### IN THE SUPREME COU RT OF TEN NESSEE

AT KNOX VILLE

May 6, 20 14 Ses si on

DENNIS MICHAE L HARRI S E T A L



### . v. MI CKEY DEANNE HAYNES E T A L



### .

A p p e a l b y P e r m i s s i o n f r o m t h e C o u r t o f A p p e a l s , E a s t e r n S e c t i o n

C i r c u i t C o u r t f

o r A n d e r s o n C o u n t y

N o

. B 0 L A 0 3 3 3 D o n a l d R

. E l l e d g e , J u d g e

N o

. E 2 0 1 2

- 0 2 2 1 3

- S C

- R 1 1

- C V

- F i l e d A u g u s t 2 6

, 2 0 1 4

W e g r a n t e d p e r m i s s i o n t o a p p e a l t o d e t e r m i n e w h e t h e r a g o v e r n m e n t a l f u n d e s t a b l i s h e d i n

a c c o r d a n c e w i t h T e n n e s s e e C o d e A n n o t a t e d s e c t i o n s 2 9

- 2 0

- 4 0 1 t o

- 4 0 8 ( 2 0 1 2 )

, w h i c h a l l o w s

g o v e r n m e n t a l e n t i t i e s t o p o o l r e s o u r c e s i n o r d e r t o a d d r e s s l i a b i l i t i e s c r e a t e d u n d e r t h e

G o v e r n m e n t a l T o r t L i a b i l i t y A c t

, i s s u b j e c t t o t h e u n i n s u r e d m o t o r i s t c o v e r a g e r e q u i r e m e n t s

o f T e n n e s s e e C o d e A n n o t a t e d s e c t i o n s 5 6

- 7

- 1 2 0 1 t o

- 1 2 0 6 ( 2 0 0 8 )

. W e h o l d t h a t s u c h f u n d s

a r e s t a t u t o r i l y e x e m p t f r o m t h e i n s u r a n c e s t a t u t e s a n d t h e r e f o r e t h e r e q u i r e m e n t s o f t h e

u n i n s u r e d m o t o r i s t s t a t u t e d o n o t a p p l y

. A c c o r d i n g l y

, w e a f f i r m t h e C o u r t o f A p p e a l s ’

j u d g m e n t u p h o l d i n g t h e t r i a l c o u r t ’ s d e c i s i o n g r a n t i n g s u m m a r y j u d g m e n t t o T e n n e s s e e R i s k

M a n a g e m e n t T r u s t a n d r e m a n d t o t h e t r i a l c o u r t f o r f u r t h e r p r o c e e d i n g s c o n s i s t e n t w i t h t h i s

d e c i s i o n

.

T e n n

. R

. A p p

. P

. 1 1 A p p e a l b y P e r m i s s i o n ;

J u d g m e n t o f t h e C o u r t o f A p p e a l s A f f i r m e d ; C a s e R e m a n d e d t o t h e T r i a l C o u r t

C O R N E LIA A

. C LA R K

, d e l i v e r e d t h e o p i n i o n o f t h e C o u r t

, i n w h i c h G A R Y R

. W A D E

, C

. J

. , a n d

J A N IC E M

. H O LD E R

, W ILL IA M C

. K O C H

, J R

. , A N D S H A R O N G

. L E E

, J J

. , j o i n e d

.

D a v i d A

. S t u a r t

, C l i n t o n

, T e n n e s s e e

, f o r t h e a p p e l l a n t s

, D e n n i s M i c h a e l H a r r i s a n d J u d y A

.

H a r r i s

.

J o n a t h a n S w a n n T a y l o r a n d C o u r t n e y R

. H o u p t

, K n o x v i l l e

, T e n n e s s e e

, f o r t h e a p p e l l e e

,

T e n n e s s e e R i s k M a n a g e m e n t T r u s t

.

R o b y n B e a l e W i l l i a m s a n d D e a n n a L e e F a n k h a u s e r

, N a s h v i l l e

, T e n n e s s e e

, f o r t h e a m i c i

c u r i a e

, T e n n e s s e e M u n i c i p a l L e a g u e a n d L o c a l G o v e r n m e n t P r o p e r t y a n d C a s u a l t y F u n d

.O P I N I O N

I

. F a c t s a n d P r o c e d u r a l H i s t o r y

T h e m a t e r i a l f

a c t s o f t h i s a p p e a l a r e u n d i s p u t e d

. O n A u g u s t 1 5

, 2 0 0 9

, a t

a p p r o x i m a t e l y 1 1 : 2 0 p

. m

. , D e n n i s M i c h a e l H a r r i s

, a p a t r o l m a n w i t h t h e A n d e r s o n C o u n t y

S h e r i f f ’ s D e p a r t m e n t

, w a s a s s i s t i n g w i t h t r a f f i c c o n t r o l a t t h e s c e n e o f a v e h i c u l a r c o l l i s i o n

w h e n h e w a s s t r u c k b y a p i c k u p t r u c k d r i v e n b y M s

. M i c k e y D e a n n e H a y n e s

. M r

. H a r r i s

r e c e i v e d w o r k e r s ’ c o m p e n s a t i o n b e n e f i t s f o r h i s w o r k

- r e l a t e d i n

j u r i e s

.

I n J u l y 2 0 1 0

, M r

. H a r r i s a n d h i s w i f e J u d y A

. H a r r i s ( “ P l a i n t i f f s ” )

, s u e d M s

. H a y n e s

a n d R i c h a r d H

. F u r r o w

, t h e t r u c k ’ s o w n e r

, a l l e g i n g n e g l i g e n c e a n d v i c a r i o u s l i a b i l i t y a n d 1

s e e k i n g d a m a g e s

. T h e t r i a l c o u r t e n t e r e d a d e f a u l t j u d g m e n t f

o r P l a i n t i f

f s a g a i n s t M s

.

H a y n e s a n d a w a r d e d $ 1

, 0 0 0

, 0 0 0 i n d a m a g e s t o M r

. H a r r i s a n d $ 2 5 0

, 0 0 0 i n d a m a g e s t o M s

.

