Opinion ID: 2334690
Heading Depth: 1
Heading Rank: 3

Heading: Allegations Against Allstate

Text: With respect to the allegations against Allstate, the paragraphs cited above seem to allege that the employment relationship alone is the basis of Allstate's alleged vicarious liability. Unlike the allegations of the complaint in Trau-Med of America, Inc. v. Allstate Insurance Co., 71 S.W.3d 691 (Tenn.2002), an opinion filed simultaneously with the opinion in this case, the complaint here contains no express allegation that Allstate directed or commanded the Richardson Firm to engage in its allegedly tortious actions. Moreover, the plaintiff does not allege that the Richardson Firm sought and obtained Allstate's authorization for its actions. However, as we reaffirmed in White, [a] complaint `need not contain in minute detail the facts that give rise to the claim,' so long as the complaint does `contain allegations from which an inference may fairly be drawn that evidence on these material points will be introduced at trial.' 33 S.W.3d at 725 (quoting Donaldson v. Donaldson, 557 S.W.2d 60, 61 (Tenn.1977)). We believe that the other allegations of the complaint fairly raise an inference that the plaintiff intends to introduce proof that Allstate directed or knowingly authorized the Richardson Firm's actions in this case. For example, paragraph six of the complaint alleges that Allstate originally hired a highly competent and effective Memphis attorney to represent its insured. Sometime after this attorney substantially completed discovery, Allstate is alleged in paragraph nine to have fired this attorney and hired the Richardson Firm in his stead. The Richardson Firm is then alleged to have initiated and pursued the discovery process anew with motives other than to obtain information relevant to the suit. Taken in a light most favorable to the plaintiff, the inference fairly drawn from these allegations is that the plaintiff intends to prove that Allstate, after discharging an attorney who was competently defending its interests, directed or knowingly authorized a new firm to engage in the alleged tortious conduct to induce the plaintiff to drop her claim. As we held above, an insurer cannot be held accountable for the actions of its attorney based merely upon the existence of the employment relationship alone; some exercise of actual control, whether it be through direction or knowing authorization, must be alleged before a complaint can be held to properly state such a claim. However, because Allstate may reasonably infer that the plaintiff intends to prove that Allstate directed or knowingly authorized the Richardson Firm to engage in its allegedly tortious conduct, we conclude that the complaint has stated a claim of vicarious liability against Allstate. Cf. White, 33 S.W.3d at 725.