ÿWPCØ øv«»®nÓ„ƒHV _³}oÓÅa³èœ!=Ϊ»žÖEÕ¿çóåÆ¡¶sñCL„*(BØ%[–u-·´H<Å$Ué^šÍoÜTöLäboÒ3šàš„Í€LÕ ÜóëøŸ¹€ªþׇ† ©¬ª~FšP^ì÷7㊦ã"z@ó¸w_I©î[@"Ö/Åf¦ŠŽr-oÅ>À¸½A¥ªÎçÝÔ懛YXÓÀåg#;w9ž((Ïž;c‡" 9u4\‡øbG'Þhë³¼<[$‘§†Ú$¸2ÒÞwÑ…çË”#ô¾TÒRõ8ì,µ˜¯‘&õq•¹f &$™HEf|‰SèŒ5>Ä~N拾¬N¡å+"Ï¢‘‘³ ¹Û¥ÁhªҮŸöc§LaJêç†AÛ~…ô­Xý‹ìæi#·)1Ê à¦oϪ~¥r´Y©Ï\1}åßèSŒºûäsÒN•˜ë[Q5&™mšÒ¶‘gõQîý”*R3ã9y`MO?G©wcêÚ?j*9ÃÙlz±ø$`ªg¬éåò¶mDÛô°˜Éd…OÖãÖ®Ï u±Ø:©Öh y"@+ìfÞ%_3ñð55 Êb %\^ b 0ˆnUNöwD4H\ zkÒå· m¹ #ÉÐ ƒ™ ÆÆâƨÆn 0D4Nxz–”E*Ÿ,,,,,,,,,,,,,,,,,,,,,,,bËËËËËËËËËËËËËËËËËËËËËËËËËËËËËËËËËËËË 0ëÓÓÓÓ B¾¾ 0¤Û D5 D-´ 0Káá AS,Æ 0¤E 0Dé A«-»a~1Þ (`£ª$¡¡Ñ€.ÑÑ8€½­»»d»»d8ÑÑ ý ÑÓ  Ó(í€"  Z6Times New Roman RegularÖƒF1ê:i¢×+003|x ˜C:\PROGRA~1\COREL\WORDPE~1\TEMPLATE\CUSTOM~1\REVISE~1.WPTC:\Program Files\Corel\WordPerfect Office 2000\Template\Custom WP Templates\revised standard opinion.wptÿU‹ÿÀÀÀ˜\\IB01S08\KNOXCLERK4ÈÈ,,,,ÈÈ0 yÝ ƒRɪ$ÝÓ  Óà  àòòÚ  Ú1Ú  ÚóóÔ€ôù…ò»»ÔÝ  ÝÔ_Ô€One€of€Plaintiffððs€coworkers€testified€she€overheard€this€conversation€at€the€time€the€initial€application€forÐ ° Ðinsurance€was€filled€out,€while€Plaintiffððs€testimony€clearly€was€that€it€took€place€after€her€husband€had€died.€Level 1Level 2Level 3Level 4Level 5‚Level 1Level 2Level 3Level 4Level 5„Level 1Level 2Level 3Level 4Level 5…Level 1Level 2Level 3Level 4Level 5(#Ã$òòÚ  Ú0Ú  Úóó Ý ƒRɪ$ÝÓ  Óà  àòòÚ  Ú2Ú  ÚóóÔ€ôù…ò»»ÔÝ  ÝÔ_Ô€€Defendants€never€have€claimed€the€insurance€was€invalid€because€Plaintiff€signed€the€application€on€herÐ ° Ðhusbandððs€behalf. Puckett P.J.LockettDaryleSweetwatercolonoscopyKozawaRothcoWeddingtonGholsona]roundcolorectal TCPAHidalHemerodecolonoscopiesStooksburyHardinPapachristouGluckCommnMintonNelms SiskStockstillSadekhad had CasGatlinBroylesMyintMyints Ginn •Ý ƒRɪ$ÝÓ  Óà  àòòÚ  Ú3Ú  ÚóóÔ€ôù…ò»»ÔÝ  ÝÔ_Ô€Plaintiff€apparently€anticipated€American€Heritage€was€going€to€claim€that€Gross€improperly€allowed€PlaintiffÐ ° Ðto€sign€the€application€on€her€husbandððs€behalf.€€At€trial€Plaintiff€testified€to€an€alleged€conversation€she€had€with€GrossÐ tÄ Ðwhere€he€supposedly€told€Plaintiff€to€say€her€husband€actually€did€sign€the€application.€€Assuming€for€present€purposesÐ 8ˆ Ðonly€that€Gross€misrepresenting€to€Plaintiff€that€she€had€authority€to€sign€the€application€on€her€husbandððs€behalf€wouldÐ üL Ðor€could€be€a€violation€of€the€TCPA,€the€facts€in€this€case€do€not€support€such€a€claim€and€it€should€never€have€been€anÐ À Ðissue€at€trial.€€Both€Gross€and€American€Heritage€unequivocally€testified€that€Gross€was€authorized€to€have€Plaintiff€signÐ „Ô Ðthe€application€on€her€husbandððs€behalf.€€More€importantly,€Defendants€did€not€deny€Plaintiffððs€claim€on€that€basis€andÐ H ˜ Ðnever€made€that€argument€either€before€or€at€trial.€€- ù-(|G2ɪ$¤¤Ý ƒ£ª!ÝÑ€.ÑÑ8€EÕ»»dd8ÑÑ ý ÑÓ  ÓÝ  Ýà  àòòÚ  Ú0Ú  ÚóóÔ€ôù…ò»»Ô d(|3ÿ…$££Ý ƒ£ª!ÝÑ€.ÑÑ8€EÕ»»dd8ÑÑ ý ÑÓ  ÓÝ  ÝVVVV)ÿÿ!dxdx)!ÈÈÈÈdxdx( ±þ$’’ò òFigure€Ú  Ú1Ú  Úó ó^_X`YEþÿ<<CÿÿƒLevel 1Level 2Level 3Level 4Level 5(|3ÿ…$¢¢Ý ƒ£ª!ÝÑ€.ÑÑ8€EÕ»»dd8ÑÑ ý ÑÓ  ÓÝ  Ý($$””ò òÚ  Ú1Ú  Úó óX[Z&OLE 2.0 Box <=8ÿÿÿÿÿÿÿÿÿÿCÿÿ HKKKKÝ ƒ£ª!ÝÑ€.ÑÑ8€EÕ»»ddÈ8ÑÑ ý ÑÓ  ÓÝ  ÝÔ_ÔÑ  ÑÔ€¼EÕ»»»ÔÑ8€iXXdì»»d8ÑÑ  Ñà@ü ü ìàÔ‡î_DEÕÔIN€THE€COURT€OF€APPEALS€OF€TENNESSEEˆÐ ° Ðà@WW$ìàAT€KNOXVILLEÔ#†¼EÕ»îî_D #ԈРÖ& ÐÓ  ÓSeptember€21,€2004€SessionÐ üL ÐÔ‡XiX»¼EÕÔÌò òÔ#†¼EÕ»XXi÷#ÔPAMELA€K.€GINN€v.€AMERICAN€HERITAGE€LIFEÐ úJ ÐINSURANCE€COMPANY,€òòet€alóó.Ô‡XiX»¼EÕÔó óÐ  ^ ÐÌà@@½½ìàò òÔ#†¼EÕ»XXi™#ÔÔ€XiX»¼EÕÔAppeal€from€the€Circuit€Court€for€Monroe€CountyÐ  ^ Ðà@@øøìàNo.€V01011P€€€€€€Lawrence€H.€Puckett,€JudgeÐ ú J ÐÌÌà@@ìì*ìàßA€V) °°` d€÷E<½` AßÐ ¾  ÐÌà@@TTìàNo.€E2004„00198„Ô_ÔCOAÔ_Ô„R3„CV€€„€FILED€DECEMBER€29,€Ô_Ô2004Ô_ÔÐ ¹  ÐÌßA€V) °°` dE<` Aßó óÓ  ÓÐ ‘á  ÐÌPamela€K.€Ginn€(ð ðPlaintiffðð)€purchased€a€$50,000€life€insurance€policy€on€her€husband€throughÐ ŒÜ ÐAmerican€Heritage€Life€Insurance€Company€(ð ðAmerican€Heritageðð).€€When€applying€for€theÐ xÈ Ðinsurance,€Plaintiff€told€the€insurance€salesman,€Daryle€Gross€(ð ðGrossðð),€that€her€husband€was€inÐ d´ Ðð ðbasic€good€health.ðð€€Plaintiffððs€husband€died€a€few€weeks€after€the€life€insurance€went€into€effect.€Ð P  ÐAmerican€Heritage€denied€Plaintiffððs€demand€for€the€life€insurance€proceeds,€claiming€Plaintiff€hadÐ <Œ Ðmaterially€misrepresented€her€husbandððs€health.€€Plaintiff€sued€American€Heritage€and€GrossÐ (x Ð(ð ðDefendantsðð).€€The€jury€found€Defendants€breached€their€contract€with€Plaintiff.€€The€jury€alsoÐ d Ðfound€that€the€refusal€to€pay€was€done€in€bad€faith,€assessing€a€25%€bad€faith€penalty.€€The€jury€alsoÐ P Ðconcluded€Defendants€had€violated€the€Tennessee€Consumer€Protection€Act€(ð ðTCPAðð)€and€assessedÐ ì< Ðcompensatory€damages€under€the€TCPA€at€$110,000,€which€was€remitted€by€the€Trial€Court€toÐ Ø( Ð$73,855.15.€€Pursuant€to€the€TCPA,€the€Trial€Court€then€trebled€the€damages€and€awarded€attorneyÐ Ä Ðfees.€€When€all€was€said€and€done,€the€amount€of€the€judgment€awarded€to€Plaintiff€totaledÐ ° Ð$284,980.60.€€Both€Plaintiff€and€Defendants€appeal€various€aspect€of€the€Trial€Courtððs€Judgment.€Ð œì ÐThe€Judgment€of€the€Trial€Court€is€reversed€in€part€and€affirmed€in€part,€and€judgment€is€entered€inÐ ˆØ Ðfavor€of€Plaintiff€in€the€total€amount€of€$73,415.15.Ð t Ä ÐÌÌà@k k ìàò òTenn.€R.€App.€P.€3€Appeal€as€of€Right;€Judgment€of€the€CircuitˆÐ 8#ˆ" Ðà@  ìàCourt€Affirmed€in€Part€and€Reversed€in€Part;€Case€Remandedó óˆÐ $$t# ÐÌòòÌD.€Michael€Swiney,€J.,€óódelivered€the€opinion€of€the€court,€in€which€òòHerschel€P.€Franks,€P.J.,óó€andÐ è&8"& ÐòòCharles€D.€Susano,€Jr.,€J.óó,€joined.Ð Ô'$#' ÐÌWilliam€S.€Lockett,€Jr.,€Knoxville,€Tennessee,€for€the€Appellants€American€Heritage€Life€InsuranceÐ ¬)ü$) ÐCompany€and€Daryle€W.€Gross.€€Ð ˜*è%* ÐÌJohn€W.€Cleveland,€Sweetwater,€Tennessee,€for€the€Appellee€Pamela€K.€Ginn.Ð  p,À',ý Ðà@66'ìàò òOPINIONˆÐ ° ÐÌÌà@ÛÛ%ìàòòBackgroundó óóóˆÐ tÄ ÐÌÌà  àà ` àThis€lawsuit€involves€a€claim€for€life€insurance€proceeds€with€the€threshold€issueÐ 8 ˆ Ðbeing€whether€Plaintiff€misrepresented€her€husbandððs€health€when€applying€for€the€insurance.€Ð $ t ÐPlaintiff€knew€her€husband,€Mr.€Tony€Ginn,€had€been€diagnosed€with€diverticulitis€in€1991€beforeÐ  ` Ðthey€were€married€in€1992.