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M a r ch 25, 1999 C eci l C r o w son , Jr . A p p e l l a t e C o u r t C l e r k F REDERI

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- 01- 9803- C H

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d s on C hanc

e r y T H E M ETRO POLI T A N ) N o . 95- 537- I I GOVE RNM

E N T OFNAS HVI L L E ) a n d DAVI D S ON COUNT Y , ) TEN N ESS EE, ) ) D e f end ant /A p p e l l ee. ) )
COUR T OFAP P E A L S OFT E NNE S S E E
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F OR DAVI

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Y , A T N A SHV I LLE, TEN N ESS E E
T H EHONORAB L E CAR O LL
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P E T ER H. CURRY T uke Y opp & Sw e e

ney N a t i ons B ank Pl a za ,

Sui t e 1100 4 1 4 U n i o n Str e e t N ashvi l l e , T enn ess ee 37 2 1 9 A T T ORNE

Y F OR P L A I N T I F F/A P P E L L ANT
J OHN L
. KE NNE D Y M e tro p o l i tan A t t o r n e y T he D epa r t m ent of L a w of T h e M e t r opol i t an G

over n ment of N a s hvi l l e a nd D avi d s on C ounty 204 M e t r opol i t an Court hous e N ashvi l l e , T enn ess ee 37 2 0 1 A T T ORNE

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## O PI N I O N
F r e d e ric R
. H arris, I n c . (F R H ) , f o r m e r l y P R C E n g i neeri

n g , I nc. , ent e r e d i n t o ac ontr a c

tw i t h the M

e t r opol i t an G

over n ment of N a s hvi l l e a nd D avi d s o n C ounty (M e tro ) , w h e r e b y FR H a g r e e d t o pr ovi de co m

put e r desi gn s e r

v i c e s t o M e tro o n a c o s t -plus-f

e e b asis.F R H pr o mi s ed t o pr ovi de e

ngi nee r i ng s e r v i c e s f o r the des i gn and

im p l e m e n t a tio n o f

aC o m p u teriz e d T r a ffic S i gn a l S y ste m fo r M e tro . T he or

i g i nal cont r a c t , dat ed O c t ober 21, 1985, pr ovi ded f

o rth e com pen sat

i o n and perf

orm ance o f on e “S yst e m

D esi g n P hase” w ith a n opti on t o cont i nue the r e la t i ons h i p over

f i ve a ddi t i onal phase s . T he e

vent ual goal w as t hat t h i s new s y s t e m w oul d uti l i z e

a s pec i a l t ypeof s o f t w a r e t o cont r o l tra f fi c a t fiv e hundr ed a

nd f i f t y ( 550) i n t e r

s e c t i ons th r oughout

the c i t y of N a s hvi l l e .
I . C o n trac t T

e r m s T h e do cum ent s execut ed b y t he p a r t i es cont a i ned t en g eneral art i c l es and one exhi b i tdenom i nat e d “S cop e of Servi ces. ” A m ong thos e ge ner a l pr ovi s i ons , A rtic l e s 6, 7 and 1 0 ar e o f p artic u l ar im p o rta n c e to th e re s o l u tio n o f th e is s u e bef o r e us .
T hey r e a d i n per t i nent par t : A r ticle 6 . L i m

ita tion o f C o s t A . I tis e stim

a ted tha t t h e total c o st to

th e C L I E N T , ex clusive of any f i xed f e e , f o r the pe r f o r m anc e of w o rk pur s uant

t o t h i s agreem ent , s hal l not excee d T HRE

E HUNDRE

D F ORT Y - T W O T HOUS AND, F OUR HUNDR E D , T W E N T Y - F OUR DOL L ARS ( $342, 424. 00)
. T h i s am ount r e f l e c t s the es t i m a t e d c o s t s f o r t h e S Y S T E M DE S I GN P HAS E - CONT RACT I T E M 1 as d etai l e d i n th e a t t a c h e d S c o p e o f S erv i c e s (E x h i b i tA ) . T h e C O N T R A C T O Ra g r e e s to e x e rt its b e s t e f f o rts to p e r f o r m th e w o rkas s

peci f i ed i n E xhi b i tA , “ Scopeof Serv i c e s , ” a

nd al l obl i gat i ons u n d e r th i s A g r e e m e n t w ith i n su c h esti m ated co s t s . If at any time th e CONS U L T ANTh a s reaso n t o b eli e v e tha tth e c o s t s t o b e in c u r r e d a g a i n s t th i s A g r e e m e n t w ith i n th e n e x t su c c e e d i n g si x t y ( 60) days , w hen a

dded t o al l cos t s pr evi ous l y i ncur

r ed, exc l u s i ve of any fix e d fe e , will be sub s t ant i a l l y great

e r or l essthan the est i m a t e d t o t a l c o s t s s e t fo rth in th i s A rtic l e 6 , the C O N S U L T ANTs h a l l n o t if y th e C L I E N T in

