# FILED March 1, 1996 Cecil Crowson, Jr. App ellate C ou rt Clerk I N THECOUR

TOFAPPEALSOFTENNES SEE EA STER N SEC TI O N

DONALD L. TATUM

a n d ) HAM I LTON C

OUNTY DOR OTHY R. TATUM ) 03A 01- 9507- C

H - 00219 ) Pl a i ntif f s - A

pp e lle e s )

) ) HON. HOW

ELLN. PEOPLES , v. ) C HANC ELLOR ) ) VER TI SJ . W

OR SHAM ) ) D e f e nd a nt , ) C r os s - D e f e nda nt / A

ppe l l a nt )

) and ) ) FR EDA J OHNSON M

I C HEL )

) D e f e nd a nt , ) C r o s s - Pl a i ntif f / A

pp e lle e ) AFFI R M ED AND R

EM ANDED

W I LLI AM G. SC HW ALLOFC

HATTANOOGA FOR

APPELLANT M I C HAELA. ANDER

S ON OFC

HATTANOOGA FOR

DONALD L. TATUM

a n d DOR OTHY R. TATUM W . FR ANK BR OW N, I I I , OFC

HATTANOOGA FOR

FR EDA J OHNSON M

I C HEL

O PI N I O N

G odda r d, P. J . Thi s c a s e or i gi na t e d f r om a c om pl a i nt by D

ona l d L. Ta t um a nd D or ot hy R. Ta t um

a ga i ns t V

e r t i s J . W

or s ha m f or s pe c i f i c p e r f or m

a nce o f a l a nds a l e agr eem e nt andd a m

a g e s . M

r . andM

r s .2

Ta t um a m e nde d t he i r c om

pl a i nt t o j oi n Fr e da J ohns on M i c he l , a s e c ond m

or t ga ge hol de r of t he s ubj e c t pr ope r t y. The r e a f t e r , M s . M i c he l f ile da c r o s s - c l a i m a g a i n s t M

s . W or s h a m , p r i nc i p a lly s e e ki ng a de t e r m

i na t i on of t he ba l a nc e ow i ng on t he s e c ond m or t ga ge w

hi c h w a s i n di s put e . M s . W or s ha m a ppe a l s a j udgm

e nt of t he H

a m i l t on C

ount y C ha nc e r y C

our t gr a nt i ng s pe c i f i c pe r f or m a nc e of a l a nd s a l e c ont r a c t a nd da m

a ge s r e s ul t i ng f r om t he br e a c h of t ha t c ont r a c t i n f a vor of M

r . a nd M

r s . Ta t um

. M s . W or s ha m a l s o a ppe a l s a de c r e e de t e r m

i ni ng t he ba l a nc e ow e d on t he s e c ond m or t ga ge a nd gr a nt i ng he r a t t or ne y' s f e e s .

The f ol l ow

i ng i s a s um

m a r y of t he C

ha nc e l l or ' s f i ndi ngs of f a c t w

hi c h a r e a c c om

pa ni e d by a pr e s um pt i on of c or r e c t ne s s . R ul e 13( d) of t he Te nne s s e e R ul e s of A

ppe l l a t e Pr oc e dur e . M s . W or s ha m a c qui r e d t he pr ope r t y t ha t i s t he s ubj e c t of t hi s di s put e f r om Fr e da J ohns on ( now Fr e da M

i c he l ) i n 1993. A t th a t tim

e , M s . M i c he l, w

h on o w r e s i de s inFl or i d a , h e l da s e c ond m

or t ga ge on t he pr ope r t y. O n N ove m be r 13, 1993, M

s . W or s h a m ent e r e di nt oa R eal Es t a t e S a l e s A gr eem e nt w i t hM r . and M r s . Ta t um

. The A

gr e e m e nt pr ovi de d i n pe r t i ne nt pa r t t he f ol l ow i ng:

