ÿWPC= OÀæc&¼ÇGCœªH¾Ø… ¶ÇEC4<ù·Momñ¬ëP!_¹þÚÈ>äµTSEè…£PA¤Ä–P'Ne>…5ŃÝ1jq…Y.áFÈð¾B±—áÏÏ䡯f ¾*E%/“J´r „Û³ØÿÓjÜà!˜nc„g˰˜íÞ¯¦ÞõØf ¡zjH€}Q rÞY–ݲM”W J4Æxè’È©ˆ¼‡Ì_)‘ %ý †ñ‡ú¹Ü1Ÿi\Sc´i4ƒ÷ù³S‘eMŒé.ͧQ÷Ir9–xû2ŠÁǹSðë @¤¹Å!Îæ„mw<©¶Žµ2ÓRDOÜõjcuƒ»¾ºÏ:nÔÏŸðÉ-’6ë|ZÍLSV|‰"^„Ÿ«2ijB¾`ÿ­×…"ë”@½Ù´v¥!ȇ”3$¿qt¹†ÃîYq¦ø7åüWyŒÖ"ý×Á*±5h73,Úz„€v ·í:DK%÷1 ë97>eM®G«Ûn…e>ŒåéWoÜà`©5Œò)¡kž<­ƒ¼²¦2&¢ý²blÉ·Æ,|¿R¤“6ç™E¨?MWþÄ+f!QѶ%ê¥Tö†x™X‘ò3/ƒxrÆtI$9êk žÄ˜»üæñv‚r´Ú£Y¦¡D|‘Qb#É\ %% ^ + 0ˆ7 UN¿ w 4 z% ÒŸ q € m‚ 1™ ÆÊ ÆÆVÆ 0DâN&((E000000000000000000000000b222222222222222222222222222222222222 0ë:::: B%% 0¤B D3æ D- 0KFF AS‘Æä 0¤ª 0DN A«’˜\\IB01S01\CLERK1NASÈÈ,,,,ÈÈ0»ŽO/Ï (`£ª$¡¡Ñ€.ÑÑ8€½­»»d»»d8ÑÑ ý ÑÓ  Ó(í€"  Z6Times New Roman Regularo=/B011C8 ˜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|xÿU‹ÿÀÀÀ 'Ý ƒRèI$ÝÓ  Óà  àòòÚ  Ú1Ú  ÚóóÔ€ôâaò»»ÔÝ  ÝÔ_Ô€€In€its€suit€in€chancery€Sun€Splash€alleged€causes€of€action€concerning€certain€other€defendants,€those€partiesÐ ° Ðare€not€before€this€Court€on€appeal.Level 1Level 2Level 3Level 4Level 5‚Level 1Level 2Level 3Level 4Level 5„Level 1Level 2Level 3Level 4Level 5…Level 1Level 2Level 3Level 4Level 5(#Ã$òòÚ  Ú0Ú  Úóó - ù-(|G2èI$¤¤Ý ƒ£ª!ÝÑ€.ÑÑ8€T¥»»dXXdì8ÑÑ ý ÑÓ  ÓÝ  Ýà  àòòÚ  Ú0Ú  ÚóóÔ€ôâaò»»Ô d(|3 c$££Ý ƒ£ª!ÝÑ€.ÑÑ8€T¥»»dXXdì8ÑÑ ý ÑÓ  ÓÝ  ÝVVVV'ÿÿdxd)!ÈÈÈÈdxdx( ±þ$’’ò òFigure€Ú  Ú1Ú  Úó ó^_X`YEþÿ<<CÿÿƒLevel 1Level 2Level 3Level 4Level 5(|3 c$¢¢Ý ƒ£ª!ÝÑ€.ÑÑ8€T¥»»dXXdì8ÑÑ ý ÑÓ  ÓÝ  Ý($$””ò òÚ  Ú1Ú  Úó óX[Z&OLE 2.0 Box <=8ÿÿÿÿÿÿÿÿÿÿCÿÿ HKKKKÝ ƒ£ª!ÝÑ€.ÑÑ8€T¥»»ddÈ8ÑÑ ý ÑÓ  ÓÝ  ÝÔ_ÔÔ_ÔÑ  ÑÔ€¼T¥»»»ÔÑ8€uXXdì»»d8ÑÑ  Ñà@ü ü ìàÔ‡îPT¥ÔIN€THE€COURT€OF€APPEALS€OF€TENNESSEEˆÐ ° Ðà@kk$ìàAT€NASHVILLEÔ#†¼T¥»îîP#ԈРÖ& ÐÓ  ÓApril€7,€2002€SessionÐ üL ÐÔ‡XuX»¼T¥ÔÌò òÔ#†¼T¥»XXu#ÔSUN€SPLASH€PAINTING,€INC.òòóó€v.€HOMESTEAD€VILLAGE,€INC.,€òòet€alóó.Ô‡XuX»¼T¥Ôó óÐ úJ ÐÌà@@½½ìàò ò€Appeal€from€the€Chancery€Court€for€Davidson€CountyÐ ú J Ðà@@øøìàNo.€99„556„I€€€€€€Irvin€H.€Ô_ÔKilcreaseÔ_Ô,€Jr.,€ChancellorÐ æ 6 ÐÌÌà@@ìì*ìàßA€V) °°` d€÷E<©` AßÐ ªú  ÐÌà@@TTìàNo.€M2002„00853„COA„R3„CV€„€Filed€October€15,€2003ó óÔ#†¼T¥»XXu#ÔÔ‡XuX»¼T¥Ôò ò€Ð ¥õ  ÐÌßA€V) °°` dE<|` AßÐ }Í  Ðó óÌÓ  ÓThis€appeal€involves€a€challenge€to€the€trial€courtððs€refusal€to€award€attorneyððs€fees€pursuant€to€theÐ xÈ  ÐPrompt€Pay€Act,€and€to€the€courtððs€denial€of€prejudgment€interest.€€We€affirm€the€trial€court€in€allÐ d´ Ðrespects.Ð P  ÐÓ ÓÌò òTenn.€R.€App.€P.€3€Appeal€as€of€Right;€Judgment€of€the€Chancery€Court€Ð (x ÐAffirmed€and€Remandedó óÐ d ÐÌòòÓ  ÓÔ#†¼T¥»àXuv#ÔÔ‡XuX.¼T¥ÔWilliam€B.