Ted C. Smith v. Shelby Insurance Company

Susano, J. This is a declaratory judgment action. The complaint seeks a declaration that a loss caused by damage to the plaintiff's building is covered under a commercial property insurance policy issued by The Shelby Insurance Company (Shelby). Following a bench trial, the Chancellor held that there was coverage under the policy and awarded the plaintiff a judgment for $12,352.92. Shelby appeals, arguing that there is no coverage because the premises were vacant at the time of the loss. It also argues that the loss is not covered because the policy excludes coverage for damages ""caused by or resulting from theft."" The plaintiff, Ted C. Smith (Smith), raises, as an additional issue, the failure of the trial court to award the statutory bad faith penalty authorized by T.C.A. § 56-7-105(a).