ÿWPCº .# ”UNŸ %í 0(ów@4[o~ 0J† 0TÐ 0^$ 0h‚ 0rê 0|\ 0†Ø 0^ 1uî 0dcU>ÇB) AQ. Æ 0DE 0@‰ 0DÉ DC D/P B Bœ D3¹ AMì U*9 c v~i vÓç˜HP LaserJet 4SiHPPCL5MS,ü,,,,,ü0nLlÎ(ÈhH  Z ‹6Times New Roman RegularX($¡¡ › Uœ  ž Ÿ  £¡¢£Ó€¯@1d`°3|x¯2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô  ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)P ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ< Œ 9p`(&Times New Roman% Line 7 d !"#%Cþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5(3¯$¢¢Ý ƒ!ÝÝ  Ý("ÿÿ$££Ò  ÒÒ  Ò($$””ò òÚ  Ú1Ú  Úó ó7Border 1dd'''÷ÿ dxd düÿP Pd&&&&'ÿÿdxd "$Cþÿ << Gÿÿ< Œ 9p`(Arial üÝ ƒ!ÝÔ€ÔÝ  ÝÝ ƒ!"ÝÝ  ÝÔ€*ÔÔ€*ÔÓ  ÓÔ YYY ÔFILEDÔ€*XÔÌÌò òDecember€9,€1997ÌÌCecil€Crowson,€Jr.ÌÔ€*ôÔAppellate€Court€Clerkó óPtPtHHÚ(ÿáÿâùFG(üHHØ(d'`Styl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑGenevaÑÑ ÑÒ  ion-F Geneva ÒÒ  ion-F Geneva ÒÝ ƒ!ÝÔ . ÔÔ€ÔÝ  ÝÓ` Ü` p”XÓò òÑ\R AØ'\Ñ›Þ ÞÌà@ àIN€THE€COURT€OF€APPEALS€OF€TENNESSEE,€WESTERN€SECTIONÌà@ àAT€JACKSONó óÌÌà@ à_______________________________________________________ÌÌà à)Ìò òWADE€SPURLING,€D.C.ó ó,à à)à àShelby€County€Chancery€CourtÌà à)à àNo.€107260„3Ì€€€€€Plaintiff/Appellant.à à)Ìà à)ÌVS.à à)à àC.A.€No.€02A01„9609„CH„00225ÌÙ€ ÙœßR€)+$A1-j|‘ùr` Å `€€@ÿRß›à à)Ìò òKIRBY€PARKWAY€CHIROPRACTICó ó,à à)Ìò òINC.,ó ó€ò òUNION€CHIROPRACTIC,€INC.,€ó óà à)Ìò òBEHRMAN€CHIROPRACTIC€CLINIC„ó óà à)Ìò òWESTOWN,€INC.,€and€MICHAELó óà à)Ìò òPLAMBECK,€D.C.€individually€andó óà à)Ìò òas€OWNER,€OFFICER€and/or€ó óà à)Ìò òDIRECTOR€OF€KIRBY€PARKWAYó óà à)Ìò òCHIROPRACTIC,€INC.,€UNIONó óà à)Ìò òCHIROPRACTIC,€INC.,€andó óà à)Ìò òœBEHRMAN›€CHIROPRACTICó óà à)Ìò òCLINIC„WESTOWN,€INC.,ó óà à)Ìà à)Ì€€€€€Defendants/Appellees.à à)Ìà à)Ì______________________________________________________________________________ÌÌFrom€the€Chancery€Court€of€Shelby€County€at€Memphis.Ìò òHonorable€D.€J.€Alissandratos,€Chancellor€ó óÌÌÌÌò òPatricia€L.€Pennó ó,€Memphis,€TennesseeÌAttorney€for€Plaintiff/Appellant.ÌÌÌò òValerie€Barnes€Speakmanó ó,€JACKSON,€SHIELDS,€YEISER€&€CANTRELL,€ÌCordova,€TennesseeÌAttorney€for€Defendants/Appellees.ÌÌÌÌOPINION€FILED:ÌÌò òAFFIRMED€AND€REMANDEDó óÌÌÌà àò òFARMER,€J.ó óÌÌò òHIGHERS,€J.ó ó:€(Concurs)Ìò òLILLARD,€J.ó ó:€œ(Concurs)ÌÌÌÌÌÌÌÌÌ›ÌÓ  ÓÓ` Ü` ˜XÓÓÓœà àThe€plaintiff,€Wade€Spurling,€D.C.,€appeals€from€the€order€of€the€trial€courtÏgranting€the€defendantsðð€motion€to€dismiss€for€failure€to€state€a€claim€upon€which€relief€can€beÏgranted€pursuant€to€Rule€12.02(6)€T.R.C.P.€€Spurling€filed€a€complaint€titled€ð ðComplaint€ForÏDeceit€in€Inducement€to€Contract,€Promissory€Fraud,€Fraud,€Intentional€Interference€WithÏPerformance€of€Contractual€Obligations€and€Breach€of€Contract.ðð€€The€complaint€alleges€thatÏPlaintiff€owned€and€operated€Spurling€Chiropractic€Clinic€(SCC).€€He€entered€into€negotiationsÏwith€Defendant€Michael€K.€Plambeck€(Plambeck)€for€Plambeck€to€purchase€SCC.€ÌÌà àAttached€to€the€amended€complaint€is€a€copy€of€a€proposed€contract€which,Ïaccording€to€the€complaint,€was€faxed€to€Spurling.€€After€obtaining€approval€from€PlambeckððsÏagent,€Spurling€marked€through€certain€provisions€that€he€did€not€accept,€signed€the€contract€andÏfaxed€it€back€to€Plambeckððs€agent.