ÿWPC3  m†HDÕ³rs¾H,\Ga°P‡p›×òÔxäs/7a=_ -yŠÂLž “}9t¶ö¦ )Kò×;°êNsâî$ì•Ñ`ŠüÌQ@îéÂ2)!C†\¤86[Ù@ð€÷Ù­!'ñ`}²бwövP}›üãàã)ºIý~Øir´èV‰ŽƒÛ“T%4æî˜60Mä8Ù:Æ|YYˆ„èì=÷5Eÿ¢¨ÃBŽ˜Šùô×èô14BVÙØŒ°‹¼þÌ„ ×,ëÔ AÞÕ²º¿þ™ÿS†¹TÞŠEYOê:°ûÎ|=’÷òNšn8Þɱ¯âþÜi ÉzxËÄùÁ˜øM”Ȭ*ßa|þ¡ HûÌÀ‰-ŽÈ  Ãj¿¯dÜŽ}rú~Ýg»S·¨?24L°Êb;(§1 qRoÍgƒAB¸7äaÏnÉ.œézûÂêdQhvíYwwõ9[ð 6ïOë¸ù…ñä*¶â™‡áû’¯…Y µ²•p»°r;5‰ nœçIWLÀ3TPðÕñ¢ƒÊ@Cñ´ n7ãBÿ¬Ý"ÜMç3´9ø?s+÷(Êè½|%tŠ^~1°ÿÇ.õ„%ŽÅ9à¾Ùѯá ûzžê½(3óï]º3ÑÌíVì äžØydqPdÝd…b#Á\ % ^ # 0ˆ/ U#N· w 4 z Ò— i x mz ‘ ÆS Æ Æß Æ¥ 0DkN¯¸±;iE¤¦âªŒUN¤ 1uò 1‡g 72î                b(((((((((((((((((((((((((((((((((((( 0ë0000 B 0¤8 D3Ü D- 0K<< AS‡ÆÚ 0¤  0DD A«ˆ˜HP LaserJet 4050 Series PCL 6,ü,,,,,ü0» “›+â (`£ª$¡¡Ñ€.ÑÑ8€½­»»d»»d8ÑÑ ý ÑÓ  Ó(í€"  Z6Times New Roman Regular]if+„“¤ª£ ˜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 ¸Ý ƒR÷z$ÝÓ  Óà  àòòÚ  Ú2Ú  ÚóóÔ€ôàõò»»ÔÝ  ÝÔ_ÔT.C.A.€ðð€47„18„101€òòet€seq.óó€(1995€and€Supp.€2000).Level 1Level 2Level 3Level 4Level 5‚Level 1Level 2Level 3Level 4Level 5„Level 1Level 2Level 3Level 4Level 5…Level 1Level 2Level 3Level 4Level 5(#Ã$òòÚ  Ú0Ú  Úóó ®Ý ƒR÷z$ÝÓ  Óà  àòòÚ  Ú4Ú  ÚóóÔ€ôàõò»»ÔÝ  ÝÔ_ÔThe€evidence€reflects€that€the€òòrepairedóó€basement€wall€began€to€bulge€inward€shortly€after€its€construction.€€TheÐ ° Ðjury€found€that€the€policy€did€not€provide€coverage€for€any€loss€claimed€in€connection€with€the€second€wall.€€This€findingÐ tÄ Ðhas€not€been€appealed. 1Ý ƒR÷z$ÝÓ  Óà  àòòÚ  Ú5Ú  ÚóóÔ€ôàõò»»ÔÝ  ÝÔ_ÔThe€trial€court€also€suggested€a€Ô_ÔremittiturÔ_Ô€of€the€compensatory€damages€awarded€against€the€builder€toÐ ° Ð$110,000,€the€amount€requested€by€the€plaintiff€in€heròò€ad€Ô_ÔdamnumÔ_Ôóó.€€Upon€the€plaintiffððs€election,€she€was€also€awardedÐ tÄ Ð$200,000€in€punitive€damages€in€lieu€of€$4,500€in€treble€damages€under€the€Consumer€Protection€Act.€ úÝ ƒR÷z$ÝÓ  Óà  àòòÚ  Ú1Ú  ÚóóÔ€ôàõò»»ÔÝ  ÝÔ_ÔSolomon€also€sued€the€builder€of€the€residence,€Brad€Ô_ÔHagerÔ_Ô€and€Ô_ÔTrevieÔ_Ô€Richard€Ô_ÔOneyÔ_Ô,€doing€business€as€Ô_ÔHagerÔ_ÔÐ ° ÐConstruction,€for€breach€of€contract€and€gross€negligence.€€The€jury€found€that€the€construction€had€not€been€performedÐ tÄ Ðin€a€workmanlike€manner€and€awarded€Solomon€a€judgment€against€the€builder€for€compensatory€and€punitive€damages,Ð 8ˆ ÐConsumer€Protection€Act€damages,€attorneyððs€fees,€and€discretionary€costs.€€The€builder€did€not€appeal. ØÝ ƒR÷z$ÝÓ  Óà  àòòÚ  Ú3Ú  ÚóóÔ€ôàõò»»ÔÝ  ÝÔ_ÔThe€parties€agree€that€the€residence€was€still€under€construction€at€the€time€of€the€loss. Ý ƒR÷z$ÝÓ  Óà  àòòÚ  Ú6Ú  ÚóóÔ€ôàõò»»ÔÝ  ÝÔ_ÔTenn.€R.€Civ.€P.€15.03€provides,€in€pertinent€part,€as€follows:Ð ° ÐÌà8  àà8` Ð Ð àWhenever€the€claim€or€defense€asserted€in€amended€pleadings€arose€out€of€theÐ 8ˆ Ðconduct,€transaction,€or€occurrence€set€forth€or€attempted€to€be€set€forth€in€theÐ üL Ðoriginal€pleading,€the€amendment€relates€back€tho€the€date€of€the€original€pleading.(ÖÃ9 Z‹6Times New Roman Regular3#37=CIQYag­­1.a.i.(1)(a)(i)1)a)(¥hCEKQW]cioAutoList81.1.1.1.1.1.1.1.i) - ù-(|G2÷z$¤¤Ý ƒ£ª!ÝÑ€.ÑÑ8€V]»»dd8ÑÑ ý ÑÓ  ÓÝ  Ýà  àòòÚ  Ú0Ú  ÚóóÔ€ôàõò»»Ô d(|3G$££Ý ƒ£ª!