4. Shoul d w

e w r ongf ul l y f a i l or r e f us e t o c a r r y out t he t e r m

s o f t hi s agr eem

e nt , t he Se l l e r s s h a l l h a v e t he r i g ht ( 1 ) t oel ect t odecl a r e t hi s co nt r act cancel l e d , i n w hi c h e ve nt t he a m ount de pos i t e d m

a y be r e t a i ne d by3

t he m a s liqui d a t e dd a m a g e s , o r ( 2 ) e l e c t toa f f i r m thi s c o nt r act andenf or ce i t s s p eci f i c p e r f or m a nce or r eco v e r d a m

a g e s f or i t s br each . I nt hi s cas e , t he de pos i t s ha l l be r e t a i ne d t o a ppl y on t he s a l e pr i c e or o nt he d a m

a g e s r eco v e r e d . 9. Shoul d t hi s of f e r be a c c e pt e d by t he s e l l e r s , t he pa r t i e s he r e t o a gr e e t o c l os e t he pur c ha s e 12- 27- 93. 15. I n e ve nt of t he de f a ul t of e i t he r pa r t y he r e t o, a nd l i t i ga t i on e ns ue s , a r e a s ona bl e a t t or ne y' s f e e s ha l l be i nc l ude d i n t he da m a ge s of t he non- de f a ul t i ng pa r t y, r e c ove r a bl e t oge t he r w i t h a ny c our t c os t s . The c ont r a c t a l s o pr ovi de d t ha t M s . W or s ha m w oul d m a ke r e pa i r s r e qui r e d by a n FH A a ppr a i s a l a nd s uppl y a w ood i nf e s t a t i on c l ear a nce l e t t e r .

The Ta t um

s w e r e un a b l e t oob t a i nt he necess a r y f i na nc i ng by D

e c e m be r 27, 1993. Thus , t he c l os i ng di d not t a ke pl a c e on t ha t da t e . But t he pa r t i e s ne got i a t e d f ur t he r a nd a t l e a s t i m

pl i c i t l y a gr e e d t o c l os e t he s a l e on J a nua r y 28, 1994. The Ta t um

s a t t e nde d t he c l os i ng on t he pr ope r da t e , a s di d M s . W or s ha m . M s . W or s ha m a s s e r t e d t ha t t he onl y r e a s on s he a t t e nde d w a s b ecau s e s he w

a s t hr eat e ne dw

i t ha l a w

s ui t b ycoun s e l f or t he Ta t um s if s he f a ile dtoa tte n d . A t t he c l os i ng, M

s . W or s ha m r e f us e d t o c l os e t he s a l e be c a us e t he r e w

a s a di s put e a s t o t he a m ount s he ow

e d on t he m or t ga ge he l d by M s . M i c he l . M

s . M i c he l w

a s r e s i di ng i n Fl or i da a nd di d not a t t e nd t he c l os i ng.

The r e a f t e r , t he Ta t um s br ought t hi s s ui t a ga i ns t M s . W or s ha m , r e que s t i ng t he Tr i a l C our t t o or de r s pe c i f i c pe r f or m a nc e4

o f t he i r co nt r act . M s . W or s h a m f i l e da cr o s s - c l a i m ag a i n s t M

s . M i c he l s e e ki ng a de t e r m i na t i on of t he a m ount ow

e d on t he m

or t ga ge he l db yM

s . M i c he l. M

s . M i c he l c o unt e r - c l a i m e d . The C ha nc e l l or f ound t ha t M s . W or s ha m ha d a c t e d unr e a s ona bl y by f a i l i ng t o c l os e t he s a l e a nd w a s i n br e a c h of t he i r agr e e m

e nt . Sp e c i f i c al l y , t he C h a nc e l l or st a t e d, "t he a ppr opr i a t e t hi ng t o do a nd t he pr ope r t hi ng t o do w a s t o go f or w a r d w i t h t he c l os i ng a nd e s c r ow a ny di s put e d a m

ount s o t ha t a t s o m e t i m e l a t e r M

s . W or s h a m andM s . M i c he l canr e s o l v e w ha t e ve r di f f e r e nc e s t he y ha ve e i t he r be t w e e n t he m

or t hr ough t he a ppr opr i a t e act i o n . " The C h a ncel l or gr a nt e ds p eci f i c p e r f or m a nc e of t he c ont r a c t , a s w e l l a s m

