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. 




Marc Gravitt Honored With The Tennessee Leadership Award By The Tennessee Association Of Assessing Officers

Rep. Marc Gravitt has been awarded the Tennessee Leadership Award by the Tennessee Association of Assessing Officers. Will Denami, Executive Director of the Tennessee Association of Assessing Officers, presented the award to Representative Gravitt on behalf of the statewide association. “Rep. Marc Gravitt continues to study the issues and listen closely to his constituents he ... (click for more)

BASF’s Chattanooga Sites Receive Tennessee Governor’s Award Of Excellence For Workplace Safety

The BASF sites in Chattanooga received the Governor’s Award of Excellence for Workplace Safety by working all of 2016 without a lost time, restricted duty or medical workplace injury or illness. The award honors Tennessee employers and employees who meet a required number of hours without workplace injuries serious enough to cause an employee to miss a day of work or restrict ... (click for more)

Prosecutor Says Brewer Was Driving 80 And Was High On Meth At Time Of Horrific Wreck At Ooltewah Exit; Defense Says There Is No Evidence Of Intoxication

A prosecutor on Monday told a Criminal Court jury from Nashville that Benjamin Scott Brewer Brewer was driving 80 mph, was high on meth and never hit his brakes when he caused an horrific wreck on June 25, 2015, at the Ooltewah exit of I-75. Crystle Carrior asked the jury to find Brewer guilty of six counts of vehicular homicide by intoxication, four counts of reckless aggravated ... (click for more)

2 Top Officials Leave Administration Of Sheriff Eric Watson

Bradley County Sheriff Eric Watson on Sunday announced the resignations of Chief Deputy Brian Smith and Director of Administrations Arnold Botts. He said they "served with distinction for the past four years." The Sheriff's Office said, "Smith notified Sheriff Watson that he is exploring business opportunities in the private sector, while Botts mentioned the timing was right ... (click for more)

General Bell: This Government Shutdown Is Outrageous - And Response

The day before yesterday two Army Apache Attack Helicopter pilots were killed in a crash during training at Fort Irwin, Ca.  The pilots and their unit were preparing for a future deployment to combat operations.    As a result of the government shutdown, none of the spouses or families of these pilots will receive a dime from the United States Government in immediate ... (click for more)

Roy Exum: Rebranding & ‘Culture’

My grandfather, who ran several very successful businesses, was a very astute fellow. I can’t tell you how many times he said, “The worst thing any salesman who calls on a business can say is, ‘I am here to save you some money.’ That’s not true -- In every instance they are in front of you hoping to make some money for themselves, else they would have never come by.” Another ... (click for more)