmisrepresentation€involve€a€past€or€existing€fact€or,€in€the€case€ofÏpromissory€fraud,€that€it€involve€a€promise€of€future€action€with€noÏpresent€intent€to€perform.€€Nondisclosure€will€give€rise€to€a€claimÏfor€fraud€when€the€defendant€has€a€duty€to€disclose€and€when€theÏmatters€not€disclosed€are€material.ÌÓ€ÓÌÓ€Óòòò òDobbs€v.€Guentheró óóó,€846€S.W.2d€270,€274€(Tenn.€App.€1992)€(citationsÏomitted).ÌProof€of€an€intentional€misrepresentation€is€the€first€element€of€fraud€when€theÏclaim€is€not€based€on€nondisclosure.€€òòò òSee€idó óóó;€òòò òFairway€Village€Condo.€AssððnÏv.€Connecticut€Mut.€Life€Ins.€Co.ó óóó,€934€S.W.2d€342,€347€(Tenn.€App.€1996).€ÏTherefore,€proof€of€a€misrepresentation€is€an€element€of€Appellantsðð€first€claim.ÌÌà àAppellantsðð€second€claim€is€violation€of€the€Tennessee€Consumer€ProtectionÏAct.× ƒ ××  ×€€The€Act€provides:€ÌÓÓà8 àAny€person€who€suffers€an€ascertainable€loss€of€money€or€property,Ïreal,€personal,€or€mixed,€or€any€other€article,€commodity,€or€thingÏof€value€wherever€situated,€as€a€result€of€the€use€or€employment€byÏanother€person€of€an€unfair€or€deceptive€act€or€practice€declared€toÏbe€unlawful€by€this€part,€may€bring€an€action€individually€to€recoverÏactual€damages.€ÌÓ€ÓÌÓ€ÓòòTenn.€Code€Ann.óó€ðð€47„18„109(a)(1)€(1995).€€Neither€the€Tennessee€courts€norÏthe€federal€courts€have€defined€the€terms€ð ðunfairðð€and€ð ðdeceptiveðð€with€anyÏcertainty.€€Nevertheless,€the€Tennessee€Supreme€Court€has€accepted€theÏcontention€that€a€misrepresentation€can€constitute€an€ð ðunfairðð€and€ð ðdeceptiveðð€actÏor€practice.€€òòò òSee€Ganzevoort€v.€Russelló óóó,€1997€WL€273980,€at€*7€(Tenn.€MayÏ27,€1997)€(mandate€issued€16€September€1997).€€Thus,€proof€of€aÏmisrepresentation€can€be€an€element€of€a€claim€brought€pursuant€to€the€TennesseeÏConsumer€Protection€Act.ÌÌà àAppellantsðð€final€claim€is€that€Appellees€are€liable€under€the€terms€of€theÏcontract€for€Christopherððs€breach€of€the€contract.€€Success€on€this€claim€requiresÏAppellants€to€establish€a€breach€by€Christopher€and€a€provision€of€the€contractÏholding€Appellees€liable.€€It€appears€from€the€complaint€Appellants€claimÏChristopher€breached€the€contract€by€misrepresenting€the€condition€of€the€pool.€ÏTherefore,€it€is€necessary€for€Appellants€to€prove€the€existence€of€aÏmisrepresentation€before€they€can€hold€Appellees€liable€under€the€contract.ÌÌà àBecause€œproof›€of€a€misrepresentation€is€an€element€of€each€of€the€claimsÏdiscussed€above,€Appellees€will€prevail€on€summary€judgment€if€they€canÏdemonstrate€that€the€undisputed€facts€establish€there€were€no€misrepresentationsÏfor€which€Appellees€can€be€held€accountable.€€òòò òByrdó óóó,€847€S.W.2d€at€215€n.5.€€It€isÏthe€opinion€of€this€court€that€Appellees€did€not€meet€this€requirement.ÌÌà àAppellees€entire€argument€rests€on€the€contention€that€Appellees€did€notÏmake€any€written€or€oral€misrepresentations€to€Appellants.€€While€this€is€anÏimportant€fact,€it€is€not€enough.€€A€court€may€hold€a€party€liable€for€theÏmisrepresentation€of€a€third€person.€€For€example,€a€principle€may€be€liable€forÍthe€acts€of€an€agent.€€òòò òSecurity€Fed.€Sav.€and€Loan€Assoc.€v.€Riviera,ÏLtd.ó óóó,€856€S.W.2d€709,€715€(Tenn.€App.€1992).€€Thus,€the€fact€that€Appellees€didÏnot€make€a€misrepresentation€is€not€dispositive€of€the€case.€€Appellants€haveÏraised€several€theories€for€holding€Appellees€liable€for€the€actions€of€Christopher.€ÏWe€do€not,€however,€address€the€merits€of€these€theories€for€two€reasons.€€First,ÏAppellantsðð€alternate€theories€require€a€finding€that€Christopher€made€aÏmisrepresentation€and,€possibly,€a€finding€involving€Christopherððs€intent.€€ThereÏare€genuine€issues€as€to€these€facts,€and€the€facts€are€material€as€they€will€affectÏthe€disposition€of€Appellantsðð€claims.€€òòò òSee€Byrdó óóó,€847€S.W.2d€at€214.€€Second,Ïthere€are€not€enough€facts€in€the€record€upon€which€to€base€a€decision.ÌÌà àFinally,€Appellants€must€prevail€for€another€reasons.€€A€party€can€base€aÏclaim€of€fraud€or€violation€of€the€Tennessee€Consumer€Protection€Act€on€aÏpartyððs€nondisclosure€of€a€material€matter.€€òòò òSee€Ganzevoortó óóó,€1997€WL€273980,Ïat€*7;€ò òòòDobbsóóó ó,€846€S.W.2d€€at€274.€€Appelleesðð€argument€that€they€did€not€makeÏany€misrepresentations€has€no€bearing€on€such€a€claim€and€can€not€satisfy€theÏrequirements€of€summary€judgment.ÌÌà àFor€these€reasons,€it€is€the€opinion€of€this€court€that€the€trial€court€erred€inÏgranting€summary€judgment€in€favor€of€Appellees€because€Appellees€failed€toÏdemonstrate€that€they€are€entitled€to€a€judgment€as€a€matter€of€law.ÌÌà àTherefore,€it€follows€that€the€decision€of€the€court€is€reversed,€and€the€caseÏremanded€for€any€further€necessary€proceedings.€€The€cost€on€appeal€are€taxedÏagainst€defendants/appellees,€William€and€Lois€Gonser.ÌÌÌÓÓà àà àà àà àà àà àà à______________________________Ìà àà àà àà àà àà àà àWALTER€W.€BUSSART,€JUDGEÌÌÌCONCUR:ÌÌÌ_______________________________ÌHENRY€F.€TODD,€PRESIDING€Ìà àJUDGE,€MIDDLE€SECTIONÌÌÌ_______________________________ÌBEN€H.€CANTRELL,€JUDGE