Lineberryv.State Farm Fire Cas. Co.

United States District Court, M.D. Tennessee, Nashville DivisionApr 4, 1995

William Edward Farmer, Lebanon, TN, Susan Kerr Lee, John P. Konvalinka, Grant, Konvalinka Grubbs, P.C., Chattanooga, TN, Michael E. Galligan, Galligan Newman, McMinnville, TN, for Dewey Lineberry.

John W. Wagster, Hollins, Wagster Yarbrough, Nashville, TN, for State Farm Fire and Cas. Ins. Co.

ECHOLS, District Judge.

Presently pending before this Court are Plaintiff Lineberry's Motion for Summary Judgment, Plaintiff Robinson's Motion for Summary Judgment, and Defendant State Farm's Motion for Summary Judgment. For the reasons outlined herein, Plaintiff Lineberry's motion is GRANTED, Plaintiff Robinson's motion is GRANTED, and Defendant State Farm's motion is DENIED.

Plaintiffs, Dewey Lineberry and Bill Robinson, seek a declaratory judgment requiring State Farm Fire Casualty Co. ("State Farm") to defend and indemnify them against actions in state court pursuant to personal liability policies of insurance issued by State Farm to Lineberry and Robinson. Lineberry and Robinson originally filed these actions in the Circuit Court of Wilson County, Tennessee, but State Farm subsequently removed them to this Court. Upon their removal, the two cases were consolidated, as the underlying facts and insurance policies are identical.

Plaintiffs are currently defending four separate actions brought in the Circuit Court of Wilson County, Tennessee by four women. The allegations of all four suits are essentially the same. Lineberry apparently had sexual relationships with the four women over the period of time stated in the lawsuits. In the course of building himself a new office building, Lineberry enlisted the help of Robinson to construct a "secret" viewing room adjoining the recreation room and the restroom of Lineberry's personal office. Two-way mirrors were constructed into the walls of the recreation room and restroom so that anyone in the viewing room could look through the mirrors and observe occupants of the recreation room and bathroom without the occupants' knowledge. The occupants of the recreation room and restroom could see only their own reflections in the mirrors. Lineberry and Robinson set up a video camera in the viewing room so that the persons and activities in the recreation room and restroom could secretly be filmed through the two-way mirrors.

On occasions Lineberry brought the unsuspecting females to his office where Robinson, who was hiding in the viewing room, secretly videotaped their sexual activities. Lineberry contends this scheme was approved or suggested by his attorney as a way to preserve proof of his sexual activities in the event one of his unsuspecting female guests falsely accused him of some impropriety. He maintains that this extraordinary precaution was taken only for his own protection, and that he had no intention of disclosing the video tapes of his sexual escapades to any other person. At some later time, Lineberry and his attorney had a dispute. Subsequently, Lineberry's attorney notified the Wilson County District Attorney of Lineberry's clandestine videotaping activities. After a search warrant was obtained, Lineberry's office was searched, and the tapes were seized by local law enforcement officials. The women depicted in the videotapes were then asked to come to the Sheriff's Department, identify themselves on the videotapes, and explain their actions. All four women deny they were aware they had been filmed.

Each of the four women filed a separate lawsuit in the Circuit Court of Wilson County. The suits charge Lineberry and Robinson with outrageous conduct, intentional infliction of emotional distress, fraud or constructive fraud, misrepresentation, appropriation, and invasion of their rights to privacy. Each of the women seek recovery for humiliation, mental distress, and emotional pain  and suffering which resulted from the actions of Lineberry and Robinson.

Both Lineberry and Robinson possess personal liability umbrella insurance policies with State Farm. They contend that pursuant to the provisions of those policies, State Farm must defend and indemnify them against the claims for invasion of privacy in the four lawsuits filed in Wilson County, Tennessee.

It is undisputed that both policies contain the same language relating to a covered "loss." Pursuant to the policies, if the insureds "are legally obligated to pay damages for a loss, [State Farm] will pay [the insured's] net loss minus the retained limit." (Docket Entry No. 44, Exhibit 1 at 3.) It also is undisputed that there is no retained limit in either Lineberry's or Robinson's policy. Therefore, for any losses covered by these policies, State Farm would be liable for the entire loss, up to the policy limit.

"Loss," as defined under the terms of both policies, means "an accident that results in personal injury or property damage during the policy period." (Id. at 1 (emphasis added).) "Personal injury," in turn, is defined as:

a. bodily harm, sickness, disease, shock, mental anguish or mental injury . . .;

b. false arrest, false imprisonment, wrongful eviction, wrongful detention, malicious prosecution or humiliation;

c. libel, slander, defamation of character or invasion of rights of privacy; and

d. assault and battery.

