ÿWPCë   Æjjq—%¢Ñ°™fÐö£Ñ°ƒ«Ö32ÏãÊ“HNágf©ˆKP©áÇŽ¢ù¢Žo^Á¾{€Ñ•ŠÛÃQw8TI-ç ‰h&,·nAÜr[Žø"¨i ã:×wä =N¢BÄÜj>£yÞjD?)âu;›ãc#ZŸgÅfäußtÒ°e‚dÑA@#,eÅy.—"$0)/¶ßÔQI¾´›%‡I WŒÐâÀ.÷p7Û**œ…(É’”ðõUû )-möûb±ÃÍ.Ø@KW•޲WëáÚ3vl³€xÖ[“Û^X¨þ"¾Ïч#-çwWų¬õ™{†Â\@=ø#SZ¥i“ëªhl ³è`õãÎÁPGýén|£Zp¤Xdöv̓ø ˜Ò…•,ÓÐÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿbÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ•×× 0ëlzWWW BÑÑ 0¤î D5’ D-Ç 0Kôô AS?Æ’ 0¤X 0Dü A«@ ˜\\IB01S02\CLERKJACÈÈ,,,,ÈÈ0»so2î (`£ª$¡¡Ñ€.ÑÑ8€½­»»d»»d8ÑÑ ý ÑÓ  Ó(í€"  Z6Times New Roman Regular)Z8201s02 ˜C:\PROGRA~1\COREL\WORDPE~1\TEMPLATE\CUSTOM~1\REVISE~1.WPTC:\Program Files\Corel\WordPerfect Office 2000\Template\Custom WP Templates\revised standard opinion.wpt3|x ÿU‹ÿÀÀÀ(#Ã$òòÚ  Ú0Ú  ÚóóLevel 1Level 2Level 3Level 4Level 5‚Level 1Level 2Level 3Level 4Level 5„Level 1Level 2Level 3Level 4Level 5…Level 1Level 2Level 3Level 4Level 5(ÖÃ9 Z‹6Times New Roman Regular(ÖÃ9 Z ‹6Times New Roman Regularô\  `‹&Times New Roman "ÔUSUS.,ÔÔ_Ô ÆÝ ƒR¶6$ÝÓ  Óà  àòòÚ  Ú3Ú  ÚóóÔ€ô©ˆò»»ÔÝ  ÝÔ_ÔSection€48„212„101€of€the€Tennessee€Code€provides€that€ð ð[t]he€LLC€has€the€same€powers€as€an€individual€toÐ ° Ðdo€all€things€necessary€or€convenient€to€carry€out€its€business€and€affairs.ðð€€Tenn.€Code€Ann.€ðð€48„212„101€(2002).€Ð qÁ ÐIncluded€among€those€general€powers,€the€LLC€has€the€power€to€ð ð[m]ake€and€amend€an€operating€agreement€notÐ 2‚ Ðinconsistent€with€its€articles€or€with€the€laws€of€this€state,€for€managing€the€business€and€regulating€the€affairs€of€theÐ óC ÐLLC.ðð€€òòIdóó.€ðð€48„212„101(2).- ù- ‹Ý ƒR¶6$ÝÓ  Óà  àòòÚ  Ú1Ú  ÚóóÔ€ô©ˆò»»ÔÝ  ÝÔ_ÔÑÀuÂÑSection€29„14„103€of€the€Tennessee€Code,€Tennesseeððs€Declaratory€Judgment€Act,€provides€as€follows:Ð ° ÐÌà8  àà8` Ð Ð àAny€person€interested€under€a€deed,€will,€written€contract,€or€other€writingsÐ 2‚ Ðconstituting€a€contract,€or€whose€rights,€status,€or€other€legal€relations€are€affectedÐ óC Ðby€a€statute,€municipal€ordinance,€contract,€or€franchise,€may€have€determined€anyÐ ´ Ðquestion€of€construction€or€validity€arising€under€the€instrument,€statute,€ordinance,Ð uÅ Ðcontract,€or€franchise€and€obtain€a€declaration€of€rights,€status€or€other€legalÐ 6 † Ðrelations€thereunder.Ð÷ G` x` x ÐÌTenn.€Code€Ann.€ðð€29„14„103€(2000).(|G2¶6$¤¤Ý ƒ£ª!ÝÑ€.ÑÑ8€Ý»»dd8ÑÑ ý ÑÓ  ÓÝ  Ýà  àòòÚ  Ú0Ú  ÚóóÔ€ôª`ò»»Ô pÝ ƒR¶6$ÝÓ  Óà  àòòÚ  Ú2Ú  ÚóóÔ€ô©ˆò»»ÔÝ  ÝÔ_ÔSection€48„206„101(c)€of€the€Tennessee€Code€addresses€the€binding€effect€of€an€operating€agreement€on€anÐ ° ÐLLC.€€That€section€provides€as€follows:Ð qÁ ÐÌà8  àà8` Ð Ð àBINDING€EFFECT.€Unless€otherwise€provided€in€the€articles€or€in€an€operatingÐ óC Ðagreement€adopted€or€agreed€to€by€all€members€and€holders€of€binding€contributionÐ ´ Ðagreements,€an€operating€agreement€that€has€been€adopted€or€agreed€to€by€theÐ uÅ Ðrequired€vote€of€the€members€and€person€or€entity€bound€by€a€contributionÐ 6 † Ðagreement€shall€be€binding€on€the€LLC€and€its€members,€and€any€person€or€entityÐ ÷ G Ðbecoming€a€member€or€entering€into€a€contribution€agreement€or€a€contributionÐ ¸  Ðallowance€agreement€and€such€person€shall€be€deemed€to€have€adopted€and€agreedÐ y É  Ðto€it.Ð: Š ` x` x ÐÌTenn.€Code€Ann.€ðð€48„206„101(c)€(2002).Ð ¼   Ð d(|3ÿ$££Ý ƒ£ª!ÝÑ€.ÑÑ8€Ý»»dd8ÑÑ ý ÑÓ  ÓÝ  ÝVVVV)ÿÿ!dxdx)!ÈÈÈÈdxdx( ±þ$’’ò òFigure€Ú  Ú1Ú  Úó ó^_X`YEþÿ<<CÿÿƒLevel 1Level 2Level 3Level 4Level 5(|3ÿ$¢¢Ý ƒ£ª!ÝÑ€.ÑÑ8€Ý»»dd8ÑÑ ý ÑÓ  ÓÝ  Ý($$””ò òÚ  Ú1Ú  Úó óX[Z&OLE 2.0 Box <=8ÿÿÿÿÿÿÿÿÿÿCÿÿ HKKKKÝ ƒ£ª!ÝÑ€.ÑÑ8€Ý»»ddÈ8ÑÑ ý ÑÓ  ÓÝ  ÝÔ_ÔÑ  ÑÔ€¼Ý»»»ÔÑ8€À÷XXdé»»d8ÑÑ  Ñà@ò ò ìàÔ‡îc¾î»¼ÝÔIN€THE€COURT€OF€APPEALS€OF€TENNESSEEˆÐ ° Ðà@òò%ìàAT€JACKSONÔ#†¼Ý»îîc¾ #ԈРÓ# ÐÓ  ÓJanuary€19,€2005€SessionÐ öF ÐÔ‡XÀ÷X»¼ÝÔÌò òÔ#†¼Ý»XXÀ÷ó#ÔRIVERSIDE€SURGERY€CENTER,€LLC,€òòet€alóó.€v.€METHODIST€HEALTHÐ ï? ÐSYSTEMS,€INC.òòóó€Ô‡XÀ÷X»¼ÝÔó ó€Ð  P ÐÌà@@½½ìàò òDirect€Appeal€from€the€Chancery€Court€for€Dyer€CountyÐ ú J Ðà@@øøìàNo.€03C202€€€€€€W.€Michael€Ô_ÔMaloanÔ_Ô,€ChancellorÐ ä 4 ÐÌÌà@@ìì*ìàßA€V) °°` d€÷E<¡` AßÐ ¢ò  ÐÌà@@TTìàNo.€W2004„01195„Ô_ÔCOAÔ_Ô„R3„CV€„€Filed€March€14,€2005Ð ›ë  ÐÌßA€V) °°` dE<n` AßÐ o¿  Ðó óÌÓ  ÓÔ‡Xp6XXXÀ÷ÔThis€case€presents€the€interpretation€of€a€transfer€restriction€clause€in€an€LLC€operating€agreement.€Ð g· ÐThe€plaintiffs€filed€a€motion€for€summary€judgment€requesting€a€declaration€that€the€defendant,€byÐ P  Ðnegotiating€for€the€sale€of€its€interest€in€the€LLC€and€granting€a€third„party€buyer€an€option€toÐ 9‰ Ðpurchase€defendantððs€interest,€had€triggered€the€plaintiffsðð€preemptive€purchase€rights€under€theÐ "r Ðoperating€agreement.