ÿWPCI œuSBo;ìõ"—ÇPitÊšõ?ô"—€-ºÈ«!Yy°7¿¬ðA0{ŒÊ&âÛšWä& Q´¥(wÁ"ÆœK‘Úš§ã‰ÙIÌ£ ùX†dÚë"4®M´[Ùš +ÐñŒÁ3?LÓÙdÏ3Áéqz\ç€Ê¥u€§µðêp›ìë¾5«Xpî9[É%9Jà¦ÿy)þÖ˜a»ü{”4^}‡à/v¿X²õœ¸&·éÈÜû­7;+ÉtÀ×ñÞjgbÛ¯#ãDƒ“0©ŽŸªö/4H¶1è0ªžPŽ6´¿Áº‡xÞwÐüÜ$ål¬ó.TÄ…F玀âÛæƒµ ~(ЂVFú[Éû¿ŒSS( 4¸ô³ú5,8) h¬ÍÌ"“ œ?:ì] œ„±ÐÇp?ìaÙB-&/^ãrQŸÌTÝÇþ‘4Ÿ¯ÈF–Å™àÆwév¨%íÝî#ôsG‡"¶p‰bc=p<ó¤0D£â“Ñß“amÔ?mS¾Pn¡ú ­´ÄK ¬0²Ó°÷=úá‘^bÊiÑF·É{ô:j:!zw„v¤~0>ñÃ://6q`4åù3+éºTl© ösõF#uó“±mœåÚåNX¢ÆÊÜ¿!ª"^m²"ß;b#É\ %% ^ + 0ˆ7 UN¿ w 4 z% ÒŸ q € m‚ UN™ Æç Æ­ ÆsÆ9 0DÿNCNE£“E6¬8Zääääääääääääääääääääääb>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 0ëFFFF B11 0¤N D3ò D-% 0KRR ASÆð 0¤¶ 0DZ A«ž˜\\IB01S08\KNOXCLERK4ÈÈ,,,,ÈÈ0»¸…}1Þ (`£ª$¡¡Ñ€.ÑÑ8€½­»»d»»d8ÑÑ ý ÑÓ  Ó(í€"  Z6Times New Roman RegularÖƒF1ê:i¢Ø+00 ˜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.wpt3|xÿU‹ÿÀÀÀ(ÖÃ9 Z‹6Times New Roman RegularLevel 1Level 2Level 3Level 4Level 5‚Level 1Level 2Level 3Level 4Level 5„Level 1Level 2Level 3Level 4Level 5…Level 1Level 2Level 3Level 4Level 5(#Ã$òòÚ  Ú0Ú  Úóó SchultenMelindaMeadorWiderkehr Tutt USFMullikinMcElwaneyCorbinChamblissBahnerMcGeorge ToofCulbreathAssn Goodlettsville ™Ý ƒR¯$ÝÓ  Óà  àòòÚ  Ú1Ú  ÚóóÔ€XF¹X»»ÔÝ  ÝÔ_Ô€€Regarding€Hartfordððs€argument€that€the€Tennessee€workerððs€compensation€statutes€are€theÐ ° Ðexclusive€remedial€scheme€for€Simmonsðð€claims,€Tenn.€Code€Ann.€ðð50„6„108€clearly€provides€thatÐ œì Ðð ðrights€and€remedies€herein€granted€to€an€employee€.€.€.€shall€exclude€all€other€rights€and€remediesÐ ˆØ Ðof€such€employee,€such€employeeððs€personal€representative,€dependents€or€next€of€kinðð€„€thus,€thisÐ tÄ Ðexclusivity€provision€does€not€apply€to€the€employer. ¢Ý ƒR¯$ÝÓ  Óà  àòòÚ  Ú3Ú  ÚóóÔ€XF¹X»»ÔÝ  ÝÔ_Ô€€The€specific€punitive€damage€award€in€this€case€would€require€reversal€even€if€it€was€aÐ ° Ðproper€remedy,€because€the€trial€court€failed€to€ð ðclearly€demonstrate€a€consideration€of€all€relevantÐ œì Ðfactorsðð,€and€the€courtððs€findings€failed€to€explicitly€refer€to€the€factors€set€out€in€the€SupremeÐ ˆØ ÐCourtððs€opinion€in€òòHodges€v.€S.C.€Toof€&€Co.óó,€833€S.W.2d€896€(Tenn.€1992).€€òòCulbreath€v.€FirstÐ tÄ ÐTennessee€Bank€Nat.€Assððnóó,€44€S.W.3d€518€(Tenn.€2001). PÝ ƒR¯$ÝÓ  Óà  àòòÚ  Ú2Ú  ÚóóÔ€XF¹X»»ÔÝ  ÝÔ_ÔWe€think€Hartford€is€bound€by€the€findings€of€fact€made€by€the€Kentucky€Court.€€HartfordÐ ° Ðhad€the€opportunity€to€defend€under€a€reservation€of€rights€and€contest€the€amount€and€award€ofÐ œì Ðdamages,€which€they€declined€to€do.€€Ð ˆØ ÐÌà  àBut€the€Trial€Court€erred€in€saying€the€employee€was€ð ðforced€to€file€in€Kentucky€afterÐ `° ÐTennessee€had€stopped€all€coverage.