(Id. at 2 (emphasis added).)

The policies also contain a provision which excludes coverage for intentional acts or acts which are expected. Specifically, the policies provide that State Farm:

will not provide insurance . . . for personal injury or property damage:

a. which is either expected or intended by you; or

b. to any person or property which is the result of your willful and malicious act, no matter at whom the act was directed. (Id. at 4.)

Plaintiffs contend that State Farm, having specifically insured them against losses caused by the invasion of the right to privacy, must both defend them against the claims presented in the four lawsuits and indemnify them for any damages awarded to the four women. State Farm contends it is not required to defend or indemnify against these claims because the losses were not the result of an "accident" and the claims fall within the policy's exclusion for intentional or expected acts.

Plaintiffs counter Defendant's arguments by pointing to the language in the policy which defines "personal injury" by specifically listing a number of intentional torts, including invasion of the right of privacy. In other words, the losses insured against are those resulting in personal injury, which under the policy's definition includes certain types of intentional torts. An intentional tort is a civil wrong or injury which occurs as a result of the intentional act of another person. For example, one cannot commit an act of assault and battery accidentally. Likewise, one cannot be liable for malicious prosecution without intending to prosecute the victim. Plaintiffs further contend that one cannot invade a person's privacy by accident, because invasion of the right of privacy is inherently an intentional tort. Therefore, Plaintiffs allege that State Farm insured them against damages resulting from certain specific intentional torts, namely, invasion of right of privacy. However, in a separate section of the State Farm policy, under "Exclusions," the policy excludes coverage for injuries which were "intended or expected." Plaintiffs contend these provisions result in contradictory coverage or coverage which is ambiguous or merely illusory. Plaintiffs, therefore, maintain that the policy's ambiguity should be construed against the drafter, State Farm, and in Plaintiffs' favor.

Defendant alleges that the insurance policy provisions are not contradictory and the coverage is not illusory, because an invasion of the right to privacy is not necessarily an intentional tort. If that were correct, the policy would not necessarily be ambiguous, as the policy would cover injuries resulting from unintentional invasions of the right of  privacy and would exclude those which are intentional.

Because there are no genuine disputes of material fact and the crux of the dispute is the legal interpretation of the insurance policies, the parties have agreed to have the case resolved by means of cross-motions for summary judgment. In ruling on a motion for summary judgment, this Court must construe the evidence produced in the light most favorable to the non-moving party, drawing all justifiable inferences in his or her favor. See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 255, 106 S.Ct. 2505, 2513-14, 91 L.Ed.2d 202 (1986). A party may obtain summary judgment if the evidentiary material on file shows "that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law." Fed.R.Civ.P. 56(c).

It is well-established that an insurance policy, which is nothing more than a contract between the insurance company and the insured, should be given its plain meaning. State Farm Mutual Auto. Ins. Co. v. Oliver, 406 F.2d 409, 410 (6th Cir. 1969); Purdy v. Tenn. Farmers Mut. Ins. Co., 586 S.W.2d 128, 130 (Tenn.Ct.App. 1979). However, where policy language is ambiguous, "the policy must be construed in favor of the insured and against the insurer." Purdy, 586 S.W.2d at 130; Oliver, 406 F.2d at 410; Allstate Ins. Co. v. Watts, 811 S.W.2d 883, 885 (Tenn. 1991). Exclusionary clauses are to be strictly construed against the insurer. Phillips v. Gov't Employees Ins. Co., 395 F.2d 166, 167 (6th Cir. 1968); Travelers Ins. Co. v. Aetna Casualty Sur. Co., 491 S.W.2d 363, 367 (Tenn. 1973).

There are four kinds of invasion of rights to privacy: (1) appropriation; (2) unreasonable intrusion; (3) public disclosure of private facts; and (4) false light publicity. Restatement (Second) of Torts § 652A (1977). Therefore, the inquiry regarding the necessary intent for invasion of the right to privacy requires that this Court examine all four forms of that tort. (Please look the comment section for the rest of the case)

questions

#1. The procedural history of the case/litigation (i.e. what happened since the filling of the petition/complaint within the court system including important motions and court rulings?)

#2. What is the court's decision?

Better Fitness, Inc. (BFI), manufactures exercise equipment at its plant in Freeport, Long Island. It recently designed two universal weight machines for the home exercise market. Both machines use BFI-patented technology that provides the user with an extremely wide range of motion capability for each type of exercise performed. Until now, such capabilities have been available only on expensive weight machines used primarily by physical therapists. At a recent trade show, demonstrations of the machines resulted in significant dealer interest. In fact, the number of orders that BFI received at the trade show far exceeded its manufacturing capabilities for the current production period. As a result, management decided to begin production of the two machines. The two machines, which BFI named the BodyPlus 100 and the BodyPlus 200, require different amounts of resources to produce.