H a r r i s

. N e i t h e r M s

. H a y n e s n o r M r

. F u r r o w w e r e i n s u r e d

. A s a r e s u l t

, P l a i n t i f f s a l s o m a d e

a c l a i m a g a i n s t T e n n e s s e e R i s k M a n a g e m e n t T r u s t ( “ T R M T ” )

, A n d e r s o n C o u n t y ’ s m o t o r

2

v e h i c l e l i a b i l i t y c o v e r a g e p r o v i d e r

, f o r u n i n s u r e d m o t o r i s t c o v e r a g e

.

3

T R M T i s a n e n t i t y c r e a t e d t h r o u g h i n t e r l o c a l a g r e e m e n t s b e t w e e n g o v e r n m e n t a l

e n t i t i e s

, p u r s u a n t t o T e n n e s s e e C o d e A n n o t a t e d s e c t i o n s 1 2

- 9

- 1 0 1 t o

- 1 1 2 ( 2 0 1 1 )

, a n d u n d e r 4

t h e a u t h o r i t y g r a n t e d b y a p o r t i o n o f t h e T e n n e s s e e G o v e r n m e n t a l T o r t L i a b i l i t y A c t

( “ G T L A ” )

. S e e T e n n

. C o d e A n n

. § 2 9

- 2 0

- 4 0 1

. G o v e r n m e n t a l e n t i t i e s p a r t i c i p a t i n g i n

T R M T c o m b i n e t h e i r f

i n a n c i a l a n d a d m i n i s t r a t i v e r e s o u r c e s t o p r o v i d e r i s k m a n a g e m e n t

,

T he r eco rd on a ppe al in dic at es tha t M r. F urr ow di ed duri ng the pen den cy of the se pro cee din gs. 1

Pla int if fs al so bro ught a cl ai m agains t the ir own uni nsu re d m oto ri st car ri er

, whic h the y set tl ed for 2

the pol ic y limit.

T he p ar ti es use th e t er m

“un ins ure d/u nde ri nsu re d motori st cover age.” F or eas e of re fe re nce , we 3

use th e t er m

“un ins ure d motori st cover age” i n t his opi nio n t o r ef er to bot h t ypes of

cover age.

T his st at ute is known as th e I nte rl oca l Co ope ra ti on Ac t. T he p urp ose of th e Act is 4

to per m it loc al gov er nm ent al uni ts the m ost ef fi ci ent use of the ir power s by

ena bli ng the m to coo per at e wit h ot her loc al it ie s on a bas is of m utu al

adva n t a ge and the re by pro vide ser vices and fa ci li ti es in a m ann er and

pur sua nt to for m s of gov er nm ent al organi zati on that wil l acco rd bes t wit h

geog ra phi c, eco nomic, popu la ti on, and oth er fa ct ors inf lue nci ng the nee ds

and devel opment o f l oca l c om m uni ti es.

T enn . Code Ann. § 12- 9- 102.

-2-i n s u r a n c e

, r e i n s u r a n c e

, s e l f

- i n s u r a n c e

, o r a n y c o m b i n a t i o n t h e r e o f “ f o r a n y a n d a l l o f t h e

a r e a s o f l i a b i l i t y o r i n s u r a b i l i t y

, o r b o t h

, f o r s u c h g o v e r n m e n t a l e n t i t i e s

, i n c l u d i n g

, b u t n o t

l i m i t e d t o

, t h e l i a b i l i t i e s c r e a t e d b y [ t h e G T L A ] ( i n c l u d i n g g e n e r a l a n d p r o f e s s i o n a l

l i a b i l i t i e s )

, l i a b i l i t i e s u n d e r t h e w o r k e r s ’ c o m p e n s a t i o n l a w

, l i a b i l i t i e s u n d e r t h e

u n e m p l o y m e n t c o m p e n s a t i o n l a w

, a n d m o t o r v e h i c l e i n s u r a n c e

. ” I d

. § 2 9

- 2 0

- 4 0 1 ( b ) ( 1 )

.

A n d e r s o n C o u n t y h a d e l e c t e d t o p a r t i c i p a t e i n T R M T a f e w m o n t h s p r i o r t o M r

. H a r r i s ’ s

i n j u r y

.

B o t h P l a i n t i f

f s a n d T R M T m o v e d f

o r s u m m a r y j u d g m e n t o n P l a i n t i f f s ’ c l a i m f

o r

u n i n s u r e d m o t o r i s t c o v e r a g e

. T h e p a r t i e s a g r e e d t h a t

, u n d e r t h e t e r m s o f t h e C o v e r a g e

D o c u m e n t i s s u e d t o A n d e r s o n C o u n t y

, e m p l o y e e s w h o r e c e i v e w o r k e r s ’ c o m p e n s a t i o n

b e n e f i t s a r e n o t a l s o e l i g i b l e t o r e c e i v e u n i n s u r e d m o t o r i s t c o v e r a g e

. H o w e v e r

, P l a i n t i f f s 5

a r g u e d t h a t t h i s e x c l u s i o n c o n f l i c t s w i t h T e n n e s s e e C o d e A n n o t a t e d s e c t i o n 5 6

- 7

- 1 2 0 1 ( a ) ( 1 )

- ( 2 )

, w h i c h m a n d a t e s t h a t e v e r y a u t o m o b i l e l i a b i l i t y i n s u r a n c e p o l i c y i n c l u d e u n i n s u r e d

m o t o r i s t c o v e r a g e e q u a l t o t h e b o d i l y i n j u r y l i m i t s o f t h e l i a b i l i t y p o l i c y

, u n l e s s s u c h

c o v e r a g e i s r e

j e c t e d i n w r i t i n g o r a l e s s e r u n i n s u r e d m o t o r i s t c o v e r a g e i s s e l e c t e d

. T e n n

.

C o d e A n n

. § 5 6

- 7

- 1 2 0 1 ( a ) ( 2 0 0 8 )

. T R M T a r g u e d t h a t i t i s n o t a n i n s u r a n c e c o m p a n y a n d

i s t h e r e f o r e n o t s u b

j e c t t o t h e r e q u i r e m e n t s o f t h e u n i n s u r e d m o t o r i s t s t a t u t e o n w h i c h

P l a i n t i f f s r e l i e d

.

