Empire Fire & Marine Insurance v. Driskell

Citations: 262 Ga. App. 447; 585 S.E.2d 657; 2003 Fulton County D. Rep. 2129; 2003 Ga. App. LEXIS 844Docket: A03A0121

Court: Court of Appeals of Georgia; July 1, 2003; Georgia; State Appellate Court

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Empire Fire & Marine Insurance Company appeals a trial court order mandating payment of post-judgment interest to Christine Harris and the estate of Edmund Harris on a $3,150,000 judgment against its insured, Metro Courier, Inc. The underlying case arose from a 1995 collision involving a Metro vehicle, which was not specifically listed in Empire's $1,000,000 liability policy. However, Georgia Public Service Commission regulations required minimum liability coverage, which was addressed in the policy through a 'Form F' endorsement. 

After the Harrises sued Metro and its employee, Metro requested a defense from Empire, which refused, leading to arbitration and a $3,150,000 award for the Harrises. Metro later consented to a judgment on this award and assigned its rights against Empire to the Harrises. The trial court partially granted and denied Empire's motion for summary judgment. Upon appeal, it was determined that although the Metro vehicle was not listed in the policy, the Form F endorsement provided $200,000 in coverage, and Empire had a duty to defend Metro.

After remand, Empire paid the Harrises $200,000 plus interest, but the Harrises argued that Empire owed interest on the entire $3,150,000 judgment. The trial court sided with the Harrises, referencing the 'Supplementary Payments' section of Metro's policy, which states that Empire must pay interest on any judgment it defends until it pays the limit of insurance. Empire's appeal does not contest its duty under this provision but claims that Metro was not an 'insured' because the vehicle involved was not a 'covered auto'.

Metro was determined to be an 'insured' under the insurance policy in question, compelling Empire to defend Metro against a claim covered by the Form F endorsement. The Court established that Empire's duty to defend was limited to those classified as 'insureds'. The prior ruling confirmed Metro's status as an insured, and since the evidentiary posture of the case remained unchanged, this ruling would not be revisited. Although Empire argued that the policy did not provide coverage for unscheduled vehicles, the Court clarified that the Form F endorsement expanded the policy's scope to include such vehicles up to Georgia's statutory minimum liability of $200,000. Therefore, Empire's assertion that its 'Limit of Insurance' was $0 was rejected; the endorsement provided liability coverage for the incident in question.

Additionally, any ambiguity in the supplementary payment provision was interpreted in favor of Metro, establishing the 'Limit of Insurance' at $200,000. The policy required Empire to defend Metro and pay interest on any judgments from suits it defended or should have defended. Empire's argument against the Harrises collecting interest on a $3,150,000 judgment was countered by the principle that supplementary payment provisions ensure prompt payment of the primary amount due under the policy. Hence, Empire's delay in payment justified the use of this provision.

On July 1, 2003, the court affirmed a trial court's summary judgment in favor of the Harrises regarding their claim for post-judgment interest, which was correctly granted based on the precedent established in Driskell v. Empire Fire &c. Ins. Co. The decision emphasized that Empire's insurance policy extended beyond statutory minimum coverage, as it incorporated the duty to defend claims associated with unscheduled vehicles through the Form F endorsement. The case referenced the supplementary payment provision, mandating that the insurer cover interest on the entire judgment amount, not merely that covered by policy limits. The endorsement effectively expanded liability coverage to vehicles not specifically listed in the policy, resulting in total insurance coverage of $200,000 for Mr. and Mrs. Harris. The court noted that Empire had misrepresented its policy coverage, and established legal principles barred the relitigation of issues previously resolved against the appellant. The administratrix of Mr. Harris's estate was substituted as a plaintiff following his death during the litigation.