WPC /# U: % 0(b w@!4au 0J 0T 0^* 0h 0r 0|b 0 0d 1u 0diU * AQH 0D 0@R 0D B) D/ B. BK D3h DC AM + v~< vHP LaserJet 4SiHPPCL5MS,,,,,,0nLh,  AZ"Arial RegularX($- - DUDaDӀ_#3|x2 0Indent123  2" 0Indent20 23  2, 0Indent30 0 23  26 0Indent40 0 0 23  2@ 0Indent50 0 0 0 23  2J 0Indent60 0 0 0 0 23  2T 0Indent70 0 0 0 0 0 23  2^ 0Indent80 0 0 0 0 0 0 23   ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)P 8Mac DefaultMac Default ` X<  9p`(Arial!"#$&C<< CLevel 1Level 2Level 3Level 4Level 5(3$ !  ("$    ($$   1  % Line 7 d((' dxd dP Pd'''''dxd%%%%7Border 1dd!#*C << G  !  #d#  ""     YYY FILEDXJuly1,1998CecilW.CrowsonAppellateCourtClerk  PtPtHH(FG(HH(d'hStyl{WP}01  HH  2$HH  Geneva  <Px443!#4$*$$*$ KK  Geneva  Geneva .,6 Geneva   ellan Geneva  ellan Geneva ! .       \RA'\7XXdd7      !R+,*A1-j|`  `@Rߛ @ INTHECOURTOFAPPEALSOFTENNESSEE@ ATNASHVILLE XRAZORBACKMARBLE   )MANUFACTURINGCO.,INC.,  )      ) Plaintiff/Appellee,   )      ) AppealNo.      ) 01A019709CH00512̜VS.      )      ) MontgomeryChancery      ) No.96070012D.D.ROBERTS,ROBERTS  )      CONSTRUCTIONCOMPANY,  )̜NARANP.PATEL,KUSUMN.  )̜PATEL,andHERITAGEBANK,  )      ) Defendant/Appellant.  )@ APPEALEDFROMTHECHANCERYCOURTOFMONTGOMERYCOUNTY@ ATCLARKSVILLE,TENNESSEE@ THEHONORABLEALEXW.DARNELL,CHANCELLOR̜RODGERN.BOWMAN601NorthSecondStreet,Suite4̜Clarksville,Tennessee370411404 AttorneyforPlaintiff/AppelleeLARRYJ.WALLACE118FranklinStreet̜Clarksville,TN37040 AttorneyforDefendants/Appellants@ AFFIRMEDASMODIFIED@ ANDREMANDED       BENH.CANTRELL,JUDGECONCUR:TODD,P.J.,M.S.KOCH,J. @ OPINION X  Inthisconstructioncontractdispute,theChanceryCourtofMontgomeryCountygrantedajudgmentplusprejudgmentinteresttoRazorbackMarbleManufacturingCompany,Inc.Onappeal,RobertsConstructionCompany,Inc.andD.D.Roberts,Individually,raiseissuespertainingtotheContractorsLicensingstatutesandtheNoticeofNonPaymentsstatute.RazorbackinsiststhatitwasduealargerjudgmentandagreaterawardofϜprejudgmentinterest.@ I.   RobertsConstructionCompany,Inc.receivedthecontracttoconstructaFairfieldInninClarksville.D.D.Roberts,presidentofthecompany,enteredintoacontractwithRazorbackMarbleManufacturingCompany,Inc.,anArkansascorporation,toinstallmarbleproductsinthemotelforatotalcontractpriceof$39,850.16.RazorbackdoesnothaveacontractorslicenseinTennessee.̛̜  Razorback,however,completeditsworkandsomeextraworkitclaimsthegeneralcontractorsagentsauthorizedandrequested.Whenitdidnotreceivepayment,RazorbacksuedRobertsConstructionandMr.Roberts.ThecomplaintallegedthatpursuanttoTenn.CodeAnn.6611145RazorbackgavenoticeofnonpaymenttothedefendantsonMay22,1996.Thedefendantsansweradmittedtheallegation.ThechancellorenteredjudgmentinfavorofRazorbackintheamountoftheoriginalcontractplus$3,800.75ofextras,andallowedprejudgmentinterestontheoriginalcontractamounttorunfromDecember8,1996.@ II.   ThefirstthreeissuesraisedbythedefendantsonappealpertaintoRazorbacksfailuretohaveacontractorslicenseinTennessee.Becauseofthisfact,thedefendantsallegethatRazorbacksrecoverymustbelimitedtoactualdocumentedexpensesthatcanbeshownbyclearandconvincingproof.SeeTenn.CodeAnn.626103(b).Sincetherecorddoesnotcontainproofofspecificexpenses,theappellantsarguethatthejudgmentinfavoroftheplaintiffmustbereversed.  