ÿWPCç uØLZäR‘³SVrD;ol'”ùJþ!’^^8 (­ú}…ú6 ô.0mÒ½_¤ñ llinT»vgÉ,á÷Sæšœ/al¶r]mvÿwu0l ´º¨„ë-L@§(ŒFV1=ð¤W ,O‹ÞBK¿ p=NÁ-•”[èKÛ3Û¥“´‰ßÅÊ3¥ý#Lâæœ~Å- ÛÆïÁUž÷‡EÒä·˜Òä³»L¬zÎÂ|"'È>ì@uwwÇ{†Y[ô3‹©6˜rú0A«§ˆTtÇ–AŠ©›A9@¢Èj<—çh¥Ôúa¤tÀLãN¶SZâžz"´&Šø˜C­¤RÐK“XšttW†’TÚßä ݤž»ý =ò,z}¥±šè)Üï§³b#Á\ % ^ # 0ˆ/ UN· w 4 z Ò— i x mz 0D‘ ÆÕ Æ› Æa Æ'UNíN;UN=O‹EÚÚÚÚÚÚÚÚÚÚÚÚÚÚÚÚÚÚÚÚÚÚÚÚbÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜ 0ëääää BÏÏ 0¤ì D3 D-à 0Kðð AS;ÆŽ 0¤T 0Dø A«<˜HP LaserJet 4050 Series PCL 6ÈÈ,,,,ÈÈ0»[oH-s (`£ª$¡¡Ñ€.ÑÑ8€½­»»d»»d8ÑÑ ý ÑÓ  Ó(í€"  Z6Times New Roman Regularš‚,-00¸€¥ ˜C:\PROGRA~1\COREL\WORDPE~1\TEMPLATE\CUSTOM~1\REVISE~1.WPTC:\Program Files\Corel\WordPerfect Office 2000\Template\Custom WP Templates\revised standard opinion.wpt3|xÿU‹ÿÀÀÀ(#Ã$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 Regular EÝ ƒR,Ù$ÝÓ  Óà  àòòÚ  Ú1Ú  ÚóóÔ€ôáÝò»»ÔÝ  ÝÔ_ÔPowellsðð€oral€motion€to€amend€made€at€the€beginning€of€trial€requested€leave€to€add€the€defenses€of€mutualÐ ° Ðmistake,€misrepresentation,€and€fraudulent€inducement.€€In€denying€the€motion,€the€trial€court€stated,€ð ðI€think€you€alreadyÐ tÄ Ðð!ð€if€I€recall,€your€answer,€you€already€alleged€mutual€mistake.ðð€€Counsel€for€Powells€responded,€ð ðOkay.€€But€also€I€thinkÐ 8ˆ Ðfraud€or€misrepresentation€need€to€be€added€to€that€just€out€of€precaution.ðð€€The€answer€did€not€include€a€defense€ofÐ üL Ðmistake€however,€although€the€court€initially€operated€under€the€belief€that€it€did.€€Any€error€which€might€have€resultedÐ À Ðfrom€this€belief€was€avoided,€however,€as€the€court€subsequently€specifically€granted€leave€to€amend€to€include€theÐ „Ô Ðdefense€of€mistake.€€The€court€stated,€ð ðWell,€I€think€Iððll€allow€you€to€amend€to€include€it€[mutual€mistake].ðð€- ù-(|G2,Ù$¤¤Ý ƒ£ª!ÝÑ€.ÑÑ8€Xå»»dXXdì8ÑÑ ý ÑÓ  ÓÝ  Ýà  àòòÚ  Ú0Ú  ÚóóÔ€ôáÝò»»Ô d(|3 l$££Ý ƒ£ª!ÝÑ€.ÑÑ8€Xå»»dXXdì8ÑÑ ý ÑÓ  ÓÝ  ÝVVVV'ÿÿdxd)!ÈÈÈÈdxdx( ±þ$’’ò òFigure€Ú  Ú1Ú  Úó ó^_X`YEþÿ<<CÿÿƒLevel 1Level 2Level 3Level 4Level 5(|3 l$¢¢Ý ƒ£ª!ÝÑ€.ÑÑ8€Xå»»dXXdì8ÑÑ ý ÑÓ  ÓÝ  Ý($$””ò òÚ  Ú1Ú  Úó óX[Z&OLE 2.0 Box <=8ÿÿÿÿÿÿÿÿÿÿCÿÿ HKKKKÝ ƒ£ª!ÝÑ€.ÑÑ8€Xå»»ddÈ8ÑÑ ý ÑÓ  ÓÝ  ÝÔ_ÔÑ  ÑÔ€¼Xå»»»ÔÑ8€YXXdì»»d8ÑÑ  Ñà@ü ü ìàÔ‡îW4XåÔIN€THE€COURT€OF€APPEALS€OF€TENNESSEEˆÐ ° Ðà@kk$ìàAT€NASHVILLEÔ#†¼Xå»îîW4 #ԈРÖ& ÐÓ  ÓAugust€7,€2002€SessionÐ üL ÐÔ‡XYX»¼XåÔÌò òÔ#†¼Xå»XXYó#ÔTEXTRON€FINANCIAL€CORPORATIONòòóó€v.€ELAINE€E.€POWELL,€òòet€alóó.Ô‡XYX»¼XåÔó óÐ úJ ÐÌà@@½½ìàò òDirect€Appeal€from€the€Circuit€Court€for€Davidson€CountyÐ ú J Ðà@@øøìàNo.€98C„2652€€€€€€Walter€C.€Kurtz,€JudgeÐ æ 6 ÐÌÌà@@ìì*ìàßA€V) °°` d€÷E<©` AßÐ ªú  ÐÌà@@TTìàNo.