ððÐ L œ Ð- ù-(|G2¯$¤¤Ý ƒ£ª!ÝÑ€.ÑÑ8€ »»dd8ÑÑ ý ÑÓ  ÓÝ  Ýà  àòòÚ  Ú0Ú  ÚóóÔ€XF¹X»»Ô d(|3Gg$££Ý ƒ£ª!ÝÑ€.ÑÑ8€ »»dd8ÑÑ ý ÑÓ  ÓÝ  ÝVVVV'ÿÿdxd)!ÈÈÈÈdxdx( ±þ$’’ò òFigure€Ú  Ú1Ú  Úó ó^_X`YEþÿ<<CÿÿƒLevel 1Level 2Level 3Level 4Level 5(|3Gg$¢¢Ý ƒ£ª!ÝÑ€.ÑÑ8€ »»dd8ÑÑ ý ÑÓ  ÓÝ  Ý($$””ò òÚ  Ú1Ú  Úó óX[Z&OLE 2.0 Box <=8ÿÿÿÿÿÿÿÿÿÿCÿÿ HKKKKÝ ƒ£ª!ÝÑ€.ÑÑ8€ »»ddÈ8ÑÑ ý ÑÓ  ÓÝ  ÝÔ_ÔÔ€¼ »»»ÔÑ8€F¹XXdì»»d8Ñà@¦ ¦ ìàIN€THE€COURT€OF€APPEALS€OF€TENNESSEEˆÐ ° Ðà@””$ìàAT€KNOXVILLEˆÐ  Ðà@ººìàSeptember€20,€2004€SessionˆÐ Ô$ ÐÔ‡XF¹X»¼ ÔÌò òÔ#†¼ »XXF¹¤#ÔÓ  ÓFRED€SIMMONS€TRUCKING,€INC.,€v.€UNITED€STATES€FIDELITY€ANDÐ Ò" ÐGUARANTY€COMPANY€and€its€successors€in€interest,€HARTFORD€FIREÐ æ 6 ÐINSURANCE€COMPANYòòóóÔ‡XF¹X»¼ Ôó óÐ ú J ÐÓêÓÌà@  ìàò òDirect€Appeal€from€the€Circuit€Court€for€Hamilton€CountyˆÐ ú J Ðà@  ìàNo.€98C0774€€€€€€Hon.€Jacqueline€E.€Schulten,€Circuit€JudgeˆÐ æ 6  ÐÌÌà@ìì*ìàßA€V) °°` d€÷E<©` A߈Ð ªú  ÐÌà@U U ìàNo.€E2003„02892„Ô_ÔCOAÔ_Ô„R3„CV€„€FILED€NOVEMBER€29,€Ô_Ô2004Ô_Ô€ˆÐ ¥õ  ÐÌßA€V) °°` dE<|` AßÐ }Í Ðó óÌÌIn€this€breach€of€contract€action€based€on€a€policy€of€insurance,€the€Trial€Court€determined€defendantÐ d´ Ðhad€breached€the€contract€and€awarded€compensatory€damages,€as€well€as€punitive€damages.€€OnÐ P  Ðappeal,€we€reverse€in€part,€affirm€in€part,€vacate€and€remand.Ð <Œ ÐÌÔ#†¼ »XXF¹¯#ÔÔ‡XF¹X»¼ Ôò òTenn.€R.€App.€P.3€Appeal€as€of€Right;€Judgment€of€the€Circuit€Court€Affirmed€in€Part,Ð d ÐReversed€in€Part,€Vacated€and€Remanded.ó óÐ P ÐÌòòHerschel€Pickens€Franks,€Ô_ÔP.Jóó.Ô_Ô,€delivered€the€opinion€of€the€court,€in€whichòò€Charles€D.€Susano,Ð Ø( ÐJr.,€J.óó,€andòò€Sharon€G.€Lee,€Jóó.,€joined.Ð Ä ÐÌÔ#†¼ »XXF¹„#ÔÔ‡XF¹X»¼ ÔMelinda€Meador€and€Erica€Taylor€Greene,€Knoxville,€Tennessee€and€Ð œì ÐThomas€Hickey,€of€Counsel,€Chattanooga,€Tennessee,€for€Appellant,€Hartford€Fire€InsuranceÐ ˆØ ÐCompany.Ð t Ä ÐÌRobert€L.€Widerkehr,€Jr.,€Chattanooga,€Tennessee,€for€Appellee.Ð L"œ! ÐÌÌà@66'ìàò òOPINIONó óÔ#†¼ »XXF¹U#ÔÔ‡XF¹X»¼ ԈР%` $ ÐòòóóÔ#†¼ »XXF¹î #ÔÔ‡XF¹X»¼ ÔÔ‡ X4ãXXXF¹Ôà0  àà0` (#(#àÐ ` (#` (# Ðà  àà ` àFred€Simmons€Trucking€Co.,€Inc.€(ð ðSimmonsðð),€brought€an€action€for€breach€ofÐ è&8"& Ðcontract€against€United€States€Fidelity€and€Guaranty€Company€(ð ðÔ_ÔUSFÔ_Ô&Gðð)€and€its€successor€inÐ Ô'$#' Ðinterest,€Hartford€Insurance€Group€(ð ðHartfordðð),€seeking€damages€for€breach€of€contract€and€punitiveÐ À($( Ðdamages.Ð ¬)ü$) ÐÌà  àà ` àAt€trial€undisputed€evidence€established€that€Ô_ÔUSFÔ_Ô&G€issued€an€assigned€risk€policyÐ „+Ô&+ Ðto€Simmons€covering€Simmonsðð€employees€for€workers€compensation€benefits,€and€that€CharlesÐ p,À', ÐMcGeorge,€an€employee€of€Simmons,€sustained€on€the€job€injuries,€and€was€initially€paid€workersÐ \-¬(-ý ÐÔ_Ôcompensation€benefits€under€the€State€of€Tennessee€workers€compensation€coverage.