ÿWPC6 ËPƒt’Ú±a¬ÆUùr°‹öi¸kgâ/£ªæø ¿¯Ø°1ˆùÁòHð>gºÜm{ª.¾Kƒ³¿›Jã==äÀ­òcSÔË÷&Üå¦:¾0wxŒxÌOY1\Š<»G?pêô8C`{O×/í‘©¿N <ÇñôºøŠî VD P“SÙÊú,Lõ—:á`QºÖŽÉ¬=$ÿ¦Baæü?$Ìõ¬B®µF È³Uô F¦hAÙQ8W³°Í­ƒ\ž<ÍÀ£ ¬C‡Ò^ïLÛØB© lãJUf ¤x8ßÞÅMõ0Œjô>•M+a?šo±aë\¬Æ:$‚  ýDô¯èfÌŠÚx}¥4u9ul0¸ùÜDÄêL¶áãio>]Á»?M¹á´æXx ¨CÜK*«+ÝÄ Îï8ºß|Qû€Àî/ô†s(¡Åm«Äè§`¡eò†Zªœ !V­vý+­ÈàxLòŽ'Ó,iÞ$íïR 0˜¿~À8zÒÅÇÌÙåç=:í,4"x‘ÁŸyã4²@iV(‘ @îĦÿ³Î4"‘؃ÄÕRÉÄ{;Ë=xûy‡5ÌÞÿt²ÍØ8uÅôR,—G–Pg’å®Ó€;Ùb#Á\ % ^ # 0ˆ/ UN· w 4 z Ò— i x mz '‘ Ƹ Æ~ ÆDÆ  0DÐNCÍYE&L(­tt!!!!!!!!!!!!!!!!!!!!b)))))))))))))))))))))))))))))))))))) 0ë1111 B 0¤9 D5Ý D- 0K?? ASŠÆÝ 0¤£ 0DG A«‹˜HP LaserJet 4050 Series PCL 6ÈÈ,,,,ÈÈ0»6l,-s (`£ª$¡¡Ñ€.ÑÑ8€½­»»d»»d8ÑÑ ý ÑÓ  Ó(í€"  Z6Times New Roman Regular9‚±,LǤ ˜C:\PROGRA~1\COREL\WORDPE~1\TEMPLATE\CUSTOM~1\REVISE~1.WPTC:\Program Files\Corel\WordPerfect Office 2000\Template\Custom WP Templates\revised standard opinion.wpt3|xÿU‹ÿÀÀÀ Ý ƒR²q$ÝÓ  Óà  àòòÚ  Ú2Ú  ÚóóÔ€ôÿeò»»ÔÝ  ÝÔ_ÔAnother€order€was€entered€September€22€which€was€identical€except€for€the€trial€courtððs€hand„written€notationÐ ° Ðtaxing€costs€to€Defendant.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$òòÚ  Ú0Ú  Úóó 9Ý ƒR²q$ÝÓ  Óà  àòòÚ  Ú3Ú  ÚóóÔ€ôÿeò»»ÔÝ  ÝÔ_ÔAt€the€beginning€of€the€trial€of€the€indemnity€complaint,€counsel€for€Mr.€Valdez€stated€the€trial€court€hadÐ ° Ðindicated€he€should€ð ðbring€in€the€insurance€company.ðð ÃÝ ƒR²q$ÝÓ  Óà  àòòÚ  Ú4Ú  ÚóóÔ€ôÿeò»»ÔÝ  ÝÔ_ÔThe€complaint€alleged€that€TAPCO€Underwriters,€Inc.€is€the€underwriter€for€the€insurance€carrier,€Lloydððs€ofÐ ° ÐLondon.€€It€also€alleged€that€the€correspondence€declining€coverage€was€from€Tenco€Services,€Inc.,€an€independentÐ tÄ Ðadjusting€firm€working€on€behalf€of€the€underwriter,€TAPCO. BÝ ƒR²q$ÝÓ  Óà  àòòÚ  Ú5Ú  ÚóóÔ€ôÿeò»»ÔÝ  ÝÔ_ÔThe€answer€also€denied€negligence€on€the€part€of€Mr.€Valdez,€demanded€strict€proof€of€Mr.€WilliamsððsÐ ° Ðdamages,€and€alleged€Mr.€Williamsððs€automobile€insurance€was€primary. £Ý ƒR²q$ÝÓ  Óà  àòòÚ  Ú1Ú  ÚóóÔ€ôÿeò»»ÔÝ  ÝÔ_ÔTenn.€R.€Ct.€App.€10€states:Ð ° ÐÌà8  àThis€Court,€with€the€concurrence€of€all€judges€participating€in€the€case,€may€affirm,€reverse€or€modifyÐ 8ˆ Ðthe€actions€of€the€trial€court€by€memorandum€opinion€when€a€formal€opinion€would€have€noÐ üL Ðprecedential€value.€€When€a€case€is€decided€by€memorandum€opinion€it€shall€be€designatedÐ À Ðð ðMEMORANDUM€OPINION,ðð€shall€not€be€published,€and€shall€not€be€cited€or€relied€on€for€anyÐ „Ô Ðreason€in€any€unrelated€case. - ù-(|G2²q$¤¤Ý ƒ£ª!ÝÑ€.ÑÑ8€IÝ»»dXXdì8ÑÑ ý ÑÓ  ÓÝ  Ýà  àòòÚ  Ú0Ú  ÚóóÔ€ôÿeò»»Ô d(|3Ig$££Ý ƒ£ª!ÝÑ€.ÑÑ8€IÝ»»dXXdì8ÑÑ ý ÑÓ  ÓÝ  ÝVVVV)ÿÿ!dxdx)!ÈÈÈÈdxdx( ±þ$’’ò òFigure€Ú  Ú1Ú  Úó ó^_X`YEþÿ<<CÿÿƒLevel 1Level 2Level 3Level 4Level 5(|3Ig$¢¢Ý ƒ£ª!ÝÑ€.