ÿWPCD' zû"C…Á¯/EúÉ£¿ÈIU |.EúYu†;ÆGè÷`º‹ ÷Íbƒà%†cRáq¯ýÖû¨GýN•Ø9QÝGüÜìZ˜ÜPDþzèÒËw|FK›µÝXƒÆ}ëœr½ìñ­OÝ©s®uH¤#ÅKtC!c‰ëž=ÐMc72’¾+×ݳà¥^K»òk–QÛï£g'X ø.A?8¼¬Vok%+AÚì§”ÁgçÄÞíz§½ebõ£›c·÷w6ñb|0Ú:Ãàã'Š®}‹f0¾·‹³6‚ µ;ìÉ È¥rߣy|}³B?û›/ªuô'0eL‰s;)Q]:¡ßn¸6¡Áofpì¨%ŠêJÜ)ñ3ÎjŸTÊ‹ˆ q4Üàu‹wÁ†oF^ê"`Ø;"»>DÖµÊj"§§”[Í0lŠc…¶œägù?æêŠÄ@,ÄøÝ ø[¢g øïÌzÔÞ$}Óø‹­4}€VÝŸ™Æn샲ŽB7Ä>¢‚/…?ha@ ´=ü\KÖ8œ^Ò†.wUš>¸2'Ù8JQÅ §ýÒRã,i …Úù22šµ±º’Ôt3"AáŒ-JuW´ ‹”Pº,©žN„íÄÏîÑ/mÿsb#É\ %% UN+ 0ˆy UN ^ O ª[ zÒ¦Q÷w 0DÆXÆÆäƪ4pN„&†c¬ E"" " m""""""""""""""""""""""""""""""""""""""""""b9"9"9"9"9"9"9"9"9"9"9"9"9"9"9"9"9"9"9"9"9"9"9"9"9"9"9"9"9"9"9"9"9"9"9"9" 0ëA"A"A"A" B,#,# 0¤I# D3í# D- $ 0KM$M$ AS˜$Æë$ 0¤±% 0DU& A«™&˜HP LaserJet 4250 PCL 5eÈÈ,,,,ÈÈ0»(ÖÃ9 Z‹6Times New Roman Regular(`£ª$¡¡Ñ€.ÑÑ8€½­»»d»»d8ÑÑ ý ÑÓ  Ó(í€"  Z6Times New Roman Regular1l›3î   Ý ƒR‹$ÝÓ  Óà  àòòÚ  Ú3Ú  ÚóóÔ€ôüò»»ÔÝ  ÝÔ_Ô€Our€characterization€of€the€various€documents€filed€with€the€trial€court€as€motions€for€partial€summaryÐ ° Ðjudgment€is€supported€by€the€statements€of€the€parties€during€the€course€of€this€litigation.€€At€oral€argument,€counsel€forÐ tÄ ÐSouthern€Security€referred€to€its€later€filing€as€a€second€motion€for€summary€judgment.€€Throughout€this€litigation,€Ô_ÔCumisÔ_ÔÐ 8ˆ Ðhas€steadfastly€argued€that€Southern€Security€has,€in€essence,€filed€two€motions€for€summary€judgment. ˜C:\PROGRA~1\COREL\WORDPE~1\TEMPLATE\CUSTOM~1\REVISE~1.WPTC:\Program Files\Corel\WordPerfect Office 2000\Template\Custom WP Templates\revised standard opinion.wpt œÝ ƒR‹$ÝÓ  Óà  àòòÚ  Ú4Ú  ÚóóÔ€ôüò»»ÔÝ  ÝÔ_Ô€The€parties€do€not€assert€that€this€provision€is€ambiguous.€€ð ðIt€is€the€function€of€a€court€to€interpret€and€enforceÐ ° Ðcontracts€as€they€are€written,€notwithstanding€they€may€contain€terms€which€my€be€thought€harsh€and€unjust.€€A€courtÐ tÄ Ðis€not€at€liberty€to€make€a€new€contract€for€parties€who€have€spoken€for€themselves.ðð€€ò òòòÔ_ÔSmithartÔ_Ô€v.€John€Hancock€Mut.Ð 8ˆ ÐLife€Ins.€Co.óóó ó,€71€S.W.2d€1059,€1063€(Tenn.€1934).€€ð ðThe€language€of€the€policy€must€be€taken€and€understood€in€itsÐ þN Ðplain,€ordinary€and€popular€sense.ðð€€ò òòòAm.€Justice€Ins.€Reciprocal€v.€Ô_ÔHutchisonÔ_Ôóóó ó,€15€S.W.3d€811,€814ð!ð15€(Tenn.€2000)Ð Ä Ð(citing€òòò òBob€Pearsall€Motors,€Inc.€v.€Regal€Chrysler-Plymouth,€Inc.ó óóó,€521€S.W.2d€578,€580€(Tenn.€1975)).€€When€theÐ ŠÚ Ðlanguage€is€plain€and€unambiguous,€the€ð ð[Ô_Ôq]uestionsÔ_Ô€relating€to€the€interpretation€of€written€contracts€involve€legal€ratherÐ P   Ðthan€factual€issues.ðð€€ò òòòÔ_ÔNatððlÔ_Ô€Ins.€Ô_ÔAssððnÔ_Ô€v.€Simpsonóóó ó,€155€S.W.3d€134,€138€(Tenn.€Ct.€App.€2004)€(citations€omitted).€€ Ý ƒR‹$ÝÓ  Óà  àòòÚ  Ú2Ú  ÚóóÔ€ôüò»»ÔÝ  ÝÔ_ÔThe€Bond€defines€ð ðcounterfeitðð€as€ð ðan€imitation€which€is€intended€to€deceive€and€to€be€taken€as€an€original.ðð€Ð ° Ѐ€(#Ã$òòÚ  Ú0Ú  ÚóóLevel 1Level 2Level 3Level 4Level 5‚Level 1Level 2Level 3Level 4Level 5„Level 1Level 2Level 3Level 4Level 5…Level 1Level 2Level 3Level 4Level 5ËtÖ2ê:i¢×+00 Ý ƒR‹$ÝÓ  Óà  àòòÚ  Ú5Ú  ÚóóÔ€ôüò»»ÔÝ  ÝÔ_Ô€ð ðTypically,€summary€judgment€motions€are€not€made€until€each€side€has€had€a€chance€to€engage€in€formalÐ ° Ðdiscovery€to€gather€what€evidence€there€is€in€support€of€his€or€her€position.ðð€€Jack€H.€Ô_ÔFriedenthalÔ_Ô€et€al.,€òòCivil€ProcedureÐ tÄ Ðóóðð€9.2,€at€454€(3rd€ed.€1999)òòóó;€ò òòòsee€also€Ô_ÔMesserÔ_Ô€Ô_ÔGriesheimÔ_Ô€Indus.,€Inc.€v.€Ô_ÔCryotechÔ_Ô€of€Kingsport,€Inc.óóó ó,€45€S.W.3d€588,Ð 8ˆ Ð608€(Tenn.€Ct.€App.€2001)€(ð ðImplicit€in€the€summary€judgment€rubric€is€the€idea€that€it€should€only€be€granted€afterÐ þN Ðadequate€time€for€discovery.ðð).€€Nothing€in€the€record€presently€before€this€Court€suggests€that€the€parties€engaged€inÐ Â Ðdiscovery€prior€to€Southern€Security€filing€its€motions€for€summary€judgment.