ÿWPCn W# ÒUNÝ %+ 041 0³ebw@ 4`tƒº‹NE ^ G S mU l 0Dt 0J¸ 0T 0^V 0h´ 0r 0|Ž 0† 0 AQ Æq 0D7 0@{ 0D» 1uÿ D/t 0d£ B D3$U>WB)•DC¾ AMU*NGx+¿êv~vÓ~ BQ˜HP LaserJet 4SiHPPCL5MS,ü,,,,,ü0nLhÎ'í€"  Z 6Times New Roman Regular¼( ¤U$¡¡Ó  Ó(c(2j$¤¤Ý ƒ¤U!ÝÓ  ÓÝ  ÝÒ°ÒÒX°ÒÔ€X.èX¼¼Ôà ` àòòÚ  Ú0Ú  Úóó- ù- ·À¸À¹bº¼e»a¼D½U¾ ¿Ó€Éê‚_#-<¨llll3|xÉwaller v. shelter ins. - opinion Î3 ' 2William C. Koch, Jr.20William C. Koch, Jr. .   Ô›Â$ˆÿU‹ÿÀÀÀ (#Ã$òòÚ  Ú0Ú  Úóó2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô!"#$&Cþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5(3¯$¢¢Ý ƒ!ÝÝ  Ý("ÿÿ$££Ò  ÒÒ  Ò($$””ò òÚ  Ú1Ú  Úó ó ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)(('÷ÿ dxdP ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓüÿP PdVVVV'ÿÿdxd< Œ 9p`(&Times New Roman% Line 7 d11117Border 1dd!#2Cþÿ << Gÿÿ< Œ 9p`(Arial =Ý ƒ!ÝÑ  ÑÑ#€d#ÑÔ€0ÔÔ€0¼ÔÓ  ÓÝ  ÝÝ ƒ""ÝÝ  ÝÔ€4ÔÔ€4ÔÓ  Óò òÔ YYY ÔFILEDÔ€4XÔÌÌJune€19,€1998ÌÌCecil€W.€CrowsonÌAppellate€Court€ClerkÔ  Ôó ó !Ý ƒ!ÝÑ#€d#ÑÔ€0ÔÔ€0¼ÔÓ  ÓÝ  ÝÝ ƒ$ÝÒ  ÒÒ X ÒÔ€0XÔà àòòÚ  ÚÚ  ÚóóÝ  ÝÔ_ÔCoverage€C€of€Ms.€Wallerððs€automobile€insurance€policy€provides€that€Shelter€will€pay€upÏto€$5,000€for€ð ðall€reasonable€medical€expenses€which€.€.€.€[Ms.€Waller]€.€.€.€€incurred€within€threeÏyears€from€the€date€of€accident€for€necessary€medical€services€for€bodily€injury€.€.€.€caused€byÏaccident.ððÌ Ý ƒ!ÝÑ#€d#ÑÔ€0ÔÔ€0¼ÔÓ  ÓÝ  ÝÝ ƒ$ÝÒ  ÒÒ X ÒÔ€0XÔà àòòÚ  ÚÚ  ÚóóÝ  ÝShelter€has€not€argued€that€it€is€entitled€to€conventional€subrogation€based€upon€the€termsÏof€the€loan€receipt€Ms.€Waller€signed.€€Accordingly,€we€do€not€address€in€this€opinion€whether€aÏloan€receipt€such€as€the€one€involved€in€this€case€could€provide€the€basis€for€a€conventionalÏsubrogation€claim.ÌPtPtHHØ(ÿáÿâùFG(üHHØ(d'`Styl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑGenevaÑÑ ÑÒ  ellan Geneva ÒÒ  ellan Geneva Ò dÝ ƒ!ÝÔ . ÔÔ€0ÔÔ€0¼ÔÓ  ÓÝ  ÝÒ  ÒÒ X ÒÑ „ ÑÑ\R AØ'\Ñ›Ô_ÔÑ€ÑÑ7€†À¼¼ddÈ7ÑÑ  ÑÑ  ќԀ0„Ôò ò›Þ ÞÌà@ àIN€THE€COURT€OF€APPEALS€OF€TENNESSEEÌà@ àAT€NASHVILLEó óÌÔ€0¼ÔÌÙ€!ÙœßR€352A1-j|tü©` ç `€€@ÿRß›ÌDEBORAH€L.€WALLER€andà àà à)ÌWILLIAM€WALLER,à àà àà à)Ìà àà àà àà àà àà à)Ìà àPlaintiffs,à àà àà àà à)Ìà àà àà àà àà àà à)ÌSHELTER€INSURANCEà àà à)ÌCOMPANIES,à àà àà àà à)Ìà àà àà àà àà àà à)Ìà àIntervening€Plaintiff/à àà à)à àWilliamson€CircuitÌà àAppellant,à àà àà àà à)à àNo.€93021Ìà àà àà àà àà àà à)ÌVS.à àà àà àà àà àà à)à àAppeal€No.Ìà àà àà àà àà àà à)à à01A01„9606„CV„00260ÌDONALD€H.€AMMON,à àà àà à)ÌSAMELSON„LEON€CO.,€INC.,€andà à)ÌNICOTIANA€ENTERPRISES,€INC.,à à)Ìà àà àà àà àà àà à)Ìà àDefendants/Appellees.à àà à)ÌÌÌÌà@ àAPPEAL€FROM€THE€CIRCUIT€COURTÌà@ àFOR€WILLIAMSON€COUNTYÌà@ àAT€FRANKLIN,€TENNESSEEÌÌÌà@ àTHE€HONORABLE€HENRY€DENMARK€BELL,€JUDGEÌÌÌÌòòFor€Shelter€Insurance€Companiesóó:€€€€€€€€€€€à àòòFor€Deborah€L.€and€William€Walleróó:ÌÌJoseph€M.€Ô_ÔHuffakerÔ_Ôà àà àà àà àThomas€C.€Ô_ÔGorhamÔ_ÔÌÔ_ÔOrtaleÔ_Ô,€Kelley,€Herbert€&€Crawfordà àà àJames€L.€Woodard€&€AssociatesÌNashville,€Tennesseeà àà àà àà àFranklin,€TennesseeÌÌÌÌÌÌÔ€0„Ôò òà@ àVACATED€AND€REMANDEDó óÌÔ€0¼ÔÌÌÌÌÌà àà àà àà àà àà àà àWILLIAM€C.€KOCH,€JR.,€JUDGEÇÓ€ÓÔ€0„Ôò òòòœ›à@ àO€P€I€N€I€O€Nóóó óÌÔ€0¼ÔÌà àThis€appeal€involves€a€dispute€between€a€motorist€and€her€insuranceÏcompany€over€the€companyððs€subrogation€claim€and€its€obligation€to€pay€theÏmotorist€the€maximum€amount€of€its€policyððs€medical€expense€coverage.€ÏFollowing€a€collision€in€which€her€vehicle€was€struck€from€the€rear,€the€motoristÏbrought€suit€in€the€Circuit€Court€for€Williamson€County€against€the€driver€of€theÏother€vehicle€and€his€employer.