€Cain,óó€J.,€delivered€the€opinion€of€the€court,€in€which€òòóóBòòENóó€H.€CòòANTRELLóó,€P.J.,€M.S.,€andÐ ì< ÐòòóóWòòILLIAMóó€CòòHARLESóó€LòòEE,óó€SòòPóó.€J.,€joined.Ð Ø( ÐÌTimothy€W.€Burrow,€Nashville,€Tennessee,€for€the€appellant,€Sun€Splash€Painting,€Inc.Ð ° ÐÌH.€Frederick€Ô_ÔHumbrachtÔ_Ô,€Nashville,€Tennessee,€for€the€appellee,€Homestead€Village,€Inc.Ð ˆØ ÐÓÐÓÌò òOPINIONó óÔ#†¼T¥»XXuÿ#ÔÔ‡XuX»¼T¥ÔÐ `° ÐÌòòóóÔ#†¼T¥»XXu: #ÔÓ  ÓÔ€XuX»¼T¥Ôà  àHomestead€Village,€Inc.€(Ô_ÔHVIÔ_Ô)€contracted€with€the€Appellant€Sun€Splash€Painting,€Inc.€(SunÐ 8!ˆ  ÐSplash)€for€painting„related€services€and€materials.€€Sun€Splash€was€to€perform€these€services€onÐ $"t! ÐÔ_ÔHVIÔ_Ôððs€extended„stay€hotel€known€as€Homestead€Village€Airport.€€A€dispute€arose€between€theÐ #`" Ðparties€concerning€Ô_ÔHVIÔ_Ôððs€failure€to€pay€for€work€Sun€Splash€had€performed.€€As€a€consequence€ofÐ ü#L# Ðthis€dispute,€Sun€Splash€filed€suit€in€chancery€court€on€February€24,€1999.€€In€that€complaint€SunÐ è$8 $ ÐSplash€alleged€that€pursuant€to€a€ð ðtime€and€expense€contractðð€Sun€Splash€was€to€be€paid€$20€perÐ Ô%$!% Ðhour€plus€materials.€€In€the€alternative,€Sun€Splash€alleged€the€existence€of€a€ð ðwritten€lump€sumÐ À&"& Ðcontract.ðð€€Of€specific€interest€to€this€appeal€are€the€allegations€contained€in€ð ðCount€Fiveðð€of€theÐ ¬'ü"' Ðchancery€complaint.€€Ð ˜(è#( ÐÌÓ  ÓCOUNT€FIVEÐ p*À%* Ð(Violation€of€Tennesseeððs€Prompt€Pay€Act€of€1991)Ð \+¬&+ Ðâ âÓÓÐ H,˜',ým ÐÔ_Ôà8  à25.à0` Ð Ð àSun€Splash€realleges€paragraphs€1„24€above€as€if€fully€alleged€in€this€countÐ ° Ðâ âand€incorporates€them€herein€by€this€reference.Мì` Ð ` Ð  Ðà8  à26.à0` Ð Ð à[HVI]€failed€or€refused€to€pay€Sun€Splash€in€full€for€the€work€it€provided.€Ð ˆØ ÐSuch€failure€was€done€in€bad€faith.€€Pursuant€to€the€provisions€of€TennesseeððsÐ tÄ ÐPrompt€Pay€Act€of€1991,€T.C.A.€ðð€66„34„101,€et€seq.,€Sun€Splash€sent€toÐ `° ÐAtlantic€Homestead€Village€L.P.€and€to€Homestead€Village,€Inc.€and€toÐ L œ ÐHomestead€Village,€L.P.€by€certified€mail,€return€receipt€requested,€notice€ofÐ 8 ˆ Ðits€intent€to€seek€relief€under€Tennesseeððs€Prompt€Pay€Act€of€1991.€€AllÐ $ t Ðentities€received€this€document.€€HVI€violated€the€provisions€of€this€Act€byÐ  ` Ðnot€paying€Sun€Splash€what€it€was€due€for€the€work.€€€Ðü L ` Ð ` Ð  ÐÌà  àIn€response,€HVI€denied€the€existence€of€the€oral€contract€for€$20€per€hour€plus€expenses,Ð Ô$  Ðadmitted€the€existence€of€a€written€contract€and€denied€the€allegations€of€paragraphs€25€and€26€ofÐ À  Ðthe€Complaint.