ÑÑ8€IÝ»»dXXdì8ÑÑ ý ÑÓ  ÓÝ  Ý($$””ò òÚ  Ú1Ú  Úó óX[Z&OLE 2.0 Box <=8ÿÿÿÿÿÿÿÿÿÿCÿÿ HKKKKÝ ƒ£ª!ÝÑ€.ÑÑ8€IÝ»»ddÈ8ÑÑ ý ÑÓ  ÓÝ  ÝÔ_ÔÑ  ÑÔ€¼IÝ»»»ÔÑ8€QXXdì»»d8ÑÑ  Ñà@ü ü ìàÔ‡îUIÝÔIN€THE€COURT€OF€APPEALS€OF€TENNESSEEˆÐ ° Ðà@kk$ìàAT€NASHVILLEÔ#†¼IÝ»îîU #ԈРÖ& ÐÓ  ÓAssigned€on€Briefs€May€14,€2002Ð üL ÐÔ‡XQX»¼IÝÔÌò òÔ#†¼IÝ»XXQü#ÔJAMES€E.€WILLIAMS€v.€SALVADORE€VALDEZ€òòvóó.€TAPCOÐ úJ ÐUNDERWRITERS,€INC.,€òòet€alóó.Ô‡XQX»¼IÝÔó óÐ  ^ ÐÌà@@½½ìàò òAppeal€from€the€Circuit€Court€for€Davidson€CountyÐ  ^ Ðà@@øøìàNo.€00C„646€€€€€€Carol€Soloman,€JudgeÐ ú J ÐÌÌà@@ìì*ìàßA€V) °°` d€÷E<½` AßÐ ¾  ÐÌà@@TTìàNo.€M2001„00666„Ô_ÔCOAÔ_Ô„R3„CV€„€Filed€September€12,€Ô_Ô2002Ô_ÔÐ ¹  ÐÌßA€V) °°` dE<` AßÐ ‘á  Ðó óÌÓ  ÓIn€an€action€brought€by€an€insured€against€his€insurer€for€indemnity,€the€trial€court€entered€judgmentÐ ŒÜ Ðafter€the€defendant€insurer€moved€for€involuntary€dismissal€under€Tenn.€R.€Civ.€P.€41.02.€€We€vacateÐ xÈ Ðthe€judgment€and€remand.Ð d´ ÐÓëÓÌò òTenn.€R.€App.€P.€3€Appeal€as€of€Right;€Judgment€of€the€Circuit€CourtÐ <Œ ÐVacated€and€Remandedó óÐ (x ÐÌòòÓ  ÓÔ#†¼IÝ»àXQ«#ÔÔ‡XQX.¼IÝÔPatricia€J.€Cottrell,€J.óó,€delivered€the€opinion€of€the€court,€in€which€òòBen€H.€Cantrell,€P.J.,€M.S.,€óóÐ P Ðand€òòWilliam€C.€Koch,€Jr.,€J.óó,€joined.Ð ì< ÐÌPeter€B.€Murphy,€R.R.€Ruth,€Jr.,€Chattanooga,€Tennessee,€for€the€appellants,€TAPCO€Underwriters,Ð Ä ÐInc.,€and€Certain€Interested€Underwriters€at€Lloyds,€London.Ð ° ÐÌBobby€D.€Davis,€Madison,€Tennessee,€for€the€appellee,€Salvadore€Valdez.Ð ˆØ ÐÌJames€B.€Lewis,€Nashville,€Tennessee,€for€the€appellee,€James€E.€Williams.Ð `!°  ÐÓµÓÌò òMEMORANDUM€OPINIONó óÔ#†¼IÝ»XXQä#ÔÔ‡XQX»¼IÝÔ׃×Ý ƒ#ÃÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×Ð 8#ˆ" ÐÌòòóóÔ#†¼IÝ»XXQ• #ÔÓ  ÓÔ€XQX»¼IÝÔÌà  àThis€case€started€as€an€action€by€one€neighbor,€Mr.€Williams,€against€another,€Mr.€Valdez,Ð ü%L!% Ðfor€damage€from€a€falling€tree.€€Mr.€Williams€obtained€a€default€judgment€in€general€sessions€court,Ð è&8"&ý Ðand€Mr.€Valdez€appealed€and€obtained€a€trial€òòde€novoóó€in€circuit€court.€€The€trial€was€held€August€9,Ð ° Ð2000,€and€an€order€was€entered€September€5€awarding€a€judgment€of€$6500€against€Mr.€Valdez.׃ ×Ý ƒ#ÃÝòòÚ  Ú2Ú  ÚóóÝ  Ý×  ×€€Ð œì ÐÌà  àAfter€the€trial€but€before€entry€of€the€order,€Mr.€Valdez€joined€TAPCO€Underwriters,€Inc.€Ð tÄ Ðas€Third€Party€Defendant€seeking€indemnification€for€the€$6500€judgment.׃×Ý ƒ#ÃÝòòÚ  Ú3Ú  ÚóóÝ  Ý×  ×Ð `° ÐÌà  àThe€Third€Party€Compliant€filed€by€Mr.€Valdez€alleged€that€a€storm€had€caused€a€tree€in€hisÐ 8 ˆ Ðyard€to€fall€on€his€neighborððs€property€causing€damage€to€Mr.€Williamsððs€car.€€€Mr.€Valdez€allegedÐ $ t Ðhe€had€made€demand€upon€TAPCO€as€holder€of€an€insurance€policy€which€covered€the€loss.