w rit i ng to tha t eff e c t, g i v i ng the r evi s e d e s tim a t e o f s u c h to t a l c o s t fo r th e p e r f o r m a n c e o f th i s A g r e e m e n t .3 B . T h e CLI E N T s h a l l n o t be obl i gat ed t o r e i m bur s e t h e CONS U L T ANTfo r c o s t s i n c u r r e d i n ex c e ss o f t

h e est i m a t e d c o s ts e t fo rth in th i s A rtic l e 6 , un l e s s a n d unt i l t h e CLI E N T shal l ha v e not i f i e d t h e C O N S U L T A N T i n w r itin g th a t s u c h est i m a t ed co s t

has been i ncreas ed an d shal l hav e speci f i e d in s uch no t i ce a r evi sed est

i m a t ed co s t

w h i ch shal l th e r eupo

n con s t i t u t e the est i m a t ed co s t

of t h i s A greem ent . * * * A r t i c l e 7 . P a y m e n t A . For the p e r f

orm ance o f th i s A g r e e m e n t, the C L I E N T s h a ll p a y t h e C O N S U L T A N T al l o w abl e cost s i n acco r dance w ith th e term s and c

ondi t i ons as

s e t f o rt h abov e .I n addi

t i on t o th e pay m ent s f o ral l o w abl e cost s as

herei n b e f ore pr o v i ded , th e CLI E N T ag rees t o p a y th e C O N S U L T A N T th e su m o f T H I R T Y - F OURT HOUS AND, T W O HUNDRE D F ORT Y - T W O D O L L A R S ( $34, 242. 00) , and i t is agreed and under s t oodtha t t

h is w i l l co n stit u te fu l l c o m

pens a t i on t o th e C O N S U L T A N T f

or f i xed f ee cov e r i n g al l ser

v i ces and w ork r e q u ired by t

h e con tr acti t e m s covered un der th i s A greem ent unl e s s s uch a

m ount s hal l be a m ende d i n w r i t i ng by t

h e CLI E N T . B . O n c e each m o n t h , the C O N S U L T A N T s h a ll s u b mit to th e CLI E N T ac e rtifi e d in v o i c e fo r a llo w ab l e c o s t s in c u r r e d in th e perf orm ance o f th i s A greem ent . * * * A rti cle 1 0 . G e n e r a l P r o v i s i o n s T h e f o l l o w i ng gen

e r a l pr ovi s i ons ar

e i ncor por a t ed he r e i n and m ade a part hereof : A . C hanges . T h e p artie s h e r e t o m a y fr o m time to time r e q u ire ch ang es i

n t he S cop e of s e r v i ces and t h e time of per f

orm ance as set

f o r t h her e i n . Such c h a n g es, i ncludi ng any i n c r ease ordecreas e i n t h e a m ount o f th e c o m

p e n s a t i o n t o t h e C O N S U L T A N T , w h i c h ar e m u tual l y ag r e e d upon by and bet w een th e p artie s heret

o , shal l b e in c o r p o r a t e d a s w ritte n a m end m ent s to th i s A g r e e m e n t. A n y c l a i m by t h e CONS U L T ANTf

o r an a d j u s t m ent under th i s claus e m u s tbe asser

t e d w ith i n th irty (3 0 ) d a y s fr o m th e d a t e of the r e ce i p tby t he CO N S U L T A N T of

th e not i f i c a t i on of cha nge;pr ovi ded,

how eve r , that th e CLI E N T m a y , if e q u ityi s obt a i ned , r ecei v e and act upon any such cl a i m

ass e r t e d a t a n y time p rio r to f i nal pay m ent under th i s A g r e e

m ent .4

T h e ph ases

o f th i s ag reem e n tw ere d i v i d e d i n t o t ask s an d su b t ask s . P h ase I, T ask A , w as desi g n a t ed as S yst e m D esign
. O f pa r t

i c u l ar i m p o r t a n c e are t h e su b t ask s o f T ask A , w h i c h read as fo l l o w s : S u b t a s k A . 2 . F u n c t

i onal D e s

i g n - T he cont

r o l s yst e m t o be p r ovi ded shal l be based on U T C S con cept s ,i n p a r t i cul a r the U T C S E nhanc e d sof t w a r e . H o w ever,desi g n t asks t o ad a p t th e U TCS con cept s fo r th e M e tro N a s hvi l l e a nd D avi d s on C ounty s y s t e m

s hal l be per f o r m ed by [ F R H ]
. * * * S u b t a s k A . 3 . C o m p u t e r

