ÿWPC ^T‹­häÄÙ±¨X¾±ö6d$ä~3ç„pBŸK r¢sBDeUT@Ðɺý/¢õÛæúÑ ³‰3v÷}ƒ4±ïÕÒVS¹†>BÒÒ Ôeò?ÁrýÑËÛÉî>´²joF-íÒ´uq+ÇG• êEâÇêu¹±TØÀ:'7æ7“B¹4ÿ¸ }ðËÏ6К-/q“Ü&uwþ‚ƒºÏý9»_ˆš¦ðA0Äñ|EפßúK5ÖxÍXûÐ,ãñƒŒhEÇ­}€•ÔVœV‡¯5¾86Ó~1wsÔë‰4Óx!Åt5Ya«9´¼Tê¿n¤¬ V˜¢Ê6±×\7纒sáÇ­U·Ýíáxú]äé™…O k}ÊÓ#C¼öÃßåů2<’“ÌÇ=ëF”eÿwý¦}uŒÖív'Ù†»pĘ€E®Z¬ZÄMUÆü‰'M™ŽºÙçŸÛÈ·–SHHuHåÕ…„ªa¬µ:ݧ’јë LòVl¥äáb¸…£VThGæ šƒÈGˆÌuÏ‚ê*âFŽqm>û‘Cw±⺋ôR ]ìà ãRÒ}”.·Ð4ÐÜë±ìS®Xxù¬÷}uƒæÜ±ƒ6¤½Ë<}²¦ûÖŽo»Û‹ž D´Xb#Á\ % UN# 0ˆq UNù ^ G wS zW ÒÑ 4£ · Æ mÈ Æß Æ¥ Æk Æ11N÷÷÷Eùùùùùùùùùùùùùùùùùùùùùùùùbûûûûûûûûûûûûûûûûûûûûûûûûûûûûûûûûûûûû 0ë Bîî 0¤  D5¯ D-ä 0K AS\Ư 0¤u 0D A«]˜HP LaserJet 4,ü,,,,,ü0»(ÖÃ9 Z‹6Times New Roman Regular(`£ª$¡¡Ñ€.ÑÑ8€½­»»d»»d8ÑÑ ý ÑÓ  Ó(í€"  Z6Times New Roman RegularÒ…D)L  ˜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.wpt˜L-(2Æx€TcaTC3|xÿU‹ÿÀÀÀLevel 1Level 2Level 3Level 4Level 5‚Level 1Level 2Level 3Level 4Level 5„Level 1Level 2Level 3Level 4Level 5…Level 1Level 2Level 3Level 4Level 5- ù-(|G2!f$¤¤Ý ƒ£ª!ÝÑ€.ÑÑ8€¦\»»dd8ÑÑ ý ÑÓ  ÓÝ  Ýà  àòòÚ  Ú0Ú  ÚóóÔ€ôÒ„ò»»Ô d(|3A$££Ý ƒ£ª!ÝÑ€.ÑÑ8€¦\»»dd8ÑÑ ý ÑÓ  ÓÝ  ÝVVVV)ÿÿ!dxdx)!ÈÈÈÈdxdx( ±þ$’’ò òFigure€Ú  Ú1Ú  Úó ó^_X`YEþÿ<<CÿÿƒLevel 1Level 2Level 3Level 4Level 5(|3A$¢¢Ý ƒ£ª!ÝÑ€.ÑÑ8€¦\»»dd8ÑÑ ý ÑÓ  ÓÝ  Ý($$””ò òÚ  Ú1Ú  Úó óX[Z&OLE 2.0 Box <=8ÿÿÿÿÿÿÿÿÿÿCÿÿ HKKKKÝ ƒ£ª!ÝÑ€.ÑÑ8€º¤»»ddÈ8ÑÑ ý ÑÓ  ÓÝ  ÝÔ_ÔÑ  ÑÔ€¼º¤»»»ÔÑ8€«sXXdð»»d8ÑÑ  Ñà@ü ü ìàÔ‡îáwº¤ÔIN€THE€COURT€OF€APPEALS€OF€TENNESSEEˆÐ ° Ðà@õõ%ìàAT€JACKSONÔ#†¼º¤»îîáw #ԈРÜ, ÐÓ  ÓMAY€16,€2000€SessionÐ X ÐÔ‡X«sX»¼º¤ÔÌò òÔ#†¼º¤»XX«sï#ÔREBECCA€COLE„TURNER€and€JUDY€SMITHòòóó€v.€CHRISTIANÐ  ` ÐPSYCHOLOGICAL€CENTERòòóóÔ‡X«sX»¼º¤Ôó óÐ ( x ÐÌò òDirect€Appeal€from€the€Chancery€Court€for€Shelby€CountyÐ 0 € Ðà@@øøìàNo.€102122„2;€€The€Honorable€Floyd€Ô_ÔPeeteÔ_Ô,€ChancellorÐ  p ÐÌÌà@@ìì*ìàßA€V) °°` d€÷E<ï` AßÐ ð@  ÐÌà@@TTìàNo.€W1999„00707„Ô_ÔCOAÔ_Ô„R3„CV€„€Filed€October€4,€2000Ð ï?  ÐÌßA€V) °°` dE<Î` AßÐ Ï Ðó óÌÓ  ÓÔ‡X¾XXX«sÔThis€appeal€involves€a€dispute€over€money€Plaintiffs€paid€into€a€reserve€fund€while€they€wereÐ Î Ðemployed€by€Defendant€Christian€Psychological€Center.€€Plaintiffs€believed€that€the€money€theyÐ º  Ðcontributed€to€the€fund€would€later€be€refunded.€€However,€when€Plaintiffs€resigned€from€the€CenterÐ ¦ö Ðand€requested€that€the€money€be€returned,€the€Center€refused€to€return€the€money.€€The€ChanceryÐ ’â ÐCourt€held€that€Plaintiffs€might€be€entitled€to€a€refund€of€a€portion€of€monies€that€they€had€paid€intoÐ ~Î Ðthe€reserve€fund€if€the€funds€were€not€used€by€Defendant€for€ordinary€and€necessary€operatingÐ jº Ðexpenses.