׃h×Ý ƒ#ÃÝòòÚ  Ú4Ú  ÚóóÝ  Ý×  ×€€HeÐ  ` Ðalleged€that€six€months€after€the€accident€he€received€correspondence€advising€him€that€the€insuranceÐ ü L  Ðcarrier€had€no€duty€to€provide€coverage€because€the€carrier€was€not€timely€notified.€€The€complaintÐ è 8  Ðdid€not€allege€the€date€upon€which€Mr.€Valdez€made€the€demand€on€the€carrier.Ð Ô$  ÐÌà  àTAPCO€answered€and,€first,€denied€it€was€a€proper€defendant€in€an€action€to€recoverÐ ¬ü  Ðinsurance€proceeds€because€it€was€not€an€insurer€and€otherwise€had€no€privity€of€contract€with€Mr.Ð ˜è  ÐValdez.€€While€admitting€that€TAPCO€underwrote€a€contract€of€insurance€for€Mr.€Valdez€withÐ „Ô  ÐCertain€Interested€Underwriters€at€Lloyds,€London,€the€answer€further€alleged€that€Mr.€Valdez€failedÐ pÀ Ðto€comply€with€the€conditions€of€the€insurance€relating€to€reporting€of€alleged€losses€to€the€extentÐ \¬ Ðthe€insurerððs€interests€had€been€prejudiced.€€Certain€Interested€Underwriters€at€Lloyds,€London€wasÐ H˜ Ðadded€as€a€Defendant€by€agreed€order.€€Certain€Interested€Underwriters€answered,€admitting€that€aÐ 4„ Ðcontract€of€insurance€was€issued€to€Mr.€Valdez€providing€liability€coverage.׃|×Ý ƒ#ÃÝòòÚ  Ú5Ú  ÚóóÝ  Ý×  ×€€The€answer€allegedÐ  p Ðthat€Mr.€Valdez€breached€the€policy€provisions€by€failing€to€timely€report€the€loss€claimed€to€theÐ  \ Ðprejudice€of€the€insurer.€€The€answer€also€asserted€that€under€the€facts€and€circumstances,€prejudiceÐ øH Ðis€presumed€and€the€burden€to€rebut€the€presumption€of€prejudice€lay€with€Mr.€Valdez.€€CertainÐ ä4 ÐInterested€Underwriters€asserted€TAPCO€was€not€a€proper€defendant€and€should€be€dismissed.Ð Ð  ÐÌà  àThe€matter€came€to€trial,€and€at€the€beginning,€counsel€for€the€insurer€acknowledged€that€theÐ ¨ø Ðproceeding€was€only€on€the€contract.€€The€parties€and€the€court€agreed€the€judgment€on€liabilityÐ ”ä Ðagainst€Mr.€Valdez€was€final.€€The€parties€and€the€court€also€agreed€that€the€single€issue€to€be€triedÐ €Ð Ðwas€notice.€€Counsel€also€argued€that€if€notice€was€not€timely€given€then€the€insured€has€the€burdenÐ l¼ Ðof€proving€that€the€insurer€was€not€prejudiced€by€the€delay.Ð X ¨ ÐÐ D!” Їà  àMr.€Valdez€testified€about€the€storm,€the€tree€falling,€and€the€resulting€damage.€€He€testifiedÐ ° Ðthat€the€day€after€the€storm€he€had€called€the€mortgage€holder€and€then€had€a€friend€call€the€insuranceÐ œì Ðcompany€at€the€number€given€him€by€the€mortgage€holder.€€He€identified€a€letter€written€by€hisÐ ˆØ Ðformer€attorney€to€the€insurerððs€representative€dated€September€24,€1999,€after€the€general€sessionsÐ tÄ Ðsuit€was€brought,€advising€them€of€the€loss.Ð `° ÐÌà  àAlthough€the€storm€occurred€on€May€2,€1999,€Mr.