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Dialysis Clinic, Inc. v. Medley

Court of Appeals of Tennessee, Nashville

May 20, 2019

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

          Session April 2, 2019

          Appeal from the Circuit Court for Davidson County No. 14C4843 Joseph P. Binkley, Jr., Judge

         The owner of four contiguous properties filed unlawful detainer actions against the entities that were occupying the properties. The owner did not name as defendants the individual who signed the lease or his company. A year and a half after the cases were filed, the lessee moved to intervene, claiming that it was entitled to intervene pursuant to Tenn. Rs. Civ. P. 24.01 and/or 24.02 and that it was a necessary party pursuant to Tenn. R. Civ. P. 19.01. The trial court denied the lessee's motion on the grounds of prior suit pending and timeliness. The lessee appealed. Because the court failed to address the lessee's claim that it was a necessary party, we are unable to address that argument on appeal. We vacate the trial court's judgment and remand the case for further proceedings.

         Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Circuit Court Vacated and Remanded

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

          L. Vincent Williams, Nashville, Tennessee, for the appellees, Kevin E. Medley, Kevin Medley, LLC, 3 Entertainment Group, LLC, and Canvas Lounge, LLC.

          Peter C. Sales and Frankie Neil Spero, Nashville, Tennessee, for the appellee, Dialysis Clinic, Inc.

          Andy D. Bennett, J., delivered the opinion of the Court, in which D. Michael Swiney, C.J., and Frank G. Clement, Jr., P.J., M.S., joined.

          OPINION

          ANDY D. BENNETT, JUDGE

         I. Factual and Procedural Background

         This case involves four contiguous properties owned by Dialysis Clinic, Inc. ("DCI") located on Church Street in Nashville: 1703, 1705, 1707, and 1709 (together, "the Church Street Properties"). DCI purchased these properties from S. Ralph Gordon in July 2012. In 2004, Mr. Gordon leased the Church Street Properties to Ted Jensen and Outloud! Inc. ("Outloud!") pursuant to two separate lease agreements. Mr. Jensen was the registered agent, corporate secretary, and a member of the board of directors for Outloud!, a Tennessee corporation. Kevin Medley was the president, chief executive officer, and sole shareholder of Outloud! In 2005 and 2006 Mr. Jensen sublet the Church Street Properties to Kevin Medley, who then sub-sublet them to OutCentral, Canvas Lounge, LLC, and 3 Entertainment Group, LLC. When DCI purchased the Church Street Properties, the leases between Mr. Gordon and Mr. Jensen and Outloud! were assigned to DCI.

         DCI filed four unlawful detainer warrants against Mr. Jensen and Outloud! in the general sessions court for Davidson County on June 21, 2013, one warrant for each of the Church Street Properties ("2013 Action"). DCI asserted claims for rent, damages, possession, and attorney's fees. The court awarded possession and damages to DCI on August 13, 2013. Mr. Jensen appealed the judgments to the circuit court for Davidson County, but Outloud! did not. DCI and Mr. Jensen subsequently reached an agreement whereby Mr. Jensen dismissed his appeals, and DCI entered into amended leases with Mr. Jensen, individually and d/b/a Outloud!, with regard to the Church Street Properties. As amended, the leases provided that the rental period of all the properties was to terminate on August 31, 2014.

         When the termination date of the amended leases passed and the Church Street Properties were not vacated, DCI filed three unlawful detainer warrants on October 6, 2014, against Kevin Medley, Kevin Medley, LLC, Canvas Lounge, LLC, OutCentral, Inc., 3 Entertainment Group LLC, and all other occupants of the Church Street Properties, seeking possession, damages, and interest ("2014 Action"). The three cases were consolidated and removed to the circuit court for Davidson County. Once the cases were consolidated and removed to the circuit court, DCI filed a complaint in accordance with Tenn. R. Civ. P. 8. DCI's causes of action included unlawful detainer, declaratory relief pursuant to the Tennessee Declaratory Judgments Act, Tenn. Code Ann. §§ 29-14-101-113, quantum meruit, and unjust enrichment.

         On April 1, 2016, more than two and a half years after judgments were entered against Mr. Jensen and Outloud! in the 2013 Action, Outloud! filed a petition for writ of certiorari, seeking review of the general sessions' judgments dating from August 2013. DCI moved to dismiss Outloud!'s petition, and the trial court granted the motion, ruling that the petition was time-barred. Outloud! appealed the trial court's dismissal, and we affirmed the trial court's ...


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