€€This€document€provides€that€any€controversy€arising€out€of€orÏrelating€to€this€agreement€shall€be€settled€through€binding€arbitration.€€The€same€clause€is€containedÏin€the€contract€which€is€attached€to€a€motion€to€stay€proceedings€and€to€compel€arbitration€filed€byÏDefendants€Plambeck€and€Kirby€Parkway€Chiropractic,€Inc.€€Following€a€hearing€on€theseÏmotions,€the€trial€court€ordered€that€the€motions€be€held€in€abeyance€and€gave€the€plaintiff€anÏopportunity€to€file€an€amended€complaint.€€Following€the€filing€of€the€amended€complaint,€theÏmotions€were€granted.ÌÌà àParties€are€entitled€to€a€judicial€determination€of€the€issue€of€rescission€of€a€contractÏdespite€the€fact€that€there€is€an€arbitration€clause€in€the€contract.€€As€this€Court€said€in€òòò òCity€ofÏBlaine€v.€John€Coleman€Hayes€and€Assoc.,€Inc.óóó ó,€818€S.W.2d€33,€38€(Tenn.€App.Ï1991):ÌÌÓÓà8 àà àIn€1983,€when€the€Tennessee€legislature€passed€the€UniformÏArbitration€Act,€they€had€full€knowledge€of€the€long€establishedÏright€of€a€person€to€seek€rescission€of€a€contract€procured€by€fraud.€ÏWith€this€knowledge,€we€find€it€logical€for€the€legislature€to€intendÏto€except€actions€for€rescission€from€a€decision€by€arbitrators€andÏgiving€the€language€of€the€statute€its€usual€and€ordinary€meaning,€theÏlegislature€did€just€that.€.€.€.€ÌÌà8 àà à.€.€.€.ÌÌà8 àà à.€.€.€€Should€the€contract€be€rescinded€there€is€no€contractÏcontaining€an€arbitration€clause€and€the€rights€of€the€parties€can€beÏfully€adjudicated€by€the€court.€€Should€the€contract€not€be€rescindedÏthe€parties€may€then€proceed€to€a€determination€of€their€disputesÏunder€the€arbitration€provisions.ÌÌÌÌÓÓòòò òIdóóó ó.€at€38.ÌÌà àThe€question€then€becomes€whether€or€not€the€plaintiff€has€sufficiently€alleged€fraudÏwhich€would€then€require€a€determination€by€the€trial€court€whether€the€contract€should€beÏrescinded.€€A€motion€to€dismiss€pursuant€to€Rule€12.02(6)€T.R.C.P.€for€failure€to€state€a€claimÏupon€which€relief€can€be€granted€tests€only€the€sufficiency€of€the€complaint.€€The€failure€to€state€aÏclaim€is€determined€by€an€examination€of€the€complaint€alone.€€The€allegations€contained€in€theÏcomplaint€are€considered€alone€and€taken€as€true.€€òòò òCook€v.€Spinnakerððs€of€Rivergate,€Inc.óóó ó,Ï878€S.W.2d€934,€938€(Tenn.€1994).ÌÌà àAll€pleadings€shall€be€so€construed€as€to€do€substantial€justice.€€Rule€8.06€T.R.C.P.€ÏHowever,€when€averring€fraud,€the€circumstances€constituting€fraud€shall€be€stated€withÏparticularity.€€Rule€9.02€T.R.C.P.€€It€is€not€necessary€to€actually€employ€the€word€ð ðfraudðð€as€fraudÏis€a€legal€conclusion€drawn€from€the€facts.€€òòò òSullivant€v.€Americana€Homes,€Inc.óóó ó,€605ÏS.W.2d€246,€249€(Tenn.€App.€1980).ÌÌà àThe€portions€of€the€complaint,€as€amended,€upon€which€Plaintiff€relies€as€havingÍstated€a€cause€of€action€based€upon€fraud€are€as€follows:ÌÌÓÓà8 àà à3.€€On€July€3,€1995,€Plaintiff€received€a€proposed€contractÏby€facsimile€from€Plambeckððs€agent.€€The€contract,€a€copy€of€whichÏis€attached€as€Exhibit€ð ðAðð€hereto,€was€designated€ð ðEmploymentÏAgreementðð€between€Plambeck€and€Plaintiff€òòand€did€not€address€theÏð ðsecond€clinicðð€issueóó.