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. 



Partnership FCA Announces Thrift Store Grand Opening

Partnership for Families, Children and Adults announced the Grand Opening of a retail store, Partnership FCA Thrift and Consignment. The store opens  Aug. 30  and is located at 301-D Martin Luther King Boulevard. The grand opening will be celebrated with a ribbon cutting and reception at  11 a.m.  on  Tuesday, Aug. 30 . Regular business hours will ... (click for more)

Todd Gaither Receives Certified Long-Term Care Designation

Todd Gaither, a financial advisor with Tandem Financial Partners, of Ameriprise Financial Services, Inc., has been awarded a professional designation in the field of long-term care, Certified in Long-Term Care. The program is independent of the insurance industry and is designed to provide financial service professionals with expertise and tools to address long-term care planning ... (click for more)

Maryville Police Department's Kenny Moats Slain

Officer Kenny Moats of the Maryville Police Department was shot and killed while responding to a domestic violence call on Thursday.  Officer Moats was with the department for over nine years and was currently serving as a drug enforcement agent. Assistant Commissioner of Safety and Homeland Security David Purkey said, "It is with heavy heart that I express my condolences ... (click for more)

Auto Burglary Thwarted In Bradley County

A man has been arrested in Bradley County, after attempting to steal a vehicle. On Thursday, Deputy Jessica Morgan observed a silver truck in a church parking lot on South Lee Highway. While checking the premises, Dep. Morgan observed a male wearing a black tank top and red shorts exiting the rear window of the cab into the bed of the truck. Once the suspect noticed Dep. Morgan, ... (click for more)

Pedestrians Have The Right Of Way - And Response (2)

Often I visit Gold's Gym at Chestnut and 4th Street. I  park in the theater parking lot at Broad and 4th Street.  I depend on the walk signs to get me there safely.  Most days I almost get hit by someone turning left or right coming from the exit ramp off 27 or turning right on 4th street from Chestnut. This happened yesterday as I was almost mowed down by a garbage ... (click for more)

Roy Exum: The Gold & Ivory Tablecloth

Not long ago, in my morning reading, I happened across an obscure tale about a special tablecloth. And, as things like this are more and more wont to do, I was instantly blessed by this story. As I tracked down its origin, I learned it originally appeared in a 1954 edition of Reader’s Digest. Written by the Rev. Howard C. Schade, who at the time was the pastor of the First Reformed ... (click for more)