DIALYSIS CLINIC, INC. ET AL.
KEVIN MEDLEY ET AL.
Session April 2, 2019
from the Circuit Court for Davidson County No. 14C4843 Joseph
P. Binkley, Jr., Judge
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.
R. App. P. 3 Appeal as of Right; Judgment of the Circuit
Court Vacated and Remanded
Vincent Williams, Nashville, Tennessee, for the appellant,
Vincent Williams, Nashville, Tennessee, for the appellees,
Kevin E. Medley, Kevin Medley, LLC, 3 Entertainment Group,
LLC, and Canvas Lounge, LLC.
C. Sales and Frankie Neil Spero, Nashville, Tennessee, for
the appellee, Dialysis Clinic, Inc.
D. Bennett, J., delivered the opinion of the Court, in which
D. Michael Swiney, C.J., and Frank G. Clement, Jr., P.J.,
D. BENNETT, JUDGE
Factual and Procedural Background
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.
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.
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.
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