€€The€Chancery€Court€then€referred€the€case€to€a€Special€Master€for€a€determination€of€howÐ V¦ Ðthe€funds€were€spent€by€the€Center.€€The€Special€Master€held€that€the€Plaintiffs€were€not€entitled€toÐ B’ Ða€refund,€as€the€Defendant€Center€used€the€reserve€funds€for€ordinary€and€necessary€operatingÐ .~ Ðexpenses.€€For€the€reasons€stated€hereafter,€we€affirm.Ô#†X«sXXX¾å#ÔÔ#†¼º¤»XX«s™#ÔÔ‡X«sX»¼º¤ÔÐ j ÐÓÙÓÌò òTenn.€R.€App.€P.€3;€Appeal€as€of€Right;€Judgment€of€the€Chancery€Court€Affirmedó óÐ öF ÐÌòòÓ  ÓÔ#†¼º¤»àX«s¤ #ÔÔ‡X«sX.¼º¤ÔAlan€E.€Highers,€J.óó,€delivered€the€opinion€of€the€court,€in€which€òòCrawford,€P.J.,€W.S.,óó€andÐ Ö& ÐòòLillard,€J.óó,€joined.Ð Æ  ÐÌFrank€Ô_ÔDeslauriersÔ_Ô,€Covington,€for€AppellantsÐ ¦"ö! ÐÌStephen€H.€Ô_ÔBillerÔ_Ô,€Memphis,€for€AppelleeÐ †$Ö# ÐÓW ÓÌò òOPINIONó óÔ#†¼º¤»XX«s† #ÔÔ‡X«sX»¼º¤ÔÐ f&¶!% ÐÌòòóóÔ#†¼º¤»XX«sN #ÔÔ‡X«sX»¼º¤ÔÓ  Óò òÔ‡X¾XXX«sÔà@ÿÿìàFacts€and€Procedural€HistoryòòˆÐ F(–#' Ðó óóóÓ  ÓÌÓ  Óà  àThe€Plaintiffs€in€this€case,€Rebecca€Cole€Turner€and€Judy€Smith,€were€employed€by€theÐ *n%) ÐDefendant€Christian€Psychological€Center€as€staff€psychologists.€€Dr.€Cole€Turner€began€herÐ  +Z&* Ðemployment€in€August€of€1987€and€Dr.€Smith€began€in€1984.€Prior€to€April€of€1988,€staffÐ ö+F'+ Ðpsychologists€at€the€Center€were€paid€based€upon€their€billable€hours,€and€they€were€also€eligible€forÐ â,2(, Ðbonuses.€€€This€compensation€structure,€however,€led€to€a€revenue€shortfall€at€the€Center.€Ð Î-)-ý Їà  àDue€to€the€revenue€shortfall€caused€by€the€old€compensation€structure,€a€new€system€wasÐ ° Ðdevised€in€April€of€1998€whereby€each€psychologist€at€the€Center€was€required€to€pay€into€aÐ œì Ðð ðreserveðð€or€ð ðcontingencyðð€fund.€€€The€ð ðreserveðð€or€ð ðcontingencyðð€fund€was€designated€to€provideÐ ˆØ Ðfor€anticipated€operating€expenses.€€At€first,€from€April€1988€through€June€1989,€each€psychologistÐ tÄ Ðat€the€Center€was€required€to€pay€$1,000.00€per€month€into€the€reserve€fund.€€€Later,€the€monthlyÐ `° Ðamount€psychologists€were€required€to€pay€into€the€reserve€fund€was€reduced€to€$400.00€from€JulyÐ L œ Ð1989€through€December€1989€and€finally€to€$250.00€from€January€1990€through€December€1991.€Ð 8 ˆ ÐÌà  àPlaintiffs€Turner€and€Smith€claim€to€have€been€under€the€impression€that€the€monies€in€theÐ  ` Ðreserve€fund€would€be€refundable.