Syst e m D e s i g n - T h e tr a d e o f f

s h a ll b e m a d e of a l t e r n a te c o m

p u ter c o n fig

u r a t i o n s fo r th

e M e tro S yst e m f o r both th e in itia l i m

p l e m ent a t i on pha s e s

and e xpande d ( 550) s y s t e m conf i gur a t i o n s . T he conf

i gur a t i ons , w h i ch [

F R H ] s hal

l cons i der , shal l be ba

s ed on t he ba

s i c U T C S cont r o l conc ept s . T h e U T C S s o ftw ar e and any speci a l f u n c t i o n s ,such as E V R P , sh a ll b e exam i ned a n d th e ir r e q u ire m e n t s tra n s l a t e d in t o c o m p u t e r r e q u ire m e n t s .
M a j o r tr ade of f cons i der a t i ons s hal l i ncl ude 

### N Spee d 

### N S t orage capaci t y 

### N I n stru c t i o n re p e rtoire 

### N I / O capaci t y 

### N P e r i p h e r a l com p l e m ent 

### N P r o t e c

t i ve ope r a t i ng pr oce dur e s 

### N P r oduct

l i ne s t a t u s ( p r evi ous us age ) 

### N R e liab ility 

### N C o s t 

### N M a i n t enan ce ser

v i c e
I n addi t i on t o r epr

e s ent i ng the ke

y por t i ons of the contr a c

ti n t h i s cour

t’s e s tim a tio n , the ab o v e ci t a t i o n s exem p l i f yth e f a r - r e a chi ng and com p r ehe n s i v e scope o f th

e a g r e e m e n t of th

e p artie s w i t

h re g ar d t o t he des i gn and i m p l e m e n t a tio n o f

ac o m p u t e r i z e d tr a f

f i c c o n t r o l s y s t e m .
I I . C o n tra c t u a l R e l a tio n s h i p a n d S y s t e m L i mitatio n s T h e re c o r d re v e a l s th a t, a lth o u g h th i s c o n tra c t u a l re l a tio n s h i p bega n w i t h m u c h hope and a

n t i c i pat i on f o r the n e w com p u t e ri zed si g n a l syst e m , U T C S E nhanc e d s o f t w a r e wa s not w hat ei t her par t y t o the a

g r e e m ent had h oped i t5

w oul d b e . W

ith th e on set

of t he p e r sonal com p u t e r

age, the m a i nfr

a m e - based s o ftw ar e desi gned b

y H oney w e l l , I nc. , pr oved i

l l fit fo r th e ta s ko f m a n a g i n g th e tra f fi c s i g n a l s o f la r g e U . S . c itie s . C itie s a c r o s s th e c o u n try a tte m p tin g to i m p l e m e n tthe U

T C S E nhanc

e d s o f t w a r e ha d r epor t ed e x t ensi ve pr

obl e m s w ith r egard to th e fu n c tio n a lit y o f

th e s y s t e m . T h e depos

i t i o n o f M r. G r e g o r r e v e a l s t hat as ear

l y as N o v e m

ber of 1988, both par

t i e s beca m e a w a r e of l i mi t a t i ons as t o th e n u m

b e r o f in t e r s e c tio n s that

coul d be g over ned by th e sy s t e m . S a y s M r . G r egor : Q . A n d wh e n di d th e C i t y first b e c o m e a w ar e tha t t h e r e w e r e l imi t a t i o n s in h e r e n t t

o th e U T C S p r o g r a m ? A . I tw oul d have

bee n ei t her l a t e 1988 or ea r l y 1989. Q . O kay. In r espon se t

o in t e r r o g a t o rie s in th i s c a s e , the c ity i n d i c a t e d that they w e r e verbal l y m ade aw a r e i n N o v e m ber of ‘ 8 8
. D oes that s ound a bout r i ght ? A . I bel i eve the w o r d appr oxi m a t e l y w a s us ed. Q . R i ght
. A nd t o w hom w a s that awa r ene s s conve

y e d ? A . T h e cons

u l t ant conve ned a me e t i ng w i t h us in M r
. H ar p e r’s off

i ce, and I w as t

here,and M r . H a rper w as t here,I b e lie v e E l v i s w as t

here. I w as, i n s p ite o f m y b e s t e f f o rts , un ab l e to fin d m eet i n g s -- th e n o t e s fo r it, a n d th a t’s w h y I c o u l d n ’t g i v e you t h e exact dat e of t

hat meet i n g hap pen ed. Q . A n d wh o el se w as t

here? Y ou, M r . H a r

per , M r . M oor e ? A . R i ght
. T he cons u l t ant s , of cour se. I bel i eve K en K e i t t w a s ther e on behal

f of the cons u l t ant . A gai n , w i t hout m y not e s , I d o n’t r e m e m ber exact l y w h o w as t

here. Q . O kay. An d w hat di d t he co nsul t ant s s ay at that meet i n g ? A . B asical l y they con vey e d th a t th e y w e r e ha v i ng pr obl e m