€€The€defendants€filed€a€cross„motion€for€summary€judgment€arguing€that€theÐ  [ Ðtransfer€restriction€clause€in€the€operating€agreement€was€triggered€only€by€written€notice€of€theÐ ôD Ðintent€to€sell,€which€was€never€given.€€The€trial€court€found€that,€under€the€language€of€the€operatingÐ Ý- Ðagreement,€the€plaintiffsðð€preemptive€purchase€rights€were€triggered€by€theð ðdesire€or€wishðð€of€theÐ Æ Ðselling€member€to€transfer€its€interest€and€that€the€defendant€had€the€desire€or€wish€to€transfer€itsÐ ¯ÿ Ðmembership€interest€in€the€LLC.€€The€defendant€appeals.€€We€affirm.Ð ˜è ÐÔ#†XÀ÷XXXp6ö#ÔÔ#†¼Ý»XXÀ÷¡#ÔÔ‡XÀ÷X»¼ÝÔÓêÓÌò òTenn.€R.€App.€3€Appeal€as€of€Right;€Judgment€of€the€Chancery€Court€Affirmed;€andÐ jº ÐRemandedó óÐ T¤ ÐÌòòÓ  ÓÔ#†¼Ý»àXÀ÷ø #ÔÔ‡XÀ÷X.¼ÝÔDavid€R.€Farmer,€J.óó,€delivered€the€opinion€of€the€court,€in€which€òòW.€Frank€Crawford,€Ô_ÔP.J.Ô_Ô,€Ô_ÔW.S.Ô_Ô,óóÐ ' w Ðand€òòHolly€M.€Kirby,€J.óó,€joined.Ð !`  ÐÌRobert€A.€McLean€and€Georgia€A.€Ô_ÔRobinetteÔ_Ô,€Memphis,€Tennessee,€for€the€appellants,€MethodistÐ â"2" ÐHealth€Systems,€Inc.Ð Ë## ÐÌDouglas€W.€Ô_ÔWilkersonÔ_Ô€and€W.€Lewis€Jenkins,€Jr.,€Ô_ÔDyersburgÔ_Ô,€Tennessee,€for€the€appellees,Ð %í % ÐRiverside€Surgery€Center,€LLC,€Jeffrey€Ô_ÔSwetnamÔ_Ô,€M.D.,€G.€S.€Ô_ÔBindraÔ_Ô,€M.D.,€Richard€Cape,Ð †&Ö!& ÐM.D.,Jim€Ô_ÔCaylorÔ_Ô,€M.D.,€Roy€Chu,€M.D.,€Michael€Heck,€M.D.,€Carl€Huff,€M.D.,€Jerry€Ô_ÔJerniganÔ_Ô,Ð o'¿"' ÐM.D.€Ian€Ô_ÔLaingÔ_Ô,€M.D.,€Russell€Lomas,€M.D.,€Fred€Moore,€M.D.,€Said€Ô_ÔNabhanÔ_Ô,€M.D.€and€Ô_ÔRamziÔ_ÔÐ X(¨#( ÐÔ_ÔYounisÔ_Ô,€M.D.Ð A)‘$) ÐÓ´ ÓÌÌÌÌÐ Î-).ý Ðò òOPINIONó óÔ#†¼Ý»XXÀ÷ã #ÔÔ‡XÀ÷X»¼ÝÔÐ ° ÐÌÔ#†¼Ý»XXÀ÷)#ÔÔ€XÀ÷X»¼ÝÔÔ‡Xp6XXXÀ÷Ôò òòòFactual€Background€and€Procedural€HistoryóóÐ ƒÓ Ðó óÓ  ÓÌà  àIn€1996,€Methodist€Health€Systems,€Inc.€(ð ðMethodistðð)€and€a€group€of€physicians€(theÐ T¤ Ðð ðPhysiciansðð)€formed€Riverside€Surgery€Center,€LLC€(ð ðRiversideðð),€an€ambulatory€surgery€centerÐ =  Ðdesigned€for€out„patient€surgery.€€In€1997,€the€parties€executed€an€operating€agreement€for€theÐ & v Ðgovernance€of€Riverside€(the€ð ðOperating€Agreementðð).€€Pursuant€to€the€Operating€Agreement,€theÐ  _ ÐPhysicians€owned€a€51%€interest€in€Riverside,€while€Methodist€owned€the€remaining€49%€interest.€Ð ø H ÐAdditionally,€within€the€Operating€Agreement€the€parties€included€a€transfer€restriction€clause,€orÐ á 1  Ðð ðright€of€first€refusalðð€provision,€designed€to€restrict€the€transferability€of€an€individual€memberððsÐ Ê   Ðinterest€in€Riverside.€€The€pertinent€provisions€of€the€Operating€Agreement€provide€as€follows:Ð ³  ÐÌà8  à16.€€òòRESTRICTION€UPON€TRANSFER€OF€ALL€OR€PART€OF€A€MEMBERððSÐ …Õ  ÐINTERESTóó.€€A€Ô#†XÀ÷XXXp6 #ÔÔ‡Xp6XXXÀ÷ÔMember€may€not€sell,€assign€or€otherwise€transfer€(hereafter,Ð n¾  Ðcollectively€ð ðtransferðð)€all€or€part€of€its€interest€in€the€Company€(i.e.,€financialÐ W§  Ðinterests€and€governance€rights)€to€any€person€except€as€specified€below€in€thisÐ @ Ðparagraph:Ô#†XÀ÷XXXp6x#ÔÔ‡Xp6XXXÀ÷ÔÐ)yÐ Ð  ÐÌÔ#†XÀ÷XXXp6ê#ÔÔ‡Xp6XXXÀ÷Ôà8  àà8` Ð Ð à(a)€€The€Member(s)€wishing€to€transfer€its€interest€must€give€writtenÐ ûK Ðnotice€to€all€Members€of€the€intent€to€transfer€the€interest,€and€mustÐ ä4 Ðoffer€the€Physician€Members€the€first€opportunity€to€purchase€suchÐ Í Ðinterest.€€Any€Physician€Member(s)€who€wish€[sic]€to€purchase€theÐ ¶ Ðinterest€shall€have€the€first€right€to€purchase€said€interest€at€the€priceÐ Ÿï Ðprovided€for€in€Section€18.€.€.€.Ô#†XÀ÷XXXp6L#ÔÔ‡Xp6XXXÀ÷ÔЈØ` x` x ÐÌÔ#†XÀ÷XXXp6#ÔÔ‡Xp6XXXÀ÷Ôà8  àà8` Ð Ð à(b)€If€no€Physician€Member(s)€desires€to€purchase€such€interest€atÐ Zª Ðsuch€price,€and€if€notice€of€the€desire€to€purchase€such€interest€is€notÐ C“ Ðreceived€by€the€Member€wishing€to€transfer€its€interest€within€thirtyÐ ,| Ð(30)€days€after€the€Physician€Membersðð€receipt€of€the€notice€of€intentÐ e Ðto€sell,€then€Methodist€shall€have€the€right€to€purchase€the€interest€atÐ þN Ðthe€price€provided€for€in€Section€18.€€If€Methodist€desires€to€purchaseÐ ç 7 Ðthe€interest,€it€shall€give€written€notice€within€thirty€(30)€days€afterÐ Ð!   Ðthe€expiration€of€the€thirty€(30)€day€period€referred€to€above€to€theÐ ¹" ! ÐMember€who€wishes€to€transfer€the€interest.Ô#†XÀ÷XXXp6ò#ÔÔ‡Xp6XXXÀ÷ÔТ#ò"` x` x ÐÌà8  àà8` Ð Ð àÔ_Ô(c)Ô_Ô€If€no€Physician€Member(s)€nor€Methodist€agree€to€purchase€theÐ t%Ä $ Ðentire€interest€of€the€Member€desiring€to€transfer€at€the€price€providedÐ ]&­!% Ðfor€in€Section€18€within€the€time€limits€set€forth€in€paragraph€[16](b),Ð F'–"& Ðthen€the€Member€desiring€to€transfer€shall€be€free€of€the€restrictionsÐ /(#' Ðof€this€Section€16€for€a€period€of€ninety€(90)€days€after€the€expirationÐ )h$( Ðof€the€cumulative€sixty€(60)€day€period€in€Section€[16](b),€and€mayÐ *Q%) Ðoffer,€and€transfer€the€interest€to€any€willing€buyer,€at€the€priceÐ ê*:&* Ðprovided€for€in€Section€18.