T h e t r i a l c o u r t g r a n t e d T R M T s u m m a r y j u d g m e n t

, f i n d i n g t h a t T R M T i s a

“ g o v e r n m e n t p o o l ” c r e a t e d a s a f o r m o f s e l f

- i n s u r a n c e p u r s u a n t t o T e n n e s s e e C o d e

A n n o t a t e d s e c t i o n s 2 9

- 2 0

- 4 0 1 t o - 4 0 8

. T h e t r i a l c o u r t d i d n o t m a k e a s p e c i f i c f i n d i n g a s t o

w h e t h e r t h e u n i n s u r e d m o t o r i s t s t a t u t e a p p l i e d t o T R M T

. I n s t e a d

, t h e t r i a l c o u r t f o u n d t h a t

b y s p e c i f i c a l l y a c c e p t i n g t h e C o v e r a g e D o c u m e n t

, A n d e r s o n C o u n t y h a d r e j e c t e d u n i n s u r e d

T he Co verage Doc um ent T RMT is sue d t o Ande rs on Co unt y provide s: 5

Lia bil it y for bodi ly inj ury to non-em plo yees and oth er cas ual occ upa nts of owned vehicl es

oth er tha n dri vers or ope ra tor s is af for ded in re spe ct of any CLAIM not to exc eed the li m it s

set for th in the T enn ess e e T o r t Lia bil it y Act

, if app li cab le

, or the li m it set for th in the

SCH EDULE OF LIM ITS

, re gardl ess of the numb e r o f cl ai m ant s in any one

OCCURENCE

. A CLAIM for suc h covera ge m ay be m ade to [TRM T] onl y af te r al l oth er

app li cab le covera ge is exh aus te d and only for the amounts al lowe d by th e T enn ess ee T ort

Lia bil it y Act i ncl usi ve of a ny r eco very f rom a ny o the r c overage a vaila ble . T his cover age

sha ll not app ly to employees, agents or con tr act ors act ing on beh al f of the MEM B ER or to

any inj ury covere d by Wo rkers [’ ] Com pen sat ion Law. T he int ent of thi s covera ge is to

app ly to vehicl e occ upa nts onl y, exc lud ing dri vers. I f covera ge is af for d e d u n d e r thi s

sec ti on (Aut om obi le Lia bil it y par agraph C), the n covera ge unde r Auto Lia bil it y par agraph

“A” d oes not app ly.

-3-m o t o r i s t c o v e r a g e f o r e m p l o y e e s a s w e l l a s t h o s e w h o r e c e i v e w o r k e r s ’ c o m p e n s a t i o n

b e n e f i t s

. 6

P l a i n t i f f s a p p e a l e d t h e t r i a l c o u r t ’ s j u d g m e n t

. T h e C o u r t o f A p p e a l s a f f i r m e d t h e t r i a l

c o u r t ’ s g r a n t o f

s u m m a r y j u d g m e n t t o T R M T

, s i m i l a r l y f i n d i n g t h a t T R M T i s a “ r i s k p o o l ”

f o r s c h o o l s a n d g o v e r n m e n t a l e n t i t i e s

. T h e i n t e r m e d i a t e a p p e l l a t e c o u r t e x p l a i n e d t h a t

, b e c a u s e t h e g o v e r n i n g s t a t u t e d e e m s T R M T t o b e a “ r i s k p o o l ” a n d n o t a n i n s u r a n c e

c o m p a n y

, t h e g e n e r a l s t a t u t e r e l a t i n g t o u n i n s u r e d m o t o r i s t c o v e r a g e i n l i a b i l i t y i n s u r a n c e

p o l i c i e s d o e s n o t a p p l y t o t h e C o v e r a g e D o c u m e n t

. A s a r e s u l t

, t h e C o u r t o f A p p e a l s a g r e e d

w i t h t h e t r i a l c o u r t t h a t

, u n d e r t h e t e r m s o f t h e C o v e r a g e D o c u m e n t

, M r

. H a r r i s i s e x c l u d e d

f r o m u n i n s u r e d m o t o r i s t c o v e r a g e a s a n e m p l o y e e a n d a p e r s o n w h o r e c e i v e d w o r k e r s ’

c o m p e n s a t i o n b e n e f

i t s

.

W e g r a n t e d P l a i n t i f

f s ’ T e n n e s s e e R u l e o f A p p e l l a t e P r o c e d u r e 1 1 a p p l i c a t i o n f o r

p e r m i s s i o n t o a p p e a l

. W e a l s o g r a n t e d t h e j o i n t r e q u e s t o f t h e T e n n e s s e e M u n i c i p a l L e a g u e

R i s k M a n a g e m e n t P o o l a n d t h e L o c a l G o v e r n m e n t P r o p e r t y a n d C a s u a l t y F u n d t o f i l e a b r i e f

a n d p a r t i c i p a t e i n o r a l a r g u m e n t a s a m i c i c u r i a e

.

I I

. S t a n d a r d o f R e v i e w

S u m m a r y j u d g m e n t i s a p p r o p r i a t e w h e r e t h e r e i s n o g e n u i n e i s s u e a s t o a n y m a t e r i a l

f a c t a n d t h e m o v i n g p a r t y i s e n t i t l e d t o j u d g m e n t a s a m a t t e r o f l a w

. T e n n

. R

. C i v

. P

. 5 6

. 0 4 ;

T h o m p s o n v

. M e m p h i s C i t y S c h s

. B d

. o f E d u c

. , 3 9 5 S

. W

. 3 d 6 1 6

, 6 2 2 ( T e n n

. 2 0 1 2 )

. T h e

m o v i n g p a r t y b e a r s t h e b u r d e n o f e s t a b l i s h i n g t h a t s u m m a r y j u d g m e n t i s a p p r o p r i a t e a s a

m a t t e r o f l a w

, w h i l e t h e c o u r t m u s t v i e w t h e e v i d e n c e i n t h e l i g h t m o s t f a v o r a b l e t o t h e

n o n m o v i n g p a r t y a n d r e s o l v e a n y g e n u i n e i s s u e s o f m a t e r i a l f a c t i n i t s f

a v o r

. I d

. W e r e v i e w

a t r i a l c o u r t ’ s d e c i s i o n o n a m o t i o n f o r s u m m a r y j u d g m e n t d e n o v o w i t h n o p r e s u m p t i o n o f

c o r r e c t n e s s

. I d

. I s s u e s o f s t a t u t o r y c o n s t r u c t i o n a r e a l s o r e v i e w e d d e n o v o

. J o h n s o n v

.

