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AMqU*¾"è>  D3H B{Θ 0@fv~¦vÓ$ AO÷ÆF 0D  D/P B˜HP LaserJet 4Si/4SiMX PS 600dpiPSCRIPTÀÌÀääÀÀÌ0 (ÈhH  Z ‹6Times New Roman RegularX($¡¡ ¦V§¨D©ªD«¬­D®‹¯Ó€à~|  Z 3|xº((3üÝ$¤¤Ý ƒ!ÝÝ  Ýà  àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  Úóó?#2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)< Œ 9p`(ModernP ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ< Œ 9p`(Monaco< Œ 9p`(&Times New Roman< Œ 9p`(Courier New% Line 7 d$$$$7Border 1dd€-%Cþÿ << Gÿÿ< Œ 9p`(Arial Ý ƒ!ÝÑ#€d#ÑÔ€ÔÔ€"ÔÝ  ÝÔ€'ÔÔ€'ÔÓ  ÓÔ YYY ÔFILEDÔ€'XÔÌÌò òApril€25,€1996ÌÌCecil€Crowson,€Jr.ÌÔ€'ôÔAppellate€Court€Clerkó ó 4Ý ƒ!ÝÑ#€d#ÑÔ€ÔÔ€"ÔÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝÔ€#ÔÔ€#ôÔThe€tortfeasors,€the€defendants€Leroy€Bratton€and€Patricia€Bratton,€areÏnot€parties€to€this€appeal.Ì++++'ÿÿdxd d ÄÝ ƒ!ÝÑ#€d#ÑÔ€ÔÔ€"ÔÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝÔ€#ÔÔ€#ôÔCarnes€received€a€direct€settlement€payment€in€the€amount€of€$6,113.85Ïfor€his€pure€injury€claim,€thus€bringing€the€total€settlement€amount€toÏ$42,986.33.€€The€$6,113.85€is€not€at€issue€on€this€appeal.Ô€#XÔÔ€"ÔÌ("ÿÿ$££Ò  ÒÒ  ÒPtPtHHÚ(ÿáÿâùFG(üHHÚ(d'@Styl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑMonacoÑÑ ÑÒ  BA:Op Monaco ÒÒ  BA:Op Monaco Ò€-‚ƒCþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5($$””ò òÚ  Ú1Ú  Úó ó„„'÷ÿ dxdüÿP PdÝ ƒ!ÝÔ . ÔÔ€ÔÓ&€!!X„d&ÓÑ#€!!Xd#ÑÔ€"ÔÝ  ÝÓ  ÓÑ P ÑÔ€#ÔÑ\R AØ'\ÑÑ7€%xXXdìdÈ7ÑÔ% € ÔÑ  ÑIN€THE€COURT€OF€APPEALS€OF€TENNESSEEÌÌÌÌÓ  ÓÌLUTHER,€ANDERSON,€CLEARY€&€€€€€€)€C/A€NO.€03A01„9601„CV„00015ÌRUTH,€P.C.,€€GARY€CARNES,à à€€)€HAMILTON€COUNTY€CIRCUIT€COURTÌIndividually€and€as€next€friend€)Ìof€MICHAEL€CARNES,€a€minor,à à€€)ÌÙ€€ÙßL€&(%;+'h|` Å `€€L߀€€€€€à àà àà àà àà à€€)Ìà àà àPlaintiffs„Appellants,)Ìà àà àà àà àà àà à€€)Ìà àà àà àà àà àà à€€)Ìà àà àà àà àà àà à€€)Ìv.à àà àà àà àà àà à€€)€Ìà àà àà àà àà àà à€€)€Ìà àà àà àà àà àà à€€)€Ìà àà àà àà àà àà à€€)€Ìà àà àà àà àà àà à€€)€HONORABLE€WILLIAM€L.€BROWN,Ìà àà àà àà àà àà à€€)€JUDGEÌSTATE€FARM€MUTUAL€AUTOMOBILEà à€€)ÌINSURANCE€COMPANY,€€€€€€€à à€€)Ìà àà àà àà àà àà à€€)Ìà àà àDefendant„Appellee,€€€)Ìà àà àà àà àà àà à€€)Ìà àà àà àà àà àà à€€)Ìà àandà àà àà àà àà à€€)Ìà àà àà àà àà àà à€€)Ìà àà àà àà àà àà à€€)ÌLEROY€BRATTON€andà àà àà à€€)ÌPATRICIA€BRATTON,à àà àà à€€)Ìà àà àà àà àà àà à€€)Ìà àà àDefendants.à àà à€€)€AFFIRMED€AND€REMANDEDÌÌÌÌÌDAVID€L.€FRANKLIN€of€LUTHER,€ANDERSON€&€CLEARY,€P.C.,€Chattanooga,Ïfor€Appellants.€ÌÌJOSEPH€R.€WHITE€of€SPEARS,€MOORE,€REBMAN€&€WILLIAMS,€Chattanooga,Ïfor€Appellee.€ÌÌÌÌÌÌÌÌÓ  ÓòòO€P€I€N€I€O€NÌÌÓ  Óóóà àà àà àà àà àà àà àà àSusano,€J.ÇÓÓà àà àIn€this€appeal,€we€are€asked€to€decide€whether€anÏinsurer€is€entitled€to€collect€its€claimed€subrogation€interest,Ïand,€if€so,€whether€the€insurer€must€pay€the€insuredððs€attorney€aÏfee€for€collecting€that€interest€from€third€party€tortfeasors.