€€The€motoristððs€insurance€company€intervened€toÏrecover€from€the€defendants€the€payments€it€made€to€the€motorist€for€part€of€herÏmedical€expenses.€€The€motorist€eventually€settled€with€the€defendants,€and€theÏtrial€court€dismissed€all€claims€against€the€defendants€after€they€paid€into€court€anÏamount€equal€to€the€payments€for€medical€expenses€advanced€by€the€motoristððsÏinsurer.€€The€motorist€thereafter€moved€for€summary€judgment€on€her€claims€forÏthe€funds€paid€into€court€and€for€the€unpaid€medical€expenses€under€her€insuranceÏpolicy.€€The€trial€court€awarded€the€motorist€the€funds€paid€into€court€and€alsoÏgave€her€€a€judgment€for€the€unpaid€medical€expenses€up€to€her€insurance€policyððsÏlimits.€€We€have€determined€that€the€summary€judgment€was€unwarranted€and,Ïaccordingly,€vacate€the€judgment€and€remand€the€case€for€further€proceedings.€ÌÌà@ àò òI.ó óÌÌà àIn€April€1991,€Donald€H.€Ammon€drove€his€truck€into€the€rear€end€of€anÏautomobile€being€driven€by€Deborah€L.€Waller.€€Ms.€Waller€suffered€personalÏinjuries€as€a€result€of€the€collision€and€incurred€approximately€$6,800€in€medicalÏexpenses.€€She€and€her€spouse€later€filed€suit€in€the€Circuit€Court€for€WilliamsonÏCounty€against€Mr.€Ammon,€his€employer€at€the€time€of€the€accident,€and€theÏcorporation€that€had€merged€with€his€employer.€€ÌÌà àWhen€the€collision€occurred,€Ms.€Wallerððs€automobile€insurance€policyÏwith€Shelter€Insurance€Companies€provided€her€with€coverage€up€to€$5,000€forÏreasonable€medical€expenses€incurred€within€three€years€from€the€date€of€anÏaccident€for€necessary€medical€services€for€bodily€injuries€caused€by€the€accident.€ÏShelter€paid€Ms.€Waller€$1,841.67€of€her€medical€expenses€and€required€her€toÏsign€a€loan€receipt€stating€that€she€would€repay€the€money€if€she€recoveredÏdamages€from€the€Ñ  ÑÑ Ü ÑÑ ° Ñdefendants.€€Ms.€Waller€submitted€other€claims€for€medicalÏexpenses,€but€Shelter€declined€to€pay€them.€€In€June€1993,€Shelter€filed€anÏintervening€complaint€against€the€three€original€defendants€seeking€to€recover€theÏ$1,841.67€it€had€paid€to€Ms.€Waller.€€Ms.€Waller€responded€to€ShelterððsÏintervening€complaint€by€denying€that€Shelter€was€entitled€to€subrogation€and€byÏfiling€a€cross„claim€against€Shelter€for€the€remaining€$3,158.33€in€her€policyððsÏmedical€expense€coverage.ÌÌà àA€jury€returned€a€verdict€for€the€defendants€in€March€1994,€but€the€trialÏcourt€set€aside€the€verdict€and€granted€Ms.€Waller€and€her€spouse€a€new€trial.€ÏBefore€the€second€trial,€Ms.€Waller€and€her€spouse€agreed€to€a€$15,000€settlementÏwith€the€original€defendants.€€Shelter€was€aware€of€these€negotiations€but€wasÏnever€consulted€about€the€amount€of€the€settlement.€€On€August€31,€1994,€theÏtrial€court€entered€an€agreed€order€dismissing€all€claims€against€the€originalÏdefendants€in€return€for€their€agreement€to€pay€$1,841.67€into€court€which€wasÏto€be€held€pending€the€resolution€of€the€dispute€between€Ms.€Waller€and€ShelterÏconcerning€Shelterððs€subrogation€claim.€€Shelterððs€lawyer€executed€this€agreedÏorder.€ÌÌà àThereafter,€Ms.€Waller€moved€for€a€summary€judgment€on€her€defenseÏthat€Shelter€was€not€entitled€to€recover€the€funds€it€had€advanced€for€her€medicalÏexpenses€and€on€her€cross„claim€for€the€unpaid€balance€of€her€medical€expenseÏcoverage.€€Shelter€responded€by€arguing€that€Ms.