ÐÓ+#'+` x` x Їà  à.€.€.€.Ð ° ÐÌà8  à18.€€òòPURCHASE€PRICE;€LIABILITIESóó.€€Ô#†XÀ÷XXXp6[#ÔÔ‡Xp6XXXÀ÷ÔIn€the€event€of€a€purchase€and€saleÐ ‚Ò Ðrequired€by€Section€16€.€.€.,€the€purchase€price€to€be€paid€to€the€selling€Member€.€.€.Ð k» Ðshall€be€based€upon€the€ð ðnet€book€valueðð€of€the€Company€which€shall€be€defined€asÐ T¤ Ðall€Company€assets€except€real€property€minus€all€Company€liabilities€plus€theÐ =  Ðappraised€value€of€any€real€estate€owned€by€the€Company€determined€as€of€the€dateÐ & v Ðthat€a€selling€Member€gives€notice€to€the€Company€of€his€desire€to€sell€or€terminate.Ð  _ Ð.€.€.€€The€price€to€be€paid€shall€be€a€proportionate€part€of€that€net€equity,€suchÐ ø H Ðproportion€to€be€equal€to€the€proportion€of€the€Company€owned€by€the€selling€.€.€.Ð á 1  ÐMember.Ô#†XÀ÷XXXp6!#ÔÔ‡Xp6XXXÀ÷ÔÐÊ  Ð Ð  ÐÌà  àIn€2002,€the€parties€began€exploring€the€possibility€of€a€change€in€the€ownership€structureÐ œì  Ðof€Riverside.€€In€April€2002,€the€Physicians€hired€the€Bloom€Organization€(ð ðBloomðð)€to€prepare€aÐ …Õ  Ðvaluation€report€of€Riverside€and€provide€strategic€recommendations€for€the€simultaneous€purchaseÐ n¾  Ðof€Methodistððs€interest€in€Riverside€and€re„syndication€of€that€interest€to€a€third„party€ambulatoryÐ W§  Ðsurgery€center€or€management€company.€€Dr.€Jeffrey€Ô_ÔSwetnamÔ_Ô,€Chief€Manager€of€Riverside,Ð @ Ðtestified€in€his€deposition€that€Bloom€was€consulted€to€determine€the€book€value€and€fair€marketÐ )y Ðvalue€of€Riverside€in€order€to€establish€the€cost€of€buying€out€Methodist.€€Following€BloomððsÐ b Ðvaluation€reports,€the€Physicians€received€several€offers€for€Riverside,€including€one€from€BaptistÐ ûK ÐHealth€Services,€but€none€were€accepted.€€Ð ä4 ÐÌà  àLater€in€2002,€Methodist€began€soliciting€bids€from€various€healthcare€companies€for€theÐ ¶ Ðpurchase€of€Methodistððs€west€Tennessee€assets.€€In€its€bid€requirement€sheet,€Methodist€providedÐ Ÿï Ðthat,€as€part€of€the€minimum€requirements€to€bid,€the€bidding€party€ð ð[Ô_Ôm]ustÔ_Ô€agree€to€the€acquisitionÐ ˆØ Ðof€the€assets€(but€not€working€capital)€of€all€7€hospitals,€affiliated€companies,€physician€practices,Ð qÁ Ðphysician€agreements€and€joint€ventures.ðð€€Although€Riverside€was€included€among€the€assets€listedÐ Zª Ðin€the€bid€sheet,€Methodist€claimed€that€all€west€Tennessee€assets€were€included€so€that€prospectiveÐ C“ Ðbidders€could€not€ð ðcherry€pickðð€the€properties€they€wished€to€purchase.€€On€August€29,€2002,Ð ,| ÐCommunity€Health€Systems,€Inc.€(ð ðCHSðð)€submitted€a€formal€proposal€to€Methodist€indicating€itsÐ e Ðdesire€to€purchase€certain€Methodist€assets,€including€Methodistððs€interest€in€Riverside.€€Methodistððs€Ð þN Ðboard€of€directors€met€on€September€25,€2002€and,€by€resolution,€authorized€further€negotiationsÐ ç 7 Ðwith€CHS€through€the€execution€of€a€letter€of€intent.€€The€letter€of€intent€stated,€ð ð[this€letterÐ Ð!   Ðagreement€.€.€.€memorializes€the€agreement€between€CHS€and€[Methodist]€to€work€diligently€andÐ ¹" ! Ðin€good€faith€to€negotiate,€execute€and€deliver€a€definitive€asset€purchase€agreement€in€substantiallyÐ ¢#ò" Ðthe€form€attached€hereto€as€Exhibit€A.ðð€€The€following€day,€Methodist€issued€a€press€releaseÐ ‹$Û# Ðannouncing€that€it€had€entered€into€exclusive€negotiations€with€CHS€to€sell€seven€of€MethodistððsÐ t%Ä $ Ðhospitals,€along€with€associated€operations.€€Ð ]&­!% ÐÌà  àÔ#†XÀ÷XXXp6h$#ÔÔ‡Xp6XXXÀ÷ÔOn€October€22,€2002,€Dr.€Ô_ÔSwetnamÔ_Ô€wrote€a€letter€to€Methodist€indicating€that€MethodistððsÐ /(#' Ðactions€may€have€triggered€the€Physiciansðð€rights€under€Section€16€of€the€Operating€Agreement€andÐ )h$( Ðthat€the€Physicians€were€in€the€process€of€determining€the€book€value€of€the€surgery€center.€€As€aÐ *Q%) Ðpostscript€to€the€October€22,€2002€letter,€Dr.€Ô_ÔSwetnamÔ_Ô€stated:€ð ðAs€per€our€discussion,€shouldÐ ê*:&* ÐMethodist€desire€to€make€an€offer€for€our€51%,€please€submit€in€writing.ðð€€Methodist€promptlyÐ Ó+#'+ Ðresponded€by€letter€advising€the€Physicians€that€it€had€not€yet€a€made€a€final€determination€ofÐ ° Ðwhether€it€would€sell€its€interest€in€Riverside€and,€therefore,€had€not€sent€notice€of€such€intent€toÐ ™é Ðother€members€of€Riverside.Ð ‚Ò ÐÌà  àOn€October€23,€2002,€the€day€following€Dr.€Ô_ÔSwetnamÔ_Ôððs€letter€to€Methodist,€MethodistððsÐ T¤ Ðboard€of€directors€met€and€adopted€another€resolution€regarding€the€proposed€Methodist/CHSÐ =  Ðtransaction.€€In€that€resolution,€Methodist€referenced€the€ongoing€negotiations€with€CHS,€includingÐ & v Ðthe€letter€of€intent€and€draft€asset€purchase€agreement€listing€Riverside€as€an€asset.