× ƒ) ××  ×€€WeÏaffirm€the€trial€courtððs€ruling€that€the€insurer€is€entitled€toÏreimbursement€of€its€subrogation€interest,€free€of€the€attorneyððsÏfee.ÌÌà àà àPlaintiff€Gary€Carnes€(Carnes)€was€the€named€insured€inÏa€policy€of€automobile€insurance€issued€by€State€Farm€MutualÏAutomobile€Insurance€Company€(State€Farm).€€Carnes€was€involved€inÏan€automobile€accident€in€which€he€and€his€minor€son,€MichaelÏCarnes,€were€injured.€€Pursuant€to€the€terms€of€the€policy,€StateÏFarm€paid€$14,950.17€to€or€for€Carnes€for€the€following€claims:ÌÌÓÓà àà àCarnesðð€property€damageà àà à$€4,986.33Ìà àà àCarnesðð€medical€billsà àà à€€€€886.15Ìà àà àMichael€Carnesðð€medical€billsà àòò€€9,077.69óóÌÌà àà àà àà àà àà àà àà à$14,950.17Ìà àà àà àà àà àà àà àà à==========ÌÌÌÌÓÓà àà àCarnes€settled€all€the€claims€arising€out€of€theÏaccident€for€a€total€of€$42,986.33.€€Apparently,€the€claims€wereÏsettled€before€a€suit€was€filed.€€Of€that€total,€$31,000€wasÏdesignated€as€being€in€settlement€of€claims€arising€out€of€MichaelÏCarnesðð€injuries,€including€Carnesðð€claim€for€his€sonððs€medicalÏbills.€€Carnes€and€his€counsel,€the€law€firm€of€Luther,€Anderson,ÏCleary€&€Ruth€(ð ðlaw€firmðð),€then€filed€a€complaint€of€interpleaderÏcoupled€with€a€petition€for€approval€of€the€minorððs€settlement.€ÏThe€complaint€alleged€that€State€Farm€was€not€entitled€toÏreimbursement€for€any€of€the€payments€made€by€it€for€the€partiesððÏmedical€expenses.€€The€law€firm€also€alleged€that,€in€any€event,Ïit€was€entitled€to€an€attorneyððs€fee€of€one„third€of€the€entireÏsettlement.€€The€trial€court,€sitting€without€a€jury,€held€thatÏState€Farm€was€entitled€to€reimbursement€of€its€subrogationÏinterest,€and€consequently€awarded€State€Farm€$14,950.17.€€TheÏtrial€court€also€held€that€the€law€firm€was€not€entitled€to€a€feeÏfor€collection€of€the€subrogation€interest.€€Carnes,€for€himselfÏand€for€his€minor€son,€as€well€as€the€law€firm,€appeal,€raisingÏthe€following€issues:ÌÓÓÌÌà8 àà8 à1.€€Did€the€trial€court€err€in€holding€thatÏState€Farm€was€entitled€to€recover€amountsÏpaid€to€its€insured€under€the€medical€paymentsÏcoverage€of€its€insurance€policy€from€theÍproceeds€of€a€settlement€of€a€third€party€tortÏclaim?ÌÌà8 àà8 à2.€€Did€the€trial€court€err€in€holding€thatÏthe€law€firm€was€not€entitled€to€be€paidÏattorneyððs€fees€for€the€subrogation€amountsÏrecovered€by€State€Farm€in€the€claim€againstÏthe€third€party€tortfeasor?€ÌÌÌÌÓ  ÓIÌÌÌÌÓ  ÓÓÓà àà àThe€original€complaint€in€this€action€was€filed€onÏNovember€17,€1994.€€On€January€6,€1995,€the€trial€court€approvedÏthe€minorððs€settlement€of€$31,000,€and€on€January€27,€1995,€theÏcourt€ordered€partial€disbursement€of€the€settlement€funds€asÏfollows:ÌÓÓÌÌà àà8 àTo€Carnes€for€his€claim€of€lossÌà àà à€€of€services€of€the€minor€childà à$€1,000.00ÌÌà àà àTo€the€law€firm€for€its€attorneyððsÌà àà à€€fee€in€the€amount€of€one„thirdÌà àà à€€of€the€funds€disbursedà àà àà à€7,424.03ÌÌà àà àTo€Michael€Carnes„„to€be€investedÌà àà à€€until€he€reaches€his€majorityòòà à€13,922.31ÌóóÌà8 àà8 àà àà àà àà àà àà àà à$21,922.31Ìà àà àà àà àà àà àà àà àà à==========Ìà àà àà àà àà àà àà àà àà àÌà8 àà8 àÌÌÓÓThe€court€retained€the€balance€of€the€minorððs€settlement,€along€Ìwith€money€earlier€paid€into€court€for€Carnesðð€property€damage€andÏhis€medical€expenses.