€€Thus,€we€are€not€presented€with€anÐ †Ö Ðadmission€of€fact€which€typically€follows€a€request€for€such€€an€admission.€€ò òòòSeeóóó ó€Tenn.€R.€Civ.€P.€36.02€(2005)€(notingÐ J š Ðthat€an€admission€made€pursuant€to€a€request€for€admissions€is€ð ðconclusively€established€unless€the€court€on€motionÐ  ` Ðpermits€withdrawal€or€amendment€of€the€admission.ðð);€ò òòòTenn.€Ô_ÔDepððtÔ_Ô€of€Human€Ô_ÔServsÔ_Ô.€v.€Ô_ÔBarbeeÔ_Ôóóó ó,€714€S.W.2d€263,€266Ð Ô $ Ð(Tenn.€1986)€(ð ð[A]€Rule€36€admission,€unless€it€is€allowed€to€be€withdrawn€or€amended,€concludes€the€matter€and€avoidsÐ š ê  Ðany€need€for€proof€at€trial.ðð). YÝ ƒR‹$ÝÓ  Óà  àòòÚ  Ú1Ú  ÚóóÔ€ôüò»»ÔÝ  ÝÔ_Ô€On€August€28,€2003,€the€trial€court€entered€an€order€granting€Southern€Securityððs€motion€for€a€defaultÐ ° Ðjudgment€against€Thompson€and€Gulf€Properties€due€to€their€failure€to€answer€the€complaint.€3|x ÿU‹ÿÀÀÀ- ù-(|G2‹$¤¤Ý ƒ£ª!ÝÑ€.ÑÑ8€M©»»dd8ÑÑ ý ÑÓ  ÓÝ  Ýà  àòòÚ  Ú0Ú  ÚóóÔ€ôüò»»Ô d(|3‡ˆ$££Ý ƒ£ª!ÝÑ€.ÑÑ8€M©»»dd8ÑÑ ý ÑÓ  ÓÝ  ÝVVVV'ÿÿdxd)!ÈÈÈÈdxdx( ±þ$’’ò òFigure€Ú  Ú1Ú  Úó ó^_X`YEþÿ<<CÿÿƒLevel 1Level 2Level 3Level 4Level 5(|3‡ˆ$¢¢Ý ƒ£ª!ÝÑ€.ÑÑ8€M©»»dd8ÑÑ ý ÑÓ  ÓÝ  Ý($$””ò òÚ  Ú1Ú  Úó óX[Z&OLE 2.0 Box <=8ÿÿÿÿÿÿÿÿÿÿCÿÿ HKKKKÝ ƒ£ª!ÝÑ€.ÑÑ8€M©»»ddÈ8ÑÑ ý ÑÓ  ÓÝ  ÝÔ_ÔÑ  ÑÔ€¼M©»»»ÔÑ8€½XXdì»»d8ÑÑ  Ñà@ü ü ìàÔ‡îG¸î»¼M©ÔIN€THE€COURT€OF€APPEALS€OF€TENNESSEEˆÐ ° Ðà@õõ%ìàAT€JACKSONÔ#†¼M©»îîG¸ #ԈРÖ& ÐÓ  ÓAUGUST€22,€2005€SessionÐ üL ÐÔ‡X½X»¼M©ÔÌò òÔ#†¼M©»XX½ò#ÔSOUTHERN€SECURITY€FEDERAL€CREDIT€UNIONòòóó€v.€Ô_ÔCUMISÔ_ÔÐ úJ ÐINSURANCE€SOCIETY,€INC.òòóóÔ‡X½X»¼M©Ôó óÐ  ^ ÐÌà@@½½ìàò òDirect€Appeal€from€the€Chancery€Court€for€Shelby€CountyÐ  ^ Ðà@@øøìàNo.€CH„03„0809„3€€€€€€D.€J.€Ô_ÔAlissandratosÔ_Ô,€ChancellorÐ ú J ÐÌÌà@@ìì*ìàßA€V) °°` d€÷E<½` AßÐ ¾  ÐÌà@@TTìàNo.€W2004„02700„Ô_ÔCOAÔ_Ô„R3„CV€„€Filed€December€27,€Ô_Ô2005Ô_ÔÐ ¹  ÐÌßA€V) °°` dE<` AßÐ ‘á  Ðó óÌÓ  ÓÔ‡X½XXX½ÔIn€this€appeal,€we€are€called€upon€to€review€the€trial€courtððs€order€entering€summary€judgment€inÐ ŒÜ Ðfavor€of€the€bank.€€After€one€of€its€customers€deposited€a€counterfeit€check€into€its€account€at€theÐ xÈ Ðbank,€the€bank€filed€a€claim€with€its€insurance€company€to€recover€for€its€loss€under€a€bond.€Ð d´ ÐSpecifically,€the€bank€sought€coverage€under€two€provisions€in€the€bond.€€The€bank€filed€its€firstÐ P  Ðmotion€for€summary€judgment€on€one€of€the€bondððs€provisions.€€The€insurance€company€respondedÐ <Œ Ðby€agreeing€that,€for€purposes€of€ruling€on€the€motion€for€summary€judgment,€the€bankððs€customerÐ (x Ðintended€to€commit€a€fraud€when€he€deposited€the€check.€€By€doing€so,€the€insurance€companyÐ d Ðsought€to€trigger€an€exclusion€provision€in€the€bond.€€Thereafter,€the€bank€filed€a€second€motion€forÐ P Ðsummary€judgment€on€the€other€provision€in€the€bond.€€In€response,€the€insurance€company,€in€anÐ ì< Ðeffort€to€create€a€disputed€issue€of€material€fact€as€to€this€provision,€asserted€that€the€customer€didÐ Ø( Ðnot€intended€to€commit€fraud€when€he€deposited€the€check.€€The€trial€court€granted€the€bankððsÐ Ä Ðmotions€for€summary€judgment.€€In€regards€to€the€bankððs€€motions€for€summary€judgment,€weÐ ° Ðreverse€the€trial€courtððs€award€of€summary€judgment€to€the€bank€and€find€that€genuine€issues€ofÐ œì Ðmaterial€fact€remain€to€be€decided,€therefore,€summary€judgment€is€inappropriate.Ð ˆØ ÐÔ#†X½XXX½@#ÔÔ#†¼M©»XX½¿#ÔÔ‡X½X»¼M©ÔÌÓ4ÓÌò òTenn.€R.€App.€P.€3;€Appeal€as€of€Right;€Judgment€of€the€Chancery€Court€Reversedó óÐ L"œ! ÐÌòòÓ  ÓÔ#†¼M©»àX½ #ÔÔ‡X½X.¼M©ÔAlan€E.€Ô_ÔHighersÔ_Ô,€J.óó,€delivered€the€opinion€of€the€court,€in€which€òòW.€Frank€Crawford,€Ô_ÔP.J.Ô_Ô,€Ô_ÔW.S.Ô_Ô,óóÐ $$t# Ðand€òòHolly€M.€Kirby,€J.