one t a r y da m

a ge s , i n f a vor of t he Ta t um s a nd or de r e d t ha t a c l os i ng t a ke pl a c e on J ul y 12, 1994. The C h a ncel l or al s odi r ect e dt h a t a de t e r m i n a t i o nb e m

a de as t o t he va l ue of M

s . M i c he l ' s m

or t ga ge a nd a w

a r de d a t t or ne y' s f e e s t o M s . M i c he l . A

s t o t he di s put e d por t i on of t he de bt , t he C ha nc e l l or or de r e d t ha t t he y be pl a c e d i n e s c r ow unt i l t he C

our t m a de a de t e r m

i na t i on of t he a m ount ow

e d.

M s . W or s ha m r a i s e s s e ve n i s s ue s on a ppe a l , f our a s t o M r . a n dM

r s . Ta t um

a n dthr e e a s toM s . M i c he l. W

e w ill a ddr e s s e a c h i n t ur n.

M s . W or s h a m f i r s t a r g u e s th a t the Tr i a l C o ur t e r r e din f a i l i ng t o f i nd t ha t t he Ta t um ' s ha d br e a c he d t he l a nd s a l e s c ont r a c t by be i ng una bl e t o c l os e t he c ont r a c t on D e c e m be r 27,5

1993, or , a l t e r na t i ve l y, t ha t t he c ont r a c t ha d e xpi r e d on t ha t d a t e . Es s e ntia lly , M s . W or s h a m is a r g ui n gth a t tim e w a s o f the e s s e nc e of t he c ont r a c t , a nd by f a i l i ng t o be a bl e t o c l os e on t he d a t e s p eci f i e di nt he cont r act , t he Ta t um s t e r m i n a t e dt he c o nt r act . The C

ha nc e l l or f ound t ha t t i m e w a s not s pe c i f i c a l l y m a de o f t he es s e nce byt he t e r m s o f t he agr eem

e nt . H

e r eas o n e d t ha t a l t hough t he a gr e e m e nt pr ovi de d a da t e f or c l os i ng, i t di d not s pe c i f y w

ha t w oul d ha ppe n i f t ha t t he s a l e w a s not c l os e d by t ha t da t e .W

e agr ee w

i t ht he C

h a ncel l or t h a t t i m e w a s n o t o f t he e s s e nce o f t hi s co nt r act . I t i s t he l a w i nTe nn e s s ee t h a t t i m e i s n o t o f t he es s e nce o f t he cont r act unl e s s s p eci f i cal l ym a de o f t he e s s e nc e by t he l a ngua ge of t he c ont r a c t or i nf e r r e d a s s uc h by t he i nt e nt of t he pa r t i e s a s e xpr e s s e d i n t he i r c ont r a c t . C om m e r c e St r e e t C

o. v. G

oodye a r Ti r e &

R ubbe r C

o. , 31 Te nn. A

pp. 314, 215 S . W

. 2d 4 ( 1948) . M

s . W or s ha m a r gue s t ha t t he t i m e of pe r f or m

a nc e w a s f i xe d by t he c ont r a c t a t D e c e m be r 27, 1993. G i ve n t he f a c t t ha t t he pa r t i e s c ont i nue d t o ne got i a t e t he s a l e a f t e r t h a t d a t e andt he f act t h a t t he cont r act di dn o t s t a t e t h a t t he c ont r a c t w

oul d t e r m

i na t e i f t he s a l e w a s not c l os e d by t ha t d a t e , w

e agr ee w

i t ht he C

h a ncel l or andar e un a b l e t oco n c l u de t h a t t i m

e w a s m a de o f t he es s e nce byt he p a r t i e s i nt he i r c ont r a c t or by t he i r a c t i ons .6 N e xt , M s . W or s ha m a r gue s t ha t t he Tr i a l C our t e r r e d by r ul i ng t ha t s he ha d br e a c he d t he c ont r a c t by r e f us i ng t o c l os e t he s a l e on J a nua r y 28, 1994. The C ha nc e l l or f ound t ha t M s . W or s ha m ha d a c t e d unr e a s ona bl y w he n s he r e f us e d t o c l os e be c a us e t he a m ount due on t he M i c he l m

or t ga ge w

a s di s put e d. The C ha nc e l l or s t a t e d, a s a l r e a dy not e d, t ha t t he a ppr opr i a t e t hi ng t o do w

oul d be t o pl a c e t he di s put e d f unds i n e s c r ow a nd c ont i nue w i t h t he c l os i ng. Thi s pos i t i on w a s s uppor t e d by t he t e s t i m ony of t he c l os i ng a ge nt pr e s e nt w he n t he pa r t i e s w e r e t o c l os e on J a nua r y 28.