s w ith U T C S , th a t th e y had h it an in t e r n a l lim

it o f a b o u t 2 4 0 i n t e r s e c tio n s and th a t w a s ca u s i ng them

pr obl e m s , and t hey f e l tthat t h e y nee ded t o dr op the U

T C S and go t

o a di f f e r ent con cept , wh i c h w oul d have

bee n a c u s t o mi z e d deve l opment appr oac h . A nd they conve y e d that they coul d do t hat w i t h i n the contr a c

t . Q . A n d wh a tdo you m

e a n they conve y e d that they coul d do it w ith i n th e c o n tra c t . A . M y under

s t andi ng w a s that the r e w a s

goi ng t o be n

o addi t i onal cos tt o the gov

e r n ment .
T h e con cer ns di scuss ed i n t hat meet i n g w e r e add r ess ed ag a i n i n a 1 9 9 1 l e tte r fro m F R H ’s S y ste m s E n g i ne e ring D irec t o r to G e o r g e C. H a rper,E xecu t i v e D ire c t o r and S e c r e t ar y o f th e M e tro T r a f fi c and Pa rk i ng C o mmi s s i on. T hat

l e t t e r o u tlin e d FR H ’ s pr opos ed a ppr oac h t o f u l f i l l i ng the obl

i gat i ons of the or i g i n a l 1985 a g r e e

m ent as f o l l o w s :6 F aced w ith th e o b

j e c t i v e of deve l opi ng an expa

ndabl e s o f t w a r e pack a g e tha t co u l d

c o n trol an u l t

i m a te s y ste m

siz e o f 5 5 0 i n t e r s e c tio n s , a n d in t e r a c t w ith a d d itio n a l syst e m enh ancem ent s ( i.e
. col o r graphi cs,m

u l t i

- t e r mi nal access , et c . ) , F R H exh aust i vel y pur s ued expa n s i on of the EN H A N C E D U T C S pac kage unti l f o r c e d t o adopt a m a j o r cour s e co rr e c t i on i n the N

a s hvi l l e S yst e m I m p l e m e n t a tio n . T h i s cons i s t ed of em bar k i ng on an i ndepe

ndent deve l opment o f ac o m p lete l y n e w c o n trol so ftw ar e pack age w h i c h w oul d b e fr e e fr o m

th e E n h a n c e d U T C S ’ s s i z e lim itatio n w h ile p r o v i d i n g s u b s t a n tia lly a ll o f its fu n c tio n a l c ap ab ili tie s . T h e m agni t ude o f e f f o rt a s s o c i a t e d w ith s u c h m a j or s oft w a r e developm ent

pr ogr a ms i s us ual l y me a s u r ed i n m anyea r s . I n conc l u s i on, i n or der

t o ac com p lis h t h i s t

ask, F r ederic R
. H a rr i s i nc u rre d t i m e ,

m anhour , and d i r e c tco s t s far i n ex c e ss o f

w hat coul d b e e s tim a t e d if th e s i z e lim itatio n s o f th e E n h a n c e d p a c kage ha d been cl ear l y d ocu m ent ed i n F H W A r e l ease m anu a l s . T hese f

act ors w e r e cl e a r l y beyond t

he contr o l of

Fr ede r i c R
. H arrisw ho s u s t a i

ned d i l i gent pr o s e c u t i on of pr o j e c tw o rk i n good f

a i t h .
T h e r e co r d bel

o w s how s , cons

i s t ent w i t h the a

f o r e m ent i oned l e t ter a n d 1988 meet i n g , that

begi nni ng i n 1988, FR H , I nc.i ncur r ed e xpense s ; th e r ecord, how eve r , i s uncl e a r as t o w hat port i on of

the e xpense s i n ques t i on w ent t o deve l opi n g new sof

t w a r e and w h a t p o rtio n fin a n c e d th e ill-f a t e d a tte m p tto ta ilo r E nhanc e d U T C S fo r th e N a s h v ille S y s t e m . T h e p artie s b e l o w a g r e e th a t th e exp enses conne

c t ed w i t h th i s at t e m

p t ed cu s t o m i zat i o n ar e th e ver

y s ubj e c tof th i s d i s put e .It fu

rth e r ap p e ar s fr o m

th e c o n d u c t o f th e p artie s h e r e , th a t th e b u l k of t h ese expe

n s e s i n i s s ue w

e r e pr obabl y i ncur r ed pr i o r t o D e ce m

ber 31, 19 91, w h e n FR H s ubm

i t t ed t he si x th cha

nge or der , r eques tin g re i m

b u r s e m e n t in th e a m ount of $287, 028. 81. A l m o s tt w o ye a r s l a t e r , M a y 12, 1993, G eor