€€In€FebruaryÐ ° Ðof€1997,€Hartford€quit€paying€benefits€in€Tennessee,€and€McGeorge€hired€Kentucky€counsel€whoÐ œì Ðbrought€an€action€in€Kentucky€under€Kentuckyððs€workers€compensation€law.€€Defendants€refusedÐ ˆØ Ðto€defend€the€Kentucky€action€and€Simmons€hired€an€attorney€who€represented€the€employer€in€theÐ tÄ ÐKentucky€action,€which€resulted€in€workers€compensation€benefits€being€awarded€to€McGeorgeÐ `° Ðunder€the€Kentucky€statute,€which€were€being€paid€by€Simmons.Ð L œ ÐÌà  àà ` àFollowing€an€evidentiary€hearing,€the€Trial€Court€filed€a€Memorandum€OpinionÐ $ t Ðstating€that€the€punitive€damage€claim€had€been€bifurcated,€and€that€the€remaining€claims€were€forÐ  ` Ðbreach€of€contract€and€bad€faith.€€The€Court€found€that€McGeorge€was€an€employee€of€Simmons,Ð ü L  Ðwho€lived€in€Kentucky€and€was€injured€in€Kentucky.€€The€Court€found€that€Simmons€was€insuredÐ è 8  Ðthrough€USF&G,€and€that€Hartford€later€bought€the€risk.€€€The€Court€concluded€that€the€policyÐ Ô$  Ðpurporting€to€afford€coverage€in€Tennessee€only€was€ambiguous€and€construed€the€policy€against€theÐ À  Ðinsurance€company€which€had€drafted€the€policy.Ð ¬ü  ÐÌà  àà ` àThe€Court€found€that€Hartford€initially€paid€benefits€pursuant€to€the€Tennessee€ActÐ „Ô  Ðto€McGeorge,€until€his€physician€(Tutt)€opined€that€he€had€reached€maximum€medical€improvementÐ pÀ Ðin€February€of€1997.€€The€Court€found€that€Tutt€sent€two€updates€in€March€and€asked€for€a€secondÐ \¬ Ðopinion,€but€Hartford€took€this€to€mean€he€was€not€reversing€his€earlier€finding€of€MMI,€but€HartfordÐ H˜ Ðð ðignored€the€recommendation€of€the€treating€physician.ðð€Ð 4„ ÐÌà  àà ` àThe€Court€found€that€Simmons€had€paid€over€$250,000.00€in€medical€expenses€toÐ  \ Ðdate,€plus€attorneyððs€fees€and€permanent€benefits.€€Essentially,€the€Court€found€Hartford€breachedÐ øH Ðits€duty€under€the€contract€to€pay€benefits,€and€in€bad€faith€cut€off€payments,€and€she€awardedÐ ä4 Ðpunitive€damages.€€Compensatory€damages€in€the€amount€of€$240,694.90€were€awarded,€along€withÐ Ð  Ðpunitive€damages€in€the€sum€of€$250,000.00€against€defendant€Hartford.Ð ¼  ÐÌà  àà ` àThe€Trial€Court€noted€that€the€evidence€of€bad€faith€on€Hartfordððs€part€wasÐ ”ä Ðð ðegregiousðð,€and€that€there€was€an€effort€get€rid€of€the€claim,€and€then€conceal€that€fact.€€Ð €Ð ÐÌà  àà ` àHartford€raises€these€issues€on€appeal:Ð X ¨ Ðà  àà ` àò ò¹Ó  Óó óà0  àà0` (#(#à1.