H o p k i n s

, 4 3 2 S

. W

. 3 d 8 4 0

, 8 4 4 ( T e n n

. 2 0 1 3 ) ; T h o m p s o n

, 3 9 5 S

. W

. 3 d a t 6 2 2

.

W h e n d e t e r m i n i n g t h e m e a n i n g o f s t a t u t e s

, w e f o l l o w t h e s t a n d a r d r u l e s o f s t a t u t o r y

c o n s t r u c t i o n

. O u r p r i m a r y g o a l “ i s t o c a r r y o u t l e g i s l a t i v e i n t e n t w i t h o u t b r o a d e n i n g o r

r e s t r i c t i n g t h e s t a t u t e b e y o n d i t s i n t e n d e d s c o p e

. ” J o h n s o n

, 4 3 2 S

. W

. 3 d a t 8 4 8 ( q u o t i n g L i n d

v

. B e a m a n D o d g e

, I n c

. , 3 5 6 S

. W

. 3 d 8 8 9

, 8 9 5 ( T e n n

. 2 0 1 1 ) )

. W e p r e s u m e t h a t e v e r y w o r d

i n a s t a t u t e h a s m e a n i n g a n d p u r p o s e a n d t h a t e a c h w o r d ’ s m e a n i n g s h o u l d b e g i v e n f u l l e f f e c t

a s l o n g a s d o i n g s o d o e s n o t f r u s t r a t e t h e G e n e r a l A s s e m b l y ’ s o b v i o u s i n t e n t i o n

. I d

. W o r d s

T he t r i a l cou rt fou nd tha t Ander son Count y had m et the st at uto ry re qui re m ent s for re j ect ing 6

uni nsu re d m oto ri st covera ge, and tha t the act ion s of the Count y Com m is si on were the ef fe ct ive equival ent

of a r ej ect ion “i n wr it ing” un der T enn ess ee Code Annot at ed s ect ion 56- 7- 1201 (a )( 2).

-4-“ ‘ m u s t b e g i v e n t h e i r n a t u r a l a n d o r d i n a r y m e a n i n g i n t h e c o n t e x t i n w h i c h t h e y a p p e a r a n d

i n l i g h t o f t h e s t a t u t e ’ s g e n e r a l p u r p o s e

. ’ ” I d

. ( q u o t i n g M i l l s v

. F u l m a r q u e

, I n c

. , 3 6 0 S

. W

. 3 d

3 6 2

, 3 6 8 ( T e n n

. 2 0 1 2 ) )

. W h e n a s t a t u t e ’ s m e a n i n g i s c l e a r

, w e “ ‘ a p p l y t h e p l a i n m e a n i n g

w i t h o u t c o m p l i c a t i n g t h e t a s k ’ a n d e n f o r c e t h e s t a t u t e a s w r i t t e n

. ” I d

. ( q u o t i n g L i n d

, 3 5 6

S

. W

. 3 d a t 8 9 5 )

.

I I I

. A n a l y s i s

T h e s t a t u t e a t i s s u e i n t h i s a p p e a l i s c o n t a i n e d w i t h i n t h e G T L A

, w h i c h w a s e n a c t e d

i n 1 9 7 3 a n d w h i c h p r o v i d e s a c o m p r e h e n s i v e s c h e m e g o v e r n i n g t o r t a c t i o n s a g a i n s t

g o v e r n m e n t a l e n t i t i e s

. H a w k s v

. C i t y o f W e s t m o r e l a n d

, 9 6 0 S

. W

. 2 d 1 0

, 1 4 ( T e n n

. 1 9 9 7 )

.

T h e G T L A r e a f

f i r m s t h e l o n g s t a n d i n g c o m m o n l a w r u l e o f s o v e r e i g n i m m u n i t y

, s t a t i n g

, i n

p e r t i n e n t p a r t

, a s f

o l l o w s :

E x c e p t a s m a y b e o t h e r w i s e p r o v i d e d i n t h i s c h a p t e r

, a l l g o v e r n m e n t a l e n t i t i e s

s h a l l b e i m m u n e f

r o m s u i t f

o r a n y i n j u r y w h i c h m a y r e s u l t f r o m t h e a c t i v i t i e s

o f s u c h g o v e r n m e n t a l e n t i t i e s w h e r e i n s u c h g o v e r n m e n t a l e n t i t i e s a r e e n g a g e d

i n t h e e x e r c i s e a n d d i s c h a r g e o f a n y o f t h e i r f u n c t i o n s

, g o v e r n m e n t a l o r

p r o p r i e t a r y

.

T e n n

. C o d e A n n

. § 2 9

- 2 0

- 2 0 1 ( a ) ( S u p p

. 2 0 1 3 )

. A f t e r r e a f f i r m i n g g o v e r n m e n t a l i m m u n i t y

g e n e r a l l y

, t h e G T L A r e m o v e s g o v e r n m e n t a l i m m u n i t y i n l i m i t e d a n d e n u m e r a t e d i n s t a n c e s

.

I d

. § § 2 9

- 2 0

- 2 0 2 t o

- 2 0 5 ( 2 0 1 2 ) ; s e e a l s o H a w k s

, 9 6 0 S

. W

. 2 d a t 1 4

.

