ÿWPC 3# ÚUNå %3 0c9U<œw@Ø4,; AQC 0@” 0DÔ 0J 0Tb 0^¶ 0h 0r| 0|î 0†j 0ð 1u€ 0dõ BY Æv 0D< 0§€ 0D' D/k Bš D3· U>ê B)( DCQ AM” U*á ^ `iv~ÉvÓG˜HP LaserJet 4SiHPPCL5MS,ü,,,,,ü0nLhÎ(ÈhH  Z 6Times New Roman RegularX(;cW$¡¡Ò°ÒÒ„°ÒÔ€XaBXXXÔ-šBu Z‹$Arrus BT Roman DEEFEGHDIUJUKîLÓ€Xn~<$@3|xX ! %Cþÿ<< Cÿÿ("ÿÿ$££Ò  ÒÒ  Ò($$””ò òÚ  Ú1Ú  Úó ó2 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 dƒLevel 1Level 2Level 3Level 4Level 5(3¯$¢¢Ý ƒ!ÝÝ  Ý(W(3Òî$¤¤Ý ƒcW!ÝÒ°ÒÒ„°ÒÔ€Xô>XXXÔÝ  Ýà ` àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  Úóó'''÷ÿ dxdüÿP Pd'ÿÿdxd< Œ 9p`(&Times New Roman% Line 7 d++++7Border 1dd ,Cþÿ << Gÿÿ< Œ 9p`(Arial TÝ ƒ!ÝÑ  ÑÑ#€d#ÑÔ€*ÔÒ  ÒÒ „ ÒÔ€ÔÝ  ÝÝ ƒ!"ÝÝ  ÝÔ€.ÔÔ€.ÔÓ  ÓÔ YYY ÔFILEDÔ€.XÔÌÌò òJulyÏ10,Ï1998ÌÌCecilÏCrowson,ÏJr.ÌÔ€.ôÔAppellateÏCourtÏClerkó ó VÝ ƒ!ÝÑ  ÑÑ#€d#ÑÔ€*ÔÒ  ÒÒ „ ÒÔ€ÔÝ  ÝÝ ƒ"$Ýà àòòÚ  ÚÚ  ÚóóÝ  Ý€The€individual€defendants€were€principals€in€the€corporations,€and€bothÏà àcorporations€were€out€of€business€at€the€time€of€trial.€€ÌPtPtHHÚ(ÿáÿâùFG(üHHÚ(d'hStyl{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  h HD: Geneva ÒÒ  h HD: Geneva ÒÝ ƒ!ÝÔ . ÔÔ€*ÔÒ  ÒÒ „ ÒÔ€ÔÝ  ÝÑ\R AØ'\ÑÑ7€\ëXXdðdÈ7ÑÑ  ÑÓ  ÓÞ ÞÌà@ àIN€THE€COURT€OF€APPEALS€OF€TENNESSEEÌà@ àAT€JACKSONÌà àà à€€€€______________________________________________ÌÌò òSOUTHERN€TIN€COMPRESS€CORP.,ÌA€Tennessee€Corporation,ó óÌÌò òà àó óPlaintiff„Appellee,Ìà àà àà àà àà àà àà àShelby€Chancery€No.€101141„3ÌVs.à àà àà àà àà àà àà àC.A.€No.€02A01„9709„CH„00234ÌÙ€ ÙßR€-/,A1-j|¶ü°` à. `€€@ÿRßÌò òMARK€HILLER€An€IndividualÌResident€of€Tennessee;ÌR.€L.€GOODNER€An€IndividualÌResident€of€Tennessee;ÌQUALITY€MARINE€SERIVCE,€INC.ÌA€Tennessee€Corporation;ÌHORIZON€PRODUCTS€UNLIMITEDÌCO.,€INC.,€A€Tennessee€Corporation,Ìó óÌà àDefendants„Appellants.Ì____________________________________________________________________________ÌÌà@ àFROM€THE€SHELBY€COUNTY€CHANCERY€COURTÌà@ àTHE€HONORABLE€D.€J.€ALISSANDRATOS,€CHANCELLORÌÌÌÌà@ àJohn€R.€Branson,€Anthony€SammonsÌà@ àBranson€&€Bearman€of€MemphisÌà@ àFor€Plaintiff„AppelleeÌÌà@ àCharles€A.€SevierÌà@ àSevier€&€Phillips€of€MemphisÌà@ àFor€Defendants„AppellantsÌÌÌÌà@ àò òòòAFFIRMED€AND€REMANDEDó óóóÌÌà@ àOpinion€filed:€€ÌÌÌÌÌÌÌà àà àà àà àà àà àà àà àò òW.€FRANK€CRAWFORD,Ìà àà àà àà àà àà àà àà àPRESIDING€JUDGE,€W.S.ÌÌÌCONCUR:ÌÌALAN€E.€HIGHERS,€JUDGEÌÌHOLLY€KIRBY€LILLARD,€JUDGEó óÌÓÓ›Ñ7€\ëXdðXXdð7ÑÑ  Ñà à€€This€appeal€involves€a€suit€for€fraud.€€Defendants,€Mark€Hiller,€R.€L.ÏGoodner,€Quality€Marine€Service,€Inc.,€and€Horizon€Products€Unlimited,€Co.ÏInc.,× ƒ0 ××  ×€appeal€the€trial€courtððs€judgment€awarding€plaintiff,€Southern€TinÏCompress€Corp.,€compensatory€and€punitive€damages.€€Southern€Tin€contendsÏthat€it€was€defrauded€by€the€defendants€out€of€more€than€$500,000.00€over€aÏ28„month€period.€€Southern€Tin€is€a€commercial€dealer€in€scrap€metal,€andÏappellant€Mark€Hiller€was€a€Southern€Tin€employee€until€1992,€when€his€role€inÏthe€fraud€with€appellant€R.L.€Goodner€was€discovered.€Ìà àHiller€was€one€of€two€ð ðscale€menðð€who€worked€for€Southern€Tin.€€In€thatÏcapacity,€Hiller€was€responsible€for€weighing€and€grading€the€scrap€metalÍbrought€to€Southern€Tin€by€its€customers.€€Under€the€common€practice,€theÏscale€men€would€write€a€ð ðscale€ticketðð€for€each€transaction,€which€would€includeÏthe€type€and€weight€of€the€metal,€the€customerððs€name€and€address,€as€well€asÏthe€license€number€of€the€truck€delivering€the€metal.€€Trucks€bringing€scrapÏmetal€to€Southern€Tin€were€weighed€twice,€once€upon€entry€while€fully€loadedÏand€again€after€the€trucks€had€unloaded€the€scrap€metal.€€The€differenceÏrepresented€the€weight€of€the€scrap€metal,€which€was€recorded€on€the€scaleÏticket€by€one€of€the€scale€men.€€Ìà àTypically,€the€customer€would€immediately€take€the€scale€ticket€toÏSouthern€Tinððs€business€office€where€Mary€Hallock,€the€cashier,€would€input€theÏinformation€from€the€scale€ticket€into€a€computer€and€print€a€check€for€theÏamount€of€the€purchase.€€The€position€of€scale€man€is€a€trusted€one€because€theÏscale€man€is€often€the€only€Southern€Tin€employee€who€examines€the€scrapÏmetal€prior€to€purchase.€€Ìà àOn€February€28,€1992,€an€anonymous€caller,€later€identified€as€LarryÏWade,€called€Southern€Tin€and€alerted€the€company€to€the€appellantsððÏfraudulent€scheme.€€Upon€investigation,€Southern€Tin€discovered€that€itÏappeared€that€Mark€Hiller€and€Robert€L.€Goodner€had€been€defraudingÏSouthern€Tin€for€over€two€years.€€Ìà àBarry€Panitz,€Southern€Tinððs€general€manager,€retrieved€all€the€scaleÏtickets€and€checks€written€to€Goodner.€€ò ò€ó óOver€the€course€of€28€months,ÏGoodner,€through€his€agents,€had€made€what€was€later€determined€to€beÏfraudulent€scrap€metal€sales€to€Southern€Tin€on€128€separate€occasions.