Tennessee Consumer Protection Act
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Following its implicit holding in Morris v. Mack's Used Cars, 824 S.W.2d 538 (Tenn. 1992), the Supreme Court has ruled that the Tennessee Consumer Protection Act applies to insurance
companies, and that consumers are not limited to the remedies provided under the Tennessee bad faith statute. In Myint v. Allstate Insurance Co., 23 TAM 23-3 (6/1/98), the carrier was sued for refusing to pay a claim arising out of a commercial landlord policy. Although
the court determined that Allstate's handling of the case was not an "unfair and deceptive" act which would give rise to liability
under the act, the court nevertheless held that the act applies to the sale of insurance policies. In addition, the court
found that T.C.A. §47-14-123 applied to the facts of the case and allowed prejudgment interest to be awarded to the plaintiff
dating from the date Allstate denied the claim. The court allowed this even though there was a dispute over the value of the
property. The court ruled that the test to determine an interest award is "whether the the amount of damages is ascertainable
by computation or by any recognized standard of valuation."
© 1998 Fargarson & Brooke