ÝÑ€.ÑÑ8€V]»»dd8ÑÑ ý ÑÓ  ÓÝ  ÝVVVV'ÿÿdxd)!ÈÈÈÈdxdx( ±þ$’’ò òFigure€Ú  Ú1Ú  Úó ó^_X`YEþÿ<<CÿÿƒLevel 1Level 2Level 3Level 4Level 5(|3G$¢¢Ý ƒ£ª!ÝÑ€.ÑÑ8€V]»»dd8ÑÑ ý ÑÓ  ÓÝ  Ý($$””ò òÚ  Ú1Ú  Úó óX[Z&OLE 2.0 Box <=8ÿÿÿÿÿÿÿÿÿÿCÿÿ HKKKKÝ ƒ£ª!ÝÑ€.ÑÑ8€V]»»ddÈ8ÑÑ ý ÑÓ  ÓÝ  ÝÔ_ÔÑ  ÑÔ€¼V]»»»ÔÑ8€!XXdì»»d8ÑÑ  ÑÓÓÓÓà@ü ü ìàÔ‡î^lV]ÔIN€THE€COURT€OF€APPEALS€OF€TENNESSEEˆÐ ° Ðà@WW$ìàAT€KNOXVILLEÔ#†¼V]»îî^l0#ԈРÖ& ÐÓ  ÓJuly€10,€2001€SessionÐ üL ÐÔ‡X!X»¼V]ÔÌò òÔ#†¼V]»XX!#ÔYOLANDA€SOLOMONòòóó€v.€BRAD€Ô_ÔHAGERÔ_Ô,€òòet€alóó.Ô‡X!X»¼V]Ôó óÐ úJ ÐÌÓ ÓÓÓà@@Î Î ìàò òAppeal€from€the€Chancery€Court€for€Ô_ÔHamblenÔ_Ô€CountyÐ ú J Ðà@@­ ­ ìàNo.€97„248€€€€€€Thomas€R.€Ô_ÔFriersonÔ_Ô,€II,€ChancellorÐ æ 6 ÐÌÌà@@ìì*ìàßA€V) °°` d€÷E<©` AßÐ ªú  ÐÌà@@¶¶ìàNo.€E2000„02586„Ô_ÔCOAÔ_Ô„R3„CV€Ð ¥õ  ÐFiled€December€27,€2001Ð ‘á  ÐÓàÓÌÓûÓßA€V) °°` dE<h` AßÐ i¹  Ðó óÌÓÓThis€lawsuit€finds€its€genesis€in€the€construction€of€a€residence.€€The€plaintiff,€Yolanda€Solomon,Ð _¯ Ðfiled€suit€against€Allstate€Insurance€Company׃×Ý ƒ#ÃÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×,€allegingÔ#†¼V]»XX!­#ÔÔ‡X!X»¼V]Ô€breach€of€contract€and€seeking€damages€andÐ K› Ða€bad€faith€penalty€for€Allstateððs€failure€to€pay€her€claim€under€a€builderððs€risk€policy€covering€herÐ 7‡ Ðunder„construction€residence.€€Solomon€later€amended€her€complaint€to€seek€additional€damagesÐ #s Ðunder€the€Tennessee€Consumer€Protection€Act.׃  ×Ý ƒ#ÃÝòòÚ  Ú2Ú  ÚóóÝ  Ý×  ×€€By€way€of€a€special€verdict,€the€jury€found€(1)€thatÐ _ Ðthe€insurance€policy€provided€coverage€for€Solomonððs€loss;€(2)€that€Allstate€had€acted€in€bad€faithÐ ûK Ðin€denying€her€claim;€and€(3)€that€Allstate€had€violated€the€Consumer€Protection€Act.€€As€modifiedÐ ç7 Ðby€the€trial€court,€Allstate€was€ordered€to€pay€$101,098,€the€full€amount€of€the€plaintiffððs€coverageÐ Ó# Ðless€the€deductible;€a€25%€bad€faith€penalty;€$1,500€under€the€Consumer€Protection€Act;€attorneyððsÐ ¿ Ðfees;€discretionary€costs;€and€prejudgment€interest.€€Allstate€appeals,€challenging,€among€otherÐ «û Ðthings,€the€juryððs€finding€of€coverage,€the€assessment€of€the€bad€faith€penalty,€evidentiary€and€juryÐ —ç Ðinstruction€rulings,€and€the€amount€of€damages.€€We€affirm.Ð ƒÓ ÐÌò òÓ  ÓTenn.€R.€App.€P.€3€Appeal€as€of€Right;€Judgment€of€the€Chancery€CourtÐ [ «  ÐAffirmed;€Case€Remandedó óÐ G!—! ÐÓü ÓÌòòÔ#†¼V]»àX!±#ÔÔ‡X!X.¼V]ÔCharles€D.€Susano,€Jr.,€J.óó,€delivered€the€opinion€of€the€court,€in€which€òòHouston€M.€Ô_ÔGoddardÔ_Ô,Ð #o# ÐÔ_ÔP.J.Ô_Ô,óó€and€òòHerschel€P.€Franks,€J.óó,€joined.Ð  $[$ ÐÌChristopher€D.€Ô_ÔHeagertyÔ_Ô,€Knoxville,€Tennessee,€for€the€appellant,€Allstate€Insurance€Company.Ð ã%3!& ÐÌJames€M.€Davis,€Ô_ÔMorristownÔ_Ô,€Tennessee,€for€the€appellee,€Yolanda€Solomon.Ð »' #(ý Їò òÓ  ÓOPINIONó óÔ#†¼V]»XX!È #ÔÔ‡X!X»¼V]ÔÐ ° ÐÌI.€€òòFactsóó€€Ð ˆØ ÐÓÿÓà  àà ` àà ¸ àà  àà h àÌà  àIn€November,€1996,€Solomon€entered€into€a€verbal€contract€with€Brad€Ô_ÔHagerÔ_Ô€and€Ô_ÔTrevieÔ_ÔÐ `° ÐRichard€Ô_ÔOneyÔ_Ô,€doing€business€as€Ô_ÔHagerÔ_Ô€Construction,€to€build€a€house€for€a€contract€price€ofÐ L œ Ð$55,000.