# FILED June 9, 1997 Cecil Crowson, Jr. App ellate C ou rt Clerk I N TH E C O U R T O FA PPEA LSO FTEN N ESSEE EA STER N SEC TI O N

TH ELM A W . K ELLEY , ) C / A N O . 03A 01- 9701- C

V

- 00031 ) A ppe l l a nt , ) SEV I ER CI RCU

I T ) v. ) HON. BEN W . HOOPER

, I I , ) J UDGE J OHN E. VANC

Ea n d ) BETTY L. V A N C E, ) ) A FFI R M ED D e f e nd a nt s , ) AND ) R EM ANDED a nd ) ) ALLSTATEI NSUR

ANC ECOM PANY, )

) A pp e l l ee. )

R O BER TL. O G LE, J R., O

G LE& W A LLA C E, P. C., Se vi e r vi l l e , f or A ppe l l a nt . J AM ESS . M

a c DONALD, DUNN, M a c DONALD &

COLEM AN, P. C. , K noxvi l l e , f or A

ppe l l e e .

O

PI N I O N

Fr a nks . J . I n t hi s a c t i on, pl a i nt i f f s e e ks uni ns ur e d m ot or i s t c ove r a ge f r om

he r i ns ur a nc e c om pa ny, a nd t he Tr i a l C our t , r e s pondi ng t o m

ot i on f or s um

m a r y j udgm

e nt , gr a nt e d j udgm e nt t o de f e n d a nt A

lls t a t e I n s ur a nc e C o m p a ny( A

lls t a t e ) . Pl a i ntif f h a s app eal e d . Pl a i nt i f f ha s r a i s e d t w o i s s ue s on a ppe a l :2 1. W he t he r t he Tr i a l C our t e r r e d i n gr a nt i ng s um m a r y j udgm

e nt hol di ng t ha t t he i ns ur e d di d not c om

pl y w i t h t he t e r m

s of he r i ns ur a nc e pol i c y t ha t s he ?

pr om pt l y s e nd ( A

l l s t a t e ) c op i e s o f t he l e g a l p a p e r s i f a s ui t i s br ought . ? 2. W he t he r t he Tr i a l C our t e r r e d i n gr a nt i ng s um m a r y j udgm

e nt by i t s r ul i ng t ha t t he one - y e a r s t a t ut e o f lim ita tion s h a dr una s to A lls t a t e . The a ut om

obi l e a c c i de nt gi vi ng r i s e t o t hi s c a s e oc c ur r e d on J une 16, 1993, a nd pl a i nt i f f f i l e d s ui t a ga i ns t t he ot he r dr i ve r on J une 2, 1994, w i t h pr oc e s s s e r ve d on t hos e de f e nda nt s on J une 6, 1994. O n O c t obe r 6, 1994, pl a i nt i f f obt a i ne d a n or de r f r om t he Tr i a l J udge f or pr oc e s s t o i s s ue a nd be s e r ve d upon A l l s t a t e I ns ur a nc e C om pa ny, w

hi c h pr oc e s s w a s s e r ve d upon t he D e pa r t m e nt of C

om m e r c e a nd I ns ur a nc e on O c t obe r 12, 1994, a nd s ubs e que nt l y f ur ni s he d t o A l l s t a t e by t he D e pa r t m e nt . A

l l s t a t e m

ove d f or s um

m a r y j udgm

e nt on t he gr ounds t ha t pl a i nt i f f ha d f a i l e d t o c om pl y w i t h t he pol i c y pr ovi s i ons a nd t ha t t he s t a t ut e of l i m i t a t i ons ha d r un on a n a c tio na g a i n s t it.

The pe r t i ne nt pol i c y pr ovi s i on i s : A pe r s on s e e ki ng uni ns ur e d m ot or i s t c ove r a ge m us t a l s o: . . . 2. Pr om pt l y s e nd us c opi e s of t he l e ga l pa pe r s , i f a s ui t i s br ought . The r ecor dr e v eal s t h a t t he i n s ur a nce com p a nyw a s f i r s t f ur ni s he d c opi e s of t he s ui t pa pe r s by t he St a t e of Te nne s s e e ’ s D

e pa r t m e nt of I ns ur a nc e . I n r e s pons e t o t he m ot i on f or s um

m a r y j udgm

e nt , t he pl a i nt i f f f i l e d he r a f f i da vi t w hi c hs t a t e s :

V e r y s hor t l y a f t e r m y a c c i de nt w

hi c h oc c ur r e d on J une 16, 1993, I a dvi s e d m y i ns ur a nc e a ge nt , H ow a r d Y a t e s , ag e nt f or A l l s t a t e I n s ur a nce C o m p a ny , and c om pl i e d w

i t h e ve r y r e que s t m a de by A

l l s t a t e I ns ur a nc e C

om pa ny. I n a ddi t i on, t he i ns ur a nc e3 car r i e r p a i dm

e di cal exp e n s e s o nm yb e h a l f i nc i de nt t othe a c c i de nt. A f t e r s uit w

a s f ile da n ds e r vi c e w a s ha d on t he D

e f e nda nt s , I w

a s a dvi s e d by m

y a t t or ne y t ha t a ppa r e nt l y t he D e f e nda nt s ’ V

a nc e ha d no i ns ur a nc e a nd upon t he a dvi s e [ s i c ] of m y a t t or ne yA

