Potter's Shopping Center, Inc. v. Szekely
461 S.W.3d 68
| Tenn. Ct. App. | 2014Background
- 2007 Szekelys entered a cost-plus contract with Delk Construction to build a house; Delk financed via construction loan with draw pro rata to work completed.
- Delk procured materials from Potter’s Shopping Center; Potter’s maintained an open account and sent monthly statements to Delk.
- Delk’s construction ran over budget; Delk encountered financial troubles and stopped work in September 2008; Szekelys paid out-of-pocket to keep going.
- Potter’s later claimed Delk owed $33,647.56; Delk later filed for bankruptcy in 2010, extinguishing that debt.
- Potter’s filed a 2010 unjust enrichment complaint against the Szekelys seeking $33,647.56; Potter’s moved for summary judgment in May 2012; court granted partial summary judgment on liability, reserving damages.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the trial court complied with Rule 56.04 by stating grounds for the summary judgment. | Potter’s contends grounds were implied by undisputed facts. | Szekelys argue the record shows disputed facts and no stated grounds in the order. | No; the order failed to state the legal grounds, requiring vacatur and remand. |
| Whether the record supports entry of summary judgment on unjust enrichment. | Potter’s asserts undisputed facts show Szekelys benefited without payment and remedies exhausted. | Szekelys contend Potter’s failed to exhaust remedies against Delk or show futility. | Unable to determine based on record; insufficient to uphold without stated grounds; remand warranted. |
Key Cases Cited
- Smith v. UHS of Lakeside, Inc., 439 S.W.3d 303 (Tenn.2014) (mandatory grounds requirement under Rule 56.04; explains legislative purpose and need for explanation)
- Freeman Indus., LLC v. Eastman Chem. Co., 172 S.W.3d 512 (Tenn.2005) (elements of unjust enrichment and exhaustion of remedies)
