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Apollo Hair Systems of Nashville, Inc. v. Micromode Medical Limited

Citation: Not availableDocket: M2011-01480-COA-R3-CV

Court: Court of Appeals of Tennessee; November 28, 2012; Tennessee; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

The case involves Apollo Hair Systems of Nashville, Inc. (Apollo), which engaged in legal proceedings against Micromode Medical Limited and its distributor, Apollo International, over allegations of intentional and negligent misrepresentation, and violations of the Tennessee Consumer Protection Act (TCPA). The dispute arose from issues with beauty equipment purchased under a distribution agreement. The trial court ruled against Apollo's claims against Micromode but favored Apollo in its claims against Apollo International, awarding damages. Apollo's appeal against Micromode was rejected by the Court of Appeals. Apollo International, facing dissolution due to organizational deficiencies, was involved in selling devices that lacked FDA approval, leading to legal complications. During the proceedings, CACI moved for summary judgment based on lack of privity and inadequate evidence, leading to dismissal of Apollo's claims. The trial court also denied Apollo's motion to amend its complaint, citing untimeliness and futility. The court found that Apollo failed to plead fraud with the requisite particularity and lacked evidence of communication with CACI, critical to its claims. On appeal, the court affirmed the trial court's rulings, emphasizing that Apollo did not meet the burden of demonstrating genuine issues of material fact. The appellate court upheld the summary judgment in favor of CACI, concluding that Apollo's claims were insufficiently supported.

Legal Issues Addressed

Amendment of Pleadings

Application: The court denied Apollo's motion to amend its complaint due to untimeliness and lack of justification for the delay, highlighting the discretion of courts in such matters.

Reasoning: The trial court denied the amendment request due to undue delay and failure to address prior deficiencies.

Intentional and Negligent Misrepresentation Claims

Application: Apollo's claims were dismissed as they failed to establish essential elements, including a false representation and prior communication necessary for such claims.

Reasoning: Apollo failed to establish an essential element of the claim, affirming the dismissal of both claims.

Pleading Fraud with Particularity under Tennessee Rule of Civil Procedure 9.02

Application: Apollo's claims of intentional misrepresentation were dismissed due to insufficient pleading of specific facts regarding the alleged misrepresentations.

Reasoning: The trial court dismissed Apollo's claims for intentional misrepresentation and TCPA violations due to Apollo's failure to plead the requisite circumstances with particularity, as mandated by Tennessee Rule of Civil Procedure 9.02, which requires specific details in claims of intentional misrepresentation.

Summary Judgment under Tenn. R. Civ. P. 56.04

Application: The court dismissed Apollo's claims against CACI, ruling no genuine issues of material fact existed and CACI was entitled to summary judgment as a matter of law.

Reasoning: The trial court dismissed all of Apollo's claims against CACI, ruling no genuine issues of material fact existed and that CACI was entitled to summary judgment as a matter of law, particularly noting the lack of privity for warranty claims and insufficient proof for misrepresentation.

Tennessee Consumer Protection Act Claims

Application: Apollo's TCPA claims were dismissed due to lack of specific allegations necessary to support a claim of unfair or deceptive practices.

Reasoning: Apollo's complaint lacked sufficient detail to support its claims for intentional misrepresentation and a violation of the Tennessee Consumer Protection Act (TCPA), leading to the affirmance of their summary dismissal.