T h e p o r t i o n o f t h e G T L A a t i s s u e i n t h i s a p p e a l c r e a t e d a m e a n s b y w h i c h

g o v e r n m e n t a l e n t i t i e s c o u l d p o o l r e s o u r c e s a n d m a n a g e t h e i r l i a b i l i t i e s w i t h o u t p u r c h a s i n g

i n s u r a n c e f

r o m t r a d i t i o n a l i n s u r a n c e c o m p a n i e s

. T h i s p o r t i o n o f t h e G T L A p r o v i d e s :

( b ) ( 1 ) A n y t w o ( 2 ) o r m o r e g o v e r n m e n t a l e n t i t i e s a r e h e r e b y g r a n t e d t h e p o w e r

,

a n y p r o v i s i o n o f l a w t o t h e c o n t r a r y n o t w i t h s t a n d i n g

, t o e n t e r i n t o a n a g r e e m e n t

o r a g r e e m e n t s w i t h o n e a n o t h e r f o r j o i n t o r c o o p e r a t i v e a c t i o n t o p o o l t h e i r

f i n a n c i a l a n d a d m i n i s t r a t i v e r e s o u r c e s f o r t h e p u r p o s e o f p r o v i d i n g t o t h e

p a r t i c i p a t i n g g o v e r n m e n t a l e n t i t i e s r i s k m a n a g e m e n t

, i n s u r a n c e

, r e i n s u r a n c e

,

w h i c h i s d e f

i n e d t o m e a n r e i n s u r a n c e b y a n e n t i t y c r e a t e d u n d e r t h i s s e c t i o n

,

s e l f

- i n s u r a n c e

, o r a n y c o m b i n a t i o n t h e r e o f f o r a n y a n d a l l o f t h e a r e a s o f

l i a b i l i t y o r i n s u r a b i l i t y

, o r b o t h

, f o r s u c h g o v e r n m e n t a l e n t i t i e s

, i n c l u d i n g

, b u t

n o t l i m i t e d t o

, t h e l i a b i l i t i e s c r e a t e d b y t h i s c h a p t e r ( i n c l u d i n g g e n e r a l a n d

p r o f e s s i o n a l l i a b i l i t i e s )

, l i a b i l i t i e s u n d e r t h e w o r k e r s ’ c o m p e n s a t i o n l a w

, l i a b i l i t i e s u n d e r t h e u n e m p l o y m e n t c o m p e n s a t i o n l a w

, a n d m o t o r v e h i c l e

i n s u r a n c e

. A l l s u c h a g r e e m e n t s s h a l l b e m a d e p u r s u a n t t o t i t l e 1 2

, c h a p t e r 9

.

-5-. . . .

( c ) ( 1 ) A n y g o v e r n m e n t a l e n t i t y c h o o s i n g t o c r e a t e a n d m a i n t a i n a s p e c i a l f u n d

,

o r t o e n t e r i n t o a n a g r e e m e n t

, a s a u t h o r i z e d i n t h i s s e c t i o n f o r t h e p u r p o s e o f

i n s u r i n g a g a i n s t t h e l i a b i l i t i e s c r e a t e d b y t h i s c h a p t e r

, s h a l l b e d e e m e d t o b e

e l e c t i n g t o s e l f

- i n s u r e a g a i n s t t h e l i a b i l i t i e s e s t a b l i s h e d i n t h i s c h a p t e r a n d s h a l l

,

t h e r e f o r e

, h a v e t h e s a m e l i m i t s o f l i a b i l i t y a s i f t h e m i n i m u m l i m i t s o f l i a b i l i t y

e s t a b l i s h e d i n § 2 9

- 2 0

- 4 0 3 h a d b e e n p u r c h a s e d

.

. . . .

( d ) ( 1 ) N o s p e c i a l f

u n d e s t a b l i s h e d b y a n a g r e e m e n t a u t h o r i z e d u n d e r t h i s

s e c t i o n a n d u n d e r t i t l e 1 2

, c h a p t e r 9

, s h a l l b e c o n s i d e r e d a s a n “ i n s u r a n c e

c o m p a n y ” n o r s h a l l a n y c o n t r i b u t i o n o f f i n a n c i a l o r a d m i n i s t r a t i v e r e s o u r c e s t o

s u c h a s p e c i a l f

u n d b e c o n s i d e r e d a “ p r e m i u m ” o r “ g r o s s p r e m i u m ” u n d e r t i t l e

5 6 f o r a n y p u r p o s e

, i n c l u d i n g r e g u l a t i o n a n d t a x a t i o n

.

T e n n

. C o d e A n n

. § 2 9

- 2 0

- 4 0 1 ( a )

, ( b ) ( 1 )

, ( c ) ( 1 )

, ( d ) ( 1 )

. 7

T h e f o r e g o i n g s t a t u t o r y l a n g u a g e

, i n p a r t i c u l a r s e c t i o n 2 9

- 2 0

- 4 0 1 ( d ) ( 1 )

, i s c l e a r a n d

r e f u t e s P l a i n t i f

f s ’ a r g u m e n t i n t h i s C o u r t t h a t t h e C o v e r a g e D o c u m e n t T R M T i s s u e d t o

A n d e r s o n C o u n t y i s s u b j e c t t o t h e u n i n s u r e d m o t o r i s t s t a t u t e s

, T e n n e s s e e C o d e A n n o t a t e d

s e c t i o n 5 6

- 7

- 1 2 0 1 t o

- 1 2 0 6

. “ N o s p e c i a l f u n d ” e s t a b l i s h e d u n d e r i t s m a n d a t e “ s h a l l b e 8

c o n s i d e r e d a s a n ‘ i n s u r a n c e c o m p a n y ’ n o r s h a l l a n y c o n t r i b u t i o n o f f i n a n c i a l o r a d m i n i s t r a t i v e

r e s o u r c e s t o s u c h a s p e c i a l f u n d b e c o n s i d e r e d a ‘ p r e m i u m ’ o r ‘ g r o s s p r e m i u m ’ u n d e r t i t l e 5 6

[ t h e I n s u r a n c e s t a t u t e s ] f o r a n y p u r p o s e

, i n c l u d i n g r e g u l a t i o n a n d t a x a t i o n

. ” I d

. § 2 9

- 2 0

-

4 0 1 ( d ) ( 1 ) ( e m p h a s i s a d d e d )

. R a t h e r

, a g o v e r n m e n t a l e n t i t y c h o o s i n g t o e n t e r i n t o a n

a g r e e m e n t t o p a r t i c i p a t e i n s u c h a f u n d “ s h a l l b e d e e m e d t o b e e l e c t i n g t o s e l f

- i n s u r e

. ” I d

. §

2 9

- 2 0

- 4 0 1 ( c ) ( 1 )

. T h e n a t u r a l a n d o r d i n a r y m e a n i n g o f t h e l a n g u a g e i s s t r a i g h t f o r w a r d a n d

m e a n s t h a t t h e g o v e r n m e n t a l f u n d s p o o l e d a n d e n t i t i e s c r e a t e d p u r s u a n t t o t h i s s t a t u t e a r e n o t

i n s u r a n c e c o m p a n i e s a n d a r e n o t s u b j e c t t o s t a t u t e s r e g u l a t i n g i n s u r a n c e c o m p a n i e s a n d

p o l i c i e s

. T h e u n i n s u r e d m o t o r i s t c o v e r a g e s t a t u t e o n w h i c h P l a i n t i f f s r e l y p r e s c r i b e s t h e 9

T he re le vant la nguage of the st at ute has re m ai ned unc han ged bet w e e n t h e d a t e of Mr

. Har ri s’ s 7

inj uri es in 2009 and th e pr ese nt.