€€A€scaleÏticket€is€required€for€every€legitimate€purchase€of€scrap€metal€and,€as€previouslyÏnoted,€there€are€two€scale€men€at€Southern€Tin.€€However,€in€each€of€the€128Ïfraudulent€transactions,€Hiller€had€written€the€scale€ticket.€€As€Barry€PanitzÏtestified:ÌÓÓà8 àà8 àQ:€All€right.€What€can€you€tell€us€about€theÏhandwriting€on€the€tickets?Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€à8 àà8 àÌà8 àà8 àA:€In€each€instance,€every€ticket€made€out€to€R.L.ÏGoodner€were€made€out€by€Mark€Hiller.Ìà àà àÌà àà à......Ìà8 àà8 àQ:€Are€there€any€tickets€in€there€where€money€wasÏpaid€to€R.L.€Goodner€where€Mr.€Hiller€was€not€theÏscale€man?ÌÌà8 àà8 àA:€No.€Ìà àà àÌÓÓIn€some€instances,€checks€had€been€issued€to€Goodner€without€a€correspondingÏscale€ticket,€and€in€every€such€instance€Southern€Tinððs€cashier,€Mary€Hallock,Ïhad€been€absent€from€work,€and€Mark€Hiller€had€assumed€her€responsibilitiesÏfor€the€day.€€Panitz€testified:ÌÓÓà8 àà8 àQ:€Did€you€find€any€occasions€where€there€was€noÍscale€ticket€for€a€check?ÌÌà8 àà8 àA:€Yes,€several.ÌÌà8 àà8 àQ:€Did€you€conduct€an€investigation€as€to€how€thatÏmight€have€happened?ÌÌà8 àà8 àA:€I€did.ÌÌà8 àà8 àQ:€What€did€you€find€out?ÌÌà8 àà8 àA:€I€noticed€that€on€the€days€that€thereððs€no€ticket€ofÏoriginal€entry€and€no,€thereððs€therefore€no€scaleÏtickets,€there€were€checks€written€when€Ms.€HallockÏwas€absent€and€Mark€Hiller€assumed€the€duties€of€Ms.ÏHallock.€€ÌÌà8 àà8 àQ:€Did€you€make€any€investigations€to€determine€ifÏthat€was€correct?ÌÌà8 àà8 àA:€That€was€correct.€€We€matched€them€with€the€daysÏMs.€Hallock€was€absent.ÌÌà8 àà8 àQ:€Did€you€check€Ms.€Hallockððs€attendance€records€toÏfind€out?ÌÌà8 àà8 àA:€Yes,€sir.€€ÌÌÓÓà àIt€is€undisputed€that€five€or€six€transactions€with€Goodner€wereÏlegitimate.€€In€fact€the€first€transaction€between€Southern€Tin€and€Goodner,Ïdated€October€27,€1989,€indicates€a€total€purchase€of€$884.47,€including€73Ïpounds€of€aluminum,€947€pounds€of€copper€and€57€pounds€of€brass.€€During€theÏensuing€28€months,€127€other€transactions€occurred€between€Southern€Tin€andÍGoodner.€€During€this€time,€Goodner€supposedly€sold€Southern€Tin€more€thanÏ10€million€pounds€of€scrap€metal€for€which€Southern€Tin€paid€Goodner€overÏ$500,000.00.€€Southern€Tinððs€records€revealed€that€on€some€days,€Goodner,Ïthrough€his€agents,€allegedly€delivered€140,000€to€150,000€pounds€of€scrapÏmetal.€€By€way€of€reference,€a€fully€loaded€tractor€trailer€carries€about€40,000Ïpounds€fully€loaded;€therefore,€Goodner€would€have€had€to€deliver€four€tractorÏtrailer€loads€of€scrap€metal€to€Southern€Tin€in€one€day€in€order€to€deliverÏ140,000€to€150,000€pounds€of€scrap.€€Panitz€testified€that€only€a€largeÏmanufacturing€company€or€another€scrap€company€as€large€as€Southern€TinÏcould€have€generated€such€volumes€of€scrap€and€that€no€customer€had€everÏdelivered€that€much€metal€to€the€company€in€one€day.€€Panitz€testified:ò òÌÓÓó óà8 àà8 àQ:€Does€it€show€on€here€[Exhibit€10]€the€total€dollarsÏof€checks€written€to€R.L.€Goodner?ÌÌà8 àà8 àA:€Yes.ÌÌà8 àà8 àQ:€How€much€is€that?ÌÌà8 àà8 àA:€Five€hundred€thousand,€one€hundred€twenty„sixÏdollars€and€fifteen€cents.Ìà àà à......Ìà8 àà8 àQ:€How€many€pounds€total€does€it€show€Southern€TinÏsupposedly€bought€from€R.L.€Goodner?ÌÌà8 àà8 àA:€Total€about€ten€million€pounds,€over€ten€millionÏpounds.Ìà àà à.......Ìà8 àà8 àA:€Okay.€€Nobody€has€access€to€this€amount,€thisÏweight€of€steel,€cast€iron,€stainless€steel,€on€such€aÏregular€basis.€€Only€the€very€largest€industries€in€theÏCity€of€Memphis,€or€in€the€State€of€Tennessee€for€thatÏmatter,€other€scrap€yards€besides€myself€or€a€brotherÏor€sister€scrap€yard€related€to€our€company€could€haveÏthese€amounts.€€Thereððs€no€other€person€could€bringÏthis€amount€of€weight€in.€€ÌÌà8 àà8 àQ:€Do€you€know€any€occasion€where€any€individuals,Ïother€than€another€scrap€yard€or€factory€like€youððreÏtalking€about,€would€have€done€this€volume€of€scrapÏvolume€in€twenty„eight€months?ÌÌà8 àà8 àA:€No.ÌÌà8 àà8 àQ:€Youððve€got€about€ten€and€a€half€million€poundsÏdown€here€for€material€that€was€allegedly€sold€toÏSouthern€Tin€by€Mr.€Goodner.€€Is€that€a€lot?Ì€€€€€€à8 àà8 àò òÌó óà8 àà8 àA:€Tremendous.Ìà àà àÌÌÓÓò òà àó óThe€Memphis€Police€Department€requires€Southern€Tin€to€note€theÏlicense€tag€number€of€all€trucks€coming€onto€its€site€to€deliver€scrap€metal.€€OfÏall€the€license€numbers€listed€by€Hiller€on€all€128€of€the€scale€tickets,€only€oneÏvehicle€was€registered€to€Robert€Goodner.€€In€fact,€when€asked€about€theseÏvarious€license€numbers,€Goodner€testified:ÌÓÓà8 àà8 àQ:€An€FDX€167€according€to€Sergeant€Townsend€is€aÏ1987€Ford€pickup€registered€to€Mrs.