### IN THE CO URT OF APPEALS OF TE NNE SS EE

AT NASHVILL E

May 10, 2 01 1 S es si on

LEE BROW N AND GUTTERSH UTTER O F NASHVIL LE, LL C v. DAVID

STYLE S E T A L



### .

A p p e a l f r o m t h e C h a n c e r y C o u r t f o r W i l l i a m s o n C o u n t y

N o

. 3 5 8 9 2 R o b b i e T

. B e a l

, J u d g e

N o

. M 2 0 1 0

- 0 2 4 0 3

- C O A

- R 3

- C V

- F i l e d A u g u s t 1 8

, 2 0 1 1

A p p e a l f r o m a j u d g m e n t c o n f

i r m i n g a n a r b i t r a t i o n a w a r d

. T h e p r i n c i p l e d e f e n s e i s t h a t t h e

a p p e l l a n t

, t h e p a r t y a g a i n s t w h o m t h e a r b i t r a t i o n a w a r d w a s i s s u e d

, w a s n e v e r a p a r t y t o t h e

a r b i t r a t i o n a g r e e m e n t a t i s s u e a n d d i d n o t p a r t i c i p a t e i n t h e a r b i t r a t i o n p r o c e e d i n g s

. T h e t r i a l

c o u r t c o n f

i r m e d t h e a r b i t r a t i o n a w a r d a n d e n r o l l e d a j u d g m e n t a g a i n s t t h e a p p e l l a n t i n t h e

a m o u n t o f $ 7 8

, 9 5 6

. 8 0 p l u s c o s t s

. W e r e v e r s e t h e c o n f i r m a t i o n o f t h e a w a r d a g a i n s t t h e

a p p e l l a n t u p o n t h e f

i n d i n g t h a t t h e t r i a l c o u r t l a c k e d s u b j e c t m a t t e r j u r i s d i c t i o n t o c o n f i r m

t h e a w a r d

. T h i s i s b e c a u s e t h e s t a t u t e w h i c h c o n f e r s j u r i s d i c t i o n u p o n t h e c o u r t t o c o n f i r m

a r b i t r a t i o n a w a r d s

, T e n n

. C o d e A n n

. § 2 9

- 5

- 3 0 2

, r e q u i r e s a w r i t t e n a r b i t r a t i o n a g r e e m e n t

b e t w e e n t h e p a r t i e s

, a n d t h e r e i s n o w r i t t e n a g r e e m e n t b e t w e e n t h e a p p e l l a n t a n d a p p e l l e e t o

a r b i t r a t e

. T h u s

, t h e t r i a l c o u r t w a s w i t h o u t j u r i s d i c t i o n t o c o n f i r m a n a r b i t r a t i o n a w a r d a g a i n s t

t h e a p p e l l a n t

.

T e n n

. R

. A p p

. P

. 3 A p p e a l a s o f R i g h t ; J u d g m e n t o f t h e C h a n c e r y C o u r t R e v e r s e d

F R A N K G

. C LE M E N T

, J R

. , J

. , d e l i v e r e d t h e o p i n i o n o f t h e C o u r t

, i n w h i c h P A T R IC IA J

.

C O T T R E LL

, P

. J

. , M

. S

. , a n d A N D Y D

. B E N N E T T

, J

. , j o i n e d

.

T i m o t h y H

. N i c h o l s

, N a s h v i l l e

, T e n n e s s e e

, f o r t h e a p p e l l a n t

, L e e B r o w n

.

T

. H o l l a n d M c K i n n i e a n d K e i t h J

. W o o d r u f f

, F r a n k l i n

, T e n n e s s e e

, f

o r t h e a p p e l l e e s

, D a v i d

S t y l e s a n d G o l d i e S t y l e s

.

O P I N I O N

T h i s a c t i o n a r i s e s f

r o m a c o n t r a c t b e t w e e n G u t t e r S h u t t e r o f N a s h v i l l e

, L L C

, a n d t h e

A p p e l l e e s

, D a v i d a n d G o l d i e S t y l e s

, f o r t h e i n s t a l l a t i o n o f a g u t t e r s y s t e m o n t h e S t y l e s ’

h o m e

. T h e S t y l e s n e g o t i a t e d t h e c o n t r a c t w i t h J e r r y H a l l

, a n e m p l o y e e o f G u t t e r S h u t t e r

. T h ec o n t r a c t w a s s i g n e d o n S e p t e m b e r 2 7

, 2 0 0 7

. L e e B r o w n

, a c o u n t e r

- d e f e n d a n t i n t h i s a c t i o n

,

w a s t h e o w n e r o f t h e n o w d e f u n c t G u t t e r S h u t t e r

, L L C ; h o w e v e r

, B r o w n d i d n o t s i g n t h e

c o n t r a c t

, e i t h e r i n d i v i d u a l l y o r a s a r e p r e s e n t a t i v e o f G u t t e r S h u t t e r

, a n d h i s n a m e d o e s n o t

a p p e a r i n t h e c o n t r a c t b e t w e e n t h e S t y l e s a n d G u t t e r S h u t t e r

.