€M2001„02588„Ô_ÔCOAÔ_Ô„R3„CV€„€Filed€October€8,€Ô_Ô2002Ô_ÔÐ ¥õ  ÐÌßA€V) °°` dE<|` AßÐ }Í  Ðó óÌÓ  ÓÔ‡XYXXXYÔThis€dispute€arises€out€of€a€personal€guaranty€executed€by€the€defendants€securing€a€loan.€FollowingÐ xÈ  Ða€trial€by€jury,€the€court€below€awarded€the€plaintiff€$68,330€in€damages€plus€attorneyððs€fees€andÐ d´ Ðcosts.€€On€appeal,€the€defendants€contend€that€the€court€below€erred€in€applying€the€parol€evidenceÐ P  Ðrule€to€evidence€which€would€show€mistake€and€in€not€permitting€the€defendants€to€amend€theirÐ <Œ Ðanswer.€€We€reverse€the€judgment€entered€below€and€remand€for€a€new€trial.Ð (x ÐÌò òÓÅÓÔ#†XYXXXYÑ#ÔÔ#†¼Xå»XXY~#ÔÔ‡XYX»¼XåÔTenn.€R.€App.€P.€3€Appeal€as€of€Right;€Judgment€of€the€Circuit€Court€Reversed;€andÐ P ÐRemandedó óÐ ì< ÐÌòòÓ  ÓÔ#†¼Xå»àXY†#ÔÔ‡XYX.¼XåÔDavid€R.€Farmer,€J.óó,€delivered€the€opinion€of€the€court,€in€which€òòW.€Frank€Crawford,€P.J.,€W.S.,óóÐ Ä Ðand€òòHolly€K.€Lillard,€J.óó,€joined.Ð ° ÐÌStephen€C.€Knight,€Nashville,€Tennessee,€for€the€appellants,€Elaine€E.€Powell€and€John€E.€Powell.Ð ˆØ ÐÌMelissa€Blackburn,€Nashville,€Tennessee,€for€the€appellee,€Textron€Financial€Corporation.Ð `° ÐÓ0ÓÌò òOPINIONó óÔ#†¼Xå»XXY_#ÔÔ‡XYX»¼XåÔÐ 8!ˆ  ÐÌÔ#†¼Xå»XXY_ #ÔÓ  ÓÔ€XYX»¼XåÔÔ‡XYXXXYÔò òó óà  àIn€1995,€Textron€Financial€Corp.€(Textron),€entered€into€an€agreement€with€Ô_ÔSBTÔ_Ô,€Inc.€(Ô_ÔSBTÔ_Ô),Ð #`" Ðto€consolidate€financing€of€several€pieces€of€trucking€equipment.€€The€equipment€was€in€theÐ ü#L# Ðpossession€of€Royal€Transport€(Royal),€which€began€making€the€loan€payments€to€Textron.€€In€1997,Ð è$8 $ ÐTrailer€Lease€purchased€the€equipment€from€Royal,€and€Textron€and€Trailer€Lease€(Elaine€Powell,Ð Ô%$!% Ðpresident)€entered€into€a€security€agreement€with€Textron€securing€a€$183,993.73€installment€note.€Ð À&"& ÐCollateral€securing€the€note€included€several€vehicles,€a€tractor€and€several€trailers.€€John€and€ElaineÐ ¬'ü"' ÐPowell€(the€Ô_ÔPowellsÔ_Ô)€executed€personal€guarantees€on€the€note.€€The€1997€transaction€included€aÐ ˜(è#( Ðdisbursement€by€Textron€to€itself€of€$156,427.54€of€the€$183,993.73€note.€€The€additional€$27,993Ð „)Ô$) Ðrepresents€interest€on€the€1997€note€collected€in€advance.€€The€Ô_ÔPowellsÔ_Ô€paid€$104,000€on€the€noteÐ p*À%* Ðand€stopped€making€payments€after€June€of€1998.€€In€September€of€1998,€Textron€filed€a€complaintÐ \+¬&+ Ðagainst€the€Ô_ÔPowellsÔ_Ô€to€enforce€the€guarantee€agreement,€alleging€Trailer€Lease€had€defaulted€on€theÐ H,˜', Ð1997€note.€€Textron€prayed€for€damages€of€$72,854,40.€€Ð 4-„(-ý Їà  àThe€Ô_ÔPowellsÔ_Ô€contend€that€the€note€had€been€paid€in€full.