€€After€obtaining€approval€from€PlambeckððsÏagent€Sid€Weigand€(hereinafter€ð ðWeigandðð),€Plaintiff€markedÏthrough€certain€provisions€that€he€did€not€accept,€signed€the€contractÏand€faxed€it€back€to€Plambeckððs€agent€at€his€Arlington,€TexasÏoffices.ÌÌà8 àà à.€.€.€.€ÌÌà8 àà à5.€€On€or€about€July€17,€1995,€Plambeck€arrived€at€the€SCCÏoffices€in€Memphis€with€a€revised€contract€for€Plaintiff€to€sign.€ÏPlambeck€represented€to€Plaintiff€that€the€only€difference€betweenÏthe€revised€contract€the€contract€Plaintiff€has€signed€and€faxed€toÏPlambeckððs€Arlington€office€on€July€3,€1995€were€that€(1)€theÏprovisions€Plaintiff€had€crossed€out€were,€as€a€matter€of€fact,€deletedÏand€(2)€provisions€giving€Plaintiff€his€ten€(10%)€percent€interest€inÏthe€second€clinic€were,€as€a€matter€of€fact,€included.€€Plaintiff,Ïrelying€on€these€false€representations€and€statements€of€Plambeck,Ïsigned€the€contract€with€Plambeck€on€a€signature€page€similar€toÏPage€16€of€the€document€attached€as€Exhibit€ð ðAðð€hereto.€€At€thatÏtime,€Plaintiff€was€not€given€a€copy€of€this€contract€document€andÏhas€been€refused€a€copy€of€same€upon€subsequent€requests€for€aÏcopy.ÌÌà8 àà à6.€€Rather€than€complying€with€Plaintiffððs€request€for€a€copyÏof€the€contract€executed€by€him€and€Plambeck€on€July€17,€1995,€aÏcopy€of€a€purported€ð ðEmployment€Agreementðð,€a€copy€of€which€isÏattached€as€Exhibit€ð ðBðð€hereto,€was€forwarded€to€Plaintiff€byÏfacsimile€on€or€about€October€31,€1995.€€A€highly€significant€andÏobvious€difference€between€these€two€documents€is€that€theÏsignature€of€Plambeck€in€Exhibit€ð ðBðð€is€on€one€page€and€PlaintiffððsÏsignature€is€on€the€succeeding€page.€€€ÌÌÌÌÓÓà àAt€the€hearing€on€the€motions€following€the€amended€complaint,€the€trial€court€madeÏthe€following€observations€before€issuing€his€ruling:ÌÌÓÓà8 àà àTHE€COURT:€€€.€.€.€.€€I€think€I€understand€what€youððreÏaccusing€orally.€€I€didnððt€see€this€in€the€writing€because€itððs€not€thatÏclear.€€Orally,€if€I€understand€you€correctly,€hereððs€what€youððreÏsaying€happened:€My€client,€you€say,€signed€a€document.ÌÌà8 àà àMS.€PENN:€€Yes.ÌÌà8 àà àTHE€COURT:€€He€has€now€been€sent€a€purported€originalÏdocument,€a€completely€different€document€with€pages€that€haveÏbeen€substituted.€€Signatures€have€either€been€substituted€by€forgeryÏor€have€been€substituted€by€taking€a€signature€page€from€the€originalÏdocument.ÌÌà8 àà àMS.€PENN:€€Or€cut€out€and€pasted€up,€Your€Honor.€€WeÏdonððt€know€how€it€was€done€because€the€October€31€document€thatÏwas€sent€to€us€was€sent€by€fax,€and€as€the€Court€knows€„„ÌÌà8 àà à.€.€.€.ÌÌà8 àà àTHE€COURT:€€The€problem€is€this:€The€Court€has€beenÏasked€once€before€to,€in€essence,€dismiss€the€fraudulent€allegationÏyou€made€since€the€arbitration.€€The€Court€says,€No,€Iððm€going€toÏgive€you€a€chance€to€amend€your€pleadings€so€you€can€be€veryÏspecific€about€fraud.ÌÌà8 àà àThe€thing€I€hear€you€all€relying€on€heavily€today€orally,€butÏnot€in€the€amended€pleading,€is€„„€and€itððs€really€quite€simple,€andÏthere€is€law€to€cover€that,€if€indeed€they€said€here€is€his€signatureÏpage€and€this€is€the€original€signature€page.€€You€say,€yes,€whatÏthey€did,€they€threw€off€all€the€previous€pages,€threw€them€away,Ïand€substituted€others.