T h e c o n t r a c t b e t w e e n t h e S t y l e s a n d G u t t e r S h u t t e r c o n t a i n s a n a r b i t r a t i o n p r o v i s i o n

w h i c h s t a t e s t h a t “ [ a ] l l c l a i m s a r i s i n g o u t o f t h i s C o n t r a c t b y e i t h e r C u s t o m e r o r C o m p a n y

s h a l l

. . . b e s e t t l e d b y b i n d i n g a r b i t r a t i o n i n a c c o r d a n c e w i t h t h e C o m m e r c i a l A r b i t r a t i o n

R u l e s o f t h e A m e r i c a n A r b i t r a t i o n A s s o c i a t i o n

. ” T h e S t y l e s a r e i d e n t i f i e d i n t h e c o n t r a c t a s 1

t h e “ C u s t o m e r ” a n d G u t t e r S h u t t e r i s i d e n t i f i e d a s t h e “ C o m p a n y

. ”

F o l l o w i n g t h e i n s t a l l a t i o n o f t h e g u t t e r s y s t e m b y G u t t e r S h u t t e r

, w a t e r b e g a n t o f l o w

i n t o t h e S t y l e s ’ h o m e c a u s i n g d a m a g e

. A p p r o x i m a t e l y a y e a r a f t e r t h e s i g n i n g o f t h e c o n t r a c t

, i n S e p t e m b e r 2 0 0 8

, t h e S t y l e s f i l e d a d e m a n d f

o r a r b i t r a t i o n p u r s u a n t t o t h e a r b i t r a t i o n c l a u s e

i n t h e G e n e r a l C o n d i t i o n s s e c t i o n o f t h e c o n t r a c t

. S i n c e G u t t e r S h u t t e r w a s a d m i n i s t r a t i v e l y

d i s s o l v e d o n A u g u s t 2 2

, 2 0 0 8

, o n e m o n t h p r i o r t o t h e S t y l e s f i l i n g t h e i r d e m a n d f

o r

a r b i t r a t i o n

, t h e S t y l e s ’ d e m a n d f o r a r b i t r a t i o n l i s t e d b o t h G u t t e r S h u t t e r o f N a s h v i l l e

, L L C

,

a n d L e e B r o w n a s p a r t i e s t o t h e a r b i t r a t i o n

.

B r o w n d i d n o t r e s p o n d t o t h e d e m a n d f o r a r b i t r a t i o n

, n o r d i d B r o w n a t t e n d o r

o t h e r w i s e p a r t i c i p a t e i n t h e a r b i t r a t i o n h e a r i n g o n M a r c h 4

, 2 0 0 9

. G u t t e r S h u t t e r d i d n o t

r e s p o n d o r p a r t i c i p a t e e i t h e r

.

O n M a r c h 1 7

, 2 0 0 9

, t h e a r b i t r a t o r e n t e r e d a n A r b i t r a t i o n A w a r d i n f a v o r o f t h e S t y l e s

a g a i n s t B r o w n a n d G u t t e r S h u t t e r f o r $ 6 3

, 8 5 8

. 7 5 p l u s p r e

-

j u d g m e n t i n t e r e s t

. T h e a r b i t r a t o r 2

T he e nti re ar bit ra ti on p rovis ion in th e c ont ra ct st at es: 1

All cl ai m s ar is ing out of thi s Cont ra ct by ei the r Cust om er or Com pan y sha ll be comm enc ed

wit hin one (1 ) year fr om

th e da te of

th e caus e of ac ti on. T he p ar ti es agree th at any and al l

cl ai m s or con tr oversi es ar is ing out of thi s Cont ra ct

, inc lud ing wit hout li m it at ion

, a cl ai m ed

bre ach the re of, sha ll be set tl ed by b ind ing ar bit ra ti on in acc ord anc e w i th the Com m er ci al

Arbi tr at ion Rule s of the Am er ic an Arbi tr at ion Asso ci a t i o n a n d any j udgm ent upon the

awar d re nde re d by the ar bit ra tor (s ) m ay be ent er ed in any cou rt having j uri sdi ct ion the re of.