g e H a rper, t h e T r a f fi c and Pa

rk i ng C o mmi s s i on C hai

r m an, i n f o r m ed FRH , that

$122, 673 of t hos e cos t s had b e e n appr oved a nd that FR H w a s

t o s ubm i ta c hange

or der f o r pay m ent . T h i s appr

oval w as m ade condi t i onal upon M e t

r o ’ s ac c e p t anc e of th e syst e m and i t s unr e str i c t

ed use of the s o f t w a r e .For the pur

pos e s of s u mm a r y j udgment, how eve

r , both par

t i e s s t i pul a t ed be l o w that FR H , I nc. ’ s duti e s

under t h e cont r a c thad a l l but bee n com p l e t ed.A l t hough M e t

r o di d s tip u l a t e f o r th e pur pos e of s u mmar y j udgment

that FR H , I nc.had a

g r e e d t o M e t r o ’ s unr e str i c t

e d u s e of th e c u s t o mi z e d s o ftw ar e , M e tro d i d d i s p u t e F R H ’ s a lle g a tio n tha t Me tro had f i nal l y accep t ed t he syst e m . M e tr o t e r mi nat ed t he co n t r actf or t h e conve n i enc e of the gov e r n ment pur s uant t o A r t . 10, s e c

t i o n D
. o f th

e c o n trac t7

Febr uar y 7, 1994. Th e cha

nge or der s ubm i t t ed by FR H w a s neve r s i gned b y t h e Pur cha s i n g A gent

, D i r e c t o r of Fi nanc e and t he M ayo r . A tthe S u m m a r y J udgment Pr oce edi ng bel o w , and a ta l l p o i n ts in th e p r o c e e d i ng h e r e , M e tro

has u r ged that si nce t h e s i x th cha

nge or der w a s not s o s i gned p

u r s uant t o M e t r o C ode § 4. 24. 020, FR H ’ s cla i

m f o r expe n s e s i ncur r ed pr i o r t o that cha nge or der ca nnot b e r ecov e r ed. T he gov

e r n ment ar gues that the c hange or der s ought m odi f i c a t i o n o f a n e x i s tin g fin a n c i a l lia

b ilityand t

hat pay m ent ther eof w i t hout appr oval o f th e P u rch asing A gent

, D i r e c t o r of Fi nanc e a nd M a y o r w oul d be a

n ul tr a v i r es act . C ity of Lebanon v
. B a i r

d , 75 6 S. W
. 2d 236, 244 ( Tenn. 1988) ; Lai d l a w E nvt l
. S erv s . of Sout h C a ro l i na, I nc. v . M e t ro p o lita n G o v ’t. o

f N a s h v ille and D avi

d s o n Count y , N o
. 01A 01- 9610- C H

- 00479, 1997 W L706614 ( T enn. C t . A pp. N ov. 14, 1997)
. T he courtbel

o w f ound, based on Lai d l a w th a tthe e xec u t i on of a c hange o r der w as necess a r y t o b i n d M e tro . T h i s c o u rt is o f

the opi n i on that Lai d l a w is d i s tin g u i s h - a b l e fr o m

th e c a s e a t b ar o n its fa c t s .
L a i d l a w E nvi r onment

a l Serv i c e s of

Sout h C a r

o l i na, I nc.( L a id l a w

) , con tr act e d w ith M e tro re g ar d i n g th e re m o v a l o f fl ya s h g e n e r a t ed b y th e N a s h v ille T herm

a l T r ansf e r Pl ant . T he or

i g i nal cont r a c tt e r m s r equi r e d L a i d l a w t o r e m ove onl y 15- 25 t ons of

as h per day, w i t h a 15

- t on m

i n i m u m cha r ge pa i d b yM e tr o . When i tbecam e appa r ent t o b o t h p artie s th a t th e c o n tra c t w a s n o t m eet i n g Me tr o ’ s nee

d s , th e p ar tie s a tte m

p t e d am o d i f

i c a tio n . L a i d l a w , * 2
. " L a i d l a w ' s est

o p pel ar g u m ent w as pr e mi sed on w hat i tcha r a c t e riz ed as a ci t y e m p l o y ee' s ' i n t e r p r e t a tio n ' o f aw r i t t en contr a c t . W e he l d that the pur port e d i n t e r p r e t a t i o n w a s a c t u a l l y a n o r a l co n trac t m

o d ific a t i o n tha t w a s b arre d b y M e tro p o litan C ode § 4 . 24. 020. " T he t e r m s of the contr a c

ti n Lai d l a w we r e cl ear and unam b i guous . Lai d l a w , *6. I n t he case atbar,ho w ever,the co n t r act i n g p artie s a l lo w e dfo r th

e e las t ic n a t u

r e of thei r r e la t i ons by c ontr a c

t i ng on a cos t
- p l u s-fe e basi s w

here costs we r e est

i m a t ed an d sub j ectt o ch ang e . I n t he p l a i n l angua g e o f th e c o n trac t ,F R H a n d M E T R O a l lo w e d fo r c e rtain “ trad e - o ffs” r e g ar d i n g E nhanc

ed U T C S ada p t a t i on. T he pa

r t i e s adm i tthat th e m a j o rity o f th e c o s t s r eques t ed i

n the si x th cha

nge or der w e r e i ncur r e d p rio r to s ubm

i s s i on of th e p r opos e d chan ge o r der. A s such , the co s t t e r m i n F R H ’ s cont r acti s d i s t i ngui s habl

e fro m the una m b i guous l angua

ge i n L a id l a w ’ s agreem

ent . M e tr o i s actual l y d o i n g i n t h i s cas e w hat the co n t r act or c l a i m e d M e tro d i d in Lai d l a w .8

S i n c e w e d i s tin g u i s h th e c o n tra c t in Lai d l a w , w e r e m o v e the m a j or barr i e r t o estop p el w

h i c h ex i s t e d i n th at case .