€Goodner;€is€thatÏright?ÌÌà8 àà8 àA:€That€was€a€Ford€Bronco€four„wheel€drive,€yes,€sir.ÌÌà8 àà8 àQ:€What€about€0967€PY?ÌÌà8 àà8 àA:€I€am€not€sure.ÌÌà8 àà8 àQ:€WZ€1642?ÌÌà8 àà8 àA:€I€have€no€idea.ÌÌà8 àà8 àQ:€PY€0967?ÌÌà8 àà8 àA:€I€do€not€know.ÌÌà8 àà8 àQ:€0967€PT?ÌÌà8 àà8 àA:€I€donððt€know.ÌÌà8 àà8 àQ:€PD€967€PY?ÌÌà8 àà8 àA:€I€donððt€know.ÌÌà8 àà8 àQ:€JKL€883?ÌÌà8 àà8 àA:€I€have€no€idea€what€any€of€those€numbers€are€orÏwhere€they€belong.€ÌÌà8 àà8 àQ:€WZ€1265?ÌÌà8 àà8 àA:€I€just€testified€that€I€did€not€only€know€my€own€tagÏnumber,€but€I€donððt€know€any€of€those€numbers.Ìà àà àÌÓÓà àSgt.€Marvin€Townsend€is€a€twenty„three€year€veteran€on€the€MemphisÏPolice€Department€who€also€performs€security€work€for€Southern€Tin.€€DuringÏthe€fraud€investigation,€Townsend€ran€searches€on€the€license€tag€numbers€thatÏHiller€recorded€on€the€scale€tickets.€€Townsend€testified€as€to€his€findings€asÍfollows:ÌÓÓà8 àà8 àQ:€And€what€did€your€investigation€reveal€about€thoseÏtag€numbers?ÌÌà8 àà8 àA:€Out€of€all€of€the€numbers€that€were€on€there,€oneÏof€them€came€€back€to€Mr.€Goodner,€R.L.€Goodner,€IÏbelieve€it€was€registered€to....Ìà àà à......Ìà8 àà8 àQ:€Take€the€first€number€down€here€in€the€lower€left„hand€corner.€€0967€PY.ÌÌà8 àà8 àA:€Yeah.€€I€run€that€number,€which€appearedÏnumerous€times€on€the€scale€ticket.€€And€that€cameÏback,€never€existed€in€Tennessee,€Arkansas€orÏMississippi.€€Same€as€for€PY€0967,€0869,€PY€„„ÌÌà8 àà8 àQ:€Hold€on€a€second.€€Iððll€get€to€that.€€That€firstÏnumber€0967€PY,€looking€up€and€down€through€here,Ïis€that€not€the€„„€does€that€number€appearÏoverwhelmingly€more€often€than€the€other?ÌÌà8 àà8 àA:€Yes,€it€does.Ìà àà à......Ìà8 àà8 àQ:€All€right.€€Letððs€go€to€the€next€number€you€wantedÏto€say€a€minute€ago....ÌÌà8 àà8 àA:€WZ€1642€it€never€existed€either€in€Arkansas,ÏTennessee,€or€Mississippi.ÌÌà8 àà8 àQ:€Okay.€€The€next€number€is€0869€PY?ÌÌà8 àà8 àA:€It€was€registered€to€a€leasing€company€inÏChattanooga,€Tennessee.Ìà àà à......à àÌà8 àà8 àQ:€Did€they€[leasing€company]€have€any€business€inÏthe€Memphis€area?ÌÌà8 àà8 àA:€No,€they€didnððt.€€ÌÌà8 àà8 àQ:€And€did€your€investigation€discover€anything€youÏknew€about€Leso€[the€leasing€company],€the€way€theyÏdo€business?ÌÌà8 àà8 àA:€I€discovered€from€checking€that€this€company€wasÏin€Chattanooga,€Tennessee€and€that€it€only€leasedÏthese€vehicles€to€businesses€in€the€Chattanooga€areaÏand€not€individuals,€for€the€purpose€of€insuranceÏpurposes.ÌÌà8 àà8 àQ:€...€The€next€one€of€MT€8167.ÌÌà8 àà8 àA:€It€was€on€the€1987€Ford.ÌÌà8 àà8 àQ:€Do€you€know€who€that€was?ÌÌà8 àà8 àA:€Itððs€Charlotte€Goodner.ÌÌà8 àà8 àQ:€What€about€the€next,€looks€like€a€variation€maybeÏ0967€PY?ÌÌà8 àà8 àA:€It€never€existed€either.€€And€the€next€one€is€PYZÏ0967.€€It€never€existed.€€And€the€next€one,€0967€PV,Ïnever€existed.€€They€used€another€number€on€the€scaleÏticket,€was€GLR€270€was€on€a€Plymouth€Fairmont€toÏa€Daniel€Free.€And€then€another€variation€of€thatÏnumber,€that€number€was€used€numerous€times€onÏthe€scale€tickets€which€was€0967€PTY,€the€numberÏthat€was€used€often€and€€very€often.€€It€was€altered,€inÏmy€opinion,€again,€to€P€9673€Y.€€It€never€existed.€€WeÏwent€to€another€number€on€the€scale€tickets,€that€isÏYPL€883.€€It€was€registered€to€Yvette€Mobley.ÌÌà8 àà8 àQ:€What€about€the€next€one?ÌÌà8 àà8 àA:€The€next€one€WZ€1265.€€It€never€existed.€€And€theÍfinal€one€was€QFR€027.€€It€was€to€a€Robert€GoodnerÏon€a€ðð78€Chevy€pickup.€€And€the€tag€expired€on€it€onÏ6/30/90€and€it€was€never€renewed.€€ÌÌà8 àà8 àQ:€These€scale€tickets€also€that€Mr.€Panitz€previouslyÏpresented€to€you,€they€also€had€some€addresses€onÏthem?ÌÌà8 àà8 àA:€Yes.ÌÌà8 àà8 àQ:€Did€you€investigate€those€addresses?ÌÌà8 àà8 àA:€Yes.€€I€looked€at€the€tickets.€€Each€ticket,€theseÏindividuals€who€come€in,€they€have€to€give€their€name,Ïaddress,€license€plate€number,€thatððs€how€the€licenseÏplate€number€got€on€the€ticket.€€And€Mr.€GoodnerððsÏaddress€appeared€on€the€tickets€earlier.€€And€the€restÏof€them€was€just,€I€didnððt€check€into€them€because€allÏof€them€was€to€the€same€guy,€R.L.€Goodner.ÌÌà8 àà8 àQ:€So€you€just,€did€you€discover€that€a€couple€of€thoseÏ„„€what€did€you€discover€about€a€couple€of€those,€wereÏthose€true€or€„„ÌÌà8 àà8 àA:€Those€were€bogus€addresses.ÌÌà8 àà8 àQ:€They€were€bogus€addresses?ÌÌà8 àà8 àA:€Right.Ìà àÌÌÓÓà àAt€trial,€Robert€Goodner€testified€that€either€he€or€his€agents€wouldÏlocate€and€haul€scrap€to€Southern€Tin.€€In€fact,€he€testified€that€on€one€occasionÏhe€delivered€14,000€pounds€of€scrap€metal€to€the€scrap€yard€in€a€CamaroÏautomobile.€€He€stated€on€cross„examination:ÌÓÓà8 àà8 àQ:€How€much€scrap€did€you€get€in€a€Camaro?ÌÌà8 àà8 àA:€I€didnððt€put€much.