T he Com pan y, i f it pre vails in any ar bit ra ti on or cou r t act ion to for ce ar bit ra ti on, sha ll be

ent it le d t o al l re aso nab le at tor neys’ fe es, cos ts and ot her exp ens es inc urr ed i n su ch a ct ion

and in any way subs equ ent ef for ts to col le ct th e a m ount awar ded

.

T his amount inc lud ed $15, 986. 25 for re pai rs to the home, $2,2 93.0 0 for a re fun d of t h e c o ntr act 2

pri ce, $600 .00 for re m oval and re pla cement of the gutte r s ys t e m; the for egoing wer e al l tr ebl ed unde r the

T enn ess ee Cons um er Pro te ct ion Act

. T he amount al so inc lud ed $221 .00 for exp er t te st imony exp ens es,

(c ont inu ed.. .)

-2-f

o u n d t h a t G u t t e r S h u t t e r “ f a i l e d t o m a i n t a i n t h e p r o p e r c o r p o r a t e f o r m

, ” a n d c o n c l u d e d t h a t

L e e B r o w n w a s i n d i v i d u a l l y l i a b l e f o r t h e S t y l e s ’ d a m a g e s

. T h e a r b i t r a t o r a l s o f o u n d t h a t

B r o w n v i o l a t e d t h e T e n n e s s e e C o n s u m e r P r o t e c t i o n A c t b y m i s r e p r e s e n t i n g t h e q u a l i t y o f

t h e g u t t e r s a n d t h e i r w o r k m a n s h i p

, a s w e l l a s b y f a i l i n g t o h o n o r t h e “ m o n e y b a c k g u a r a n t e e ”

i n t h e c o n t r a c t

.

O n M a y 1

, 2 0 0 9

, B r o w n f i l e d a P e t i t i o n t o V a c a t e A r b i t r a t i o n A w a r d a g a i n s t h i m

i n d i v i d u a l l y b e c a u s e h e w a s n o t a p a r t y t o t h e c o n t r a c t w i t h t h e S t y l e s a n d t h u s w a s n o t

b o u n d b y t h e a r b i t r a t i o n p r o v i s i o n i n t h e c o n t r a c t w i t h t h e S t y l e s

. T h e S t y l e s f i l e d a n A n s w e r 3

a s w e l l a s a C o u n t e r

- C l a i m a g a i n s t B r o w n t o c o n f i r m t h e a r b i t r a t i o n a w a r d a g a i n s t B r o w n

i n d i v i d u a l l y p u r s u a n t t o t h e T e n n e s s e e U n i f o r m A r b i t r a t i o n A c t

.

B e c a u s e G u t t e r S h u t t e r w a s n o t a p a r t y t o B r o w n ’ s P e t i t i o n a g a i n s t t h e S t y l e s

, t h e

S t y l e s f i l e d a s e p a r a t e C o m p l a i n t a g a i n s t G u t t e r S h u t t e r o n J u n e 3

, 2 0 0 9

, t o c o n f i r m t h e

a r b i t r a t i o n a w a r d

. G u t t e r S h u t t e r n e v e r r e s p o n d e d t o t h e C o m p l a i n t a n d u p o n a m o t i o n o f t h e

S t y l e s

, t h e t r i a l c o u r t g r a n t e d a d e f a u l t j u d g m e n t a g a i n s t G u t t e r S h u t t e r i n t h e a m o u n t o f

$ 7 8

, 9 5 6

. 8 0

. T h e d i s p u t e b e t w e e n B r o w n a n d t h e S t y l e s c o n t i n u e d

.

O n J u l y 2 4

, 2 0 0 9

, t h e t r i a l c o u r t d i s m i s s e d B r o w n ’ s P e t i t i o n “ w i t h o u t p r e j u d i c e

. ” D u e

t o B r o w n ’ s f

a i l u r e t o r e p l y t o d i s c o v e r y

, t h e t r i a l c o u r t a l s o g r a n t e d a m o t i o n b y t h e S t y l e s

t o h a v e c e r t a i n f

a c t s a d m i t t e d p u r s u a n t t o T e n n

. R

. C i v

. P

. 3 6

. O n J a n u a r y 7

, 2 0 1 0

, B r o w n

f i l e d a n A n s w e r t o t h e S t y l e s ’ C o u n t e r

- C l a i m

, i n w h i c h h e d e n i e d a n y p e r s o n a l l i a b i l i t y a n d

r e q u e s t e d d i s m i s s a l o f t h e a c t i o n a g a i n s t h i m i n d i v i d u a l l y

