Earlene Gregory v. Michael Melhorn, et al

Earlene Gregory brought this action against Michael Melhorn and his wife, Cynthia Melhorn, sellers of a house and real estate, alleging that the defendants falsely stated in their Tennessee Residential Property Disclosure statement that they were unaware of any defects in the exterior walls or basement or any flooding or drainage problems. The contract for sale of the property, executed and signed by plaintiff and defendants, provided that the warranty deed was to be made in the name of Earlene Singleton Gregory. During discovery, the parties discovered that the deed actually listed the plaintiff’s three sons as grantees. After defendants moved for summary judgment on the ground that plaintiff lacked standing because she did not own the property, plaintiff moved to amend the complaint to include a claim for reformation of the deed to reflect her intention at the time of sale, i.e., to retain a life estate in the property with a remainder interest in her sons. Plaintiff also filed a motion to allow her sons to intervene as plaintiffs on the ground that they held legal title to the property. The trial court denied plaintiff’s motions and granted defendants summary judgment, holding that plaintiff lacked standing because she did not own the property. The court further held that the proposed intervening plaintiffs, even if allowed to intervene, would lack standing because they were not parties to the contract. We vacate the trial court’s summary judgment. We hold that the trial court abused its discretion in refusing to allow plaintiff to amend her complaint under Tenn. R. Civ. P. 15.01, and by refusing to allow the plaintiff’s sons to intervene, as was their right under Tenn. R. Civ. P. 24.01.