€Valdez€was€unaware€of€any€intent€to€makeÐ 8 ˆ Ða€claim€against€him€until€he€was€served€with€the€general€sessions€warrant€on€August€13,€1999.€€TwoÐ $ t Ðmonths€after€the€storm,€he€began€cutting€up€the€fallen€tree€with€a€chainsaw€and€repaired€the€fence.€Ð  ` ÐHe€testified€that€someone€representing€the€insurer€came€to€look€at€the€scene€approximately€eightÐ ü L  Ðmonths€after€the€accident.€€By€that€time€the€fence€had€been€repaired€and€only€a€stump€of€the€treeÐ è 8  Ðremained.Ð Ô$  ÐÌà  àMr.€Williams€testified€that€the€tree€remained€on€his€car€for€one€and€a€half€to€two€months€untilÐ ¬ü  ÐMr.€Valdez€cut€it€up€with€a€chainsaw.€€An€insurance€adjuster€came€to€see€Mr.€Williams€at€work€andÐ ˜è  Ðwent€to€see€the€car,€which€had€not€been€repaired.Ð „Ô  ÐÌà  àThe€plaintiff€rested€his€case€with€the€testimony€of€Mr.€Valdez€and€Mr.€Williams.€€CounselÐ \¬ Ðfor€the€insured€moved€for€dismissal€on€the€basis€that€the€insurance€contract€had€not€been€entered€intoÐ H˜ Ðevidence,€that€its€terms€had€not€been€proved,€and€that€plaintiff€had€not€overcome€the€presumptionÐ 4„ Ðof€prejudice€from€delay€in€notification.€€Counsel€for€both€plaintiffs€argued€against€grant€of€theÐ  p Ðmotion.€€After€argument,€the€court€found€that€Mr.€Valdez€had€acted€in€good€faith€and€that€the€insurerÐ  \ Ðhad€a€yearððs€notice€before€the€trial€on€the€merits€and€did€not€participate.€€The€court€then€grantedÐ øH Ðjudgment€in€favor€of€Mr.€Valdez€against€the€ð ðproper€insurance€party.ðð€€The€trial€court€entered€anÐ ä4 Ðorder€finding€that€the€proof€showed€that€notice€was€given€in€a€timely€fashion€by€Mr.€Valdez€andÐ Ð  Ðprejudice€to€the€insurer€had€not€been€proved.€€The€court€awarded€judgment€against€the€insurer€in€theÐ ¼  Ðsame€amount€as€the€judgment€entered€ð ðin€the€original€case.ððÐ ¨ø ÐÌà  àThe€insurer€appeals€asserting€that€judgment€on€the€insurance€contract€could€not€be€renderedÐ €Ð Ðwithout€proof€of€the€contract€and€its€terms€by€introduction€of€the€policy.€€Insurer€also€asserts€it€wasÐ l¼ Ðimproper€to€grant€judgment€in€the€case€before€it€had€the€opportunity€to€present€its€case€in€defense.Ð X ¨ ÐÌà  àThe€insurer€admitted€in€its€answer€that€a€policy€contract€of€insurance€had€been€issued€to€Mr.Ð 0"€  ÐValdez€providing€liability€coverage,€subject€to€its€terms€and€conditions.€€No€issue€was€raisedÐ #l! Ðregarding€coverage,€and€the€insurer€agreed€the€only€issues€were€delay€in€notice€and€resultingÐ $X" Ðprejudice.€€The€insurer€defended€on€the€basis€of€the€terms€of€the€contract,€asserting€Mr.€ValdezÐ ô$D # Ðbreached€the€condition€of€prompt€notice.€€Thus,€it€was€up€to€the€insurer€to€prove€the€terms€andÐ à%0!$ Ðconditions€it€alleged€were€breached.