à0¸ ` (#` (#àDid€the€Trial€Court€err€in€holding€that€the€policy€was€ambiguous?Ð0"€ ¸ (#¸ (# ÐÌà0  àà0` (#(#à2.à0¸ ` (#` (#àDid€the€Trial€Court€err€in€allowing€evidence€of€Hartfordððs€termination€ofÐ $X" Ðbenefits€in€Tennessee,€when€this€was€not€pled€in€the€Complaint?Ðô$D #¸ (#¸ (# ÐÌà0  àà0` (#(#à3.à0¸ ` (#` (#àDid€the€Trial€Court€err€in€holding€that€Hartford€acted€in€bad€faith€inÐ Ì&"% Ðterminating€benefits€in€Tennessee?и'#&¸ (#¸ (# ÐÌà0  àà0` (#(#à4.à0¸ ` (#` (#àDid€the€Trial€Court€err€in€assessing€punitive€damages€against€Hartford,€andÐ )à$( Ðin€awarding€prospective€relief€to€Simmons€that€was€not€prayed€for€in€theÐ |*Ì%) ÐComplaint?Ðh+¸&*¸ (#¸ (# Їà0  àà0` (#(#à5.à0¸ ` (#` (#àDid€the€Trial€Court€deny€Hartford€a€fair€trial?ò òа¸ (#¸ (# ÐÓ  ÓÌÓ  Óà  àà ` àó óThe€Trial€Courtððs€findings€of€fact€are€accorded€a€presumption€of€correctness€in€thisÐ ˆØ ÐCourt,€unless€the€evidence€preponderates€against€the€finding.€€However,€questions€of€law€decidedÐ tÄ Ðby€the€Trial€Court€come€to€this€Court€without€a€presumption€of€correctness,€Tenn.€R.€App.€P.€13(d).€Ð `° ÐÌà  àà ` àAs€to€the€Trial€Courtððs€finding€that€the€policy€was€ambiguous,€Hartford€argues€thisÐ 8 ˆ Ðis€in€error,€and€the€policy€clearly€states€that€it€applies€only€to€Tennessee.€€The€policy,€in€part€one€andÐ $ t Ðon€its€declaration€page,€states€that€workers€compensation€coverage€is€afforded€for€the€state€listed€inÐ  ` Ð3A,€which€is€only€Tennessee.€€Part€three€of€the€policy,€which€extends€coverage€to€other€states,Ð ü L  Ðexpressly€provides€that€it€only€applies€if€the€insured€began€work€in€another€state€after€the€effectiveÐ è 8  Ðdate€of€the€policy,€or€if€the€insured€already€worked€there€and€notified€the€insurance€company€of€thatÐ Ô$  Ðfact€within€30€days€of€the€effective€date.€€Neither€of€these€events€occurred€in€this€case.Ð À  Ðà  àÌà  àà ` àSimmons€admitted€at€trial€that€he€had€deliveries€running€through€and€to€KentuckyÐ ˜è  Ðsince€1974.€€There€was€no€dispute€on€this€point.€€Thus,€Simmons€did€not€begin€working€in€KentuckyÐ „Ô  Ðafter€the€effective€date€of€this€policy,€and€there€was€also€no€contention€that€Simmons€ever€notifiedÐ pÀ ÐUSF&G€or€Hartford€that€Kentucky€needed€to€be€included€in€the€policy.€€As€such,€part€three€of€theÐ \¬ Ðpolicy€and€3C€on€the€declaration€page€never€came€into€play.€€The€policy€unambiguously€states€thatÐ H˜ Ðit€only€applies€to€Tennessee€unless€certain€conditions€were€met.€€The€Trial€Court€erred€in€finding€thatÐ 4„ Ðthe€policy€was€ambiguous.€€This€holding€was€not€the€only€basis€for€the€Courtððs€Judgment,€however,Ð  p Ðand€the€remaining€issues€must€be€addressed.