׃ ×Ý ƒ#ÃÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×€€The€matter€was€set€for€trial€on€October€8,€9€and€10€of€2001.€€After€hearing€proof€andÐ ¬ü  Ðargument,€the€trial€court€rendered€its€decision€via€Memorandum€Opinion€on€December€5,€2001.€€TheÐ ˜è  Ðcourt€found€the€following€facts€which,€pursuant€to€Tenn.€R.€App.€P.€13(d),€come€to€this€CourtÐ „Ô  Ðaccompanied€by€a€presumption€of€correctness€absent€a€preponderance€of€the€evidence€to€the€contrary:Ð pÀ ÐÌà8  àà ` à1.à ¸ àSun€Splash,€a€State€of€Georgia€Corporation,€entered€into€a€SubcontractÐ H˜ Ðwith€HVI€to€perform€painting€work€on€HVIððs€Airport€Project€for€the€sum€ofÐ 4„ Ð$26,000.00.€Ð pÐ Ð  Ðà8  àà ` à2.à ¸ àSun€Splash€does€not€possess€a€Certificate€of€Authority€to€transactÐ  \ Ðbusiness€in€the€State€of€Tennessee,€nor€does€Sun€Splash€have€a€Tennessee€license€toÐ øH Ðconduct€contracting€business.€Ðä4Ð Ð  Ðà8  àà ` à3.à ¸ àHVI,€the€owner€and€contractor€prepared€and€presented€a€SubcontractÐ Ð  Ðto€Sun€Splash.€€Sun€Splash€signed€the€Subcontract€and€returned€it€to€HVI.м Ð Ð  Ðà8  àà ` à4.à0¸ Ð Ð àHVI€failed€to€return€a€signed€copy€of€the€Subcontract€to€Sun€Splash.Шø¸ Ð ¸ Ð  Ðà8  àà ` à5.à ¸ àSun€Splash€and€HVI€conducted€their€transactions€as€if€the€SubcontractÐ ”ä Ðhad€been€signed€by€both€parties.€Ð€ÐÐ Ð  Ðà8  àà ` à6.à ¸ àSun€Splash€left€the€job€site,€after€several€weeks€on€the€job,€allegingÐ l¼ Ðthat€it€had€not€been€paid€for€the€work€performed.ÐX ¨Ð Ð  Ðà8  àà ` à7.à ¸ àIn€December,€1997,€Sun€Splash€agreed€to€return€to€the€job€site€andÐ D!” Ðcomplete€the€work,€under€the€following€terms:Ð0"€ Ð Ð  Ðà8  àà ` àà ¸ à(a)€HVI€would€pay€Sun€Splash€$10,000.00€for€work€completed.Ð#l!Ð Ð  Ðà8  àà0` Ð Ð àà0¸ ` Ð ` Ð à(b)€Sun€Splash€is€due€an€allowance€of€$6,500.00€for€the€touch„upÐ $X" Ðpainting€of€interior€walls.Ðô$D #¸ Ð ¸ Ð  Ðà8  àà0` Ð Ð àà0¸ ` Ð ` Ð à(c)€The€balance€owed€to€Sun€Splash€is€$16,000.00,€plus€the€allowanceÐ à%0!$ Ðof€$6,500.00€and€a€back€charge€of€$5,000.00€for€work€performed€byÐ Ì&"% Ðâ âPR€Painting€Company.€Ð¸'#&¸ Ð ¸ Ð  Ðà8  àà0` Ð Ð àà0¸ ` Ð ` Ð à(d)€The€balance€owed€Sun€Splash€for€completion€of€the€work€inÐ ° Ðâ âBuilding€ð ðCðð€is€$17,500.00.Ðœì¸ Ð ¸ Ð  Ðà8  àà ` à8.à0¸ Ð Ð àHVI€made€a€payment€to€Sun€Splash€in€the€sum€of€$10,000.00.Јظ Ð ¸ Ð  Ðà8  àà ` à9.à ¸ àOn€March€5,€1998,€Sun€Splash€filed€a€Notice€of€Lien€Claim€in€the€sumÐ tÄ Ðof€$22,500.00,€against€the€Airport€Project.Ð`°Ð Ð  Ðà8  àà ` à10.à ¸ àWhen€Sun€Splash€filed€the€Notice€of€Lien€Claim,€the€parties€were€inÐ L œ Ðdispute€as€to€the€amount€of€money€owed€Sun€Splash.