óó,€joined.Ð %` $ ÐÌFred€C.€Ô_ÔStatumÔ_Ô,€III,€Jeffrey€S.€Price,€Nashville,€TN,€for€AppellantÐ è&8"& ÐÌMichael€G.€Ô_ÔMcLarenÔ_Ô,€William€E.€Ô_ÔCochranÔ_Ô,€Jr.,€Memphis,€TN,€for€AppelleeÐ À($( ÐÓª ÓÌò òÌÌÌÐ \-¬(-ý ÐOPINIONó óÔ#†¼M©»XX½Ù #ÔÔ‡X½X»¼M©ÔÐ ° ÐÌòòóóÔ#†¼M©»XX½‚#ÔÔ‡X½X»¼M©ÔÓ  Óò òÔ‡X½XXX½Ôà@¬¬)ìàI.ˆÐ ˆØ Ðòòà@G G ìàFactual€Background€and€Procedural€HistoryóóˆÐ tÄ ÐÌó óà  àGulf€Properties,€Ltd.,€Inc.€(hereinafter€ð ðGulf€Propertiesðð),€a€Tennessee€corporation,Ð L œ Ðmaintained€an€account€at€Southern€Security€Federal€Credit€Union€(hereinafter€ð ðSouthern€SecurityððÐ 8 ˆ Ðor€ð ðAppelleeðð),€a€federally€chartered€credit€union€with€its€principal€place€of€business€in€Memphis,Ð $ t ÐTennessee.€€In€1996,€Allen€C.€Thompson€(hereinafter€ð ðThompsonðð),€the€chief€executive€officer€ofÐ  ` ÐGulf€Properties,€was€contacted€via€the€Internet€by€an€individual€identifying€himself€as€Prince€JerryÐ ü L  ÐÔ_ÔUfotÔ_Ô€(hereinafter€ð ðPrince€Ô_ÔUfotÔ_Ôðð)€of€Nigeria.€€Prince€Ô_ÔUfotÔ_Ô€requested€Thompsonððs€assistance€withÐ è 8  Ðmaking€investments€in€the€United€States.€€€In€response€to€this€inquiry,€Thompson€expressed€hisÐ Ô$  Ðconcerns€to€Prince€Ô_ÔUfotÔ_Ô€about€fraudulent€Nigerian€investment€schemes.€€Nevertheless,€Prince€Ô_ÔUfotÔ_ÔÐ À  Ðpersuaded€Thompson€to€assist€him€in€the€venture,€and€Prince€Ô_ÔUfotÔ_Ô€informed€Thompson€that€heÐ ¬ü  Ðreceived€a€commitment€from€a€banker€who€intended€to€send€Thompson€a€check€for€ð ð€120,000Ð ˜è  Ðpounds€sterling.€€Thompson€agreed€to€assist€Prince€Ô_ÔUfotÔ_Ô€by€researching€potential€investmentÐ „Ô  Ðopportunities€available€in€the€United€States€in€exchange€for€an€$18,000.00€fee€to€cover€his€expenses.€Ð pÀ ÐThe€parties€agreed€to€this€fee,€and€Prince€Ô_ÔUfotÔ_Ô€informed€Thompson€that€he€could€deduct€the€fee€fromÐ \¬ Ðthe€forthcoming€check.€Ð H˜ ÐÌà  àWhen€Thompson€received€the€check,€he€deposited€it€into€Gulf€Propertiesðð€account€atÐ  p ÐSouthern€Security€on€April€25,€2002.€€According€to€Thompson,€he€informed€Southern€Security€ofÐ  \ Ðhis€concerns€about€the€checkððs€validity€and€that€he€wanted€the€check€deposited€for€collection€only.€Ð øH ÐOn€April€26,€2002,€Southern€Security€forwarded€the€check€to€National€Bank€of€CommerceÐ ä4 Ð(hereinafter€ð ðNBCðð)€for€international€collection.€€On€May€9,€2002,€Southern€Security€received€aÐ Ð  Ðcredit€from€NBC€in€the€amount€of€$170,964.00,€the€United€States€Dollar€equivalent€of€the€ð ð€120,000Ð ¼  Ðpounds€sterling.€€According€to€Southern€Security,€it€relied€on€this€credit€as€evidence€of€collection€byÐ ¨ø ÐNBC,€and€it€released€its€hold€on€the€funds€and€issued€a€credit€to€Gulf€Propertiesðð€account.€€AccordingÐ ”ä Ðto€Thompson,€he€received€a€call€from€Southern€Security€around€this€time€informing€him€that€theÐ €Ð Ðcheck€had€cleared€and€that€the€funds€were€credited€to€Gulf€Propertiesðð€account.€Ð l¼ ÐÌà  àOn€May€9,€2002,€the€same€day€that€Southern€Security€received€the€credit€from€NBC,Ð D!” ÐThompson€transferred€$9,000.00€to€another€account€and€withdrew€an€additional€$9,000.00€to€coverÐ 0"€  Ðhis€$18,000.00€fee.€€On€May€14,€2002,€Thompson,€at€the€direction€of€Prince€Ô_ÔUfotÔ_Ô,€transferredÐ #l! Ð$140,000.00€from€Gulf€Propertiesðð€account€to€another€bank€in€China.€€According€to€Thompson,Ð $X" ÐPrince€Ô_ÔUfotÔ_Ô€stated€that€he€intended€to€release€in€excess€of€$30,000,000.00€in€additional€investmentÐ ô$D # Ðfunds€upon€receipt€of€the€$140,000.00.€€€On€May€23,€2002,€NBC€notified€Southern€Security€that€itÐ à%0!$ Ðwould€be€returning€the€check€due€to€ð ðsuspected€fraud.ðð€€Further,€NBC€debited€$174,427.36€fromÐ Ì&"% ÐSouthern€Securityððs€account€at€NBC.€€The€parties€subsequently€learned€that€the€check€wasÐ ¸'#& Ðcounterfeit.