€Wallerððs€settlement€with€theÏoriginal€defendants€had€fully€compensated€her€for€her€medical€expenses€and,Ïtherefore,€that€she€was€not€entitled€to€collect€an€additional€$3,158.33€under€theÏpolicy€and€that€it€was€entitled€to€the€$1,841.67€being€held€by€the€court.€€In€AprilÏ1996,€the€trial€court€entered€an€order€granting€the€summary€judgment€andÏawarding€Ms.€Waller€and€her€spouse€a€judgment€for€both€the€$1,841.67€paid€intoÏcourt€and€for€an€additional€$3,158.33.€€Shelter€has€appealed.ÌÌœ›à@ àò òII.€ó óÌÌà àSummary€judgments€enjoy€no€presumption€of€correctness€on€appeal.€òò€SeeóóÏòòCity€of€Ô_ÔTullahomaÔ_Ô€v.€Bedford€Countyóó,€938€S.W.2d€408,€412€(Tenn.€1997);ÏòòÔ_ÔMcClungÔ_Ô€v.€Delta€Square€Ltd.€Partnershipóó,€937€S.W.2d€891,€894€(Tenn.€1996).€ÏAccordingly,€Ñ  Ñappellate€courts€reviewing€a€decision€to€grant€a€summary€judgmentÏmust€make€a€fresh€determination€of€whether€the€requirements€of€Tenn.€R.€Civ.€P.Ï56€have€been€satisfied.€€òòSeeóó€òòHunter€v.€Brownóó,€955€S.W.2d€49,€50„51€(Tenn.Ï1997);€òòMason€v.€Ô_ÔSeatonÔ_Ôóó,€942€S.W.2d€470,€472€(Tenn.€1997).€€SummaryÏjudgments€are€appropriate€only€when€there€are€no€genuine€material€factualÏdisputes€regarding€the€claim€or€defense€embodied€in€the€motion€and€when€theÏmoving€party€is€entitled€to€a€judgment€as€a€matter€of€law.€€òòSeeóó€Tenn.€R.€Civ.€P.Ï56.04;€òòÔ_ÔBainÔ_Ô€v.€Wellsóó,€936€S.W.2d€618,€622€(Tenn.€1997);€òòÔ_ÔCarvellÔ_Ô€v.€Bottomsóó,Ï900€S.W.2d€23,€26€(Tenn.€1995).ÌÌà àIn€summary€judgment€proceedings,€courts€must€view€the€evidence€in€theÏlight€most€favorable€to€the€nonmoving€party€and€must€draw€all€reasonableÏinferences€in€the€nonmoving€partyððs€favor.€€òòSeeóó€òòRobinson€v.€Ô_ÔOmerÔ_Ôóó,€952€S.W.2dÏ423,€426€(Tenn.€1997).€Thus,€a€summary€judgment€should€be€granted€only€whenÏthe€undisputed€facts€reasonably€support€one€conclusion€„„€that€the€moving€party€isÏentitled€to€a€judgment€as€a€matter€of€law.€€òòSeeóó€òòMcCall€v.€Wilderóó,€913€S.W.2dÏ150,€153€(Tenn.€1995);€òòCarvell€v.€Bottomsóó,€900€S.W.2d€at€26.€€A€party€mayÏobtain€a€summary€judgment€by€demonstrating€that€the€nonmoving€party€will€beÏunable€to€prove€an€essential€element€of€its€case,€òòseeóó€òòByrd€v.€Hallóó,€847€S.W.2dÏ208,€212„13€(Tenn.€1993),€because€this€necessarily€renders€all€other€factsÏimmaterial.€€òòSeeóó€òòAlexander€v.€Memphis€Individual€Practice€Assððnóó,€870€S.W.2dÏ278,€280€(Tenn.€1993);€òòStrauss€v.€Wyatt,€Tarrant,€Combs,€Gilbert€&€Milomóó,€911ÏS.W.2d€727,€729€(Tenn.€Ct.€App.€1995).ÌÌà@ àò òIII.ó óÌà@ àò òòòShelterððs€Subrogation€Rightsóóó óÌÌà àShelterððs€claim€that€it€is€entitled€to€the€$1,841.67€paid€into€court€by€theÏoriginal€Ìdefendants€rests€on€a€single€theory€„€subrogation.€€It€asserts€that€it€is€entitled€toÏthese€funds€because€it€paid€$1,841.67€of€Ms.€Wallerððs€medical€expenses€before€sheÏsettled€with€the€original€defendants.€€Ms.€Waller€asserts€that€Shelterððs€subrogationÏclaim€must€fail€because€the€subrogation€provision€in€Shelterððs€policy€does€notÏinclude€payments€for€medical€expenses€under€Coverage€C€and€because€Shelter€isÏnot€entitled€to€equitable€relief.ÌœÌÑ d ÑÑ À ÑÑ  Ñ›à@ àò òA.ó óÌÌà àSubrogation€is€an€equitable€doctrine€that€facilitates€the€adjustment€of€rightsÏto€avoid€unjust€enrichment€in€many€types€of€situations€by€substituting€one€personÏor€entity€in€place€of€another€in€regard€to€some€claim€or€right€that€the€secondÏperson€or€entity€may€have€against€a€third€party.€€òòSee€Ô_ÔCastlemanÔ_Ô€Constr.€Co.€v.ÏÔ_ÔPenningtonÔ_Ôóó,€222€Tenn.€82,€93„95,€432€S.W.2d€669,€674„75€(1968);€Robert€E.ÏÔ_ÔKeetonÔ_Ô€&€Alan€I.