€€I€think€one€time€I€might€haveÏput€a€motor€in€the€Camaro€is€what€you€can€drag€withÏthe€Camaro€or€the€trailer€that€you€can€drag€with€theÏCamaro.ÌÌà8 àà8 àQ:€How€much€were€you€dragging€with€that€Camaro?ÌÌà8 àà8 àA:€I€drove€fourteen€thousand€pounds€with€it€one€time.ÌÌà8 àà8 àQ:€You€towed€fourteen€thousand€pounds?ÌÌà8 àà8 àA:€Absolutely,€because€my€front€wheels€were€comingÏoff€the€street€when€I€pulled€on€the€lot€when€MarkÏCurland€helped€me€unload€it.€€€à8 à€Ìà àà àÌÓÓà àGoodner€testified€that€one€of€his€agents€was€a€man€named€RaymondÏShorter.€€At€trial,€Goodner€claimed€to€have€used€Shorter€for€only€two€or€threeÏmonths.€€However,€Goodner€was€confronted€with€the€following€excerpt€from€hisÏprior€deposition€testimony.€€ÌÓÓà8 àà8 àQ:€...€Early€on€in€that€deposition€I€asked€you€I€said,Ïwho€drove€the€deliveries€for€you€at€Southern€Tin?€ÏPage€9,€you€said€Larry€Wade,€Raymond€Shorter€andÏhe€had€three€or€four€drivers.€€òòò òI€primarily€went€throughÏRaymondòòó óóó.óó€€He€felt€he€wasnððt€getting€his€share€of€theÏprocess€for€quantities€and€felt€like€if€he€went€throughÏus€with€what€he€had€as€far€as€quantities€he€would€getÏbetter€prices,€and€he€did.€€And€I€am€not€real€familiarÏwith€some€of€the€guys€he€uses€as€far€as€drivers.€€ÌÌà8 àà8 àà àDo€you€remember€that?ÌÌà8 àà8 àA:€Yes,€sirÌÌà8 àà8 àQ:€Okay,€I€asked€you€if€you€dealt€with€any€ofÏRaymondððs€people.€€All€right.€€Do€you€remember€that?ÌÌà8 àà8 àA:€Yes,€sir.€€ÌÌà8 àà8 àQ:€I€was€asking€you€about€how€you€paid€this€RaymondÏShorter€on€Page€31,€Counsel,€Line€8.€€Did€you€pay€himÏwith€checks€or€cash?€€I€paid€him€with€cash.€€Did€youÏpay€„„€answer:€He€paid€his€drivers.€€I€only€dealt€withÏRaymond.€€I€thought€I€will€keep€asking€about€that,€soÏI€did.€€Do€you€remember?ÌÌà8 àà8 àA:€Yes,€sir.€€€€(Emphasis€added).Ìà àà àÌà àà à......Ìà8 àà8 àQ:€...€Question:€But€nobody€worked€directly€for€youÏother€than€Wade€and€Shorter?€€Answer:€No,€sir.€€WeÏdidnððt€establish€a€company€and,€you€know.€€Question:ÏI€just€want€to€know.€€I€donððt€want€to€hear€aboutÏsomebody€at€trial€that€I€gave€old€Joe€fifty€bucks€andÏhe€made€a€delivery.€€I€want€to€hear€about€them€all.€ÏAnswer:€No,€that€is€all.€€That€is€all€I€am€familiar€with.€ÏWho€they€used€I€donððt€know,€you€know,€as€it€relatesÏto€different€trucks,€people€or€whatever.€€Do€youÏremember€that?Ìà àà à......Ìà8 àà8 àA:€Yes,€sir,€I€do€recall€that.€Ìà àà àÌà àà à......Ìà8 àà8 àQ:€How€much€money€did€you€pay€Raymond€Shorter?ÌÌà8 àà8 àA:€I€could€only€guess€to€how€much€money€I€paidÏRaymond€Shorter.€€Probably€in€the€fifteen€to€twentyÏthousand€dollars€total.Ìà àà àÌà àà à......Ìà8 àà8 àQ:€All€right.€€Well,€now,€if€you€donððt€know€where€Mr.ÍShorter€lived€and€you€donððt€know€where€his€office€was,Ïand€you€donððt€know€his€phone€number€and€you€neverÏknew€any€of€those€things,€how€did€Mr.€Shorter€get€hisÏmoney?ÌÌà8 àà8 àA:€He€would€call€me€and€we€would€run€through€andÏmeet.€€Sometimes€he€would€meet€me€at€the€bankÏwhen€he€would€call€me€and€let€me€know€there€was€aÏload€that€had€been€hauled€in€or€a€load€coming€in,€andÏhe€would€inform€me€of€the€type€of€metals.€€He€wouldÏinform€me€of€roughly€how€many€loads.€€He€wouldÏinform€me€of€the€mileage€back€and€forth€because€IÏwas€paying€him€14€cents€a€mile€for€his€gasoline.€€AndÏwe€were€also€paying€him€a€premium€for€his€labor,€aÏsmall€premium€but€we€were€paying€him.€€ÌÌà8 àà8 àQ:€He€was€like€a€subcontractor€of€yours?ÌÌà8 àà8 àA:€Yes,€sir.€€ÌÌà8 àà8 àQ:€You€paid€him€a€check?ÌÌà8 àà8 àA:€No,€sir.€€I€did€not€pay€him€in€check.€€I€paid€him€inÏcash€so€that€he€could€pay€for€his€expenses€or€in€someÏcases€actually€the€deal€he€had€cut€for€the€purpose€ofÏthe€scrap.Ìà àà àÌÓÓà àThe€first€of€the€transactions€under€review€occurred€on€October€27,€1989.€ÏGoodner€testified€that€he€primarily€used€Raymond€Shorter€to€make€theÏdeliveries€to€Southern€Tin.€€However,€at€trial€Southern€Tin€introduced€intoÏevidence€Raymond€Shorterððs€death€certificate€establishing€that€RaymondÏShorter€had€died€on€August€5,€1989,€nearly€three€months€before€the€firstÏtransaction€even€occurred.€€Therefore,€Southern€Tin€proved€that€there€was€noÍway€for€Shorter€to€have€made€the€deliveries€in€question€as€Goodner€hadÏclaimed.€€€€€Ìà àGoodner€testified€that€Larry€Wade€was€his€only€other€agent.€€At€trial,ÏWade€testified€that€his€job€for€Goodner€was€to€pick€up€a€check€for€Goodner€atÏSouthern€Tin.€€In€fact,€when€questioned€about€the€services€he€provided€toÏGoodner,€Wade€testified:ÌÓÓà8 àà8 àQ:€What€did€he€[Goodner]€ask€you€that€he€wantedÏyou€to€do?ÌÌà8 àà8 àA:€To€pick€up€a€check€for€him.ÌÌà8 àà8 àQ:€Did€you€ask€him€what€else€was€involved?ÌÌà8 àà8 àA:€He€simply€stated€that€he€would€like€for€me€to,€youÏknow,€pick€it€up€for€him.€€Ìà àà àÌà àà à.......