Charles D. Sprunger v. Cumberland County, TN Sheriff's Office ( 2017 )


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  •                                                                                        07/27/2017
    IN THE COURT OF APPEALS OF TENNESSEE
    AT NASHVILLE
    June 6, 2017 Session
    CHARLES D. SPRUNGER V. CUMBERLAND COUNTY, TN
    SHERIFF’S OFFICE
    Appeal from the Chancery Court for Cumberland County
    No. 2015-CH-899      Ronald Thurman, Chancellor
    No. E2016-02572-COA-R3-CV
    A homeowner was charged with knowingly possessing child pornography, and a
    forfeiture warrant was obtained to seize his house pursuant to Tenn. Code Ann. § 39-17-
    1008. The homeowner was ultimately convicted and sentenced to prison, and his
    mortgage lender foreclosed upon his house. The State filed a complaint for judicial
    forfeiture in an effort to enjoin the mortgage lender from disbursing any excess proceeds
    from the foreclosure sale to the former homeowner. The trial court granted the State the
    relief it requested. On appeal, the Supreme Court vacated the forfeiture of the excess
    proceeds because the seizing officer had failed to follow several procedural requirements
    in seizing the house, including giving the homeowner notice about how to contest the
    seizure. The former homeowner filed a complaint against the sheriff’s office of
    Cumberland County alleging bad faith seizure and seeking damages as provided by Tenn.
    Code Ann. § 40-33-215. The trial court granted the County’s motion for summary
    judgment because the record contained no evidence of any intentional misconduct by the
    seizing officer, and the former homeowner appealed. We affirm the trial court’s
    judgment.
    Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Chancery Court Affirmed
    ANDY D. BENNETT, J., delivered the opinion of the Court, in which RICHARD H. DINKINS
    and W. NEAL MCBRAYER, JJ., joined.
    Benjamin K. Raybin, Nashville, Tennessee, for the appellant, Charles D. Sprunger.
    Robyn Beale Williams, Nashville, Tennessee, for the appellee, Cumberland County
    Sheriff’s Office.
    OPINION
    I. PROCEDURAL AND FACTUAL BACKGROUND
    This case involves the forfeiture of a house formerly belonging to Charles D.
    Sprunger. Child pornography was found on Mr. Sprunger’s home computer in 2008,
    when Mr. Sprunger took his computer to a technician for service. John Haynes, a
    detective with the Cumberland County Sheriff’s Department, seized the computer and
    obtained a search warrant for Mr. Sprunger’s house. Ten months later, on May 19, 2009,
    Detective Haynes obtained a forfeiture warrant for Mr. Sprunger’s house based on Mr.
    Sprunger’s violation of Tenn. Code Ann. § 39-17-1004, aggravated sexual exploitation of
    children. Mr. Sprunger was indicted in July 2009 for violating Tenn. Code Ann. § 39-17-
    1003, knowingly possessing child pornography, which is a less serious offense than
    Tenn. Code Ann. § 39-17-1004.
    On August 29, 2009, Mr. Sprunger received a “Notice of Property Seizure and
    Forfeiture of Conveyances,” notifying him that his house had been seized. Detective
    Haynes failed to provide information to Mr. Sprunger about how to contest the seizure, as
    the law required him to do. See Tenn. Code Ann. § 40-33-203(c)(5). Mr. Sprunger was
    tried and found guilty of sexual exploitation of a minor by knowingly possessing child
    pornography on his home computer in violation of Tenn. Code Ann. § 39-17-1003. He
    was sentenced to eight years in prison.
    Once the criminal court entered judgment against Mr. Sprunger, the State filed a
    complaint for judicial forfeiture. Mr. Sprunger’s home mortgage lender had already
    initiated foreclosure proceedings, and the State wanted the trial court to enjoin the lender
    from disbursing any excess proceeds from the foreclosure sale to Mr. Sprunger. Mr.
