Georgia Supreme Court Refuses to Allow Bad Injuries Make Bad Law

Justice is Blind but it is Not Stupid

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Dorothy Wright and her grandchildren, Cameron Costner and Layla Partridge, (collectively, the “Decedents”) were killed when their vehicle was struck by a stolen vehicle that was being chased by College Park, Georgia Police Department officers. 

FACTS

The Plaintiffs assert that the insurance policy limit is $5,000,000 for the three deaths, while Atlantic maintains that the policy limit is capped at $700,000 under the relevant statutory scheme and the terms of the City’s policy.

The trial court issued a summary judgment that the relevant Policy limit is $5,000,000.  The Court of Appeals affirmed the trial court’s ruling.

DISCUSSION

The Georgia Constitution provides municipalities performing their governmental functions with immunity from civil liability, which only the General Assembly (or the Constitution itself) may waive. In 2005 the General Assembly established an automatic waiver of sovereign immunity for losses arising out of claims for the negligent use of covered motor vehicles up to certain prescribed limits, including $700,000 for the bodily injury or death of two or more persons in a single occurrence.

Under current Georgia law, it is not against public policy for local government entities to decline to purchase liability insurance or to purchase liability insurance that does not cover any and all losses resulting from the use of their motor vehicles. Thus, the Immunity Endorsements do not contravene public policy.

In light of the Immunity Endorsements, the City did not purchase insurance coverage for the Plaintiffs’ asserted claims above the applicable automatic sovereign immunity waiver of $700,000. As a result the judgment was reversed and the plaintiffs recovery was limited to the statutory waiver.

ZALMA OPINION

Georgia waived sovereign immunity up to $700,000, whether insured or not. Since the city had sovereign immunity over $700,000 the trial court and court of appeal did not have the right to change the policy wording or the statute because the injuries were so severe. Justice is blind but not stupid. Justice requires application of the words of statutes and contracts fairly and as written.

© 2022 – Barry Zalma

Barry Zalma, Esq., CFE, now limits his practice to service as an insurance consultant specializing in insurance coverage, insurance claims handling, insurance bad faith and insurance fraud almost equally for insurers and policyholders.

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