American International South Insurance v. Floyd
288 Ga. 322
Ga.2010Background
- Donna Floyd was injured in an automobile accident and received the tortfeasor's policy limits from United Automobile Insurance Company.
- Floyd carried an uninsured motorist policy with American International South Insurance Company for $25,000.
- Floyd argued unpaid hospital lien from Atlanta Medical Center should reduce the tortfeasor's liability limits and thus enlarge UM coverage.
- American International contended hospital liens cannot reduce the tortfeasor's coverage under the uninsured motorist statute.
- The trial court granted summary judgment for American International; the Court of Appeals reversed, increasing Floyd's exposure.
- The Supreme Court reversed the Court of Appeals, adopting Adams and holding hospital liens do not reduce tortfeasor coverage.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| May a hospital lien reduce the tortfeasor's coverage to increase UM limits? | Floyd: lien reduces available tortfeasor coverage requiring offset against UM. | American Intl.: liens do not reduce tortfeasor limits under the statute. | Lien cannot reduce tortfeasor coverage; no increase to UM. |
| Does OCGA 33-7-11(b)(1)(D)(ii) allow hospital liens to trigger UM coverage increases? | Floyd: lien payment triggers UM limits under the statute. | American Intl.: statute does not permit lien-based reduction to increase UM. | Statutory interpretation favors no reduction or increase via hospital lien. |
Key Cases Cited
- State Farm Mut. Auto. Ins. Co. v. Adams, 288 Ga. 315 (Ga. 2010) (hospital liens do not qualify as payments that reduce coverage)
- Thurman v. State Farm Mut. Auto. Ins. Co., 278 Ga. 162 (Ga. 2004) (premise of uninsured motorist code and lien treatment)
- Chatham County Hosp. Auth. v. Barnes, 226 Ga. 508 (Ga. 1970) (hospital debt payment from UM funds)