Donald K. Nelson v. Gerald E. Nelson
2013 Tenn. App. LEXIS 124
Tenn. Ct. App.2013Background
- Plaintiff Nelson, Texas resident, sued in Tennessee for injuries from a Chattanooga accident involving a Georgia Defendant.
- Plaintiff’s GEICO policy in Texas provides $50,000 UM coverage; his employer’s Republic policy in Texas also provides UM coverage.
- Dispute centers on whether Tennessee’s arbitration provisions in Tenn. Code Ann. §56-7-1206 apply to UM provisions in out-of-state policies.
- Trial court held that the arbitration provisions apply despite Texas-issued policies; it ordered arbitration.
- Republic and GEICO sought interlocutory review; the appellate court granted Rule 9 relief and reviewed de novo.
- Court held that the Tennessee UM arbitration provisions do not apply to policies issued and delivered in Texas.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Tenn. Code Ann. §56-7-1206 applies to UM policies issued/delivered outside Tennessee | Nelson argues the statute governs in-state and out-of-state UM coverage tied to Tennessee acts | Republic and GEICO argue the statute restricts arbitration to Tennessee-issued policies | Arbitration provisions do not apply to Texas-issued policies |
Key Cases Cited
- Burns v. Aetna Cas. & Sur. Co., 741 S.W.2d 318 (Tenn. 1987) (Tennessee law governs contract choice of law in insurance disputes)
- U.S. Bank, N.A. v. Tenn. Farmers Mut. Ins. Co., 277 S.W.3d 381 (Tenn. 2009) (statutory interpretation; effectuation of legislative intent in UM provisions)
- In re Estate of Trigg, 368 S.W.3d 483 (Tenn. 2012) (statutory interpretation; de novo review of questions of law)