€€That€is€fraud.€€I€donððt€have€that€allegation€inÏwriting.ÌÌà8 àà àIf€it€is€indeed,€well,€they€forged€his€signature,€that€would€beÏfraud,€but€I€donððt€have€that€allegation€in€writing.€€If€it€is€indeed€theyÏclipped€out€the€signature€somehow€and€tried€to€duplicate€it,€thatððsÏfraud.€€I€donððt€have€that€in€writing,€and€itððs€a€very€simple€thing€toÏask€your€client:€Is€this€your€original€signature€or€not€on€this€originalÏdocument€that€we€have€requested€in€our€request€for€production€thatððsÏbeen€produced?ÌÌà8 àà àBut€no€request€for€production€has€been€made.€€So€your€clientÏdoesnððt€say€that€is€or€is€not,€or€if€he€were€saying,€Iððm€confused,€IÏdonððt€know,€letððs€hire€a€signature€expert,€and€now€where€Iððm€at€isÏIððm€hearing€oral€allegations€but€not€written€allegations.ÌÌà8 àà àMS.€NICHOLS:€€Your€Honor,€in€Section€II,€paragraph€6Ïmakes€that€allegation.ÌÌà8 àà àTHE€COURT:€€I€just€read€that€three€times,€and€you€read€it€toÏme,€and,€frankly,€I€donððt€see€that.€€All€it€says€is€that€the€signature€inÏExhibit€B€is€on€one€page.€€Plaintiffððs€signature€is€on€the€succeedingÏpage.€€It€isnððt€a€denial€thatððs€his€original€signature.€€It€is€not€aÏstatement€there€is€a€forgery.€€It€isnððt€a€straight€out€allegation€that€theÏdocuments€received€had€been€deliberately€thrown€away€and€otherÏdocuments€substituted.ÌÌà8 àà à.€.€.€.€ÌÌà8 àà8 àTHE€COURT:€€I€have€read€those.ÌÌà8 àà àLet€me€ask€you,€is€it€your€clientððs€assertion€orally€throughÏyou€that€what€has€happened€is€that€he€negotiated€a€deal,€he€saw€theÏoriginal€contract,€he€signed€the€original€contract€or€facsimile€or€whatÏhe€thought€was€the€original€deal,€and€they€now€have€taken€hisÏsignature€page€and€either€forged€his€signature,€substituted€hisÏoriginal€signature,€and€completely€substituted€all€of€the€pages€inÏfront€of€it?€€Is€that€his€position?ÌÌà8 àà àMS.€PENN:€€In€some€manner,€Your€Honor.ÌÌà8 àà àTHE€COURT:€€Then€why€donððt€I€have€that€pled?€€Thatððs€aÏsimple€enough€straight€forward€thing.€€This€is€real€simple€because€IÏmay€not€be€a€lawyer.€€I€may€be€in€the€medical€field,€but€it€is€realÏsimple.€€They€have€forged€my€signature.€€Does€your€client€say€itððs€aÏforgery€by€the€way?ÌÌà8 àà8 àMS.€PENN:€€No.ÌÌà8 àà àTHE€COURT:€€Itððs€not€a€forgery.ÌÌà8 àà à.€.€.€.ÌÌà8 àà àDoes€your€client€say€that€they€cut€and€pasted€his€signatureÏform€whatever€document€to€be€on€the€document€they€seek€to€enforceÏnow?€€Does€he€say€that?ÌÌà8 àà àMS.€PENN:€€Thatððs€what€we€believe€happened.ÌÌà8 àà àTHE€COURT:€€Where€does€it€say€they€cut€and€pasted?ÌÌà8 àà àMS.€PENN:€€It€is€not€specifically€stated€in€this€document€thatÏthey€cut€and€pasted€it€because€we€have€not€seen€the€originalÏdocument.€€ÌÌÌÌÓÓà àAfter€carefully€reviewing€the€complaint€we€have€come€to€the€same€conclusion€as€theÏchancellor€in€that€the€plaintiff€has€alleged€to€plead€fraud€with€particularity.€€The€judgment€of€theÏtrial€court€is€affirmed€and€the€cost€of€this€cause€are€taxed€to€the€appellant.ÌÌÓÓà àà àà àà àà àà à____________________________________Ìà àà àà àà àà àà àFARMER,€J.ÌÌÌÌ______________________________ÌHIGHERS,€J.€(Concurs)ÌÌÌÌ______________________________ÌLILLARD,€J.€(Concurs)ÌÌÌÌÌÌÌÌ›