€€During€theÐ  _ Ðcourse€of€negotiations€between€Methodist€and€CHS,€Dr.€Ô_ÔSwetnamÔ_Ô€met€with€representatives€of€bothÐ ø H ÐMethodist€and€CHS€in€an€attempt€to€reach€an€agreement€regarding€the€sale€of€either€the€PhysiciansððÐ á 1  Ðor€Methodistððs€interest€in€Riverside,€but€the€parties€were€unable€to€reach€a€satisfactory€resolution.€Ð Ê   ÐÌÔ#†XÀ÷XXXp6e0#ÔÔ‡Xp6XXXÀ÷Ôà  àAt€some€point€after€October€23,€2002,€Methodist€withdrew€its€interest€in€Riverside€fromÐ œì  Ðinclusion€in€the€Methodist/CHS€transaction,€and,€by€letter€dated€November€27,€2002,€MethodistÐ …Õ  Ðinformed€Dr.€Ô_ÔSwetnamÔ_Ô€that€it€would€retain€its€interest€in€Riverside.€€òòóóTherefore,€the€Methodist/CHSÐ n¾  Ðtransaction€closed€on€January€3,€2003€without€the€inclusion€of€Riverside.€€However,€simultaneousÐ W§  Ðwith€the€closing€of€the€Methodist/CHS€transaction,€Methodist€executed€an€option€agreement€withÐ @ ÐCHS€and€Ô_ÔDyersburgÔ_Ô€Hospital€Corporation€(ð ðÔ_ÔDHCÔ_Ôðð),€a€wholly€owned€subsidiary€of€CHS,€that,Ð )y Ðconditioned€upon€the€Physicians€waiving€their€right€of€first€refusal,€(1)€granted€Ô_ÔDHCÔ_Ô€an€option€toÐ b Ðpurchase€Methodistððs€interest€in€Riverside€for€a€period€of€three€years€and€(2)€granted€Ô_ÔDHCÔ_Ô,€for€aÐ ûK Ðperiod€of€two€years€following€the€option€period,€a€right€of€first€refusal€upon€the€sale€of€MethodistððsÐ ä4 Ðinterest€in€Riverside€(the€ð ðÔ_ÔDHCÔ_Ô€Option/First€Refusal€Agreementðð).€€Specifically,€the€Ô_ÔDHCÔ_ÔÐ Í ÐOption/First€Refusal€Agreement€provided,€in€pertinent€part,€the€following:Ð ¶ ÐÌà8  àà ` à1.€€òòOptionóó.€€For€a€period€of€three€(3)€years€following€the€execution€of€thisÐ ˆØ ÐAgreement€(the€ð ðOption€Periodðð)€and€subject€to€the€limitations€set€forth€in€SectionÐ qÁ Ð4€hereof,€Ô_ÔDHCÔ_Ô€may€exercise€the€option€(the€ð ðOptionðð)€to€acquire€[Methodistððs€49%Ð Zª Ðmembership€interest€in€Riverside]€for€the€[amount€of€$1,800,000].€€Ô_ÔDHCÔ_Ô€mayÐ C“ Ðexercise€the€Option€by€sending€written€notice€of€the€exercise€of€the€Option€(theÐ ,| Ðð ðOption€Noticeðð)€to€Methodist€during€the€Option€Period.€€Upon€receipt€of€the€OptionÐ e ÐNotice,€Methodist€shall€make€reasonable€and€good€faith€efforts€to€obtain€the€consentsÐ þN Ðand€approvals€described€in€Section€4€hereof.€€If€such€consents€and€approvals€cannotÐ ç 7 Ðbe€reasonably€obtained€by€Methodist€within€thirty€(30)€days€of€the€Option€Notice,Ð Ð!   Ð[Methodistððs€49%€interest€in€Riverside]€will€not€be€transferred,€and€Ô_ÔDHCÔ_Ô€mayÐ ¹" ! Ðexercise€the€Option€at€any€time€during€the€remainder€of€the€Option€Period.Т#ò"Ð Ð  ÐÌà8  àà ` à2.€€òòRight€of€First€Refusalòòóóóó.€€During€the€fourth€(4òòthóó)€and€fifth€(5òòthóó)€yearsÐ t%Ä $ Ðfollowing€the€execution€of€this€Agreement€(the€ð ðRefusal€Periodðð)€and€subject€to€theÐ ]&­!% Ðlimitations€set€forth€in€Section€4€hereof,€if€Methodist€desires€to€transfer€all€or€anyÐ F'–"& Ðpart€of€[its€49%€interest€in€Riverside]€to€any€person€other€than€Ô_ÔDHCÔ_Ô,€Methodist€shallÐ /(#' Ðgive€to€Ô_ÔDHCÔ_Ô€written€notice.€.€.€.Ð)h$(Ð Ð  ÐÌà  àà ` à.€.€.€.Ð ê*:&* ÐÐ Ó+#'+ Ðà8  àà ` à4.€€òòConsents€and€Approvalsóó.€€Notwithstanding€any€other€terms€or€provisionsÐ ° Ðof€this€Agreement,€Methodist€shall€not€be€required€to€transfer€[its€49%€interest€inÐ ™é ÐRiverside]€or€give€notice€of€Methodistððs€intent€to€transfer€[such€interest]€unless€andÐ ‚Ò Ðuntil€Methodist€has€received€all€consents€and€approvals€(including€waivers€of€theÐ k» Ðtransfer€restrictions)€required€by€the€Operating€Agreement€for€the€transfer€ofÐ T¤ Ð[Methodistððs€49%€interest€in€Riverside]€to€a€third€party.Ð= Ð Ð  ÐÌà  àOn€May€2,€2003,€the€Physicians€filed€a€complaint€against€Methodist,€containing€four€counts:Ð  _ Ð(1)€a€request€for€a€declaratory€judgment€setting€forth€the€rights,€status,€and€obligations€of€the€partiesÐ ø H Ðunder€the€Operating€Agreement,€in€light€of€the€actions€of€Methodist;€(2)€a€claim€for€breach€ofÐ á 1  Ðcontract€and€request€for€specific€performance€based€upon€Sections€16€and€18€of€the€OperatingÐ Ê   ÐAgreement;€(3)€a€claim€for€breach€of€the€duty€of€good€faith€and€fair€dealing;€and€(4)€a€third„partyÐ ³  Ðbeneficiary€claim€on€behalf€of€Riverside.€€Following€Methodistððs€answer€and€counterclaim,€theÐ œì  ÐPhysicians€filed€a€motion€for€partial€summary€judgment€as€to€the€first€and€second€counts€of€theirÐ …Õ  Ðcomplaint€asserting€that,€under€Section€16€of€the€Operating€Agreement,€Methodist€had€triggered€theÐ n¾  ÐPhysiciansðð€ð ðright€of€first€refusalðð€by€its€ð ðwish€or€desireðð€to€sell€its€interest€in€Riverside.