    Sprunger was in prison by this time, and he responded to the State’s complaint by
    sending a letter to the trial court in which he explained that Detective Haynes had failed
    to provide him with the required instructions for contesting the forfeiture of his property.
    The trial court granted the State the relief it requested. Mr. Sprunger’s house was sold at
    auction the following day, and the excess funds ($31,606.26) were deposited with the
    chancery court clerk and master pending a final resolution of the forfeiture proceeding.
    Mr. Sprunger appealed the trial court’s decision, and the Court of Appeals
    affirmed the trial court’s judgment. Mr. Sprunger sought further review by the Tennessee
    Supreme Court, which granted Mr. Sprunger’s petition for certiorari and reversed the trial
    court’s judgment. The Supreme Court vacated the forfeiture because the State had failed
    to comply with the procedural requirements set forth in the forfeiture statutes, and it ruled
    that the excess funds from the foreclosure sale belonged to Mr. Sprunger. State v.
    Sprunger, 
    458 S.W.3d 482
    , 500-01 (Tenn. 2015).
    -2-
    Following the Supreme Court’s decision, Mr. Sprunger filed a Complaint for Bad
    Faith Seizure against the Cumberland County Sheriff’s Office (“the County”) pursuant to
    Tenn. Code Ann. § 40-33-215. Mr. Sprunger alleged that Detective Haynes failed to
    comply with several procedural requirements when he obtained the forfeiture warrant for
    his house and when he prepared and served him with the Notice of Seizure. The County
    filed a motion to dismiss in which it alleged Mr. Sprunger’s statutory claim was barred by
    the statute of limitations. The trial court denied the County’s motion to dismiss, but it
    granted the County the right to reassert the same argument for further consideration upon
    summary judgment.
    Both Mr. Sprunger and the County filed motions for summary judgment. The trial
    court granted the County’s motion and denied Mr. Sprunger’s motion. First, the trial
    court addressed the County’s argument that Mr. Sprunger’s complaint was barred by the
    statute of limitations. The court held that Tenn. Code Ann. § 40-33-215 “provides for a
    statutory penalty in the case of a bad faith seizure,” and that the applicable statute of
    limitations for statutory penalties is Tenn. Code Ann. § 28-3-104(a), which allows a
    complaint to be filed one year after the cause of action accrued.1 The trial court then
    explained that “[a] claim for a bad faith seizure action accrues only after a citizen prevails
    in a forfeiture proceeding.” Because Mr. Sprunger filed his claim for bad faith seizure
    within two months of the Supreme Court’s ruling vacating the forfeiture, the trial court
    concluded that the statute of limitations did not bar Mr. Sprunger’s claim and denied this
    aspect of the County’s motion.
    The trial court then ruled that Mr. Sprunger failed to meet his burden of proving
    the County had seized his house in bad faith because “there is not a scintilla of evidence
    in the record from which a trier of fact could determine intentional misconduct on the
    part of Detective Haynes.” The court continued:
    5. . . . The only evidence in the record before this Court is that Detective
    Haynes did not know Mr. Sprunger before the investigation, had no intent
    to injure Mr. Sprunger, and relied upon the directives of the chief law
    enforcement person in the district, the District Attorney’s Office. Therefore,
    the plaintiff has failed to present any evidence to suggest that Detective
    1
    Tennessee Code Annotated section 28-3-104(a)(1) provides:
    Except as provided in subdivision (a)(2), the following actions shall be commenced
    within one (1) year after the cause of action accrued:
    (A) Actions for libel, injuries to the person, false imprisonment, malicious prosecution, or
    breach of marriage promise;
    (B) Civil actions for compensatory or punitive damages, or both, brought under the
    federal civil rights statutes; and
    (C) Actions for statutory penalties.
    -3-
    Haynes’ actions were intentional, dishonest, or willful amounting to bad
    faith under Tenn. Code Ann. § 40-33-215.