€€On€December€16,€1996,€Solomon€obtained€a€builderððs€risk€policy€from€the€defendant,Ð 8 ˆ ÐAllstate€Insurance€Company.€€Solomon€testified€that€Clarence€Thompson,€the€Allstate€agent€whoÐ $ t Ðsold€her€the€policy,€advised€her€(1)€that€the€policy€was€ð ðto€protect€meðð;€and€(2)€that€ð ðif€I€have€anyÐ  ` Ðcomplications€with€the€structure€while€itððs€under€construction,€then€the€policy€would€pay€for€it€andÐ ü L  ÐI€wouldnððt€have€to€take€any€more€money€out€of€my€pocket.ðð€€The€limit€of€coverage€under€the€policyÐ è 8  Ðwas€$101,598.€€There€was€a€deductible€of€$500.Ð Ô$  ÐÌà  àWhen€Hager€Construction€began€excavating€for€the€houseððs€foundation,€it€discovered€thatÐ ¬ü  Ðthe€ground€was€full€of€rock€and€would€require€blasting€before€work€on€the€house€could€proceed.€€ItÐ ˜è  Ðdynamited€the€site,€but€the€resulting€hole€was€larger€than€expected.€€The€company€gave€Solomon€theÐ „Ô  Ðoption€of€building€a€basement€for€an€additional€$10,000.€€Solomon€agreed,€and€the€constructionÐ pÀ Ðproceeded.Ð \¬ ÐÌà  àOn€February€21,€1997,€following€several€days€of€apparently€heavy€rains,€the€front€wall€of€theÐ 4„ Ðbasement€fell.€€The€plaintiff€testified€that€when€she€arrived€on€the€construction€site׃×Ý ƒ#ÃÝòòÚ  Ú3Ú  ÚóóÝ  Ý×  ×,€she€saw€that€theÐ  p Ðroof€was€sagging€and€that€the€house€was€bowed€in€the€middle.€€She€immediately€called€Thompson,Ð  \ Ðwho€told€her,€ð ðWell,€Iððm€sorry,€but€it€sounds€like€it€has€been€a€flood,€and€Allstate€does€not€coverÐ øH Ðfloods.ðð€€Unsatisfied€with€this€response,€Solomon€called€Thompson€again€the€next€day€and€asked€himÐ ä4 Ðto€come€and€look€at€the€house.€€She€testified€as€follows:Ð Ð  ÐÌà8  àà8` Ð Ð àI€called€Mr.€[Brad]€Ô_ÔHagerÔ_Ô€and€asked€him€if€he€would€come€and€beÐ ¨ø Ðthere€with€me.€€He€did€come.€Ð”ä` x` x ÐÌà8  àà8` Ð Ð àThe€three€of€us€discussed€the€collapse€of€the€wall,€and€I€asked€Mr.Ð l¼ ÐThompson€if€he€ð!ð€he€came€dressed€in€a€suit,€and€I€asked€him€if€he€hadÐ X ¨ Ðbrought€boots€so€he€could€go€and€look€at€the€house.ÐD!”` x` x ÐÌà8  àà8` Ð Ð àHe€said€he€didnððt€need€to€look€at€the€house,€he€could€see€what€heÐ #l! Ðneeded€to€see€from€the€road.€€€He€stood€in€the€road€and€looked€at€myÐ $X" Ðhouse€and€said,€ð ðAll€three€of€us€need€to€make€an€agreement€that€itÐ ô$D # Ðwas€a€flood€that€caused€the€damage,€because€Allstate€is€not€going€toÐ à%0!$ Ðpay€this€claim.ððÐÌ&"%` x` x Ðâ âÐ ¸'#& ÐSolomon€asked€Thompson€whether€he€had€brought€a€camera€in€order€to€document€the€damage,€butÐ ° ÐThompson€told€her€ð ðthere€was€no€need€to€do€that.ðð€€Nevertheless,€Solomon€and€Hager€tookÐ œì Ðphotographs€of€the€house.€€Thereafter,€repair€work€and€cleanup€began€on€the€site.€Ð ˆØ Ðâ âÌà  àSolomon€called€the€Allstate€claims€department€and€advised€it€that€she€was€making€a€claimÐ `° Ðfor€the€loss.€€A€few€days€later,€Mike€Smith,€an€Allstate€claims€adjuster,€contacted€Solomon€and€madeÐ L œ Ðarrangements€to€visit€the€site,€along€with€an€engineer,€to€survey€the€damage.€€Eleven€days€after€theÐ 8 ˆ Ðfailure€of€the€wall,€Smith€visited€the€site€alone.