€Ô_ÔWidissÔ_Ô,€òòInsurance€Lawóó€ðð€3.10(a)(1)€(1988);€2€Joseph€Story,ÏòòCommentaries€on€Equity€Jurisprudenceóó€ðð€717,€at€124€(Ô_ÔW.H.Ô_Ô€Lyon,€ed.,€14th€ed.Ï1918).€€The€doctrine€benefits€persons€who€are€required€to€pay€anotherððs€debt€toÏprotect€their€own€interests,€òòsee€Merchantsðð€Bank€&€Trust€Co.€v.€Ô_ÔBushnellÔ_Ôóó,€142ÏTenn.€275,€279,€218€Ô_ÔS.W.Ô_Ô€709,€710€(1920);€òòAmos€v.€Central€Coal€Co.óó,€38€Tenn.ÏApp.€626,€638,€277€S.W.2d€457,€462€(1954);€4€John€N.€Pomeroy,€òòTreatise€onÏEquity€Jurisprudenceóó€ðð€1419,€at€1073€(Spencer€W.€Ô_ÔSymonsÔ_Ô,€ed.,€5th€ed.€1941),Ïbut€it€is€granted€only€when€it€will€not€cause€injustice€to€other€parties.€€òòSeeÏTravelers€Ins.€Co.€v.€Williamsóó,€541€S.W.2d€587,€590€(Tenn.€1976);€òòÔ_ÔGreenlawÔ_Ô€v.ÏÔ_ÔPettitÔ_Ôóó,€87€Tenn.€467,€480,€11€Ô_ÔS.W.Ô_Ô€357,€___€(1889).€ÌÌà àThe€doctrine€of€subrogation€takes€two€forms:€conventional€subrogationÏwhich€arises€from€a€contract€or€agreement,€òòsee€Tennessee€Farmers€Mut.€Ins.€Co.Ïv.€Ô_ÔRaderÔ_Ôóó,€219€Tenn.€384,€388,€410€S.W.2d€171,€173€(1966);€òòÔ_ÔU.S.F.Ô_Ô&G.€v.€Elamóó,Ï198€Tenn.€194,€213,€278€S.W.2d€693,€701€(1955),€and€legal€subrogation€whichÏarises€by€operation€of€law€based€on€general€principles€of€equity€and€justice.€€òòSeeÏÔ_ÔWimberlyÔ_Ô€v.€American€Ô_ÔCasÔ_Ô.€Co.óó,€584€S.W.2d€200,€203€(Tenn.€1979).€€BothÏconventional€and€legal€subrogation€provide€the€same€remedy.€€òòSee€Ô_ÔCastlemanÔ_ÔÏConstr.€Co.€v.€Ô_ÔPenningtonÔ_Ôóó,€222€Tenn.€at€95,€432€S.W.2d€at€675.ÌÌà àIn€the€context€of€insurance,€the€general€rule€is€that€an€insurer,€upon€payingÏa€loss,€is€Ô_ÔsubrogatedÔ_Ô€in€a€corresponding€amount€to€its€insuredððs€right€of€actionÏagainst€the€third€party€whose€negligence€caused€the€loss.€€òòSee€Miller€v.€Russellóó,Ï674€S.W.2d€290,€291€(Tenn.€Ct.€App.€1983);€6A€John€A.€Ô_ÔApplemanÔ_Ô€&€JeanÏÔ_ÔApplemanÔ_Ô,€òòInsurance€Law€and€Practiceóó€ðð€4051,€at€103€(1972).€€This€rule€appliesÏwhether€the€insurer€has€paid€all€or€a€part€of€its€insuredððs€loss.€€òòSee€Miller€v.ÏRussellóó,€674€S.W.2d€at€291;òò€see€also€Max€of€Switzerland,€Inc.€v.€Ô_ÔAllrightÔ_Ô€Corp.óó,Ï930€P.2d€1010,€1013€(Ariz.€Ct.€App.€Ñ  ÑÑ Ü ÑÑ ° Ñ1997);€òòSouthern€Farm€Bureau€Cas.€Ins.€Co.Ïv.€Ô_ÔSonnierÔ_Ôóó,€406€So.2d€178,€179„80€(La.€1981);€15€Patrick€D.€Kelly,€òòÔ_ÔBlashfieldÔ_ÔÏAutomobile€Law€and€Practiceóó€ðð€483.1,€at€160„61€(3d€ed.€1969).ÌÌà àUnder€Tennesseeððs€version€of€the€subrogation€doctrine,€an€insurer€cannotÏinvoke€its€subrogation€rights€until€its€insured€has€been€made€whole.€€òòSeeÏÔ_ÔWimberlyÔ_Ô€v.€American€Ô_ÔCasÔ_Ô.€Co.óó,€584€S.W.2d€at€203;€òòMullins€v.€Ô_ÔParkeyÔ_Ôóó,€874ÏS.W.2d€12,€14„15€(Tenn.€Ct.€App.€1992).€€In€determining€whether€an€insured€hasÏbeen€ð ðmade€wholeðð€the€courts€should€consider€not€just€the€payments€made€to€theÏinsured€by€the€insurance€company,€but€also€the€payments€to€the€insured€by€or€onÏbehalf€of€the€party€or€parties€whose€fault€caused€the€insuredððs€injuries€or€damage.€ÏòòSee€Ô_ÔEastwoodÔ_Ô€v.€Glens€Falls€Ins.€Co.óó,€646€S.W.2d€156,€158€(Tenn.€1983);ÏòòÔ_ÔFiremansÔ_Ôðð€Fund€Ins.€Co.€v.€Ô_ÔRankinsÔ_Ôóó,€No.€88„1117„II,€1988€WL€85482,€at€*1Ï(Tenn.€Ct.€App.€Aug.€12,€1988)€(No€Tenn.€R.€App.€P.€11€application€filed).€€€ÌÌà@ àò òB.ó óÌÌà àShelter€advances€two€alternative€theories€for€its€subrogation€claim.€€First,€itÏasserts€that€it€is€entitled€to€conventional€subrogation€based€on€the€subrogationÏprovision€in€its€automobile€insurance€policy.