    6. The Court also finds that the court record is devoid of any evidence
    establishing that there was no reasonable basis in law or fact to seize the
    property in question. Even viewing the evidence in the light most favorable
    to the plaintiff, the facts are insufficient in this case to establish conduct on
    the part of Detective Haynes constituting bad faith. The Grand Jury of
    Cumberland County convened and found a true bill against Mr. Sprunger
    for aggravated exploitation of children. The Grand Jury found that Mr.
    Sprunger had approximately 1000-1200 images of small children having
    sex. Additionally, Mr. Sprunger was ultimately convicted of the charge of
    exploitation of children for possession of such images. Accordingly, the
    defendant affirmatively has established that there was a reasonable basis in
    law for the seizure of the subject property.
    The trial court made “an additional and alternative finding” for purposes of
    determining the monetary damages Mr. Sprunger would be entitled to recover if he were
    successful in proving that Detective Haynes acted in bad faith.2 Mr. Sprunger argued that
    he should be entitled to recover damages from the date of the forfeiture to the date the
    Supreme Court held that the forfeiture was improper. The trial court disagreed, however,
    and wrote that if he were able to prove bad faith, Mr. Sprunger would be entitled to
    damages calculated only from the date of the seizure, May 22, 2009, to the date of the
    foreclosure sale, which was October 22, 2010.
    Mr. Sprunger appeals from the trial court’s judgment. He argues that the trial
    court erred in concluding that Detective Haynes did not act in “bad faith,” as that term is
    used in Tenn. Code Ann. § 40-33-215, because his actions had “no reasonable basis in
    law . . . in regards to the seizure.” Tenn. Code Ann. § 40-33-215(d). He also argues that
    the trial court erred in determining the time period during which his house was seized for
    purposes of calculating damages provided by the statute.
    II. ANALYSIS
    A. Standard of Review
    Summary judgment is appropriate “if the pleadings, depositions, answers to
    interrogatories, and admissions on file, together with the affidavits, if any, show that
    there is no genuine issue as to any material fact and that the moving party is entitled to a
    2
    Subsection (c) of Tenn. Code Ann. § 40-33-215 provides that damages “shall be limited to the rental
    value of property similar to that which was seized for the period of time it was seized but in no event shall
    the damages exceed the value of the seized property.”
    -4-
    judgment as a matter of law.” TENN. R. CIV. P. 56.04; see also Rye v. Women’s Care Ctr.
    of Memphis, MPLLC, 
    477 S.W.3d 235
    , 261-62 (Tenn. 2015) (quoting TENN. R. CIV. P.
    56.04). Appellate courts review a trial court’s decision on a motion for summary
    judgment de novo, with no presumption of correctness. 
    Rye, 477 S.W.3d at 250
    (citing
    Bain v. Wells, 
    936 S.W.2d 618
    , 622 (Tenn. 1997)). Courts ruling on motions for
    summary judgment are required to construe the evidence “in the light most favorable to
    the nonmoving party” and to “resolve all inferences in the nonmoving party’s favor.”
    Rains v. Bend of the River, 
    124 S.W.3d 580
    , 587 (Tenn. Ct. App. 2003) (citing Godfrey v.
    Ruiz, 
    90 S.W.3d 692
    , 695 (Tenn. 2002); Johnson v. LeBonheur Children’s Med. Ctr., 
    74 S.W.3d 338
    , 342 (Tenn. 2002)).
    If a party moving for summary judgment does not bear the burden of proof at trial,
    it will be entitled to succeed on its motion if it:
    (1) Submits affirmative evidence that negates an essential element of the
    nonmoving party’s claim; or
    (2) Demonstrates to the court that the nonmoving party’s evidence is
    insufficient to establish an essential element of the nonmoving party’s
    claim.