€€Her€husband€was€prescribed€antibiotics€and€the€diverticulitis€ð ðclearedÐ ü L  Ðup€and€he€was€fine.ðð€€The€diverticulitis€flared€up€again€in€1998.€€This€time,€Mr.€Ginn,€who€was€5'6"Ð è 8  Ðand€weighed€190€pounds,€lost€approximately€60€pounds.€€Mr.€Ginn€was€treated€by€Dr.€Kozawa€whoÐ Ô$  Ðprescribed€antibiotics€and€instructed€Mr.€Ginn€to€eat€a€lot€of€fiber.€€Unfortunately,€the€fiber€seemedÐ À  Ðto€make€matters€worse€and,€according€to€Plaintiff,€her€husbandððs€health€went€ð ðdownhill.ðð€€Mr.€GinnÐ ¬ü  Ðnevertheless€continued€to€work€at€a€paint€and€body€shop€and€engage€in€recreational€activities€withÐ ˜è  Ðhis€three€children.€€Mr.€Ginn€eventually€went€to€the€emergency€room€when€his€symptoms€did€notÐ „Ô  Ðimprove.€€By€that€time,€he€was€unable€to€keep€food€down€and€when€he€did,€he€had€diarrhea.€€AfterÐ pÀ Ðbeing€treated€by€various€physicians,€Mr.€Ginn€was€instructed€by€Dr.€McDonald€to€quit€taking€fiber.€Ð \¬ ÐMr.€Ginn€then€started€to€improve€and€regained€approximately€20€pounds.€€Mr.€Ginn€stopped€takingÐ H˜ Ðantibiotics€in€January€of€1999€and€seemed€to€be€feeling€fine,€although€he€continued€to€take€fiveÐ 4„ Ðmilligrams€of€diazepam€every€day€for€stomach€spasms.Ð  p ÐÌà  àà ` àPlaintiff€has€a€seventh€grade€education€and€was€employed€as€a€sewing€machineÐ øH Ðoperator€at€DCB€Rothco€(ð ðDCBðð).€€While€employed€at€DCB,€Plaintiff€occasionally€observedÐ ä4 Ðdefendant€Gross,€an€insurance€salesman,€come€into€the€plant.€€February€24,€1999,€was€the€dayÐ Ð  ÐPlaintiff€first€spoke€with€Gross.€€According€to€Plaintiff,€Gross€ð ðjust€walked€up€to€my€[sewing]Ð ¼  Ðmachine€and€approached€meðð€about€purchasing€insurance.€€Plaintiff€asked€Gross€how€much€lifeÐ ¨ø Ðinsurance€would€cost,€and€he€responded€that€it€would€be€deducted€from€her€payroll€check€and€theÐ ”ä Ðcombined€cost€for€Plaintiff€and€her€husband€would€be€$9.47€per€week.€€Gross€quoted€her€the€priceÐ €Ð Ðafter€he€asked€Plaintiff€if€she€and€her€husband€were€smokers,€to€which€Plaintiff€responded€that€theyÐ l¼ Ðwere.€€Gross€then€asked€Plaintiff€if€she€or€her€husband€had€AIDS,€and€Plaintiff€said€that€they€did€not.€Ð X ¨ ÐPlaintiff€testified€that€Gross€then€stated:€ð ðSo,€in€other€words,€youððre€in€basic€good€health.ðð€€PlaintiffÐ D!” Ðresponded€in€the€affirmative.€€Plaintiff€claims€Gross€did€not€ask€her€any€other€questions,€took€noÐ 0"€  Ðnotes,€and€she€never€saw€the€application€for€life€insurance.€€Gross€did,€however,€set€up€his€laptopÐ #l! Ðcomputer€on€her€sewing€machine€and€was€entering€information€during€their€conversation.€€PlaintiffÐ $X" Ðclaims€Gross€asked€no€other€questions€about€her€husbandððs€health.€€Plaintiff€then€signed€whatÐ ô$D # Ðð ðlooked€like€[an]€Etch„a„Sketch€type€board,€a€little€square€box.ðð€€Plaintiff€testified€that€Gross€askedÐ à%0!$ Ðher€to€sign€her€husbandððs€application€as€well.€€The€next€day€Gross€brought€her€a€folder€with€medicalÐ Ì&"% Ðinjury€claim€forms,€but€nothing€related€to€life€insurance.€€Plaintiff€noticed€premiums€being€withheldÐ ¸'#& Ðfrom€her€paycheck€on€March€9òòthóó,€1999.€€Plaintiff€received€the€life€insurance€policies€issued€throughÐ ¤(ô#' ÐAmerican€Heritage€on€March€29òòthóó,€1999.€€Mr.€Ginn€died€the€next€day€of€a€myocardial€infarction.€€Ð )à$( Ðâ âÐ |*Ì%) Ðà  àà ` àPlaintiff€received€a€letter€dated€August€11,€1999,€from€Claudia€Osborne€(ð ðOsborneðð)Ð ° Ðâ âin€the€Claims€Department€for€American€Heritage.€€Osborne€expressed€her€condolences€to€PlaintiffÐ œì Ðfor€the€loss€of€her€husband.€€Osborne€then€stated€that€had€American€Heritage€been€apprised€of€Mr.Ð ˆØ ÐGinnððs€actual€medical€condition,€it€would€have€ð ðpostponedðð€issuing€a€policy€until€ð ða€definiteÐ tÄ Ðdiagnosis€had€been€made€and€it€[was]€determined€we€would€have€accepted€that€risk.€€Accordingly,Ð `° Ðwe€regret€we€will€be€unable€to€honor€your€request€for€benefit.€€A€refund€of€all€premiums€paid€to€dateÐ L œ Ðwill€be€sent€to€you€under€separate€cover.ðð€Ð 8 ˆ ÐÌà  àà ` àPlaintiff€filed€this€lawsuit€in€January€of€2001€asserting€claims€based€on€breach€ofÐ  ` Ðcontract,€bad€faith€refusal€to€pay€the€insurance€proceeds,€as€well€as€violations€of€the€TennesseeÐ ü L  ÐConsumer€Protection€Act,€Tenn.€Code€Ann.€ðð47„18„101,€òòet€seqóó.€€Defendants€denied€any€liability€toÐ è 8  ÐPlaintiff,€claiming€Plaintiff€had€materially€misrepresented€the€state€of€her€husbandððs€health€when€sheÐ Ô$  Ðapplied€for€the€insurance.Ð À  ÐÌà  àà ` àA€trial€was€held€in€September€of€2003€and€much€of€Plaintiffððs€testimony€on€directÐ ˜è  Ðexamination€is€set€forth€above.€€In€addition€to€that€testimony,€Plaintiff€also€was€asked€about€theÐ „Ô  Ðmedical€questions€on€the€insurance€application.€€These€questions€ask€whether€the€applicant€hasÐ pÀ Ðcertain€specific€ailments€or€diseases.€€Plaintiff€testified€she€never€was€asked€any€of€these€questions.€Ð \¬ ÐShe€also€testified€that€Ô_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔotherÔ_Ô€than€questions€about€AIDS€and€smoking,€the€only€other€medical€questionÐ H˜ Ðasked€by€Gross€was€whether€she€and€her€husband€were€in€basic€good€health,€to€which€PlaintiffÐ 4„ Ðresponded€in€the€affirmative.€€When€asked€about€her€husbandððs€health€at€the€time€the€application€forÐ  p Ðlife€insurance€was€completed,€Plaintiff€explained:€€Ð  \ ÐÌà8  àà8` Ð Ð àà ¸ àQ.à  àCompared€with€the€entire€rest€of€the€time€that€you€hadÐ ä4 Ðknown€Tony€Ginn,€what€was€the€state€of€his€health€on€February€theÐ Ð  Ð24òòthóó.€€Ð¼ ` x` x ÐÌà8  àà8` Ð Ð àà ¸ àA.à  àIn€good€health.Дä` x` x ÐÌà8  àà8` Ð Ð àà ¸ àQ.à  àWas€there€anything€remarkable€about€his€health,Ð l¼ Ðphysical€condition,€or€treatment€between€then€and€the€day€that€heÐ X ¨ Ðdied?€€ÐD!”` x` x ÐÌà8  àà8` Ð Ð àà ¸ àA.à  àNo.Ð#l!` x` x ÐÌà8  àà8` Ð Ð àà ¸ àQ.à  àDid€he€go€back€for€any€additional€treatment€orÐ ô$D # Ðexamination?Ðà%0!$` x` x ÐÌà8  àà8` Ð Ð àà ¸ àA.à  àHe€had€a€[colonoscopy€ð8ð€on]€the€22òòndóó€of€March.€ð8ðÐ ¸'#& Ð[After€the€colonoscopy]€Dr.€Gholson€did€come€out€and€hand€me€someÐ ¤(ô#' Ðpictures€of€ð!ð€I€guess€of€his€colon€and€said€that€everything€looked€fine.€Ð)à$(` x` x Ðâ âÐ |*Ì%) ÐPlaintiff€went€on€to€add€that€after€the€colonoscopy€on€March€22òòndóó,€her€husband€returned€to€work€theÐ ° Ðâ ânext€day.