. 4

T h e r e a f t e r

, t h e S t y l e s f

i l e d a M o t i o n f

o r S u m m a r y J u d g m e n t o n t h e i r C o u n t e r

- C l a i m

t o c o n f i r m t h e a r b i t r a t i o n a w a r d a g a i n s t B r o w n a n d a d i s m i s s a l o n t h e m e r i t s o f B r o w n ’ s

P e t i t i o n t o V a c a t e A r b i t r a t i o n A w a r d

. T h e S t y l e s a r g u e d t h a t u n d e r T e n n

. C o d e A n n

. § 2 9

- 5

-

3 1 3

, B r o w n h a d 9 0 d a y s f r o m t h e t i m e h e r e c e i v e d n o t i c e o f t h e a r b i t r a t i o n a w a r d t o f i l e a n

“ a p p l i c a t i o n ” t o v a c a t e t h e a w a r d

. B r o w n ’ s o r i g i n a l p e t i t i o n w a s f i l e d w i t h i n t h e 9 0

- d a y t i m e

l i m i t

, h o w e v e r

, t h i s p e t i t i o n h a d b e e n d i s m i s s e d o n J u l y 2 4

, 2 0 0 9

, a n d B r o w n h a d f a i l e d t o

f i l e a n o t h e r p e t i t i o n w i t h i n t h e y e a r f o l l o w i n g

. T h e S t yl e s f

u r t h e r c o n t e n d e d t h a t t h e d i s m i s s a l

b e c a m e f i n a l o n J u l y 2 4

, 2 0 1 0

, a n d t h e A n s w e r f i l e d b y B r o w n i n r e s p o n s e t o t h e i r C o u n t e r

-

(... con ti nue d) 2

$5,0 00 i n at tor neys’ fe es, and $2,0 00 f or the cos ts of

ar bit ra ti on.

Brown al so argues tha t the awar d was not pers ona ll y del ivere d to him but admits tha t he rece ived 3

act ual not ic e of

th e a rbi tr at ion awar d.

Pri or to the fi li ng of his ans wer

, the tr ia l cou rt al so grant ed a m oti on by the Style s for s a nct ion s 4

agains t Br own f

or his fa il ure to at te nd a sc hed ule d de pos it ion

.

-3-C l a i m w a s i n s u f f i c i e n t t o c o n s t i t u t e a r e f i l i n g o f t h e p e t i t i o n o r a n e w a p p l i c a t i o n

, b e c a u s e

i t w a s m e r e l y a g e n e r a l d e n i a l o f p e r s o n a l l i a b i l i t y

. T h u s

, t h e S t y l e s a r g u e d t h a t T e n n

. C o d e

A n n

. § 2 9

- 5

- 3 1 3 ( d ) r e q u i r e d t h e t r i a l c o u r t t o c o n f i r m t h e a r b i t r a t i o n a w a r d

.

O n S e p t e m b e r 1 3

, 2 0 1 0

, B r o w n f i l e d a M o t i o n t o A m e n d h i s A n s w e r t o t h e S t y l e s ’

C o u n t e r

- C l a i m t o “ s p e c i f i c a l l y r e q u e s t t h a t t h e a r b i t r a t i o n a w a r d b e v a c a t e d o r m o d i f i e d

. ”

F o l l o w i n g a h e a r i n g o n S e p t e m b e r 2 0

, 2 0 1 0

, t h e t r i a l c o u r t g r a n t e d t h e S t y l e s ’ m o t i o n f o r

s u m m a r y j u d g m e n t

, f

i n d i n g t h a t t h e J u l y 2 0 0 9 d i s m i s s a l o f B r o w n ’ s P e t i t i o n w a s “ n o w a

f i n a l o r d e r ” a n d t h a t t h e s a v i n g s s t a t u t e c o d i f i e d a t T e n n

. C o d e A n n

. § 2 8

- 1

- 1 0 5 w a s n o t

a p p l i c a b l e ; t h e r e f

o r e

, t h e S t y l e s w e r e e n t i t l e d t o a j u d g m e n t a g a i n s t B r o w n i n t h e a m o u n t

o f $ 7 8

, 9 5 6

. 8 0 p l u s c o s t s

. T h e t r i a l c o u r t d e n i e d B r o w n ’ s m o t i o n t o a m e n d

. B r o w n f i l e d a

t i m e l y a p p e a l

. 5

A N A L Y S IS

T o p l a c e t h e i s s u e s o n a p p e a l i n t h e p r o p e r c o n t e x t

