Commercial Painting Company Inc. v. The Weitz Company LLC

Style: Commercial Painting Company Inc. v. The Weitz Company LLC

TSC Docket Number: W2019-02089-SC-R11-CV

Court of Appeals Opinion: https://www.tncourts.gov/sites/default/files/commercialpaintingopn1.pdf

Summary by the Court of Appeals:

This is the third appeal arising from a commercial construction project. Most recently, the case went to trial before a jury, which awarded the plaintiff subcontractor $1,729,122.46 in compensatory damages under four separate theories and $3,900,000.00 in punitive damages. The trial court further awarded the plaintiff pre- and post-judgment interest and attorney’s fees and costs. We conclude the economic loss rule is applicable to construction contracts negotiated between sophisticated commercial entities and that fraud is not an exception under the particular circumstances of this case. Because punitive damages and interest are not authorized under the parties’ agreement, those damages are reversed. The compensatory damages of $1,729,122.46 awarded for breach of contract are affirmed. The award of attorney’s fees incurred at trial is vacated for a determination of the attorney’s fees incurred in obtaining the compensatory damages award. No attorney’s fees are awarded on appeal. We, therefore, reverse in part, affirm in part, and vacate in part.

Issues the Court Will Consider:

1. Whether the Court of Appeals erred in applying this Court’s holding in Milan Supply Chain Solutions, Inc. v. Navistar, Inc., 627 S.W.3d 125 (Tenn. 2021), and expanding the application of the economic loss doctrine to the circumstances of this case.

2. Whether the Court of Appeals erred in vacating the trial court’s award of attorney’s fees and in limiting the scope of recoverable fees on remand, and whether the Court of Appeals erred in denying Commercial Painting Company an award of costs and fees on appeal.

Permission to Appeal Granted: August 4, 2022

Appellants’ Briefs Filed: August 26, 2022

Appellees’ Briefs Filed: September 26, 2022

Appellants’ Reply Brief Filed: October 6, 2022

Appellees’ Reply Brief Filed: November 3, 2022

Amicus Briefs Permitted:  

Oral Argument Date: November 9, 2022

Link to Oral Argument Video: https://www.youtube.com/watch?v=019eOfA45go

Date of TSC Opinion:  

Opinion of the TSC: 

TSC Summary of the Opinion: