ÿWPCÕ @‹ùNƒ'æÔuä!rÌá9Ô_±cæ^ÛTÇPѸ£Ãdn_Ó”&;0Ϲ£ZBÞp§1Y‡·íHŽkDÉå“Û­b­ÀK×[J'VµtŠ'?ì`†@ˆsE °‰ºëy8— ^6ßF0hú&AQ©ë“ÛÆ†u£|ºˆ%d¸…¨‚7¾ÿ%#xw™;¸ ­_6âå@ÝcÍsçTõG°8Ùí ›`¸µLxÅ‘]ž°$õÓÊÁxN>»ð²F˜oE,v£˜ ,þ™zå«üjõh}ž"2;³D÷ŸG?(tyz—ëåà‚3}./ßw]C.þOÅFV×ÙÛMjÂÇ›a‘´î⬻#q‰c¯—”ŠV™ÊsÜ»–WVíãà’)?ÈÑÀNühôƒæŽÉW™T»Q—k ¡Agwc£ÐºúèJî=X Æü[ø´å#§Oå?R¤ ÝÛež4ž[N• ';¢KW×Ò6åQCf ”ÊÐU…¿²—"ÇEq°Ò$+¿1ä3vD ßh¸ö/péÇ‚üŸ ÒO IøBeF¿ƒ—X@R#ÖÏLr@ŽQº;¸aÇí”ái7äÇÉ*sê—Þ²8¿°Þ"áŠÒè)ÐÉ.Jí7*# LUNW %¥ 0(«w@Ó4' AQ6‡ 0l‰ 0DõU:999ñsìd ;P ‹ ‹ ‹ ‹ ‹ ‹ ‹ ‹ ‹ ‹ ‹ ‹ ‹ ‹ B§ÆÄ 0DŠ 0DÎ 0D D/VV B… D3¢˜HP LaserJet 4SiHPPCL5MS,ü,,,,,ü0nLhÎ(ÈhH  Z ‹6Times New Roman RegularX($¡¡ zU{ | } ~ €£‚Ó€Œs~Á&3|xŒ!"#$&Cþÿ<< Cÿÿ øÝ ƒ"¯"ÝÝ  ÝÔ€ XÛvXXXÔÔ€ ÄX XÛvÔÓ  Óò òÔ Ad ÔFILEDÔ€ XÛvX ÄÔÐ  ÐÌJune€11,€1999ÌÌCecil€Crowson,€Jr.ÌAppellate€Court€ClerkÔdAhÔó ó((3üÝ$¤¤Ý ƒ!ÝÝ  Ýà  àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  Úóó,c½¬AZ‹"Arial Regular çÝ ƒ üÝ$Ýà  àòòÚ  Ú1Ú  ÚóóÝ  Ýò òòòSeeó óóó€T.R.C.P.€37.02(C)€(authorizing€trial€court€to€dismiss€action€as€sanction€for€partyððsÐ ° Ðfailure€to€comply€with€discovery€order). âÝ ƒ üÝ$Ýà  àòòÚ  Ú2Ú  ÚóóÝ  Ýò òòòSeeó óóó€T.R.C.P.€41.02(3)€(providing€that,€unless€otherwise€specified,€involuntary€dismissalÐ ° Ðoperates€as€adjudication€upon€merits). 1Ý ƒ üÝ$Ýà  àòòÚ  Ú3Ú  ÚóóÝ  Ýò òòòSeeó óóó€T.C.A.€ðð56-7-105(a)€(1994)€(authorizing€trial€court€to€impose€penalty€of€twenty„fiveÐ ° Ðpercent€against€insurance€carrier€which€in€bad€faith€refuses€to€pay€covered€loss€within€sixty€daysÏafter€demand). Ý ƒ üÝ$Ýà  àòòÚ  Ú4Ú  ÚóóÝ  ÝAt€trial,€Robert€Gardner€testified€that€he€did€not€learn€of€the€dismissal€of€the€lawsuit€untilÐ ° Ðhis€present€attorney€informed€him€of€it.€€In€this€regard,€however,€we€must€impute€the€actions€andÏknowledge€of€the€Gardnersðð€previous€attorney€to€the€Gardners.€€ò òòòBellarv.€Baptist€Hosp.,€Inc.ó óóó,€559Ð à ÐS.W.2d€788,€789€(Tenn.€1978);€ò òòòColemanv.€Colemanó óóó,€369€S.W.2d€557,€560€(Tenn.€1963);Ð €Ð Ðò òòòBatchelorv.€Heiskell,€Donelson,€Bearman,€Adams,€Williams&€Kirsch,€P.C.ó óóó,€828€S.W.2d€388,Ð pÀ Ð394€(Tenn.€App.€1991);€ò òòòWinsteadv.€First€Tennessee€Bank€N.A.ó óóó,€709€S.W.2d€627,€632„33Ð ` ° Ð(Tenn.€App.€1986). dƒLevel 1Level 2Level 3Level 4Level 5(3¯$¢¢Ý ƒ!ÝÝ  Ý(3¯$££Ý ƒ!ÝÝ  Ý($$””ò òÚ  Ú1Ú  Úó ó(('÷ÿ dxdüÿP Pd 'ÿÿdxdÝ ƒ!ÝÝ  ÝÑTR[¤ AØ'ÿ Legal3Ø' AØ'ÿ Legalÿ3Ø'TÑÓ'°,X°À”X°œX'Óò òñŒññ‚ñßr€ )<,(j 8` `€€@Eȱ` 8ttxP°ð  rßñ‚ññŒññŒñßt€ )>.*jxRÚ` `€€@EŠ` 8ttxPRÂð È tßñŒñà@O O ìàIN€THE€COURT€OF€APPEALS€OF€TENNESSEE,€ˆÌà@áá$ìàAT€NASHVILLE€ó óˆÐ œì ÐÌà@. . ìà_______________________________________________________ˆÌÌà À à)Ìò òKENTUCKY€NATIONAL€ó óà À à)à  àSumner€County€Circuit€CourtÐ 8 ˆ Ðò òINSURANCE€CO.ó ó,à À à)à  àNo.€15548„CÐ ( x Ðà À à)Ì€€€€€Plaintiff/Counter„Defendant/Appellant.à À à)Ð  T  Ðà À à)ÌVS.à À à)à  àC.A.€No.€01A01„9808„CV„00445Ð Ü,  Ðà À à)Ìò òROBERT€G.€GARDNER€andó ó,à À à)Ð ´  Ðò òSANDRA€L.