, w e b e g i n b y s u m m a r i z i n g c e r t a i n

g e n e r a l p r i n c i p l e s g o v e r n i n g a r b i t r a t i o n c o n t r a c t s

. “ I n g e n e r a l

, a r b i t r a t i o n a g r e e m e n t s i n

c o n t r a c t s a r e f

a v o r e d i n T e n n e s s e e b o t h b y s t a t u t e a n d e x i s t i n g c a s e l a w

. ” B e n t o n v

. 6

V a n d e r b i l t U

n i v

. , 1 3 7 S

. W

. 3 d 6 1 4

, 6 1 7 ( T e n n

. 2 0 0 4 )

. T h i s

, o f c o u r s e

, p r e s u m e s t h e r e i s a n 7

e n f o r c e a b l e w r i t t e n a g r e e m e n t b e t w e e n t h e p a r t i e s

. S e e T e n n

. C o d e A n n

. § 2 9

- 5

- 3 0 2

. I t

s h o u l d g o w i t h o u t s a y i n g

, t h a t “ [ a ] n a r b i t r a t i o n c l a u s e d o e s n o t b i n d o n e n o t a p a r t y t o t h e

c o n t r a c t

. ” C

. O

. C h r i s t i a n & S o n s C o

. v

. N a s h v i l l e P

. S

. H

o t e l

, L t d

. , 7 6 5 S

. W

. 2 d 7 5 4

, 7 5 7

( T e n n

. C t

. A p p

. 1 9 9 8 ) ( e m p h a s i s a d d e d )

. T h i s i s b e c a u s e a r b i t r a t i o n i s a m a t t e r o f c o n t r a c t

a n d a p e r s o n c a n n o t b e f o r c e d t o a r b i t r a t e d i s p u t e s u n d e r a n a r b i t r a t i o n p r o v i s i o n t o w h i c h

h e h a s n o t a s s e n t e d

. S e e F r i z z e l l C o n s t r u c t i o n C o

. v

. G a t l i n b u r g

, L L C

, 9 S

. W

. 3 d 7 9

, 8 4

( T e n n

. 1 9 9 9 ) ; C o c k e C o u n t y v

. B d

. o f H i g h w a y C o m m i s s i o n e r s

, 6 9 0 S

. W

. 2 d 2 3 1

, 2 3 7 ( T e n n

.

1 9 8 5 ) ( c i t i n g J

a c k s o n v

. C h a m b e r

s

, 5 1 0 S

. W

. 2 d 7 4 ( T e n n

. 1 9 7 4 ) ) ( s t a t i n g “ a r b i t r a t i o n c l a u s e s

a r e n o t b i n d i n g o n t h i r d p a r t i e s w h o a r e n o t p a r t i e s t o t h e c o n t r a c t ” )

. 8

G ut te rS hu tt er di d not fi le an app eal ; the re for e, we do not dis tur b the j udgm ent agains t Gutt er Shut ter. 5

Alt hough the con tr act doe s not exp li ci tl y st at e tha t the T enn ess ee Unif orm Arbi tr at ion Act (T UAA) 6

app li es, nei the r p ar ty ar gues t hat th e Fe der al Arb it ra ti on Ac t a ppl ie s; th er ef ore , we a ppl y the T UAA.

“T he Legisl at ure

, by ena ct ing a Unif orm Arbi tr at ion Act

, embrace d a le gisla ti ve pol ic y fa vorin g 7

enf orc ement of

suc h agre ements. ” Bura czy nsk i v . Eyr ing , 919 S.W .2d 3 14, 3 18- 19 ( T enn . 199 6).

T he T enn ess ee Supr eme Cour t has hel d tha t, in cer ta in ci rc um st anc es, a thi rd par ty ben ef ic ia ry m ay 8

be boun d by the pro visio ns of an ar bit ra ti on agree m ent

, suc h as when he or she was an int end ed ben ef ic ia ry

unde r t he c ont ra ct and sou ght to enf orc e his or her ri ghts under th e c ont ra ct

. See Ben ton v. T he V ande rbi lt

Univ ers it y , 137 S.W .3d 6 14, 6 20 ( T enn . 200 4). Suc h i s no t t he c ase her e.