€€MethodistÐ W§  Ðfiled€a€cross€motion€for€summary€judgment€asserting€that€the€Physicians€had€erroneously€interpretedÐ @ Ðthe€triggering€provisions€of€Section€16€of€the€Operating€Agreement€and,€in€addition,€that€theÐ )y ÐPhysiciansðð€claims€should€be€barred€by€principles€of€equity€due€to€their€own€actions€during€theÐ b Ðcourse€of€the€negotiations€between€Methodist€and€CHS.€€The€trial€court€entered€an€order€grantingÐ ûK Ðsummary€judgment€to€the€Physicians,€finding€that,€as€a€matter€of€law,€the€ð ðtriggerðð€under€SectionÐ ä4 Ð16€of€the€Operating€Agreement€was€the€selling€memberððs€ð ðdesire€or€wishðð€to€transfer€its€membershipÐ Í Ðinterest.€€Finding€that€it€was€undisputed€that€Methodist€wished€or€desired€to€transfer€its€interest,€theÐ ¶ Ðtrial€court€concluded€that€Methodist€was€in€violation€of€Section€16€of€the€Operating€Agreement€byÐ Ÿï Ðreason€of€its€failure€to€give€notice€and€its€failure€to€offer€its€membership€interest€to€the€Physicians.€Ð ˆØ ÐIn€denying€Methodistððs€motion€to€alter€or€amend€the€judgment,€the€trial€court€referenced€the€fact€thatÐ qÁ ÐMethodist€also€possessed€the€ð ðclear€intentðð€to€sell€its€membership€interest€in€Riverside.€€However,Ð Zª Ðthe€court€found€that€possessing€the€ð ðwish€to€sellðð€was€a€ð ðpreliminary€stepðð€and€that€Methodist€hadÐ C“ Ðgone€ð ðfar€beyond€that€point€in€time.ðð€€Ð ,| ÐÌà  àFrom€the€trial€courtððs€order€granting€summary€judgment€to€the€Physicians,€Methodist€appealsÐ þN Ðand€presents,€as€we€perceive€them,€the€following€issues€for€our€review:Ð ç 7 ÐÌÔ#†XÀ÷XXXp6Ö7#ÔÔ‡Xp6XXXÀ÷Ôà8  à(1)à0` Ð Ð àWhether€the€trial€court€erred€in€interpreting€the€Operating€Agreement€andÐ ¹" ! Ðthus€erred€in€granting€partial€summary€judgment€to€the€Physicians€on€theirÐ ¢#ò" Ðclaim€that€Methodistððs€conduct€with€regard€to€the€sale€of€its€membershipÐ ‹$Û# Ðinterest€in€Riverside€triggered€the€Physiciansðð€right€of€first€refusal;Ðt%Ä $` Ð ` Ð  ÐÌà8  à(2)à0` Ð Ð àWhether€the€trial€court€erred€in€finding€that€there€was€no€genuine€issue€ofÐ F'–"& Ðmaterial€fact€as€to€whether€Methodist€wished€or€desired€or€alternately,Ð /(#' Ðintended,€to€sell€its€interest€in€Riverside;Ð)h$(` Ð ` Ð  ÐÌà8  à(3)à0` Ð Ð àWhether€the€trial€court€erred€in€finding€(a)€that€the€doctrines€of€uncleanÐ ê*:&* Ðhands,€waiver€and/or€estoppel€did€not€bar€the€Physiciansðð€claim€for€relief,Ð Ó+#'+ Ðincluding€specific€performance€and€injunctive€relief,€or€(b)€that€there€was€noÐ ° Ðgenuine€issue€of€material€fact€as€to€this€issue;€andЙé` Ð ` Ð  ÐÌà8  à(4)à0` Ð Ð àWhether€the€trial€court€erred€by€finding€that€Riverside€Surgery€Center,€LLCÐ k» Ðhad€standing€to€sue€in€this€case.ÐT¤` Ð ` Ð  ÐÌÔ#†XÀ÷XXXp6(S#ÔÔ‡Xp6XXXÀ÷ÔFor€the€reasons€stated€herein,€we€affirm.Ð & v Ðò òÓ  ÓÌòòStandard€of€ReviewóóÐ ù I ÐÓ  Óó óÌà  àÔ#†XÀ÷XXXp6ŸX#ÔÔ‡Xp6XXXÀ÷ÔWe€review€an€order€granting€summary€judgment€òòde€novoóó€with€no€presumption€of€correctnessÐ Ê   Ðafforded€to€the€trial€court.€€òòGuy€v.€Mut.€of€Omaha€Ins.€Co.óó,€79€S.W.3d€528,€534€(Tenn.€2002).Ô#†XÀ÷XXXp6xY#ÔÔ‡Xp6XXXÀ÷ԀР³  ÐSummary€judgment€is€appropriate€only€when€the€moving€party€can€demonstrate€that€there€are€noÐ œì  Ðdisputed€issues€of€material€fact€and€that€it€is€entitled€to€judgment€as€a€matter€of€law.€€Tenn.€R.€Civ.Ð …Õ  ÐP.€56.04€(2004);€òòByrd€v.€Hallóó,€847€S.W.2d€208,€214€(Tenn.€1993).€€òòò òóóó óÔ#†XÀ÷XXXp6Z#ÔÔ‡Xp6XXXÀ÷ÔWhere€a€case€involves€purelyÐ n¾  Ðlegal€issues,€such€as€the€interpretation€of€a€written€agreement,€summary€judgment€is€an€appropriateÐ W§  Ðmethod€of€disposition.€€òòByrdóó,€847€S.W.2d€at€210;€òòÔ_ÔRaineyÔ_Ô€v.€Ô_ÔStansellÔ_Ôóó,€836€S.W.2d€117,€118ð!ð19€(Tenn.Ð @ ÐCt.€App.€1992).€€In€determining€whether€to€award€summary€judgment,€the€trial€court€must€Ô#†XÀ÷XXXp6(\#ÔÔ‡Xp6XXXÀ÷Ôview€theÐ )y Ðevidence€in€the€light€most€favorable€to€the€nonmoving€party€and€draw€all€reasonable€inferences€inÐ b Ðthat€partyððs€favorÔ#†XÀ÷XXXp61^#ÔÔ‡Xp6XXXÀ÷Ô.€€òòStaples€v.€Ô_ÔCBLÔ_Ô€&€Ô_ÔAssocsÔ_Ô.óó,€15€S.W.3d€83,€89€(Tenn.€2000).€€òòóóÔ#†XÀ÷XXXp6_#ÔÔ‡Xp6XXXÀ÷ÔThe€court€shouldÐ ûK Ðaward€summary€judgment€only€when€a€reasonable€person€could€reach€but€one€conclusion€based€onÐ ä4 Ðthe€facts€and€the€inferences€drawn€from€those€facts.€€Ô#†XÀ÷XXXp6æ_#ÔòòÔ‡Xp6XXXÀ÷ÔIdóó.òòÔ#†XÀ÷XXXp6÷`#ÔÔ‡Xp6XXXÀ÷Ôóóò òÐ Í ÐÓ  ÓÌòòInterpretation€of€the€Riverside€Operating€AgreementóóÐ  ð Ðó óÓ  ÓÌà  àThe€Physicians€contend€that€the€trial€court€correctly€interpreted€the€Operating€Agreement€toÐ qÁ Ðrequire€only€that€Methodistððs€ð ðwish€or€desireðð€to€sell€its€interest€in€Riverside€was€sufficient€to€triggerÐ Zª Ðthe€Physiciansðð€rights€under€Section€16.€€Methodist,€however,€argues€that€a€proper€construction€isÐ C“ Ðthat€the€triggering€mechanism€under€Section€16€is€the€written€notice€of€the€specific€intent€to€sell,Ð ,| Ðrather€than€the€subjective€desire€or€wish€to€transfer€a€memberððs€interest.