Infinity General Insurance Co. v. Litton
308 Ga. App. 497
| Ga. Ct. App. | 2011Background
- Litton sustained injuries in a Nov. 27, 2007 automobile collision while allegedly working for his employer JM Brick and Stone.
- Infinity General Insurance, Infinity, insured Mendenhall's commercial vehicle and answered in Infinity's name, becoming a party to the suit.
- The jury awarded damages; the trial court held Infinity's UM coverage at $1,000,000 per person under the policy with Mendenhall.
- Litton contends policy language and Georgia law yield $1,000,000 UM coverage; Infinity contends it is $50,000 per person.
- Questions center on whether the 2006 renewal was a renewal (carrying forward $50,000 UM) or a new contract (default $1,000,000 UM) and whether subsequent renewals preserved the lower UM amount.
- The court ultimately held the 2006 renewal was a renewal of the prior policy, thus preserving $50,000 UM in the 2007 policy and reversing the judgment against Infinity.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the 2006 policy was a renewal or a new contract. | Litton argues 2006 policy was a new contract triggering default UM of $1,000,000. | Infinity contends 2006 policy was a renewal, carrying forward the prior UM of $50,000. | 2006 policy was a renewal; UM remained $50,000. |
| Whether Mendenhall needed to reelect UM coverage for renewal. | Litton says new election required to obtain full UM under default rules. | Infinity argues no new election needed due to renewal. | No new election required; renewal preserved $50,000 UM. |
| Timeliness of Infinity's appeal. | Litton argues appeal timing is proper under standard . | Infinity's notice filed timely within 30 days of j.n.o.v. order. | Appeal timely; motion to dismiss denied. |
Key Cases Cited
- Zurich American Ins. Co. v. Beasley, 293 Ga. App. 8, 666 S.E.2d 83 (Ga. App. 2008) (renewal vs. new contract analysis for UM coverage)
- Savannah Yacht Corp. v. Thunderbolt Marine, 297 Ga. App. 104, 676 S.E.2d 728 (Ga. App. 2009) (contract interpretation and renewal impact on UM terms)
- Soufi v. Haygood, 282 Ga. App. 593, 639 S.E.2d 395 (Ga. App. 2006) (statutory UM election requirements and renewal implications)
- Park ’N Go of Ga. v. United States Fidelity & Guar. Co., 266 Ga. 787, 471 S.E.2d 500 (Ga. 1996) (contract construction and renewal concepts in insurance)