Aundray Barnes v. State Farm Fire and Casualty Company

Court of Appeals of Georgia·Decided August 26, 2024·No. A24A0852·Published

Opinion

THIRD DIVISION

DOYLE, P. J.,

HODGES and WATKINS, JJ.

NOTICE: Motions for reconsideration must be physically received in our clerk’s office within ten days of the date of decision to be deemed timely filed.

https://www.gaappeals.us/rules

August 26, 2024

In the Court of Appeals of Georgia A24A0852. BARNES v. STATE FARM FIRE AND CASUALTY COMPANY.

HODGES, Judge.

Plaintiff Aundray Barnes appeals from the trial court’s grant of summary judgment to defendant State Farm Fire and Casualty Company, the insurance company providing liability coverage to defendant Lyft, Inc. The sole issue on appeal is whether the trial court erred in determining that Lyft is not a motor carrier as defined by the Georgia Motor Carrier Act and that State Farm, as its liability insurance provider, therefore could not be directly named as a defendant in Barnes’ lawsuit. Because State Farm has not met its burden of proving that Lyft is exempt from the Georgia Motor Carrier Act’s definition of motor carrier, it was proper for

Barnes to directly name State Farm in her lawsuit. We therefore reverse the trial court’s decision.

We review the construction of statutes under a de novo standard. See Hankla v. Postell, 293 Ga. 692, 693 (749 SE2d 726) (2013). Likewise, “[w]hen this Court reviews the grant or denial of a motion for summary judgment, it conducts a de novo review of the law and the evidence.” (Citation and punctuation omitted.) EZ Green Assocs. v. Georgia-Pacific Corp., 318 Ga. App. 655, 658 (1) (a) (734 SE2d 485) (2012). “[T]he opposing party should be given the benefit of all reasonable doubt, and the court should construe the evidence and all inferences and conclusions therefrom most favorably toward the party opposing the motion.” (Citation and punctuation omitted.) Id. at 657-658 (1) (a).

So viewed, the underlying facts as detailed in Barnes’ complaint — assumed true for the sake of this appeal — show that Barnes was involved in a motor vehicle collision with a car driven by Rome Leite-Brown in June 2020. At the time, Leite- Brown was operating his vehicle as a driver for Lyft. In May 2022, Barnes sued Liete- Brown, Lyft, and State Farm as Lyft’s insurance provider. State Farm answered and moved for summary judgment, claiming that Lyft is not a motor carrier as defined by

Georgia statutory law, and, therefore, State Farm could not be joined directly in Barnes’ lawsuit. The trial court granted State Farm’s motion, and this appeal followed.

The general rule in Georgia is that “a party may not bring a direct action against the liability insurer of the party who allegedly caused the damage unless there is an unsatisfied judgment against the insured or it is specifically permitted either by statute or a provision in the policy.” Hartford Ins. Co. v. Henderson & Son, 258 Ga. 493, 494 (371 SE2d 401) (1988); accord Haezebrouck v. State Farm Mut. Auto. Ins. Co., 252 Ga. App. 248 (1) (555 SE2d 764) (2001). However, there are exceptions to this general rule. For example, in cases brought against “motor carriers,” Georgia law permits direct actions against liability insurance companies. See OCGA § 40-1-112 (c) (2012) (“It shall be permissible under this part for any person having a cause of action arising under this part to join in the same action the motor carrier and the insurance carrier, whether arising in tort or contract.”)1; OCGA § 40-2-140 (d) (4) (2015) (“Any person having a cause of action, whether arising in tort or contract, under this Code section

1 This statute was amended effective July 1, 2024, which included a rewrite of subsection (c) to limit when a party can join in the same cause of action the motor carrier and its insurance provider. See Ga. L. 2024, p. 966, § 1. The cited portion, however, remained unchanged.

may join in the same cause of action the motor carrier and its insurance carrier.”)2; see also Nat. Indem. Co. v. Lariscy, 352 Ga. App. 446, 449 (835 SE2d 307) (2019) (holding that the statutory exceptions in OCGA §§ 40-1-112 (c) and 40-2-140 “permit a direct action by an injured party against an insurance carrier which insures a motor carrier”).

