FILED

October 3, 1995

Cecil Crowson, Jr.

Appellate Court Clerk

I N THE COURT OF APPEALS OF TENNESSEE

EASTERN SECTI ON

EARL MANEY ) BRADLEY COUNTY

 ) 03A01- 9502- CH- 00065

Pl a i ntif f - Appe lla nt )

 )

)

v. ) HON. EARL H. HENLEY,

) CHANCELLOR

)

PAUL J . PARKER, Indi vi dua lly )

a nd d/ b/ a PRECI OUS WOODS )

AND METALS )

 )

De f e nda nt - Appe l l e e ) AFFI RMED AND REMANDED

J OE A. CONNER OF CHATTANOOGA FOR APPELLANT

J AMES S. THOMPSON OF CLEVELAND FOR APPELLEE

O P I N I O N

 Godda r d, P. J .

Ea r l Ma ne y, the Pl a i ntif f , a nd Pa ul J . Pa r ke r , the

De f e nda nt , we r e t he pa r t i e s t o a wr i t t e n f i ve - year l eas e f or

c omme r c i a l pr ope r t y i n Cl e ve l a nd. Mr . Pa r ke r , who ope r a t e d a

woodwor ki ng/ ma c hi ne s hop on t he pr e mi s e s , t ook pos s e s s i on of t he

pr ope r t y on Se pt e mbe 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 mor e t ha n one ye a r , he va c a t e d t he
2

pr e mi s e s . On Ma y 6, 1993, Mr . Ma ne y, t he l a ndl or d, f i l e d s ui t i n

t he Cha nc e r y Cour t of Br a dl e y Count y s e e ki ng ba c k r e nt a nd

da ma ge s f or r e pa i r s to the buildi ng. Af t e r a tr i a l, the

Cha nc e l l or de t e r mi ne d t ha t Mr . Pa r ke r " ha d a r i ght t o a ba ndon t he

pr e mi s e s , " but awa r de d da ma ge s t o compe ns a t e Mr . Ma ne y f or

e xpe ns e s he i nc ur r e d ma ki ng r e pa i r s t o t he pr ope r t y. Mr . Ma ne y

a ppe a l s a nd pr e s e nt s t he f ol l owi ng i s s ue s f or r e vi e w:

1. The Cha nc e l l or e r r e d i n hol di ng t ha t t he

De f e nda nt ha d a r i ght t o a ba ndon t he pr e mi s e s .

2. The Cha 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

De f e nda nt wa i ve d hi s r i ght t o a ba ndon by r e ma i ni ng on

t he pr ope r t y f or s i x mont hs a nd pa yi ng r e nt f or ni ne

mont hs af t e r t he al l e ge d not i ce t o vacat e .

3. The Cha nc e l l or e r r e d by a dmi t t i ng e vi de nc e

whi 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 Cha nc e l l or e r r e d i n hol di ng t ha t t he

Appe l l a nt wa 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 wa r d

Appe l l a nt t he e nt i r e a mount e xpe nde d f or r e mova 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

Appe l l e e va c a t i ng t he pr e mi s e s ; a nd i n f a i l i ng t o a wa r d

t he Appe 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 Mr . Pa r ke r oc c upi e d t he pr e mi s e s , t he

r e l a t i ons hi p be t ween t he pa r t i e s became r a t he r cont e nt i ous . The

r ecor d i ndi cat e s t ha t t he pa r t i e s cl a s he d ove r a va r i e t y of

ma 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 mi s e s whi l e

i n Mr . Pa r ke r ' s pos s e s s i on. At s ome poi nt i n t he l a t e s pr i ng or

s umme 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 whi c h ha d f a l l e n. Mr . Pa r ke r c l a i ms t ha t dur i ng

t he c our s e of t he a r gume nt Mr . Ma ne y s a i d: " You ge t your s t uf f
3

a nd ge t out . " To whi c h Mr . 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 wha t I ' l l do. " Mr .

Pa r ke r ' s t e s t i mony i s c or r obor a t e d by t wo f or me r e mpl oye e s a nd

a not he r t e na nt of Mr . Ma ne y' s , but Mr . Ma ne y de ni e s t ha t t he

e xc ha nge occur 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 ,

Mr . 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 Nove mbe r of

1990 Mr . Pa r ke r ha d move d hi s bus i ne s s t o a ne w l oc a t i on.

Howe ve r , Mr . 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 owne d r e ma i ne d on t he pr e mi s e s unt i l t ha t

t i me . Two mont hs af t e r Mr . Pa r ke r ceased pa yi ng r e nt , i n Ma r c h

of 1991, Mr . Ma ne y l e f t a me s s a ge on Mr . Pa r ke r ' s a ns we r i ng

ma 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.

Mr . Pa r ke r pr ompt 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 Mr .