€€The€following€Monday€he€became€sick,€ð ðhurting€in€his€chest,€throwing€up.ðð€€Mr.€GinnÐ œì Ðwent€to€work€and€called€Plaintiff€later€that€day€telling€her€he€still€was€feeling€bad.€€Mr.€Ginn€diedÐ ˆØ Ðin€his€sleep€that€night.€€The€Certificate€of€Death€listed€the€cause€of€death€as€a€myocardial€infarction.Ð tÄ ÐÌà  àà ` àPlaintiff€met€with€Gross€at€DCB€on€the€Monday€following€her€husbandððs€death.€Ð L œ ÐGross€provided€Plaintiff€with€a€form€for€a€doctor€to€fill€out€and€one€for€the€beneficiary€(i.e.,€Plaintiff)Ð 8 ˆ Ðto€fill€out.€€Plaintiff€stated€Gross€asked€why€her€husband€was€taking€diazepam€and€why€she€indicatedÐ $ t Ðhe€had€been€in€good€health.€€Plaintiff€responded€that€ð ðhe€was,€as€far€as€I€was€concerned.ðð€€Gross€thenÐ  ` Ðstated€that€he€thought€Mr.€Ginn€was€in€good€health€based€on€what€Plaintiff€had€said,€and€PlaintiffÐ ü L  Ðtold€him€ð ðhe€was,€other€than€diverticulitis,€[and]€itððs€not€a€life€threatening€disease.€€And€[Gross]€said,Ð è 8  Ðwell,€that€wasnððt€no€big€deal,€he€had€it€also.ðð׃ ×Ý ƒ#ÃÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ׀РÔ$  ÐÌà  àà ` àWhile€receiving€medical€treatment€in€the€past,€Mr.€Ginn€had€filled€out€a€ð ðPatientÐ ¬ü  ÐInformation€Sheet.ðð€€This€document€is€undated€but€appears€to€be€from€a€recent€medical€examination.€Ð ˜è  ÐMr.€Ginn€was€asked€to€list€any€chronic€illnesses€or€conditions€and€he€wrote:€€ð ðDiverticulitis;€HighÐ „Ô  ÐBlood€Pressure;€Adrenal€Nodule€2.3€x€1.7€cm,€Hidal€Hernia€(sic);€and€Hemerode€Disease€(sic).ðð€Ð pÀ ÐDefendants,€however,€never€asked€Mr.€Ginn€for€his€medical€information.€€Plaintiff€admitted€onÐ \¬ Ðcross„examination€that€her€husband€had€discussed€with€his€doctor€the€possibility€of€having€a€portionÐ H˜ Ðof€his€colon€removed.€€The€doctor€informed€Mr.€Ginn€that€another€colonoscopy€would€have€to€beÐ 4„ Ðperformed€before€that€procedure€would€be€considered,€and€this€in€why€the€colonoscopy€wasÐ  p Ðperformed€in€March€of€1999€shortly€before€Mr.€Ginnððs€death.€€Plaintiff€also€testified€on€cross„Ð  \ Ðexamination€that€her€husband€would€only€go€to€the€doctor€when€the€pain€was€so€bad€he€ð ðcouldnððtÐ øH Ðtake€it€no€longer.ðð€€Plaintiff€then€acknowledged€that€her€husband€was€going€to€a€doctor€on€a€regularÐ ä4 Ðbasis€the€last€year€of€his€life.Ð Ð  ÐÌà  àà ` àGross€testified€that€he€would€go€to€businesses€and€sell€various€forms€of€insurance.€Ð ¨ø ÐShortly€after€arriving€at€DCB€on€February€24,€1999,€a€couple€of€employees€informed€him€thatÐ ”ä ÐPlaintiff€was€interested€in€purchasing€life€€insurance.€€Gross€then€ð ðwent€to€the€plant€supervisor€toÐ €Ð Ðseek€authorizationðð€to€go€onto€the€plant€floor.€€Gross€testified€that€the€plant€supervisor€showed€himÐ l¼ Ðwho€Plaintiff€was€because€he€had€never€met€her€before.€€Gross€testified€it€was€typical€businessÐ X ¨ Ðpractice€when€selling€insurance€on€an€employeeððs€spouse€for€the€employee€to€sign€for€his€or€herÐ D!” Ðspouse€when€the€insurance€was€being€sold€in€the€workplace.׃×Ý ƒ#ÃÝòòÚ  Ú2Ú  ÚóóÝ  Ý×  ×€€According€to€Gross,€AmericanÐ 0"€  ÐHeritage€authorized€him€to€sell€insurance€on€the€life€of€a€spouse€when€the€other€spouse€signed€theÐ #l! Ðapplication.€€Disputing€Plaintiffððs€testimony,€Gross€stated€that€he€asked€Plaintiff€the€medicalÐ $X" Ðquestions€and€all€of€the€questions€that€appeared€on€the€application,€except€for€a€few€questions€whereÐ ô$D # Ðno€response€was€needed€because€they€were€not€pertinent€to€life€insurance€policies.€€Gross€earned€aÐ à%0!$ Ðcommission€of€ð ð[a]round€seven€dollarsðð€on€the€sale€of€the€policy€insuring€Plaintiffððs€husband.€€GrossÐ Ì&"% Ðclaimed€he€specifically€asked€Plaintiff€about€whether€her€husband€had€any€chronic€conditions€andÐ ° Ðshe€responded€that€he€did€not.€€After€Mr.€Ginn€died,€Gross€asked€Plaintiff€why€she€had€not€answeredÐ œì Ðthat€question€correctly,€and€Plaintiff€responded€that€she€thought€her€husbandððs€condition€(i.e.,Ð ˆØ Ðdiverticulitis)€was€not€that€important.€€Gross€went€on€to€state€that€had€Plaintiff€answered€the€questionÐ tÄ Ðcorrectly,€he€still€could€have€insured€Mr.€Ginn,€but€he€would€have€had€to€go€through€a€differentÐ `° Ðinsurance€company€that€was€ð ða€lot€more€liberal.ðð€€Gross€stated:Ð L œ ÐÌà8  àà8` Ð Ð à[I€also€sell€insurance€for]€Colonial€Life€and€Accident€ð8ð€[and]€ifÐ $ t Ðsomeone€had€some€pertinent€health€problems,€I€would€place€it€withÐ  ` Ðthem€because€they€are€a€lot€more€liberal.Ðü L ` x` x ÐÌà8  àà8` Ð Ð àà ¸ àThey€donððt€ask€a€lot€of€these€questions€that€are€on€thatÐ Ô$  Ðapplication€and€so€those€policies€automatically€get€approved€and€youÐ À  Ðhave€coverage.ð8ð€Ð¬ü ` x` x ÐÌà  àà ` àGross€went€on€to€add€that€he€carried€two€laptop€computers€with€him.€€One€of€theÐ „Ô  Ðlaptops€contained€only€the€application€for€Colonial.€€ð ðThose€that€had€health€problems,€I€would€haveÐ pÀ Ðopened€the€Colonial€computer€and€I€would€enroll€them€in€that€ð8ð.ðð€€Gross€stated€that€had€PlaintiffÐ \¬ Ðcorrectly€informed€him€of€her€husbandðð€health,€he€would€have€closed€the€laptop€with€the€AmericanÐ H˜ ÐHeritage€application,€and€simply€opened€the€one€with€the€Colonial€application.€€According€to€Gross,Ð 4„ Ðthe€premiums€charged€by€the€two€companies€were€substantially€the€same.€€The€American€HeritageÐ  p Ðinsurance€application€does€not€contain€a€question€specifically€asking€if€an€applicant€has€diverticulitis,Ð  \ Ðbut€one€of€the€questions€does€inquire€about€whether€the€applicant€is€in€good€health€or€if€the€applicantÐ øH Ðhas€a€chronic€disease.Ð ä4 ÐÌà  àà ` àPearl€Harrison€(ð ðHarrisonðð)€is€the€vice„president€of€claims€for€American€Heritage.€Ð ¼  ÐHarrison€testified€that€whenever€a€death€occurs€within€two€years€of€the€inception€of€a€life€insuranceÐ ¨ø Ðpolicy,€the€company€requests€medical€records€to€determine€whether€or€not€the€information€receivedÐ ”ä Ðin€the€records€is€consistent€with€the€information€provided€on€the€application.€€With€regard€to€Mr.Ð €Ð ÐGinnððs€application,€the€underwriting€department€when€reviewing€Mr.€Ginnððs€medical€recordsÐ l¼ Ðconcluded,€due€to€the€significant€number€of€medical€problems€he€was€having,€that€at€the€very€least,Ð X ¨ ÐAmerican€Heritage€would€have€deferred€issuing€a€policy€until€there€was€a€final€diagnosis.