McRae, Stegall, Peek, Harman, Smith & Manning, LLP v. Georgia Farm Bureau Mutual Insurance
316 Ga. App. 526
| Ga. Ct. App. | 2012Background
- MSP seeks declaratory relief to enforce its attorney’s charging lien in the Willoughby case and its relation to a separate Roberson judgment.
- Willoughby and Geigers’ insurer Georgia Farm Bureau Mutual Insurance Co. (GFB) paid $690,000 to Roberson’s estate after MSP’s lien arose, prompting MSP to amend claims.
- MSP’s lien attaches to the Willoughby case, not the Roberson case, under OCGA § 15-19-14 (b); Roberson was represented by Wright Gammon, MSP did not represent Roberson.
- GFB’s payment to Roberson was made to satisfy the Roberson judgment, not to satisfy Willoughby’s case; MSP argues it violates the lien, GFB argues it extinguishes the Roberson judgment.
- Trial court dismissed MSP’s declaratory judgment action for lack of a justiciable controversy; this Court affirms the dismissal but remands without prejudice.
- MSP’s remedy, if any, lies in the Willoughby case, not in a separate declaratory judgment action.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Lien attachment to the GFB payment | MSP argues the lien attached to the $690,000 payment. | GFB contends the payment settled Roberson, not Willoughby, so no lien attachment. | Liability undecided; remedy in Willoughby; dismissal affirmed. |
| Justiciability under the Declaratory Judgment Act | MSP seeks to clarify rights and protect interests. | No genuine, unsettled legal controversy; action should be dismissed. | Dismissal proper; without prejudice. |
| Redundancy of MSP claims with Willoughby case | Questions duplicate those in Willoughby. | Issues properly addressed in Willoughby. | Proceedings dismissed as duplicative; remanded without prejudice. |
| Appropriate form of relief given accrued rights | Declaratory relief is needed to guide MSP’s lien rights. | Relief should be sought in Willoughby, not here. | Remand for dismissal without prejudice; no merits on merits here. |
Key Cases Cited
- Howe & Assocs., PC. v. Daniels, 274 Ga. App. 312, 618 SE2d 42 (2005) (Ga. App. 2005) (charging lien cannot be defeated by settlement; remedy in action to which lien attaches)
- Payton v. Wheeler, 13 Ga. App. 326, 79 SE 81 (1913) (Ga. App. 1913) (lien fixed when suit filed; settlement does not defeat lien)
- Nodvin v. Fabian, 153 Ga. App. 716, 266 SE2d 253 (1980) (Ga. App. 1980) (attorneys’ rights over actions to enforce liens similar to clients’ rights)
- Baker v. City of Marietta, 271 Ga. 210, 518 SE2d 879 (1999) (Ga. 1999) (declaratory relief acknowledged but not always proper where other remedies exist)
- Drawdy v. Direct Gen. Ins. Co., 277 Ga. 107, 586 SE2d 228 (2003) (Ga. 2003) (declaratory judgment usage to resolve rights and status in insurance disputes)
- Southeast Service Corp. v. Savannah Teachers Properties, 263 Ga. App. 513, 588 SE2d 310 (2003) (Ga. App. 2003) (declaratory relief limited when rights accrued and no future action needed)