€€The€retained€funds€were€broken€down€asÏfollows:ÌÓÓÌÌà àà àRemainder€of€the€fundsÌà àà à€€designated€as€minorððsÌà àà à€€settlement,€being€an€amountÌà àà à€€representing€the€medicalÌà àà à€€expenses€of€Michael€Carnesà àà à$€9,077.69Ìà8 àà8 àÌà àà àCarnesðð€medical€expensesà àà àà à€€€€886.15Ìà àà àÌà àà àProperty€damage€to€carà àà àòòà à€€4,986.33ÌóóÌà àà à€à àà àà àà àà àà àà à$14,950.17× ƒ, ××  ×Ìà àà àà àà àà àà àà àà àà à==========ÌÌÌÌÓÓà àà àThe€$14,950.17€retained€by€the€court€was€the€amountÏState€Farm€had€previously€paid€to€Carnes€under€its€policy€and€thusÏthe€amount€of€the€insurerððs€claimed€subrogation€interest.€€A€briefÏbench€trial€was€conducted€on€the€issues€of€State€FarmððsÏentitlement€to€its€subrogation€interest,€and€the€law€firmððsÏentitlement€to€an€attorneyððs€fee€for€the€collection€of€thatÏinterest.€€As€noted€above,€the€trial€court€found€for€State€Farm,Ïawarding€it€the€entire€$14,950.17.€€Of€this€amount,€$9,963.84€wasÍfor€medical€bills€paid€pursuant€to€the€following€provision€inÏCarnesðð€policy:ÌÓÓÌÌà8 àà8 àWhen€we€pay€medical€expenses€under€thisÏcoverage,€we€are€entitled€to€be€paid€out€ofÏany€subsequent€recovery€for€ò òòòbodily€injuryÏó óóófrom€a€liable€party€or€such€partyððs€insurerÏthe€lesser€of:ÌÌà8 àà8 àa.€€what€we€have€paid.€.€.ÌÌà àà àÓÓÌ(Emphasis€in€original).€€The€trial€court€also€found€that€StateÏFarm€gave€the€law€firm€adequate€notice€that€it€did€not€want€theÏfirmððs€representation€in€connection€with€the€recovery€of€itsÏsubrogation€interest,€and€thus€the€law€firm€was€not€entitled€to€aÏfee€for€recovery€of€that€interest.ÌÌÓ  ÓIIÌÓ  ÓÌà àà àCarnes€makes€two€alternative€arguments€in€attempting€toÏpersuade€us€that€the€trial€court€erred€in€awarding€State€Farm€itsÏsubrogation€interest.€€The€first€argument€relies€upon€certainÏlanguage€found€in€Carnesðð€insurance€policy€which€reads€as€follows:ÌÓÓÌÌà8 àà8 àThe€injured€òòò òpersonóóó ó€shall:ÌÌà8 àà8 àa.€€execute€any€legal€papers€we€need;ÌÌà8 àà8 àb.€€when€we€ask,€take€action€through€our€€€€€Ïrepresentative€to€seek€a€recovery;ÌÌà8 àà8 àc.€€not€hurt€our€rights€to€recover;ÌÌà8 àà8 àd.€€not€make€claim€to€that€portion€of€the€€€€€Ïrecovery€that€we€are€entitled€to€be€paid;€€€€€ÏandÌÌà8 àà8 àe.€€answer€truthfully€all€questions€that€we€€€Ïmay€ask.Ì€Ìà8 àà8 àWe€will€not€seek€reimbursement€from€paymentsÏreceived€from€a€liable€party€or€such€partyððsÏinsurer€by€a€òòò òperson€óóó ówho€has€complied€with€allÏof€these€requirements.Ìà8 àà8 àÌÌÌÓÓ(Emphasis€in€original).