€€They€submit€that€the€1997Ð ° Ðagreement€with€Textron€was€to€refinance€the€equipment€for€the€amount€due€on€the€1995€note,€andÐ œì Ðthat€Textron€represented€that€the€amount€outstanding€on€the€1995€note€was€$156,427.54.€€TheyÐ ˆØ Ðfurther€contend€that€the€distribution€of€this€amount€from€proceeds€of€the€1997€note€by€Textron€toÐ tÄ Ðitself€was€intended€to€pay€off€the€1995€note.€€The€Ô_ÔPowellsÔ_Ô€allege€that€Textron€mistakenly€representedÐ `° Ðthe€amount€due€on€the€1995€note,€and€that€the€actual€amount€due€was€$80,000.€€€They€accordinglyÐ L œ Ðargue€that€because€the€outstanding€amount€on€the1995€note€was€only€$80,000,€the€remaining€sumsÐ 8 ˆ Ðpaid€by€Trailer€Lease€should€have€been€applied€against€the€principal€under€the€terms€of€the€loanÐ $ t Ðagreement.€€The€disbursement€sheet,€which€was€signed€by€the€Ô_ÔPowellsÔ_Ô,€does€not€indicate€the€amountÐ  ` Ðdue€on€the€1995€note€or€for€what€purpose€the€$156,427.54€disbursement€was€made.€€Textron€doesÐ ü L  Ðnot€dispute€that€proceeds€from€the€1997€note€included€amounts€to€ð ðclose€outðð€the€1995€note,€butÐ è 8  Ðsubmits€that€the€disbursement€sheet€is€silent€as€to€how€the€sums€were€to€be€disbursed.Ð Ô$  ÐÌà  àThe€trial€court€refused€to€admit€evidence€of€how€much€was€due€on€the€1995€note€or€of€howÐ ¬ü  ÐTextron€disbursed€the€$156,427.54€to€itself.€€The€court€concluded€that€the€written€agreement€betweenÐ ˜è  ÐTextron€and€the€Ô_ÔPowellsÔ_Ô€was€unambiguous€on€its€face,€and€that€the€parol€evidence€rule€thereforeÐ „Ô  Ðoperated€to€exclude€extrinsic€evidence€to€vary€the€contract.€Regarding€the€possibility€of€mistake,€theÐ pÀ Ðcourt€stated,€Ð \¬ ÐÌà8  à[Ô_Ôo]fÔ_Ô€course€plaintiff€contends€that€there€was€no€mistake.€€Therefore,€evidenceÐ 4„ Ðshowing€that€the€refinanced€amount€was€ððwrongðð€was€not€admissible€to€impeach€theÐ  p Ðsigned€documents,€despite€Mr.€and€Ms.€Ô_ÔPowell[sÔ_Ôðð]€insistence.€.€.€.€€There€is€no€proofÐ  \ Ðhere€that€the€plaintiff€or€its€agents€entered€into€the€contract€based€upon€any€mistake.€ÐøHÐ Ð  ÐÌThe€court€also€declined€to€grant€Ô_ÔPowellsÔ_Ôðð€oral€motion,€made€on€the€morning€of€trial,€to€amend€theirÐ Ð  Ðanswer€to€include€the€affirmative€defenses€of€misrepresentation€and€fraudulent€inducement.€€€Ð ¼  ÐÌà  àThe€cause€was€heard€by€a€jury€in€June€of€2001.€€The€jury€awarded€Textron€damages€ofÐ ”ä Ð$68,330,€reducing€the€amount€demanded€by€Textron€based€upon€proof€that€Textron€had€failed€toÐ €Ð Ðentirely€mitigate€its€damages.€€Textron€was€also€awarded€$22,000€in€attorneyððs€fees€and€costs.€€TheÐ l¼ ÐÔ_ÔPowellsÔ_Ôðð€motion€for€a€new€trial,€and€Textronððs€motion€for€judgment€in€accordance€with€its€motionÐ X ¨ Ðfor€directed€verdict€or,€in€the€alternative,€an€Ô_ÔadditurÔ_Ô,€were€denied.