ò ò€€ó óFurther,€MethodistÐ e Ðcharacterizes€the€trial€courtððs€ruling€as€essentially€granting€the€Physicians€a€right€of€first€negotiation,Ð  Q Ðrather€than€a€right€of€first€refusal.€€We€believe€that€neither€partyððs€interpretation€of€the€provision€inÐ ê : Ðquestion€is€completely€accurate.Ð Ó!#  ÐÌà  àAs€this€case€involves€the€construction€of€a€written€agreement,€we€begin€our€analysis€with€aÐ ¥#õ" Ðreview€of€basic€rules€of€contract€interpretation.€€ò òó óWhen€interpreting€a€contract,€the€guiding€principleÐ Ž$Þ# Ðis€to€ð ðascertain€the€intention€of€the€parties€and€to€give€effect€to€that€intention€consistent€with€legalÐ w%Ç $ Ðprinciples.ðð€€òòÔ_ÔRaineyÔ_Ôóó,€836€S.W.2d€at€118€(citing€òòBob€Pearsall€Motors,€Inc.€v.€RegalÐ `&°!% ÐChrysler-Plymouth,€Inc.óó,€521€S.W.2d€578€(Tenn.1975)).€€In€determining€the€intent€of€the€contractingÐ I'™"& Ðparties,€the€court€should€look€to€the€four€corners€of€the€document,€and,€where€there€is€no€ambiguity,Ð 2(‚#' Ðthe€terms€of€the€contract€should€be€given€their€ordinary€meaning.€€òòÔ_ÔWinfreeÔ_Ô€v.€Educators€Creditoróó,Ð )k$( Ð900€S.W.2d€285,€289€(Tenn.€Ct.€App.€1995).€€The€courts€should€also€look€to€the€subject€matter€ofÐ *T%) Ðâ âthe€agreement,€the€circumstances€of€the€transaction€giving€rise€to€the€particular€issue€before€theÐ í*=&* Ðcourt,€and€the€prior€conduct€of€the€parties€in€carrying€out€the€contractððs€terms.€€òòÔ_ÔPenskeÔ_Ô€Truck€LeasingÐ ° ÐCo.,€L.P.€v.€Ô_ÔHuddlestonÔ_Ôóó,€795€S.W.2d€669,€671€(Tenn.€1990).Ð ™é Ðâ âÌà  àIn€general€terms,€a€ð ðright€of€first€refusalðð€is€the€generic€label€commonly€used€to€describe€aÐ k» Ðcontractual€right€to€preempt€another.€€3€Ô_ÔCorbinÔ_Ô€on€Contracts€ðð€11.3,€at€469€(Joseph€M.€Ô_ÔPerilloÔ_Ô€ed.,Ð T¤ Ð1996).€€The€conventional€right€of€first€refusal€ð ðis€subject€to€an€agreed€condition€precedent,€typicallyÐ =  Ðthe€ownerððs€receipt€of€an€offer€from€a€third€party€and€the€ownerððs€good„faith€decision€to€accept€it.ðð€Ð & v ÐòòIdóó.€at€470.€€At€that€point,€the€right€of€first€refusal€ð ðripensðð€into€an€option,€and€the€preemptive€rightÐ  _ Ðholder€may€exercise€his€preemptive€right€to€create€a€contract€based€on€the€same€terms€that€the€ownerÐ ø H Ðis€willing€to€accept€from€the€third€party.€€òòSee€idóó.€at€470ð!ð71.€€However,€the€triggering€of€the€right€ofÐ á 1  Ðfirst€refusal€is€dependent€on€the€language€of€the€contract€and€varies€with€the€facts€of€the€case.€€òòSeeóóÐ Ê   Ðòòe.g.óó,€òòJohnson€v.€Ô_ÔHerrenÔ_Ôóó,€C.A.€No.€88„160„II,1988€WL€119278,€at€*4€(Tenn.€Ct.€App.€Nov.€10,€1988)Ð ³  Ðòòperm.€app.€deniedóó€(Tenn.€June€26,€1989)(ð ðAll€that€is€required€to€trigger€the€right€of€first€refusal€isÐ œì  Ðfor€Ô_ÔHerrenÔ_Ô€to€make€a€sales€offer.€€No€third€party€need€accept€it.ðð);€òò€Ô_ÔSagerÔ_Ô€v.€Rogersóó,€Ô_ÔSevierÔ_Ô€Law€C.A.Ð …Õ  Ð#€115,€1987€WL€6718,€at€*2€(Tenn.€Ct.€App.€Feb.€20,€1987)€òòperm.€app.€deniedóó€(Tenn.€Aug.€3,€1987)Ð n¾  Ð(reasoning€that€right€of€first€refusal€was€triggered€at€the€instant€the€selling€party€was€willing€toÐ W§  Ðaccept€the€third€partyððs€offer);òò€€Estate€of€Johnson€v.€Carróó,€706€S.W.2d€388,€391€(Ark.€1986)€(holdingÐ @ Ðthat€the€preemptive€right€triggered€by€the€ownerððs€ð ðdesire€to€sellðð€had€not€been€invoked€by€letterÐ )y Ðstating€that€owner€was€ð ðseriously€consideringðð€selling);òò€€Ô_ÔVietorÔ_Ô€v.€Sillóó,€243€So.2d€198€(Fla.€Dist.€Ct.Ð b ÐApp.€1971)€(concluding€that€right€of€first€refusal€was€invoked€by€an€intention€to€sell,€not€a€bindingÐ ûK Ðcontract);€òòNew€Haven€Trap€Rock€Co.€v.€Ô_ÔTataÔ_Ôóó,€177€A.2d€798,€800€(Conn.€1962)€(interpretingÐ ä4 Ðagreement€to€provide€that€it€was€necessary€only€for€the€seller€ð ðto€gÔ_ÔiveÔ_Ô€thought€to€or€entertain€the€ideaÐ Í Ðof€sellingðð€to€trigger€the€right€of€first€refusal).Ð ¶ ÐÌà  àThe€preemptive€purchase€right€under€Section€16€is€unlike€a€traditional€garden„variety€rightÐ ˆØ Ðof€first€refusal€because€the€price€terms€and€other€conditions€are€not€determined€by€reference€to€aÐ qÁ Ðthird„party€offer,€as€in€the€case€of€a€typical€right€of€first€refusal.€€The€ð ðright€of€first€refusalðð€in€theÐ Zª Ðpresent€case€is€more€closely€akin€to€what€at€least€one€court€has€termed€a€ð ðright€of€first€offer,ðð€whichÐ C“ Ðentitles€the€holder€the€right€to€receive€the€first€offer€to€purchase,€with€the€sale€price€and€other€termsÐ ,| Ðbeing€provided€for€in€advance€in€the€agreement.€€òòÔ_ÔGleasonÔ_Ôóó€òòv.€Norwest€Mortgage,€Inc.óó,€243€F.3d€130,Ð e Ð139€(3d€Cir.€2001).