Ma ne y. Af t e r ma ki ng s ome r e pa i r s t o t he bui l di ng, Mr . Ma ne y

r e l e t t he pr e mi s e s . Al t hough t he t wo oc c a s i ona l l y s a w e a c h ot he r

a r ound t own, 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 mi s e s until Mr . Ma ne y f ile d thi s s uit.

Mr . Ma 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 owi ng

que s t i on: Wa s Mr . 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, whe n wa s t he l eas e t e r mi na t e d? I n hi s Me mor a ndum

Opi ni on, t he Cha nc e l l or de t e r mi 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 , Mr . Pa r ke r " ha d a r i ght t o a ba ndon t he

pr e mi s e s . " Al t hough t he Cha nc e l l or doe s not s pe c i f y t he l e ga l
4

gr ounds f or hi s de c i s i on, t he r e me 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 d commi t t e d a br each s o ma t e r i a l as t o di s c ha r ge t he

t e na nt f r om hi s dut y t o pa y r e nt . Unf or t una t e l y, t he e vi de nc e

doe s not s uppor t t he Cha 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 ha t Mr . Ma ne y commi t t e d a br each s o ma t e r i a l t ha t i t

ope r a t e d t o di s c ha r ge Mr . Pa r ke r ' s l e a s e obl i ga t i ons .

I n hi s br i e f , Mr . Pa r ke r ar gue s t ha t t he al l e ge d

e xc ha nge be t we e n hi ms e l f a nd Mr . Ma ne y i n whi c h he a gr e e d t o " ge t

out " a mount e d t o a n a gr e e me nt t o t e r mi na t e t he l e a s e by mut ua l

a s s e nt . Te nne s s ee f ol l ows t he ge ne r a l r ul e t ha t whe n pa r t i e s

a gr ee t o t e r mi na t e a l eas e t o whi c h t he St a t ut e of Fr a uds i s

a ppl i c a bl e , the te r mi na t i ng ins t r ume nt mus t a l s o be in wr 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 Thomps on on Re a l

Pr ope r t y, § 1315 ( 1981) [ he r e i na f t e r Thomps on] . The c our t s will

not e nf or c e a pa r ol a gr e e me 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 . Howe ve r , t he doc t r i ne of s ur r e nde r of t he t e r m by

ope r a t i on of l a w can ope r a t e t o t e r mi na t e a l eas e wi t hout t he

r e qui r e me nt of a wr i t i ng.

Unde r Te nne s s ee l a w, a s ur r e nde r occur s whe n a t e na nt

a ba ndons t he l e a s e d pr e mi s e s a nd t he l a ndl or d a c c e pt s t he

a ba ndonme 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 m
5

by ope r a t i on of l a w a r i s e s whe n t he pa r t i e s a c t i n a ma nne r

i mpl yi ng a mut ua l a gr e e me nt t o t e r mi na t e t he l a ndl or d a nd t e na nt

r e l a t i ons hi p, ye t of f e r and accept a nce ar e not cl ear l y pr e s e nt .

Thomps on, s upr a § 1344. The que s t i on of whe 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 me e t i ng of t he mi 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 an appeal of a

be nc h t r i a l and t he r ecor d r e f l ect s a f ul l evi de nt i a r y hear i ng,

we a r e a bl e t o ma ke t ha t f i ndi ng i n our de novo r e vi e w.

Cour t s wi l l f i nd a n a ba ndonme nt of t he l e a s e d pr e mi s e s

whe 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 hme nt of t he

pr e mi s e s . La ndl or d a nd Te na nt § 29. Mr . Pa r ke r ' s a c t of movi 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 wi t h hi s

di s c ont i nui ng t he r e nt pa yme 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 mi s e s .

Our de c i s i on i n t hi s c a s e t ur ns upon whe t he r Mr . Ma ne y

s houl d be de e me d t o ha ve a c c e pt e d Mr . Pa r ke r ' s a ba ndonme nt . Our

Supr e me Cour t a ddr e s s e d t hi s i s s ue i n Ka r ns v. Ve s t e r Mot or Co. ,

161 Te nn. 331, 30 S. W. 2d 245 ( 1930) . I n Ka r ns , t he Supr e me

Cour t , i n quot i ng f r om 35 Cor pus J ur i s , 1093, a dopt e d t he

f ol l owi 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 of a s ur r e nde r i s not i mpl i e d f r om

t he me r e f act of a r e l e t t i ng of t he de mi s e d pr e mi s e s ,

a l t hough t a ke n i n c onne c t i on wi t h ot he r c i r c ums t a nc e s

t he r e l e t t i ng ma y a mount t o a n a c c e pt a nc e a nd wor 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. Whe t he r a

r e l e t t i ng s hows a n a c c e pt a nc e of t he s ur r e nde r de pe nds
6

on whe 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 own a c c ount .