N e xt , M s . W or s ha m a s s e r t s t ha t f or va r i ous r e a s ons , s pe c i f i c pe r f or m

a nc e s houl d not ha ve be e n gr a nt e d i n t hi s c a s e . Fi r s t , M

s . W or s ha m a r gue s t ha t t he pr ope r t y a t i s s ue w a s not uni que a nd t ha t a n a w a r d of da m

a ge s w oul d ha ve be e n a n a de qua t e r e m e dy. I n doi ng s o M s . W or s ha m ha s of f e r e d pr oof t ha t t he r e w a s ot he r pr ope r t i e s i n t he a r e a of t he s ubj e c t pr ope r t y t ha t w e r e of s i m i l a r v a l u e andw

hi c hh a ds i m

i l a r ch a r act e r i s t i c s . W e b e l i e v e t h a t M

s . W or s h a m m i s c o n s t r u e s t he l a w o f s p eci f i c p e r f or m

a nce. "[ S ] p eci f i c p e r f or m a nce i s r e g a r de das a ppr opr i a t e w

he n de a l i ng w

i t h c ont r a c t s f or t he c onve ya nc e of r e a l pr ope r t y be c a us e r e a l pr ope r t y i s uni que , a nd m or e of t e n t ha n not , a n a w

a r d of da m

a ge s i s s i m

pl y not a n a de qua t e r e m e dy. " G R W Ent e r pr i s e s , Inc . v . D a v i s , 797 S . W

. 2d 606 ( Te nn. A

pp. 1990) . A s e vi de nt f r om

he r a t t e m

pt s t o pr ove t ha t t he s ubj e c t pr ope r t y i s not uni que , M

s . W or s ha m doe s not r e a l i z e t ha t by i t s ve r y7

na t ur e , r e a l pr ope r t y i s uni que . She poi nt s t o no e xa m pl e of a Te nn e s s e e c o ur t f i n di n g , e xp lic itlyor im p lic itly , th a t a p i e c e of r e a l pr ope r t y w a s not uni que . W e a r e not pr e pa r e d t o m a ke s uc h a f i ndi ng r e ga r di ng t he pr ope r t y t ha t i s t he s ubj e c t of t hi s di s put e . The C

ha nc e l l or m

a de s pe c i f i c f i ndi ngs t ha t t hi s pr ope r t y w

a s i nde e d uni que a s t o t he Ta t um s be c a us e i t w

a s l o cat e dacr o s s t he s t r eet f r o m a g o l f cour s e w

he r e M r . Ta t um pl a ys r e gul a r l y a nd w a s r e a s ona bl y pr i c e d.

H ow e ve r , w

e do not hol d t ha t be c a us e r e a l pr ope r t y i s uni qu e s p eci f i c p e r f or m a nce i s al w

a y s anav a i l a b l e r e m e dy . M

s . W or s ha m c or r e c t l y c i t e s a ut hor i t y f or t he r ul e t ha t s pe c i f i c pe r f or m

a nc e s houl d not be gr a nt e d w he r e i t w

oul d pr oduc e a ha r s h, i ne qui t a bl e , or oppr e s s i ve r e s ul t . C ol oni a l Fune r a l H om e , I nc . v . H a r o l dB. G

ilm or e , e t a l . , a n unpubl i s he d opi ni on of t hi s C our t , f i l e d i n N

a s hvi l l e on Se pt e m be r 23, 1994. I n C ol oni al F une r al H

om e , t hi s C

our t de ni e d s pe c i f i c pe r f or m a nc e of a c o nt r act f or t he s a l e o f r eal pr op e r t yw he r e anel de r l ys e l l e r , not r e pr e s e nt e d by c ouns e l , gr a nt e d a n i nt e r e s t - f r e e , uns e c ur e d, nonr e c our s e pr om

