TCA § 56-8-113 — Remedies and sanctions for breach of, or for alleged unfair or deceptive acts or practices in connection with, a contract of insurance

Notwithstanding any other law, title 50 and this title shall provide the sole and exclusive statutory remedies and sanctions applicable to an insurer, person, or entity licensed, permitted, or authorized to do business under this title for alleged breach of, or for alleged unfair or deceptive acts or practices in connection with, a contract of insurance as such term is defined in § 56-7-101(a) . Nothing in this section shall be construed to eliminate or otherwise affect any: Remedy, cause of action, right to relief or sanction available under common law; Right to declaratory, injunctive or equitable relief, whether provided under title 29 or the Tennessee Rules of Civil Procedure; or Statutory remedy, cause of action, right to relief or sanction referenced in title 50 or this title. Acts 2011, ch. 130, § 1. Compiler's Notes. Acts 2011, ch. 130, § 2 provided that the act, which enacted this section, shall apply to any cause of action accruing on or after April 29, 2011. NOTES TO DECISIONS 1. Common Law Remedies. 2. Applicability. 4. Punitive Damages. 1. Common Law Remedies. Tennessee General Assembly intended the scope of this statute to be limited to remedies and sanctions of a statutory nature. Consequently, the statute did not disturb the availability of common law remedies and sanctions. Lindenberg v. Jackson Nat'l Life Ins. Co., — F. Supp. 2d —, 2014 U.S. Dist. LEXIS 184081 (W.D. Tenn. Dec. 9, 2014), aff'd, 912 F.3d 348, 2018 FED App. 280P, 2018 U.S. App. LEXIS 36097 (6th Cir. Dec. 21, 2018). 2. Applicability. In an insurance coverage dispute, the trial court did not err in allowing the jury to consider the Tennessee Consumer Protection Act claim following the enactment of T.C.A. § 56-8-113 because the statute did not apply to the case since the insured was indisputably aware of sufficient facts prior to the enactment date of the statute. Riad v. Erie Ins. Exch., 436 S.W.3d 256, 2013 Tenn. App. LEXIS 712 (Tenn. Ct. App. Oct. 31, 2013), appeal denied, Riad v. Erie Ins. Exch., — S.W.3d —, 2014 Tenn. LEXIS 196 (Tenn. Mar. 4, 2014), superseded by statute as stated in, Lindenberg v. Jackson Nat'l Life Ins. Co., — F. Supp. 2d —, 2014 U.S. Dist. LEXIS 184081 (W.D. Tenn. Dec. 9, 2014). Bad Faith Statute, T.C.A. § 56-7-105 , did not comprise sole and exclusive remedy for insurer's bad faith refusal to pay claim because language of this statute indicated that Tennessee General Assembly intended only to preclude remedies and sanctions that were statutory in nature. Punitive damages were also available. Lindenberg v. Jackson Nat'l Life Ins. Co., — F. Supp. 2d —, 2014 U.S. Dist. LEXIS 184081 (W.D. Tenn. Dec. 9, 2014), aff'd, 912 F.3d 348, 2018 FED App. 280P, 2018 U.S. App. LEXIS 36097 (6th Cir. Dec. 21, 2018). Where the insurer filed a Fed. R. Civ. P. 12(b)(6) motion to dismiss the insureds' claim for punitive damages, T.C.A. § 56-7-105 did not preclude punitive damages; if the Tennessee General Assembly wished to eliminate common-law punitive damages, it did the opposite with T.C.A. § 56-8-113 . Carroll v. Nationwide Prop. & Cas. Co., — F. Supp. 2d —, 2015 U.S. Dist. LEXIS 73674 (W.D. Tenn. June 8, 2015). Initial proof of loss form was not submitted until June 22, 2011, and plaintiff was unaware of sufficient facts prior to April 29, 2011, that she had sustained injury or damages as a result of defendant's actions; plaintiff's claim accrued after April 29, 2011, rendering the statute applicable and prohibiting review of the Tennessee Consumer Protection Act claim. Lance v. Owner's Ins. Co., — S.W.3d —, 2016 Tenn. App. LEXIS 369 (Tenn. Ct. App. May 25, 2016), appeal denied, Lance v. Owners Ins. Co., — S.W.3d —, 2016 Tenn. LEXIS 762 (Tenn. Oct. 20, 2016). 4. Punitive Damages. Statute does not prohibit recovery of bad faith or common law punitive damages; in this case, the evidence was insufficient to support an award of punitive damages regarding defendant's handling of plaintiff's claim, as the results of the investigation supported defendant's honest and good faith belief that plaintiff was somehow involved in setting the fire. Lance v. Owner's Ins. Co., — S.W.3d —, 2016 Tenn. App. LEXIS 369 (Tenn. Ct. App. May 25, 2016), appeal denied, Lance v. Owners Ins. Co., — S.W.3d —, 2016 Tenn. LEXIS 762 (Tenn. Oct. 20, 2016). District court denied an insurer's motion to dismiss its insured's punitive damages claims because the Tennessee Supreme Court would rule that neither the bad-faith statute, T.C.A. § 56-7-105 , nor this section vitiated a properly pled common law claim for punitive damages in a breach of contract action. Northend Investors, LLC v. Southern Trust Iin. Co., — F. Supp. 2d —, 2017 U.S. Dist. LEXIS 88638 (W.D. Tenn. June 9, 2017).