PNC Multifamily Capital Institutional Fund XXVI Limited Partnership v. Carl Mabry
402 S.W.3d 654
Tenn. Ct. App.2012Background
- This is an appeal from the trial court’s enforcement of a judicial settlement agreement resolving claims against Bluff City and Mabry relating to three Memphis tax-credit apartment partnerships.
- A judicial settlement conference produced a written settlement reflecting terms, including documents to be drafted later; Mabry personally signed the interim agreement.
- Formal settlement documents were drafted; Mabry refused to sign them, prompting a motion to enforce the settlement.
- The trial court granted enforcement of the settlement and voided related deeds/documents; Mabry appealed on multiple grounds.
- Mabry challenged: (i) the enforceability given the settlement’s condition that formal documents be drafted; (ii) the absence of findings of fact and conclusions of law; (iii) the lack of a continuance of the conference due to alleged lack of counsel.
- The appellate court affirmed enforcement, held Rule 52.01 findings were not required for this motion, and found no reversible error in the proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Enforceability despite drafting condition | Mabry argues no meeting of minds on essential term because formal docs were pending. | Appellees contend a binding contract exists from the conference despite drafting, citing precedent. | Enforceable contract; formal drafting not required to enforce. |
| Need for findings of fact and conclusions of law | Rule 52.01 required findings in enforcing settlement. | Enforcement motion is not governed by Rule 52.01. | Findings not required; no error in lack of findings. |
| Continued judicial settlement conference absence of counsel | Lack of counsel for Mabry and others at conference invalidates enforceability. | No proper objection or preserved issue; Mabry alone appeals; others are not bound by Mabry’s lack of counsel. | No reversible error; issues waived or outside Mabry’s standing. |
Key Cases Cited
- Waddle v. Elrod, 367 S.W.3d 217 (Tenn. 2012) (mediated settlement enforceable despite failure to execute further documents)
- Ledbetter, 163 S.W.3d 685 (Tenn. Ct. App. 2003) (mediated agreement may be enforceable as a contract)
- McMahan v. McMahan, 2005 WL 3287475 (Tenn. Ct. App. 2005) (mediated settlement may be enforceable as contract)
- Outdoor Management LLC v. Thomas, 249 S.W.3d 368 (Tenn. Ct. App. 2007) (absence of transcript allows presumptions of evidence support)
- Persada, 2002 WL 31640564 (Tenn. Ct. App. 2002) (contract principles govern mediated agreements)
- Spectra Plastics, Inc. v. Nashoba Bank, 15 S.W.3d 832 (Tenn. Ct. App. 1999) (principles of enforcement of settlement contracts)
- Waters v. Farr, 291 S.W.3d 873 (Tenn. 2009) (issues not raised in trial court waived on appeal)