Pla int if fs ra is e two add it ion al ar gum ent s in thi s Cour t, whic h ar e re nde re d m oot by our con cl usi on 8

tha t t he u nin sur ed motor is t s ta tut e do es not app ly to the Covera ge Document.

Our rea din g is bas ed upon the pla in la nguage of the st at ute ; however, we not e tha t the le gisla ti ve 9

(c ont inu ed.. .)

-6-p r o v i s i o n s t h a t m u s t b e i n c l u d e d i n “ [ e ] v e r y a u t o m o b i l e l i a b i l i t y i n s u r a n c e p o l i c y d e l i v e r e d

,

i s s u e d f o r d e l i v e r y o r r e n e w e d i n t h i s s t a t e

. ” T e n n

. C o d e A n n

. § 5 6

- 7

- 1 2 0 1 ( a )

. T h e G e n e r a l

A s s e m b l y h a s e x p r e s s l y e x e m p t e d T R M T f r o m s t a t u t e s

, s u c h a s s e c t i o n 5 6

- 7

- 1 2 0 1 ( a )

,

r e g u l a t i n g i n s u r a n c e c o m p a n i e s a n d i n s u r a n c e p o l i c i e s

. T h u s

, t h e C o v e r a g e D o c u m e n t i s n o t

s u b j e c t t o t h e r e q u i r e m e n t s o f t h e u n i n s u r e d m o t o r i s t s t a t u t e

. 1 0

O u r c o n c l u s i o n t h a t t h e p l a i n s t a t u t o r y l a n g u a g e e x e m p t s T R M T f r o m i n s u r a n c e

s t a t u t e s i s c o n s i s t e n t w i t h h o w c o u r t s i n o t h e r s t a t e s h a v e i n t e r p r e t e d s i m i l a r s t a t u t e s

. F o r

e x a m p l e

, t h e T e x a s C o u r t o f A p p e a l s r e l i e d u p o n l a n g u a g e i n a T e x a s s t a t u t e e x e m p t i n g

g o v e r n m e n t s e l f

- i n s u r a n c e f

u n d s f r o m s t a t e i n s u r a n c e s t a t u t e s t o h o l d t h a t s u c h f u n d s a r e n o t

r e q u i r e d t o m a i n t a i n u n i n s u r e d m o t o r i s t c o v e r a g e

. H i l l v

. T e x

. C o u n c i l R i s k M g m t

. F u n d

, 2 0

S

. W

. 3 d 2 0 9

, 2 1 3 ( T e x

. A p p

. 2 0 0 0 )

, r e h ’ g o v e r r u l e d ( M a y 2 3

, 2 0 0 0 )

, p e t i t i o n f o r r e v i e w

d e n i e d

, ( T e x

. S e p t

. 7

, 2 0 0 0 )

. S i m i l a r l y

, t h e O h i o C o u r t o f A p p e a l s

, c o n s t r u i n g s t a t u t o r y

l a n g u a g e t h a t “ ‘ a j o i n t s e l f

- i n s u r a n c e p o o l i s n o t a n i n s u r a n c e c o m p a n y

, ’ ” h a s t w i c e h e l d t h a t

O h i o ’ s i n s u r a n c e l a w s

, i n c l u d i n g i t s u n i n s u r e d m o t o r i s t s t a t u t e s

, d o n o t a p p l y t o s u c h

g o v e r n m e n t p o o l s

. B a r r e t t v

. H a r l e y s v i l l e I n s

. C o

. o f O h i o

, 4 t h D i s t

. C u y a h o g a N o

. 8 2 7 8 3

,

2 0 0 4 W L 1 0 3 5 1 3

, a t * 4 ( O h i o C t

. A p p

. J a n

. 2 2

, 2 0 0 4 ) ( q u o t i n g R

. C

. 2 7 4 4

. 0 8 1 ( E ) ( 2 ) ) ; C a t o n

v

. B d

. o f C o m m ’ r s

, 5 t h D i s t

. M u s k i n g u m N o

. C T 2 0 0 2

- 0 0 3 8

, 2 0 0 3 W L 2 1 0 2 5 8 8 7

, a t * 2

- 3

( O h i o C t

. A p p A p r

. 2 9

, 2 0 0 3 )

.

E v e n i n t h e a b s e n c e o f e x p l i c i t s t a t u t o r y e x e m p t i o n s s u c h a s T e n n e s s e e ’ s

, c o u r t s i n

s e v e r a l o t h e r j u r i s d i c t i o n s h a v e s i m i l a r l y r u l e d t h a t s u c h g o v e r n m e n t a l f u n d s a r e n o t r e q u i r e d

(... con ti nue d) 9

his tor y sur rou ndi ng T enn ess ee Code Annot at ed sec ti on 29- 20- 401s uppo rt s our con cl usi on tha t suc h spe ci al

fun ds wer e int end ed to be exe m pt fr om st at ute s re gulat ing ins ura nce compani es and pol ic ie s. Sena tor J ohn

T

. Hic ks, the Sena te spo nso r, exp la ine d tha t a “ spe ci al fun d cr eat ed per suc h agree m ent is not to be

con si der ed ins ura nce or sub j ect ed to the ins ura nce re gulat ion s or ta x a t i o n

. ” Hear ing on S.B. 832 on the

Sena te Flo or, 91s t Ge n. As semb. (T enn . M ar . 29, 197 9) (s ta te m ent of Sen . J ohn T . Hic ks).