€€However,€the€insurer€had€no€opportunity€to€provide€such€proofÐ Ì&"% Ðbecause€the€trial€court€granted€judgment€on€the€entire€case€after€the€defendantððs€motion€for€dismissalÐ ¸'#& Ðon€the€plaintiffððs€proof.Ð ¤(ô#' ÐÌà  àIn€a€nonjury€case,€a€motion€for€dismissal€under€Tenn.€R.€Civ.€P.€41.02(2)€is€proper€asÐ |*Ì%) Ðopposed€to€a€motion€for€directed€verdict€under€Tenn.€R.€Civ.€P.€50,€although€both€motions€test€theÐ h+¸&* Ðsufficiency€of€the€plaintiffððs€proof.€€Rule€41.02(2)€of€the€Tennessee€Rules€of€Civil€Procedure,Ð ° Ðgoverning€involuntary€dismissals,€provides:Ð œì ÐÌà8  àAfter€the€plaintiff,€in€an€action€tried€by€the€court€without€a€jury,€has€completed€theÐ tÄ Ðpresentation€of€plaintiffððs€evidence,€the€defendant,€without€waiving€the€right€to€offerÐ `° Ðevidence€in€the€event€the€motion€is€not€granted,€may€move€for€dismissal€on€theÐ L œ Ðground€that€upon€the€facts€and€the€law€the€plaintiff€has€shown€no€right€to€relief.€€TheÐ 8 ˆ Ðcourt€shall€reserve€ruling€until€all€parties€alleging€fault€against€any€other€party€haveÐ $ t Ðpresented€their€respective€proof„in„chief.€€ò òThe€court€as€trier€of€the€facts€may€thenÐ  ` Ðdetermine€them€and€render€judgment€against€the€plaintiff€or€may€decline€toÐ  P  Ðrender€any€judgment€until€the€close€of€all€the€evidenceó ó;€in€the€event€judgment€isÐ ì <  Ðrendered€at€the€close€of€plaintiffððs€evidence,€the€court€shall€make€findings€of€fact€ifÐ Ü,  Ðrequested€in€writing€within€three€(3)€days€after€the€announcement€of€the€courtððsÐ È  Ðdecision.д Ð Ð  ÐÌà  àThe€Advisory€Commission€Comments€regarding€that€paragraph€make€it€clear€that€theseÐ ŒÜ  Ðprovisions€were€designed€to€eliminate€the€prior€rule€in€chancery€cases€to€the€effect€that€a€defendantÐ xÈ Ðcould€not€move€for€dismissal€at€the€end€of€the€complainantððs€proof€without€resting€his€case€andÐ d´ Ðwaiving€his€right€to€offer€evidence.€€Ð P  ÐÌà  àWe€have€examined€the€transcript€of€the€entire€hearing€and€find€nothing€therein€to€indicateÐ (x Ðthe€insurer€rested€its€case,€announced€any€intention€not€to€proceed€with€its€defense,€or€otherwiseÐ d Ðwaived€its€right€to€present€evidence€in€its€defense.€€The€transcript€also€reveals€that€the€trial€courtÐ P Ðproceeded€immediately€from€argument€on€the€motion€to€judgment€on€the€merits€of€the€case.Ð ì< ÐÌà  àThe€trial€court€erred€in€granting€final€judgment€for€the€plaintiff€after€the€defendantððs€motionÐ Ä Ðfor€involuntary€dismissal.€€Consequently,€we€must€vacate€the€judgment€herein€and€remand.Ð ° ÐÌà  àCosts€of€this€appeal€are€taxed€against€Appellee,€Ô_ÔSalvadoreÔ_Ô€Valdez,€for€which€execution€mayÐ ˆØ Ðissue€if€necessary.Ð tÄ ÐÌÌÌà  àà ` àà ¸ àà  àà h àà À àà  à___________________________________€Ð $#t! Ðà  àà ` àà ¸ àà  àà h àà À àà  àPATRICIA€J.€COTTRELL,€JUDGE