Wenote,however,thattheissueofthelicensewasnotraisedasadefenseinthedefendantsanswer.Whenthequestionwasfirstaskedatthetrial,Razorbackslawyerobjectedbecausethedefensehadnotbeenpled.Inthe͜ensuingdiscussionthecourtimmediatelyruledthatRazorbackdidnothavetohavealicenseiftheyweredoingworkforacontractor.Theretheissuediedinthetrialcourt.  AlthoughtheissuesinthiscourtrelatetothequestionofwhetheracontractorinRazorbackspositionneedstobelicensedinTennessee,wethinkthedefensehasbeenwaivedbythedefendantsfailuretopleaditinthecourtbelow.SeeTenn.R.Civ.Proc.12.08.ThedefendantsrelyonthefactthatRazorbackdidnotputonanyproofofitsactualdocumentedexpensesinordertorecoveranythingunderTenn.CodeAnn.626103(b),butsincethelicensingstatutehadnotbeenraisedasadefenseRazorbackwasnotonnoticethatitneededtodoso.Thus,itwouldnotbefairtorejecttheclaimatthisstagebasedonadefensethatwasnotraisedbelow.  We,therefore,pretermitthequestionofwhetherRazorbackwasrequiredtohaveaTennesseelicense.Wedonote,however,thatinthemassiveoverhaulofthelicensingstatutein1994,thelegislaturerepealedthestatutethatspecificallyexemptedsubcontractorsfromthestatutesrequirements.Andwefindnocomparableexemptioninthepresentstatute,althoughthesponsorofthe1994actstatedontheHousefloorthathisbillhadnoeffectonthesubcontractors.Wedeferanyjudgmentontheproperinterpretationofthestatuteuntilthequestionissquarelypresentedtous.@ III.   TheappellantsalsorelyonTenn.CodeAnn.6611145(a),whichrequiresanoticeofnonpaymenttobegiventotheownerandthecontractorcontractingwiththeownerwithinsixtydaysofthelastdayofthemonthinwhichworkwasperformed.Whilewenote,parenthetically,thattheonlyconsequenceoffailingtocomplywiththestatuteisalossoflienrights,seeTenn.CodeAnn.6611145(c),thecomplaintinthiscaseallegedthatthenoticehadbeengivenandthedefendantsansweradmittedit.  Forthesereasonswethinkthisissueiswithoutmerit.@ IV.   TheappellantsassertthatthechancellorerredinadmittingevidenceofanoffertocompromiseRazorbacksclaim.Therecordrevealsthattheissuecameupinthefollowingway: 0   ӜQ.[Mr.Bowman] Okay.Mr.Roberts,thisFAXcontainsthetotalbillingfortheprojectasfarasRazorbackwasconcerned.AndyoureceivedthisonApril4th,1996?̜A. Yes.̜Q. DidyouevercallRazorbackwhenyoureceivedthisandcomplaintotheminanyfashionabouttheworkthathadbeendoneorthechargesthathadbeenmade?̜A. Yes,Icalledthem,evenwrotethemaletter.̜Q. CouldIseetheletterthatyouwrotetothem?̜A. Idonthavetheletter.Ihavetheirreplytomyletter.̜Q. Whereistheletterthatyousent?Doyouknow?̜A. Idontknow.Wegotitlostsomewhere.̜Q. MayIseethereplytotheletter?̜A. Heresthereplytotheletter.̜Q. MayIseethat,please?̛̜ (DocumentpassedtoMr.Bowman.)̛̜ Thiswasinresponsetoyouroffertosettlethismatter,isthatcorrect?̜A. Thatsright.̛̜ MR.WALLACE:Objection,YourHonor.̛̜ THECOURT:No,hecanuseit,whateverthelettersays.̛̜ MR.BOWMAN:LetsmakethisExhibit5toyourtestimony.̛̜ MR.WALLACE:Fortherecordagain,Imgoingtoobjectthatsettlementoffersarenotadmissible.