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 And Chambliss Center For Children Kick-Off Summer At Annual Pool Party

Tennessee American Water and Chambliss Center for Children kicked-off the summer season with a pool party for the children participating in the summer program. Tennessee American Water filled up the more than 35,000-gallon pool at no cost to Chambliss Center for Children. “Clean and reliable water is an essential life resource. We are committed to providing high quality water ... (click for more)

Hixson Dentist Awarded Tennessee Dental Association Fellowship

Dr. Michael R. Johnson, a Hixson dentist, received the prestigious Tennessee Dental Association (TDA) Fellowship Award during the recent Music City Dental Conference held in Nashville, the 149th annual meeting of the TDA. The Fellowship Award is presented to no more than twelve deserving Tennessee dentists each year who make noteworthy contributions of their time and talent toward ... (click for more)

Large Hole Develops In Lane Of I-24 Eastbound Over Chestnut Street; Emergency Repair Undertaken

 A large hole developed in the I-24 eastbound bridge over Chestnut Street in Chattanooga on Sunday evening. Jennifer Flynn of TDOT said, "The hole is such that we are having to close a lane to protect traffic.  This will cause a significant backup in traffic, especially given the holiday.  "This is the same bridge, but different location that we recently did ... (click for more)

12 Lost Hikers Rescued At Rainbow Lake, Edwards Point

Eleven adults and a child were briefly lost at Rainbow Lake and Edwards Point trails on Signal Mountain on Sunday. A 911 call was made at 9:45 p.m. from one of the hikers reporting the group lost sunlight hiking out of the trails at Edwards Point. Th Signal Mountain Fire Department and the Walden's Ridge Emergency Services have responded to the scene to ... (click for more)

Parking Discrimination Downtown

Many taxpayers who reside in Chattanooga (but outside Chattanooga's core) feel left behind when it comes to neighborhood paving, sidewalks, policing, streetscaping, street sweeping, public transportation, and other services. Some think most tax dollars are spent on downtown and not in their neighborhoods. It's not as if they can't vicariously experience the largesse of downtown. ... (click for more)

Roy Exum: One Nameless Ghost

One hundred years ago the United States was at war. The most intense fighting during World War I was on what was called The Western Front. The Germans wanted to invade France from the north and in order to do it, they had to push through Flanders province in Belgium. It has been described as a hell unequalled in raw hand-to-hand combat, In just four months on Flanders fields, ... (click for more)