Even wer e the Coverage Document sub j ect to the re qui re m ent s of the uni nsu re d m oto ri st st at ute

, 1 0

we agree wit h the Cour t of Appea ls tha t Ander son Count y valid ly and una m biguous ly re

j ect ed uni nsu re d

m oto ri st covera ge for it s employees and tho se covere d by worker s’ compensa ti on ben ef it s when the

Ander son Count y Com m is si on pas sed a re sol uti on app rovin g the Coverage Document. See T enn

. Code Ann.

§ 56- 7- 1201 (“ [A] ny named ins ure d m ay re j ect in w ri ti ng the uni nsu re d m oto ri st covera ge complet el y or

sel ect lowe r li m it s of the covera ge

. . . .”)

. Her e, unde r “Se ct ion I II A uto m obi le Lia bil it y,

Unin sur ed/ Under ins ure d Mo tor is t Lia bil it y,” the Coverage Document con ta ins th e f o ll owin g exe m

pti on:

“T his covera ge sha ll not app ly to employees, agents or con tr act ors act ing on beh al f of the MEM B ER or to

any inj ury cover ed b y Worker s[ ’] Com pen sat ion Law.” Mr . Harri s was an employee of Ande rs on Co unt y

and re cei ved worker s’ compensa ti on ben ef it s t o t a l i n g $ 8 1,78 8.43 in m edi cal exp ens es and $3,7 08.8 6 in

dis abi li ty exp ens es. T her ef ore

, unde r the cl ear te rms of the Coverage Docum ent as agree d to by Ander son

Count y and T RMT , Pl ai nti ff s a re in el igibl e t o r eco ver uni nsu re d motori st ben ef it s f rom TRM T

.

-7-t o o f

f e r u n i n s u r e d m o t o r i s t c o v e r a g e

, t y p i c a l l y r e a s o n i n g t h a t s u c h f u n d s a r e f

o r m s o f s e l f

i n s u r a n c e t h a t a r e e x e m p t f r o m t h e r e q u i r e m e n t s o f t h e u n i n s u r e d m o t o r i s t s t a t u t e

. S e e

, e

. g

. , 1 1

P r i t z k a v

. V i l l a g e o f L a n s i n g

, 9 4 0 N

. E

. 2 d 1 1 6 4

, 1 1 7 2

- 7 3 ( I l l

. A p p

. C t

. 2 0 1 0 ) ( d e t e r m i n i n g

t h a t b e c a u s e g o v e r n m e n t a l s e l f

- i n s u r a n c e p o o l s a r e n o t i n s u r a n c e

, t h e y a r e e x e m p t f r o m t h e

s t a t e ’ s u n d e r i n s u r e d m o t o r i s t s t a t u t e ) ; C i t y o f G a r y v

. A l l s t a t e I n s

. C o

. , 6 1 2 N

. E

. 2 d 1 1 5

, 1 1 8

( I n d

. 1 9 9 3 ) ( s a m e ; c i t i n g c a s e s )

, s u p e r s e d e d b y s t a t u t e

, I n d

. C o d e § 2 7

- 7

- 5

- 2 ( 1 9 9 8 )

, a s

r e c o g n i z e d i n U n i t e d N a t ’ l I n s

. C o

. v

. D e P r i z i o

, 7 0 5 N

. E

. 2 d 4 5 5

, 4 6 0 ( I n d

. 1 9 9 9 ) ; N a s s a u I n s

.

C o

. v

. G u a r a s c i o

, 4 4 2 N

. Y

. S

. 2 d 8 3

, 8 8 ( N

. Y

. A p p

. D i v

. 1 9 8 1 ) ( d e t e r m i n i n g t h a t s e l f

- i n s u r e d

m u n i c i p a l i t i e s a r e s t a t u t o r i l y e x e m p t f r o m u n i n s u r e d m o t o r i s t c o v e r a g e ) ; E l l i s v

. R

. I

. P u b

.

T r a n s p

. A u t h

. , 5 8 6 A

. 2 d 1 0 5 5

, 1 0 5 8

- 6 1 ( R

. I

. 1 9 9 1 ) ( h o l d i n g t h a t a s e l f

- i n s u r e d m u n i c i p a l i t y

, l i k e a l l s e l f

- i n s u r e r s

, i s e x e m p t f

r o m t h e s t a t u t o r y r e q u i r e m e n t t o p r o v i d e u n i n s u r e d m o t o r

v e h i c l e c o v e r a g e )

. C f

. G a

. I n t e r l o c a l R i s k M g m t

. A g e n c y v

. G o d f r e y

, 6 9 9 S

. E

. 2 d 3 7 7

, 3 7 8

- 7 9

( G a

. C t

. A p p

. 2 0 1 0 ) ( h o l d i n g t h a t t h e c i t y w a s n o t o b l i g a t e d t o o f f e r u n i n s u r e d m o t o r i s t

c o v e r a g e b e c a u s e t h e s e l f

- i n s u r a n c e p r o v i d e d b y t h e i n t e r l o c a l r i s k m a n a g e m e n t p r o g r a m d i d

n o t p r o v i d e s u c h c o v e r a g e a n d m u n i c i p a l i m m u n i t y w a s w a i v e d o n l y t o t h e e x t e n t t h a t

c o v e r a g e w a s p r o v i d e d ) ; C i t y o f L a r a m i e v

. F a c e r

, 8 1 4 P

. 2 d 2 6 8

, 2 7 1 ( W y o

. 1 9 9 1 ) ( h o l d i n g

t h a t g o v e r n m e n t

- p o o l e d f u n d s a r e n o t i n s u r a n c e )

.