-4-I n t h a t t h i s i s a n a c t i o n t o c o n f i r m a n a r b i t r a t i o n a w a r d a g a i n s t B r o w n

, i t i s e s s e n t i a l

f o r u s t o r e c o g n i z e t h a t a c o u r t o b t a i n s j u r i s d i c t i o n t o c o n f i r m a n a r b i t r a t i o n a w a r d p u r s u a n t

t o T e n n

. C o d e A n n

. § 2 9

- 5

- 3 0 2

, a n d t h i s s t a t u t e i s t h e s o l e s o u r c e o f t h e c o u r t ’ s s u b j e c t

m a t t e r j u r i s d i c t i o n t o c o n f i r m a r b i t r a t i o n a w a r d s

. T h e s t a t u t e e x p r e s s l y p r o v i d e s t h a t a 9

c o u r t ’ s j u r i s d i c t i o n t o c o n f i r m a n a r b i t r a t i o n a w a r d i s o b t a i n e d p u r s u a n t t o t h e f o l l o w i n g :

( a ) “

. . . a p r o v i s i o n i n a w r i t t e n c o n t r a c t t o s u b m i t t o a r b i t r a t i o n a n y

c o n t r o v e r s y t h e r e a f

t e r a r i s i n g b e t w e e n t h e p a r t i e s i s v a l i d

, e n f o r c e a b l e a n d

i r r e v o c a b l e s a v e u p o n s u c h g r o u n d s a s e x i s t a t l a w o r i n e q u i t y f o r t h e

r e v o c a t i o n o f a n y c o n t r a c t ;

. . .

( b ) T h e m a k i n g o

f a n a g r e e m e n t d e s c r i b e d i n t h i s s e c t i o n p r o v i d i n g f o r

a r b i t r a t i o n i n t h i s s t a t e c o n f e r s j u r i s d i c t i o n o n t h e c o u r t t o e n f o r c e t h e

a g r e e m e n t u n d e r t h i s p a r t a n d t o e n t e r j u d g m e n t o n a n a w a r d t h e r e u n d e r

.

T e n n

. C o d e A n n

. § 2 9

- 5

- 3 0 2 ( e m p h a s i s a d d e d )

. A b s e n t t h e a b o v e c i r c u m s t a n c e s

, t h e c o u r t s

l a c k s u b j e c t m a t t e r j u r i s d i c t i o n t o c o n f i r m a r b i t r a t i o n a w a r d s

.

H e r e

, t h e S t y l e s e n t e r e d i n t o t h e c o n t r a c t a t i s s u e w i t h G u t t e r S h u t t e r o f N a s h v i l l e

,

L L C

, n o t w i t h L e e B r o w n i n d i v i d u a l l y

. I t i s a l s o u n d i s p u t e d t h a t B r o w n i s n o t a n a m e d p a r t y

a n d h e i s n o t a s i g n a t o r y t o t h e c o n t r a c t ; i n f a c t

, B r o w n ’ s n a m e d o e s n o t a p p e a r a n y w h e r e i n

t h e c o n t r a c t

. M o r e o v e r

, B r o w n d i d n o t n e g o t i a t e t h e c o n t r a c t w i t h t h e S t y l e s

. B r o w n w a s

, h o w e v e r

, t h e o w n e r o f G u t t e r S h u t t e r o f N a s h v i l l e

, L L C

, w h e n t h e c o n t r a c t w a s e x e c u t e d i n

S e p t e m b e r 2 0 0 7 a n d w h e n t h e c o m p a n y w a s d i s s o l v e d a y e a r l a t e r i n A u g u s t 2 0 0 8

, a f a c t t h a t

m a y o r m a y n o t m a k e B r o w n l i a b l e f o r c e r t a i n o b l i g a t i o n s o f G u t t e r S h u t t e r b u t i t d o e s n o t

m a k e h i m a p a r t y t o t h e a g r e e m e n t t o a r b i t r a t e a t i s s u e h e r e

.

W i t h t h e a b o v e u n d i s p u t e d f a c t s b e i n g t h e o n l y m a t e r i a l f a c t s r e l e v a n t t o w h a t w e

h a v e d e t e r m i n e d t o b e t h e d i s p o s i t i v e i s s u e

, w e h a v e c o n c l u d e d t h a t t h e t r i a l c o u r t l a c k e d

s u b j e c t m a t t e r j u r i s d i c t i o n t o c o n f i r m t h e a r b i t r a t i o n a w a r d a g a i n s t B r o w n i n d i v i d u a l l y ;

t h e r e f o r e

, t h e j u d g m e n t o f t h e t r i a l c o u r t m u s t b e r e v e r s e d a n d t h e c a s e r e m a n d e d w i t h

i n s t r u c t i o n s t o d i s m i s s t h e c o u n t e r

- c l a i m o f t h e S t y l e s a g a i n s t B r o w n

. B e c a u s e t h e t r i a l c o u r t

l a c k e d j u r i s d i c t i o n i n t h i s m a t t e r

, t h e o t h e r i s s u e s p r e s e n t e d f o r o u r r e v i e w a r e r e n d e r e d m o o t

.