Ð  \ ÐÌà  àà ` àHartford€asserts€that€it€was€error€for€the€Trial€Court€to€allow€evidence€regardingÐ ä4 ÐHartfordððs€handling€of€the€Tennessee€claim,€because€Simmons€failed€to€plead€this€issue.€€TheÐ Ð  ÐComplaint€filed€by€Simmons,€however,€states€that€McGeorge€was€paid€benefits€in€Tennessee€byÐ ¼  ÐHartford,€but€Hartford€later€denied€those€benefits,€which€resulted€in€McGeorge€consulting€anÐ ¨ø Ðattorney€and€filing€a€claim€in€Kentucky.€€€Ð ”ä Ðà8  àÐ Ð Ð  Ðà  àà ` àAs€the€Supreme€Court€has€recently€explained:Ð l¼ Ðà0  àÐ (#(# Ðà0  àà0` (#(#àHowever,€as€we€reaffirmed€in€òòWhiteóó,€"[a]€complaint€'need€not€contain€in€minuteÐ D!” Ðdetail€the€facts€that€give€rise€to€the€claim,'€so€long€as€the€complaint€does€'containÐ 0"€  Ðallegations€from€which€an€inference€may€fairly€be€drawn€that€evidence€on€theseÐ #l! Ðmaterial€points€will€be€introduced€at€trial.'€"Ð$X"` (#` (# ÐòòòòÌÓÓóóGivens€v.€Mullikin€ex€rel.€Estate€of€McElwaneyóó,€75€S.W.3d€383,€399€(Tenn.€2002).€€Ð à%0!$ ÐÌÓÓà  àà ` àAs€stated€in€Tenn.€R.€Civ.€P.€8,€a€complaint€shall€contain€ð ða€short€and€plain€statementÐ )à$( Ðof€the€claim€showing€that€the€pleader€is€entitled€to€reliefðð.€€The€Trial€Court€found€the€ComplaintÐ |*Ì%) Ðsufficiently€stated€a€cause€of€action€for€breach€of€contract€and€bad€faith€in€the€handling€of€theÐ h+¸&* ÐTennessee€claim.€€We€agree,€and€this€issue€is€without€merit.Ð ° ÐÌà  àà ` àThe€Trial€Court€awarded€Simmons€a€judgment€based€on€its€finding€that€HartfordÐ ˆØ Ðbreached€the€insurance€contract€and€acted€in€bad€faith.€€As€we€have€previously€recognized€inÐ tÄ ÐòòChandler€v.€Prudential€Ins.€Co.óó,€715€S.W.2d€615€(Tenn.€Ct.€App.€1986),€there€is€no€tort€of€bad€faith,Ð `° Ðbut€an€insured€can€seek€the€statutory€bad€faith€penalty€when€an€insurance€company€refuses€to€pay,Ð L œ Ðand€the€court€finds€that€the€ð ðrefusal€to€pay€the€loss€was€not€in€good€faith,€and€that€such€failure€to€payÐ 8 ˆ Ðinflicted€additional€expense,€loss,€or€injury€including€attorney€fees€upon€the€holder€of€the€policyðð.€Ð $ t ÐTenn.€Code€Ann.€ðð€56„7„105.€€Ð  ` ÐÌà  àà ` àThe€issue€thus€becomes€whether€Hartford€breached€its€duties€under€the€insuranceÐ è 8  Ðcontract,€such€that€damages€for€breach€of€contract€were€appropriate.׃×Ý ƒ#ÃÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×€€Ð Ô$  Ðà  àÌà  àà ` àHartfordððs€duties€under€the€contract€include€that€it€ð ðwill€pay€promptly€when€due€theÐ ¬ü  Ðbenefits€required€of€[Simmons]€by€the€workers€compensation€lawðð€of€Tennessee.€€There€is€no€disputeÐ ˜è  Ðthat€Hartford€paid€McGeorge€temporary€disability€payments€until€Dr.