# FILED October 3, 1995 Cecil Crowson, Jr. App ellate C ou rt Clerk I N THECOUR

TOFAPPEALSOFTENNES SEE EA STER N SEC TI O N

EAR LM ANEY ) BR ADLEY C

OUNTY ) 03A 01- 9502- C

H - 00065 Pl a i ntif f

- A

pp e lla nt )

) ) v. ) HON. EAR LH. HENLEY, ) C HANC ELLOR ) PA U LJ . PA

R K ER , Indi vi du a lly ) a n dd/ b/ a PR

EC I OUSW OODS ) AND M ETALS ) ) D e f e nda nt - A

ppe l l e e ) AFFI R M ED AND R

EM ANDED

J OEA. CONNER

OFC HATTANOOGA FOR

APPELLANT J AM ESS . THOM

PS ON OFC

LEVELAND FOR

APPELLEE

O PI N I O N

G odda r d, P. J .

Ea r l M a ne y , th e Pl a i ntif f , a n dPa u l J . Pa r ke r , th e D e f e nd a nt , w

e r e t he p a r t i e s t oa w r i t t e nf i v e - y ear l eas e f or c om m e r c i a l pr ope r t y i n C l e ve l a nd. M

r . Pa r ke r , w

ho ope r a t e d a w oodw or ki ng/ m

a c hi ne s hop on t he pr e m i s e s , t ook pos s e s s i on of t he pr ope r t y on Se pt e m be r 8, 1989. La t e i n 1990, a f t e r oc c upyi ng t he pr ope r t y f or s l i ght l y m or e t ha n one ye a r , he va c a t e d t he2

pr e m i s e s . O

n M a y 6, 1993, M

r . M a ne y, t he l a ndl or d, f i l e d s ui t i n t he C ha nc e r y C

our t of Br a dl e y C ount y s e e ki ng ba c k r e nt a nd d a m a g e s f or r e p a i r s tothe b uildi ng . A f t e r a tr i a l, th e C ha nc e l l or de t e r m

i ne d t ha t M

r . Pa r ke r " ha d a r i ght t o a ba ndon t he pr e m i s e s , " but aw

a r de dd a m

a g e s t oco m

p e n s a t e M

r . M a ne yf or e xpe ns e s he i nc ur r e d m a ki ng r e pa i r s t o t he pr ope r t y. M r . M a ne y a ppe a l s a nd pr e s e nt s t he f ol l ow i ng i s s ue s f or r e vi e w : 1. The C

ha nc e l l or e r r e d i n hol di ng t ha t t he D e f e nda nt ha d a r i ght t o a ba ndon t he pr e m i s e s . 2. The C

ha nc e l l or e r r e d i n f a i l i ng t o hol d t ha t D e f e nda nt w

a i ve d hi s r i ght t o a ba ndon by r e m a i ni ng on t he pr ope r t y f or s i x m ont hs a nd pa yi ng r e nt f or ni ne m o nt h s af t e r t he al l e g e dn o t i ce t ov acat e . 3. The C

ha nc e l l or e r r e d by a dm i t t i ng e vi de nc e w hi c h s houl d ha ve be e n ba r r e d by t he St a t ut e of Fr a uds . 4. The C

ha nc e l l or e r r e d i n hol di ng t ha t t he A ppe l l a nt w

a s not e nt i t l e d t o f ut ur e r e nt f or t he ba l a nc e of t he l e a s e d pe r i od; i n f a i l i ng t o a w a r d A ppe l l a nt t he e nt i r e a m ount e xpe nde d f or r e m ova l of de br i s a nd r e pa i r of t he bui l di ng s ubs e que nt t o t he A ppe l l e e va c a t i ng t he pr e m i s e s ; a nd i n f a i l i ng t o a w a r d t he A ppe l l a nt hi s e xpe ns e s a nd a t t or ne y' s f e e s i nc ur r e d i n e nf or c i ng t he pr ovi s i ons of t he l e a s e . Soon a f t e r M