I I I. U ltra V ire s , E s t o p p e l a n d E x e c u t e d C o n tra c t s T he S u p r e m e C o u r tof T

enn ess ee has hel d : U nder T enn ess ee l a w , a m

u n i c i pal ac tio n m ay b e decl a r ed u ltr a v i res for ei t h er o f t

w o reaso n s : (1) be c a u se the ac t i o n w as w h o l l y out s i d e the scope

of the c i t y ' s aut hori t y unde

r i t s c h arte r o r a s t a t u t e , o r ( 2 ) becaus e t

he a c t i on w a s not under t ake n cons i s t ent w i t h th e m anda t o ry p r o v isio n s o f its c h arter o r a st a t u t e . th u s , the la w r ecog n i zes a di f

f e r ence b e t w een t he ex i s t

ence of a m uni c i pal pow e r and the m

anne r or m o de of

exe r c i s i ng m

uni c i pal pow e r l e g iti m a t e l y
. Co m

pare C i t y of C hat tanooga v . Tenne s s e e

E l e ct r i c P o w e r Co
. , 172 T enn.524, 11 2 S
. W
. 2d 385 ( 1938) ( exi s t enc e of pow e r ) w ith R u t h e r

f o r d v . C ity o f Na s h v ille , 168 T enn.499, 79 S . W . 2 d 581 ( 1935) ( m anne r of exe r c i s e )
. A s th i s C ourtobs e r ved i n M e m phi s St r e e t

R y . Co . v. R api d Tran

s i t Co . , 138 T enn.5 9 4 , 607- 608, 198 S. W
. 890, 893 ( 1917 ) , " [ i ] t is to b e o b s e r v e d th a t . .

. pow e r exi s t ed i n t h e mu n i c i p a lit y to [d o th e a c t ] in q u e s tio n , b u t i twa s lim ite d o r q u a lifie d a s to th e m o d e o f e x e r c i s e . S o it is in th e c a s e under r e v i e w ; pow e r t o ac t , pr oce edi ng pr oper

l y , w a s not l acki n g , bu tthe l i mi t a t i o n s on i t s exer c i se we r e no tr egarded. " W h e n a m

uni c i pal i t y ha s no pow e r

w hat s oeve r t o do a n act , t h a tany at t e m

p t t o u n d e r t ake such act i o n i s u l t ra vi res is re a d ily seen; th e m o r e d ifficul tqu est

i o n i s t he co nsequ ences of a ci

t y ' s f a i l u r e t o do an aut

hor i z ed acti n t he m ann e r pres c r i bed by i t s chart e r o r b y th e s t a t u t e u n d e r

w h i c h it i s a tte m

p tin g to a c t. I n s o m e c a ses, i f th e C ity does

an a c t that does not com p l y w i t h the la w c o n tro llin g th e m anne

ri n w h i c h it is to b e d o n e , the c ityw ill b e e st opped fr o m d e n y i n g th e v a lid ityo f its a c t fo r e q u itab l e consi der a t i ons aris i n g o n th e f

act s of the p a r t i cul a r

case, Law r enc

e Count y v . W h ite , 200 T enn.1, 8, 288 S. W
. 2d 735, 73 8 ( 1956) , u s ual l y becau se t

he ci t y h as accep

t e d t he b enefi

t s of an act i t i nduce d anot her t o p e rfo r m , e . g ., B

ro w n v . C ity o f M a n chest e r , 722 S . W . 2 d 3 94, 397- 398 ( T enn. A pp. 1986) , or becaus e t he c i t y i nduce d ad e t r i m e n t a l a c t o f

a n o t h e r , e . g ., Bl e dsoe Co u n t y v. M c R eyno l d s , 703 S. W
. 2d 123, 145- 125 ( T enn. 1985)
.