€€€As€a€result,€when€Plaintiffs€Turner€and€Smith€submitted€theirÐ ü L  Ðresignations€on€September€13,€1991,€Plaintiffs€asked€for€a€return€of€all€amounts€they€had€paid€intoÐ è 8  Ðthe€reserve€fund.€€€The€Defendant€informed€the€Plaintiffs€that€the€monies€paid€into€the€reserve€fundÐ Ô$  Ðwere€not€refundable.€Ð À  ÐÌà  àThe€Plaintiffs€brought€suit€in€Chancery€Court€in€Shelby€County€claiming€that€they€wereÐ ˜è  Ðentitled€to€recover€monies€that€they€had€paid€into€the€reserve€fund.€€€At€the€conclusion€of€trial,€theÐ „Ô  Ðchancellor€determined€that€each€Plaintiff€had€paid€$22,000.00€into€the€reserve€fund.€€The€ChancellorÐ pÀ Ðfurther€found€that€the€Plaintiffs€were€not€entitled€to€recover€the€first€$7,500.00€of€the€money€paid€intoÐ \¬ Ðthe€reserve€fund.€€The€trial€court€also€determined€that€there€was€a€unilateral€mistake€on€the€PlaintiffððsÐ H˜ Ðpart€and€that€the€Plaintiffs€might€be€entitled€to€some€recovery.€€€However,€the€trial€court€found€thatÐ 4„ ÐPlaintiffs€would€not€be€entitled€to€any€recovery€if€the€Defendant€Center€could€show€that€the€fundsÐ  p Ðwere€spent€on€necessary€operating€expenses.€€€The€trial€court€referred€the€case€to€a€Special€MasterÐ  \ Ðfor€a€determination€of€how€the€reserve€fund€monies€were€spent.€€€Specifically,€the€court€directed€theÐ øH ÐMaster€to€examine€the€difference€between€the€$7,500.00€and€the€$22,000.00€paid€by€each€PlaintiffÐ ä4 Ðinto€the€reserve€fund.€€€The€parties€appeared€before€the€Special€Master€on€March€10,€1998.€€€TheÐ Ð  ÐSpecial€Master€determined€that€the€Plaintiffs€were€not€entitled€to€a€refund€because€the€money€paidÐ ¼  Ðinto€the€reserve€fund€was€used€for€the€ordinary€and€necessary€expenses€associated€with€operating€theÐ ¨ø ÐCenter.€€On€July€14,€1998,€the€trial€court€entered€its€Order€confirming€the€findings€of€the€SpecialÐ ”ä ÐMaster,€and€judgment€for€the€Defendant€Center€was€entered€on€September€17,€1999.€Ð €Ð ÐÌà  à€On€appeal,€Appellants€present€the€following€issues€for€our€review:€1)€whether€the€trial€courtÐ X ¨ Ðerred€in€referring€the€matter€of€damages€to€a€Special€Master€after€the€trial€court€found€that€aÐ D!” Ðunilateral€mistake€had€occurred;€and€2)€whether€the€trial€court€erred€by€failing€to€find€that€theÐ 0"€  ÐDefendant€was€guilty€of€negligent€misrepresentation.Ð #l! ÐÌÓ  Óò òStandard€of€Reviewó óÐ ô$D # ÐÌÓ  Óà  àSince€the€trial€court€referred€certain€matters€to€the€Special€Master,€our€standard€of€review€onÐ Ì&"% Ðappeal€is€affected.