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Front Page - Friday, May 27, 2011

Case Digests: Tennesse Court of Appeals Syllabus




Christine Heyne, et al. v. Metropolitan Nashville Board of Public Education.

Davidson County – This is a common law writ of certiorari review of a student’s ten-day suspension for a violation of the Student-Parent Code of Conduct for reckless endangerment. The student was suspended by the school principal following an incident where he drove his vehicle toward a group of students resulting in injury to one student.

The suspension was appealed to a disciplinary panel, then to a discipline administrator, and lastly to the school board. The suspension was upheld at each level. Thereafter, this petition for common law writ of certiorari was filed.

The trial court found that the suspended student’s due process rights were violated by the failure to provide an impartial panel and that the decision was arbitrary as it was not supported by the evidence. The court also awarded the petitioners their attorneys’ fees pursuant to 42 U.S.C. § 1983. We reverse finding the student’s due process rights were not violated and that the decision was not arbitrary because it is supported by material evidence. Authoring Judge: Judge Frank G. Clement, Jr. Originating Judge: Ellen Hobbs Lyle, Chancellor

CNX Gas Company, LLC v. Miller Petroleum, Inc., et al.

Campbell County – This appeal involves a business transaction for the assignment of oil and gas leases. The parties are sophisticated in the oil and gas industry and include CNX Gas Company, LLC (“CNX”), Miller Petroleum, Inc. (“Miller”), Atlas America, LLC (“Atlas”), and Wind City Oil & Gas, LLC (“Wind City”). CNX and Miller entered into a binding Letter of Intent (“LOI”) for the assignment of oil and gas leases owned by Miller.

Prior to signing the LOI, CNX knew that the leases were the subject of pending litigation between Miller and Wind City. The letter of intent outlined the details of the transaction and a closing date. On the closing date, Miller refused to close the transaction with CNX, claiming that it did not have possession of the leases.

Approximately one week later, Miller entered into a similar deal for the assignment of those leases with Atlas. The transaction between Miller and Atlas was worth substantially more than the transaction with CNX. Thereafter, CNX sued Miller for breach of contract; CNX also sued Atlas and Wind City for inducement to breach a contract. Miller and Atlas filed motions for summary judgment following discovery that involved depositions.

After a hearing, the trial court granted summary judgment finding that the LOI permitted Miller to opt out of the closing. CNX appeals. After reviewing the record, we find the trial court erred in granting summary judgment. The LOI only provided CNX with the option to opt out of the transaction. Accordingly, we reverse.

Authoring Judge: Judge John W. McClarty Originating Judge: Chancellor Billy Joe White

Deborah Vivien v. Keith W. Campbell.

Shelby County – This appeal involves child support arising out of a paternity action. After paternity was established, the mother sought discovery regarding the father’s income. After protracted discovery disputes, the juvenile court set child support based on income that included the father’s winnings from gambling. The juvenile court did not permit the gambling winnings to be offset by the father’s gambling losses.

After the father requested a rehearing on child support, years of delay ensued, and his rehearing request was ultimately dismissed. The father now appeals. We affirm in part, reverse in part, and remand, holding inter alia, that in determining an obligor parent’s income for child support purposes, provable gambling losses may offset gambling winnings, up to the amount of the gambling winnings for the year in question.

Authoring Judge: Judge Holly M. Kirby Originating Judge: Special Juvenile Court Judge Herbert J. Lane

James Eric Crain v. CRST Van Expedited, Inc.

Knox County – This case stems from an employment contract dispute. James Eric Crain (“Crain”) was terminated by his employer, CRST Van Expedited, Inc. (“CRST”). CRST demanded payment from Crain pursuant to a clause in his employment contract. Crain filed suit in the Knox County Chancery Court (the “Trial Court”), seeking, among other things, injunctive relief. CRST filed an answer and counterclaim in the Trial Court seeking damages, among other things. CRST also filed a lawsuit, based on the same facts and issues, against Crain in Iowa.

CRST prevailed in the Iowa lawsuit before the suit in Tennessee went to judgment. CRST filed a motion for summary judgment in the Trial Court, which was granted. Crain appeals, raising a number of issues.

We hold that the Trial Court did not err in granting CRST’s motion for summary judgment relying on the doctrine of res judicata. We further hold that the Trial Court did not err in finding that CRST also was entitled to judgment as a matter of law pursuant to the Uniform Enforcement of Foreign Judgments Act. We affirm.

Authoring Judge: Judge D. Michael Swiney Originating Judge: Chancellor Michael W. Moyers