€Tutt€placed€him€at€MMI.€€AtÐ „Ô  Ðthis€point,€Hartford€ceased€paying€temporary€disability€benefits,€and€offered€to€settle€the€case€forÐ pÀ Ð$15,000.00,€but€it€did€not€establish€that€this€offer€was€ever€communicated€to€McGeorge,€and€noÐ \¬ Ðsettlement€was€reached€or€approved€pursuant€to€Tenn.€Code€Ann.€ðð€50„6„206.€€Ð H˜ Ðà  àÌà  àà ` àTenn.€Code€Ann.€ðð€50„6„234€provides€that€ð ðafter€temporary€disability€payments€haveÐ  p Ðcommenced,€when€the€injured€employee€reaches€maximum€medical€improvement,€a€permanentÐ  \ Ðimpairment€rating€is€given€and€the€compensability€of€the€injury€has€not€been€contested€by€theÐ øH Ðemployer,€then€payments€shall€continue€until€the€earlier€of€the€following€events:€the€injuredÐ ä4 Ðemployee€accepts€or€rejects€a€job€offered€by€the€employer€at€a€wage€equal€to€or€greater€than€theÐ Ð  Ðemployeeððs€pre„injury€wage€.€.€.;€the€parties€agree€to€waive€the€holding€of€a€benefit€reviewÐ ¼  Ðconference;€or€a€benefit€review€conference€is€held€and€the€report€is€filed€pursuant€to€ðð50„6„240.ðð€€€Ð ¨ø Ðà  àÌà  àà ` àThus,€Hartfordððs€argument€that€it€rightfully€terminated€benefits€because€Dr.€Tutt€saidÐ €Ð ÐMcGeorge€was€at€MMI€does€not€comport€with€the€statute,€since€there€was€no€proof€that€any€of€theseÐ l¼ Ðrequirements€contained€in€the€statute€were€met€such€that€temporary€disability€benefits€could€beÐ X ¨ Ðterminated.€€Moreover,€as€the€Trial€Court€found,€Hartford€had€reason€to€suspect€that€Dr.€Tutt€mightÐ D!” Ðwell€be€rescinding€his€finding€of€MMI,€since€he€asked€for€a€second€opinion€and€reinstatement€ofÐ 0"€  Ðbenefits,€but€they€chose€to€ð ðlet€it€beðð€and€not€to€ask€Dr.€Tutt€if€his€findings€had€changed.€€TheÐ #l! Ðevidence€does€not€preponderate€against€the€Trial€Courtððs€finding€that€Hartford€breached€its€contractÐ $X" Ðwith€Simmons€and€acted€in€bad€faith.€€The€remaining€issue€is€the€type€and€amount€of€damages€theÐ ô$D # Ðplaintiff€is€entitled€to€recover€from€Hartford.Ð à%0!$ Їà  àà ` àà ¸ àAs€this€Court€has€previously€recognized:Ð ° Ðà0  à€Ð (#(# Ðà0  àà0` (#(#àUnder€the€general€law,€remedies€available€for€breach€of€contract€are€damages,Ð ˆØ Ðspecific€performance,€and€restitution.€€Corbin€on€Contracts€(1964€Ed.),€s€1102.ÐtÄ` (#` (# ÐÌà0  àà0` (#(#àThe€purpose€of€the€remedy€of€damages€is€to€put€the€party€in€as€good€a€position€as€heÐ L œ Ðwould€have€been€had€the€contract€been€completed,€and€accordingly€a€plaintiff€mayÐ 8 ˆ Ðrecover€for€the€promised€performance€as€well€as€consequential€damages.€€Corbin,€sÐ $ t Ð1102.Ð `` (#` (# ÐÌòòChambliss,€Bahner€and€Crawford€v.€Lutheróó,€531€S.W.2d€108,€110€(Tenn.