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State v. AAA Aaron's Action Agency

Citation: Not availableDocket: 01C01-9608-CR-00348

Court: Court of Criminal Appeals of Tennessee; September 30, 1997; Tennessee; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

The case involves AAA Aaron’s Action Agency's appeal against the Davidson County Criminal Court's mandate requiring it to post a Deed of Trust or liquid assets to qualify as a professional bondsman. This appeal questioned whether the requirement was arbitrary and capricious. The court affirmed the trial court's judgment, emphasizing its discretion under local rules to set qualifications and additional asset mandates beyond statutory requirements. The agency, backed by American Bankers Insurance Company of Florida, which provides a power of attorney and guarantees bonds up to $500,000, contended that the order conflicted with a previous ruling, In re Dale R. Kelley. However, the court found the prior case inapplicable, as it dealt with state-approved companies' operations, not local court mandates. The court underscored its authority to regulate bonding companies to ensure equitable treatment and secure the collection of forfeitures, validating the need for liquid assets. Consequently, the trial court's decision was upheld, confirming the order's non-arbitrary nature and reinforcing the court's regulatory prerogatives over bail bond operations.

Legal Issues Addressed

Authority of Trial Courts in Bond Regulation

Application: Trial courts have the authority to regulate who may write bonds and can impose reasonable regulations to ensure compliance.

Reasoning: The court affirms its authority to regulate who may write bonds, supported by precedent indicating that trial courts can impose reasonable regulations.

Compliance with Insurance and Bond Regulations

Application: Professional bail bondsmen are excluded from insurance laws, but must still meet local bonding capacity requirements.

Reasoning: The court recognized compliance with the Tennessee Department of Commerce and Insurance regulations but clarified that professional bail bondsmen are excluded from insurance laws.

Non-Arbitrariness of Court Orders

Application: The trial court’s judgment was upheld as neither arbitrary nor capricious in its requirements for the bonding company.

Reasoning: The trial court’s judgment is upheld as neither arbitrary nor capricious.

Precedential Limitation in Bonding Operations

Application: The court rejected the appellant's argument that a prior ruling limited bonding operations to state-approved companies.

Reasoning: The Appellant's argument that the Davidson County Criminal Court's order contradicts a prior ruling in In re Dale R. Kelley is rejected, as that case addressed a policy limiting bail bond operations to state-approved companies, which the current court finds does not apply here.

Regulation of Professional Bondsmen

Application: The court has the authority to set qualifications and impose additional asset requirements for bonding companies beyond statutory obligations.

Reasoning: Local rules allow the court to determine bonding company qualifications and impose additional asset requirements beyond statutory obligations.

Requirement of Liquid Assets for Bonding Authorization

Application: The court required the agency to post either a Deed of Trust or liquid assets to ensure the collection of forfeitures if the insurance company ceased operations.

Reasoning: Concerns regarding the collection of forfeitures if the insurance company ceased operations were deemed valid, justifying the requirement for liquid assets to be held by the court.