€€HarrisonÐ D!” Ðtestified€that€when€the€company€obtained€Mr.€Ginnððs€medical€records,€they€discovered:Ð 0"€  ÐÌà8  àà8` Ð Ð àà ¸ àThis€gentleman€had€hypertension,€rectal€bleeding,€which€wasÐ $X" ÐI€believe€bright€red€blood,€as€it€was€described.€€Severe€abdominalÐ ô$D # Ðpain.€€He€was€on€multiple€medications.€€Relatively€high€doses€for€aÐ à%0!$ Ðvery€long€period€of€time.ÐÌ&"%` x` x ÐÌà8  àà8` Ð Ð àà ¸ àHe€complained€constantly,€at€one€point€he€had€back€pain,€heÐ ¤(ô#' Ðhad€a€family€history€of€his€father€died€in€his€50s€of€colorectal€cancer.€Ð )à$( ÐHe€had€had€colonoscopies.€€There€were€notes€in€the€records€indicatingÐ |*Ì%) Ðthat€ð8ð€the€physicians€were€concerned€about€his€negative€findings,€butÐ h+¸&* Ðhis€conditions€[were]€elusive.€€They€couldnððt€determine€what€his€trueÐ ° Ðdiagnosis€was.Ðœì` x` x ÐÌà8  àà8` Ð Ð àà ¸ àAnd€it€went€on€to€describe€a€60€pound€weight€loss€in€a€briefÐ tÄ Ðperiod€of€time.€€And€the€records€appear€to€me€to€be€ones€where€theÐ `° Ðphysicians€were€unable€to€diagnose€this€condition,€but€found€itÐ L œ Ðsignificant€enough€to€treat€him€frequently€and€to€question€whatÐ 8 ˆ Ðsignificant€problems€he€had€going€on.€Ð$ t` x` x ÐÌà  àà ` àMr.€Neal€Crawford€(ð ðCrawfordðð)€also€testified€for€American€Heritage.€€Crawford€isÐ ü L  Ðthe€vice„president€in€charge€of€underwriting€and€testified€that€when€Mr.€Ginnððs€policy€was€issued,Ð è 8  ÐAmerican€Heritage€authorized€its€agents€to€have€a€spouse€sign€for€the€other€spouse€when€they€wereÐ Ô$  Ðtaking€applications€in€the€workplace.€€Crawford€likewise€testified€that€the€claims€departmentÐ À  Ðinvestigates€claims€when€a€death€occurs€within€two€years€of€the€policy€being€issued.Ð ¬ü  ÐÌà  àà ` àAfter€the€testimony€was€completed,€the€jury€was€furnished€with€a€verdict€formÐ „Ô  Ðcontaining€various€questions.€€With€regard€to€the€breach€of€contract€claim,€the€jury€found€PlaintiffÐ pÀ Ðhad€not€falsely€represented€her€husbandððs€health,€and€went€further€and€found€that€Plaintiff€had€not€Ð \¬ Ðfalsely€represented€her€husbandððs€health€with€the€intent€to€deceive€the€Defendants€into€issuing€theÐ H˜ Ðpolicy.€€Accordingly,€the€jury€concluded€Defendants€breached€their€contract€with€Plaintiff€andÐ 4„ Ðawarded€her€the€face€value€of€the€life€insurance€policy,€i.e.,€$50,000.€€The€jury€also€awarded€pre„Ð  p Ðjudgment€interest€at€the€rate€of€10%.€€The€jury€further€found€Defendants€acted€in€bad€faith€whenÐ  \ Ðrefusing€to€pay€Plaintiff,€that€the€bad€faith€caused€Plaintiff€to€incur€additional€expense,€loss€or€injury,Ð øH Ðand€that€Plaintiff€was€entitled€to€recover€from€Defendants€a€bad€faith€penalty€of€25%.€€As€toÐ ä4 ÐPlaintiffððs€TCPA€claims,€the€jury€found€Defendants€employed€deceptive€or€unfair€practices€andÐ Ð  Ðawarded€Plaintiff€compensatory€damages€under€the€TCPA€in€the€amount€of€$110,000.Ð ¼  ÐÌà  àà ` àPlaintiff€filed€a€post„trial€motion€seeking€an€award€of€attorney€fees€pursuant€to€theÐ ”ä ÐTCPA.€€Plaintiff€also€sought€discretionary€costs€in€the€amount€of€$1,853.51€pursuant€to€the€TCPAÐ €Ð Ðand€Tenn.€R.€Civ.€P.€54.04.€€Defendants€filed€a€motion€for€a€directed€verdict€or,€in€the€alternative,Ð l¼ Ða€motion€for€a€new€trial€or€to€alter€or€amend€the€judgment.€€The€Trial€Court€resolved€the€post„trialÐ X ¨ Ðissues€by€requiring€Plaintiff€to€elect€between€her€remedies,€i.e.,€breach€of€contract€and€the€bad€faithÐ D!” Ðpenalty,€or€the€remedies€available€under€the€TCPA.€€Plaintiff€elected€the€TCPA.€€The€Trial€CourtÐ 0"€  Ðsuggested€a€remittitur€in€the€amount€of€compensatory€damages€awarded€by€the€jury€under€the€TCPAÐ #l! Ðfrom€$110,000€to€$73,855.15,€which€Plaintiff€accepted.€€The€Trial€Court€did,€however,€treble€theÐ $X" Ðremitted€compensatory€damage€award€bringing€the€total€award€of€compensatory€damages€toÐ ô$D # Ð$221,565.45.€€The€Trial€Court€then€awarded€Plaintiff€$40,000€in€attorney€fees,€$1,853.51€inÐ à%0!$ Ðdiscretionary€costs,€and€$21,561.64€in€pre„judgment€interest.€€The€total€award€to€Plaintiff€wasÐ Ì&"% Ð$284,980.60.€€Ð ¸'#& ÐÌà  àà ` àDefendants€appeal€raising€numerous€issues.€€Although€not€stated€exactly€as€such,Ð )à$( ÐDefendants€claim:€1)€the€Trial€Court€erred€by€denying€Defendantsðð€motion€for€directed€verdict;€2)Ð |*Ì%) Ðthe€Trial€Court€erred€when€it€refused€to€set€aside€the€juryððs€verdict€when€Plaintiff€made€a€materialÐ h+¸&* Ðmisrepresentation€when€applying€for€the€life€insurance;€3)€the€juryððs€finding€of€a€violation€of€theÐ ° ÐTCPA€is€not€supported€by€the€evidence;€4)€the€juryððs€finding€that€Defendants€acted€in€bad€faith€whenÐ œì Ðdenying€the€claim€is€not€supported€by€the€evidence;€5)€the€Trial€Courtððs€jury€instruction€onÐ ˆØ Ðmisrepresentation€was€legally€erroneous;€and€6)€the€Trial€Court€erred€in€admitting€certain€evidence.€Ð tÄ ÐPlaintiff€raises€three€additional€issues.€€First,€Plaintiff€claims€the€Trial€Court€erred€when€it€suggestedÐ `° Ða€remittitur€in€the€amount€of€compensatory€damages€awarded€by€the€jury€pursuant€to€the€TCPA.€Ð L œ ÐSecond,€Plaintiff€claims€the€Trial€Court€erred€when€it€required€her€to€choose€between€the€breach€ofÐ 8 ˆ Ðcontract€remedies,€including€the€bad€faith€penalty,€or€the€remedies€available€under€the€TCPA.€Ð $ t ÐFinally,€Plaintiff€claims€that€pursuant€to€the€TCPA,€she€was€entitled€to€an€award€of€all€of€her€attorneyÐ  ` Ðfees€and€the€Trial€Court€erred€by€only€awarding€a€portion€of€those€fees.€Ð ü L  ÐÌÌà@))%ìàò òòòDiscussionˆÐ À  Ðó óóóÌà  àà ` àWe€first€address€Defendantsðð€claims€that€the€Trial€Court€erred€in€not€directing€aÐ ˜è  Ðverdict€in€their€favor€on€the€breach€of€contract€claim.€€As€this€Court€recently€explained€in€òòStooksburyÐ „Ô  Ðv.€American€Nat.€Prop.€and€Cas.€Co.óó,€126€S.W.3d€505€(Tenn.€Ct.€App.€2003):€€Ð pÀ ÐÌà8  àà8` Ð Ð àIn€deciding€whether€a€trial€court€was€correct€in€granting€or€denying€aÐ H˜ Ðmotion€for€directed€verdict,€an€appellate€court€cannot€weigh€theÐ 4„ Ðevidence.€Ð p` x` x ÐÌà8  àà8` Ð Ð àà0¸ ` x` xàRather,€it€must€take€the€strongest€legitimate€view€of€theÐ øH Ðevidence€in€favor€of€the€plaintiff,€indulging€in€all€reasonableÐ ä4 Ðinferences€in€his€favor,€and€disregarding€any€evidence€to€theÐ Ð  Ðcontrary.