€€Under€the€Operating€Agreement,€when€the€preemption€rights€of€Section€16€areÐ þN Ðtriggered,€Section€18€of€the€Operating€Agreement€expressly€provides€the€method€for€ascertainingÐ ç 7 Ðthe€sale€price.€€Therefore,€our€decision€as€to€whether€the€actions€taken€by€Methodist€triggered€theÐ Ð!   ÐPhysiciansðð€ð ðright€of€first€offerðð€turns€solely€on€the€language€of€Section€16€of€the€OperatingÐ ¹" ! ÐAgreement.Ð ¢#ò" ÐÌà  àThere€is€substantial€evidence€in€the€record€reflecting€that€Methodist€gave€strongÐ t%Ä $ Ðconsideration€to€the€inclusion€of€Riverside€in€the€Methodist/CHS€transaction,€as€demonstrated€byÐ ]&­!% Ðthe€resolutions€of€Methodistððs€board€of€directors,€the€letter€of€intent,€and€the€draft€asset€purchaseÐ F'–"& Ðagreement.€€However,€we€agree€with€Methodist€that€Section€16€is€not€subjectively€triggered€by€theÐ /(#' Ðselling€memberððs€ð ðwish€or€desireðð€to€sell.€€At€the€same€time,€we€do€not€believe,€as€Methodist€argues,Ð )h$( Ðthat€the€preemptive€purchase€rights€under€Section€16€are€triggered€simply€by€written€notice€of€theÐ *Q%) Ðfinal€decision€to€sell.€€Rather,€notice€under€Section€16€appears€to€merely€be€a€procedural€mechanismÐ ê*:&* Ðby€which€the€Physicians€are€afforded€the€opportunity€to€exercise€their€preemptive€purchase€rights.€Ð Ó+#'+ ÐUnder€Methodistððs€strict€interpretation,€Methodist€could€theoretically€defeat€the€PhysiciansððÐ ° Ðpreemptive€purchase€right€by€simply€not€providing€notice.Ð ™é ÐÌà  àTurning€to€the€operative€language€of€Section€16,€it€provides€that€ð ð[a]€Member€may€not€sell,Ð k» Ðassign,€òòoróó€òòotherwise€transfer€óó(hereafter€collectively€transfer)€all€or€part€of€its€interest€.€.€.€except€asÐ T¤ Ðspecified€below.ðð€€Subsection€(a)€of€Section€16€goes€on€to€provide,€ð ð[Ô_Ôt]heÔ_Ô€Member(s)€wishing€toÐ =  Ðtransfer€its€interest€must€give€written€notice€to€all€Members€of€the€òòintent€to€transferóó€the€interest,€andÐ & v Ðmust€offer€the€Physician€Members€the€first€opportunity€to€purchase€such€interest.ðð€€Looking€atÐ  _ Ðsubsection€(a)€of€Section€16,€the€substance€of€the€notice€is€a€statement€by€the€selling€member€of€hisÐ ø H Ðor€her€intent€to€transfer.€€By€necessity,€the€substantive€intent€to€transfer€must€be€formed€before€theÐ á 1  Ðnotice€is€given.€€Therefore,€we€believe€that€the€preemptive€rights€under€Section€16€are€triggered€onceÐ Ê   Ðthe€selling€member€possesses€the€intent€to€otherwise€transfer€his€or€her€interest.€€At€that€point,€theÐ ³  Ðselling€member€is€obligated€to€first€offer€the€interest€to€the€Physicians€at€the€price€structure€providedÐ œì  Ðfor€under€Section€18.€€The€parties€were€free€to€word€the€Operating€Agreement€as€they€saw€fit,€andÐ …Õ  Ðit€is€our€duty,€as€it€was€the€Chancellorððs,€to€interpret€the€agreement.Ð n¾  ÐÌà  àIn€a€different€case,€proving€the€selling€memberððs€intent€could€present€a€significant€obstacleÐ @ Ðto€the€party€enforcing€a€similar€provision.€€Under€the€undisputed€facts€of€this€case,€however,€weÐ )y Ðbelieve€it€is€not€so€difficult.€€Without€looking€at€the€various€board€resolutions,€the€letter€of€intent,Ð b Ðthe€draft€asset€purchase€agreement€and€other€paper€work€supportive€of€the€Physiciansðð€position,€weÐ ûK Ðfind€that€Methodistððs€execution€of€the€Ô_ÔDHCÔ_Ô€Option/First€Refusal€Agreement€was€unequivocalÐ ä4 Ðevidence€of€its€intent€to€otherwise€transfer€its€interest€in€Riverside.€€Although€Section€4€of€the€Ô_ÔDHCÔ_ÔÐ Í ÐOption/First€Refusal€Agreement€states€that€the€agreement€is€subject€to€the€consent€and€approval€ofÐ ¶ Ðthe€Physicians,€the€agreement€nonetheless€clearly€demonstrates€Methodistððs€intent€to€transfer€itsÐ Ÿï Ðinterest€in€Riverside.€€Therefore,€we€conclude€that,€by€executing€the€Ô_ÔDHCÔ_Ô€Option/First€RefusalÐ ˆØ ÐAgreement,€Methodist€triggered€the€Physiciansðð€preemptive€rights€under€Section€16€of€the€OperatingÐ qÁ ÐAgreement.€€Accordingly,€we€further€conclude€that€the€Physicians€are€entitled€to€summary€judgmentÐ Zª Ðon€this€issue.Ð C“ ÐÌÓ  Óò òòòUnclean€HandsóóÐ e Ðó óÓ  ÓÌà  àAs€a€preliminary€matter,€although€in€its€brief€Methodist€couches€its€argument€in€terms€ofÐ æ 6 Ðunclean€hands,€òòwaiver€and€estoppelóó,€we€find€nothing€in€Methodistððs€brief€pointing€to€any€law€orÐ Ï!  Ðfacts€that€meaningfully€support€any€waiver€or€estoppel€argument.€€Rather,€it€appears€that€MethodistððsÐ ¸"! Ðonly€discernible€argument€on€this€point€pertains€to€the€doctrine€of€unclean€hands.€€Methodist€arguesÐ ¡#ñ" Ðthat€the€Physicians€should€be€barred€from€equitable€relief€based€on€the€Physiciansðð€own€conductÐ Š$Ú# Ðduring€the€course€of€this€dispute.€€Methodist€points€to€the€Physiciansðð€commission€of€Bloom€toÐ s%à $ Ðprepare€a€valuation€report€on€Riverside;€the€fact€the€Physicians€did€not€raise€the€issue€of€the€rightÐ \&¬!