€€In€response€to€NBCððs€actions,€Southern€Security€froze€Gulf€Propertiesðð€account.€€By€theÐ ¤(ô#' Ðtime€NBC€returned€the€check€to€Southern€Security,€however,€only€$580.33€of€the€original€amountÐ )à$( Ðremained€in€Gulf€Propertiesðð€account.€Ð |*Ì%) ÐÐ h+¸&* Ðà  àWhen€the€aforementioned€facts€unfolded,€Southern€Security€was€the€named€insured€underÐ ° Ða€ð ðCredit€Union€Bondðð€(hereinafter€the€ð ðBondðð)€issued€by€Ô_ÔCumisÔ_Ô€Insurance€Society,€Inc.€(hereinafterÐ œì Ðð ðÔ_ÔCumisÔ_Ôðð€or€ð ðAppellantðð),€a€Wisconsin€corporation.€€On€June€13,€2002,€Southern€Security,€relyingÐ ˆØ Ðon€the€Bond,€submitted€a€claim€to€Ô_ÔCumisÔ_Ô€to€recover€the€losses€it€incurred€in€this€case.€€When€Ô_ÔCumisÔ_ÔÐ tÄ Ðrefused€to€pay€the€claim,€Southern€Security€filed€a€complaint€against€Thompson,€Gulf€Properties,Ð `° ÐÔ_ÔCumisÔ_Ô,€and€NBC€in€the€Chancery€Court€of€Shelby€County.׃×Ý ƒ #ÃÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×€€€Therein,€Southern€Security€alleged€thatÐ L œ ÐThompson€deposited€the€check€with€the€intent€to€defraud€Southern€Security.€€It€also€sought€aÐ 8 ˆ Ðdeclaratory€judgment€against€Ô_ÔCumisÔ_Ô€regarding€its€rights€under€the€Bond,€specifically€relying€on€twoÐ $ t Ðcoverage€provisions€in€the€Bond.€€Coverage€Provision€R,€governing€fraudulent€deposits,€providesÐ  ` Ðas€follows:Ð ü L  ÐÌÓ °ÓÓ °ÓWe€will€pay€you€for€your€loss€resulting€directly€from€a€personÐ Ô$  Ðdepositing€into€a€share,€share€draft€or€other€depository€accountÐ À  Ðmaintained€with€you,€or€exchanging€for€cash€with€you,€a€check€orÐ ¬ü  Ðdraft€that€is€ultimately€not€paid,€providing€that:Ð ˜è  ÐÌÓ °$'ÓÓ °'ÓÓ °ÓÓ °Óa.à0 ¸ àThe€person€intended€to€commit€a€fraud€by€depositing€orÐ pÀ Ðexchanging€for€cash€the€check€or€draft;€andÐ\¬¸ x¸ x ÐÌb.à0 ¸ àYou€made€payment€or€extended€credit€against€the€check€orÐ 4„ Ðdraft.Ð p¸ x¸ x ÐÌFor€purposes€of€this€coverage€only:Ð øH ÐÌ1)à0 ¸ àCashing€or€permitting€withdrawals€against€a€check€or€draftÐ Ð  Ðprior€to€final€settlement€will€not€be€considered€extensions€ofÐ ¼  Ðcredit€excluded€by€the€Loan€Exclusion;€andШø¸ x¸ x ÐÌ2)à0 ¸ àLoss€sustained€by€you€pursuant€to€the€provisions€of€a€writtenÐ €Ð Ðcontract€between€you€and€a€credit€union€service€network€dueÐ l¼ Ðto€a€deposit€or€exchange€that€occurs€at€a€ð ðservice€centerðð€orÐ X ¨ Ðð ðservice€outletðð€will€be€considered€a€direct€loss€and€will€notÐ D!” Ðbe€excluded€by€the€Service€Center€Exclusion.Ð0"€ ¸ x¸ x ÐÌÓ °›(ÓÓ °©(ÓCoverage€Provision€W,€governing€counterfeit€share€drafts,€checks,€or€securities,€provides,€in€relevantÐ $X" Ðâ âpart,€as€follows:Ð ô$D # ÐÓ °ÓÓ °Ó1.à0 ¸ àWe€will€pay€you€for€your€loss€resulting€directly€from€aÐ ° Ðð ðcounterfeitðð׃ ×Ý ƒ #ÃÝòòÚ  Ú2Ú  ÚóóÝ  Ý×  ×€share€draft€or€check€other€than€a€money€orderÐ œì Ðâ âwhich€was€finally€paid€against€your€corporate€share€orÐ ˆØ Ðchecking€account€or€a€share€draft€or€checking€account€yourÐ tÄ Ðmember€has€with€you.Ð`°¸ x¸ x ÐÌÓ °™-ÓÓ °‹-ÓRelying€on€these€coverage€provisions,€Southern€Security€alleged€that€Ô_ÔCumisÔ_Ô€breached€the€bond€byÐ 8 ˆ Ðrefusing€to€pay€the€claim€in€bad€faith.€€Ô_ÔCumisÔ_Ô€subsequently€answered€Southern€Securityððs€complaintÐ $ t Ðby€denying€that€it€had€an€obligation€under€the€Bond€to€pay€Southern€Securityððs€claim.€Ð  ` ÐÌà  àOn€January€21,€2004,€Southern€Security€filed€a€motion€for€summary€judgment€against€Ô_ÔCumisÔ_ÔÐ è 8  Ðin€the€trial€court.€€In€support€of€its€motion,€Southern€Security€also€submitted€the€affidavit€of€anÐ Ô$  Ðinvestigative€consultant€specializing€in€financial€fraud€who€opined€that€the€check€presented€byÐ À  ÐThompson€was€counterfeit€and€that€Thompson€ð ðwas€an€active€participant€in€a€Nigerian€advance€feeÐ ¬ü  Ðfraud€Email€scam€that€served€as€the€catalyst€for€[Southern€Securityððs]€loss.