    Tenn. Code Ann. § 20-16-101; see Eden W. ex rel. Evans v. Tarr, No. M2014-01491-
    COA-R3-CV, 
    2015 WL 2210155
    , at *2 (Tenn. Ct. App. May 8, 2015) (writing that
    defendant moving for summary judgment must either negate an essential element of the
    plaintiff’s claim or prove an affirmative defense that defeats the plaintiff’s claim) (citing
    Doyle v. Town of Oakland, No. W2013-02078-COA-R3-CV, 
    2014 WL 3734971
    , at *2
    (Tenn. Ct. App. July 28, 2014)). Once a moving party satisfies these requirements, the
    nonmoving party “must demonstrate how these requirements have not been satisfied.”
    
    Rains, 124 S.W.3d at 587
    (citing 
    Bain, 936 S.W.2d at 622
    ). “[T]he nonmoving party
    ‘may not rest upon the mere allegations or denials of [its] pleading,’ but must respond,
    and by affidavits or one of the other means provided in Tennessee Rule 56, ‘set forth
    specific facts’ at the summary judgment stage ‘showing that there is a genuine issue for
    trial.’” 
    Rye, 477 S.W.3d at 265
    (quoting TENN. R. CIV. P. 56.06).
    B. Statute of Limitations
    The County argues on appeal that the trial court erred when ruling on its motion
    for summary judgment that Mr. Sprunger filed his bad faith seizure claim within the time
    period allowed by the applicable statute of limitations. Mr. Sprunger contends that the
    County has waived this argument on appeal because it failed to identify this argument as
    an issue on appeal in its brief. As Mr. Sprunger correctly points out, the Tennessee Rules
    of Appellate Procedure provide that if an appellee is requesting relief from the judgment
    being appealed, the appellee’s brief “shall contain the issues and arguments involved in
    -5-
    [its] request for relief as well as the answer to the brief of appellant.” TENN. R. APP. P.
    27(b). However, in the section of its brief entitled “Statement of the Issues on Appeal,”
    the County identifies just one issue: “Whether the trial court erred in granting summary
    judgment to the Defendant in this case.”
    The Tennessee Supreme Court has addressed the requirements of Tenn. R. App.
    27(b) and has written:
    Appellees who have not filed a notice of appeal . . . have three options with
    regard to framing the issues on appeal. First, they may simply accept the
    issues as framed by the appellant. Second, they may reframe the issues
    presented by the appellant if they find the appellant’s formulation of the
    issues unsatisfactory. Third, they may present additional issues of their
    own seeking relief on grounds different than the grounds relied on by the
    appellant . . . .
    Hodge v. Craig, 
    382 S.W.3d 325
    , 335 (Tenn. 2012) (footnotes omitted). “Appellate
    review is generally limited to the issues that have been presented for review,” and “[t]he
    issues should be framed as specifically as the nature of the error will permit in order to
    avoid any potential risk of waiver.” 
    Id. at 334,
    335.
    The Hodge Court stated that “an issue may be deemed waived when it is argued in
    the brief but is not designated as an issue” as required by the Tennessee Rules of
    Appellate Procedure. Id.; see Forbess v. Forbess, 
    370 S.W.3d 347
    , 356 (Tenn. Ct. App.
    2011) (“We may consider an issue waived where it is argued in the brief but not
    designated as an issue.”); Childress v. Union Realty Co., Ltd. 
    97 S.W.3d 573
    , 578 (Tenn.
    Ct. App. 2002) (“[W]hen a party raises an issue in its brief, but fails to address it in the
    argument section of the brief, we consider the issue to be waived.”); see also Lovlace v.
    Copley, 
    418 S.W.3d 1
    , 17 n.6 (Tenn. 2013); State v. Hayes, 
    894 S.W.2d 298
    , 300 (Tenn.
    Crim. App. 1994).
    Mr. Sprunger’s brief raised issues regarding bad faith, damages and an award of
    attorney’s fees and costs. Therefore, it was incumbent upon the County to raise the
    statute of limitations as an issue if the County wanted the appellate court to address it.