€€Carnes€argues€that€he€has€ð ðcomplied€withÏor€ha[s]€been€ready,€willing€and€able€to€comply€with€all€of€theÏrequirements€contained€in€subparagraphs€(a)€through€(e),ðð€and€thatÏtherefore€State€Farm€cannot€seek€reimbursement€of€its€medicalÏpayments€subrogation€interest.€€The€trial€court€responded€to€thisÏargument€as€follows:ÌÓÓÌÌà8 àà8 àWell,€itððs€the€Courtððs€position,€based€uponÏthe€plaintiffsðð€claim€in€this€case,€that€theÏCarneses€have€not€complied€with€paragraph€[d]Ïin€that€they€are€seeking€to€claim€or€keep€thatÏportion€of€the€medical€benefits€to€which€StateÏFarm€is€entitled€under€the€subrogation€clauseÏof€their€policy.ÌÌÌÌÓÓWe€agree€with€the€trial€courtððs€analysis.€€Carnesðð€first€argumentÏis€without€merit.ÌÌ€à àà àThe€alternative€argument€made€by€Carnes€involves€onlyÏthe€payments€made€by€State€Farm€for€his€sonððs€medical€expenses.€ÏCarnes€argues€that€the€insurance€contract€is€only€between€himselfÏand€State€Farm,€and€that€it€does€not€bind€his€minor€son.€€TheÏargument,€quoted€from€his€brief,€goes€as€follows:ÌÓÓÌÌà8 àà8 àGary€Carnes,€as€a€party€to€the€contract€withÏState€Farm,€is€bound€by€[its]€language.€ÏHowever,€Gary€Carnes€did€not€recover€any€moneyÏfor€the€medical€payments€made€on€behalf€ofÏMichael.€€The€only€money€received€by€Mr.ÏCarnes€out€of€Michaelððs€settlement€was€$1,000Ïfor€his€claim€for€loss€of€services.€.€.TheÏbalance€of€the€money€belonged€to€Michael,€whoÏis€not€a€party€to€the€contract,€and€who€isÏtherefore€not€bound€by€it.ÌÌÌÌÓÓThe€fallacy€of€this€argument€lies€in€the€falsity€of€one€of€itsÏpremises,€i.e.,€ð ðthe€balance€of€the€money€belonged€to€Michael.ðð€ÌÌà àà àThe€law€is€clear€in€Tennessee€that€a€cause€of€action€forÏmedical€expenses€of€a€minor€child€incurred€as€a€result€of€a€tortÏagainst€the€minor€belongs€to€the€childððs€parent,€not€to€the€minor.€ÍThe€general€rule€was€enunciated€by€the€Supreme€Court€in€the€caseÏof€òòò òDudley€v.€Phillipsóóó ó,€405€S.W.2d€468,€469€(Tenn.€1966):ÌÓÓÌÌÇà8 àà8 àWhen€a€tort€is€committed€against€a€child€thereÏarises€two€separate€and€distinct€causes€ofÏaction.€€The€general€rule€is€well€stated€byÏthe€Annotation€in€42€A.L.R.€722,€724€asÏfollows:ÌÌà8 àà8 àà8 àThe€almost€universally€acceptedÏtheory€is€that,€upon€injury€to€aÏchild,€there€immediately€arises€inÏfavor€of€the€parent€a€cause€ofÏaction€for€loss€of€services,€òòmedicalÏexpenses€óóto€which€he€will€be€put,Ïetc.€and€that€another€and€distinctÏcause€of€action€arises€in€favor€ofÏthe€child€for€the€elements€of€damageÏto€him,€such€as€pain€and€suffering,Ïdisfigurement,€etc.ÌÌÌÌÓÓòòId.€óó(emphasis€added);òò€see€also€ò òBoring€v.€Miller,€óóó ó386€S.W.2d€521,Ï523€(Tenn.€1965);€òòò òRogers€v.€Donelson„Hermitage€Chamber€ofÏCommerce,€óóó ó807€S.W.2d€242,€247€(Tenn.App.€1990).ÌÌà àà àThe€case€upon€which€Carnes€primarily€relies,€òòò òPage€byÏPage€v.€Wilkinson,óóó ó€657€S.W.2d€422€(Tenn.App.€1983)€also€supportsÏthe€conclusion€that€the€payments€for€Michaelððs€medical€expensesÏwere€recovered€by€Carnes€and€not€his€minor€son.