Nystar Tennessee Mines-Strawberry Plaints, LLC v. Claiborne Hauling, LLC, DBA Claiborne Trucking, LLC
E2017-00155-COA-R3-CV
| Tenn. Ct. App. | Nov 29, 2017Background
- Nyrstar Tennessee Mines–Strawberry Plains, LLC sold rock to Claiborne Hauling, LLC under a written contract and sued for unpaid invoices.
- Nyrstar prevailed in the breach-of-contract action and recovered $116,073.43.
- After judgment, Nyrstar moved for $109,761.62 in attorneys’ fees and $2,982.12 in expenses, relying on contract section 13: "Costs The Customer must pay Nyrstar all costs and expenses ... including legal expenses ... in recovering monies owed."
- The trial court awarded Nyrstar expenses but denied attorneys’ fees, finding the contract language insufficiently specific to allow fee recovery.
- Nyrstar appealed the denial of attorneys’ fees; the Court of Appeals affirmed the trial court and assessed appeal costs to Nyrstar.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the contract authorizes recovery of attorneys’ fees | Nyrstar: section 13's reference to "costs and expenses, including legal expenses" is sufficiently specific to include attorneys’ fees | Claiborne: language provides only for costs/expenses, which under Tennessee law does not include attorneys’ fees absent explicit wording | Held: No — the phrase "legal expenses" and wording "costs"/"expenses" is not specific enough; contract does not expressly authorize recovery of attorneys’ fees |
Key Cases Cited
- Cracker Barrel Old Country Store, Inc. v. Epperson, 284 S.W.3d 303 (Tenn. 2009) (contract must specifically and expressly provide for recovery of attorney fees; "costs" or "expenses" alone insufficient)
- John Kohl & Co. v. Dearborn & Ewing, 977 S.W.2d 528 (Tenn. 1998) (explaining Tennessee's adherence to the American rule barring fee awards absent contractual or statutory authorization)
- Bob Pearsall Motors, Inc. v. Regal Chrysler-Plymouth, Inc., 521 S.W.2d 578 (Tenn. 1975) (contracts are enforced according to their plain terms)
- Dick Broad. Co. of Tennessee v. Oak Ridge FM, Inc., 395 S.W.3d 653 (Tenn. 2013) (interpretation focuses on plain and ordinary meaning within the four corners of the contract)