    Claiming that the trial court erred in granting summary judgment does not provide the
    specificity that the Tennessee Rule of Appellate Procedure 27 envisions. Thus, because
    the County failed to comply with the mandates of Tenn. R. App. P. 27(b) by specifically
    designating the trial court’s statute of limitations ruling as an issue, the County has
    waived this argument on appeal.3
    3
    We recognize that sometimes appellate courts exercise their discretion to consider issues not so
    designated in a brief. See Ramirez v. Bridgestone/Firestone, Inc., 
    414 S.W.3d 707
    , 716 (Tenn. Ct. App.
    2013). Had we addressed the issue, we would have affirmed the trial court.
    -6-
    C. Bad Faith Seizure
    Mr. Sprunger’s bad faith seizure claim is based on Tenn. Code Ann. § 40-33-215,
    which provides as follows:
    (a) A person who has property seized in accordance with this part shall
    have a cause of action against the seizing agency if the seizing officer acted
    in bad faith in seizing or failing to return property seized pursuant to this
    part.
    (b) A person who prevails in an action against a seizing agency pursuant to
    this section shall be entitled to:
    (1) Reasonable attorney fees and court costs necessarily incurred in seeking
    the return of the seized property and in bringing the action pursuant to this
    section; and
    (2) Monetary damages resulting from the improper seizure of the property.
    (c) Monetary damages recoverable under this section shall be limited to the
    rental value of property similar to that which was seized for the period of
    time it was seized but in no event shall the damages exceed the value of the
    seized property.
    (d) For the purposes of this section, a seizing officer “acts in bad faith”
    when the officer acts intentionally, dishonestly, or willfully or the officer’s
    actions have no reasonable basis in law or fact in regards to the seizure or
    failure to return the property seized.
    Addressing the first part of subsection (d) of the statute, the trial court found that
    “the plaintiff . . . failed to present any evidence to suggest that Detective Haynes’ actions
    were intentional, dishonest, or willful amounting to bad faith under Tenn. Code Ann.
    § 40-33-215.” Mr. Sprunger does not contest this portion of the trial court’s judgment.
    He contends, however, that the trial court erred by failing to find bad faith pursuant to the
    second part of subsection (d) of the statute. He argues that the seizing officer acted in
    bad faith when he seized Mr. Sprunger’s house because the officer’s actions “lacked a
    reasonable basis in the law.” Mr. Sprunger asserts that Detective Haynes’ actions had no
    reasonable basis in law “because the officer failed to follow several clear, unequivocal,
    statutory requirements.” Mr. Sprunger relies on the procedural deficiencies that led the
    Supreme Court to vacate the judicial forfeiture4 to show that the officer’s acts lacked a
    4
    The procedural deficiencies Mr. Sprunger identified include the officer’s failure to prepare a receipt for
    the seizure “[u]pon effecting [the] seizure” (Tenn. Code Ann. § 40-33-203(a)); failure to provide notice of
    the reason the officer believed the property was subject to seizure and forfeiture (Tenn. Code Ann. § 40-
    -7-
    reasonable basis in the law and were, therefore, done in “bad faith,” as that phrase is used
    in the statute. We are not persuaded by Mr. Sprunger’s argument.
    In its opinion vacating the forfeiture of Mr. Sprunger’s house, the Supreme Court
    noted that forfeiture is not favored in Tennessee and that ‘“statutes authorizing forfeitures
    are to be strictly construed.’” 
    Sprunger, 458 S.W.3d at 494
    (quoting Watson v. Tenn.
    Dep’t of Safety, 
    361 S.W.3d 549
    , 555 (Tenn. Ct. App. 2011)). The Court wrote that
    ‘“[o]ne of the essential elements of due process in the confiscation and forfeiture of
    private property is adequate notice to all interested parties.”’ 
    Id. (quoting Redd
    v. Tenn.
    Dep’t of Safety, 
    895 S.W.2d 332
    , 335 (Tenn. 1995)). Mr. Sprunger relies on this
    language to argue that by failing to provide the statutorily mandated notices to Mr.