€€This€provision€states€thatÌÓÓà8 àà8 àIn€the€event€of€any€payment€under€COVERAGES€A,€B,ÏE,€F,€or€G€of€this€policy,€or€under€any€other€coverageÏwhere€permitted€by€applicable€law,€we€will€beÏÔ_ÔsubrogatedÔ_Ô€to€all€rights€of€recovery€for€which€theÏinsured€or€any€person€receiving€the€payment€may€haveÏagainst€any€person€or€organization.€€The€Insured,€orÏsuch€person,€shall€execute€and€deliver€instruments€andÏpapers€and€do€whatever€else€is€necessary€to€secure€suchÏrights.€€The€Insured,€or€such€person,€shall€do€nothingÏafter€loss€to€prejudice€these€rights.ÌÌÓ€ÓShelterððs€$1,841.67€payment€to€Ms.€Waller€was€required€by€Coverage€C× ƒ6 ××  ×€of€itsÏpolicy.€€Even€though€Coverage€C€is€not€specifically€mentioned€in€the€subrogationÏprovision,€Shelter€asserts€that€Coverage€C€is€included€because€it€is€ð ðotherÏcoverage€.€.€.€permitted€by€applicable€law.ðð€€Ms.€Waller€responds€that€theÏomission€of€Coverage€C€reflects€the€partiesðð€intent€not€to€extend€subrogationÏrights€to€payments€under€Coverage€C.ÌÌà àThe€interpretation€of€a€written€agreement€involves€a€question€of€law.€€òòSeeÏÔ_ÔHardemanÔ_Ô€County€Bank€v.€Ô_ÔStallingsÔ_Ôóó,€917€S.W.2d€695,€699€(Tenn.€Ct.€App.€1995);ÏòòÔ_ÔRaineyÔ_Ô€v.€Ô_ÔStansellÔ_Ôóó,€836€S.W.2d€117,€118€(Tenn.€Ct.€App.€1992).€€Courts€willÏinterpret€these€agreements€as€written,€òòsee€Ô_ÔWhaleyÔ_Ô€v.€Underwoodóó,€922€S.W.2dÏ110,€112€(Tenn.€Ct.€App.€1995);òò€Hillsboro€Plaza€Enters.€v.€Moonóó,€860€S.W.2dÏ45,€47€(Tenn.€Ct.€App.€1993),€and€will€give€contractual€terms€their€natural€andÍordinary€meaning€in€light€of€the€context€in€which€they€are€used.€€òòSee€Wilson€v.ÏMooreóó,€929€S.W.2d€367,€373€(Tenn.€Ct.€App.€1996);€òòÔ_ÔGredigÔ_Ô€v.€TennesseeÏFarmers€Mut.€Ins.€Co.óó,€891€S.W.2d€909,€912€(Tenn.€Ct.€App.€1994).€€ÌÌà àThe€courts€should€construe€contracts€reasonably,€òòsee€Ô_ÔACGÔ_Ô,€Inc.€v.ÏSoutheast€Elevator,€Inc.óó,€912€S.W.2d€163,€168€(Tenn.€Ct.€App.€1995);€òòSetters€v.ÏPermanent€Gen.€Assurance€Corp.óó,€937€S.W.2d€950,€953€(Tenn.€Ct.€App.€1996),Ïand€should€avoid€making€a€new€contract€for€parties€who€have€already€spoken€forÏthemselves.€€òòSee€Hillsboro€Plaza€Enters.€v.€Moonóó,€860€S.W.2d€at€47.€€If€aÏcontract€contains€an€ambiguous€provision,€the€courts€should€strive€for€anÏinterpretation€that€gives€the€fullest€possible€effect€to€the€partiesðð€intentions€asÏreflected€in€the€language€of€the€contract.òò€€See€Ô_ÔRaineyÔ_Ô€v.€Ô_ÔStansellÔ_Ôóó,€836€S.W.2d€atÏ118„19.€€However,€ambiguities€should€be€construed€most€strongly€against€theÏparty€who€drafted€the€contract.€€òòSee€Ô_ÔHarrellÔ_Ô€v.€Minnesota€Mut.€Life€Ins.€Co.óó,€937ÏS.W.2d€809,€814€(Tenn.€1996);€òòHanover€Ins.€Co.€v.€Ô_ÔHaneyÔ_Ôóó,€221€Tenn.€148,€153,Ï425€S.W.2d€590,€592€(1968);€òòTravelers€Ins.€Co.€v.€Aetna€Ô_ÔCasÔ_Ô.€&€Sur.€Co.óó,€491ÏS.W.2d€363,€365€(Tenn.€1973).€€ÌÌà àAfter€reviewing€the€subrogation€provision€objectively,€òòsee€Richards€v.ÏTayloróó,€926€S.W.2d€569,€571€(Tenn.€Ct.€App.€1996),€we€have€determined€that€itÏis€capable€of€more€than€one€interpretation.€€On€one€hand,€the€language€makingÏthe€clause€applicable€to€ð ðany€other€coverage€where€permitted€by€lawðð€favorsÏincluding€payments€to€an€insured€under€Coverage€C€within€the€subrogationÏagreement.€€On€the€other€hand,€however,€the€specific€mention€of€Coverages€A,€B,ÏE,€F,€and€G€could€reasonably€mean€that€the€parties€intended€that€payments€underÏcoverages€other€than€the€five€mentioned€would€not€be€subject€to€claims€forÍsubrogation€under€the€policy.€€òòSee€Ô_ÔS.M.R.Ô_Ô€Enters.,€Inc.€v.€Southern€Ô_ÔHaircuttersÔ_Ô,ÏInc.óó,€662€S.W.2d€944,€949€(Tenn.€Ct.€App.