r . Pa r ke r oc c upi e d t he pr e m i s e s , t he r e l a t i o n s hi pb e t w eent he p a r t i e s b ecam e r a t he r co nt e nt i ou s . The r ecor di n di cat e s t h a t t he p a r t i e s cl a s he do v e r a v a r i e t yo f m a t t e r s ge ne r a l l y r e l a t e d t o t he c ondi t i on of t he pr e m i s e s w hi l e i n M r . Pa r ke r ' s pos s e s s i on. A t s om e poi nt i n t he l a t e s pr i ng or s um m e r of 1990, t he pa r t i e s a r gue d ove r r e s pons i bi l i t y f or a n ove r he a d door w

hi c h ha d f a l l e n. M r . Pa r ke r c l a i m

s t ha t dur i ng t he c our s e of t he a r gum e nt M r . M a ne y s a i d: " Y

ou ge t your s t uf f3

a nd ge t out . " To w hi c h M r . Pa r ke r a l l e ge s he r e pl i e d: " [ A ] s s oon a s I c a n f i nd a bui l di ng, t ha t ' s e xa c t l y w ha t I ' l l do. " M

r . Pa r ke r ' s t e s t i m

ony i s c or r obor a t e d by t w o f or m e r e m pl oye e s a nd a not he r t e na nt of M r . M a ne y' s , but M

r . M a ne y de ni e s t ha t t he e x c h a ng e o ccur r e d .

Soon a f t e r t he c onve r s a t i on r e ga r di ng t he ga r a ge door , M r . Pa r ke r be ga n s e a r c hi ng f or a not he r bui l di ng. By N ove m be r of 1990 M r . Pa r ke r ha d m

ove d hi s bus i ne s s t o a ne w l oc a t i on. H ow e ve r , M

r . Pa r ke r c ont i nue d pa yi ng r e nt t hr ough J a nua r y of 1991 be c a us e a ve hi c l e he ow ne d r e m

a i ne d on t he pr e m i s e s unt i l t ha t t i m e . Tw om o nt h s af t e r M

r . Pa r ke r ceased p a yi n gr e nt , i nM a r c h of 1991, M

r . M a ne y l e f t a m

e s s a ge on M

r . Pa r ke r ' s a ns w

e r i ng m a c hi ne a dvi s i ng hi m t ha t t he y ne e de d t o di s c us s t he s i t ua t i on. M r . Pa r ke r pr om

pt l y r e t ur ne d t he c a l l , but f a i l e d t o r e a c h M r . M a ne y. A

f t e r m a ki ng s om

e r e pa i r s t o t he bui l di ng, M r . M a ne y r e l e t t he pr e m

i s e s . A

l t hough t he t w

o oc c a s i ona l l y s a w e a c h ot he r a r ound t ow

n, t he y ha d no f ur t he r c ont a c t r e ga r di ng t he l e a s e d pr e m i s e s until M

r . M a ne yf ile dthi s s uit.

M r . M a ne y' s f i r s t t hr e e i s s ue s hi nge on t he f ol l ow i ng que s t i on: W

a s M r . Pa r ke r r e l i e ve d of hi s obl i ga t i ons unde r t he l eas e , i f s o , w

he nw a s t he l eas e t e r m i n a t e d ? I nhi s M e m or a ndum O pi ni on, t he C

ha nc e l l or de t e r m

i ne d t ha t " [ t ] he r e a r e e nough f a ul t s on e a c h s i de t o i nva l i da t e t he c ont r a c t " a nd t ha t , i n vi e w of a l l t he e vi de nc e , M r . Pa r ke r " ha d a r i ght t o a ba ndon t he pr e m i s e s . " A

l t hough t he C

ha nc e l l or doe s not s pe c i f y t he l e ga l4

gr ounds f or hi s de c i s i on, t he r e m e dy s ugge s t s t ha t he e i t he r gr a nt e d a r e s c i s s i on of t he l e a s e c ont r a c t , or f ound t ha t t he l a ndl or dco m

m i t t e da br eachs om a t e r i a l as t odi s c h a r g e t he t e na nt f r om