€€A€concurrent€finding€of€a€master€and€a€trial€court€is€conclusive€on€appeal,€exceptÐ ¸'#& Ðwhere€it€is€upon€an€issue€not€proper€to€be€referred,€where€it€is€based€on€an€error€of€law€or€a€mixedÐ ¤(ô#' Ðquestion€of€fact€and€law,€or€where€it€is€not€supported€by€any€material€evidence.€€See€€òòCoates€v.Ð )à$( Ðâ âThompsonóó,€713€S.W.2d€83,€84€(Tenn.€Ct.€App.€1986).€€This€standard€of€review€is€similar€to€ourÐ |*Ì%) Ðstandard€when€reviewing€a€jury€verdict.€€We€must€affirm€if€there€is€any€material€evidence€to€supportÐ ° Ðthe€trial€courtððs€concurrence.€€òòSee€idóó;€òòsee€alsoóó€€Ô_ÔT.R.A.P.Ô_Ô€13(d).Ð œì Ðâ âÌÓ  Óò òAnalysisó óÐ tÄ ÐÌÓ  Óà  àFirst,€the€appellants€assign€error€in€that€the€trial€court€referred€the€matter€of€damages€to€aÐ L œ ÐSpecial€Master€after€the€trial€court€found€that€a€unilateral€mistake€had€occurred.€€We€find€thisÐ 8 ˆ Ðargument€to€be€without€merit.€€In€òòArcher€v.€Archeróó,€907€S.W.2d€412,€415„416€(Tenn.€Ct.€App.€1995),Ð $ t Ðthis€court€stated€that€the€main€issue€of€a€controversy€and€the€principles€on€which€these€issues€wereÐ  ` Ðto€be€adjudicated€should€be€determined€by€the€court,€and€that€subordinate€and€incidental€issues€andÐ ü L  Ðthe€determination€of€ancillary€facts€are€matters€properly€to€be€referred€to€a€Special€Master.€€In€theÐ è 8  Ðcase€òòsub€judiceóó,€the€Chancellor€decided€the€main€issue€of€controversy;€whether€the€plaintiffs€wereÐ Ô$  Ðentitled€to€any€refund€of€monies€that€they€had€contributed€to€the€Centerððs€reserve€fund.€€Only€afterÐ À  Ðthe€Chancellor€found€that€the€plaintiffs€òòmightóó€be€entitled€to€a€refund€depending€on€how€the€CenterÐ ¬ü  Ðused€the€monies€from€the€reserve€fund€did€the€Chancellor€direct€the€Master€to€examine€the€ancillaryÐ ˜è  Ðissue€of€accounting.€€Specifically,€the€court€ordered€the€Master€to€determine€how€the€monies€fromÐ „Ô  Ðthe€reserve€fund€were€spent.€€The€Chancellor€stated€in€his€order€of€reference€to€the€Master,€ð ðTheÐ pÀ ÐCourt€is€of€the€opinion€that€if€Defendant€can€show€that€the€funds€were€spent€as€necessary€expenseÐ \¬ Ðof€operations,€there€will€not€be€any€recovery.€.€.€.ðð€€€After€the€Special€Master€heard€the€matter,€heÐ H˜ Ðstated€in€his€ruling,€ð ðit€is€therefore€the€finding€of€the€Special€Master€that€the€funds€collected€by€theÐ 4„ ÐDefendant€were€spent€as€ordinary€and€necessary€expenses€of€operations€of€the€ChristianÐ  p ÐPsychological€Center.