Opinion ID: 170014
Heading Depth: 2
Heading Rank: 3

Heading: Misrepresentation in Contract

Text: The Hospital also brought a contract claim for misrepresentation in contract, requesting rescission of the Operating Agreement. Under Tennessee law, the decision to rescind the contract rests in the equitable discretion of the trial court. J.B. Deeds & Son v. True, 151 Tenn. 630, 271 S.W. 41, 42 (1925); Stonecipher v. Estate of Gray, No. M1998-00980-COA-R3-CV, 2001 WL 468673, at  (Tenn.Ct. App. May 4, 2001). Here, the district court found that it would be so difficult to return the parties to their original positions that equity ought not interfere. The court also found that there were no genuine issues of material fact that could support the Hospital's claim that there had been any misrepresentation in the first place. We have doubts about the latter conclusion, but nonetheless we affirm the court's decision not to rescind the contract. Under Tennessee law, proof of misrepresentation does not automatically entitle the plaintiff to rescission. Stonecipher, at . We have no reason to think that the district court's decision not to require rescission was an abuse of its equitable discretion.