The BodyPlus 100 consists of a frame unit, a press station, and a pec-dec station. Each frame produced uses 4 hours of machining and welding time and 2 hours of painting and finishing time. Each press station requires 2 hours of machining and welding time and 1 hour of painting and finishing time, and each pec-dec station uses 2 hours of machining and welding time and 2 hours of painting and finishing time. In addition, 2 hours are spent assembling, testing, and packaging each BodyPlus 100.

The BodyPlus 200 consists of a frame unit, a press station, a pec-dec station, and a leg- press station. Each frame produced uses 5 hours of machining and welding time and 4 hours of painting and finishing time. Each press station requires 3 hours of machining and welding time and 2 hours of painting and finishing time, each pec-dec station uses 2 hours of machining and welding time and 2 hours of painting and finishing time, and each leg-press station requires 2 hours of machining and welding time and 2 hours of painting and finishing time. In addition, 2 hours are spent assembling, testing, and packaging each BodyPlus 200.

For the next production period, management estimates that 500 hours of machining and welding time; 350 hours of painting and finishing time; and 120 hours of assembly, testing, and packaging time will be available.

The net retail price of the BodyPlus 100 and the BodyPlus 200 are $350 and $445,respectively. Although some flexibility may be available to BFI because of the unique capabilities of the new machines. Authorized BFI dealers can purchase machines for 70% of the suggested retail price. BFI’s president believes that the unique capabilities of the BodyPlus 200 can help position BFI as one of the leaders in high-end exercise equipment. Consequently, she states that the number of units of the BodyPlus 200 produced must be at least 35% of the total production of BodyPlus 100.

Analyze the production problem at Better Fitness, Inc., and prepare a report for BFI’s president presenting your findings and recommendations. The report should include the following items:

• The recommended number of BodyPlus 100 and BodyPlus 200 machines (In other words, find the optimal level of production for BodyPlus 100 and BodyPlus 200 using linear programming model).
  • Objective function: Total profit
  • BodyPlus 200 requirement constraint
  • Non-negativity constraint
  • Time Constraint:
    • Machining & Welding
    • Painting & Finishing
    • Assembly, Test, and Packaging
• The effect on profits of the requirement that the number of units of the BodyPlus 200 produced must be at least 25% of the total production of BodyPlus 100. where efforts should be expended in order to increase contribution to profits
• Include a copy of your linear programming model

To the expert that requested additional information. There is not more information. This is the question in its entirety. This is for a quantitative business modeling class in which we need to use excel’s solver tool. Please provide step by step instructions.

Hypothesis test of one mean

1. A random sample of eight students participated in a psychological test of depth perception. Two markers, one labeled A and the other B, were arranged at a fixed distance apart at the far end of the laboratory. One by one the students were asked to judge the distance between the two markers at the other end of the room. The sample data (in feet) were as follows:

2.2, 2.3, 2.7, 2.4, 1.9, 2.4, 2.5, 2.6

At the alpha =0.05 level of significance, test if the mean distance is more than 2 feet

1. State the null and alternative hypothesis.
2. Give the p-value
3. Give a conclusion for the hypothesis test.
4. Find a 95% Confidence Interval.
5. Write a conclusion for the confidence interval

Hypothesis test of two means

2. A random sample of non-English majors at a selected college was used in a study to see if the student retained more from reading a 19^th century level novel or by watching it in DVD form. Each student was assigned one novel to read and a different one to watch, and then they were given a hundred point quiz on each novel. The test results are shown:

DVD          90 82 85 95 70 75 85

BOOK       95 85 95 75 85 95 84

Alpha = 0.05, can it be concluded that the DVD scores are less than the BOOK?

1. State the null and alternative hypothesis.
2. Give the p-value.
3. Give a conclusion for the hypothesis test.

Hypothesis test of one proportion

3. The national average for the percentage of high school graduates taking the SAT is 49%. A random sample of 300 high school graduating seniors were polled across a particular tri state area, and it was found that 195 had taken the SAT.

At alpha = 0.05 level of significance, does the proportion of high school graduates who take the SAT in this area agree with the national average?

1. State the null and alternative hypothesis.
2. Give the p-value.
3. Give a conclusion for the hypothesis test.
4. Find a 95% Confidence Interval.
5. Write a conclusion for the confidence interval.