€1983)€(holding€that€where€a€contract,Ïby€its€express€terms,€includes€one€or€more€things€of€a€class,€it€simultaneouslyÏimplies€the€exclusion€of€the€balance€of€that€class).ÌÌà àShelter€could€have€easily€included€Coverage€C€with€the€other€fiveÏcoverages€specifically€mentioned€in€its€policyððs€subrogation€provision.€€BecauseÏShelter€failed€to€do€so,€we€conclude€that€it€did€not€intend€to€obtain€conventionalÏsubrogation€rights€for€payments€under€Coverage€C.€€This€interpretation€isÏconsistent€with€our€obligation€to€construe€ambiguous€terms€in€insurance€policiesÏin€favor€of€the€insured.€€òòSee€Tennessee€Farmers€Mut.€Ins.€Co.€v.€Ô_ÔWittÔ_Ôóó,€857ÏS.W.2d€26,€___€(Tenn.€1993);€òòOmaha€Property€&€Cas.€Ins.€Co.€v.€Johnsonóó,€866ÏS.W.2d€539,€541€(Tenn.€Ct.€App.€1993).€€Ms.€Waller€had€no€specific€notice€inÏher€policy€that€Shelter€could€attempt€to€recover€from€her€any€payments€made€forÏmedical€expenses€advanced€under€Coverage€C.€€Accordingly,€we€find€thatÏShelterððs€automobile€insurance€policy€does€not€support€a€claim€for€conventionalÏsubrogation€with€regard€to€payments€made€pursuant€to€Coverage€C.× ƒ7 ××  ×ÌÌà àShelterððs€second€theory€is€that€it€is€entitled€to€legal€subrogation€even€if€itÏhas€not€made€out€a€claim€for€conventional€subrogation.€€It€asserts€that€it€stands€inÏthe€shoes€of€Ms.€Waller€to€the€extent€of€the€$1,841.67€it€paid€in€response€to€herÏclaims€for€medical€expenses€under€Coverage€C.€€In€order€to€be€entitled€to€legalÏsubrogation,€Shelter€must€demonstrate€that€Ms.€Waller€has€been€ð ðmade€wholeððÍwith€regard€to€the€medical€expenses€she€incurred€as€a€result€of€the€collision€withÏMr.€Ammon.€€Ms.€Waller€vigorously€asserts€that€she€has€not€been€made€whole.€ÏThus,€Shelterððs€right€to€legal€subrogation€can€succeed€only€if€Shelter€can€proveÏ(1)€that€it€made€a€payment€to€Ms.€Waller€for€medical€expenses€that€should€haveÏbeen€paid€by€the€original€defendants€and€(2)€that€the€funds€Ms.€Waller€received€inÏher€settlement€with€the€Ñ  ÑÑ d ÑÑ À Ñoriginal€defendants,€together€with€the€funds€it€paid€to€Ms.ÏWaller,€have€made€Ms.€Waller€whole.ÌÌà àShelter€used€a€ð ðloan€receiptðð€transaction€when€it€paid€Ms.€Waller€theÏ$1,841.67€for€her€medical€expenses.€€When€it€tendered€the€funds,€it€required€Ms.ÏWaller€to€sign€a€loan€receipt€for€$1,841.67€containing€an€agreement€to€repayÏShelter€if€she€recovered€from€the€original€defendants€as€a€result€of€the€April€24,Ï1992€accident.€€Deciding€whether€to€characterize€this€transaction€as€a€loan€or€aÏpayment€is€significant.€€If€it€is€a€loan,€it€will€not€support€a€claim€for€subrogationÏbecause€it€is€not€a€ð ðpaymentðð€of€an€obligation€for€which€another€is€primarilyÏliable.€€òòSee€Central€Ô_ÔNatððlÔ_Ô€Ins.€Co.€v.€Dixonóó,€559€P.2d€1187,€1188„89€(Nev.€1977);ÏòòState€Farm€Mut.€Auto€Ins.€Co.€v.€Weeóó,€196€N.W.2d€54,€57€(N.D.€1971).€ÏHowever,€a€loan€receipt€transaction€that€is€essentially€a€payment€will€support€aÏclaim€for€legal€subrogation.€€òòSee€Ô_ÔDemingÔ_Ô€&€Co.€v.€Merchantsðð€Cotton„Press€&ÏStorage€Co.óó,€90€Tenn.€306,€332,€17€Ô_ÔS.W.Ô_Ô€89,€94€(1891);òò€see€also€Executive€JetÏAviation,€Inc.€v.€United€Statesóó,€507€F.2d€508,€511„13€(6th€Cir.€1974)€(applyingÏOhio€law);€òòMut€v.€Newark€Ins.€Co.óó,€289€So.€2d€237,€249„50€(La.€Ct.€App.€1973);Ï6A€John€A.€Ô_ÔApplemanÔ_Ô€&€Jean€Ô_ÔApplemanÔ_Ô,€òòInsurance€Law€and€Practiceóó€ðð€4051,Ï114„15€(1972).€€The€partiesðð€intentions€govern€whether€a€loan€receipt€transactionÏis€a€payment€or€a€loan€for€the€purposes€of€a€subrogation€claim.€€òòSee€Ô_ÔRatcliffÔ_Ô€v.