Tennessee Farmers Mutual Ins. Co. vs. SA W. Jeong

Tennessee Farmers Mutual Insurance Company ("Tennessee Farmers") brought a declaratory judgment action against Sa W. Jeong ("the injured party"); her daughter, Hyunlan Lee; and her son-in-law, Jack Sung K. Lee (the defendants Lee are referred to herein collectively as "the Lees"), asking the trial court to "declare whether or not Tennessee Farmers is obligated to afford liability coverage to [the Lees] in connection with the lawsuit filed against them by [the injured party]." At the conclusion of a bench trial, the trial judge ruled in favor of the defendants, finding that the word "reside" and its derivatives "resident" and "residing," particularly as the latter two words are used in the policy language excluding coverage of a claim by a "covered person" or one "residing in the same household," are ambiguous, and that the language of the policy should be construed against Tennessee Farmers as the drafter of the policy. The court ordered Tennessee Farmers to provide liability coverage to the Lees with respect to the subject lawsuit. Tennessee Farmers appeals, raising issues as to whether the trial court correctly ruled that the policy is ambiguous, and whether the trial court was correct in finding that the word "resident" was susceptible to a reasonable meaning that would exclude the injured party from the ambit of the subject exclusionary language in the policy. We find that the subject policy provision is not ambiguous; however, we conclude that the injured party was not "residing in [the Lees'] household" as that language has been construed by applicable case law. Accordingly, we affirm.