ðð€€Southern€Security€alsoÐ ˜è  Ðsubmitted€an€accompanying€statement€of€undisputed€facts€and€a€memorandum€of€law,€both€of€whichÐ „Ô  Ðincluded€only€a€reference€to€Coverage€Provision€W,€reiterated€the€opinions€of€Mr.€Wilson,€andÐ pÀ Ðasserted€that€Southern€Securityððs€loss€was€covered€under€that€provision€of€the€Bond.€Ð \¬ ÐÌà  àIn€response€to€Southern€Securityððs€motion,€Ô_ÔCumisÔ_Ô€submitted€a€memorandum€in€oppositionÐ 4„ Ðto€the€motion€asserting€that,€pursuant€to€the€plain€language€of€Coverage€Provision€W,€SouthernÐ  p ÐSecurity€was€precluded€from€recovering€under€the€Bond.€€Specifically,€Ô_ÔCumisÔ_Ô€asserted€that,€not€onlyÐ  \ Ðmust€Southern€Security€show€that€the€check€was€counterfeit€in€order€to€recover€under€CoverageÐ øH ÐProvision€W,€but€it€must€also€demonstrate€that€the€check€was€ð ðfinally€paidðð€and€that€the€check€wasÐ ä4 Ðð ðpaid€against€your€corporate€share€or€checking€account€or€a€share€draft€or€checking€account€yourÐ Ð  Ðmember€has€with€you.ðð€€€Ô_ÔCumisÔ_Ô€alleged€in€the€alternative€that,€even€if€Southern€Securityððs€loss€€fellÐ ¼  Ðwithin€the€scope€of€Coverage€Provision€W,€a€genuine€issue€of€fact€remained€as€to€whether€SouthernÐ ¨ø ÐSecurityððs€loss€was€caused€by€its€own€failure€to€act€in€a€commercially€reasonable€manner€and€itsÐ ”ä Ðfailure€to€mitigate€its€damages.€Ð €Ð ÐÌà  àMoreover,€Ô_ÔCumisÔ_Ô€argued€that€the€Bond€contained€Exclusion€Provision€10,€governingÐ X ¨ Ðfraudulent€deposits,€which€would€further€preclude€recovery€based€upon€the€allegations€in€SouthernÐ D!” ÐSecurityððs€pleadings.€€Exclusion€Provision€10€provides€as€follows:Ð 0"€  ÐÌÓ °ÓÓ °ÓAny€loss€resulting€directly€from€a€person€depositing€into€a€share,Ð $X" Ðshare€draft,€checking€or€other€depository€account€maintained€withÐ ô$D # Ðyou,€or€exchanging€for€cash€with€you€a€check€or€draft€that€is€not€paidÐ à%0!$ Ðprovided:Ð Ì&"% Ðâ âÐ ¸'#& ÐÓ °R;ÓÓ °D;ÓÓ °ÓÓ °Óa.à0 ¸ àThe€person€intended€to€commit€a€fraud€by€depositing€orÐ ° Ðâ âexchanging€for€cash€the€check€or€draft;€andÐœì¸ x¸ x ÐÌb.à0 ¸ àYou€made€payment€or€extended€credit€against€the€check€orÐ tÄ Ðdraft.Ð`°¸ x¸ x ÐÌExcept€as€may€be€covered€under:Ð 8 ˆ ÐÌ1)à0 ¸ àFraudulent€Deposit€Coverage;€orÐ `¸ x¸ x ÐÌ2)à0 ¸ àEmployee€Or€Director€Dishonesty€Coverage;€orÐè 8 ¸ x¸ x ÐÌ3)à0 ¸ àPlastic€Care/PIN€Endorsement.ÐÀ ¸ x¸ x ÐÌÓ °×<ÓÓ °É<ÓSpecifically,€Ô_ÔCumisÔ_Ô€noted€the€following:€(1)€in€its€complaint,€Southern€Security€alleged€thatÐ ˜è  ÐThompson€ð ðcommitted€intentional€misrepresentation,€deceit€and€fraud€against€[Southern€Security]ðð;Ð „Ô  Ðand€(2)€in€support€of€its€motion€for€summary€judgment,€Southern€Security€asserted€that€ThompsonÐ pÀ Ðwas€an€ð ðactive€participantðð€in€a€scheme€to€defraud€Southern€Security.€€In€response€to€SouthernÐ \¬ ÐSecurityððs€statement€of€undisputed€facts,€Ô_ÔCumisÔ_Ô€admitted,€ð ðonly€for€the€purpose€of€responding€toÐ H˜ Ð[Southern€Securityððs]€Motion€for€Summary€Judgment,ðð€that€the€check€was€counterfeit€and€thatÐ 4„ ÐThompson€engaged€in€a€scheme€to€defraud€Southern€Security.€€Ô_ÔCumisÔ_Ô€expressly€reserved€ð ðthe€rightÐ  p Ðto€offer€proof€challenging€Mr.€Thompsonððs€purported€knowledge€of€the€nature€of€the€counterfeitÐ  \ Ðcheck.ðð€Ð øH ÐÌà  àOn€March€19,€2004,€Southern€Security€submitted€a€response€to€Ô_ÔCumisÔ_Ôðð€memorandumÐ Ð  Ðreferencing€Ô_ÔCumisÔ_Ôðð€admission€that€Thompson€ð ðcommitted€misrepresentation,€deceit€and€fraudðð€andÐ ¼  Ðstating:€ð ðThis€undisputed€fact€greatly€simplifies€the€coverage€issue€before€the€court€and€insures€[sic]Ð ¨ø Ðcoverage€under€Coverage€Provision€R€of€the€Bond.