€€By€that€time,€the€new€basement€wall€was€nearÐ $ t Ðcompletion€and€the€debris€had€been€cleared.€€Smith€obtained€the€photographs€taken€by€Solomon€andÐ  ` ÐÔ_ÔHagerÔ_Ô€and€advised€that€he€would€consult€with€an€engineer€in€order€to€determine€the€cause€of€the€fallÐ ü L  Ðof€the€basement€wall.€€After€a€week€had€passed€without€any€word€from€Smith,€Solomon€attemptedÐ è 8  Ðto€contact€him.€€After€several€days,€she€finally€reached€him,€and€he€advised€her€ð ðthat€the€engineerÐ Ô$  Ðsaid€that€the€wall€failed€due€to€electrostatic€pressure€against€that€wall€and€that€Allstate€wouldnððt€payÐ À  Ðfor€it.ðð€€When€she€asked€Thompson€what€electrostatic€pressure€was,€he€said€he€did€not€know.€Ð ¬ü  ÐÌà  àFollowing€her€conversation€with€Smith,€Solomon€again€contacted€Thompson€regardingÐ „Ô  Ðcoverage.€€Solomon€insisted€that€the€loss€was€covered€under€the€policy.€€Thompson€told€her€that€heÐ pÀ Ðhad€contacted€the€Allstate€home€office€and€had€been€advised€that€ð ðtheyððre€not€going€to€pay.ðð€€OnÐ \¬ ÐJune€25,€1997,€Solomon€went€to€Thompsonððs€office.€€During€the€meeting€that€followed,€ThompsonÐ H˜ Ðcalled€Smith,€the€claims€adjuster€who€had€visited€the€site€some€three€months€earlier.€€Over€theÐ 4„ Ðtelephone,€Smith€told€Solomon,€ð ðI€am€formally€telling€you€that€I€do€ð!ð€that€we€are€not€going€to€payÐ  p Ðyour€policy.ððÐ  \ ÐÌà  àOn€August€8,€1997,€Solomon€filed€the€instant€action€against€Allstate€and€the€builder.€€TheÐ ä4 Ðcomplaint€seeks€$110,000€in€compensatory€damages,€$110,000€in€exemplary€damages€for€grossÐ Ð  Ðnegligence,€a€25%€penalty€for€Allstateððs€bad€faith€in€denying€her€claim,€and€general€relief.€€OnÐ ¼  ÐDecember€6,€1999,€Solomon€filed€a€motion€seeking€to€amend€her€complaint€to€allege€that€theÐ ¨ø Ðdefendants€had€violated€the€Consumer€Protection€Act.€€An€order€allowing€the€amendment€wasÐ ”ä Ðentered€on€February€9,€2000,€the€day€the€jury€was€impaneled€and€the€trial€startedÔ_Ô.Ô_ÔÐ €Ð ÐÌà  àAt€trial,€Solomon€presented€the€testimony€of€two€experts€to€support€her€theory€that€her€lossÐ X ¨ Ðwas€caused€by€a€ð ðcollapseðð€and€was€covered€under€the€policy.€€Max€Cook,€an€engineer,€testified€thatÐ D!” Ðthe€basement€wall€had€been€built€using€a€defective€method€of€construction.Ô#†¼V]»XX!8#ÔÔ‡X!X»¼V]Ô€€He€opined€that€the€wallÐ 0"€  Ðhad€not€been€built€to€withstand€the€ð ðnormal€lateral€earth€pressureðð€of€nine€feet€of€backfill€ð!ð€theÐ #l! Ðamount€of€backfill€that€had€been€placed€against€it€ð!ð€and€that,€given€this€amount€of€backfill,€the€wallÐ $X" Ðshould€have€been€constructed€using€12„inch€block,€reinforced€with€concrete€and€steel€rebar.€€HeÐ ô$D # Ðopined€that€if€the€wall€had€been€constructed€in€this€manner,€it€would€not€have€fallen.Ð à%0!$ ÐÌà  àCook€testified€that€the€collapse€of€the€wall€had€ð ðseverely€damaged€the€whole€house€structure,Ð ¸'#& Ðboth€cosmetic[ally]€and€structurally.ðð€€He€noted€that€the€truss€plates€in€the€floor€joists€had€beenÐ ¤(ô#' Ðseverely€stressed€and€weakened,€resulting€in€a€bouncy€floor.€€The€failure€of€the€wall€also€had€causedÐ )à$( Ðnumerous€cracks€in€the€drywall€throughout€the€house€and€had€caused€the€exterior€siding€to€buckle.