Ð8 ˆÐ Ð  Ðà8  àà ` à11.à ¸ àThe€Airport€Project€was€substantially€completed€on€December€31,Ð $ t Ð1997,€Sun€Splashððs€Cause€of€Action€was€filed€February€24,€1999,€more€than€one€(1)Ð  ` Ðyear€after€the€completion€of€the€project.€€òòTenn€Code€Annóó.€ðð66„11„106.Ðü L Ð Ð  ÐÌà  àIn€this€Memorandum,€the€trial€court€denied€Defendantððs€Motion€to€Dismiss€inasmuch€as€theÐ Ô$  Ðrecord€established€damages€of€$17,500.00,€but€granted€the€Motion€to€Dismiss€grounded€on€plaintiffððsÐ À  Ðfailure€to€obtain€a€certificate€of€authority€consistent€with€the€requirements€of€Tennessee€CodeÐ ¬ü  ÐAnnotated€section€48„25„102.Ð ˜è  ÐÌà  àOn€January€3,€2002,€Sun€Splash€filed€its€Motion€to€Alter€or€Amend€challenging€the€findingÐ pÀ Ðof€the€trial€court€stating€as€follows:Ð \¬ ÐÌà8  àà ` àAs€grounds€for€this€Motion,€and€as€more€fully€set€forth€in€the€attachedÐ 4„ Ðmemorandum€of€points€and€authorities,€Sun€Splash€would€show€this€Court€that:€€Ð pÐ Ð  ÐÌÓ  Ó*€*€*Ð øH ÐÌÓ»%Óà8  àà ` àSun€Splash€had€a€Certificate€of€Authority;€it€didnððt€introduce€it€as€evidenceÐ Ð  Ðbecause€the€burden€of€proof€was€upon€Defendants€to€show€that€Sun€Splash€did€notÐ ¼  Ðhave€a€Certificate€of€Authority,€and€Defendants€offered€no€evidence€in€that€regard.ШøÐ Ð  Ðà8  àà ` à4.à ¸ àFurthermore,€Defendantsðð€did€not€motion€the€Court€for€a€dismissal€onÐ ”ä Ðthis€basis.ЀÐÐ Ð  ÐÌà  àOn€March€18,€2002,€the€court€granted€the€Motion€to€Alter€or€Amend€in€part,€stating:Ð X ¨ ÐÌà8  àà ` àAlthough€the€Court€disagrees€with€Plaintiffððs€premise,€it€appears€that€PlaintiffÐ 0"€  Ðdid€have€a€Certificate€of€Authority.€€Accordingly,€the€Court€grants€the€motion€toÐ #l! Ðreopen€the€proof,€thereby€admitting€Plaintiffððs€Certificate€of€Authority,€a€copy€ofÐ $X" Ðwhich€was€attached€to€the€motion,€as€the€final€exhibit€in€this€matter.Ðô$D #Ð Ð  Ðà8  àà ` àThe€Court,€having€considered€the€proof,€concludes€that€a€contract€existedÐ à%0!$ Ðbetween€Sun€Splash€and€Homestead€Village€Inc.,€and€that€Plaintiff€is€entitled€toÐ Ì&"% Ðrecover€from€defendant€Homestead€Village,€Inc.€the€sum€of€$17,500.€€The€claimsÐ ¸'#& Ðagainst€the€remaining€defendants€should€be€dismissed.€Ð¤(ô#'Ð Ð  ÐÌà  àThe€statute€upon€which€Plaintiff€relied€at€trial€for€the€recorvery€of€attorneyððs€fees€provides:Ð |*Ì%) Ðð ðReasonable€attorneyððs€fees€may€be€awarded€against€the€non„prevailing€party;€provided,€that€suchÐ h+¸&* Ðnon„prevailing€party€has€acted€in€òòbad€faith€óóTenn.Code€Ann.€ðð€66„34„602(b)(1991)ðð€(emphasisÐ ° Ðadded).