ðð€€A€hearing€on€Southern€Securityððs€originalÐ ”ä Ðmotion€for€summary€judgment€was€set€for€March€26,€2004,€however,€counsel€for€Ô_ÔCumisÔ_Ô€did€notÐ €Ð Ðreceive€a€copy€of€Southern€Securityððs€latest€response€until€March€25,€2004,€the€day€before€theÐ l¼ Ðhearing.€€Ô_ÔCumisÔ_Ô€informed€Southern€Security€on€March€25,€2004€that€it€deemed€this€latest€responseÐ X ¨ Ðto€be€a€second€motion€for€summary€judgment,€therefore,€Ô_ÔCumisÔ_Ô€asserted€that€it€should€be€given€theÐ D!” Ðtime€permitted€by€the€Tennessee€Rules€of€Civil€Procedure€to€respond€to€such€motion.€Ð 0"€  ÐÌà  àÔ_ÔCumisÔ_Ô€subsequently€filed€its€response€to€Southern€Securityððs€second€motion€for€summaryÐ $X" Ðjudgment,€wherein€Ô_ÔCumisÔ_Ô€asserted€that€Thompson€ð ðdid€not€intend€to€commit€a€fraud€by€depositingÐ ô$D # Ðwith€[Southern€Security]€the€subject€cashierððs€check.ðð€€€In€support€of€its€response,€Ô_ÔCumisÔ_Ô€submittedÐ à%0!$ ÐThompsonððs€affidavit,€wherein€he€stated€as€follows:Ð Ì&"% ÐÌÓ °ÓÓ °ÓI€did€not€participate€in€any€fraudulent€scheme€and€was€a€victim€of€theÐ ¤(ô#' Ðscheme€of€Prince€Ô_ÔUfotÔ_Ôððs€actions.€€If€I€had€known€the€check€was€notÐ )à$( Ðvalid,€I€would€not€have€authorized€the€transfer€to€[the€bank€in€China].€Ð |*Ì%) ÐI€relied€upon€[Southern€Security]€to€confirm€that€the€check€was€validÐ h+¸&* Ðand€finally€paid€before€the€proceeds€from€the€check€were€madeÐ ° Ðavailable€and€withdrawn.Ð œì ÐÌÓ °€JÓÓ °rJÓAfter€conducting€a€hearing€on€Southern€Securityððs€motions€for€summary€judgment,€the€chanceryÐ tÄ Ðcourt€entered€an€order€on€July€21,€2004€finding€simply€that€ð ðsaid€motion€is€well€taken€and€shouldÐ `° Ðbe€granted,ðð€and€entered€a€judgment€awarding€damages€to€Southern€Security.€€Thereafter,€SouthernÐ L œ ÐSecurity€filed€a€motion€for€prejudgment€interest.€€€On€October€11,€2004,€the€chancery€court€enteredÐ 8 ˆ Ðan€order€granting€Southern€Securityððs€motion€for€prejudgment€interest.€€€Ô_ÔCumisÔ_Ô€filed€a€timely€appealÐ $ t Ðto€this€Court€presenting€the€following€issues€for€our€review:Ð  ` ÐÌ1.à0  àWhether€the€trial€court€erred€in€granting€summary€judgment€to€the€Appellee;€andÐè 8 (#(# Ð2.à0  àWhether€the€trial€court€erred€in€awarding€prejudgment€interest€to€the€Appellee.ÐÔ$ (#(# ÐÌFor€the€reasons€set€forth€more€fully€herein,€we€reverse€the€trial€courtððs€grant€of€summary€judgmentÐ ¬ü  Ðto€the€Appellee€and€remand€this€case€for€further€proceedings.Ð ˜è  ÐÌÓ  Óò òòòII.Ð pÀ ÐStandard€of€ReviewóóÐ \¬ Ðó óÓ  ÓÌÓ  Óà  àð ð[Ô_ÔT]heÔ_Ô€summary€judgment€process€is€designed€to€provide€a€quick,€inexpensive€means€ofÐ 4„ Ðconcluding€cases,€in€whole€or€in€part,€upon€issues€as€to€which€there€is€no€genuine€dispute€regardingÐ  p Ðmaterial€facts.ðð€€òòò òByrd€v.€Halló óóó,€847€S.W.2d€208,€210€(Tenn.€1993)€(citations€omitted).€€A€motion€forÐ  \ Ðsummary€judgment€should€be€granted€ð ðif€the€pleadings,€depositions,€answers€to€interrogatories,€andÐ øH Ðadmissions€on€file,€together€with€the€affidavits,€if€any,€show€that€there€is€no€genuine€issue€as€to€anyÐ ä4 Ðmaterial€fact€and€that€the€moving€party€is€entitled€to€judgment€as€a€matter€of€law.ðð€€Tenn.€R.€Civ.€P.Ð Ð  Ð56.04€(2005);€ò òòòsee€also€Williamson€County€Broad.€Co.€v.€Williamson€County€Bd.€of€Educ.óóó ó,€549Ð ¼  ÐS.W.2d€371,€372€(Tenn.€1977)€(setting€forth€the€two€imperatives€contained€in€the€rule).€€ð ðTheÐ ¨ø Ðmoving€party€has€the€burden€of€proving€that€its€motion€satisfies€these€requirements.ðð€€ò òòòÔ_ÔBainÔ_Ô€v.€Wellsóóó ó,Ð ”ä Ð936€S.W.2d€618,€622€(Tenn.€1997)€(citing€ò òòòÔ_ÔDownenÔ_Ô€v.€Allstate€Ins.€Co.óóó ó,€811€S.W.2d€523,€524€(Tenn.Ð €Ð Ð1991)).