The Cour t , c ogni z a nt of t he r ul e r e qui r i ng mi t i ga t i on

of da ma ge s , al s o s t a t e d: "[ T] he l a ndl or d ma y r e f us e t o accept a

s ur r e nde r , a nd afte r notic e to the le s s e e of hi s int e ntion to do

s o, r e l e t t he pr e mi s e s f or t he be s t r e nt obt a i na bl e , and r ecove r

t he di f f e r e nce be t ween t he r e nt r e s e r ve d i n t he l eas e and t 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 . " ( Empha s i s a dde d. )

Thus it is quite c l e a r tha t a la ndl or d who r e l e t s

a ba ndone d pr ope r t y but wi 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, mus 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 mi t i ga t i on of da ma 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 ndonme nt . The r e c or d i n t hi s c a s e

i ndi cat e s t ha t Mr . Ma ne y l e f t a me s s a ge r e ga r di ng t he l eas e on

Mr . Pa r ke r ' s a ns we r i ng ma c hi ne a ppr oxi ma t e l y t wo mont hs a f t e r

r e c e i vi ng Mr . Pa r ke r ' s la s t r e nt pa yme nt. Mr . Pa r ke r te s tif i e d

t ha t he a t t e mpt e d t o r e t ur n t he c a l l but got no a ns we r . Mr .

Ma ne y ma de no f ur t he r a t t e mpt t o not i f y Mr . 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 own a nd Mr . Pa r ke r ' s a ddr e s s a nd t e l e phone

numbe r r e ma i ne d t he s a me .

We f i nd t ha t Mr . Ma ne y' s s i ngl e a t t e mpt t o t e l e phone

Mr . 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 Mr . Pa r ke r ' s a c c ount i n

mi t i ga t i on of da ma ge s . The r e f or e , Mr . Ma ne y' s s ubs e que nt
7

r e l e tting of the pr ope r t y is a n a c t inc ons i s t e nt with the

l a ndl or d a nd t e na nt r e l a t i ons hi p whi c h e vi de nc e s a n i nt e nt t o

a c c e pt Mr . Pa r ke r ' s a ba ndonme nt of t he pr e mi s e s . Ta ke n t oge t he r ,

t he a c t s of Mr . Pa r ke r a nd Mr . Ma ne y c ons t i t ut e 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. The r e f or e , Mr . Pa r ke r wa s r e l i e ve 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

pa r ol agr eeme nt t o t e r mi na t e , but becaus e of Mr . Ma ne y' s

accept a nce of Mr . Pa r ke r ' s aba ndonme nt of t he pr e mi s e s .

The onl y r e ma i ni ng i s s ue s Mr . Ma ne y r a i s e s r e ga r d t he

Cha nc e l l or ' s a wa r d of da ma ge s , a nd hi s r e f us a l t o a wa r d e xpe ns e s

a nd a t t or ne y' s f e e s . Mr . Ma ne y a ppe a l s t he a mount of da ma ge s

a wa r de d by t he Cha ncel l or f or r e pa i r s t o t he pr e mi s e s af t e r Mr .

Pa r ke r ' s aba ndonme nt . The Cha ncel l or hear d a gr eat deal of

t e s t i mony r e ga r di ng da ma ge s , he vi e we d a numbe r of phot ogr a phs

a nd a numbe r of i nvoi c e s a nd r e c e i pt s . Af t e r r e vi e wi ng t he

e vi de nc e , t he Cha nc e l l or de t e r mi ne d t ha t Mr . Ma ne y ha d pr ove n

$1, 250 i n da ma 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 Cha nc e l l or ' s f i ndi ng; he nc e , we wi l l

not di s t ur b i t .

The f i na l i s s ue Mr . Ma ne y pr e s e nt s i s whe t he r t he

Cha nc e l l or s houl d ha ve a wa 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 Mr . Pa r ke r t o s ur r e nde r t he pr e mi s e s

i n t he s a me 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 y
8

wear and t ear except e d. Whi l e s ome s ma l l pe r cent a ge of t he

a t t or ne y f e e s Mr . Ma 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 ma ge r e c ove r y, we 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 Mr . Ma ne y f i l e d s ui t wi t hout

gi vi ng Mr . 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 . We

be l i e ve t ha t be f or e Mr . Ma ne y i s ent i t l e d t o one r a t e Mr .

Pa r ke r wi t h a t t or ne y f e e s , i t wa s i nc umbe nt upon Mr . Ma 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 udgme nt of t he

Cha ncel l or i s af f i r me d and t he caus e r e ma nde d f or col l ect i on of

c os t s be l ow. Cos t s of a ppe a l a r e a dj udge d a ga i ns t t he Appe l l a nt

a nd hi s s ur e t y.

_______________________________

Hous t on M. Godda r d, P. J .

CONCUR:

________________________________

He r s c he l P. Fr a nks , J .

________________________________

Cl i ffor d E. Sa nde r s , Sr . J .