Ìà àà8 àQ:€...Where€did€you€go€to€pick€up€the€check?ÌÌà8 àà8 àA:€Southern€Tin€Compress.ÌÌà8 àà8 àQ:€Is€that€where€Mr.€Goodner€told€you€to€go?ÌÌà8 àà8 àA:€Yes,€it€is.ÌÌà8 àà8 àQ:€Did€he€tell€you€what€to€do€when€you€got€toÏSouthern€Tin?ÌÌà8 àà8 àA:€Yeah.€€I€was€to€go€in€and€to€the€scales€there€andÏpick€up€a€ticket€and€turn€it€into€the€lady€that€doesÏthe€paperwork.€€And€then€she€would€fix€up€a€checkÏand€put€it€in€an€envelope€and€gave€it€to€me.Ìà àà àÌà àà à.......Ìà8 àà8 àQ:€What€would€you€do€when€you€pulled€into€SouthernÏTin,€and€what€did€you€do?ÌÌà8 àà8 àA:€I€just€pulled€up€front€there,€get€out€and€walk€in,Ïand€get€their€ticket,€and€turn€right€around€and€hand€itÏto€Ms.€Mary.€€And€she€would€make€up€the€check€andÏput€it€in€the€envelope€and€hand€it€to€me€with€a€pieceÏof€candy,€and€I€was€on€my€way.ÌÌà8 àà8 àQ:€Who€did€you€see€about€getting€the€ticket?ÌÌà8 àà8 àA:€Mark€Hiller.€€Ìà àà àÌà àà à.......Ìà8 àà8 àQ:€How€many€times€would€you€say€it€was?ÌÌà8 àà8 àA:€Well,€it€was€probably,€it€was€nearly€a€weekly€thing.€ÏIt€went€on€for€over€a€year€that€I€know.Ìà àà à......Ìà8 àà8 àQ:€Did€you€go€by€and€pick€up€a€check€from€SouthernÏTin€to€Mr.€Goodner€more€than€once€a€week?ÌÌà8 àà8 àA:€There€was€probably€a€couple€occasions€where€IÏwent€twice.ÌÌà8 àà8 àQ:€Twice€a€week?ÌÌà8 àà8 àA:€Yes,€probably€a€couple€different€weeks€I€did.ÌÌà8 àà8 àQ:€How€did€you€find€out€each€time€you€needed€to€goÏto€Southern€Tin€for€Mr.€Goodner?ÌÌà8 àà8 àA:€He€would€call€me.€€ÌÌà8 àà8 àQ:€Call€you€at€the€boat€shop?ÌÌà8 àà8 àA:€No.€Usually€it€would€be€at€home€at€night€he€wouldÏcall.ÌÌà8 àà8 àQ:€What€did€he€say€when€he€called€you?ÌÌà8 àà8 àA:€That€I€would€need€to€go€over€and€pick€up€a€checkÏfor€him.ÌÌà8 àà8 àQ:€And€how€much€was€he€paying€you€„„€well,€let€meÏask€you€this,€how,€basically,€did€he€pay€you?€€He€paidÏyou€every€time€you€went€over€there€or€by€the€week€orÏwhat?ÌÌà8 àà8 àA:€Yeah,€usually€two€hundred€dollars€a€week€is€what€heÏwas€paying€me.ÌÌà8 àà8 àQ:€Did€that€make€a€difference€whether€you€went€thereÏonce€a€week€or€twice€a€week?ÌÌà8 àà8 àA:€It€didnððt€make€any€difference.€€ÌÌà8 àà8 àQ:€But€you€got€two€hundred€dollars€a€week€from€Mr.ÏGoodner€either€way?ÌÌà8 àà8 àA:€Yes,€sir,€thatððs€right.ÌÌà8 àà8 àQ:€Did€you€ever€get€paid€two€hundred€dollars€a€weekÏin€which€you€didnððt€pick€up€a€check€for€Mr.€Goodner?ÌÌà8 àà8 àA:€No,€I€didnððt,€I€donððt€think.Ìà àà àÌà àà à......€€€€€€€€€€€€Ìà8 àà8 àQ:€When€you€got€to€Southern€Tin€to€pick€up€the€scaleÏtickets,€were€those€tickets€already€ready€or€did€youÏhave€to€wait€on€them?ÌÌà8 àà8 àA:€No.€€I€never€had€to€wait€on€anything.€€I€had€to€waitÏin€line€behind€some€other€people,€but€I€never€had€toÍwait€on€the€tickets.ÌÌà8 àà8 àQ:€The€tickets€were€filled€out€when€you€got€there?ÌÌà8 àà8 àA:€Thatððs€right.Ìà àà à.......Ìà8 àà8 àQ:€So€if€I€understand€you€right,€you€would€go€toÏSouthern€Tin€and€there€would€already€be€a€ticketÏready.ÌÌà8 àà8 àA:€Thatððs€right.€€Ìà àà àÌÓÓà àWade€did€testify€that€one€day€he€had€hauled€two€loads€of€scrap€aluminumÏwith€a€pickup€truck€and€a€small€trailer.€€Otherwise,€Wade€testified€that€heÏnever€inspected€any€source€for€scrap€on€behalf€of€Goodner,€never€purchased€orÏsold€scrap€for€Goodner,€and€that€neither€he€nor€his€agents€ever€made€deliveriesÏof€scrap€for€Goodner.€€Furthermore,€Wade€testified€that€he€never€saw€GoodnerÏin€possession€of€a€truck€that€could€haul€40,000€pounds€of€scrap€metal,€asÏHillerððs€bogus€scale€tickets€had€indicated.€€Specifically,€Wade€testified:ÌÓÓà8 àà8 àQ:€Did€you€ever€go€out€and€inspect€a€place€that€wasÏsupposed€to€have€some€scrap€to€look€at€for€Mr.ÏGoodner?ÌÌà8 àà8 àA:€Nothing€else€to€do€with€the€scrap€metal€business.ÌÌà8 àà8 àQ:€Did€you€ever€go€out€and€negotiate€with€anybodyÏabout€buying€scrap€on€behalf€of€Mr.€Goodner?ÌÌà8 àà8 àA:€No,€I€didnððt.ÌÌà8 àà8 àQ:€Did€you€ever€go€out€and€arrange€other€people€toÍdrive€scrap€for€Mr.€Goodner?ÌÌà8 àà8 àA:€No,€I€didnððt.ÌÌà8 àà8 àQ:€Did€you€ever€see€Mr.€Goodner€in€possession€orÏcontrol€of€any€vehicle€that€would€haul€forty€thousandÏpounds€of€scrap€metal?ÌÌà8 àà8 àA:€No.€€Ìà àà àÌÓÓà àMary€Hallock€was€Southern€Tinððs€cashier€throughout€the€relevant€timeÏperiod.€€She€testified€that€on€the€morning€of€February€28,€1992,€she€receivedÏtwo€anonymous€telephone€calls€at€Southern€Tin.€€Through€her€dealings€withÏcustomers,€Hallock€was€familiar€with€Southern€Tinððs€regular€customers€and€wasÏable€to€recognize€them€from€both€voice€and€sight.€€She€testified€that€sheÏrecognized€the€caller€as€Larry€Wade€when€he€made€reference€to€a€joke€the€twoÏhad€shared.€€She€testified:ÌÓÓà8 àà8 àQ:€In€your€position,€did€you€have€the€opportunity€toÏbecome€familiar€with€the€various€customers€thatÏwould€come€in?