€€In€òòò òPage€by€Pageóóó ó,Ïa€minor€was€injured€in€an€accident,€and€the€parentððs€insurer€madeÏpayment€for€the€minorððs€medical€expenses€in€the€amount€of€$5,000.€ÏòòId.€óóat€423.€€A€settlement€was€reached€on€behalf€of€the€minor,€andÏthe€insurer€attempted€to€collect€the€$5,000€out€of€the€settlement.€ÍòòId.€óó€The€court€held€the€insurer€could€not€recover€because€theÏsettlement€was€for€bodily€injury€only,€and€not€for€the€minorððsÏmedical€expenses.€€In€so€holding,€the€òòò òPage€by€Page€ó óóócourt€made€theÏfollowing€pertinent€statement:ÌÓÓÌÌà8 àà8 àThe€father€could€not€subrogate€the€rights€ofÏthe€minor€for€damages€due€to€bodily€injuries.€ÏThe€father€could€subrogate€only€his€rightsÏòòwhich€was€the€right€to€recover€from€the€tort„feasor€for€medical€expenses€incurred.óó€€òòHad€theÏsettlement€in€this€lawsuit€specified€an€amountÏto€the€father€for€medical€expenses,€theÏsubrogation€agreement€signed€by€the€fatherÏwould€have€been€enforceableóó.€.€.ÌÌÌÌÓÓòòId.€óóat€425€(emphasis€added).€€In€the€present€case,€the€court,€inÏapproving€the€settlement,€designated€a€portion€of€the€payment,Ïi.e.,€$9,077.69,€as€being€for€the€medical€expenses€of€the€minor.€ÏIt€is€of€no€consequence€that€it€was€wrapped€into€the€totalÏsettlement€package€for€the€child€of€$31,000;€it€remains€an€elementÏof€the€fatherððs€recovery.€€That€being€the€case,€Carnesðð€argumentÏthat€the€money€belonged€to€Michael,€and€was€therefore€beyond€theÏreach€of€the€subrogation€agreement,€must€fail.€ÌÌÓ  ÓIIIÌÌÓ  Óà àà àWe€now€turn€to€the€law€firmððs€contention€that€it€isÏentitled€to€a€one„third€attorneyððs€fee€for€the€collection€of€StateÏFarmððs€subrogation€interest.€€Conceding€there€was€no€expressÏcontract€for€its€services,€the€law€firm€argues€that€theÏcircumstances€of€this€case€ð ðjustify€and€compel€the€finding€of€anÏimplied€or€quasi„contract€between€itself€and€State€Farm.ðð€€€TheÏfacts€relevant€to€our€inquiry€whether€the€law€firm€is€correct€inÏthat€assertion€are€summarized€in€the€paragraphs€that€follow.ÌÌà àà àThe€initial€correspondence€regarding€subrogation€wasÏsent€from€a€representative€of€State€Farm,€Ms.€Jan€Davis,€toÏattorney€Morgan€Adams,€who€primarily€handled€the€case€for€the€lawÏfirm.€€It€stated€as€follows:ÌÓÓÌÌà8 àà8 àEnclosed€are€copies€of€medical€bills€paid€forÏMichael€for€injuries€resulting€from€theÏautomobile€accident€of€12„06„93€by€State€FarmÏInsurance.ÌÌà8 àà8 àI€have€put€St.€Paul€Insurance€[theÏtortfeasorsðð€insurer]€on€notice€of€ourÏsubrogation€interest,€òòand€expect€100%€recoveryóóÏwhether€they€pay€you€and€your€clients€or€payÏState€Farm€direct.ÌÌà8 àà8 àPlease€notify€me€in€writing€that€you€are€inÏagreement€with€this.ÌÌÌÌÓÓ(Emphasis€added).€€The€letter€is€dated€April€27,€1994.€€A€writtenÏresponse€from€the€law€firm€was€not€sent€until€June€28,€1994,€whenÏAdams€sent€two€letters€to€State€Farm.€€The€first€stated€theÏfollowing€in€relevant€part:ÌÓÓÌÌà8 àà8 àThis€letter€will€confirm€our€conversation€ofÏJune€27,€1994.€€In€that€conversation€youÏrequested€that€we€not€pursue€your€subrogationÏinterest€for€property€damage.