* * * U ltim a t e l y , the a

ppl i c a t i on of est oppel or i m p l i ed co n trac t m u s tbe det e r mi ned on the facts and equ i t i es of the p a r t i cul a r

case. T h e p rin c i p l e s o f e s t o p p e l a r e w e l l set t l ed an d n o t every case w i l l r equi r e a ppl i c a t i on of est oppel or o f im p lie d c o n tra c t. T

h e c l a s s i c c a s e of est oppe l in th e p r esentcon t ext i s t he accep t ance o f

th e b e n e fits of

a con tr actand the sub sequen tr e f usal of a ci

t y t o pay f o r t h e ben e f i t s r ecei ved
. S e e , e . g ., T

r u ll v . C ity o f L o b e l v ille , 554 S . W
. 2d 638, 641- 642 ( T enn. A pp. 1976)
.9

C i t y of Lebanon v
. B a i r

d , 756 S. W
. 2d 236, 241- 42, 244 ( T enn. 1988)
. T h e cour t s of th i s s t a t e ha ve l ong r e cogni z e

d that aci t y m ay b e est

o p ped fro m a s s e rtin g th

e u l t r av ires n a t u

r e o f a n a c t if th

e a g g riev e d c o n trac t o rcan s how th a t th e u ltr av i r e s c o n t r a c t is p ar tia lly o r fu lly e x e c u t e d
. M

ayor and C ity C o unci lo f N a s h v ill e v . H aga

n , 68 T enn.495, 507 ( 1876) ; C i t y of Lebano n v . B a i r d , 756 S. W
. 2d 236, 244 ( T enn. 1988) ; T r u ll v . C ity o f L o b e l v ille , 554 S. W
. 2 d 638, 641- 42 ( T enn. C t . A pp. 1976)
. T h i s w e l l s e ttle dru l e of

equi t y a nd com m o n sen s e ca nnot be a voi ded w hen a m u n i c i pal i t y co n t r act s f

or a benefi

t , r ecei ves and r e t a i n s i t , and then r e f

uses t o co m pens a t e th e c o n tra c t o r f o r th a t b e n e fit s o l e l y b e c a u s e th e c ityfa ile d to fo llo w i t s ow n pr oce dur e s w i t h r ega

r d t o th e com pens a t i on.
I V . Te r m i n a tio n fo r th e C o n v e n i e n c e o f th e C lie n t I tbea r s noti ng that

Me t r o te r m i n a t e d th i s c o n tra c t u a l re l a tio n s h i p u n d e r s e c t i on 10. D of

the contr a c

tw i t h FR H
. T hat

s e c t i on r e a d s i n per t i nent par t : D . T e r m i n a tio n f

o r C onveni enc e of C l i ent . T h e CLI E N T ma y t e r m i n a t e th i s A greem

ent atany t i m e by

gi v i ng w r i t t en not

i c e t o th e CONS U L T ANTo f s u c h te r m i n a tio n a n d s p e c ify i n g th e e f f e c tiv e dat e th e r e o f , atl east

f i f t een (15) days befor e the eff ect i ve d a t e of such te r m i n a tio n . In th a t e v e n t, a ll fin i s h e d o r u n fin i s h e d docum ent s and o t her m a t e ria l s s h a ll, a

t th e o p tio n o f th e CLI E N T , beco m e its p r o p e rty . If th i s A g r e e m e n t is te r m i n a t e d b y th e CLI E N T as pr ovi ded he r e i n , the CO N S U L T A N T w i l l be pa i d i nc u rre d c o s t fo r c o m

p l e t e d o r p artia llyc o m

p l e t e d w o r k , p l u s ap r o r a t apo r t i o n of th e Fi x ed Fe e . T h i s sect i o n of t he co n t r actcl ear l y st a t e s that s o me a m ount i s ow ed t o FR H upon t e r mi nat i on f o r the conveni

enc e of the gov e r n ment . M e t

r o s e e m s to ar gue t hat t h e pl a i n unam b i guous l angua

ge of s u b sect i on D of the c ontr a c ti s tru m ped by § 4. 24. 020, w h i ch s

t a t e s i n per t i nent par t : A . A ppr oval

by pur cha s i ng age n t . B e f o r e any chan ge, r e v i s i o n o r m o d ific a tio n shal l be m ade i n any cont r a c tr equi r i ng th e expe ndi t u r e of m oney or the r e l i nqui s h ment

of r i ght s or pri v i l ege s b yth e me t

r opol i t an gov

e r n ment, s uch c

hange , re v i s i o n o r a lte r a tio n shal l be app r o v ed b y t he p urchasin g agen t . T he p urchasin g agen t shal l di s appr

ove a ny c hange , r evi s i on or

a lte r a tio n o f s u c h c o n tra c t , i f i n hi s opi n i on, the bes ti n t e r e st s of th e me tro p o litan gover

n ment r e q u ire that a new procurem

ent be i n itiat e d fo r th e ite m s in c l u d e d i n the pr opos e d cha nge o r m o d ific a tio n . T

h e m a y o r s h a ll m ak e th e1 0 fin a l d e term i n a t i o n if t

h e d irec t o

r o f a n y a ffe c t e d d e p artm e n t s , c o mmi ssi o n , boar

d o r ag e n c y o b

j e c t s t o th e d e c i s i o n o f t h e pur cha s i ng age n t . B . A ppr oval

by M ayo r

and di r ect or of

l a w . A n y chan ge, r e v i s i o n s o r a l t e r a t i o n s of con tr act s ,deed s ,l eases or ot her i n s tru m e n t s in w ritin g in w h i c h th e me tro p o litan g over n ment i s con cer ned shal l be a

ppr oved b

y t he de par t m ent of l a w , as pr ovi ded b ys e c t i on 8. 602( e )

of th e M e tro p o litan C h arte r, a n d s h a l l be s i gned by t he m a y o r . C . A v a ilab ilityof