    Sprunger when his house was seized, Detective Haynes’ conduct necessarily lacked any
    reasonable basis. We agree with Mr. Sprunger that Detective Haynes acted improperly
    by failing to provide Mr. Sprunger with the notices described in the statute. However, it
    does not necessarily follow that Detective Haynes’ procedurally defective seizure “lacked
    any reasonable basis.”
    To decide whether Mr. Sprunger has a bad faith claim against the County for its
    officer’s failure to follow the proper procedure in seizing Mr. Sprunger’s house, we must
    determine whether Detective Haynes had “no reasonable basis in law or fact in regards to
    the seizure.” Tenn. Code Ann. § 40-33-215(d). Statutory construction is a question of
    law that we review de novo on appeal. In re Estate of Tanner, 
    295 S.W.3d 610
    , 613
    (Tenn. 2009). When interpreting a statute, “[o]ur primary objective is to carry out
    legislative intent without broadening or restricting the statute beyond its intended scope.”
    
    Id. (citing Houghton
    v. Aramark Educ. Res., Inc., 
    90 S.W.3d 676
    , 678 (Tenn. 2002)); see
    also Parks v. Tenn. Mun. League Risk Mgmt. Pool, 
    974 S.W.2d 677
    , 679 (Tenn. 1998).
    If a statute is ambiguous, we may consider the legislative history as an aid in our
    interpretation. In re Estate of 
    Tanner, 295 S.W.3d at 614
    ; see also 
    Parks, 974 S.W.2d at 679
    ; Owens v. State, 
    908 S.W.2d 923
    , 926 (Tenn. 1995).
    The legislative history in this case shows that the motivation for enacting the
    statute was to reign in police officers who were overzealous in seizing automobiles that
    did not belong to the perpetrators. The proponents of the bill did not explain the meaning
    of “bad faith,” but they indicated the meaning was the same as that used in the insurance
    code and workers’ compensation laws.5
    33-203(c)(4)); failure to provide notice about the consequences of failing to file a timely claim for
    recovery (Tenn. Code Ann. § 40-33-203(c)(6)); failure to conduct and record an ex parte hearing (Tenn.
    Code Ann. § 40-33-204(b)); failure to send the warrant or notice to an administrative agency within seven
    days of issuance (Tenn. Code Ann. § 40-33-204(g)); and failure by an administrative agency to set and
    conduct a hearing (Tenn. Code Ann. §§ 40-33-207, -210).
    5
    House Floor discussion of HB 2409 at 26:32, 100th Gen. Assembly, remarks of Representative Frank
    Buck, April 1, 1998.
    -8-
    Mr. Sprunger contends that neither the insurance statutes nor the workers’
    compensation laws that reference bad faith require a showing of malicious intent.
    Although Mr. Sprunger may be correct that bad faith in these contexts does not require
    proof of malice, the conduct complained of must include some degree of knowing
    misconduct or indifference. Mr. Sprunger relies for support on Johnson v. Tennessee
    Farmers Mutual Insurance Company, 
    205 S.W.3d 365
    (Tenn. 2006), and Building
    Materials Corporation v. Coleman, No. M2004-01829-WC-R3-CV, 
    2005 WL 3147658
    (Tenn. Workers’ Comp. Panel Nov. 28, 2005). In the first case, the plaintiff/insured’s
    insurance company refused to settle a claim made against the plaintiff for the policy
    limits, resulting in a jury verdict against the insured for nearly four times the amount of
    the policy limits. 
    Johnson, 205 S.W.3d at 369
    . The insured sued his insurance company,
    alleging it acted in bad faith in failing to investigate and settle his claim adequately. 
    Id. The Supreme
    Court discussed the meaning of bad faith in this context, writing:
    Bad faith refusal to settle is defined, in part, as an insurer’s disregard or
    demonstrable indifference toward the interests of its insured. This
    indifference may be proved circumstantially. Bad faith on the part of the
    insurer can be proved by facts that tend to show “a willingness on the part
    of the insurer to gamble with the insured’s money in an attempt to save its
    own money or any intentional disregard of the financial interests of the
    plaintiff in the hope of escaping full liability imposed upon it by its policy.”