€€The€trial€judge's€action€[granting€a€motion€forÐ ¼  Ðdirected€verdict]€may€be€sustained€only€if€there€is€no€materialÐ ¨ø Ðevidence€in€the€record€that€would€support€a€verdict€for€theÐ ”ä Ðplaintiff,€under€any€of€the€theories€that€he€has€advanced.€Ð€Ð¸ x¸ x ÐÌà8  àà8` Ð Ð àòòWharton€Transport€Corp.€v.€Bridgesóó,€606€S.W.2d€521,€525€(Tenn.Ð X ¨ Ð1980)€(quoting€òòCecil€v.€Hardinóó,€575€S.W.2d€268,€271€(Tenn.€1978)).ÐD!”` x` x ÐÌà8  àà8` Ð Ð àà ¸ àTo€resolve€this€issue,€we€must€determine€if€the€Trial€CourtÐ #l! Ðwas€correct€when€it€overruled€Defendant's€motion€for€directed€verdict,Ð $X" Ðthereby€implicitly€concluding€there€was€material€evidence€that€wouldÐ ô$D # Ðsupport€a€verdict€for€Plaintiff.Ðà%0!$` x` x ÐÌòòStooksburyóó,€126€S.W.3d€at€516.€€Ð ¸'#& ÐÌà  àà ` àWith€regard€to€the€breach€of€contract€claim,€the€jury€was€asked€two€closely€relatedÐ )à$( Ðquestions€on€this€issue€and€found€that€Plaintiff€had€not€falsely€represented€her€husbandððs€medicalÐ |*Ì%) Ðcondition€when€applying€for€insurance.€€Whether€Plaintiff€made€a€misrepresentation€as€to€herÐ h+¸&* Ðhusbandððs€health€is€the€threshold€question€both€at€trial€and€in€this€appeal.€€What€this€Court€first€mustÐ ° Ðdetermine€is€whether€there€was€substantial€and€material€evidence€to€support€this€aspect€of€the€juryððsÐ œì Ðverdict.€€The€term€ð ðsubstantial€and€material€evidenceðð€has€been€defined€as€ð ðsuch€relevant€evidenceÐ ˆØ Ðas€a€reasonable€mind€might€accept€to€support€a€rational€conclusion€and€such€as€to€furnish€aÐ tÄ Ðreasonably€sound€basis€for€the€action€under€consideration.ðð€€òòPapachristou€v.€Univ.€of€Tennesseeóó,€29Ð `° ÐS.W.3d€487,€490€(Tenn.€Ct.€App.€2000)€(quoting€òòClay€Co.€Manor,€Inc.€v.€Stateóó,€849€S.W.2d€755,Ð L œ Ð759€(Tenn.€1993)).€€This€Court€also€has€described€it€as€requiring€ð ðsomething€less€than€aÐ 8 ˆ Ðpreponderance€of€the€evidence€.€.€.€but€more€than€a€scintilla€or€glimmer.ðð€€òòGluck€v.€Civil€Serv.Ð $ t ÐCommððnóó,€15€S.W.3d€486,€490€(Tenn.€Ct.€App.€1999)€(quoting€òòWayne€Co.€v.€Tennessee€Solid€WasteÐ  ` ÐDisposal€Control€Bd.óó,€756€S.W.2d€274,€280€(Tenn.€Ct.€App.€1988)).€€Ð ü L  ÐÌà  àà ` àWe€believe€there€was€a€clear€factual€issue€presented€to€the€jury€on€whether€PlaintiffÐ Ô$  Ðmaterially€misrepresented€that€her€husband€was€in€ð ðbasic€good€health.ðð€€As€noted,€this€Court€is€notÐ À  Ðto€weigh€the€evidence,€and€we€cannot€say€that€Mr.€Ginnððs€health€at€the€relevant€time€was€so€bad€thatÐ ¬ü  Ðwe€must€hold,€as€a€matter€of€law,€that€there€simply€was€no€way€Plaintiff€could€honestly€andÐ ˜è  Ðsubjectively€have€believed€her€husband€to€be€in€ð ðbasic€good€health.ðð€€Plaintiff€testified€she€believedÐ „Ô  Ðher€husband€to€be€in€basic€good€health€at€the€time€she€applied€for€the€insurance€and€why€she€believedÐ pÀ Ðthis€to€be€so.€€For€example,€while€Plaintiff€testified€that€her€husband€had€lost€approximately€sixtyÐ \¬ Ðpounds,€he€also€had€regained€approximately€twenty€pounds€after€changing€physicians.€€Further,€thereÐ H˜ Ðwas€proof€that€Plaintiffððs€husband€continued€all€his€activities,€including€his€work,€up€until€the€dayÐ 4„ Ðhe€died.€€Additionally,€Plaintiffððs€testimony€was€directly€contrary€to€Grossðð€testimony€concerningÐ  p Ðwhich€of€the€questions€contained€in€the€application€Gross€actually€asked€of€her.€€The€jury€was€atÐ  \ Ðliberty€to€believe€or€disbelieve€that€testimony,€and€it€chose€to€credit€Plaintiffððs€testimony.€€Ð øH ÐÌà  àà ` àIt€is€American€Heritage€that€made€the€determination€to€allow€Plaintiff€to€furnish€herÐ Ð  Ðspouseððs€medical€history€for€the€insurance€application€and,€in€fact,€sign€her€spouseððs€name€to€theÐ ¼  Ðapplication.€€This€being€so,€what€is€relevant€on€the€issue€of€misrepresentation€is€not€what€knowledgeÐ ¨ø ÐMr.€Ginn€had€concerning€his€health,€but€rather€what€knowledge€Plaintiff€had€concerning€herÐ ”ä Ðhusbandððs€health.€€Accordingly,€we€conclude€that€there€was€substantial€and€material€evidence€toÐ €Ð Ðsupport€the€juryððs€verdict€when€it€found€that€Plaintiff€did€not€make€any€material€misrepresentationsÐ l¼ Ðconcerning€her€husbandððs€health€when€applying€for€his€life€insurance.€€€€Ð X ¨ ÐÌà  àà ` àWe€next€address€whether€the€Trial€Court€erred€when€it€charged€the€jury€onÐ 0"€  ÐDefendantsðð€misrepresentation€defense.€€The€issue€of€whether€a€jury€instruction€was€proper€is€aÐ #l! Ðquestion€of€law€and€is€reviewed€òòde€novoóó€without€a€presumption€of€correctness.€€òòSee€Owens€v.Ð $X" ÐMethodist€Health€Care€Systemsóó,€No.€02A019704„CV„00089,€1999€Tenn.€App.€LEXIS€359,€at€**4,Ð ô$D # Ð5€(Tenn.€Ct.€App.€June€7,€1999).€€In€òòOwensóó,€we€stated€that€ð ðwe€consider€the€charge€as€a€whole€toÐ à%0!$ Ðdetermine€whether€prejudicial€error€has€been€committed.€€The€charge€will€not€be€invalidated€so€longÐ Ì&"% Ðas€it€fairly€defines€the€legal€issues€involved€in€the€case€and€does€not€mislead€the€jury."€€òòOwensóó,€1999Ð ¸'#& ÐTenn.€App.€LEXIS€359,€at€*€5€(quoting€òòHunter€v.€Burkeóó,€958€S.W.2d€751,€756€(Tenn.€Ct.€App.Ð ¤(ô#' Ð1997)).Ð )à$( Ðâ âÐ |*Ì%) Ðà  àà ` àDefendantsðð€primary€disagreement€with€the€jury€instruction€given€by€the€Trial€CourtÐ ° Ðâ âis€that€it€relied€on€language€from€òòGatlin€v.€World€Service€Life€Ins.€Co.óó,€616€S.W.2d€606€(Tenn.Ð œì Ð1981),€as€opposed€to€what€Defendants€believe€to€be€the€more€factually€analogous€òòBroyles€v.€FordÐ ˆØ ÐLife€Ins.€Co.óó,€594€S.W.2d€691€(Tenn.€1980).€€In€òòGatlinóó,€our€Supreme€Court€distinguished€its€earlierÐ tÄ Ðopinion€in€òòBroylesóó€by€stating:Ð `° ÐÌà8  àà8` Ð Ð àIn€this€Court's€recent€decision€ofòò€Broyles€v.€Ford€Life€Insurance€Co.óó,Ð 8 ˆ Ð594€S.W.2d€691€(Tenn.€1980),€the€Court€was€faced€with€a€situationÐ $ t Ðinvolving€a€term€life€insurance€policy€in€which€the€insured€had€statedÐ  ` Ðthat€he€was€in€"good€health."€€In€that€case€the€insured€had€been€underÐ ü L  Ðtreatment€for€leukemia;€the€treatment€caused€him€to€experienceÐ è 8  Ðblurred€vision,€headaches,€stomach€disorders,€and€rendered€himÐ Ô$  Ðunable€to€take€some€medication.€€He€was€undergoing€frequent€testsÐ À  Ðand€although€the€treating€physician€would€not€say€that€he€specificallyÐ ¬ü  Ðtold€Broyles€that€he€had€"leukemia,"€he€testified€that€BroylesÐ ˜è  Ðpositively€knew€he€had€a€medical€problem.