T he la ck of sub

j ect m at te r j uri sdi ct io n ma y b e r a i s e d by the cou rt or the par ti es at any ti m e and 9

sub j ect m at te r j uri sdi ct ion m ay not be wai ved. See Gil le spi e v. Sta te

, 619 S.W .2d 128, 129 (T enn

. Ct. App.

1981 ). Lee Brown bro ach ed the is sue of sub j ect m at te r j uri sdi ct ion by ar guing tha t the T enn ess ee Unif orm

Arbi tr at ion Act onl y app li es to ar bit ra ti on dis put es ar is ing “be twe en the par ti es” to an agree m ent to ar bit ra te

,

as st at ed in T e n n

. C o d e A n n

. § 29- 5- 302; however

, he did not exp re ssl y ra is e the is sue of sub j ect m at te r

j uri sdi ct ion in hi s br ie f. Ne verth el ess , as Gil le spi e in st ruc ts , we c an a nd d o.

-5-T h e t r i a l c o u r t l a c k e d s u b j e c t m a t t e r j u r i s d i c t i o n t o c o n f i r m t h e e x p a r t e a r b i t r a t i o n

a w a r d a g a i n s t B r o w n b e c a u s e B r o w n w a s n o t a p a r t y t o t h e “ w r i t t e n a g r e e m e n t ” a t i s s u e

. A s

T e n n

. C o d e A n n

. § 2 9

- 5

- 3 0 2 c l e a r l y p r o v i d e s

, t h e m a k i n g o f a w r i t t e n a g r e e m e n t t h a t

c o n t a i n s a p r o v i s i o n f o r a r b i t r a t i o n “ c o n

f e r s j u r i s d i c t i o n o n t h e c o u r t t o e n f o r c e t h e

a g r e e m e n t

. . . a n d t o e n t e r j u d g m e n t o n a n a w a r d t h e r e u n d e r

. ” T e n n

. C o d e A n n

. § 2 9

- 5

-

3 0 2 ( a )

, ( b )

. A b s e n t t h e a b o v e c o n d i t i o n s p r e c e d e n t

, t h e t r i a l c o u r t l a c k s j u r i s d i c t i o n t o

c o n f i r m a n a r b i t r a t i o n a w a r d a g a i n s t B r o w n i n d i v i d u a l l y

. H o w e v e r

, t h e t r i a l c o u r t h a d

j u r i s d i c t i o n t o r u l e o n t h e S t y l e s ’ a p p l i c a t i o n u n d e r T e n n

. C o d e A n n

. § 2 9

- 5

- 3 0 2 t o c o n f i r m

t h e a r b i t r a t i o n a w a r d a g a i n s t G u t t e r S h u t t e r b e c a u s e G u t t e r S h u t t e r w a s a p a r t y t o a w r i t t e n

a g r e e m e n t t h a t c o n t a i n e d a p r o v i s i o n f o r a r b i t r a t i o n

. 1 0

W h e t h e r s o m e o n e

, s u c h a s B r o w n

, w h o d e n i e s t h e e x i s t e n c e o f a n a g r e e m e n t t o

a r b i t r a t e i s o b l i g a t e d t o a r b i t r a t e i s a d e c i s i o n f o r t h e c o u r t t o m a k e

. S e e T e n n

. C o d e A n n

. §

2 9

- 5

- 3 0 3 ( a )

. W h e n a p a r t y r e f u s e s t o a r b i t r a t e

, t h e p a r t y d e m a n d i n g a r b i t r a t i o n m a y m a k e a n

a p p l i c a t i o n t o t h e a p p r o p r i a t e c o u r t p u r s u a n t t o t h e p r o c e d u r e s e t f o r t h i n T e n n

. C o d e A n n

. § 2 9

- 5

- 3 0 3 ( a ) t o c o m p e l t h e o b j e c t i n g p a r t y t o p r o c e e d w i t h a r b i t r a t i o n

. T h e r e l e v a n t 1 1

p r o c e d u r e u n d e r t h e T e n n e s s e e U n i f o r m A r b i t r a t i o n A c t i s a s f o l l o w s :

O n a p p l i c a t i o n o f a p a r t y s h o w i n g a n a g r e e m e n t d e s c r i b e d i n § 2 9

