St. George Holdings LLC v. James D. Hutcherson

This appeal concerns an option agreement. St. George Holdings, LLC (“SGH”), an entity formed to purchase the old St. George Hotel (“the Hotel”) in Chattanooga, entered into an agreement with James D. Hutcherson (“Hutcherson”) under which SGH would borrow $700,000 from Hutcherson to develop the Hotel. An option agreement, one of four documents executed in the transaction, provided that if SGH was unable to obtain a full development loan in 18 months, Hutcherson could purchase the Hotel for the amount of his loan. SGH never obtained a development loan. When Hutcherson attempted to exercise his right to purchase, SGH refused to comply. Instead, SGH sued Hutcherson in the Circuit Court for Hamilton County (“the Trial Court”). Hutcherson filed a counterclaim. The Trial Court granted summary judgment to Hutcherson on SGH’s claims. After trial on Hutcherson’s counterclaim, the Trial Court granted him specific performance. SGH appeals, arguing among other things, that a jury waiver provision in the deed of trust did not serve to waive its right to jury under the option agreement. We hold, inter alia, that the deed of trust’s separately-initialed jury waiver, broad in its language as to its scope across the transaction, was sufficient to waive the right to jury for actions arising out of the option agreement. We affirm the judgment of the Trial Court in all respects.