ÏSmithóó,€298€S.W.2d€18,€20€(Ky.€Ct.€App.€1957).ÌÌà àUnder€the€undisputed€facts€of€this€case,€we€find€that€Shelterððs€payment€ofÏ$1,841.67€to€Ms.€Waller€was€a€payment€rather€than€a€loan.€€Ms.€Waller€did€notÏmake€an€unconditional€promise€to€repay€the€funds.€€By€the€terms€of€the€loanÏreceipt,€she€was€obligated€to€repay€the€money€only€if€she€recovered€from€theÏthird€party€who€was€primarily€liable€for€her€injuries.€€In€addition,€the€loanÏreceipt€did€not€require€repayment€on€a€date€certain€and€did€not€require€theÏpayment€of€interest€on€the€funds€advanced.€€Based€on€these€facts,€ShelterððsÏpayment€of€$1,841.67€to€Ms.€Waller€can€support€a€claim€for€legal€subrogation.€€ÌÌà àIn€order€to€be€entitled€to€legal€subrogation,€Shelter€must€still€demonstrateÏthat€Ms.€Waller€has€been€made€whole€with€regard€to€the€risk€for€which€sheÏobtained€insurance.€€In€this€case,€Shelter€was€obligated€to€indemnify€Ms.€WallerÏfor€up€to€$5,000€of€her€medical€expenses€resulting€from€the€accident.€€Ms.€WallerÏreceived€$15,000€in€her€settlement€with€the€original€defendants€in€addition€to€theÏ$1,841.67€she€received€from€Shelter.€€Thus,€we€must€determine€whether€Ms.ÏWallerððs€receipt€of€$16,841.67€has€made€her€whole€with€regard€to€her€medicalÏexpenses.ÌÌà àThe€record€does€not€contain€a€copy€of€the€settlement€agreement€betweenÏMs.€Waller€and€the€original€defendants.€€Thus,€we€cannot€determine€whether€theÏparties€to€the€settlement€undertook€to€allocate€the€settlement€proceeds€toÏparticular€damage€claims€or€whether€they€intended€for€the€settlement€to€coverÏMs.€Wallerððs€claims€for€medical€expenses.€€This€matter€must€be€addressed€by€theÏtrial€court€on€the€remand€of€this€case.€€If€the€settlement€proceeds€were€notÏintended€to€be€applied€to€Ms.€Wallerððs€medical€expense€claims,€then€she€may€notÏhave€been€made€whole,€and€Shelter€would€not€be€entitled€to€legal€subrogation€forÏ$1,841.67.ÌÌà àIf€the€settlement€agreement€between€Ms.€Waller€and€the€original€defendantsÏis€silent€with€regard€to€the€allocation€of€the€settlement€proceeds€or€purpose€of€theÏsettlement,€then€the€trial€court€must€conclude€that€the€settlement€was€intended€toÏresolve€all€of€Ms.€Wallerððs€claims€against€the€original€defendants.€€These€claimsÏwould€necessarily€include€Ms.€Wallerððs€medical€expense€claims€because€herÏcomplaint€against€the€original€defendants€alleges€that€she€ð ðsustained€injury€to€theÏmuscles€and€ligaments€of€the€neck€and€back€with€acute€sprain€or€strainðð€and€thatÏshe€ð ðhas€incurred€large€medical€bills€and€expenses€in€the€treatment€and€diagnosisÏof€her€injuries.ðð€€No€conclusion€can€be€drawn€from€these€allegations€other€thanÏthat€Ms.€Waller€was€seeking€to€recover€her€medical€expenses€from€the€originalÏdefendants.€€Accordingly,€her€settlement€that€ð ðin€all€respectsðð€dismissed€herÏclaims€against€the€original€defendants€must€have€been€intended€to€dispose€of€herÏclaim€for€medical€expenses€as€well€as€her€related€claims€for€lost€income€and€painÏand€suffering.ÌÌà àMs.€Wallerððs€settlement€with€the€original€defendants€reflects€a€tacticalÏdecision€that€accepting€the€$15,000€would€make€her€whole€for€all€her€claimsÏagainst€the€original€defendants.€€These€claims€included€her€claims€for€medicalÏexpenses.€€Because€her€medical€expenses€amounted€to€approximately€$6,800,€theÏtrial€court€must€€presume,€in€the€absence€of€evidence€to€the€contrary,€that€aÏportion€of€these€settlement€Ñ  ÑÑ Ü ÑÑ ° Ñproceeds€were€intended€to€be€applied€to€Ms.€WallerððsÏclaim€for€medical€expenses.