€€There€was€a€concurrentÐ „Ô  Ðfinding€by€the€trial€court€and€the€intermediate€appellate€court€thatÐ pÀ ÐBroyles€did€not€know€he€had€leukemia,€but€this€Court€found,€as€aÐ \¬ Ðmatter€of€law,€that€he€had€misrepresented€the€state€of€his€health,€basedÐ H˜ Ðupon€the€overwhelming€evidence€that€he€knew€he€had€a€seriousÐ 4„ Ðmedical€problem.€€Another€important€distinction€between€the€BroylesÐ  p Ðcase€and€the€present€one€is€that€in€Broyles€the€application€formÐ  \ Ðcontained€a€place€for€exceptions€or€limitations€on€the€generalÐ øH Ðstatements€of€health€where€it€was€indicated€that€applicants€shouldÐ ä4 Ðqualify€the€assertion€of€"good€health,"€if€appropriate.€€Thus,€it€wasÐ Ð  Ðmuch€more€evident€in€that€case€that€the€insurance€carrier€was€relyingÐ ¼  Ðon€the€fact€of€"good€health"€rather€than€the€mere€representation€orÐ ¨ø Ðopinion€of€such€status.Дä` x` x ÐÌòòGatlinóó,€616€S.W.2d€at€610„11.Ð l¼ ÐÌà  àà ` àWe€do€not€believe€òòBroylesóó€is€applicable€for€two€reasons.€€First,€we€have€alreadyÐ D!” Ðconcluded€that€Mr.€Ginnððs€health,€unlike€Mr.€Broylesðð€health,€was€not€such€that€we€are€required€toÐ 0"€  Ðconclude,€as€a€matter€of€law,€that€Plaintiff€made€a€misrepresentation€when€she€said€Mr.€Ginn€wasÐ #l! Ðin€ð ðbasic€good€health.ðð€€As€already€concluded€by€us,€there€was€substantial€and€material€evidence€toÐ $X" Ðsupport€the€juryððs€verdict€in€finding€that€Plaintiff€did€not€make€any€material€misrepresentationÐ ô$D # Ðconcerning€her€husbandððs€health€when€applying€for€her€husbandððs€life€insurance.€€Second,€in€òòBroylesóóÐ à%0!$ Ðthe€application€contained€a€ð ðplace€for€exceptions€and€limitations€on€the€general€statements€ofÐ Ì&"% Ðhealthð8ð.ðð€€Here,€Plaintiff€testified€she€never€saw€the€application€completed€by€Gross€on€his€laptopÐ ¸'#& Ðcomputer,€and€that€Gross€never€inquired€further€about€her€husbandððs€health€other€than€asking€if€heÐ ¤(ô#' Ðsmoked,€had€AIDS,€or€was€in€basic€good€health.€€When€considering€the€Trial€Courtððs€charge€to€theÐ )à$( Ðâ âjury€as€a€whole,€we€cannot€conclude€that€the€Trial€Court€committed€reversible€error€when€it€reliedÐ |*Ì%) Ðmore€heavily€on€òòGatlinóó€than€òòBroyles€óówhen€charging€the€jury€on€the€defense€of€misrepresentationÐ ° Ðgiven€the€facts€as€presented€to€the€jury.€€Ð œì Ðâ âÌà  àà ` àThe€claimed€misrepresentation€was€the€only€defense€relied€upon€by€Defendants€whenÐ tÄ Ðdenying€Plaintiffððs€claim.€Having€affirmed€the€verdict€and€the€resulting€judgment€that€Plaintiff€didÐ `° Ðnot€materially€misrepresent€her€husbandððs€health,€it€necessarily€follows€that€we€will€not€disturb€theÐ L œ Ðjuryððs€finding€that€there€was€a€breach€of€contract.€Ð 8 ˆ ÐÌà  àà ` àThe€statute€upon€which€Plaintiff€was€awarded€a€25%€bad€faith€penalty€is€Tenn.€CodeÐ  ` ÐAnn.€ðð€56„7„105(a),€which€provides€as€follows:Ð ü L  ÐÌà8  àà8` Ð Ð àà ¸ àThe€insurance€companies€of€this€state€ð8ð€in€all€cases€when€aÐ Ô$  Ðloss€occurs€and€they€refuse€to€pay€the€loss€within€sixty€(60)€days€afterÐ À  Ða€demand€has€been€made€by€the€holder€of€the€policy€or€fidelity€bondÐ ¬ü  Ðon€which€the€loss€occurred,€shall€be€liable€to€pay€the€holder€of€theÐ ˜è  Ðpolicy€or€fidelity€bond,€in€addition€to€the€loss€and€interest€thereon,€aÐ „Ô  Ðsum€not€exceeding€twenty-five€percent€(25%)€on€the€liability€for€theÐ pÀ Ðloss;€provided,€that€it€is€made€to€appear€to€the€court€or€jury€trying€theÐ \¬ Ðcase€that€the€refusal€to€pay€the€loss€was€not€in€good€faith,€and€thatÐ H˜ Ðsuch€failure€to€pay€inflicted€additional€expense,€loss,€or€injuryÐ 4„ Ðincluding€attorney€fees€upon€the€holder€of€the€policy€or€fidelity€bond;Ð  p Ðand€provided€further,€that€such€additional€liability,€within€the€limitÐ  \ Ðprescribed,€shall,€in€the€discretion€of€the€court€or€jury€trying€the€case,Ð øH Ðbe€measured€by€the€additional€expense,€loss,€and€injury€includingÐ ä4 Ðattorney€fees€thus€entailed.ÐÐ ` x` x ÐÌà  àà ` àTenn.€Code€Ann.€ðð€56„7„105(a)€is€penal€in€nature€and€must€be€strictly€construed.€€òòSeeÐ ¨ø ÐStooksburyóó,€126€S.W.3d€at€519€(citing€òòMinton€v.€Tennessee€Farmers€Mut.€Ins.€Co.óó,€832€S.W.2d€35,Ð ”ä Ð38€(Tenn.€Ct.€App.€1992)).€€In€order€to€recover€bad€faith€penalties€under€this€statute,€a€plaintiff€mustÐ €Ð Ðprove:€ð ð(1)€the€policy€of€insurance€must,€by€its€terms,€have€become€due€and€payable,€(2)€a€formalÐ l¼ Ðdemand€for€payment€must€have€been€made,€(3)€the€insured€must€have€waited€60€days€after€makingÐ X ¨ Ðdemand€before€filing€suit€(unless€there€was€a€refusal€to€pay€prior€to€the€expiration€of€the€60€days),Ð D!” Ðand€(4)€the€refusal€to€pay€must€not€have€been€in€good€faith.ðð€€òòStooksburyóó,€126€S.W.3d€at€519.€€TheÐ 0"€  Ðburden€of€proving€that€an€insurance€company€acted€in€bad€faith€in€refusing€to€pay€a€claim€lies€withÐ #l! ÐPlaintiff€herein.€€òòIdóó;€òòsee€also€Nelms€v.€Tennessee€Farmers€Mut.€Ins.€Co.óó,€613€S.W.2d€481,€484€(Tenn.Ð $X" ÐCt.€App.€1978).€€In€òòSisk€v.€Valley€Forge€Ins.€Co.óó,€640€S.W.2d€844€(Tenn.€Ct.€App.€1982),€this€CourtÐ ô$D # Ðexplained€that:€€Ð à%0!$ ÐÌà8  àà8` Ð Ð àThe€bad€faith€penalty€is€not€recoverable€in€every€refusal€of€anÐ ¸'#& Ðinsurance€company€to€pay€a€loss.€€òòAn€insurance€company€is€entitledÐ ¤(ô#' Ðto€rely€upon€available€defenses€and€refuse€payment€if€there€isÐ )à$( Ðsubstantial€legal€grounds€that€the€policy€does€not€afford€coverage€forÐ |*Ì%) Ðthe€alleged€loss.€€If€an€insurance€company€unsuccessfully€asserts€aÐ h+¸&* Ðdefense€and€the€defense€was€made€in€good€faith,€the€statute€does€notÐ ° Ðpermit€the€(sic)€imposing€of€the€bad€faith€penalty.óóÐœì` x` x ÐÌòòSiskóó,€640€S.W.2d€at€852€(emphasis€in€original)(quoting€òòNelms€v.€Tennessee€Farmers€Mutual€Ins.€Co.óó,Ð tÄ Ð613€S.W.2d€481,€484€(Tenn.€Ct.€App.€1978)).Ð `° ÐÌà  àà ` àThe€juryððs€verdict€awarding€a€bad€faith€penalty€can€be€set€aside€only€if€there€is€noÐ 8 ˆ Ðmaterial€evidence€to€support€it.€€Tenn.€R.€App.€P.€13(d);€òòForrester€v.€Stockstillóó,€869€S.W.2d€328,€329Ð $ t Ð(Tenn.€1994).€€However,€the€verdict€cannot€be€based€upon€a€ð ðmere€spark,€glimmer,€or€scintilla€ofÐ  ` Ðevidence.ðð€€òòSeeóó€òòStooksburyóó,€126€S.W.3d€at€519€(quoting€òòSadek€v.€Nashville€Recycling€Co.óó,€751Ð ü L  ÐS.W.2d€428,€431€(Tenn.€Ct.€App.€1988)).