€GARDNERó ó,à À à)Ð ¤ô  Ðà À à)Ì€€€€€Defendants/Counter„Plaintiffs/à À à)€Ð €Ð Ѐ€€€Appellees.à À à)Ð l¼ Ðà À à)Ì______________________________________________________________________________ÌÌFrom€the€Circuit€Court€of€Sumner€County€at€Gallatin.Ìò òHonorable€Thomas€Goodall,€Judge€ó óÐ X ÐÌÌÌò òJ.€R.€Slobeyó ó,Ð ¸ ÐBLACKBURN,€SLOBEY,€FREEMAN€&€HAPPELL,€P.C.,€Nashville,€TennesseeÌAttorney€for€Plaintiff/Counter„Defendant/Appellant.ÌÌÌò òF.€Dulin€Kellyó ó,Ð X!¨ Ðò òClinton€L.€Kellyó ó,Ð H"˜  Ðò òAndy€L.€Allmanó ó,Ð 8#ˆ! ÐKELLY€&€KELLY,€Hendersonville,€TennesseeÌAttorneys€for€Defendants/Counter„Plaintiffs/Appellees.ÌÌÌÌOPINION€FILED:ÌÌò òREVERSED€AND€REMANDEDó óÐ œ*ì%) ÐÌÌà À àò òFARMER,€J.ó óÐ `-°(, ÐÌò òCRAWFORD,€P.J.,€W.S.ó ó:€(Concurs)Ð 8/ˆ*. Ðò òHIGHERS,€J.ó ó:€(Concurs)ñzñÐ (0x+/ ÐÌÌÌÌÌÌÌÌÌÌÌÐ <;Œ6; Ðñzññ|ññ{ñÓ3°,X°` À”X°,X°À”X3Óñ{ññ|ññ}ññ|ñÓ6°,X°` ¸ À”X°,X°À”X6Óñ|ññ}ññ~ññ}ñÓ6°,X°` ‚XÀ”X°,X°À”X6Óñ}ññ~ññ~ñÓ0°,X°` ˜X°,X°À”X0Óñ~ñññÓÓñññ€ñÓ  Óñ€ñññà ` àPlaintiff€Kentucky€National€Insurance€Company€appeals€the€trial€courtððs€judgmentÏawarding€Defendants/Appellees€RobertG.€and€SandraL.€Gardner€the€sum€of€$56,750€under€aÏcommercial€property€insurance€policy€that€Kentucky€National€previously€had€issued€to€the€Gardners.€ÏThe€trial€courtððs€judgment€also€awarded€the€Gardners€$14,062.50€in€prejudgment€interest.€€WeÏreverse€the€trial€courtððs€judgment€based€upon€our€conclusion€that€the€court€erred€in€failing€to€enforceÏa€provision€of€the€insurance€policy€which€prohibited€the€Gardners€from€taking€any€action€after€a€lossÏthat€would€impair€Kentucky€Nationalððs€subrogation€rights.ÌÌà ` àThe€Gardners€owned€a€commercial€building€in€Hendersonville,€Tennessee,€fromÏwhich€they€operated€a€wholesale€business.€€Among€other€uses,€the€Gardners€used€the€building€toÏhouse€their€inventory,€live€land€hermit€crabs,€which€they€sold€to€retail€stores,€pet€shops,€and€souvenirÏresort€stores.€€In€late€1994,€the€Gardners€contracted€with€S.A.€Perry€Heating€and€Cooling€to€installÏthree€new€HVAC€units€on€the€roof€of€their€building.€€Prior€to€that€time,€the€buildingððs€one€HVACÏunit€was€located€on€the€floor€of€the€building.€€S.A.€Perry€finished€installing€the€HVAC€units€onÏJanuary2,€1995.€€On€January4,€1995,€the€city€of€Hendersonville€experienced€a€large€amount€ofÏrainfall.€€Water€collected€on€the€roof€of€the€Gardnersðð€building€and€entered€the€building€around€theÏnew€HVAC€units,€causing€substantial€damage€to€both€the€structure€and€contents€of€the€building.€€ÌÌà ` àThe€Gardners€subsequently€learned€the€cause€of€the€damage€to€their€building.€€TheÏbuildingððs€flat€roof€originally€was€designed€to€collect€and€retain€rainwater€until€it€slowly€passedÏthrough€a€drain€in€the€back€of€the€building.€€The€weight€of€the€new€HVAC€units,€however,€causedÏdepressions€in€the€roof.€€Instead€of€draining€down€the€back€of€the€building,€the€rainwater€collectedÏin€pools€around€the€HVAC€units€and€entered€the€building.