€€Appeal€to€this€Court€ensued.€Ð D!” Ðò òÌÓ  ÓòòIssuesó óÐ #l! ÐÓ  ÓÌà  àóóThe€issues€raised€by€the€Ô_ÔPowellsÔ_Ô€for€our€review,€as€we€perceive€them€are:Ð ð$@ # ÐÌà8  àI.à ` àWhether€the€trial€court€erred€in€its€application€of€the€parol€evidence€ruleÐ È&"% Ðwhen€it€excluded€evidence€regarding€the€amount€due€on€the€1995€note€andÐ ´'#& Ðevidence€of€how€Textron€disbursed€$156,427.54€of€proceeds€from€the€1997€noteÐ  (ð#' Ðto€itself.€ÐŒ)Ü$(Ð Ð  Ðâ âÐ x*È%) Ðà8  àII.à ` àWhether€the€trial€court€erred€in€denying€Ô_ÔPowellsÔ_Ôðð€request€to€amend€theirÐ ° Ðâ âanswer€to€include€the€defense€of€fraudulent€inducement.МìÐ Ð  ÐÌÓÙÓÓ  Óò òó óà  àTextron€raises€the€additional€issue€of€whether€the€trial€court€erred€in€denying€its€amendedÐ tÄ Ðmotion€for€judgment€in€accordance€with€a€motion€for€a€directed€verdict€or,€in€the€alternative,€forÐ `° Ðan€Ô_ÔadditurÔ_Ô.Ð L œ ÐÌÓ  Óò òòòStandard€of€Reviewó óÐ $ t ÐÓF#ÓÌà  àóóThe€issues€presented€for€our€review€in€this€case€are€issues€of€law.€€Our€review€of€the€trialÐ ø H  Ðcourtððs€conclusions€of€law€in€a€jury€trial€is€ò òòòde€novo€óóó óupon€the€record,€with€no€presumption€ofÐ ä 4  Ðcorrectness.€€Ô#†XYXXXYâ #ÔÔ‡XYXXXYÔTenn.€R.€App.€P.€13(d)Ô#†XYXXXYÅ$#ÔÔ‡XYXXXYÔ;€òòò òCampbell€v.€Florida€Steel€Corpó óóó.,€919€S.W.2d€26,€28€(Tenn.Ð Ð  Ð1996).Ð ¼  ÐÌÓ  Óò òòòDenial€of€the€Ô_ÔPowellsÔ_Ôðð€Motion€to€Amend€Their€Answeró óÐ ”ä  ÐÓ´%ÓÌà  àóóWe€first€address€the€issue€of€whether€the€trial€court€erred€when€it€refused€the€Ô_ÔPowellsÔ_ÔððÐ h¸ Ðmotion€to€amend€their€answer€to€include€a€defense€of€fraudulent€inducement.€€The€TennesseeÐ T¤ ÐRules€of€Civil€Procedure€provide:Ð @ ÐÌà8  àà ` àA€party€may€amend€the€partyððs€pleadings€once€as€a€matter€of€course€at€anyÐ h Ðtime€before€a€responsive€pleading€is€served€or,€if€the€pleading€is€one€to€which€noÐ T Ðresponsive€pleading€is€permitted€and€the€action€has€not€been€set€for€trial,€the€partyÐ ð@ Ðmay€so€amend€it€at€any€time€within€15€days€after€it€is€served.€€Otherwise€a€partyÐ Ü, Ðmay€amend€the€partyððs€pleadings€only€by€written€consent€of€the€adverse€party€orÐ È Ðby€leave€of€the€court;€and€leave€shall€be€freely€given€when€justice€so€requires.€€Ð´Ð Ð  ÐÌTenn.€R.€Civ.€P.€15.01Ð ŒÜ ÐÌà  àThis€rule€mandates€that€motions€to€amend€shall€be€liberally€granted€unless€theÐ d´ Ðamendment€would€result€in€an€injustice€to€the€opposing€party€or€is€irrelevant€to€any€claim€orÐ P   Ðdefense.€€òòò òWalden€v.€Wylieó óóó,€645€S.W.2d€247,€250€(Tenn.€Ct.€App.€1982).€òòò òó óóó€Factors€which€wouldÐ