€€In€our€opinion,€Defendants€had€substantial€legal€groundsÐ è 8  Ðsupporting€their€position€that€Plaintiff€materially€misrepresented€her€husband€to€be€in€ð ðbasic€goodÐ Ô$  Ðhealthðð€when€applying€for€the€life€insurance.€€This€is€readily€apparent€given€Mr.€Ginnððs€troubledÐ À  Ðmedical€history.€€Defendants€simply€unsuccessfully€asserted€the€misrepresentation€defense.€€We€findÐ ¬ü  Ðno€material€evidence€whatsoever€to€support€the€juryððs€conclusion€that€this€defense€was€asserted€inÐ ˜è  Ðbad€faith.€€Accordingly,€we€reverse€the€judgment€of€the€Trial€Court€insofar€as€it€awards€Plaintiff€aÐ „Ô  Ðbad€faith€penalty€of€25%.€€òòSeeóó€òòStooksburyóó,€126€S.W.3d€at€519€(reversing€a€25%€bad€faith€penaltyÐ pÀ Ðafter€concluding€the€defendant€had€substantial€legal€grounds€supporting€its€position€that€theÐ \¬ Ðplaintiffsðð€insurance€coverage€had€been€cancelled€prior€to€the€date€of€loss).€€òòSee€also€Sisk€v.€ValleyÐ H˜ ÐForge€Ins.€Co.óó,€640€S.W.2d€844,€852€(Tenn.€Ct.€App.€1982)(ð ðThere€were€substantial€legal€grounds,Ð 4„ Ðthough€not€sustained,€for€the€insurer€to€defend€herein.€€Therefore,€we€believe€the€finding€of€bad€faithÐ  p Ðmust€be€overturned.ðð);€òòNelms€v.€Tennessee€Farmers€Mutual€Ins.€Coóó,€613€S.W.2d€481,€484€(Tenn.Ð  \ ÐCt.€App.€1978)€(Reversing€the€juryððs€award€of€a€25%€bad€faith€penalty€after€concluding€there€wereÐ øH Ðð ðvalid€reasons€for€the€insurance€company€to€question€the€loss.€€Further,€we€think€the€insuranceÐ ä4 Ðcompany€honestly€and€in€good€faith€believed€ð8ð€its€policy€was€not€liable€for€the€loss.€€For€the€aboveÐ Ð  Ðreasons€we€think€there€is€no€material€evidence€to€support€a€finding€of€bad€faith€and€the€invoking€ofÐ ¼  Ðthe€statutory€penalty.ðð).€Ð ¨ø ÐÌà  àà ` àDefendants€claim€the€Trial€Court€erred€in€not€directing€a€verdict€in€their€favor€onÐ €Ð ÐPlaintiffððs€TCPA€claims.€€They€also€raise€the€related€issue€of€whether€Plaintiff€even€stated€anÐ l¼ Ðactionable€claim€under€the€TCPA.€€We€will€quote€the€Trial€Courtððs€entire€charge€to€the€jury€on€thisÐ X ¨ Ðclaim:Ð D!” ÐÌà8  àà8` Ð Ð àà ¸ àThe€plaintiff€claims€that€defendant€used€the€following€unfairÐ #l! Ðor€deceptive€acts€or€practices€that€violate€the€Tennessee€ConsumerÐ $X" ÐProtection€law:€€Tennessee€Code€Annotated€47„18„104(12).€Ð ô$D # ÐRepresenting€that€a€consumer€transaction€confers€or€involves€rights,Ð à%0!$ Ðremedies€or€obligations€that€it€does€not€have€or€involve€or€which€areÐ Ì&"% Ðprohibited€by€law;€Tennessee€Code€Annotated€47„18„104(14).€Ð ¸'#& ÐCausing€confusion€or€misunderstanding€with€respect€to€the€authorityÐ ¤(ô#' Ðof€a€salesperson,€representative€or€agent€to€negotiate€the€final€termsÐ )à$( Ðâ âof€a€consumer€transaction;€Tennessee€Code€Annotated€47„18„104(27).€Ð |*Ì%) ÐEngaging€in€any€other€act€or€practice€which€is€deceptive€to€theÐ ° Ðconsumer€or€to€any€other€person.€€Ðœì` x` x Ðâ âÌà8  àà8` Ð Ð àà ¸ àIf€you€find€that€the€plaintiff€has€proven€by€a€preponderance€ofÐ tÄ Ðthe€evidence€that€the€defendant€used€any€one€or€more€of€these€acts€orÐ `° Ðpractices,€then€defendant€has€violated€the€Tennessee€ConsumerÐ L œ ÐProtection€Law.€Ð8 ˆ` x` x ÐÌà8  àà8` Ð Ð àà ¸ àThe€plaintiff€is€entitled€to€actual€damages€for€any€loss€ofÐ  ` Ðmoney,€property,€or€thing€of€value€that€was€caused€by€the€defendantððsÐ ü L  Ðuse€of€the€unfair€or€deceptive€acts€or€practices.€Ðè 8 ` x` x ÐÌà  àà ` àAs€we€noted€in€òòStooksburyóó,€the€ð ðstated€purpose€of€the€TCPA€is€to€ððprotect€consumersÐ À  Ðand€legitimate€business€enterprises€from€those€who€engage€in€unfair€or€deceptive€acts€or€practicesÐ ¬ü  Ðin€the€conduct€of€any€trade€or€commerce€in€part€or€wholly€within€this€state.ðððð€òòStooksburyóó,€126Ð ˜è  ÐS.W.3d€at€520€(quoting€Tenn.€Code€Ann.€ðð€47„18„102(2)).€€We€also€noted€in€òòStooksburyóó€that€theÐ „Ô  ÐTCPA€applies€to€insurance€companies.€€We€stated:Ð pÀ ÐÌà8  àà8` Ð Ð àThe€applicability€of€the€TCPA€to€insurance€companies€was€recentlyÐ H˜ Ðdiscussed€by€our€Supreme€Court€in€òòMyint€v.€Allstate€Ins.€Co.óó,€970Ð 4„ ÐS.W.2d€920€(Tenn.€1998).€€In€òòMyintóó,€the€plaintiffs€brought€suit€afterÐ  p ÐAllstate€refused€to€pay€on€a€claim€due€to€the€suspicious€nature€of€theÐ  \ Ðcause€of€two€fires€which€ultimately€resulted€in€substantial€damage€toÐ øH Ðthe€plaintiffsðð€property.€€It€was€stipulated€by€the€parties€that€both€firesÐ ä4 Ðwere€set€intentionally,€but€the€plaintiffs€steadfastly€denied€that€theyÐ Ð  Ðset€the€fires.€€òòIdóó.€at€923.€€The€main€issue€to€be€decided€by€the€SupremeÐ ¼  ÐCourt€was€whether€the€TCPA€was€applicable€to€insurance€companies.€Ð ¨ø ÐThe€Court€held€that€it€was,€concluding€the€legislature€intended€theÐ ”ä ÐTCPA€to€be€complementary€to€other€statutes€regulating€the€insuranceÐ €Ð Ðindustry.€€After€reaching€this€result,€the€Court€then€decided€whetherÐ l¼ Ðthe€denial€of€the€plaintiffsðð€insurance€claim€constituted€a€violation€ofÐ X ¨ Ðthe€Act.€€The€Court€stated:ÐD!”` x` x ÐÌà8  àà8` Ð Ð àà0¸ ` x` xàà  àWhile€the€sale€of€a€policy€of€insurance€easily€fallsÐ #l! Ðunder€this€definition€of€ð ðtradeðð€and€ð ðcommerce,ðð€we€concludeÐ $X" Ðthat€Allstateððs€conduct€in€handling€the€Myintsðð€insuranceÐ ô$D # Ðpolicy€was€neither€unfair€nor€deceptive.€€The€record€revealsÐ à%0!$ Ðno€evidence€of€an€attempt€by€Allstate€to€violate€the€terms€ofÐ Ì&"% Ðthe€policy,€deceive€the€Myints€about€the€terms€of€the€policy,Ð ¸'#& Ðor€otherwise€act€unfairly.€€It€is€apparent€that€the€denial€of€theÐ ¤(ô#' ÐMyintsðð€claim€was€Allstateððs€reaction€to€circumstances€whichÐ )à$( ÐAllstate€believed€to€be€suspicious.€€Consequently,€AllstateððsÐ |*Ì%) Ðconduct€does€not€fall€within€the€purview€of€the€TennesseeÐ h+¸&* ÐConsumer€Protection€Act,€and€the€Myints€are€not€entitled€toÐ ° Ðthe€benefits€of€treble€damages€and€attorneyððs€fees€recoverableÐ œì Ðunder€the€Act.€€ÐˆØ¸ x¸ x ÐÌòòStooksburyóó,€126€S.W.3d€at€520€(quoting€òòMyintóó,€970€S.W.2d€at€926).€€Ð `° ÐÌà  àà ` àHere€the€jury€was€not€asked€to€state€what€conduct€by€Defendants€it€believed€to€beÐ 8 ˆ Ðunfair€or€deceptive.€€Instead,€the€jury€simply€was€asked€whether€Defendants€had€engaged€inÐ $ t Ðdeceptive€or€unfair€acts€in€violation€of€the€TCPA.€€In€her€brief€on€appeal,€Plaintiff€lists€certainÐ  ` Ðconduct€which€she€believes€supports€the€juryððs€verdict€on€this€claim.