l l s t a t e I n s ur a nce C o m p a nyw a s m a de a p a r t y t om ycas e . Pl a i nt i f f of f e r s no e xc us e f or f a i l ur e t o s e nd c opi e s of t he s ui t pa pe r s t o he r i ns ur a nc e c om pa ny, a nd on a ppe a l , a r gue s t ha t s i nc e no pr ej udi c e ha s be e n de m ons t r a t e by t he i ns ur a nc e c om pa ny, t ha t c ove r a ge s houl d be a f f or de d. Thi s j ur i s di c t i on ha s l ong he l d t ha t c ondi t i ons t o be pe r f or m

e d by t he i ns ur e d a r e c ondi t i ons pr e c e de nt t o a c t i va t i ng c ove r a ge unde r t he pol i c y. Se e , e . g . , H a r tfo r d Ac c i de nt and I nde m ni t y C o. , v . C

r e as y , 530 S . W

. 2d 778 ( Te nn. 1975) . Thi s r ul e ha s be e n a ppl i e d t o va r i ous c ondi t i ons i n pol i c i e s of i ns ur a nc e , a nd our c our t s ha ve uni f or m l y he l d t ha t t he l a c k of pr ej udi c e on t he f a i l ur e t o c om pl y w i t h t he pol i c y pr ovi s i on i s not gr ounds t o e xc us e non- c om pl i a nc e w

i t h t he pol i c y pr ovi s i on. Thi s C our t ha s c r i t i c i z e d t hi s r ul e . Se e N or t h Ri v e r I ns . C o. , v . Johns on , 757 S . W . 2d 334 ( Te nn. A

pp. 1988) . Thi s C

our t ha d oc c a s i on t o c ons i de r t he c ondi t i on c ont a i ne d i n t hi s pol i c y i n W hal e y v . U

nde r w ood, 922 S . W

. 2d 110 ( Te nn. A

pp. 1995) , w

he r e t he de l a y i n f ur ni s hi ng c opi e s of t he ? l e g a l p a p e r s ?

w a s de l a ye d s om

e 27 m ont hs . A

ga i n, t he C our t a ppl i e d t he r ul e a s r e qui r e d unde r t he hol di ngs of t he Te nne s s e e Supr e m

e C our t . A

s t he W

hal e y c our t not e d, w e ha ve a dopt e d t he de f i ni t i on of ‘ pr om pt ’ a s di s c us s e d i n 44 A m . J ur . 2d I ns ur a nc e 1330, w hi c h s i m

pl y m e a ns t ha t ?

not i c e m

us t be gi ve n w

i t hi n a r e a s ona bl e t i m e unde r t he c i r c um s t a nc e s of t he case. ?

W i t h no ot he r c i r c um s t a nc e s a ppe a r i ng i n t he c a s e be f or e us , i t c a nnot be s a i d t ha t a de l a y of 4- 1/ 2 m ont hs i n4

f ur ni s hi ng t he l e ga l pa pe r s i s pr om pt . A c c or di ngl y, w

e a r e c ons t r a i ne d t o a f f i r m t he Tr i a l J udge ’ s gr a nt of s um m a r y j udgm e nt upon t he f a i l ur e of t he pl a i nt i f f t o c om pl y w i t h t he t e r m s of he r pol i c y w i t h t he de f e nda nt i ns ur a nc e c om pa ny. W e f i nd i t unne c e s s a r y t o a ddr e s s t he r e m a i ni ng i s s u e s , s i nc e thi s is s u e is de t e r m i n a tiv e o f the a pp e a l . The j udgm

e nt of t he Tr i a l C our t i s a f f i r m

e d, a nd t he cau s e r e m

a nde dw

i t hco s t s o f t he app eal as s e s s e dt ot he a pp e l l a nt .

________________________ H e r s c he l P. Fr a nk s , J . CONC UR:

___________________________ H ous t on M

. G odda r d, P. J .

___________________________ C h a r l e s D

. Su s a n o , J r ., J .5

# FILED June 9, 1997 Cecil Crowson, Jr. App ellate C ou rt Clerk I N TH E C O U R T O FA PPEA LSO FTEN N ESSEE EA STER N SEC TI O N

TH ELM A W . K ELLEY , ) C / A N O . 03A 01- 9701- C

V

- 00031 ) A ppe l l a nt , ) SEV I ER CI RCU

I T ) v. ) ) J OHN E. VANC

Ea n d ) BETTY L. V A N C E, ) ) D e f e nd a nt s , ) ) a nd ) ) ALLSTATEI NSUR

ANC ECOM PANY, )

) A pp e l l ee. )

O R D ER

Thi s c a us e w

a s r e gul a r l y he a r d a nd c ons i de r e d by t he c our t . I TI SN

O W O R D ER ED t ha t t he j udgm

e nt of t he Tr i a l C our t i s af f i r m

e d , andt he cau s e r e m a nde d . The co s t s o f app eal ar e a dj udge d t o a ppe l l a nt , f or w hi c h e xe c ut i on m

a y i s s ue i f n ecess a r y . PER CU RI U M