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Ellers, Oakley, Chester, and Rike, Inc. v. DPIC Companies Security Insurance Company of Hartford

Citation: Not availableDocket: 02A01-9501-CV-00008

Court: Court of Appeals of Tennessee; June 4, 1996; Tennessee; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

In a dispute involving a professional liability insurance policy, the Court of Appeals of Tennessee reviewed an appeal by Ellers, Oakley, Chester, Rike, Inc. against Security Insurance Company of Hartford. Ellers argued that multiple counterclaims from two companies should be treated as a single claim under their policy, thereby incurring only one deductible. Security Insurance contended that the counterclaims should be treated separately, leading to multiple deductibles, but stated that no second deductible had been imposed. The trial court granted summary judgment in favor of Security, finding no material factual disputes. On appeal, the appellate court conducted a de novo review and affirmed the trial court’s decision, citing insufficient evidence from Ellers to substantiate their claims. The appellate court also assigned the costs of the appeal to Ellers. This case underscores the importance of clear policy language in determining the treatment of claims and the stringent standards required to overturn a summary judgment on appeal.

Legal Issues Addressed

Costs Taxation on Appeal

Application: The appellate court taxed the costs of the appeal to the appellant, Ellers.

Reasoning: Consequently, the court affirmed the trial court’s decision, with costs taxed to the Appellant.

De Novo Review on Appeal

Application: The appellate court conducted a de novo review and affirmed the trial court's decision due to insufficient evidence from the appellant.

Reasoning: On appeal, the court conducted a de novo review and determined that there was insufficient evidence to support Ellers' claims regarding the deductibles.

Interpretation of Insurance Policy Terms

Application: The court addressed whether multiple counterclaims should be treated as a single claim under the professional liability insurance policy.

Reasoning: Ellers had contracted to provide services to two companies and faced counterclaims from them, which Ellers believed should be treated as a single claim for insurance purposes.

Summary Judgment Standard

Application: The court found no material disputes of fact and granted summary judgment in favor of Security Insurance Company.

Reasoning: The trial court found no material fact disputes and granted Security’s motion for summary judgment.