ÌÌà8 àà8 àA:€Yes.ÌÌà8 àà8 àQ:€And€did€you€get€to€the€point€where€you€couldÏrecognize€many€on€sight?ÌÌà8 àà8 àA:€Yes.ÌÌà8 àà8 àQ:€And€did€you€get€become€familiar€with€them€on€anÏindividual€basis?Ìà àà àÌà àà àA:€Yes.€€I€knew€them€when€they€came€in.ÌÌà àà à.........Ìà8 àà8 àQ:€Did€you€become€familiar€enough€with€„„€did€youÏbecome€familiar€enough€with€the€various€customersÏthat€you€would€recognize€them€by€their€voice€alone?ÌÌà8 àà8 àA:€Some€of€them,€yes.Ìà àà à......Ìà8 àà8 àQ:€...Did€you€receive€an€anonymous€telephone€call€onÏFebruary€28th,€1992?ÌÌà8 àà8 àA:€Yes.Ìà àà à......Ìà8 àà8 àQ:€Ms.€Hallock,€did€you€recognize€the€voice€on€theÏtelephone?ÌÌà8 àà8 àA:€At€first€I€did€not.€€He€called€twice.€€When€he€calledÏback€again,€because€Barry€[Panitz]€was€not€there,€theÏvoice€was€familiar€but€I€couldnððt€put€a€place,€orÏcouldnððt€put€a€picture€in€my€brain€as€to€who€it€was.€ÏAnd€during€the€conversation€he€said,€remember€youÏtold€the€driver€that€he€would€get€caught€by€the€DOTÏfor€an€overload,€and€then€I€knew€who€it€was.€€TheÏvoice€and€the€face€just€came€together.€€It€was€LarryÏWade.€€Ìà àà àÌà àà à......Ìà8 àà8 àQ:€And€then€what€did€he€say€when€you€told€him€thatÏBarry,€Mr.€Panitz,€was€not€there?ÌÌà8 àà8 àA:€He€told€me€that€the€company€was€being€ripped€off,Ïthatððs€his€words,€by€someone€we€would€not€ever€dreamÏof€him€doing€it.€And€I€said€well,€who€do€you€think€itÏis?€€He€said,€I€canððt€tell€you€the€name€but€itððs€a€blackÏheaded€boy€on€the€scales€„„€black€headed€man€on€theÏscales.ÌÌà8 àà8 àQ:€And€with€that€description€of€a€black€headed€manÏon€the€scales,€were€you€able€to€identify€whichÏemployee€that€was?ÌÌà8 àà8 àA:€Yes.€€It€was€only€one€black€headed€person€on€theÏscales.€€It€was€Mark€Hiller.€€Ìà àà àÌ€ÓÓDuring€trial,€Larry€Wade,€himself,€referred€to€the€occasion€when€he€and€MaryÏHallock€had€joked€about€the€heavy€loads€he€supposedly€was€bringing€intoÏSouthern€Tin.€€He€stated:ÌÓÓà8 àà8 àQ:€Were€you€ever€questioned€about€anything€whenÏyou€would€go€to€pick€up€the€check?ÌÌà8 àà8 àA:€No.€Ms.€Mary€asked€me,€said,€made€a€remark€onceÏabout€the€trailer€being€loaded€heavy.ÌÌà8 àà8 àQ:€Did€you€reply€anything?ÌÌà8 àà8 àA:€I€just,€you€know,€I€laughed€at€her.€€I€didnððt€knowÏhow€to€take€her€about€it.€€I€didnððt€know,€really€knowÏwhat€she€was€talking€about.€€I€mean,€she€was€smilingÏand,€you€know,€cutting€up.€€So€I€just€kind€of€shruggedÏit€off,€you€know,€smiled€back€at€her€and€that€was€theÏend€of€it.€€Ìà àà àÌÓÓà àMark€Curland,€Hillerððs€cousin,€was€Southern€Tinððs€non„ferrous€metalsÏmanager€during€the€relevant€time€period€and,€in€that€capacity,€he€was€on€siteÏnearly€every€working€day.€€At€trial,€Curland€testified€that€he€would€have€noticedÏif€Goodner€or€his€agents€had€been€hauling€large€quantities€on€metal€into€theÏscrap€yard.€€Specifically,€Curland€stated:ÌÓÓà8 àà8 àQ:€Youððre€saying€youððre€down€at€the€scrap€yard€day€toÏday.€€Did€you€see,€like€tractor€trailers€or€large€dumpÏtrucks€coming€in€with€scrap€on€a€daily€basis?ÌÌà8 àà8 àA:€I€didnððt€see€anything€unusual€as€far€as€great€bigÏamounts€because€something€like€that€would€have€beenÏnoticeable.€€I€mean,€itððs€not,€let€me€say,€itððs€notÏunusual€to€see€a€large€truck€come€in,€but€you€wouldÏnotice€it.€€I€mean,€it€would€be€something€that€youÏwould€see.ÌÌà8 àà8 àQ:€Youððre€saying€a€great€big€amount.€€What€wouldÏthat€be?ÌÌà8 àà8 àA:€Well,€if€you€see€a€seventy€foot€truck€come€in,€IÏmean€in€order€to€haul€forty€thousand€pounds€of€grade,Ïit€would€have€to€be€a€truck€longer€than€this€room.€€IÏmean,€thereððs€no€way€you€could€possibly€haul€it€onÏanything€smaller.€€ÌÌà8 àà8 àQ:€Did€you€see€Bob€Goodner€bring€in€trucks€in€likeÏthat?ÌÌà8 àà8 àA:€I€never€saw€that€Mr.€„„€I€never€saw€anyone€at€all,Ïthat€I€can€recall,€ever€bringing€in€any€trucks€or€evenÏcoming€in.€€ÌÌà8 àà8 àQ:€Do€you€know€of€a€Mr.€Larry€Wade€ever€bringing€inÏtrucks€that€size?ÌÌà8 àà8 àA:€No,€sir.€€I€never€saw€him.ÌÌà8 àà8 àQ:€Do€you€know€of€anybody€working€for€Mr.€GoodnerÏwho€would€bring€in€loads€that€large?Ìà àà à......Ìà8 àà8 àA:€No,€sir.ÌÌà àà8 àQ:€Would€you€have€noticed€any€one€entity€orÍindividual€bringing€in€those€amounts€of€steel?ÌÌà8 àà8 àA:€Yes,€sir.€€As€many€times€as€this€was€reported,€thisÏsupposedly€coming€in,€yes,€sir,€after€a€period€of€time€itÏwould€have€been€quite€noticeable.€€One€reason,€ourÏinventory€would€have€just€jumped€way€up.€€It€wouldÏhave€been€something€I€would€have€seen.€€You€couldnððtÏhelp€but€notice.€€Ìà àà àÌ€ÓÓà àOn€March€3,€1992,€Southern€Tin€filed€a€verified€complaint€for€moneyÏdamages€and€for€an€injunction€against€the€defendants€in€the€Shelby€CountyÏChancery€Court.€€Following€discovery,€the€case€was€tried€without€a€jury.