ÿWPC2 …# VUNa %¯ 0(µbÝw.å4 ' 6 0J> 0Tˆ 0^Ü 0h: 0r¢ 0| 0† 0 1u¦ 0d U> B)½ DCæ AM)U*v  v~¬ B*vÓG D3 0@M AOÆÜ 0D¢ D/æ B˜HP LaserJet 4Si/4SiMX PS 600dpiPSCRIPTÈÚØÚÚØÈÚ0nLHÎ(ÖÃ9 Z ‹6Times New Roman RegularX($¡¡- ù-ÈEÉÊËÌÍÓ€×DÒ x93|x×2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)P ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ< Œ 9p`(&Times New Roman% Line 7 d7Border 1dd€- Cþÿ << Gÿÿ< Œ 9p`(Arial Ý ƒ!ÝÑ  ÑÑ#€d#ÑÔ€ÔÝ  ÝÔ€"ÔÔ€"ÔÓ  Óò òÔ YYY ÔFILEDÔ€"XÔÌÌMay€28,€1997ÌÌCecil€W.€CrowsonÌAppellate€Court€ClerkÔ  Ôó óPtPtHHÚ(ÿáÿâùFG(üHHÚ(d'h dStyl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑGenevaÑÑ ÑÒ  h HD: Geneva ÒÒ  h HD: Geneva Ò%%%%'ÿÿdxd("ÿÿ$££Ò  ÒÒ  Ò€-‚ƒCþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5($$””ò òÚ  Ú1Ú  Úó ó„„'÷ÿ dxdüÿP PdÝ ƒ!ÝÔ . ÔÔ€ÔÝ  ÝÑ  ÑÒ  ÒÒ ° ÒÒ  ÒÒ „ ÒÑ\R AØ'\ÑÑ\R AØ'\ÑÑ€ÑÑ7€vjXXdìdÈ7ÑÑ  ÑÑ  Ñò òÞ ÞÌà@ àIN€THE€COURT€OF€APPEALS€OF€TENNESSEEÌà@ àMIDDLE€SECTION€AT€NASHVILLEÌÌSTATE›€OF€TENNESSEE,€ex.€rel.,à àà à)ÌDOUGLAS€M.€SIZEMORE,à àà à)à àDavidson€Chancery€CourtÌCommissioner€of€the€Departmentà àà à)à àRule€No.€€92„1120„I(II)Ìof€Commerce€and€Insurance€for€theà à)ÌState€of€Tennessee,à àà àà àà à)à àAppeal€No.Ìà àà àà àà àà àà à)à à01A01„9610„CH„00484Ìà àPlaintiff/Appellee,à àà àà à)̜ـ€ÙßR€!# A1-j|tý` ç `€€@ÿRß›à àà àà àà àà àà à)à àÌVS.à àà àà àà àà àà à)Ìà àà àà àà àà àà à)à àÌUNITED€PHYSICIANS€INSURANCE€à à)ÌRISK€RETENTION€œGROUP,€(In€›à àà àœ)Ìreceivership€under€T.C.A.€ðð€56„9„101à à)Ìet€seq.)à àà àà àà àà à)Ìà àà àà àà àà àà à)Ìà àDefendant/Appellee,à àà àà à)Ìà àà àà àà àà àà à)›ÌœClaim€of€JANINA€LOSHEK,à àà à)Ìà àà àà àà àà àà à)Ìà àClaimant/Appellant,à àà àà à)Ìà àà àà àà àà àà à)ÌClaim€of€ROBERT€J.€SLUTZKY,€M.D.,à à)Ìà àà àà àà àà àà à)Ìà àClaimant.à àà àà àà à)Ìà àÌà@ àAPPEAL€FROM€THE€DAVIDSON€COUNTY€ÌÓ  ÓCHANCERY€COURT€OF€NASHVILLE,€TENNESSEEÌÓ  ÓÌà@ àHONORABLE€ELLEN€HOBBS€LYLE,€CHANCELLORÌó óÌJOHN€KNOX€WALKUPà àà àSARAH€HIESTANDÌAttorney€General€and€Reporterà àAssistant€Attorney€GeneralÌà àà àà àà àà àFinancial€DivisionÌà àà àà àà àà à500€Charlotte€AvenueÌà àà àà àà àà àNashville,€TN€37243„0496ÌRENARD€A.€HIRSCH,€JR.€#009489Ì619€Woodland€StreetÌNashville,€TN€37206ÌATTORNEYS€FOR€DEFENDANTS/APPELLEESÌÌHOLLINS,€WAGSTER€&€YARBROUGHÌJohn€L.€Norris€#6007ÌSuite€2210,€SunTrust€CenterÌ424€Church€StreetÌNashville,€TN€€37219ÌATTORNEY€FOR€CLAIMANT/APPELLANTÌÌ›ò òÓ  ÓÔ€¼ÔREVERSED€AND€REMANDEDÔ€XÔó óÌÓ  ÓÌà àà àà àà àà àHENRY€F.€TODDÌà àà àà àà àà àPRESIDING€JUDGE,€MIDDLE€SECTIONÌCONCUR:ÌBEN€H.€CANTRELL,€JUDGEÌœDAVID€H.€WELLES,€JUDGEÌBy€designation›ÌÌò òÓ  ÓSTATE€OF€TENNESSEE,€ex.€rel.,à àà à)ÌDOUGLAS€M.€SIZEMORE,à àà à)à àDavidson€Chancery€CourtÌCommissioner€of€the€Departmentà àà à)à àRule€No.€€92„1120„I(II)Ìof€Commerce€and€Insurance€for€theà à)ÌState€of€Tennessee,à àà àà àà à)à àAppeal€No.