̛̜ THECOURT:Ofcourse,thequestioncomesdown,counselor,towhethertheworkwasdoneornot.Andtheletteritselfmayrevealcertainthings.Ithasnothingtodowithsettlement.       ThelettermadeanexhibitatthatpointwasactuallyaletterfromRazorbacktoMr.Robertsanditcontainedthefollowing:8 8  WewillsettletheaccountontheFairfieldInnforacertifiedcheckof$40,000.00forthemarblework,alsoa$1,350.00certifiedcheckforplumbingandwoodworkaroundthewhirlpools.8 8  The$40,000.00certifiedchecktobemadeouttoRazorbackMarble,andthe$1,350.00certifiedchecktobemadeouttoTonyWeatherford.8 8  Paymentshouldbemadein14workingdaysofreceivingthisletter.Whenthechecksarereceivedanddeposited,alllegalactionwillbewithdrawn.  Tenn.R.Evid.408prohibitstheintroductionofevidenceshowinganofferoracceptanceofacompromise toproveliabilityfororinvalidityofacivilclaim....WedonotreadtheexchangeincourtnortheletterastendingtoprovethedefendantsliabilityforRazorbacksclaim.ThereisahintthatMr.RobertshadproposedasettlementandthelettercontainedRazorbackscounterproposal.Buttheevidenceintherecordaboutthecontractandthecompletionofitissooverwhelmingthattheevidencequotedaboveisatmostharmless.SeeTenn.R.App.Proc.36(b).@ V.   Razorbackallegesthatthechancellorshouldhaveallowedarecoveryforalloftheextrasitperformed.Theclaimwasfor$7,451.75,ofwhichthechancellorallowed$3,800.75.ThedefendantsdefenseisthatnoneofitwasauthorizedbyMr.Roberts.  Wefindthattherecordpreponderatesinfavorofafindingthatalltheworkwasdoneandthattheagentsforthedefendants,onthesiteandinchargeofthework,authorizedit.AlthoughMr.Robertsmayhavehadapolicyofreservingtohimselftherighttoapproveanycontractextras,heapparentlydidnotcommunicatethattoRazorbackortohisagentsonthejob.Therefore,thejudgmentshouldbeincreasedtoincludethetotalof$7,451.75inextras.̜    ћ@ VI.   RazorbackalsoassertsthatthechancellorerredinnotallowingprejudgmentinterestfromApril4,1996,thedateitbilledthedefendantsforthefullamount.  TheawardofprejudgmentinterestisgovernedbyTenn.CodeAnn.4714123,whichsaysthatprejudgmentinterestmaybeawardedasanelementof,orinthenatureofdamages, inaccordancewiththeprinciplesofequityatarateofupto10%perannum.Theawardiswithinthesounddiscretionofthetrialjudge.Myintv.Allstate,____S.W.2d____(Tenn.1998).Theobjectistofullycompensateplaintiffsfortheirlosses.Id.̛  Wethinkthetrialjudgesdiscretionappliestothetimeatwhichtheprejudgmentinterestwillbegintorun.ThechancellorchoseDecember8,1996whentheinterestbegantoaccrue.HebasedthedateonafindingthatsomeinformationhadbeenfurnishedtoMr.RobertsonNovember8,1996andthatthirtydaysfromthatdatewasareasonabletimeinwhichtopaytheclaim.  WethinktheDecember8,1996dateshouldbeaffirmed.Wealsothink,however,thattheinterestbegantoaccrueonthewholeamountoftheclaim,$47,301.91.  AsmodifiedthejudgmentofthecourtbelowisaffirmedandthecauseisremandedtotheChanceryCourtofMontgomeryCountyfortheenforcementofthejudgment.Taxthecostsonappealtotheappellants.      _______________________________      BENH.CANTRELL,JUDGECONCUR:_______________________________HENRYF.TODD,PRESIDINGJUDGEMIDDLESECTION_____________________________WILLIAMC.KOCH,JR.,JUDGE    X  @