Fu n d s . Wher

e a ny c hange , r evi s i on or a lte r a tio n of

a contr a c ti n w h i ch t

he m e t r opol i t an gov

e r n ment i s con cer ned r equi

r e s an e xpendi t u r e of m oney the di r e c t o r of f i nanc e o r hi s desi gnee

m u s tappr ove t he c hange
. Funds m

u s tbe avai l abl e o r obt a i nabl e by me a n s aut hori z e d in th e C h arte r

or i n or d i nanc

e s . ( O r d . 92- 210 § 1 ( 6 - 102) , 1992)
. T o app l y a st a t u t e w h i ch cover s m o d ific a t i o n s o f c o n trac t d u t ie s to ac o n trac t w h i c h seeks onl y t he sat i s f act i o n of exi s t

i n g du t i es s eem s t

o st r a i n t he pla i n i n t e n tof both . M e t

r o and F R H pr ovi ded t

he m e t hods of t e r mi n a tio n in t hei

r agreem ent . M e tr o ch ose t h e m e t hod by w h i ch i tm u s tnow l i ve a

nd pay
. T h e ques t i o n of how m uch c o s t s i tm u s tpay i s cl e a r l y a ques t i on of f a c tf o r the court bel o w t o addr

e s s on r e m

and.
S i nce th i s ca s e i s her e on app eal f r o m the gr

ant of s u mm a r y j udgment, our bur den is c l e ar. W e m

u s t d e t e r m i n e , vi e w i n g th e re c o r d b e l o w in th e lig h t m o s t f avor abl e to th e non- m ovant

, w het her a m

a t e r i a l i s sue o f

f actexi s ts w

h i ch w o u l d p r e c l ude e n tr y of j udgment

f o r th e m ovant. See B yrd v. Ha l l , 847 S. W
. 2d 208, 210- 211 ( T enn. 1993)
. T he de novo revi

e w of s u mm a r y j udgment

on ap pea l e n t a ils no pre s

u m p t i on of cor r e c t nes s . C ity o

f Tul l ahom a v. B edf

o r d Count y , 983 S . W . 2 d 408, 412 ( T enn. 1997)
. T he f i ndi ng bel

o w ce n t e r ed onl y on t h e ap p lic a tio n of Lai d l a w to th e undi s put ed f a c t s r ega r d i ng the c

hange or der
. Th e cour tbel o w di d not

del ve i n t o the cour s e of

dea l i ng of th e p artie s , nor

w het her t h e bene f i t s o f t h i s ar

r ang e m ent w e r e actual l y ret a i ned un der ci

r cum s t ances w h i c h w oul d m ake

i tunf a i r f o r FR H t o go unc o m

pens a t ed.T hus , i ti s not necessar y fo r th i s cour tt o ad dres s t

he accu r acy o f

F R H ’ s al l eged cost s und e r

th e con tr act . N or i s i

tnecessar y t o d eci de t he ap propri a t eness of M e tr o’s off e r t o s e ttle the co s t

i s sue. I ti s enou g h t o st a t e that t he co n tr actbet w een F R H and M e tro w a s w ith i n the pow e r o f M e tro to au t h o riz e . It is aq u e s tio n o f m a t e ria l1 1

f actw het her or not th e cont r a c ton th e p art o f F R H is p artia llye x e c u t e d o r fu lly e x ecu t e d in m a tte r s re l a tin g to c h a n g e o r d e r n u m b e r s i x
. Lai d l a w i s not appl i c a b l e a nd s u mm a r

y j udgment

w a s i nappr opri a t e .
T h e or der

of the courtbel

o w gr ant i ng s u mm a r

y j udgme n t to t h e M e tro p o litan G over

n ment of N a s hvi l l e a nd D avi d s on C ounty i s ther

e f o r e r evers e d an d th e c a u se rem a n d e d for a t r ial on th e m eri t s . C o s t s on ap p eal ar e t axed agai nstthe ci t y .

_______________________ _ _ _______ _______ _ W I L L I A M B. CAI

N , J UDGE

CONC UR:

_______________________ _____________ B E N H . C A N T R E L L , P . J ., M . S
.

_______________________ _____________ W I L L I A M C. KOCH,

J R . , J UDGE