Ìà àà àà àà àà àà à)à à01A01„9610„CH„00484Ìà àPlaintiff/Appellee,à àà àà à)Ìà àà àà àà àà àà à)à àÌVS.à àà àà àà àà àà à)Ìà àà àà àà àà àà à)à àÌœUNITED€PHYSICIANS€INSURANCE€à à)ÌRISK€RETENTION€GROUP,€(In€à àà à)Ìreceivership€under€T.C.A.€ðð€56„9„101à à)Ìet€seq.)à àà àà àà àà à)Ìà àà àà àà àà àà à)Ìà àDefendant/Appellee,à àà àà à)Ìà àà àà àà àà àà à)ÌClaim€of€JANINA€LOSHEK,à àà à)Ìà àà àà àà àà àà à)Ìà àClaimant/Appellant,à àà àà à)Ìà àà àà àà àà àà à)ÌClaim€of€ROBERT€J.€SLUTZKY,€M.D.,à à)Ìà àà àà àà àà àà à)Ìà àClaimant.à àà àà àà à)ó ó›ÌÌÔ€„Ôà@ àòòò òO€P€I€N€I€O€Nóóó óÔ€XÔÌÓÓà àÌà àà àThis€appeal€involves€the€rejection€of€a€claim€against€a€liability€insurer€in€aÏchancery€receivership.€€The€appellant,€œJanina›€Loshek,€was€a€patient€of€Dr.€Robert€Slutsky€whoÏwas€insured€against€professional€liability€by€United€Physicians€Insurance€Retention€GroupÏwhich€has€been€placed€in€œreceivership€under€T.C.A.€ðððð€56„9„101€et€seq.›ÌÌà àà àOn€April€22,€1992,€the€patient,€Ms.€Loshek€received€unanticipated€injury€duringÏsurgery€conducted€by€Dr.€Slutsky.€€On€April€29,€1992,€the€doctor€reported€the€incident€to€theÏclaims€department€of€his€insurer.€€ÌÌà àà àOn€July€16,€1992,€the€Trial€Court€entered€an€ð ðAgreed€Order€of€RehabilitationððÏproviding€in€part€as€follows:ÌÓÓà àà àW.€€€The€€liquidator€shall€give€or€cause€to€be€given€notice€of€the€Ìà àà àOrder€€of€€Liquidation€in€accordance€with€T.C.A.€ðð€56„9„311€as€Ìà àà àsoon€as€possible.€€(4)€By€first€class€mail€òòto€all€persons€known€or€€Ìà àà àreasonably€expected€to€have€claims€against€the€insureróó€including€Ìà àà àall€policyholders,€at€their€last€known€address€as€indicated€by€the€Ìà àà àrecords€of€the€œinsurer.€€(Emphasis€supplied)›ÌÌà àà àX.€€€€Except€€as€€otherwise€€established€€by€€the€€liquidator€€with€Ìà àà àapproval€€€of€€the€€Court,€€notice€€to€€potential€€claimants€€under€Ìà àà àT.C.A.€€ðð€56„9„311(a)€€shall€€require€€claimants€€to€file€with€€theÌà àà àliquidator€€€their€€claims€€together€€with€€proper€€proofs€€thereofÌà àà àunder€€T.C.A.€€ðð€56„9„324,€€on€or€before€the€date€the€liquidatorÌÓÓÓÓà àà àœshall€›€specify€œ€in€›€the€notice,€which€deadline€shall€be€12:01€œa.m.,€Ìà àà àJuly€21,€1993.›ÌÓÓÌà àà àOn€August€5,€1992,€the€doctor€reported€the€injury€of€Ms.€Loshek€to€the€claimsÏdepartment€of€the€œinsurer,€sending€a€copy€of€a€›€letter€from€the€attorney€for€the€patient,€datedÏJuly€23,€œ1992,€requesting›€medical€records€of€the€patient.€€The€letter€from€the€attorney€containedÏhis€name€and€address,€and€was€œsubsequently€delivered›€to€the€receiver€by€the€œinsurer€as€part€ofÏthe€€general€transfer€of€records€to€the€receiver.›ÌÌà àà àOn€August€17,€1992,€the€receiver€of€the€insurer€sent€to€the€doctor€a€notice€of€theÏdeadline€for€filing€claims.€€No€notice€of€the€deadline€was€sent€to€the€patient.