ÌÌÌThe€second€letter,€addressed€to€Davis€as€was€the€first,€stated€ÌÌthe€following:ÌÌÌÌà8 àà8 àI€have€received€notice€of€your€subrogationÏinterest€for€medical€payments€in€the€amount€ofÏ$8,765.69.ÌÌà àà àà à*à àà à*à àà à*à àà à*ÌÌà8 àà8 àMy€firm€will€be€happy€to€collect€your€medicalÏsubrogation€interest€and€send€you€theÏappropriate€amount.€€Our€standard€fee€for€thisÏis€1/3€of€all€collected€monies.€€Would€youÏplease€notify€me€in€writing€that€you€willÏagree€to€our€fee€arrangement.Ìà àà àÌÌÌÓÓRegarding€the€telephone€conversation€to€which€the€first€letterÏmade€reference,€Davis€and€Adams€presented€conflicting€testimony€asÏto€whether€Davis€specifically€informed€Adams€that€State€Farm€didÏnot€want€his€firmððs€representation€on€both€the€medical€paymentsÍclaim€and€property€damage€claim.€€Davis€testified€on€this€point€asÏfollows:ÌÓÓÌÌà8 àà8 àWell,€I€told€Mr.€Adams€that€we€were€presentingÏour€own€subrogation€interest€to€St.€Paul€[theÏtortfeasorððs€insurer],€that€weððd€already€sentÏour€documentation€to€them€and€that€we€wereÏexpecting€them€to€either€pay€us€direct€aÏhundred€percent€or€if€they€chose€to€include€itÏin€the€payments€to€the€part€that€would€go€toÏthe€attorneys,€Mr.€Adamsðð€firm,€that€we€wouldÏexpect€a€hundred€percent€recovery€then,€also.€ÏI€told€him€that,€you€know,€I€had€done€a€lot€ofÏwork€on€the€file€to€present€our€subrogationÏclaim€to€St.€Paul€and€that€we€did€not€needÏthem€to€represent€us.ÌÌÌÌAdamsðð€testimony€on€this€point€was€as€follows:ÌÌÌà8 àà8 àQ:€All€right.€€In€that€phone€conversation€orÏin€that€correspondence,€was€there€anythingÏsaid€about€State€Farmððs€subrogation€interestÏ[as]€far€as€the€medical€payments€is€concerned?ÌÌà8 àà8 àA:€I€donððt€recall€that,€no.€€I€understand€thatÏthatððs€in€dispute€now,€but€I€donððt€recall€thatÏat€all.ÌÌÌÌÓÓà àà àAlso€introduced€into€evidence€was€a€handwritten€noteÏfrom€Davis€to€Adams,€dated€June€28,€1994.€€Davis€testified€sheÏsent€the€note€to€Adams€along€with€a€copy€of€medical€expensesÍreceived,€and€documentation€of€State€Farmððs€payment€of€thoseÏexpenses;€it€states,ÌÓÓÌÌà8 àà8 àMr.€Adams,€ÌÌà8 àà8 àBlue€Cross/Blue€Shield€is€sending€subÏdocumentation€on€Gary€Carnes€to€me.€€As€weÏdiscussed,€State€Farm€does€not€want€yourÏrepresentation€of€our€subrogation€interest.ÌÌÌÌÓ ` ܈XŠ ’X ÓÓÓAdams€testified€that€he€did€not€ð ðrecall€receiving€itÏspecifically,ðð€but€did€not€deny€receiving€the€note.€€Finally,€theÏrecord€contains€two€other€letters€from€State€Farm.€€One€is€datedÏSeptember€16,€1994,€and€it€states,€ð ðState€Farm€does€not€want€youÏto€represent€us€in€our€subrogation€interest€on€this€claim€forÏproperty€damage€and€medical€payments€coverage.ðð€€The€second,€datedÏOctober€5,€1994,€states,€ð ðwe€do€not€wish€for€you€to€present€StateÏFarmððs€subrogation€interest€in€this€matter.ðð€€The€settlement€wasÏreached€a€few€days€after€October€5,€1994.ÌÌà àà àThis€court€was€recently€presented€with€this€issue€in€theÏcase€of€òòò òTeegardin€v.