€Ð |*Ì%) ÐCook€testified€that€the€house€Ð h+¸&* Їà8  àà8` Ð Ð àcould€be€fixed,€but€it€would€probably€cost€more€to€fix€it€than€to€tearÐ ° Ðit€down€and€start€over.€€I€donððt€see€a€practical€way€to€fix€theseÐ œì Ðproblems,€because€thereððs€just€so€much€damage€that€it€would€be€soÐ ˆØ Ðdifficult€to€analyze€the€total€scope€of€the€damage€there.ÐtÄ` x` x ÐÌà8  àà8` Ð Ð àEvery€joint€connection,€every€truss€connection,€every€nail€connectionÐ L œ Ðthroughout€the€house€would€have€to€be€checked,€and€thatððs€costÐ 8 ˆ Ðprohibitive€to€do€that.€Ð$ t` x` x ÐÌà  àDon€Ô_ÔKimbroughÔ_Ô,€a€builder€and€general€contractor,€was€also€a€witness€for€Solomon.€€HeÐ ü L  Ðagreed€that€the€failure€of€the€wall€was€caused€by€the€failure€to€construct€the€wall€with€12„inch€blockÐ è 8  Ðreinforced€with€steel€and€concrete€rebar.€€Like€Cook,€Kimbrough€testified€that€it€would€cost€moreÐ Ô$  Ðto€repair€the€house€than€to€rebuild€it.€€He€opined€that€ð ðto€build€it€right,€it€would€probably€run€aboutÐ À  Ðone€hundred,€one€hundred€forty€thousand€dollars.ðð€€€Ð ¬ü  Ðà  àÌà  àAllstate€defended€on€the€theory€that€the€plaintiffððs€loss€was€not€covered€because,€accordingÐ „Ô  Ðto€Allstate,€the€wall€fell€as€a€result€of€several€factors€that€were€excluded€under€the€policy.€€AllstateÐ pÀ Ðpresented€the€testimony€of€Jerry€Lambert,€an€engineer,€who€testified€that€the€failure€of€the€basementÐ \¬ Ðwall€was€caused€by€ð ðdirt€[that]€had€been€piled€up€above€[it]€and€slid€down.ðð€€He€acknowledged,Ð H˜ Ðhowever,€that€the€use€of€8„inch€block€without€reinforcements€is€an€inadequate€design€for€a€wall€thatÐ 4„ Ðis€required€to€support€nine€feet€of€backfill.€à À àÐ  p ÐÌà  àAt€the€conclusion€of€all€the€proof,€Solomon€and€Allstate€both€moved€for€directed€verdicts,Ð øH Ðwhich€motions€were€denied.€€Thereafter,€the€case€was€submitted€to€the€jury.€€By€way€of€a€specialÐ ä4 Ðverdict,€the€jury€found€that€the€builder€breached€its€contract€with€Solomon€by€failing€to€perform€theÐ Ð  Ðconstruction€in€a€workmanlike€manner€and€that€it€had€committed€unfair€or€deceptive€acts€in€violationÐ ¼  Ðof€the€Consumer€Protection€Act.€€As€to€the€builder,€the€jury€awarded€Solomon€$115,000€inÐ ¨ø Ðcompensatory€damages,€plus€either€$150,000€in€damages€under€the€Consumer€Protection€Act€orÐ ”ä Ð$200,000€in€punitive€damages,€as€well€as€prejudgment€interest.Ð €Ð ÐÌà  àAs€to€Allstate,€the€jury€was€asked€the€following:€€ð ðWith€reference€to€construction€of€the€first׃×Ý ƒ#ÃÝòòÚ  Ú4Ú  ÚóóÝ  Ý×  ×Ð X ¨ Ðbasement€wall,€does€the€applicable€policy€of€insurance€by€Defendant€Allstate€provide€coverage€forÐ D!” ÐPlaintiffððs€claimed€losses?ðð€€The€jury€responded€in€the€affirmative€and€found€that€Allstate€wasÐ 0"€  Ðresponsible€for€$117,598€in€damages.€€The€jury€further€found€that€Allstate€had€failed€to€act€in€goodÐ #l! Ðfaith€when€it€denied€Solomonððs€claim€and€that€Allstateððs€bad€faith€resulted€in€additional€expense,Ð $X" Ðloss€or€injury€to€Solomon;€accordingly,€it€awarded€Solomon€a€25%€bad€faith€penalty.