ÌÌà àà àOn€October€22,€1992,€counsel€for€the€patient€notified€the€doctor€that€the€patientÏintended€to€sue€for€damages.€€At€this€time,€neither€the€patient€nor€her€attorney€knew€of€theÏreceivership€or€the€deadline€for€filing€claims.ÌÌà àà àOn€February€12,€1993,€an€employee€of€the€receiver€wrote€to€the€doctorÏinquiring€about€the€status€of€the€Loshek€claim.€€The€doctor€responded€that€he€had€no€furtherÏinformation.ÌÌà àà àOn€September€3,€1993,€the€receiver€wrote€the€doctor€that€his€claim€had€beenÏrejected€for€failure€to€file€same€on€or€before€July€21,€1993.ÌÌà àà àThe€patient€filed€a€late€claim.€€The€date€of€filing€is€not€shown,€but€it€was€swornÏto€on€March€25,€1996.€€The€receiver€objected€to€the€claim€of€the€patient.€€The€Trial€CourtÏreferred€the€issue€to€the€Clerk€and€Master.ÌÌà àà àOn€May€13,€1996,€when€the€matter€was€heard€by€the€Master,€no€distribution€toÏgeneral€liability€claimants€had€been€authorized€or€made.€€Approximately€50€disputed€claims€hadÏnot€been€adjudicated.ÌÌà àà àThe€Master€recommended€that€the€receiverððs€denial€of€the€patients€claim€beÏupheld.€€The€Trial€œCourt›€affirmed.€€ÌÌà àà àOn€appeal,€the€patient€presents€a€single€issue,€as€follows:ÌÓÓà àà à1.à àWhether€the€proof€of€claim€filing€deadline€was€erroneouslyÌà àà àenforced€€against€Janina€Loshek€when€she€was€not€given€notice€ofÌà àà àthe€€liquidation€€proceeding€or€of€the€proof€of€claim€filing€deadlineÌà àà àeven€though€she€was€clearly€entitled€to€such€notice.€ÌÓÓÓÓà àà àÌà àà àà àà àÌÓÓà àà àThe€basis€of€appellantððs€late€claim€is€that€she€was€entitled€to€notice€of€theÏreceivership€and€did€not€receive€it.€€T.C.A.€ðð€56„9„311€provides€in€pertinent€part€as€follows:ÌÓÓà àà àNotice€€of€€liquidation€order€„€Method€„€Contents€„€Effect€of€notice.Ìà àà à€€(a)€Unless€€the€€court€otherwise€directs,€the€liquidator€shall€give€orÌà àà àcause€€€to€€be€€given€€notice€€of€€€the€€liquidation€€order€€as€€soon€€as€Ìà àà àpossible€œby:Ìà àà àà àà àà àà à„€„€„€„›Ìà àà à€€(4)€First€class€mail€to€òòall€persons€known€or€reasonably€expected€toÌà àà àhave€€€claims€€€against€€the€€insureróó,€€including€€all€€policyholders,€€at€Ìà àà àtheir€€known€€address€as€indicated€by€the€records€of€the€insurer;€œandÌà àà àà àà àà àà à„€„€„€„›ÌÓÓÓÓà àà à€€(b)€Except€as€otherwise€established€by€the€liquidator€with€approvalÌà àà àof€€the€€court,€€notice€€to€€potential€€claimants€€under€œ€subsection›€œ€(a)›Ìà àà àshall€€€require€€€claimants€€to€€file€€with€€the€€liquidator€€their€€claims,€Ìà àà àtogether€€with€€proper€€proofs€€thereof€€under€€ðð€56„9„324,€on€or€be„Ìà àà àfore€a€date€the€liquidator€shall€specify€in€the€œnotice.Ìà àà àà àà àà àà à„€„€„€„›Ìà àà à€€(d)€If€€notice€€is€given€in€accordance€with€this€section,€the€distribu„Ìà àà àtion€€of€€assets€€of€the€insurer€under€this€chapter€shall€be€conclusive€Ìà àà àwith€respect€to€all€claimants,€whether€or€not€they€received€notice.