    
    Id. at 370
    (citations omitted). The Court explained that “[m]ere negligence is not
    sufficient to impose liability for failure to settle,” 
    id. at 371
    (citing S. Fire & Cas. Co. v.
    Norris, 
    250 S.W.2d 785
    , 792 (Tenn. Ct. App. 1952)), and that “an insurer’s mistaken
    judgment is not bad faith if it was made honestly and followed an investigation
    performed with ordinary care and diligence,” 
    id. (citing Perry
    v. U.S. Fid. & Guar. Co.,
    
    359 S.W.2d 1
    , 7 (Tenn. Ct. App. 1962)).
    In the workers’ compensation context, bad faith has been likened to “fraud or
    wrongfulness.” Coleman, 
    2005 WL 3147658
    , at *5 (citing Hale v. Commercial Union
    Assurance Cos., 
    637 S.W.2d 865
    , 869 (Tenn.1982)). The employer in Coleman denied
    Mr. Coleman’s claim for workers’ compensation, and one issue in the case was whether
    the denial was made in bad faith. 
    Id. at *1-2.
    Addressing what it means for an employer
    to deny a workers’ compensation claim in bad faith, the Coleman panel wrote:
    To deny an insurance claim without a factual basis for doing so and to
    subsequently misrepresent the reasons for the denial is bad faith. This
    action is a departure from the ordinary care and diligence that our case law
    holds is required of an insurer when handling an insured’s claim. The
    denial here reaches beyond an honest but mistaken judgment; it represents
    an unfounded and arbitrary decision made without a full investigation.
    -9-
    
    Id. at *5
    (citation omitted); see Lindenburg v. Jackson Nat’l Life Ins. Co., 
    147 F. Supp. 3d
    694, 701 n.1 (W.D. Tenn. 2015) (stating plaintiff must show insurer failed to act in
    “good faith” when refusing to pay claim in order to prevail on complaint alleging bad
    faith); The Heil Co. v. Evanston Ins. Co., No. 1:08-cv-244, 
    2014 WL 11395157
    , at *6-7
    (E.D. Tenn. Mar. 21, 2014) (“Bad faith refusal to settle is defined, in part, as an insurer’s
    disregard or demonstrable indifference toward the interests of its insured.”) (quoting
    
    Johnson, 205 S.W.3d at 370
    ).
    As these cases show, bad faith in the insurance and workers’ compensation
    environments requires a level of knowledge or indifference that amounts to wrongful
    conduct. In contrast to the situations in Johnson and Coleman, the trial court here found
    Detective Haynes did not engage in “intentional misconduct” in an effort to deprive Mr.
    Sprunger wrongfully of his property and even relied on advice from the District
    Attorney’s Office. Mr. Sprunger does not challenge this finding. We note that Mr.
    Sprunger does not argue that his house was not subject to being seized. Rather, he argues
    only that the seizing officer’s conduct had no reasonable basis in law or fact because the
    officer failed to comply with the procedural requirements when the seizure was effected.
    The cases Mr. Sprunger cites reveal that there must be some proof of knowing
    misconduct or indifference before a court will make a finding of bad faith. He points us
    to no cases in the insurance or workers’ compensation context that require anything less
    for a finding of bad faith, and we are not aware of any such cases. We conclude that for
    purposes of Tenn. Code Ann. § 40-33-215, Detective Haynes did not act in bad faith
    when he seized Mr. Sprunger’s house. In light of our holding that Mr. Sprunger has
    not proved bad faith on the part of Detective Haynes, we need not address Mr. Sprunger’s
    argument regarding the calculation of damages.
    III. CONCLUSION
    The judgment of the trial court is affirmed. Costs of this appeal shall be taxed to
    the appellant, Charles D. Sprunger, for which execution shall issue if necessary.
    ________________________________
    ANDY D. BENNETT, JUDGE
    - 10 -