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Muhammad v. Allstate Insurance Co.
Citations: 313 Ga. App. 531; 722 S.E.2d 136; 2012 Fulton County D. Rep. 141; 2012 Ga. App. LEXIS 16Docket: A11A1983
Court: Court of Appeals of Georgia; January 12, 2012; Georgia; State Appellate Court
After Allstate Property and Casualty Insurance Company (Allstate) canceled Ali S. Muhammad’s homeowner’s insurance policy, Muhammad and his corporation, Columbia Hills Management Company, Inc. (CHMC), initiated legal action against Allstate, claiming improper cancellation and seeking specific performance, damages, attorney fees, and litigation costs. Allstate moved to dismiss the case for failure to state a claim, which the trial court granted, dismissing the case with prejudice. Muhammad, representing himself, and CHMC, through counsel, filed a timely appeal. CHMC's appeal was deemed abandoned due to its failure to submit enumerations of error or an appellate brief, and because Muhammad, as a non-attorney, could not represent CHMC in court proceedings. Furthermore, CHMC lacked standing to sue under the insurance policy, as it was not named as an insured party; the policy was issued solely to Muhammad and Rick Muse. The trial court's dismissal converted Allstate’s motion to a motion for summary judgment because it considered evidence outside the initial complaint. Even without formal notice of this conversion, Muhammad waived his right to the 30-day notice by submitting his own affidavit and not objecting to Allstate’s evidence. Summary judgment was deemed appropriate as there were no genuine issues of material fact, with the court affirming that Allstate had properly canceled the policy due to Muhammad's lack of insurable interest following a foreclosure on the property. Muhammad and CHMC appealed the dismissal of their complaint against Allstate, which asserted that Muhammad lacked an insurable interest in the property. Allstate provided a chain of title indicating that Rick Muse granted a security deed to Long Beach Mortgage Company in 2005 and later transferred the property to CHMC, Inc. via a quitclaim deed in 2006. The Lender subsequently foreclosed on the property in 2009. The law states that insurable interest requires a lawful and substantial economic interest in the property, and mere possession does not suffice. Muhammad claimed the property was transferred to both him and CHMC, Inc., but the quitclaim deed only listed CHMC, Inc. as the grantee, with no evidence indicating Muhammad's interest in that entity. Consequently, the court found Muhammad did not provide sufficient evidence for a triable issue, affirming the trial court's summary judgment in favor of Allstate. The document also noted procedural issues, including the incorrect naming of Allstate and the requirement for corporations to be represented by counsel in litigation, emphasizing that non-attorney shareholders cannot represent a corporation. The court reiterated that a person must have a written assignment to maintain an action under an insurance policy not issued in their name.