€€The€existence€of€bad€faith€is€a€question€of€fact.€€òòSee€Tennessee€Farmerððs€Mutual€Ins.€Co.Ð œì Ðv.€Thompsonóó,€12€Tenn.€App.€591€(1930).€€Once€determined€this€factual€finding€is€accompanied€withÐ ˆØ Ða€presumption€of€correctness€and€will€not€be€overturned€on€appeal€absent€a€preponderance€ofÐ tÄ Ðevidence€to€the€contrary.€€Tenn.€R.€App.€P.€13(d)€òòCarrington€v.€W.A.€Socfker€&€Son,€Inc.óó,€624Ð `° ÐS.W.2d€894,€895€(Tenn.Ct.App.1981).€€€Nonetheless,€Appellant€argues€that,€regardless€of€theÐ L œ Ðdisparity€of€damages€attested€to€by€its€own€witnesses,€since€the€appellee€acknowledged€liability€atÐ 8 ˆ Ðleast€to€the€extent€of€$17,500.00,€any€claim€pressed€by€the€appellee€is€by€definition€bad€faith.€€TheÐ $ t Ðtestimony€that€Sun€Splashððs€representatives€presented€to€the€trial€court€shows€that,€while€there€didÐ  ` Ðexist€a€contract€between€the€parties,€by€the€time€Sun€Splash€began€pressing€its€claim,€the€actualÐ ü L  Ðamount€due€under€the€contract€was€confused€primarily€by€Sun€Splashððs€own€actions.€€Prior€to€theÐ è 8  Ðfiling€of€the€Complaint,€Sun€Splash€had€already€agreed€that€HVI€was€due€$5,000.00€for€correctiveÐ Ô$  Ðmeasures€taken€by€HVI€and€its€other€subcontractor€P.R.€Painting,€Inc.€€In€addition,€prior€to€theÐ À  ÐComplaint,€Sun€Splash€had€admitted€receiving€$10,000.00€that€had€been€past€due€under€the€contract.€Ð ¬ü  ÐThe€trial€court€found€specifically€that€there€was€a€dispute€between€the€parties€as€to€the€amount€dueÐ ˜è  Ðunder€the€construction€contract.€€Implied€in€this€factual€finding€is€the€determination€that€such€disputeÐ „Ô  Ðwas€not€in€bad€faith.€€The€record€does€not€preponderate€against€that€finding:€€This€Court€accordinglyÐ pÀ Ðaffirms€the€trial€courtððs€refusal€to€award€attorneyððs€fees.€€The€award€of€pre„judgment€interest€is€aÐ \¬ Ðmatter€well€within€the€discretion€of€the€trial€court€and€will€not€be€overturned€on€appeal€absent€aÐ H˜ Ðshowing€of€an€abuse€of€that€discretion.€€òòSeeóó€e.g.€òòMyint€v.€Allstate€Ins.€Co.óó,€970€S.W.2d€920,€927Ð 4„ Ð(Tenn.1998);€Tenn.€Code€Ann.€ðð€47„14„123€(2001).€€Inasmuch€as€no€bad€faith€appears€in€the€record,Ð  p Ðthe€trial€court€did€not€abuse€its€discretion€in€refusing€to€award€interest.€Ð  \ ÐÌà  àWe€affirm€the€trial€court€in€all€respects€and€remand€this€case€for€further€proceedings€asÐ ä4 Ðnecessary.€Costs€on€appeal€are€taxed€against€Appellant€for€which€execution€may€issue.Ð Ð  ÐÌÌÌÌÌÌà  àà ` àà ¸ àà  àà h àà À àà  à___________________________________€Ð D!” Ðà  àà ` àà ¸ àà  àà h àà À àà  àWILLIAM€B.€CAIN,€JUDGE