ðð€€€It€is€our€opinion€that€the€accounting€issue€was€an€ancillary€matter€properlyÐ  \ Ðreferred€to€the€Special€Master.€€Moreover,€the€Special€Master€did€not€go€beyond€the€trial€courtððsÐ øH Ðorder€of€reference€in€his€decision.€€As€a€result,€we€must€affirm€the€finding€of€the€Special€Master€thatÐ ä4 Ðall€monies€contributed€by€Plaintiffs€to€the€reserve€fund€were€spent€for€ordinary€and€necessaryÐ Ð  Ðexpenses.€€Therefore,€the€appellants€are€not€entitled€to€a€recovery€on€this€basis.€Ð ¼  ÐÌà  àThe€Appellants€also€assign€as€error€the€failure€of€the€trial€court€to€find€that€the€DefendantÐ ”ä ÐCenter€was€guilty€of€negligent€misrepresentation.€€Appellants€rely€on€òòRestatement€of€Contractsóó,€2dÐ €Ð ÐEdition,€ðð161(b),€which€provides,Ð l¼ ÐÌà8  àà8` Ð Ð àA€personððs€non„disclosure€of€a€fact€known€to€him€is€equivalent€to€anÐ D!” Ðassertion€that€the€fact€does€not€exist€in€the€following€cases€only:€.€.€.Ð 0"€  Ð(b)€where€he€knows€that€disclosure€of€the€fact€would€correct€a€mistakeÐ #l! Ðof€the€other€party€as€to€a€basic€assumption€on€which€that€party€isÐ $X" Ðmaking€the€contract€and€if€non„disclosure€of€the€fact€amounts€to€aÐ ô$D # Ðfailure€to€act€in€good€faith€and€in€accordance€with€reasonableÐ à%0!$ Ðstandards€of€fair€dealing.ÐÌ&"%` x` x ÐÌThe€Appellantsðð€reliance€on€the€aforementioned€section€is€misguided.€€First,€the€appellants€haveÐ ¤(ô#' Ðfailed€to€prove€that€the€Center€knew€all€along€that€the€monies€contributed€to€the€fund€would€not€beÐ )à$( Ðrefunded.€€In€fact,€the€evidence€in€the€record€is€clear€that€the€issue€was€not€decided€until€afterÐ |*Ì%) ÐPlaintiffs€resigned€from€the€Center.€€The€only€evidence€present€in€the€record€is€the€Appellantsðð€mereÐ h+¸&* Ðassertions€that€the€Board€knew€from€the€beginning€that€the€monies€paid€into€the€fund€would€not€beÐ ° Ðrefunded.€€This€is€not€sufficient€to€warrant€overturning€the€decision€of€the€trial€court€on€this€issue.€Ð œì ÐÌà  àSecond,€we€fail€to€find€that€any€misrepresentations€were€made€to€the€Appellants€regardingÐ tÄ Ðthe€reserve€fund.€€The€record€is€filled€with€several€hopeful€statements€by€Appellants€that€the€reserveÐ `° Ðfund€money€would€be€refunded€to€them.€€However,€the€record€is€devoid€of€any€misrepresentationsÐ L œ Ðmade€to€appellants.