€€The€juryÐ ô$D # Ðfurther€found€that€Allstate€had€violated€the€Consumer€Protection€Act€and€awarded€SolomonÐ à%0!$ Ð$200,000€in€damages€under€the€Act.€€The€jury€also€awarded€Solomon€prejudgment€interest€againstÐ Ì&"% ÐAllstate.Ð ¸'#& Їà  àFollowing€the€juryððs€verdict,€Solomon€filed€a€motion€seeking€an€additional€recovery€underÐ ° Ðthe€Consumer€Protection€Act,€including€treble€damages,€attorneyððs€fees,€and€discretionary€costs.€€InÐ œì Ða€supplemental€judgment€entered€August€11,€2000,€the€trial€court€found€that€Solomon€was€entitledÐ ˆØ Ðto€treble€damages€of€$4,500€against€the€builder€for€what€the€court€found€to€be€its€willful€and€knowingÐ tÄ Ðviolation€of€the€Consumer€Protection€Act.€€The€trial€court€determined,€however,€that€Solomon€hadÐ `° Ðfailed€to€demonstrate€that€Allstateððs€violation€of€the€Act€was€willful€or€knowing€and€thus€declinedÐ L œ Ðto€award€treble€damages€as€to€it.€€The€trial€court€held€that€Solomon€is€entitled€to€recover€herÐ 8 ˆ Ðattorneyððs€fees€of€$14,781.25€and€discretionary€costs€of€$2,888.06€against€the€defendants,€jointly€andÐ $ t Ðseverally.Ð  ` Ѐ€€Ð ü L  Ðà  àThe€defendants€filed€motions€for€a€new€trial.€€The€trial€court€denied€the€motions€butÐ è 8  Ðsuggested€a€remittitur,€which€was€accepted€by€the€plaintiff.€€The€trial€court€reduced€the€compensatoryÐ Ô$  Ðdamages€awarded€to€Solomon€against€Allstate€to€Ô#†¼V]»XX!*#ÔÔ‡X!X»¼V]Ô$101,098€and€the€damages€awarded€under€theÐ À  ÐTennessee€Consumer€Protection€Act€against€all€defendants€to€$1,500.€€The€court€approved€the€juryððsÐ ¬ü  Ðassessment€of€a€25%€bad€faith€penalty.׃×Ý ƒ#ÃÝòòÚ  Ú5Ú  ÚóóÝ  Ý×  ×€òòóóÔ#†¼V]»XX!yB#ÔÔ€X!X»¼V]Ôò òòòó óóóÐ ˜è  ÐÓ  ÓÌII.€€òòThe€Insurance€PolicyóóÐ pÀ ÐÓ4DÓÌà  àThe€pertinent€provisions€of€the€builderððs€risk€policy€at€issue€in€this€case€are€as€follows:Ð H˜ ÐÌÔ‡X!XXX!Ôà  àà8 ` àò òòòCoverage€AÐ p` x` x Ðà  àà8 ` àDwelling€ProtectionÐX` x` x ÐÌà  àà8 ` àProperty€We€Cover€Under€Coverage€A:ÐØ(` x` x Ðà  àà8 ` àó óóó1.€€ò ò€€€€€€€Your€dwellingó ó,...ÐÀ` x` x ÐÌà@ŽŽ%ìà*€€€€*€€€€*ˆÐ œì ÐÌà  àà8 ` àò òòòCoverage€BÐtÄ` x` x Ðà  àà8 ` àOther€Structures€Protectionó óóóÐ\¬` x` x ÐÌà@ŽŽ%ìà*€€€€*€€€€*ˆÐ 0!€ ÐÌà  àà8 ` àò òòòLosses€We€Cover€Under€Coverages€A€and€B:Ð#X!` x` x ÐÌà  àà8 ` àóóWeó ó€will€cover€sudden€and€accidental€direct€physical€loss€to€propertyÐ Ø$( # Ðdescribed€in€ò òCoverage€A€ð!ð€Dwelling€Protectionó ó...except€as€limitedÐ È%!$ Ðor€excluded€in€this€policy.и&"%` x` x ÐÐ ¤'ô"& Ðà  àà ` àà ¸ àà  àà h àà À àà  àà p àà È àà  àà x àÌà  àà8 ` àò òòòLosses€We€Do€Not€Cover€Under€Coverages€A€and€B:Мì` x` x ÐÌà  àà8 ` àóóWeó ó€do€not€cover€loss€to€the€property€described€in€ò òCoverage€A€ð!ðÐ l¼ ÐDwelling€Protectionó ó€or€ò òCoverage€B€ð!ð€Other€Structures€Protectionó óÐ \¬ Ðconsisting€of€or€caused€by:ÐL œ` x` x Ðà0  àà ` à1.à ¸ àFlood,€including,€but€not€limited€to€surface€water,€waves,Ð8 ˆ(#(# Ðà  àà ` àà ¸ àtidal€water€or€overflow€of€any€body€of€water,€or€spray€fromÐ $ t Ðà  àà ` àà ¸ àany€of€these,€whether€or€not€driven€by€wind.