€€ÌThe€Chancellor€entered€an€order€of€judgment€on€February€14,€1997,€thatÏawarded€Southern€Tin€a€judgment€against€the€Defendants,€jointly€and€severally,Ïfor€compensatory€damages€in€the€amount€of€$490,000€and€for€punitive€damagesÏin€the€amount€of€$200,000.€€Appellants€Hiller€and€Goodner€have€appealed€andÏthe€only€issue€for€review€is€whether€the€evidence€preponderates€against€theÏfindings€of€the€trial€court.Ìà àSince€this€case€was€tried€by€the€court€sitting€without€a€jury,€we€reviewÏthe€case€ò òòòde€novoó óóó€upon€the€record€with€a€presumption€of€correctness€of€theÏfindings€of€fact€by€the€trial€court.€€Unless€the€evidence€preponderates€againstÏthe€findings,€we€must€affirm,€absent€error€of€law.€€T.R.A.P.€13€(d).Ô€*Ôòòò ò€€Ô€ÔVarley€v.ÏVarleyó óóó,€934€S.W.2d€659,€667€(Tenn.€App.€1996);òòò ò€Beacon€Hill€Property€OwnersÏAssoc.,€Inc.€v.€Palmeròòó óóó€òòò òóóProperties,€Inc.ó óóó,€911€S.W.2d€736,€737€(Tenn.€App.€1995).€ÍReview€of€questions€of€law€is€likewise€òòò òde€novoó óóó€but€with€no€presumption€ofÏcorrectness.ò òòò€€City€of€Tullahoma€v.€Bedford€Countyóóó ó,€938€S.W.2d€408,€412€(Tenn.Ï1997).€€€€Ìà àCentral€to€this€case€is€a€finding€that€Southern€Tin€did€not€receive€theÏscrap€metal€in€return€for€the€checks€it€issued€to€Goodner.€€Witness€credibilityÏis€a€determinative€factor€in€cases€such€as€this.€€After€hearing€all€the€proof,€theÏChancellor€concluded€that€Southern€Tinððs€witnesses€were€credible€and€thatÏHiller€and€Goodner€lacked€credibility.€ÌÓÓà8 àà8 àIn€this€Courtððs€opinion€the€key€is€did€the€scrap€comeÏin.€€In€evaluating€that€the€Court€has€had€theÏopportunity€to€hear€the€testimony€of€Mr.€Curland.€ÏMr.€Curland€in€this€Courtððs€opinion€is€an€honest€man.€ÏHe€is€a€truthful€witness.€€He€has€got€nothing€to€gainÏor€lose€the€Court€believes€by€his€telling€the€truth.€€HeÏseemed€very€uneasy€and€so€stated€about€having€toÏtestify€against€a€cousin€[Mark€Hiller]€whom€heÏexpresses€a€great€deal€of€affection€for.€€It€did€not€seemÏinsincere€to€this€Court€at€all.€€Ìà àà àÌà8 àà8 àà àNow,€Mr.€Curlandððs€job€was€very€different€thanÏthat€of€Mrs.€Hallockððs€job.€€Mrs.€Hallock€in€thisÏCourtððs€opinion€was€an€exceptionally€honest€person€asÏwell.€€And€she€seemed€very€clear€about€what€she€hadÏto€say,€and€in€this€Courtððs€opinion€was€very€truthful.€ÏAnd€both€of€these€witnesses€when€they€were€uncertainÏabout€things,€came€across€to€the€Court€as€not€tryingÏto€embellish€or€diminish€their€lack€of€certainty.€€NowÏMrs.€Hallockððs€job€was€very€simple.€€The€people€whoÏare€doing€the€weighing€the€tickets€are€turned€over€toÏher€and€she€cuts€out€the€checks€and€she€pays€theÍpeople.€€Mr.€Curland€is€not€involved€in€that.€€HeÏwouldnððt€know€about€all€of€that.€€The€one€thing€Mr.ÏCurland€does€know€that€if€this€volume€of€materialÏwere€coming€in€during€this€period,€he€said€quote,€itÏwould€have€stuck€out€like€a€sore€thumb,€closed€quotesÏto€him.€This€Court€believes€that.€€He€said€that€if€aÏtruck€was€large€„„€a€large€truck€anything€bigger€thanÏone€ton€than€[sic]€he€would€have€been€called€over,€butÏnot€on€small€peddlers,€and€he€would€have€noticedÏthese€large€transactions.€€In€fact€on€his€own€if€he€hadÏseen€big€eighteen€wheeler€trucks€and€didnððt€knowÏwhose€they€were,€he€would€have€questioned€it.€€ThatÏwas€part€of€his€duty.€€It€is€his€job€was€one€that€hadÏaccomplished€these€responsibilities€in€his€mind.€€AndÏas€he€said€after€a€short€time,€this€volume€and€numberÏof€trips€would€have€come€to€his€attention.€€Mr.ÏCurland€in€this€Courtððs€opinion€is€credible€as€I€haveÏsaid.€€€€€€€€à àà8 àà8 àÌÌà8 àà8 àà àNow€the€question€is,€is€he€believed€over€theÏdefendants€who€say€it€was€all€brought€in.€€This€CourtÏdoes€not€find,€and€much€to€its€regret,€for€the€CourtÏalways€hates€to€reach€a€conclusion€such€as€theÏfollowing,€but€ò òòòthe€Court€does€not€find€that€Mr.€HillerÏand€Mr.€Goodner€are€credible€witnesses.€€It€does€notÏfind€that€they€have€been€truthful€on€this€issue€or€manyÏothersóóó ó.€€ÌÌà8 àà8 àà àThe€Court€finds€that€it€is€easily€reconciled€whyÏMr.€Curland€would€not€have€known€of€this€absenceÏbecause€Mr.€Curland€didnððt€know€of€this€effort€byÏthese€defendants€until€after€the€investigation€begins.ÏBut€after€it€begins,€and€after€all€of€this€is€brought€toÏhis€attention€about€this€is€what€this€record€shows€thatÏthey€supposedly€brought€in,€his€testimony€is€veryÏclear.€€It€didnððt€happen.€€This€Court€finds€that€to€beÏcredible.Ìà àà à(Emphasis€added).ÌÌÓÓà àThe€trial€judge€as€the€trier€of€fact€had€the€opportunity€to€observe€theÏmanner€and€demeanor€of€all€the€witnesses€as€they€testified€from€the€witnessÏstand.€€The€weight,€faith,€and€credit€to€be€given€to€any€witnessððs€testimony€liesÏin€the€first€instance€with€the€trier€of€fact,€and€the€credibility€accorded€will€beÏgiven€great€weight€by€the€appellate€court.