€€For€example,€at€trial,€when€Plaintiff€Cole€Turner€was€asked€about€herÐ 8 ˆ Ðconversations€with€Ô_ÔJenelleÔ_Ô€Reeves,€the€Centerððs€business€manager,€regarding€whether€moniesÐ $ t Ðcontributed€to€the€reserve€fund€would€ever€be€refunded,€Cole€Turner€responded,€ð ðI€was€always€veryÐ  ` Ðòòhopefulóó.ðð€(emphasis€added).€€Ð ü L  ÐÌà  àPlaintiffs€have€conceded€that€no€one€ever€told€them€that€the€monies€contributed€to€the€fundÐ Ô$  Ðwould€eventually€be€refunded.€€When€Ms.€Cole€Turner€was€asked,€ð ðWas€there€anybody€from€theÐ À  ÐBoard€of€Trustees€that€indicated€to€you€that€the€fund€was€refundable?ðð,€she€responded,€ð ðNo,€no€oneÐ ¬ü  Ðindicated€that€it€was€refundable.ðð€€Moreover,€when€Dr.€Smith€was€asked,€ð ðDid€any€person€inÐ ˜è  Ðauthority€such€as€a€Board€Member€or€Dr.€Ô_ÔElkinÔ_Ô€or€even€Dr.€Ô_ÔStenbergÔ_Ô€of€[sic]€tell€you€that€theseÐ „Ô  Ðoperating€funds€were€refundable?ðð,€Appellant€Smith€responded,€ð ðNo.€€No€clear€answer€was€given.ðð€Ð pÀ ÐFinally,€when€Dr.€Cole€Turner€spoke€with€Dr.€Ô_ÔElkinÔ_Ô,€the€Centerððs€executive€director,€regarding€theÐ \¬ Ðpossibility€of€a€refund,€Dr.€Ô_ÔElkinÔ_Ôððs€response€was,€ð ðIt€was€the€Boardððs€discretion.ðð€Ð H˜ ÐÌà  àThe€Appellants€failed€to€prove€that€anyone€from€the€Center€ever€affirmatively€representedÐ  p Ðto€them€that€the€money€would€be€refunded.€€Moreover,€we€fail€to€find€in€the€record€that€the€CenterÐ  \ Ðacted€unreasonably€or€in€bad€faith.€€It€is€unfortunate€that€Appellants€made€a€mistake€and€wrongfullyÐ øH Ðassumed€that€the€monies€they€contributed€to€the€reserve€fund€would€later€be€refunded€to€them.€Ð ä4 ÐHowever,€just€because€the€Plaintiffs€believed€or€hoped€or€assumed€that€the€monies€in€the€reserveÐ Ð  Ðfund€would€later€be€refunded€to€them€does€not€make€their€assumption€legally€operative.€€In€theÐ ¼  Ðnarrow€circumstances€of€this€case,€we€are€of€the€opinion€that€no€negligent€misrepresentations€wereÐ ¨ø Ðmade€to€the€Appellants.€€Therefore,€we€overrule€the€Appellantððs€assignment€of€error€on€this€pointÐ ”ä Ðand€affirm€the€judgment€of€the€lower€court.Ð €Ð ÐÌÓ  Óò òConclusionó óÐ X ¨ ÐÌÓ  Óà  àAccordingly,€for€the€aforementioned€reasons,€we€hereby€affirm€the€trial€court€and€dismiss€thisÐ 0"€  Ðcase.€€Costs€on€appeal€are€taxed€to€the€Appellants,€Rebecca€Cole„Turner€and€Judy€Smith,€for€whichÐ #l! Ðexecution€may€issue€if€necessary.Ð $X" ÐÌÌà  àà ` àÔ#†X«sXXX¾Ú #ÔÔ#†¼º¤»XX«s¬ #ÔÔ€X«sX»¼º¤ÔÌÌà@ìì*ìàˆÌÌà  àà ` àà ¸ àà  àà h àà À àà  à___________________________________€Ð Œ*Ü%) Ðà  àà ` àà ¸ àà  àà h àà À àà  àALAN€E.€HIGHERS,€JUDGE