hi s dut y t o pa y r e nt . U nf or t una t e l y, t he e vi de nc e doe s not s uppor t t he C ha nc e l l or ' s de c i s i on. The r e c or d doe s not r e f l e c t s uf f i c i e nt gr ounds t o s uppor t a r e s c i s s i on, nor doe s i t r e f l ect t h a t M

r . M a ne yco m

m i t t e da br eachs om a t e r i a l t h a t i t ope r a t e d t o di s c ha r ge M r . Pa r ke r ' s l e a s e obl i ga t i ons . I nhi s br i e f , M

r . Pa r ke r ar gu e s t h a t t he al l e g e d e xc ha nge be t w

e e n hi m

s e l f a nd M

r . M a ne y i n w

hi c h he a gr e e d t o " ge t out " a m

ount e d t o a n a gr e e m e nt t o t e r m

i na t e t he l e a s e by m ut ua l a s s e nt . Te nne s s ee f o l l o w s t he g e ne r a l r u l e t h a t w he np a r t i e s a gr ee t ot e r m

i n a t e a l eas e t ow hi c ht he St a t ut e o f Fr a u d s i s a pp l i c a b l e , the te r m i na t i n gins t r um

e nt m u s t a l s ob e inw

r i t i ng . 17 Te nne s s e e J ur i s pr ude nc e , La ndl or d a nd Te na nt § 29 ( 1994) [ he r e i na f t e r La ndl or d a nd Te na nt ] ; s ee al s o 3A Thom ps on on R

e a l Pr ope r t y , § 1315 ( 1981) [ he r e i na f t e r Thom ps on ] . The c our t s w ill not e nf or c e a pa r ol a gr e e m e nt t o s ur r e nde r , s uc h a s t he one a l l e ge d he r e . H

ow e ve r , t he doc t r i ne of s ur r e nde r of t he t e r m by op e r a t i o no f l a w

canop e r a t e t ot e r m i n a t e a l eas e w

i t h out t he r e qui r e m

e nt of a w

r i t i ng.

U n de r Te nne s s ee l a w , a s ur r e nde r o ccur s w he na t e n a nt a ba ndons t he l e a s e d pr e m i s e s a nd t he l a ndl or d a c c e pt s t he a ba ndonm

e nt , e i t he r e xpr e s s l y or t hr ough a c t s i ndi c a t i ng a c qui e s c e nc e . La ndl or d a nd Te na nt § 29. A s ur r e nde r of t he t e r m5

by ope r a t i on of l a w a r i s e s w

he n t he pa r t i e s a c t i n a m a nne r i m pl yi ng a m

ut ua l a gr e e m

e nt t o t e r m

i na t e t he l a ndl or d a nd t e na nt r e l a t i o n s hi p , y e t o f f e r andaccept a nce ar e no t cl ear l ypr e s e nt . Thom ps on , s upr a § 1344. The que s t i on of w he t he r t he a c t s of t he pa r t i e s i ndi c a t e a m e e t i ng of t he m

i nds on t he i s s ue of s ur r e nde r i s one f or t he f a c t - f i nde r . I d . Si nce t hi s i s anapp eal o f a b e nc ht r i a l andt he r ecor dr e f l ect s a f u l l evi de nt i a r yhear i n g , w e a r e a bl e t o m

a ke t ha t f i ndi ng i n our de novor e vi e w . C our t s w

i l l f i nd a n a ba ndonm e nt of t he l e a s e d pr e m i s e s w he r e t he t e na nt doe s a n a c t or a c t s e xhi bi t i ng t he i nt e nt t o a ba ndon a nd r e s ul t i ng i n t he a bs ol ut e r e l i nqui s hm e nt of t he pr e m i s e s . La ndl or d a nd Te na nt § 29. M r . Pa r ke r ' s a c t of m ovi ng hi s bus i ne s s f r om t he pr ope r t y a t i s s ue , c oupl e d w i t h hi s di s c ont i nui ng t he r e nt pa ym e nt s , s uf f i c i e nt l y i ndi c a t e s hi s i nt e nt t o a ba ndon t he pr e m i s e s . O ur de c i s i on i n t hi s c a s e t ur ns upon w he t he r M