Hypothesis test of two proportions

4. The drug Prevnar is a vaccine meant to prevent certain types of bacterial meningitis. It is typically administered to infants starting around two months old. In a randomized doubled-blind clinical trials of Prevnar, infants were randomly divided into two groups. Group 1 received Prevnar while Group 2 received a control vaccine. After the second dose, 137 of 452 subjects in group 1 effect experienced drowsiness as a side effect. After the second dose, 31 of 99 subjects in Group 2 experienced drowsiness as a side effect. Does the evidence suggest that there is a different proportion between the groups at alpha =0.05 level of significance?

(a) State the null and alternative hypothesis

(b) Give the p-value

(c) Give a conclusion for the hypothesis test.

Anything that can be used for the payment of goods and services is defined as

A) finance.

B) commerce.

C) money.

D) a medium.

E) value.

Accounting refers to the process of

A) recording, measuring, and interpreting financial information.

B) producing goods and services.

C) forecasting income and expenses for a set period of time.

D) moving money through an organization on a daily basis.

E) developing promotional plans.

Google can use web searches done through its search engine to learn about customer interests. This underlies the ________ aspect of digital communication.

A) control

B) addressability

C) connectivity

D) accessibility

E) interactivity

Before introducing a new product, a prototype is created at the ________ stage.

A) idea development

B) product commercialization

C) test marketing

D) product development

E) idea generation

Through ________, marketers ascertain the need for new goods and services.

A) selling activities

B) grading activities

Network Press, a printing business, posts an advertisement inviting applicants to pursue a role as a graphic designer. The company specifies that the job will involve illustrating content by designing aesthetically tasteful layouts. This is an example of a job

A) appraisal.

B) description.

C) enquiry.

D) analysis.

E) specification

C) marketing research

D) promotions

E) campaigns

Brandon works as an electrician, going into people's homes and offices to set up and repair electrical systems. When he sees a dangerous condition, he reports it to the home or business owner immediately and begins working to fix the situation. He wears safety goggles and gloves while he is working, and he has a comprehensive insurance plan with income protection in the event that he becomes unable to work. Brandon's actions are most related to Maslow's ________ needs.

A) security

B) social

C) physiological

D) self-actualization

E) esteem

A consumer electronics company is deciding what new products to manufacture and for what group of customers. Once that information has been decided, it will have to determine what processes it needs to make these products, as well as the facilities it needs to produce them. These decisions comprise ________ planning.

A) enterprise resource

B) human resource

C) succession

D) material-requirements

E) operations

________ is the division of labor into small, specific tasks and the assignment of employees to do a single task.

A) Specialization

B) Job rotation

C) Accountability

D) Outsourcing

E) Centralization

Hiring people to carry out the work of an organization is known as

A) factoring.

B) bartering.

C) staffing.

D) controlling.

E) directing

Certificates of deposit (CDs) are accounts with funds that usually cannot be withdrawn without advance notice and/or have limits on the number of withdrawals per period.

Group of answer choices

True

False

Choose the FALSE statement:

A)The Hox genes represent an example of genes that code for process rather than product; their significance to the Cambrian explosion is that bilateral symmetry did not have to evolve independently in each animal group, rather all Cambrian phyla could evolve quickly based on this homology.

B) The Galapagos finches represent an example of microevolutionary change; recent evidence has shown that such changes occur much faster than Darwin ever imagined.

C) Modern molecular biology has shown that macroevolutionarychange occurs very slowly in nature because it involves the accumulation of many mutations and novel genes, gradually yielding new, genetically unique forms in a step-by-step fashion over long periods of time.

5. Math Quiz

Make a math quiz showing 3 sections on screen. One with a countdown timer, one with a random multiplication question, and one with a total score. Answers will be submitted on an answer button press. Tally will be updated every submission. Failure to answer within the countdown timer will advance to the next question.

Do not use obtrusive javascript code

Access the Bank of Canada web site to answer the four parts below.

1. [5 marks] Visit the “Statistics” tab to locate data (under Indicators) on the recent history of the following groups of monetary variables: (i) inflation control target; (ii) policy instrument; and (iii) monetary aggregates. Present monthly data of each set of variables in tabular form from January 2019 to January 2020 inclusive. (Please do not print the table directly from the website, Make a neat and precise one page table for only the months required, An MS Excel table is ideal to do this neatly and compactly.)

2. [9 marks] Explain in detail what each variable represents, use Bank of Canada’s website to find the answer to this question.

3. [9 marks] Explain the economic reasons for the evolution in the variables from January 2019 to January 2020 inclusive.

4. [7 marks] Find the Bank’s latest press release (June 2020) about overnight rates and explain why the Bank decided to change (or not to change) its target for the overnight rate. Be sure to explain the details about COVID-19. Attach the press release to your answer.