€€ð ðOnce€it€is€shown€by€the€moving€party€that€there€is€no€genuine€issue€of€material€fact,€theÐ l¼ Ðnonmoving€party€must€then€demonstrate,€by€affidavits€or€discovery€materials,€that€there€is€a€genuine,Ð X ¨ Ðmaterial€fact€dispute€to€warrant€a€trial.ðð€€ò òòòByrdóóó ó,€847€S.W.2d€at€211€(citations€omitted).€€The€partyÐ D!” Ðopposing€the€motion€ð ðmay€not€rest€upon€the€mere€allegations€or€denials€of€the€adverse€partyððsÐ 0"€  Ðpleading,€but€his€or€her€response,€by€affidavits€or€as€otherwise€provided€in€this€rule,€must€set€forthÐ #l! Ðspecific€facts€showing€that€there€is€a€genuine€issue€for€trial.ðð€€Tenn.€R.€Civ.€P.€56.06€(2005).Ð $X" ÐÌà  àThe€standards€governing€a€courtððs€assessment€of€the€evidence€when€evaluating€a€motion€forÐ à%0!$ Ðsummary€judgment€are€well€established.€€ò òòòÔ_ÔBainÔ_Ôó óóó,€936€S.W.2d€at€622;€òòò òÔ_ÔCarvellÔ_Ô€v.€Bottomsóóó ó,€900€S.W.2dÐ Ì&"% Ð23,€26€(Tenn.€1995).€€Courts€must€view€the€evidence€in€the€light€most€favorable€to€the€non„movingÐ ¸'#& Ðparty€and€draw€all€reasonable€inferences€in€the€non„moving€partyððs€favor.€€ò òòòByrdóóó ó,€847€S.W.2d€atÐ ¤(ô#' Ð210ð!ð11.€€In€doing€so,€courts€are€not€permitted€to€ð ðweighðð€the€evidence€or€evaluate€the€credibility€ofÐ )à$( Ðthe€witnesses.€€ò òòòIdóóó ó.€at€216.€€Courts€should€grant€a€motion€for€summary€judgment€only€when€the€factsÐ |*Ì%) Ðand€the€inferences€drawn€from€those€facts€would€permit€a€reasonable€person€to€reach€only€oneÐ h+¸&* Ðconclusion.€€ò òòòÔ_ÔBainÔ_Ôóóó ó,€936€S.W.2d€at€622€(citation€omitted);€ò òòòÔ_ÔCarvellÔ_Ôóóó ó,€900€S.W.2d€at€26€(citationÐ ° Ðomitted).Ð œì ÐÌà  àThe€standard€of€review€which€guides€this€Court€when€evaluating€a€trial€courtððs€grant€ofÐ tÄ Ðsummary€judgment€to€a€party€is€likewise€well€established.€€ò òòòÔ_ÔBainÔ_Ôóóó ó,€936€S.W.2d€at€622;€ò òòòÔ_ÔCarvellÔ_Ôóóó ó,€900Ð `° ÐS.W.2d€at€26.€€ð ðOur€task€on€appeal€is€to€review€the€record€to€determine€whether€the€requirementsÐ L œ Ðfor€granting€summary€judgment€have€been€met.ðð€€ò òòòChurch€v.€Ô_ÔPeralesÔ_Ôóóó ó,€39€S.W.3d€149,€157€(Tenn.€Ct.Ð 8 ˆ ÐApp.€2000);€ò òòòsee€also€Burgess€v.€Harleyóóó ó,€934€S.W.2d€58,€62€(Tenn.€Ct.€App.€1996).€€To€that€end,€weÐ $ t Ðare€guided€by€the€same€standards€utilized€by€the€trial€court€in€evaluating€the€motion€for€summaryÐ  ` Ðjudgment.€€ò òòòPrince€v.€St.€Thomas€Hosp.óóó ó,€945€S.W.2d€731,€733€(Tenn.€Ct.€App.€1996).ò òòòóóó ó€€Accordingly,Ð ü L  Ðwe€review€a€trial€courtððs€grant€of€summary€judgment€to€a€party€ð ðòòde€novo€óówithout€any€presumptionÐ è 8  Ðthat€the€trial€courtððs€conclusions€were€correct.ðð€€ò òòòWebber€v.€State€Farm.€Mut.€Auto.€Ins.€Co.óóó ó,€49Ð Ô$  ÐS.W.3d€265,€269€(Tenn.€2001);€ò òòòsee€also€Ô_ÔPenleyÔ_Ô€v.€Honda€Motor€Co.óóó ó,€31€S.W.3d€181,€183€(Tenn.Ð À  Ð2000).Ð ¬ü  ÐÌÓ  Óò òòòIII.Ð „Ô  ÐDiscussionóóÐ pÀ ÐÓ  Óó óÌÓ  Óà  àOn€appeal,€Ô_ÔCumisÔ_Ô€contends€that€summary€judgment€is€not€appropriate€in€this€case€becauseÐ H˜ Ðgenuine€issues€of€material€fact€exist€regarding€whether€Southern€Security€may€recover€underÐ 4„ ÐCoverage€Provision€W€and/or€Coverage€Provision€R€in€the€Bond.€€Conversely,€Southern€SecurityÐ  p Ðargues€that€summary€judgment€is€appropriate€in€this€case€because,€even€if€a€genuine€issue€of€factÐ  \ Ðexists€as€to€whether€Thompson€committed€fraud€and,€therefore,€a€trial€as€to€Coverage€Provision€RÐ øH Ðis€necessary,€it€is€still€entitled€to€recover€under€Coverage€Provision€W€since€it€is€undisputed€that€theÐ ä4 Ðcheck€at€issue€is€counterfeit.Ð Ð  ÐÌà  àWe€must€begin€by€properly€characterizing€the€various€documents€filed€in€the€trial€court.€€InÐ ¨ø Ðits€complaint,€Southern€Security€sought€a€declaratory€judgment€as€to€its€rights€under€CoverageÐ ”ä ÐProvision€W€and€Coverage€Provision€R€in€the€Bond.