r . M a ne y s houl d be de e m

e d t o ha ve a c c e pt e d M r . Pa r ke r ' s a ba ndonm e nt . O

ur Supr e m e C our t a ddr e s s e d t hi s i s s ue i n K a r ns v. V

e s t e r M

ot or C o. , 161 Te nn. 331, 30 S . W . 2d 245 ( 1930) . I n Ka r n s , t he Supr e m e C our t , i n quot i ng f r om 35 C or pus J ur i s , 1093, a dopt e d t he f ol l ow i ng r ul e ( 161 Te nn. a t pa ge 333; 30 S . W . 2d a t pa ge 245) :

The accept a nce o f a s ur r e nde r i s n o t i m p l i e df r o m t he m e r e f act o f a r e l e t t i n go f t he de m i s e dpr e m

i s e s , a l t hough t a ke n i n c onne c t i on w i t h ot he r c i r c um

s t a nc e s t he r e l e t t i ng m

a y a m ount t o a n a c c e pt a nc e a nd w or k a s ur r e nde r of t he t e r m by ope r a t i on of l a w . W he t he r a r e l e t t i ng s how

s a n a c c e pt a nc e of t he s ur r e nde r de pe nds6

on w he t he r t he l a ndl or d r e l e t s on t he a c c ount of t he t e na nt or on hi s ow n a c c ount . The C our t , c ogni z a nt of t he r ul e r e qui r i ng m i t i ga t i on o f d a m a g e s , al s os t a t e d : "[ T] he l a ndl or dm a yr e f u s e t oaccept a s ur r e nde r , a nd a

fte r n o tic e toth e le s s e e o f h i s in t e n tiontodo s o, r e l e t t he pr e m i s e s f or t he b e s t r e nt ob t a i n a b l e , andr eco v e r t he di f f e r e nce b e t w eent he r e nt r e s e r v e di nt he l eas e andt he r e nt r e c e i ve d f r om t he s ubs e que nt t e na nt . " ( Em pha s i s a dde d. )

Thu s it is quite c l e a r th a t a la n dl or dw h or e l e t s a ba ndone d pr ope r t y but w i s he s t o a voi d t he doc t r i ne of s ur r e nde r by ope r a t i on of l a w , m us t not i f y t he t e na nt t ha t t he r e l e t t i ng i s onl y i n m

i t i ga t i on of da m

a ge s a nd doe s not i ndi c a t e a n i nt e nt t o a c c e pt t he t e na nt ' s a ba ndonm e nt . The r e c or d i n t hi s c a s e i n di cat e s t h a t M

r . M a ne yl e f t a m

e s s a g e r e g a r di n gt he l eas e o n M r . Pa r ke r ' s a ns w

e r i ng m

a c hi ne a ppr oxi m

a t e l y t w

o m ont hs a f t e r r e c e i vi n gM

r . Pa r ke r ' s la s t r e nt p a y m e nt. M

r . Pa r ke r te s tif i e d t ha t he a t t e m

pt e d t o r e t ur n t he c a l l but got no a ns w e r . M r . M a ne y m a de no f ur t he r a t t e m pt t o not i f y M

r . Pa r ke r of hi s i nt e nt i ons r e ga r di ng t he pr ope r t y e ve n t hough t he y oc c a s i ona l l y s a w e a c h ot he r a r ound t ow n a nd M

r . Pa r ke r ' s a ddr e s s a nd t e l e phone num b e r r e m

a i ne dt he s a m

e .

