Supreme Court Opinion Intreprets Contact Renewal

Tuesday, November 20, 2012

In a unanimous opinion, the Tennessee Supreme Court ruled Tuesday that a subsequent contract between parties that shares provisions similar to a previous contract does not necessarily constitute a renewal of the earlier agreement.

At issue in BSG, LLC v. Check Velocity, Inc. is Check Velocity’s payment of fee residuals to BSG for referring clients to Check Velocity’s check re-presentment services. The parties executed two contracts that governed business they did together from early 2004 until early 2009. During that time, BSG referred Weight Watchers to Check Velocity. Check Velocity and Weight Watchers entered into an “Electronic Check Recovery Agreement” that expired June 29, 2007 although they continued to operate under the terms of that agreement until August 2008. During that time, Check Velocity continued to pay fee residuals to BSG. 

In August 2008, Check Velocity and Weight Watchers entered into a “Collection Services Agreement” in which Check Velocity continued to provide electronic re-presentment services but under different terms and with added responsibilities. Check Velocity ceased payments to BSG after September 15, 2008.

BSG filed a complaint alleging Check Velocity’s failure to pay fee residuals on the Weight Watchers contract constituted a breach of their 2006 agreement. 

The trial court awarded summary judgment in favor of Check Velocity, which was reversed by the Court of Appeals, holding that the 2008 agreement between Weight Watchers and Check Velocity was a renewal of the previous agreement and therefore required Check Velocity to pay BSG fee residuals under the terms of their 2006 agreement.

The Supreme Court reverses the Court of Appeals and affirms the trial court, holding today that, under the terms of the contract between BSG and Check Velocity, the second agreement between Weight Watchers and Check Velocity was not a renewal of the first agreement that would require Check Velocity to pay fee residuals to BSG.

To read the BSG, LLC v. CHECK VELOCITY, INC opinion, authored by Justice Janice M. Holder, visit ­­­­­­­­­­­­­­­­­­ TNCourts.gov. 



Tennessee American Water Submits 2015 Infrastructure Capital Projects

Tennessee American Water has submitted to the Tennessee Regulatory Authority its 2015 infrastructure capital projects in conjunction with the new alternative rate mechanism.   Approved earlier in 2014 by the Tennessee Regulatory Authority, the alternative rate mechanism creates a process whereby Tennessee American Water will annually submit by December 1 its capital infrastructure ... (click for more)

Supreme Court Reinstates Jury Verdict Awarding MTSU Employee Damages

The Tennessee Supreme Court unanimously reinstated a jury verdict, finding that a former maintenance employee of Middle Tennessee State University (MTSU) suffered unlawful retaliation through the actions of his supervisor. Jim Ferguson, a Japanese-American, argued that shortly after he filed a discrimination lawsuit against MTSU, his supervisor retaliated against him by requiring ... (click for more)

Downtown Chattanooga Apartment Complex Fetches $15 Million

Walnut Commons, the first downtown apartment complex built in many years, sold for $15 million, one of the developers said. John Clark said the initial estimate on the project was $11 million and it wound up costing around $12 million to build. "We're very pleased with the sale," he said. Mr. Clark, along with partners David Hudson and Bob McKenzie, are selling their stock ... (click for more)

Hamilton County Principal Ronald Hughes Named Tennessee's 2014-15 Principal Of The Year

A Hamilton County elementary school principal and an Anderson County supervisor have earned top honors for their work in Tennessee education. Ronald Hughes, principal of Apison Elementary School in Chattanooga, was named Tennessee’s 2014-15 Principal of the Year. He has served as principal at Apison Elementary for the past six years, and spent three decades working in Tennessee ... (click for more)

Congratulations To Ron Hughes

Hearty congratulations to Ron Hughes for being selected as Tennessee State Elementary Principal of the Year for 2014. Wherever Ron has been assigned as principal, he has exhibited strong leadership both academically and morally. His faith in God and his love for the students of Hamilton County have guided his actions and everyone that has benefited from the excellent education ... (click for more)

Roy Exum: Brittany’s Days Dwindle

So here we are, facing what is known as “Devil’s Night” before Halloween comes, and the almost macabre news now comes that Brittany Maynard, the beautiful girl who has chosen to end her life as soon as Saturday, is struggling to meet her own deadline. She has inoperable brain cancer and, at best, only months to live. The 29-year-old, who was married shortly before her devastating ... (click for more)