€€For€example,€Plaintiff€claimsÐ ü L  ÐDefendants€violated€the€TCPA€simply€because€they€took€the€application€for€insurance€ð ðfromÐ è 8  Ðpiecework€employees€trying€to€make€production€at€their€workstationsð8ð.ðð€€Plaintiff€also€claims€theÐ Ô$  Ðmanner€in€which€Gross€took€the€application€was€a€violation€of€the€TCPA,€such€as€when€he€failed€toÐ À  Ðread€Plaintiff€the€questions€contained€on€the€application.€€What€Plaintiff€overlooks€is€that€she€seeks€Ð ¬ü  Ðthe€benefit€of€all€this€alleged€conduct€when€she€claims€that€she€had€a€valid€contract€of€insurance,Ð ˜è  Ðsuccessfully€we€might€add.€€Ð „Ô  ÐÌà  àà ` àPlaintiff€also€claims€the€Defendantsðð€denial€of€her€claim€violated€the€TCPA.€€€PlaintiffÐ \¬ Ðclaims,€among€other€things,€that€the€denial€of€her€claim€was€unfair€and€deceptive€because€Mr.€GinnððsÐ H˜ Ðmedical€records€were€not€reviewed€by€a€physician€or€someone€with€medical€training.€€We€fail€to€seeÐ 4„ Ðhow€this€even€remotely€states€a€cause€of€action€under€the€TCPA.€€Ð  p ÐÌà  àà ` àPlaintiffððs€husband€had€a€valid€life€insurance€contract,€and€Defendants€have€neverÐ øH Ðquestioned€that€with€the€sole€exception€being€whether€Plaintiff€made€material€misrepresentationsÐ ä4 Ðabout€her€husbandððs€health.€€Today€we€reach€the€same€ultimate€conclusion€reached€by€this€Court€inÐ Ð  ÐòòStooksburyóó€and€by€our€Supreme€Court€in€òòMyintóó.€€We€conclude€there€was€no€unfair€or€deceptiveÐ ¼  Ðconduct€by€Defendants€when€the€insurance€contract€was€entered€into;€there€was€no€unfair€orÐ ¨ø Ðdeceptive€conduct€by€Defendants€when€handling€Plaintiffððs€claim;€there€was€no€evidence€of€anÐ ”ä Ðattempt€by€Defendants€to€violate€the€terms€of€the€policy;€and€Defendants€had€substantial€legalÐ €Ð Ðgrounds€to€support€their€defense€to€Plaintiffððs€claim€for€benefits.׃×Ý ƒ#ÃÝòòÚ  Ú3Ú  ÚóóÝ  Ý×  ×€€After€reviewing€the€entire€recordÐ l¼ Ðin€this€case,€we€conclude€there€is€no€substantial€or€material€evidence€upon€which€the€jury€could€haveÐ X ¨ Ðconcluded€Defendants€violated€the€TCPA.€€In€short,€Plaintiff€got€exactly€what€she€bargained€for€€ð!ð€Ð D!” Ða€$50,000€life€insurance€policy€on€her€husband.€€The€only€reason€American€Heritage€claimedÐ 0"€  ÐPlaintiff€was€not€entitled€to€the€proceeds€was€its€good€faith€belief,€albeit€mistaken,€that€PlaintiffÐ #l! Ðmaterially€misrepresented€her€husbandððs€health.€€Finding€no€substantial€and€material€evidenceÐ $X" Ðanywhere€in€the€record€to€support€a€verdict€for€Plaintiff€pursuant€to€the€TCPA,€we€reverse€thatÐ ° Ðportion€of€the€Trial€Courtððs€judgment.€€We€likewise€reverse€the€award€of€attorney€fees€pursuant€toÐ œì Ðthe€TCPA.€€In€light€of€this€holding,€we€pretermit€Plaintiffððs€claim€that€the€Trial€Court€erred€in€forcingÐ ˆØ Ðher€to€elect€between€remedies,€and€that€it€further€erred€by€not€awarding€her€all€the€attorney€fees€sheÐ tÄ Ðrequested.€€Ð `° ÐÌà  àà ` àDefendantsðð€final€issue€surrounds€whether€or€not€certain€evidence€should€have€beenÐ 8 ˆ Ðadmitted.€€More€specifically,€Defendants€claim€the€Trial€Court€improperly€allowed€Plaintiff€to€testifyÐ $ t Ðabout€the€statements€of€Mr.€Ginnððs€physician€following€the€March€22,€1999,€colonoscopy€whereinÐ  ` Ðthe€physician€told€Plaintiff€ð ðeverything€looked€fine.ðð€€Defendants€also€claim€the€Trial€CourtÐ ü L  Ðimproperly€refused€to€allow€them€to€impeach€one€of€Plaintiffððs€witnesses€via€inconsistent€statementsÐ è 8  Ðcontained€in€an€affidavit.€€We€review€these€evidentiary€determination€under€the€abuse€of€discretionÐ Ô$  Ðstandard.€€òòOtis€v.€Cambridge€Mut.€Fire€Ins.€Co.óó,€850€S.W.2d€439,€442€(Tenn.1992)€(holdingÐ À  Ð"admissibility€of€evidence€is€within€the€sound€discretion€of€the€trial€judge").€€Ð ¬ü  ÐÌà  àà ` àTenn.€R.€App.€P.€36(b)€provides€that€a€ð ðfinal€judgment€from€which€relief€is€availableÐ „Ô  Ðand€otherwise€appropriate€shall€not€be€set€aside€unless,€considering€the€whole€record,€error€involvingÐ pÀ Ða€substantial€right€more€probably€than€not€affected€the€judgment€or€would€result€in€prejudice€to€theÐ \¬ Ðjudicial€process.ðð€€This€Court€has€reviewed€all€of€the€evidence€in€this€case€and€the€entire€record.€Ð H˜ ÐEven€if€Defendants€are€correct€that€these€evidentiary€rulings€by€the€Trial€Court€were€incorrect,€weÐ 4„ Ðnevertheless€conclude€that€such€rulings€did€not€involve€a€substantial€right€that€more€probably€thanÐ  p Ðnot€Ô_ÔaffectedÔ_Ô€the€juryððs€verdict€or€the€judgment€as€amended€by€this€Court.€€Therefore,€even€if€theseÐ  \ Ðrulings€were€incorrect,€Defendants€would€not€be€entitled€to€a€new€trial.€€Ð øH ÐÌà  àà ` àAfter€the€jury€rendered€its€verdict,€the€Trial€Court€required€Plaintiff€to€choose€betweenÐ Ð  Ðthe€remedies€available€under€the€breach€of€contract€claim€or€the€remedies€available€under€the€TCPA.€Ð ¼  ÐSince€we€reversed€the€judgment€insofar€as€it€awarded€any€damages€under€the€TCPA,€we€mustÐ ¨ø Ðnecessarily€reinstate€the€juryððs€verdict€awarding€Plaintiff€compensatory€damages€for€breach€ofÐ ”ä Ðcontract€in€the€amount€of€$50,000,€the€policy€value.€€Defendants€do€not€challenge€the€award€ofÐ €Ð Ðprejudgment€interest€or€discretionary€costs,€and€we€affirm€those€aspects€of€the€judgment.€€TheÐ l¼ ÐJudgment€of€the€Trial€Court€is€affirmed€insofar€as€it€awards€Plaintiff€$50,000€in€compensatoryÐ X ¨ Ðdamages,€$21,561.64€in€prejudgment€interest,€and€$1,853.51€in€discretionary€costs,€bringing€the€totalÐ D!” Ðjudgment€to€$73,415.15.€€€€Ð 0"€  ÐÌÌÐ  ô$D # Ðà@  %ìàò òòòConclusionó óóóˆÐ ° ÐÌà  àà ` àThe€Judgment€of€the€Trial€Court€is€affirmed€in€part€and€reversed€in€part.€€Specifically,Ð ˆØ Ðthe€judgment€of€the€Trial€Court€is€modified€so€as€to€award€Plaintiff€$50,000€in€compensatoryÐ tÄ Ðdamages,€$21,561.64€in€prejudgment€interest,€and€$1,853.51€in€discretionary€costs€for€a€totalÐ `° Ðjudgment€of€$73,415.15.€€This€case€is€remanded€to€the€Trial€Court€for€collection€of€the€costs€below.€Ð L œ ÐCosts€on€appeal€are€assessed€one„half€against€the€Appellants€American€Heritage€Life€InsuranceÐ 8 ˆ ÐCompany€and€Daryle€W.€Gross,€and€their€surety,€and€one„half€against€the€Appellee€Pamela€K.€Ginn.€Ð $ t ÐÌÌÌÌÌÌ€ÌòòóóÌà  àà ` àà ¸ àà  àà h àà À àà  à___________________________________Ð pÀ Ðà  àà ` àà ¸ àà  àà h àà À àà  àD.€MICHAEL€SWINEY,€JUDGEÐ \¬ ÐÌ