W e f i nd t ha t M

r . M a ne y' s s i ngl e a t t e m pt t o t e l e phone M r . Pa r ke r r e ga r di ng t he l e a s e i s not s uf f i c i e nt t o c ons t i t ut e not i c e of a n i nt e nt t o r e l e t on M r . Pa r ke r ' s a c c ount i n m i t i ga t i on of da m

a ge s . The r e f or e , M r . M a ne y' s s ubs e que nt7

r e l e ttingo f the pr op e r t yis a na c t inc o n s i s t e nt w iththe l a ndl or d a nd t e na nt r e l a t i ons hi p w hi c h e vi de nc e s a n i nt e nt t o a c c e pt M

r . Pa r ke r ' s a ba ndonm e nt of t he pr e m

i s e s . Ta ke n t oge t he r , t he a c t s of M

r . Pa r ke r a nd M

r . M a ne y c ons t i t ut e a s ur r e nde r of t he t e r m

b yop e r a t i o no f l a w . The r e f or e , M

r . Pa r ke r w

a s r e l i e v e d of hi s obl i ga t i ons unde r t he l e a s e , not be c a us e of t he a l l e ge d p a r o l agr eem

e nt t ot e r m

i n a t e , b ut b ecau s e o f M r . M a ne y ' s accept a nce o f M

r . Pa r ke r ' s ab a ndo nm e nt o f t he pr e m

i s e s . The onl y r e m

a i ni ng i s s ue s M

r . M a ne y r a i s e s r e ga r d t he C ha nc e l l or ' s a w

a r d of da m

a ge s , a nd hi s r e f us a l t o a w a r d e xpe ns e s a nd a t t or ne y' s f e e s . M r . M a ne y a ppe a l s t he a m ount of da m

a ge s a w a r de db yt he C

h a ncel l or f or r e p a i r s t ot he pr e m i s e s af t e r M

r . Pa r ke r ' s ab a ndo nm e nt . The C

h a ncel l or hear da gr eat deal o f t e s t i m ony r e ga r di ng da m a ge s , he vi e w

e d a num

be r of phot ogr a phs a nd a num

be r of i nvoi c e s a nd r e c e i pt s . A f t e r r e vi e w

i ng t he e vi de nc e , t he C

ha nc e l l or de t e r m

i ne d t ha t M

r . M a ne y ha d pr ove n $1, 250 i n da m

a ge s t o a r e a s ona bl e c e r t a i nt y. The e vi de nc e doe s not pr e ponde r a t e a ga i ns t t he C ha nc e l l or ' s f i ndi ng; he nc e , w e w i l l not di s t ur b i t .

The f i na l i s s ue M r . M a ne y pr e s e nt s i s w he t he r t he C ha nc e l l or s houl d ha ve a w a r de d e xpe ns e s a nd a t t or ne y' s f e e s a s pr ovi de d i n t he l e a s e f or " e nf or c i ng a ny pr ovi s i on of t he l e a s e . " The onl y pr ovi s i on of t he l e a s e a c t ua l l y e nf or c e d t hr ough t hi s a c t i on i s t he one r e qui r i ng M r . Pa r ke r t o s ur r e nde r t he pr e m i s e s i n t he s a m

e c ondi t i on a nd r e pa i r a s he r e c e i ve d t he m , or di na r y8

w ear andt ear ex cept e d . W hi l e s o m

e s m a l l p e r cent a g e o f t he a t t or ne y f e e s M

r . M a ne y ha s e xpe nde d on t hi s c a s e c a n be a t t r i but e d t o hi s da m a ge r e c ove r y, w

e de c l i ne t o e nf or c e t hi s pr ovi s i on of t he l e a s e be c a us e M r . M a ne y f i l e d s ui t w i t hout gi vi ng M

r . Pa r ke r a n oppor t uni t y t o s e t t l e t he i r di s put e . W e b e l i e v e t h a t b e f or e M r . M a ne yi s ent i t l e dt oo ne r a t e M r . Pa r ke r w

i t h a t t or ne y f e e s , i t w a s i nc um

be nt upon M

r . M a ne y t o gi ve not i c e of hi s c l a i m be f or e r e s or t i ng t o l e ga l a c t i on.

For t he f or e goi ng r e a s ons t he j udgm e nt of t he C h a ncel l or i s af f i r m e dandt he cau s e r e m a nde df or co l l ect i o no f 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 t he A ppe l l a nt a nd hi s s ur e t y.

_______________________________ H ous t on M

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

________________________________ H e r s c he l P. Fr a nk s , J .

________________________________ C l i ffor dE. S a n de r s , Sr . J .