RAINES BROTHERS, INC. v. H. MICHAEL CHITWOOD ET AL. - Articles

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RAINES BROTHERS, INC. v. H. MICHAEL CHITWOOD ET AL.

Posted by: Tanja Trezise on Jul 3, 2014

Court: TN Court of Appeals

Attorneys 1:

R. Wayne Peters and Gary L. Henry, Chattanooga, Tennessee, for the appellants, H. Michael Chitwood and James S. Dreaden.

Attorneys 2:

Sheri A. Fox and Marcie Kiggans Bradley, Chattanooga, Tennessee, for the appellee, Raines Brothers, Inc.

Judge(s): FRIERSON

This contract action stems from the defendant’s, H. Michael Chitwood’s, failure to pay for construction work that was performed by the plaintiff, Raines Brothers, Inc. (“Raines”). The work was performed on a home that was occupied by Mr. Chitwood but owned by a trustee, James Dreaden, who was also named as a defendant. Following a bench trial, the trial court awarded Raines a judgment against Mr. Chitwood and Mr. Dreaden (collectively “Defendants”) in the amount of $66,762.71. The trial court also awarded pre-judgment interest at the rate of eighteen percent per annum, beginning August 14, 2007. The trial court denied Raines’s claim for attorney’s fees. Defendants timely appealed the trial court’s ruling. Having determined that Raines adequately proved its entitlement to this amount pursuant to the parties’ contract, we affirm the trial court’s judgment of $66,762.71 against Mr. Chitwood. We reverse the trial court’s judgment against Mr. Dreaden. We modify the trial court’s award of the rate of interest from eighteen percent per annum to ten percent in accordance with relevant statutory and case law. We also reverse the trial court’s denial of Raines’s claim for attorney’s fees pursuant to the parties’ contract and remand for a determination of the proper amount of interest to be charged, as well as a reasonable award of attorney’s fees.

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