Ð  ` ÐÌà@ŽŽ%ìà*€€€€*€€€€*ˆÐ è 8  ÐÌÓ€ (¥h83ÓØ! !Øà  àà ` à4.€€€€€€€€Water€or€any€other€substance€on€or€below€the€surface€of€theÐ À  Ðà  àà ` àà ¸ àground,€regardless€of€its€source.€€This€includes€water€or€anyÐ ¬ü  Ðà  àà ` àà ¸ àother€substance€which€exerts€pressure€on,€or€flows,€seeps€orÐ ˜è  Ðà  àà ` àà ¸ àleaks€through€any€part€of€the€ò òresidence€premisesó ó.Ð „Ô  ÐÌà@ŽŽ%ìà*€€€€*€€€€*ˆÐ `° ÐÌà  àà ` à5.€€€€€€€€€Earth€movement€of€any€type,€including,€but€not€limited€toÐ 8ˆ Ðà  àà ` àà ¸ àearthquake,€volcanic€eruption,€lava€flow,€landslide,€subsidence,Ð $t Ðà  àà ` àà ¸ àmudflow,€pressure,€sinkhole,€erosion,€or€the€sinking,€rising,Ð ` Ðà  àà ` àà ¸ àshifting,€creeping,€expanding,€bulging,€cracking,€settling€orÐ üL Ðà  àà ` àà ¸ àcontracting€of€the€earth.Ð è8 ÐÌà  àà8 ` à€€€€€€€€€€€€This€exclusion€applies€whether€or€not€the€earth€movementÐÀ` x` x Ðà  àà ` àà ¸ àis€combined€with€water.Ð ¬ü ÐÌà@ŽŽ%ìà*€€€€*€€€€*ˆÐ „Ô ÐÌà  àà ` à12.€€€€€€€òòCollapse,€except€as€specifically€provided€in€ò òSection€I€ð!ðÐ \ ¬ Ðà  àà ` àà ¸ àAdditional€Protectionó ó€under€item€11,€ð ðCollapse.ððóóÐ H!˜ ÐÌà@ŽŽ%ìà*€€€€*€€€€*ˆÐ  #p! ÐÌà  àà ` à22.€€€€€€€Planning,€Construction€or€Maintenance,€meaning€faulty,Ð ø$H # Ðà  àà ` àà ¸ àInadequate€or€defective:Ð ä%4!$ Ðà  àà ` àà ¸ àa)€€€€€planning,€zoning,€development,€surveying,€siting;Ð Ð& "% Ðà  àà ` àà ¸ àb)€€€€design,€specifications,€workmanship,€repair,€construction,Ð ¼' #& Ðà  àà ` àà ¸ à€€€€€€€€renovation,€remodeling,€grading,€compaction;Ð ¨(ø#' Ðà  àà ` àà ¸ àc)€€€€€materials€used€in€repair,€construction,€renovation€orÐ ”)ä$( Ðà  àà ` àà ¸ à€€€€€€€€remodeling;€orÐ €*Ð%) Ðà  àà ` àà ¸ àd)€€€€€maintenance;Ð l+¼&* Їà  àà ` àà ¸ àof€property€whether€on€or€off€the€ò òresidence€premisesó óÐ ° Ðà  àà ` àà ¸ àby€any€person€or€organization.Ð  ð ÐÌà  àà ` à23.€€ò ò€€€€€Weó ó€do€not€cover€loss€to€covered€property€described€in€ò òCoverageÐ xÈ Ðà  àà ` àà ¸ àA€ð!ð€Dwelling€Protectionó ó€or€ò òCoverage€B€ð!ð€Other€StructuresÐ h¸ Ðà  àà ` àà ¸ àProtectionó ó€when:Ð X ¨ Ðà  àà ` àà ¸ àa)€€€€€there€are€two€or€more€causes€of€loss€to€the€coveredÐ H ˜ Ðà  àà ` àà ¸ à€€€€€€€€property;€andÐ 4 „ Ðà  àà ` àà ¸ àb)€€€€€the€predominant€cause(s)€of€loss€is€(are)€excluded€underÐ  p Ðà  àà ` àà ¸ à€€€€€€€€ò òLosses€We€Do€Not€Coveró ó,€items€1€through€22€above.Ô#†X!XXX!E#ÔÐ  \  ÐÌ(Bold€print€in€original;€emphasis€in€ð ðCollapseðð€provision€added).€€In€addition€to€the€coverageÐ è8  Ðprovisions€and€exclusions€set€forth€above,€the€policy€provides€additional€terms€of€coverage€in€aÐ Ô$  Ðsection€entitled€ð ðAdditional€Protection,ðð€which€protections€are€alluded€to€in€the€ð ðCollapseðð€exclusionÐ À  Ðset€forth€in€the€policy€provisions€quoted€above.€€As€pertinent€here,€the€ð ðAdditional€Ô_ÔProtectionððÔ_ÔÐ ¬ü  Ðlanguage€is€as€follows:Ð ˜è  ÐÌÔ‡X!XXX!Ôò òòòà  àà ` àAdditional€Protectionó óóóÐ pÀ ÐÌà@ŽŽ%ìà*€€€€*€€€€*ˆÐ D” ÐÌà  àà ` à11.