Showing posts with label Contracts. Show all posts
Showing posts with label Contracts. Show all posts

Monday, April 2, 2012

Court reviews a legal malpractice claim arising from a breach of contract dispute

CARDIAC ANESTHESIA SERVICES, PLLC v. JON JONES (Tenn. Ct. App. April 2, 2012)

This case involves the application of the statute of limitations to a legal malpractice action.

Appellee attorney drafted a contract for Appellant medical provider; the contract contained a fee-split clause in contravention of Tennessee Code Annotated Section 63-6-225. When the other party to the contract, a hospital, allegedly breached the contract and sued the medical provider, the medical provider counterclaimed for breach of contract. The hospital answered the complaint and filed a motion for summary judgment, asserting that the contract was illegal and unenforceable.

The trial court ruled that Tennessee Code Annotated Section 63-6- 225 did not apply to the contract at issue. A jury returned a verdict in favor of the medical provider for more than one million dollars.

The Court of Appeals reversed, holding that Tennessee Code Annotated Section 63-6-225 invalidated the contract, and remanded the case for dismissal. Within one year of the Court of Appeals opinion, the medical provider filed this legal malpractice case against the drafting attorney. The trial court dismissed the case as beyond the one-year legal malpractice statute of limitations. We affirm.

Opinion available at:
https://www.tba.org/sites/default/files/cardiacanesthesia_040212.pdf

Wednesday, April 28, 2010

Arbitration Agreement within 11 page contract found enforcible due, in large part to signature

CORINE BROADNAX, Individually and as heir and on behalf of the Estate of Mary Alice Johnson v. QUINCE NURSING AND REHABILITATION CENTER, LLC, ET AL. (Tenn. Ct. App. April 22, 2009)

The parties to a nursing home Admission Agreement dispute the enforceability of its arbitration provision. The trial court refused to enforce the arbitration provision. The nursing home appealed. For the following reasons, we reverse the decision of the circuit court and remand for entry of an order compelling arbitration.

The entire text of this opinion can be found at the TBA website:
http://www.tba2.org/tba_files/TCA/2009/broadnaxc_081009.pdf

“Although we agree that mutual assent is essential to the formation of a contract, mutual assent is gathered from the language of the contract rather than the unexpressed or undisclosed intentions of the parties. 'The law conclusively presumes that the parties to a contract understood its obligations, and evidence is not admissible to show that their understanding was in fact otherwise.’” Id. (Case Citations Omitted)

“Based on the cases cited above, we find it inappropriate to relieve Ms. Broadnax from the operation of the Arbitration Agreement, due to her failure to read the document before signing it. In so ruling, we note that Ms. Broadnax had the ability to ask questions concerning the documents, was free to seek independent legal advice, and was given ample time to review the documents.” Id.

“Moreover, the Arbitration Agreement expressly stated that by signing such, Ms. Broadnax was 'giving up and waiving [her] constitutional right to have any claim decided in a court of law before a judge and a jury,' that execution was not a precondition to admission or the furnishing of services, and that it could be rescinded within thirty days. We further note that although the Arbitration Agreement was attached to a somewhat lengthy document, the Admission Agreement contained a table of contents, which should have drawn Ms. Broadnax’s attention to the inclusion of the Arbitration Agreement, which was a separate exhibit. Because Ms. Broadnax has failed to prove that Nursing Home either misrepresented the terms of the Arbitration Agreement or acted fraudulently in inducing her to sign such, we find that Ms. Broadnax’s signature evidences her assent to be bound by the Arbitration Agreement’s terms.” Id.

Wednesday, April 21, 2010

Court reviews breach of contract claim between insurance company and customer

JOHN COOK, JR. v. PERMANENT GENERAL ASSURANCE CORP. (Tenn. Ct. App. April 21, 2010)

This appeal involves the alleged breach of an insurance policy. The plaintiff insured had an automobile insurance policy with the defendant insurance company. The insured paid his insurance premium by check. He subsequently was involved in an automobile accident and notified the insurance company of the accident. The check was later returned for insufficient funds. The insurance company notified the insured that if he did not bring the premium current by a date certain, his insurance policy would be cancelled. The insured gave the insurance company a valid check for the premium, which was negotiated. The insurance company later cancelled the policy, retroactive to a date prior to the insured's automobile accident. The insured sued the insurance company for breach of contract. After a bench trial, the trial court held in favor of the plaintiff insured. The insurance company appeals. We affirm.

Opinion may be found at:
http://www.tba2.org/tba_files/TCA/2010/cookj_042110.pdf