i s s or y not e t o t he pur c ha s e r t o f i na nc e t he s a l e . M s . W or s ha m poi nt s t o no e vi de nc e t ha t t he r e s ul t w oul d be ha r s h, oppr e s s i ve or i ne qui t a bl e s houl d s pe c i f i c pe r f or m a nc e be gr a nt e d. Thus , w

e hol d t ha t t he C ha nc e l l or r ul e d c or r e c t l y i n f i ndi ng s p eci f i c p e r f or m

a nce t ob e t he appr opr i a t e r e m e dyi nt he pr e s e nt s i t u a t i o n .8 M s . W or s h a m al s oas s e r t s t h a t t he C h a ncel l or er r e di n a w a r di ng m

one t a r y da m

a ge s t o t he Ta t um s . The C

ha nc e l l or f ound t h a t b ecau s e t he s a l e di dn o t cl o s e , t he Ta t um s w i l l b e f or cedt o pa y t he i r m

or t ga ge a t a r a t e of e i ght a nd one

- ha l f pe r c e nt ove r 30 ye a r s i ns t e a d of s e ve n a nd one

- ha l f pe r c e nt ove r 30 ye a r s . The C ha nc e l l or a w

a r de d t he Ta t um

s t he pr e s e nt va l ue of t hi s di f f e r e nt i a l . H

e al s oaw

a r de dt he m

v a r i o u s exp e n s e s as s o c i a t e d w i t h r e ne w

a l of t he i r l oa n c om m i t m e nt w hi c h w oul d not ha ve be e n i nc ur r e d ha d M

s . W or s ha m c l os e d t he s a l e a s w e ha ve f ound t ha t s he w a s obl i ga t e d unde r c ont r a c t t o do. The C ha nc e l l or a l s o a w a r de d a t t or ne y' s f e e s a s pr ovi de d unde r t he c ont r a c t .

Te nn e s s ee cour t s h a v e aw a r de dm

o n e t a r yd a m

a g e s al o n g w i t ht he s p eci f i c p e r f or m a nce o f a r eal es t a t e cont r act . A decr ee f or s p eci f i c p e r f or m a nce s e l do m

br i n g s a bout pe r f or m

a nc e w i t hi n t he t i m

e t ha t t he c ont r a c t r e qui r e s . I nt hi s r e s p ect , s u c ha decr ee i s n ear l y a l w a y s a decr ee f or l e s s t h a nex act andco m p l e t e pe r f or m

a nc e . For t he pa r t i a l br e a c h i nvol ve d i n t he de l a y or i n ot he r e xi s t i ng non- pe r f or m a nc e , m

one y d a m a g e s w i l l b e aw

a r de dal o n gw

i t ht he decr ee f or s p eci f i c p e r f or m

a nce. Bus h v. Ca t he y , 598 S . W . 2d 777, 783 ( Te nn. A pp. 1979) . The a ddi t i ona l f i na nc i ng c os t s a nd a t t or ne y' s f e e s i nc ur r e d by t he Ta t um

s w e r e t he n or m

a l andf or e s eeab l e con s e qu e nce o f M s . W or s h a m ' s br each . M s . W or s ha m a r gue s t ha t t he Ta t um s ha d a dut y t o m i t i ga t e t he i r da m a ge s by f i ndi ng a not he r hous e . U nde r t he l a w9

of Te nne s s e e , a pa r t y ha s t he dut y t o us e r e a s ona bl e e f f or t s t o m itig a t e d a m

a g e s . Inlight o f the f a c t th a t w e h a v e he l dth a t r e a l pr ope r t y i s uni que a nd be c a us e w e ha ve f ound t ha t t he Ta t um s a r e e nt i t l e d t o s pe c i f i c pe r f or m a nc e , i t w

oul d be unr e a s ona bl e t o r e qui r e t he Ta t um s t o f i nd a not he r hous e t o m i t i ga t e t he i r d a m a g e s . M

