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Dialysis Clinic, Inc. v. Medley

Court of Appeals of Tennessee, Nashville

September 14, 2017

DIALYSIS CLINIC, INC., ET AL
v.
KEVIN MEDLEY, ET AL

          Session August 15, 2017

         Appeal from the Circuit Court for Davidson County No. 14C4843Joseph P. Binkley, Jr., Judge.

         Appellant appeals the denial of its Tennessee Rule of Civil Procedure 24 motion to intervene in the underlying lawsuit. Because the order appealed is not final, this Court has no subject-matter jurisdiction to hear the appeal. Tenn. R. App. P. 3(a). Appeal dismissed.

         Tenn. R. App. P. 3 Appeal as of Right; Appeal Dismissed

          L. Vincent Williams, Nashville, Tennessee, for the appellant, Outloud! Inc.

          Peter C. Sales and Frankie N. Spero, Nashville, Tennessee, for the appellee, Dialysis Clinic, Inc.; L. Vincent Williams, Nashville, Tennessee, for the appellees, Canvas Lounge, 3 Entertainment Group, LLC, Kevin E. Medley, and Kevin Medley, LLC; Samuel L. Felker, Memphis, Tennessee, for appellee Outcentral, Inc.

          Kenny Armstrong, J., delivered the opinion of the court, in which Arnold B. Goldin and Brandon O. Gibson, JJ., joined.

          OPINION

          KENNY ARMSTRONG, JUDGE.

         Appellee Dialysis Clinic, Inc. ("DCI") is the owner of 1703, 1705, 1707, and 1709 Church Street, Nashville (the "Church Street Properties"). In 2004, before DCI purchased the Church Street Properties, its predecessor in interest, Ralph Gordon, conveyed leasehold interests in the Church Street Properties to Ted Jensen and Outloud!, Inc. ("Outloud!, " or "Appellant") pursuant to two leases. The first lease, which was executed on February 1, 2004, was between Mr. Gordon, Mr. Jensen, and Outloud! (the "1707/1709 Lease"). The second lease, which was executed on July 1, 2004, was between Mr. Gordon, Mr. Jensen, individually, and d/b/a Outloud! (the "1703/1705 Lease"). Kevin Medley is the sole shareholder of Outloud!. Ted Jensen served as the Secretary and Registered Agent for Outloud! After The 1707/1709 Lease and the 1703/1705 Lease were executed, Mr. Jensen sublet the Church Street Properties to Mr. Medley pursuant to two sublease agreements.

         In July of 2012, DCI purchased the Church Street Properties from Mr. Gordon. In conjunction with the purchase, Mr. Gordon assigned the 1703/1705 Lease and the 1707/1709 Lease to DCI. These leases provided for termination of the lease for failure to pay rent. Mr. Jensen and Outloud! failed to make rent payments to DCI. On June 21, 2013, DCI sent notice of termination of the leases to Mr. Jensen and Outloud!

         On June 21, 2013, DCI filed unlawful entry and detainer actions (one for each of the Church Street Properties) against Mr. Jensen and Outloud! On August 2, 2013, the general sessions court entered judgments against Mr. Jensen and Outloud! (the "First Action"). The general sessions court awarded judgment for unpaid rent, damages, attorney's fees and costs; DCI was also awarded possession of the Church Street Properties. More than two years after the general sessions court entered judgments in the First Action, Outloud! filed a petition for writ of certiorari, seeking appeal of the general sessions court's judgments in the circuit court. Following dismissal of the petition for writ of certiorari, Outloud! appealed to this Court, and we affirmed the trial court's dismissal of its petition. Outloud!, Inc. v. Dialysis Clinic, Inc., et al., No. M2016-01528-COA-R3-CV, 2017 WL 4004161 (Tenn. Ct. App. Sept. 11, 2017).

         On October 14, 2014, DCI filed three separate unlawful entry and detainer actions. The first action was brought against Kevin Medley, to whom Ted Jensen sublet the Church Street Properties. The second and third lawsuits were brought against Canvas 3 Entertainment and Outcentral, to which Mr. Medley sublet the Church Street Properties. These actions were later consolidated and removed to the Circuit Court in November of 2014 (the "Present Action"). On February 26, 2016, DCI filed a motion for summary judgment, which was set for hearing on April 8, 2016. The motion for summary judgment was never heard or adjudicated.

         On April 6, 2016, without first seeking leave of court, Outloud! filed its First Intervening Complaint in the Present Action, which intervening complaint was stricken for failure to comply with Tennessee Rule of Civil Procedure 24. Thereafter, on July 12, 2016, Outloud! filed a motion to intervene and a Second Intervening Complaint in the Present Action. DCI opposed the motion on the ground of prior suit pending and failure to satisfy the requirements of Tennessee Rule of ...


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