€Ct.€App.€1975).€€In€thisÐ è 8  Ðcase,€the€proof€established€that€Hartford€breached€its€contract€with€Simmons€to€pay€benefits€toÐ Ô$  ÐMcGeorge,€as€discussed€above,€and€Simmons€is€entitled€to€be€awarded€the€amount€that€HartfordÐ À  Ðwould€have€had€to€pay€McGeorge€under€Tennessee€law€which€the€partiesðð€contract€provided,€sinceÐ ¬ü  ÐSimmons€has€now€been€ordered€to€pay€McGeorgeððs€benefits.€€McGeorge€was€found€to€beÐ ˜è  Ðpermanently€and€totally€disabled€in€the€Kentucky€action.׃×Ý ƒ#ÃÝòòÚ  Ú2Ú  ÚóóÝ  Ý×  ×€€Tenn.€Code€Ann.€ðð€50„6„207€provides:€Ð „Ô  Ðà8  àÐ Ð Ð  Ðà0  àà0` (#(#à(4)(A)(I)€PERMANENT€TOTAL€DISABILITY.€€For€permanent€total€disability€asÐ \¬ Ðdefined€in€subdivision€(4)(B),€sixty-six€and€two-thirds€percent€(66€2/3%)€of€theÐ H˜ Ðwages€received€at€the€time€of€the€injury,€subject€to€the€maximum€weekly€benefit€andÐ 4„ Ðminimum€weekly€benefit;€€provided,€that€if€the€employee's€average€weekly€wages€areÐ  p Ðequal€to€or€greater€than€the€minimum€weekly€benefit,€the€employee€shall€receive€notÐ  \ Ðless€than€the€minimum€weekly€benefit;€€provided€further,€that€if€the€employee'sÐ øH Ðaverage€weekly€wages€are€less€than€the€minimum€weekly€benefit,€the€employee€shallÐ ä4 Ðreceive€the€full€amount€of€the€employee's€average€weekly€wages,€but€in€no€event€shallÐ Ð  Ðthe€compensation€paid€be€less€than€the€minimum€weekly€benefit.€€This€compensationÐ ¼  Ðshall€be€paid€during€the€period€of€the€permanent€total€disability€until€the€employeeÐ ¨ø Ðis,€by€age,€eligible€for€full€benefits€in€the€Old€Age€Insurance€Benefit€Program€underÐ ”ä Ðthe€Social€Security€Act;€€provided,€that€with€respect€to€disabilities€resulting€fromÐ €Ð Ðinjuries€which€occur€after€60€years€of€age,€regardless€of€the€age€of€the€employee,Ð l¼ Ðpermanent€total€disability€benefits€are€payable€for€a€period€of€two€hundred€sixty€(260)Ð X ¨ Ðweeks.€€Such€compensation€payments€shall€be€reduced€by€the€amount€of€any€old€ageÐ D!” Ðinsurance€benefit€payments€attributable€to€employer€contributions€which€theÐ 0"€  Ðemployee€may€receive€under€title€II€of€chapter€7,€title€42€of€the€Social€Security€Act,Ð #l! Ð42€U.S.C.€ðð€401€et€seq.,€as€amended.Ð$X"` (#` (# Ðà  à€à0 ` àа` (#` (# Ðà  àà ` àThe€issue€of€the€amount€of€compensatory€damages€is€remanded€to€the€Trial€Court€forÐ œì Ðdetermination€of€the€amount€that€Hartford€would€have€been€liable€for€under€the€Tennessee€workersÐ ˆØ Ðcompensation€statute,€which€is€the€proper€amount€to€award€to€Simmons€based€on€Hartfordððs€breachÐ tÄ Ðof€the€Tennessee€policy.