s . W or s ha m a r gue s t ha t t he C ha nc e l l or e r r e d i n f a i l i ng t o gr a nt a j udgm

e nt a ga i ns t M

s . M i c he l . M

s . W or s ha m a r gue s t ha t M s . M i c he l a nd he r a t t or ne y a gr e e d t o a s e t t l e m e nt of t he a m

ount ow e d M s . M i c he l a nd t he r e a f t e r de m a nde d a hi ghe r a m ount . M

s . W or s ha m t hus a r gue s t ha t M s . M i c he l s houl d be pe na l i z e d unde r T. C. A . 66- 25- 102, w

hi c h gr a nt s a pe na l t y of $100 f or a r bi t r a r i l y a nd unr e a s ona bl y f a i l i ng t o r e l e a s e a de bt s e c ur e d by r e a l pr ope r t y.

M

s . W or s h a m a l o n e s ub m

itte de v i de n c e a t tr i a l a s tothe a s s e r t e dagr eem

e nt . She adm

i t t e dt h a t i t w

a s n o t r e du cedt o w r i t i ng . Byf i ndi ngf or M s . M i c he l, t he C

h a n c e l l or , b y i m p lic a tio n , d i s c r e dite dM s . W or s h a m ' s te s tim

o nyor f e lt th a t the a gr e e m e nt r e qui r e d a w

r i t i ng. M

s . W or s ha m of f e r s no f a c t ua l ba s i s f or us t o ove r t ur n t he f i ndi ng of t he C ha nc e l l or on t hi s i s s ue a nd w

e a r e not i nc l i ne d t o do s o.

M s W or s ha m a r gue s t ha t t he C ha nc e l l or e r r e d i n a w a r di ng M s . M i c he l he r a t t or ne y' s f e e s a s pr ovi de d f or i n bot h t he not e a nd t he de e d of t r us t . M s . W or s ha m a r gue s t ha t a t t or ne y' s f e e s10

s houl d be l i m

i t e d t o f e e s i nc ur r e d f r om pr ot e c t i on of t he s e c ur i t y. H

ow e ve r , t he not e a l l ow s r e c ove r y f or t he c ol l e c t i on of m one ys due unde r t he not e . The c r ux of t he di s put e be t w e e n M s . W or s ha m a nd M s . M i c he l w

a s t he a m

ount due on t he not e . A t t or n e y ' s f ees ar e a di s c r e t i o n a r yr e m e dyandw

e ar e n o t i nc l i ne d t o ove r t ur n t he f i ndi ngs of t he C ha nc e l l or . Fi na l l y, M

s . W or s ha m a r gue s t ha t t he C ha nc e l l or e r r e d i na dm ittingint oe v i de n c e a le tte r f r o m M s . M i c he l ' s a ttor n e yin vi ol a t i on of t he r ul e a ga i ns t he a r s a y. R ul e 801 of t he Te nne s s e e R u l e s o f Ev i de nce. The l e t t e r w a s obj ect e dt oat t r i a l b y c ouns e l f or M

s . W or s ha m a nd t he obj e c t i on w a s s us t a i ne d. H o w e v e r , t he r ecor ds h o w s t h a t t he l e t t e r w a s adm i t t e d . The r e ha s be e n no s how

i ng t ha t t he l e t t e r w a s r e l i e d on by t he C ha nc e l l or . Thus , t he e vi de nc e ha d no m a t e r i a l be a r i ng on t he i s s ue s de c i de d a nd w a s t hus ha r m

l e s s e r r or . For t he f or e goi ng r e a s ons t he j udgm e nt of t he Tr i a l C our t i s a f f i r m

e d a nd t he c a us e r e m a nde d f or s uc h f ur t he r pr oc e e di ngs a s m

a y be ne c e s s a r y a nd c ol l e c t i on of c os t s be l ow . C os t s of a ppe a l a r e a dj udge d a ga i ns t M s . W or s ha m .

_______________________________ H ous t on M

. G odda r d, P. J . CONC UR:

________________________________ D on T. M

c M ur r a y, J .11

________________________________ C h a r l e s D

. Su s a n o , J r ., J .