% Ðof€first€refusal€until€almost€a€month€after€they€learned€of€the€negotiations€between€Methodist€andÐ E'•"& ÐCHS;€and€the€fact€that€the€Physicians€met€with€Methodist€and€CHS€representatives€during€this€timeÐ .(~#' Ðand€discussed€the€sale€or€resolution€of€the€competing€interests.Ð )g$( ÐÌà  àThe€doctrine€of€unclean€hands€has€been€explained€as€follows:€ð ð[A]€complainant,€who€hasÐ é*9&* Ðbeen€guilty€of€unconscientious€conduct€or€bad€faith,€or€has€committed€any€wrong,€in€reference€toÐ Ò+"'+ Ða€particular€transaction,€cannot€have€the€aid€of€a€Court€of€Equity€in€enforcing€any€alleged€rightsÐ ° Ðgrowing€out€of€such€transaction.ðð€€òòÔ_ÔHogueÔ_Ô€v.€Kroger€Co.óó,€373€S.W.2d€714,€716€(Tenn.€1962)€(quotingÐ ™é ÐGibsonððs€Suits€in€Chancery€ðð€51).€€ð ðOnce€found€to€exist,€the€doctrine€of€unclean€hands€repels€theÐ ‚Ò Ðunclean€plaintiff€at€the€steps€of€the€Courthouse.ðð€€òòFarmers€&€Merchants€Bank€v.€Ô_ÔTempletonÔ_Ôóó,€646Ð k» ÐS.W.2d€920,€924€(Tenn.€Ct.€App.€1983).€€Our€review€of€the€record€indicates€that€the€actions€takenÐ T¤ Ðby€the€Physicians€during€the€Methodist/CHS€negotiations€amounted€to€nothing€more€than€the€lawfulÐ =  Ðexercise€of€their€rights€and€authority€under€the€Agreement.€€There€is€nothing€to€indicate€anyÐ & v Ðwrongdoing,€bad€faith,€or€other€behavior€that€would€warrant€the€application€of€the€unclean€handsÐ  _ Ðrule.€€Accordingly,€we€find€this€issue€to€be€without€merit.Ð ø H ÐÌÓ  Óò òòòRiversideððs€Third€Party€Beneficiary€StatusóóÐ Ê   Ðó óÓ  ÓÌà  àThe€Physicians€filed€this€complaint€in€their€individual€capacity€and€in€the€name€of€RiversideÐ ›ë  ÐSurgery€Center,€LLC,€thus€making€Riverside€a€party€to€this€action.€€Methodist€contends€that€Ð „Ô  ÐRiverside€has€no€standing€to€sue€in€this€case€because€Riverside€is€only€included€as€a€third€partyÐ m½  Ðbeneficiary€to€the€Operating€Agreement,€and€the€complaint€fails€to€state€a€claim€for€relief€on€behalfÐ V¦  Ðof€Riverside€under€this€theory.€€Methodist€also€contends€that€Riverside€is€not€a€party€to€the€OperatingÐ ? ÐAgreement€and€that€the€Operating€Agreement€was€intended€only€to€benefit€the€members,€notÐ (x ÐRiverside€itself.€€The€Physicians€argue€that€this€issue€is€not€ripe€for€appeal,€and€this€Court€lacksÐ a Ðjurisdiction€because€the€trial€courtððs€decision€on€this€issue€was€not€made€a€part€of€the€final€order.€Ð úJ ÐAlternatively,€the€Physicians€contend€that€Riverside€is€a€party€to€the€Operating€Agreement€withinÐ ã3 Ðthe€meaning€of€sections€29„14„103,׃P×Ý ƒ #ÃÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×€48„206„101Ô_Ô(c)Ô_Ô,׃S ×Ý ƒ #ÃÝòòÚ  Ú2Ú  ÚóóÝ  Ý×  ×€and€48„212„101(2)׃×Ý ƒ #ÃÝòòÚ  Ú3Ú  ÚóóÝ  Ý×  ×€of€the€Tennessee€Code.Ð Ì Їà  àUnder€Rule€13(b)€of€the€Tennessee€Rules€of€Appellate€Procedure,€the€appellate€courts€of€thisÐ ° Ðstate€may,€in€their€discretion,€consider€certain€issues€in€order€ð ðto€prevent€needless€litigation.ðð€€Tenn.Ð ™é ÐR.€App.€P.€13(b)€(2004).€€Although€the€trial€courtððs€decision€on€this€issue€was€not€made€a€final€order,Ð ‚Ò Ðwe€will€address€it€nonetheless.€€While€the€parties€have€focused€heavily€in€their€arguments€on€whetherÐ k» ÐRiverside€is€an€intended€third„party€beneficiary€of€the€Operating€Agreement,€we€believe€the€partiesððÐ T¤ Ðconcentration€is€misdirected.€€Under€Tennesseeððs€Limited€Liability€Company€Act,€the€LLC€itself€isÐ =  Ðgranted€certain€general€powers€ð ðto€do€all€things€necessary€or€convenient€to€carry€out€its€business€andÐ & v Ðaffairs.ðð€€Tenn.€Code€Ann.€ðð€48„212„101€(2002).€€The€first€power€granted€to€the€LLC€under€sectionÐ  _ Ð48„212„101€is€the€power€to€ð ð[Ô_Ôs]ueÔ_Ô€and€be€sued,€complain€and€defend€in€its€LLC€name.ðð€€òòIdóó.€ðð€48„Ð ø H Ð212„101(1).€€As€the€LLC€and€its€member€are€bound€by€the€LLC€operating€agreement€under€sectionÐ á 1  Ð48„206„101Ô_Ô(c)Ô_Ô,€òòóówe€believe€any€breach€of€the€operating€agreement€would€constitute€the€LLCððsÐ Ê   Ðð ðbusiness€and€affairs.ðð€€òòSeeóó€òòidóó.€ðð€48„212„101.€€Thus,€the€LLC€has€the€authority€to€sue€in€its€name€toÐ ³  Ðenforce€its€operating€agreement.€€Accordingly,€we€conclude€that€the€trial€court€did€not€err€in€denyingÐ œì  ÐMethodistððs€motion€to€dismiss€Riverside€for€lack€of€standing.Ð …Õ  ÐÌò òÓ  ÓòòConclusionóóÐ W§  ÐÓ  Óó óÌà  àFor€the€foregoing€reasons,€we€affirm€the€judgment€of€the€trial€court.€€Costs€of€this€appeal€areÐ (x Ðtaxed€to€the€appellant€Methodist€Health€Systems,€Inc.€and€its€surety,€for€which€execution€may€issueÐ a Ðif€necessary.Ð úJ ÐÌÔ#†XÀ÷XXXp6Ba#ÔÌÌà  àà ` àà ¸ àà  àà h àà À àà  à___________________________________€Ð žî Ðà  àà ` àà ¸ àà  àà h àà À àà  àDAVID€R.€FARMER,€JUDGE