Ìœà àà à(Emphasis€supplied.)›ÌÓÓÌà àà àIt€is€clear€from€the€above€that€persons€having€a€damage€claim€against€insuredÏmay€file€a€claim€in€the€receivership€proceedings€of€œthe›€liability€insurance€œcompany€of€theÏinsured.›ÌÌà àà àThe€receiver€asserts€that€the€patient€is€guilty€of€laches€in€delaying€to€file€a€claimÏafter€learning€of€the€liquidation.€€It€does€not€appear€that€this€defense€was€presented€to€or€actedÏupon€by€the€Trial€Court.€€The€issue€in€this€appeal€is€whether€the€patient€should€be€allowed€toÏfile€a€late€claim€because€of€failure€to€receive€the€notice€of€deadline€as€required€by€the€statute€andÏorder€of€the€Trial€Court.ÌÌà àà àThe€receiver€relies€upon€òòLawreszak€v.€Nationwide€Insurance€Coóó.,€Ohio€App.Ï1977,€392€N.E.2d€1094€in€which€the€injured€party€brought€an€action€against€the€liabilityÏinsurer€of€the€alleged€œtortfeasor›€and€the€Court€held€that€the€injured€party€has€a€ð ðsubstantial,€butÏunvested€rightðð€in€the€liability€insurance€of€the€œtortfeasor›€until€judgment€has€been€obtainedÏagainst€the€œtortfeasor.›€€This€authority€is€distinguishable€by€the€fact€that€the€insurer€was€not€inÏliquidation,€whereas€the€insurer€in€the€present€case€is€in€liquidation€under€a€statute€whichÏspecifically€provides€for€œnotice€to€and€claims€of€ð ðall€persons€„„„€reasonably€expected€to€haveÏclaims€against€the€insurer.ðð€€Also,€the€receiver€received€correspondence€and€records€whichÏreasonably€notified€him€of€the€claim€of€Ms.€Loshek.›ÌÌà àà àThe€brief€of€the€receiver€admits€that€the€appellant€sued€Dr.€Slutsky€and€obtainedÏa€judgment€against€him€on€November€1,€1995.€€Even€under€òòLawreszak€v.€Nationwideóó,€theÏð ðsubstantial€unvested€rightðð€has€now€become€an€enforceable€right.ÌÌà àà àThe€receiverððs€brief€states:ÌÓÓà àà àLoshek€could€have€filed€a€claim€against€U.P.I.€during€the€litigationÌÓÓà àà àperiod.€€ÌHowever,€the€right€to€file€a€claim€includes€the€right€to€receive€notice€of€the€deadline.€€TheÏfailure€to€receive€a€notice€should€excuse€late€filing€unless€the€delay€œprejudiced›€the€orderlyÏproceedings.€€The€evidence€shows€that€no€such€prejudice€would€result.ÌÌÌÌÌÌ̛̜à àThe€judgment€of€the€Trial€Court€is€reversed,€and€the€cause€is€remanded€to€the€Trial€ÏCourt€for€entry€of€an€order€requiring€the€acceptance€and€consideration€of€the€claim€of€JaninaÏLoshek€upon€its€œmerits,€›€and€œfor€further›€œappropriate€proceedings.›€€Costs€of€this€appeal€areÏassessed€against€the€œreceiver›€for€payment€out€of€the€funds€of€the€receivership.ÌÓÓÌÓÓò òÓ  ÓÔ€¼ÔREVERSED€AND€REMANDEDó óÔ€XÔÌÓÓÓ  ÓÌà àà àà àà àà àÌà àà àà àà àà àà à___________________________________Ìà àà àà àà àà àà àHENRY€F.€TODDÌà àà àà àà àà àà àPRESIDING€JUDGE,€MIDDLE€SECTIONÌÌœÌÌÌ›ÌCONCUR:ÌÌÌÌ____________________________ÌBEN€H.€CANTRELL,€JUDGEÌÌÌ____________________________ÌœDAVID€H.€WELLES,€JUDGEÌBy€designationÌÌÌ