€Austin,€óóó óNo.€03A01„9509„CV„00321€(Tenn.ÏApp.€filed€at€Knoxville,€Feb.€29,€1996,€Susano,€J.).€€We€apply€theÏsame€analysis€and€rely€on€the€same€authorities€in€the€instantÏcase,€and€so€quote€at€length€from€òòò òTeegardinóóó ó:ÌÌÓÓà8 àà8 àOn€several€occasions,€the€appellate€courts€ofÏthis€state€have€addressed€the€issue€of€whetherÏan€insurer€is€obligated€to€pay€a€fee€to€anÏinsured's€attorney€for€the€collection€of€theÏinsurer's€subrogation€interest.€€TheÏprinciples€set€forth€in€the€cases€ofÏòòò òTennessee€Farmers€Mut.€Ins.€Co.€v.ÏPritchett,óóó ó€391€S.W.2d€671€(Tenn.App.€1964),Ïòòò òTravelers€Ins.€Co.€v.€Williams,€óóó ó541ÏS.W.2d€587€(Tenn.€1976),€òòò òMotors€Ins.€Corp.Ïv.€Blakemore,€óóó ó584€S.W.2d€204€(Tenn.App.Ï1978),€and€òòò òBoston,€Bates€&€Holtó óóó€òòò òv.ÏTennessee€Farmers€Mut.€Ins.€Co.,óóó ó€857ÏS.W.2d€32€(Tenn.€1993),€provide€the€necessaryÏguidance€for€the€resolution€of€the€instantÏcase.ÌÌà8 àà8 àIn€òòò òTennessee€Farmers€Mut.€Ins.€Co.,€óóó óanÏinsurer€was€held€liable€for€an€attorneyððs€feeÏin€the€amount€of€one„third€of€the€subrogationÏinterest.€€In€that€case,€the€insurer€had€beenÏinformed€by€the€insurance€company€for€theÏdefendant€in€the€underlying€tort€action€that€ÌÌÒ ` ÒÒ ` Òà8 à[d]ue€to€the€fact€that€your€insuredÏwas€injured€òòand€is€representedóó,€weÏanticipate€this€settlement€will€beÏpending€for€quite€some€time,€but€weÏshall€keep€your€subrogationÏinterests€in€mind€when€a€finalÏsettlement€is€made€with€yourÏinsured.ÌÌÒ ° ÒÒ ° Òòòò òà8 àà8 àTennessee€Farmers€Mut.€Ins.€Co.,€óóó ó391ÏS.W.2d€at€674€(emphasis€in€original).€€AÏrepresentative€of€the€insurer€had€called€theÏinsured's€attorney€and€requested€that€heÏforward€the€insurerððs€subrogation€interestÏwhen€the€claim€was€settled.€€òòId.€óóat€672.€€TheÏChancellor€found€that€ÌÌÒ ` ÒÒ ` Òà8 àthis€case€is€another€glaring€exampleÏof€an€insurance€company€sitting€backÏon€its€haunches,€doing€nothing€andÏwaiting€to€get€its€share€of€a€claimÏprocured€by€attorneys,€but€notÏwanting€to€pay€its€share€of€anÏattorney's€fee.ÌÌÒ ° ÒÒ ° Òòòà8 àà8 àId.€óóat€674.€€The€Court€of€Appeals€agreed,Ïfinding€that€ÌÌÒ ` ÒÒ ` Òà8 à[i]t€is€fundamental€that€one€cannotÏsit€silently€and€permit€another,€whoÏobviously€expects€to€be€paid,€toÏperform€valuable€services€for€himÏand€then€not€be€liable€for€theÏreasonable€value€thereof.ÌÌÒ ° ÒÒ ° ÒÓÓòòà8 àà8 àId.€óóat€675.ÌÓÓà8 àà8 àThe€Supreme€Court€reached€a€similar€result€inÏthe€òòò òBoston,€Bates€&€Holt€ó óóócase.€In€thatÏcase,€a€representative€of€the€insurer,€afterÏbeing€advised€that€its€insured€hadÏrepresentation,€told€the€insuredððs€attorneyÏ"not€to€forget€[Tennessee€Farmers'€subrogationÏclaim]."€€857€S.W.2d€at€34€(brackets€inÏoriginal).€€The€Supreme€Court€found€"a€classicÏexample€of€implied€contract"€and€held€that€theÏinsurers'€request,€along€with€its€equivocalÏresponse€to€the€notice€from€the€insured'sÏattorney€that€he€was€providing€representationÏin€the€case,€compelled€the€conclusion€that€theÏinsurer€was€liable€for€the€attorney's€fee.