€€€€€ò ò€€Collapseó óÐ l Ðà  àà ` àà ¸ àò òWeó ó€will€cover:Ð  \ Ðà  àà ` àà ¸ àa)€€€€€the€entire€collapse€of€a€covered€ò òbuilding€structureó ó;Ð üL Ðà  àà ` àà ¸ àb)€€€€€the€entire€collapse€of€part€of€a€covered€ò òbuildingÐ ì< Ðà  àà ` àà ¸ à€€€€€€€€structureó ó;€andÐ Ü, Ðà  àà ` àà ¸ àc)€€€€€direct€physical€loss€to€covered€property€causedÐ Ì Ðà  àà ` àà ¸ à€€€€€€€€by€(a)€or€(b)€above.Ð ¸ ÐÌà  àà ` àà8 ¸ àFor€coverage€to€apply,€the€collapse€of€a€ò òbuildingÐ à Ðstructureó ó€specified€in€(a)€or€(b)€above€must€be€aÐ € Ð Ðsudden€and€accidental€direct€physical€loss€caused€byÐ p!À Ðone€or€more€of€the€following:Ð\"¬ ¸ ¸  ÐÌà@ŽŽ%ìà*€€€€*€€€€*ˆÐ 4$„" ÐÌà  àà ` àà ¸ àf)€€€€€defective€methods€or€materials€used€in€construction,Ð  &\!$ Ðà  àà ` àà ¸ à€€€€€€€€repair,€remodeling€or€renovation,€but€only€if€theÐ ø&H"% Ðà  àà ` àà ¸ à€€€€€€€€collapse€occurs€in€the€course€of€such€construction,Ð ä'4#& Ðà  àà ` àà ¸ à€€€€€€€€repair,€remodeling€or€renovation.Ô#†X!XXX!Í\#ÔÐ Ð( $' ÐÌ(Bold€print€in€original).Ð ¨*ø%) ÐÐ ”+ä&* ÐÓ  ÓIII.€€òòIssuesóóÐ ° ÐÓ™cÓÌà  àAllstate€appeals,€arguing,€for€various€reasons,€that€the€trial€court€erred€(1)€by€not€granting€Ô_ÔitsÔ_ÔÐ ˆØ Ðmotion€for€directed€verdict€and€(2)€by€failing€to€grant€Ô_ÔitsÔ_Ô€motion€for€a€new€trial.Ð tÄ ЀÌÓ  ÓIV.€€òòStandard€of€ReviewóóÐ L œ ÐÌÓ eÓà  àA€directed€verdict€is€appropriate€only€when€the€evidence€is€susceptible€to€but€one€conclusion.€Ð $ t Ðò òòòEaton€v.€McLain,ó óóó€891€S.W.2d€587,€590€(Tenn.€1994).€€In€reviewing€a€trial€courtððs€denial€of€a€motionÐ  ` Ðfor€directed€verdict,€we€must€take€the€strongest€legitimate€view€of€the€evidence€favoring€theÐ ü L  Ðopponent€of€the€motion.€€ò òòòId.ó óóó€€Additionally,€all€reasonable€inferences€in€favor€of€the€opponent€of€theÐ è 8  Ðmotion€must€be€allowed,€and€all€evidence€contrary€to€the€opponentððs€position€must€be€disregarded.€Ð Ô$  Ðò òòòId.Ð À  Ðà  àà ` àÌó óóóà  àA€motion€for€a€new€trial€addressing€factual€issues€requires€the€trial€court€to€perform€itsÐ à  Ðfunction€as€a€thirteenth€juror.€€òòSeeóó€òòò òRidings€v.€Norfolk€S.€Ry.€Co.,ó óóó€894€S.W.2d€281,€288€(Tenn.€Ct.Ð |Ì  ÐApp.€1994).€€This€Court€has€described€that€function€as€follows:Ð h¸ ÐÌà8  àà8` Ð Ð à[i]f€a€trial€court€is€called€upon€to€act€as€a€thirteenth€juror€following€theÐ @ Ðfiling€of€a€motion€for€a€new€trial,€the€trial€court€must€be€independentlyÐ ,| Ðsatisfied€with€the€verdict€of€the€jury.€€In€performing€this€function,€theÐ h Ðtrial€court€must€itself€weigh€the€evidence€heard€by€the€jury.€€If€afterÐ T Ðweighing€the€evidence,€the€trial€court€is€satisfied€with€the€verdict,€itÐ ð@ Ðis€that€court's€responsibility€to€approve€the€verdict;€on€the€other€hand,Ð Ü, Ðif€it€is€not€satisfied€with€the€verdict€after€weighing€the€evidence,€theÐ È Ðtrial€court€must€grant€a€new€trial.€€The€trial€court's€performance€of€itsÐ ´ Ðfunction€as€thirteenth€juror€must€be€performed€without€regard€to€andÐ  ð Ðwithout€deference€being€shown€to€the€result€reached€by€the€jury.€€AsÐ ŒÜ Ðthe€thirteenth€juror,€the€trial€court€acts€as€a€jury€unto€itself€inÐ xÈ Ðevaluating€and€weighing€the€evidence€presented€at€the€trial.€€Ðd´` x` x ÐÌòòò òId.ó óóó€at€288„89€(citations€omitted).Ð