- 5

- 3 0 2

, a n d

t h e o p p o s i n g p a r t y ’ s r e f u s a l t o a r b i t r a t e

, t h e c o u r t s h a l l o r d e r t h e p a r t i e s t o

p r o c e e d w i t h a r b i t r a t i o n

, b u t i f t h e o p p o s i n g p a r t y d e n i e s t h e e x i s t e n c e o f t h e

a g r e e m e n t t o a r b i t r a t e

, t h e c o u r t s h a l l p r o c e e d s u m m a r i l y t o t h e d e t e r m i n a t i o n

o f t h e i s s u e s o r a i s e d a n d s h a l l o r d e r a r b i t r a t i o n i f f o u n d f o r t h e m o v i n g p a r t

y ;

o t h e r w i s e

, t h e a

p p l i c a t i o n s h a l l b e d e n i e d

.

We al so not e tha t the ar bit ra tor had no le gal aut hor it y to is sue an awar d hol din g Brown ind ividu al ly 1 0

li abl e, bec aus e Brown was not a par ty to the agree m ent to ar bit ra te

. T he T enn ess ee Unif orm Arbi tr at ion Act

,

spe ci fi cal ly sec ti on 29- 5- 302 st at es the sco pe of an ar bit ra tor ’s aut hor it y “i s det er m ine d by the te rms of the

agree m ent bet ween the par ti es whic h incl ude s the agreement of the par ti es to arb it ra te the dis put e.” D & E

Cons t. Co., Inc

. v. Robe rt J. Denl ey Co., Inc

., 38 S.W .3d 513, 518 (T enn

. 2001 ) (qu oti ng Int ern ati onal Tal ent

Grou p, Inc

. v. Copy ri

ght Ma nage ment Inc

., 769 S.W .2d 217, 218 (T enn

. Ct. App.19 89) ). Wh en par ti es agree

to ar bit ra te , “they are bound by the te rms of tha t arb it ra ti on provis ion

. . . [a ]r bit ra tor s exc eed the ir power s

when the is sue tha t the y dec ide is not wit hin the sco pe of the agree m ent to ar bit ra te .” Id. T he agreement at

is sue onl y ide nti fi es the Style s and Gutt er Shut te r as the par ti es who agree d to ar bit ra te

. T hus

, the ar bit ra tor ’s

aut hor it y was li m it ed to the ri ghts and re spo nsi b i l i ti es of the Style s and Gutt er Shut te r ar is ing fr om the ir

agree m ent

.

For re aso ns une xpl ai ned by thi s re cor d, the Style s did not m ake app li cat ion pur sua nt to T enn

. Code 1 1

Ann. § 29- 5- 303( a)

, ins te ad the y went for war d wit h an ex par te ar bit ra ti on pro cee din g obvious ly hopi ng to

pre vail in a c onf

ir m at ion pr oce edi ng such as th is if nec ess ar y to en for ce the awar d. One m ight a ssu m e t he

Style s wer e con f

i d e n t t hat Brown was obl igate d unde r the ar bit ra ti on agree m ent and bel ie ved a pos tar bit ra ti on a ct ion to con fi rm the a war d was th e be tt er cou rs e.

-6-T e n n

. C o d e A n n

. § 2 9

- 5

- 3 0 3 ( a ) ( e m p h a s i s a d d e d )

.

I N C O N C L U S IO N

F o r t h e r e a s o n s s t a t e d a b o v e

, w e h a v e c o n c l u d e d t h a t t h e t r i a l c o u r t l a c k e d j u r i s d i c t i o n

t o c o n f i r m t h e a r b i t r a t i o n a w a r d a g a i n s t B r o w n b e c a u s e t h e r e i s n o w r i t t e n a g r e e m e n t

b e t w e e n t h e S t y l e s a n d B r o w n

, w h i c h i s a n e s s e n t i a l e l e m e n t u n d e r T e n n

. C o d e A n n

. § 2 9

- 5

-

3 0 2 t o c o n f

e r j u r i s d i c t i o n u p o n t h e t r i a l c o u r t

. A c c o r d i n g l y

, t h e j u d g m e n t o f t h e t r i a l c o u r t

i s r e v e r s e d

, a n d t h i s m a t t e r i s r e m a n d e d w i t h i n s t r u c t i o n s t o d i s m i s s t h e S t y l e s ’ C o u n t e r

c l a i m a g a i n s t B r o w n

. C o s t s o f a p p e a l a r e a s s e s s e d a g a i n s t D a v i d a n d G o l d i e S t y l e s

.

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ F R A N K G

. C L E M E N T

, J R

. , J U D G E

-7-