€ÏòòId.€óóat€35.ÌÌà8 àà8 àThe€Supreme€Court€was€presented€with€the€sameÏissue,€but€a€different€factual€scenario,€inÏthe€case€of€òòò òTravelers€Ins.€Co.€v.ÏWilliams,óóó ó€541€S.W.2d€587€(Tenn.€1976).€InÏthat€case,€the€insurer€notified€theÏtortfeasorððs€insurance€company€of€itsÏsubrogation€claim€and€stated€that€it€"wouldÏhandle€(its)€own€subrogation."€€òòId.€óóat€588.€ÍThe€Supreme€Court€held€that€since€the€insurerÏhad€provided€notice€that€protection€of€itsÏsubrogation€right€was€not€necessary,€theÏinsured's€attorney€"acted€as€a€volunteer,"€andÏwas€not€entitled€to€a€fee€for€collection€ofÏthe€subrogation€interest.€€òòId.€óóat€591.€€Ìà àÌà8 àà8 àThe€Court€of€Appeals€followed€the€òòò òTravelersÏIns.€Co.€óóó óholding€two€years€later€in€òòò òMotorsÏIns.€Corp.€v.€Blakemore,€óóó ó584€S.W.2d€204Ï(Tenn.App.€1978).€€In€that€case€the€insurer,Ïafter€paying€the€insured's€property€damageÏclaim,€sent€a€letter€to€the€insured'sÏattorney,€stating€that€ÌÌÒ ` ÒÒ ` Òà8 à[a]ny€legal€action€for€propertyÏdamage€that€you€find€it€necessary€toÏinitiate€on€behalf€of€your€clientÏshould€be€limited€to€his€collisionÏdeductible.€€Please€let€us€know€ifÏit€becomes€necessary€to€file€suit.€ÌÌÒ ° ÒÒ ° Òòòà8 àà8 àId.€óóat€205.€€The€court€in€òòò òMotors€Ins.€Corp.Ïó óóófound€the€òòò òTravelers€Ins.€Co.€óóó ócaseÏcontrolling,€stating,€ÌÌÒ ` ÒÒ ` Òà8 à[b]y€following€the€ruling€inÏòòò òTravelers,óóó ó€this€court€mustÏdetermine€that€there€was€no€contractÏbetween€Motors€and€[the€insured'sÏattorney],€either€expressed,€impliedÏor€quasi,€and€that€[the€attorney]Ïacted€as€a€volunteer.ÌÌÒ ° ÒÒ ° Òòòà8 àà8 àId.€óóat€208.ÌÌÌÌÓÓòòId.€óóat€p.€8„11.ÌÌà àà àIn€the€case€at€bar,€we€again€find€the€Supreme€CourtððsÏholding€in€òòò òTravelers€Ins.€Co.€óóó ócontrolling,€and€the€òòò òTennesseeÏFarmers€Mut.€Ins.€Co.€óóó óand€ò òòòBoston,€Bates€&€Holtóóó ó€casesÏfactually€distinguishable.€€Therefore,€we€find€that€the€numerousÏletters€quoted€above€were€sufficiently€definite€and€unambiguous€toÏput€the€law€firm€on€clear€notice€that€protection€of€State€FarmððsÏsubrogation€rights€by€the€law€firm€was€neither€necessary€norÏdesired.€€Therefore,€to€the€extent€that€the€law€firm€can€beÏdescribed€as€performing€any€services€for€State€Farm,€it€did€so€asÏa€volunteer€and€is€not€entitled€to€an€attorneyððs€fee.€€ÌÌà àà àFor€the€aforementioned€reasons,€the€judgment€of€theÏtrial€court€is€affirmed€in€its€entirety.€€This€case€is€remanded€toÏthe€trial€court€for€collection€of€costs€assessed€there€pursuant€toÏapplicable€law.€€Costs€on€appeal€are€taxed€and€assessed€to€theÏappellants€and€their€surety.ÌÌÓÓ€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€____________________________Ìà àà àà àà àà àà àà à€Charles€D.€Susano,€Jr.,€J.ÌÌÌÌCONCUR:ÌÌÌÌ__________________________ÌHouston€M.€Goddard,€P.J.ÌÌÌÌ__________________________ÌDon€T.€McMurray,€J.Ô€"Ô