€€ò òòòHaverlah€v.€Memphis€Aviation,€Inc.ó óóó,Ï674€S.W.2d€297,€302€(Tenn.€App.€1984).€€The€credibility€determination€of€theÏtrial€court€is€binding€on€the€appellate€court€unless,€from€other€real€evidence,€theÏappellate€court€is€compelled€to€conclude€to€the€contrary.€€ò òòòState€ex€rel.€BalsingerÏv.€Town€of€Madisonville,€ó óóó222€Tenn.€272,€435€S.W.2d€803€(1968);€ò òòòHudson€v.ÏCapps,€ó óóó651€S.W.2d€243€(Tenn.€App.€1983).€€From€the€record€before€us,€we€findÏthat€the€evidence€does€not€preponderate€against€the€chancellorððs€findings€thatÏdefendants€defrauded€the€plaintiff.Ìà àHiller€and€Goodner€also€assert€that€Southern€Tin€failed€to€prove€itsÏdamages€with€a€reasonable€degree€of€certainty.€€In€calculating€damages,ÏSouthern€Tinððs€manager,€Barry€Panitz,€testified€that€during€the€relevant€timeÏperiod€Southern€Tin€issued€checks€to€Goodner€for€$500,136.15.€€Southern€TinÏrecognized€and€admitted€that€Goodner€may€have€brought€in€some€scrap,Ïincluding€a€small€amount€of€aluminum€and€a€load€of€batteries.€€In€fact,€LarryÏWade,€Goodnerððs€bag€man,€testified€that€he€brought€in,€on€occasion,€some€smallÍamount€of€aluminum.€€Therefore,€Southern€Tin€deducted€those€amounts€thatÏmight€have€been€paid€for€legitimate€transactions€from€the€total€paid€toÏGoodner€over€the€28€months€of€the€fraud.€€Ìà àTo€refute€Southern€Tinððs€calculations,€the€defendants€introduced€theÏtestimony€of€Don€Carpenter,€a€certified€public€accountant€with€a€specialty€inÏfraud€investigation.€€On€direct€examination,€Carpenter€testified€that€based€onÏhis€study€of€the€records€furnished€to€him€he€saw€no€indication€that€Hiller€andÏGoodner€committed€the€theft€of€$500,000.00.€€He€further€stated€that€to€proveÏthe€loss€a€physical€inventory€was€necessary€and€a€time„lapse€between€theÏinventories€would€give€more€opportunity€for€discrepancies.€€Carpenter€opinedÏthat€the€plaintiffððs€method€of€calculating€its€loss€was€not€a€legitimate€method.€€ò òÏó óHowever,€on€cross„examination,€Carpenter€testified€that€if€one€acceptsÏSouthern€Tinððs€proof€of€non„delivery€of€the€scrap€metal,€then€Southern€TinððsÏcalculation€of€damages€is€legitimate.€€Specifically,€Carpenter€testified€as€follows:ÌÓÓà8 àà8 àQ:€...Assume€there€was€a€legitimate€transaction€by€Mr.ÏGoodner.ÌÌà8 àà8 àA:€The€first€five€or€six,€okay.ÌÌà8 àà8 àQ:€Could€we€not€deduct€the€first€five€and€deduct€theÏaluminum€and€get€the€total€of€the€rest?€€Yes€or€no,Ïplease.Ìà àà à......Ìà8 àà8 àA:€€€€Yes,€I€mean€„„€yes,€if€you€decided€all€the€rest€wereÍlegitimate€and€these€six€were€legitimate€and€youÏsubtracted€those€from€the€gross€total€but€yes€„„Ïassuming€all€of€the€others€are€illegitimate.€€ÌÌà8 àà8 àQ:€I€have€got€more€to€this.€€Assume€Mr.€Pantiz€[sic]Ïsaid€that€the€rest€of€the€transactions€are€impossible€toÏhave€occurred€and€Mr.€Curland€said€that€theÏtransactions€were€impossible€to€have€occurred€becauseÏthey€are€there€everyday€and€they€know€they€didnððtÏoccur.€€Then€you€can€take€out€the€aluminum€and€youÏcan€take€out€the€first€five,€and€then€if€you€accept€Mr.ÏPanitzððs€testimony€and€Mr.€Curlandððs€testimony,€andÏif€you€accept€it,€then€you€know€the€rest€were€notÏlegitimate€transactions,€wouldnððt€you?ÌÌà8 àà8 àA:€I€would€say€if€you€accepted€that€testimony€on€itsÏface,€that€would€be€true.€€Ìà àà àÌÓÓà àIn€determining€the€amount€of€damages,€the€trial€court€generously€gaveÏHiller€and€Goodner€a€credit€in€excess€of€$10,000€for€legitimate€sales€toÏSouthern€Tin€during€the€relevant€time€period.€€That€amount€was€deducted€fromÏthe€$500,136.15€in€actual€damages€proved,€and€the€trial€court€entered€aÏjudgment€in€favor€of€Southern€Tin€for€$490,000.00.€€Contrary€to€the€appellantsððÏassertions,€mathematical€certainty€is€not€required€to€support€an€award€whereÏthere€is€substantial€evidence€in€the€record€from€which€reasonable€inferencesÏmay€be€drawn€regarding€the€amount€of€damages.€€ò òòòCummins€v.€Brodieóóó ó,€667ÏS.W.2d€759,€765€(Tenn.€App.€1983).€€From€the€record€before€us,€we€concludeÏthat€there€is€ample€evidence€to€support€the€chancellorððs€determination€ofÍ$490,000.00€in€compensatory€damages€and€$200,000.00€in€punitive€damages.€€Ìà àThe€judgment€of€the€trial€court€is€affirmed,€and€this€case€is€remanded€toÏthe€ÌÌtrial€court€for€such€further€proceedings€as€may€be€necessary.€€Costs€of€theÏappeal€are€assessed€against€the€appellants.ÌÓÓà àà àà àà àà àà àà à_________________________________Ìà àà àà àà àà àà àà àò òW.€FRANK€CRAWFORD,€Ìà àà àà àà àà àà àà àPRESIDING€JUDGE,€W.S.ó óÌÌò òCONCUR:ÌÌ____________________________________ÌALAN€E.€HIGHERS,€JUDGEó óÌÌò ò____________________________________ÌHOLLY€KIRBY€LILLARD,€JUDGEó óœÔ€Ô