€€A€portion€of€the€ceiling€fell€down,Ïincluding€saturated€insulation,€light€fixtures,€and€a€metal€brace€that€supported€the€ceiling.€€ÌÌà ` àAfter€their€loss,€the€Gardners€contacted€Kentucky€National,€which€previously€hadÏissued€a€commercial€property€insurance€policy€on€the€Gardnersðð€building.€€As€pertinent,€the€policyÏprovided€coverage€forÌÌâ âÓÓà8 ` àloss€or€damage€caused€by€or€resulting€from€risks€of€direct€physicalÐ (:x5: Ðloss€involving€collapse€of€a€building€or€any€part€of€a€buildingÏÔ& Ð Ôâ âcaused...€by...Ð ` x` x ÐÌà8 ` à....Ô'РþÔÐ ` x` x ÐÌà8 ` à4.à0¸ ` x` xàWeight€of€people€or€personal€property;Ð` °¸ x¸ x ÐÌà8 ` à5.à0¸ ` x` xàWeight€of€rain€that€collects€on€a€roof;Ð@ ¸ x¸ x ÐÌà8 ` à6.à0¸ ` x` xàUse€of€defective€material€or€methods€in€construction,Ð  p  Ðremodeling€or€renovation€if€the€collapse€occurs€during€theÏcourse€of€the€construction,€remodeling€or€renovation.€€Ð ¸ x¸ x ÐÌÓÓÌThe€policy€also€contained€a€provision€which€required€the€Gardners€to€ð ðdo€everything€necessary€toÏsecure€[Kentucky€Nationalððs€subrogation]€rightsðð€and€to€ð ðdo€nothing€after€loss€to€impair€them.ðð€€ÌÌà ` àIn€late€January€1995,€Mike€Smith,€an€adjuster€for€Kentucky€National,€visited€theÏbuilding€to€inspect€the€damage.€€By€that€time,€S.A.€Perryððs€insurance€carrier€had€arranged€forÏtemporary€repairs€to€be€made€to€the€buildingððs€roof.€€Based€on€this€action,€Robert€Gardner€believedÏthat€S.A.€Perryððs€insurance€carrier€would€cover€the€loss,€and€he€conveyed€this€information€to€MikeÏSmith.€€The€Gardners€did€not€have€any€subsequent€contact€with€Smith.€€ÌÌà ` àContrary€to€Robert€Gardnerððs€belief,€S.A.€Perryððs€insurance€carrier€did€not€pay€forÏthe€damage€to€the€building.€€Instead,€in€April€1995,€S.A.€Perry€sued€the€Gardners€in€General€SessionsÏCourt,€claiming€that€the€Gardners€had€not€paid€for€installation€of€the€HVAC€units.€€The€GardnersÏhired€an€attorney€to€represent€them,€and€they€countersued,€claiming€that€S.A.€Perry€negligentlyÏinstalled€the€HVAC€units.€€In€August€1995,€the€General€Sessions€Court€entered€a€judgment€in€favorÏof€S.A.€Perry€in€the€amount€of€$9,999.99.€€The€Gardners€appealed€the€judgment€to€the€Circuit€Court.€ÏÌà ` àIn€September€1995,€Kentucky€National€assigned€the€Gardnersðð€claim€to€anotherÏadjuster,€Donnie€Cogburn.€€When€he€contacted€Robert€Gardner,€Cogburn€learned€that€the€GardnersÏwere€pursuing€a€counterclaim€against€S.A.€Perry.€€Specifically,€Robert€Gardner€told€Cogburn€thatÏthe€Gardners€had€lost€their€lawsuit€in€General€Sessions€Court€but€that€they€had€appealed€the€adverseÏjudgment€to€the€Circuit€Court.€€Gardner€also€told€Cogburn€that€the€Gardners€had€hired€an€attorneyÏto€pursue€their€counterclaim€against€S.A.€Perry€in€the€Circuit€Court.€€In€response,€Cogburn€indicatedÏthat€Kentucky€National€might€want€to€ð ðjoinðð€in€the€litigation.€€Ð