€€Southern€Security€filed€its€original€motion€forÐ €Ð Ðsummary€judgment€on€January€21,€2004.€€Therein,€it€only€mentioned€Coverage€Provision€W.€€AfterÐ l¼ ÐÔ_ÔCumisÔ_Ô€responded€to€this€motion,€Southern€Security€filed€a€response€to€Ô_ÔCumisÔ_Ôðð€response€stating€that,Ð X ¨ Ðpursuant€to€the€content€of€Ô_ÔCumisÔ_Ôðð€response,€it€was€entitled€to€coverage€under€Coverage€ProvisionÐ D!” ÐR.€€Ô_ÔCumisÔ_Ô€treated€Southern€Securityððs€response€as€a€second€motion€for€summary€judgment€as€toÐ 0"€  ÐCoverage€Provision€R.€€The€trial€courtððs€order€does€not€indicate€whether€it€treated€these€filings€asÐ #l! Ðtwo€separate€motions€for€summary€judgment€with€responses€thereto.€€In€any€event,€we€haveÐ $X" Ðdetermined€that€Southern€Security€filed€two€motions€for€partial€summary€judgment€ð"ð€one€for€eachÐ ô$D # Ðof€the€coverage€provisions€at€issue€ð!ðð!ð€in€the€trial€court€below.Ô_Ô׃×Ý ƒ #ÃÝòòÚ  Ú3Ú  ÚóóÝ  Ý×  ×Ô_ÔÐ à%0!$ ÐÐ Ì&"% Ðà  àA€party€is€entitled€to€seek€summary€judgment€as€to€any€or€all€of€the€causes€of€action€raisedÐ ° Ðin€a€complaint.€€ò òòòSeeóóó ó€Tenn.€R.€Civ.€P.€56.01€(2005)€(governing€a€plaintiffððs€right€to€seek€summaryÐ œì Ðjudgment€ð ðas€to€all€or€any€partðð€of€its€claim);€Tenn.€R.€Civ.€P.€56.02€(2005)€(governing€theÐ ˆØ Ðdefendantððs€right€to€seek€summary€judgment€ð ðas€to€all€or€any€partðð€of€the€claims€against€it);€Tenn.Ð tÄ ÐR.€Civ.€P.€56.05€(2005)€(setting€forth€the€procedure€to€be€used€when€a€case€is€not€fully€adjudicatedÐ `° Ðon€a€motion€for€summary€judgment).€€From€the€terseness€of€the€trial€courtððs€order,€we€must€infer€thatÐ L œ Ðthe€trial€court€granted€both€of€Southern€Securityððs€motions.€€Accordingly,€we€will€address€theÐ 8 ˆ Ðcorrectness€of€the€trial€courtððs€rulings€regarding€these€two€motions€in€turn.Ð $ t ÐÌÓ  Óòòò òA.Ð ü L  ÐSummary€Judgment€as€to€Coverage€Provision€WÐ ä 4  Ðó óóóÓ  ÓÌÓ  Óà  àIn€relevant€part,€Coverage€Provision€W€provides€that€Ô_ÔCumisÔ_Ô€will€pay€Southern€Security€forÐ ¸  Ða€loss€resulting€from€a€ð ðððcounterfeitðð€share€draft€or€check€other€than€a€money€order€which€was€finallyÐ ¤ô  Ðpaid€against€your€corporate€share€or€checking€account€or€a€share€draft€or€checking€account€yourÐ à  Ðmember€has€with€you.ðð€€In€support€of€its€motion€for€summary€judgment€as€to€this€provision,Ð |Ì  ÐSouthern€Security€supplied€the€affidavit€of€its€investigative€consultant€who€opined€that€the€checkÐ h¸ Ðpresented€by€Thompson€was€counterfeit€and€that€Thompson€engaged€in€a€scheme€to€defraudÐ T¤ ÐSouthern€Security.€€Southern€Security€also€submitted€a€statement€of€undisputed€facts€andÐ @ Ðmemorandum€of€law,€wherein€it€reiterated€the€consultantððs€opinions.€€Ð ,| ÐÌà  àThe€party€opposing€the€motion€for€summary€judgment€must€respond€to€the€facts€set€forth€byÐ T Ðthe€Ô_ÔmovantÔ_Ô€by€one€of€the€following€methods:€ð ð(Ô_ÔiÔ_Ô)€agreeing€that€the€fact€is€undisputed,€(ii)€agreeingÐ ð@ Ðthat€the€fact€is€undisputed€for€purposes€of€ruling€on€the€motion€for€summary€judgment€only,€or€(iii)Ð Ü, Ðdemonstrating€that€the€fact€is€disputed.ðð€€Tenn.€R.€Civ.€P.€56.03€(2005).€€ð ð[Ô_ÔA]nÔ_Ô€adverse€party€mayÐ È Ðnot€rest€upon€the€mere€allegations€or€denials€of€the€adverse€partyððs€pleading,€but€his€or€her€response,Ð ´ Ðby€affidavits€or€as€otherwise€provided€in€this€rule,€must€set€forth€specific€facts€showing€that€there€isÐ  ð Ða€genuine€issue€for€trial.ðð€€Tenn.€R.€Civ.€P.€56.06€(2005).€Ð ŒÜ ÐÌà  àIn€its€response€to€Southern€Securityððs€first€motion€for€summary€judgment,€Ô_ÔCumisÔ_Ô€admittedÐ d´ Ðthat€the€check€was€counterfeit,€but€ð ðonly€for€purpose€of€responding€to€[Southern€Securityððs]€MotionÐ P   Ðfor€Summary€Judgment.ðð€€Ô_ÔCumisÔ_Ô€also€admitted€that€Thompson€engaged€in€a€scheme€to€defraudÐ