W e h o l d t h a t T e n n e s s e e C o d e A n n o t a t e d s e c t i o n 2 9

- 2 0

- 4 0 1 ( d ) ( 1 ) p l a i n l y e x e m p t s

s p e c i a l f u n d s c r e a t e d b y a g r e e m e n t o f g o v e r n m e n t a l e n t i t i e s a n d c o n s i s t i n g o f t h e p o o l e d

f u n d s o f g o v e r n m e n t a l e n t i t i e s f r o m T e n n e s s e e ’ s i n s u r a n c e s t a t u t e s

. H e r e

, p r e c i s e l y b e c a u s e 1 2

T he Cour t of Appea ls in thi s cas e re li ed on Ma ine s v. Hi ll

, 190 F. Supp

. 2d 10 7 2

, 1 0 7 6 ( W

. D. 1 1

T enn

. 2002 ) to sup por t it s con cl usi on tha t the u n i n s u r e d m oto ri st st at ute doe s not app ly to the Coverage

Document. T he fe der al cou rt in Ma ine s hel d tha t, unde r Te nne sse e law, a pri vate sel f- ins ure d enti ty is not

sub j ect to the uni nsu re d m oto ri st st at ute

. Ma ine s is dis ti nguish abl e on it s fa ct s fr om thi s cas e, as it invol ved

a pri vate ent it y. T hus

, we nee d not and do n ot re ly upon or embrac e t he r eas oni ng of M ai nes in re sol ving

thi s app eal

. We not e, however

, tha t oth er cou rt s have al so hel d tha t pri vate sel f- ins ure d ent i ti es ar e not

sub j ect to a st at e’ s uni nsu re d m oto ri st st at ute

. See O’Su ll ivan v. Sal vatio n Army

, 147 Cal

. Rptr

. 729, 731-32

(Ca l. Ct. App. 1978 ); Hoff m an v. Yel low Cab Co. of Loui svill e, 5 7 S

. W

. 3 d 2 57, 261 (K y. 20 01) ; Gra nge

Mu t. Cas. Co. v. Ref

ine rs T ra nsp

. & T er m ina l Corp

., 487 N.E.2d 310, 313-14 (Ohi o 1986 ); see genera ll y Lee

R. Russ

, Annot at ion

, Appl ic a b i l it y of Unin sur ed Mo tor is t Sta tut es to Sel f- I nsu re rs

, 27 A.L.R.4t h 1266

(19 84) ; 1A Ste ven Pli tt

, et

. al

., U n ins ure d or Under ins ure d Mo tor is t I nsu ra nce Requ ir ements, Couc h on

I nsu ra nce § 10: 3 (3d ed. 2013 ). But see Asso ci at ed I ndus

. of K y. v. U.S. Lia b. I ns. Grp.

, 531 F.3d 462, 467

(6t h Cir

. 2008 ) (ho ldi ng t hat pri vate gr o up sel f- ins ura nce fun ds ar e ins ura nce unde r K ent ucky la w for the

pur pos e of

in te rpr et ing a j oin t a nd s evera l l ia bil it y provisi on)

.

Alt hough we h ave re sol ved thi s i ssu e ba sed upo n t he p la in la nguage of the st at ute

, we not e t hat 1 2

the le gisla ti ve his tor y of T enn ess ee Code Annot at ed sec ti on 29- 20- 401 sup por ts our con cl usi on. See Hear ing

on S.B. 832 on the Sena te Flo or, 91s t Gen. Asse m b. (T enn

. Ma r. 29, 1979 ) (s ta te m ent of Sen. J ohn T

. Hic ks)

(“ Any s pec ia l fun d cr eat ed [pu rs uan t to sec ti on 29- 20- 401] i s not to be con si der ed ins ura nce or sub j ect ed

to the in sur anc e r egulat ion s or ta xat ion .”)

.

-8-t h e i n s u r a n c e s t a t u t e s d o n o t a p p l y

, t h e u n i n s u r e d m o t o r i s t v e h i c l e c o v e r a g e s t a t u t e i s

n e c e s s a r i l y i n a p p l i c a b l e a n d c a n n o t b e w r i t t e n i n t o t h e C o v e r a g e D o c u m e n t T R M T i s s u e d t o

A n d e r s o n C o u n t y

. B e c a u s e P l a i n t i f f s a r e e x c l u d e d f

r o m u n i n s u r e d m o t o r i s t c o v e r a g e b y t h e

t e r m s o f t h e C o v e r a g e D o c u m e n t

, P l a i n t i f f s c a n n o t r e c o v e r f

r o m T R M T

. T h u s

, t h e c o u r t s

b e l o w p r o p e r l y g r a n t e d T R M T s u m m a r y j u d g m e n t

.

I V

. C o n c l u s i o n

W e h o l d t h a t a g o v e r n m e n t a l f u n d e s t a b l i s h e d i n a c c o r d a n c e w i t h T e n n e s s e e C o d e

A n n o t a t e d s e c t i o n s 2 9

- 2 0

- 4 0 1 t o

- 4 0 8

, i s e x e m p t f r o m t h e r e q u i r e m e n t s o f T e n n e s s e e ’ s

i n s u r a n c e s t a t u t e s a n d t h e r e f o r e n e e d n o t c o m p l y w i t h t h e r e q u i r e m e n t s o f t h e u n i n s u r e d

m o t o r i s t s t a t u t e

, T e n n e s s e e C o d e A n n o t a t e d s e c t i o n 5 6

- 7

- 1 2 0 1

. B e c a u s e t h e C o v e r a g e

D o c u m e n t T R M T i s s u e d t o A n d e r s o n C o u n t y s p e c i f i c a l l y e x c l u d e d e m p l o y e e s a n d t h o s e w h o

r e c e i v e w o r k e r s ’ c o m p e n s a t i o n b e n e f i t s f r o m u n i n s u r e d m o t o r i s t c o v e r a g e a n d T R M T i s n o t

o t h e r w i s e r e q u i r e d t o o f f e r s u c h c o v e r a g e

, P l a i n t i f f s m a y n o t r e c o v e r f

r o m T R M T

.

A c c o r d i n g l y

, w e a f

f i r m t h e C o u r t o f A p p e a l s ’ j u d g m e n t

, w h i c h u p h e l d t h e t r i a l c o u r t ’ s

d e c i s i o n g r a n t i n g s u m m a r y j u d g m e n t t o T R M T

. T h e c o s t s o f t h i s a p p e a l a r e t a x e d t o

P l a i n t i f f s

, f o r w h i c h e x e c u t i o n m a y i s s u e i f n e c e s s a r y

.

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ C O R N E L I A A

. C L A R K

, J U S T I C E

-9-