Understanding the Limits of Insurance Coverage in a Georgia Wrongful Death Case
In a wrongful death lawsuit, the estate and family of a deceased accident victim can seek substantial monetary compensation from the parties responsible for that death. Under Georgia law, the wrongful death plaintiffs are entitled to recover the “full value” of the victim’s life. In many cases, that can mean a multi-million award of damages.
Commercial Insurer Not Responsible for $1.6 Million Wrongful Death Judgment
As with most personal injury cases, however, most of this compensation is actually paid by one or more insurance companies. Every insurance policy is its own legal contract governed by certain provisions and exclusions. And disputes often arise as to whether a given policy may be used to pay for part (or all) of a Georgia wrongful death judgment or settlement.
A recent decision from the Georgia Court of Appeals, Frey v. Nationwide Mutual Insurance Company, offers a helpful illustration. This tragic case involves a drunk driver who struck and killed a motorcyclist who, ironically, was involved in a funeral procession. The motorcyclist’s widow subsequently filed a wrongful death lawsuit against the drunk driver.
That case proceeded to trial. A jury found the drunk driver liable for the victim’s death and awarded $1,655,647 in damages to the widow. The parties agreed that the judgment would only be enforceable against any applicable insurance coverage. This included the drunk driver’s personal auto insurance policy, as well as two uninsured motorist policies held by the victim.
The drunk driver also had a commercial general liability (CGL) policy that he had taken out for his custom glass work business. He assigned any rights under that policy to the widow. She subsequently claimed the CGL policy covered the remaining unpaid portion of the wrongful death judgment. The insurance company rejected the claim, however, pointing to language in the policy that excluded coverage for any bodily injury “arising out of the ownership, maintenance, use or entrustment to others” of an “auto,” which was defined as a “motor vehicle … designed for travel on public roads.”
The widow countered that this auto exclusion was “ambiguous” and only applied when someone other than the policyholder–i.e., the drunk driver in this case–was operating a motor vehicle. The trial court disagreed and ruled in favor of the insurance company. The Court of Appeals upheld that decision.
Indeed, the Court of Appeals said the exclusion was “susceptible of only one reasonable construction.” Nothing in the policy language qualified “who must be using the insured’s automobile” when a bodily injury occurs. As such, the CGL policy could not be used to cover the widow’s wrongful death judgment.
Contact The Spizman Firm Trial Lawyers Today
Winning a jury verdict is usually just the first step in collecting compensation owed in a personal injury or wrongful death case. An experienced Atlanta personal injury lawyer can advise you further on this process and what to expect with respect to your own case. Contact The Spizman Firm Trial Lawyers today to schedule a free consultation. We serve clients throughout Georgia including Atlanta, Dunwoody, Alpharetta, Cobb County, Fulton County, Gwinnett County, Johns Creek and Sandy Springs.
Source:
scholar.google.com/scholar_case?case=9285170943741429325