€€The€Trial€Court€is€instructed€to€utilize€the€findings€of€fact€as€to€the€type€andÐ `° Ðextent€of€workers€compensation€benefits€as€found€by€the€Kentucky€Court€and€utilize€these€findingsÐ L œ Ðto€establish€the€amount€of€benefits€to€reimburse€McGeorge€under€the€Tennessee€policy.€€In€otherÐ 8 ˆ Ðwords,€the€Trial€Court€is€directed€to€enter€a€Judgment€to€the€extent€of€coverage€under€the€TennesseeÐ $ t Ðpolicy,€as€factually€determined€by€the€Kentucky€Court.Ð  ` ÐÌà  àà ` àAs€previously€stated,€in€Tennessee€there€is€no€tort€action€for€bad€faith,€but€Tenn.€CodeÐ è 8  ÐAnn.€ðð€56„7„105€provides€that€the€insurance€company€ð ðshall€be€liableðð€to€pay€ð ða€sum€not€exceedingÐ Ô$  Ðtwenty-five€percent€(25%)€on€the€liability€for€the€lossðð€if€a€bad€faith€failure€to€pay€is€proven.€Ð À  ÐPunitive€damages€are€inappropriate׃×Ý ƒ#ÃÝòòÚ  Ú3Ú  ÚóóÝ  Ý×  ×€in€a€case€such€as€this€because€the€statutory€penalty€is€applicable,Ð ¬ü  Ðand€also€because€such€damages€are€not€generally€awarded€in€cases€of€breach€of€contract.€€SeeÐ ˜è  ÐòòChandler€v.€Prudential€Ins.€Co.óó,€715€S.W.2d€615€(Tenn.€Ct.€App.€1986);€òòB.€F.€Myers€&€Son€ofÐ „Ô  ÐGoodlettsville,€Inc.€v.€Evansóó,€612€S.W.2d€912€(Tenn.€Ct.€App.€1980).Ð pÀ Ðà  àÌà  àà ` àBad€faith€has€been€defined€as€the€failure€of€the€insurance€company€to€deal€in€goodÐ H˜ Ðfaith,€and€to€be€diligent€in€its€investigation,€negotiation,€defense,€and€settlement€of€claims€broughtÐ 4„ Ðagainst€its€insured.€€òòState€Auto.€Ins.€Co.€of€Columbus€v.€Rowlandóó,€427€S.W.2d€30€(Tenn.€1968).€Ð  p ÐThus,€ð ðthe€insurer€cannot€escape€liability€by€considering€only€what€appears€to€be€for€its€own€interest.€Ð  \ ÐIt€must€consider€also€the€impact€of€its€decision€upon€its€insured€and€deal€fairly€and€in€good€faith.€Ð øH ÐThis€duty€arises€not€so€much€under€the€terms€of€the€contract€but€is€said€to€arise€because€of€theÐ ä4 Ðcontract€and€to€flow€from€it.ðð€€òòId.óó€at€34.€€The€question€of€the€insurerððs€good€faith€is€for€the€fact€finder.€Ð Ð  ÐòòId.óóÐ ¼  Ðà  à€Ð ¨ø Ðà  àà ` àThe€Trial€Courtððs€finding€of€bad€faith€was€proper,€and€on€remand,€the€Trial€Court€willÐ ”ä Ðdetermine€the€proper€penalty€under€Tenn.€Code€Ann.€ðð€56„7„105.€€Ð €Ð ÐÌà  àà ` àFor€the€foregoing€reasons,€we€reverse€the€Trial€Courtððs€finding€that€the€policy€wasÐ X ¨ Ðambiguous,€vacate€the€award€of€damages,€and€remand€to€establish€damages€in€accordance€with€thisÐ D!” ÐOpinion.€€The€cost€of€the€appeal€is€assessed€to€Hartford€Fire€Insurance€Company.Ð 0"€  ÐÌÔ#†XF¹XX X4ãk #ÔÔ#†¼ »XXF¹L #ÔÔ‡XF¹X»¼ ÔÌà  àà ` àà ¸ àà  àà h àà À àà  à______________________________Ð ô$D # Ðà  àà ` àà ¸ àà  àà h àà À àà  àòòHerschel€Pickens€Franks,€P.J.Ð à%0!$ Ðóó