€€Since€the€amount€of€the€settlement€exceeds€Ms.ÏWallerððs€claimed€medical€expenses,€the€trial€court€must€then€necessarily€concludeÏthat€Ms.€Waller€has€been€made€whole€for€the€medical€expenses€she€incurred€as€aÍresult€of€the€accident.€€If€she€has€been€made€whole€of€these€expenses,€then€ShelterÏis€entitled€to€the€$1,841.67€presently€being€held€by€the€clerk€of€the€trial€court.ÌÌà@ àò òIV.Ìà@ àòòMs.€Wallerððs€Claim€for€the€Unpaid€Insurance€Benefitsóóó óÌÌà àMs.€Waller€also€asserts€that€she€is€entitled€to€an€additional€$3,158.33€fromÏShelter€representing€the€difference€between€the€$5,000€limit€on€Coverage€CÏunder€her€insurance€policy€and€the€$1,841.67€actually€paid€by€Shelter.€€SheÏargues,€without€citation€to€authority,€that€Shelterððs€ð ðwait€and€see€approachðð€wasÏinconsistent€with€its€contractual€obligation€to€her€and€that€Shelterððs€failure€to€payÏher€the€policy€limits€induced€her€to€settle€with€the€original€defendants€„Ïpresumably€for€less€than€what€she€might€have€otherwise€received.ÌÌà àShelterððs€insurance€policy€obligated€it€to€pay€up€to€$5,000€in€ð ðreasonableÏexpensesðð€for€ð ðnecessary€medical€servicesðð€for€the€bodily€injuries€caused€by€theÏApril€1991€accident.€€But,€since€an€insurance€policy€is€essentially€an€indemnityÏcontract,€òòsee€Ô_ÔWattenbargerÔ_Ô€v.€Ô_ÔTullockÔ_Ôóó,€198€Tenn.€402,€405,€280€S.W.2d€925,€926Ï(1955),€Shelterððs€obligation€to€pay€Ms.€Wallerððs€reasonable€and€necessary€medicalÏexpenses€does€not€arise€if€these€expenses€are€paid€by€the€party€or€parties€whoÏcaused€Ms.€Wallerððs€injuries.ÌÌà àThe€trail€court€erred€in€granting€Ms.€Waller€a€summary€judgment€on€herÏclaim€for€$3,158.33€because€she€has€not€demonstrated€that€she€is€entitled€to€aÏjudgment€as€a€matter€of€law.€€First,€she€has€failed€to€prove€that€all€of€her€claimedÏ$6,800€in€medical€expenses€stemmed€from€the€injuries€she€sustained€in€the€AprilÍ1991€accident€and€that€they€were€necessary€and€reasonable.€€Second,€she€has€notÏdemonstrated€that€her€$15,000€settlement€with€the€original€defendants€did€notÏhave€the€legal€effect€of€compensating€her€for€these€injuries.€€If€her€settlementÏwith€the€original€defendants€included€her€claims€for€these€Ô_ÔinjuriesÔ_Ô,€she€hasÏalready€been€compensated€for€them€and€cannot€recover€twice€by€seeking€anÏadditional€$3,158.33€from€Shelter.ÌÌà@ àò òV.ó óÌÌà àWe€vacate€the€summary€judgment€awarding€Ms.€Waller€the€$1,841.67€paidÏinto€court€by€the€original€defendants€and€an€additional€$3,158.33€from€Shelter.€ÏWe€remand€this€case€to€the€trial€court€with€directions€to€determine€whether€Ms.ÏWallerððs€settlement€with€the€original€defendants€included€her€claims€for€medicalÏexpenses.€€If€the€trial€court€finds€that€it€did,€then€it€should€award€Shelter€theÏ$1,841.67€being€held€by€the€clerk,€and€it€should€dismiss€Ms.€Wallerððs€claim€forÏ$3,158.33.€€If€the€trial€court€finds€that€Ms.€Wallerððs€settlement€with€the€originalÏdefendants€did€not€include€her€medical€expense€claims,€the€trial€court€shouldÏaward€the€$1,841.67€to€Ms.€Waller€and€should€also€give€her€a€judgment€againstÏShelter€for€$3,158.88.€€We€tax€the€costs€of€this€appeal€in€equal€proportions€toÏShelter€Insurance€Company€and€its€surety€and€to€Deborah€L.€Waller€for€whichÏexecution,€if€necessary,€may€issue.ÌÌÓÓà àà àà àà àà àà àà à______________________________Ìà àà àà àà àà àà àà àWILLIAM€C.€KOCH,€JR.,€JUDGEÌÌCONCUR:ÌÌÌ_______________________________ÌSAMUEL€L.€LEWIS,€JUDGE€ÌÌÌÌ_______________________________ÌBEN€H.€Ô_ÔCANTRELLÔ_Ô,€œJUDGE›