The purpose of permitting joinder of an insurance company in a claim against a motor carrier is to further the policy of the Motor Carrier Act, that is, to protect the public against injuries caused by the motor carrier’s negligence. Additionally, it enables injured persons to recover compensation more efficiently and quickly and encourages insurers to resolve legitimate claims by settlement.

(Citations and punctuation omitted.) Hughes v. Ace American Ins. Co., 368 Ga. App. 650, 651-652 (888 SE2d 341) (2023). The direct action statutory exceptions are in derogation of common law, and their terms therefore require strict compliance. Lariscy, 352 Ga. App. at 449.

Barnes’ sole contention on appeal is that the trial court erred in determining that Lyft is not a motor carrier as defined by the Georgia Motor Carrier Act and,

2 This statute was amended effective July 1, 2024, which included a rewrite of subsection (d) (4) to limit when a party can join in the same cause of action the motor carrier and its insurance provider. See Ga. L. 2024, p. 966, § 2. The quoted section, however, remained in the statute.

therefore, in dismissing her direct action against State Farm, Lyft’s liability insurer. This appears to be a question of first impression in Georgia, and, given the statutory language enacted by the General Assembly in the Georgia Motor Carrier Act, we agree with Barnes that the trial court erred in this case.

When we consider the meaning of a statute, we must presume that the General Assembly meant what it said and said what it meant. To that end, we must afford the statutory text its plain and ordinary meaning, we must view the statutory text in the context in which it appears, and we must read the statutory text in its most natural and reasonable way, as an ordinary speaker of the English language would. . . . Applying these principles, if the statutory text is clear and unambiguous, we attribute to the statute its plain meaning, and our search for statutory meaning is at an end.

(Citations and punctuation omitted.) Deal v. Coleman, 294 Ga. 170, 172-173 (1) (a) (751 SE2d 337) (2013). “Indeed, as long as the statutory language is clear and does not lead to an unreasonable or absurd result, it is the sole evidence of the ultimate legislative intent.” (Citation and punctuation omitted.) AMG, LLC v. Ga. Dept. of Transp., Case No. A24A0376, 2024 Ga. App. LEXIS 267, at *9 (2) (June 26, 2024).

With these principles in mind, we necessarily turn to the Georgia Motor Carrier Act as our starting point for determining whether Lyft is a motor carrier. According

to State Farm, ride share network services like Lyft are governed only by Part 4 of the Motor Carrier Act, and not Part 2. We disagree.

1. The Georgia Motor Carrier Act. The Georgia General Assembly enacted the Motor Carrier Act, which included Parts 1-3, in 2012. Ga. L. 2012, p. 580, § 1.3 Part 1 encompasses OCGA §§ 40-1-50 through 40-1-58, generally addressing the creation of the Motor Carrier Act and penalties for violations of the Act.4 Part 2 encompasses OCGA §§ 40-1-100 through 40-1-130, generally addressing Act definitions, commissioner authorizations, applications and requirements of motor carriers, and certifications of motor carriers.5 Part 3 encompasses OCGA §§ 40-1-150 through 40-1- 170, generally addressing Georgia limousine carriers.6 Under Part 2 of the Act, a “motor carrier” is defined as

[e]very person owning, controlling, operating, or managing any motor vehicle, including the lessees, receivers, or trustees of such persons or receivers appointed by any court, used in the business of transporting for hire persons, household goods, or property or engaged in the activity of

3 The Act became effective on July 1, 2013. Ga. L. 2013, p. 838, § 20.

4 Ga. L. 2012, p. 580, § 1.

5 Ga. L. 2012, p. 580, § 1.

6 Ga. L. 2012, p. 580, § 1.

Free access — add to your briefcase to read the full text and ask questions with AI

Aundray Barnes v. State Farm Fire and Casualty Company, (Ga. Ct. App. 2024).

Aundray Barnes v. State Farm Fire and Casualty Company (Aundray Barnes v. State Farm Fire and Casualty Company) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

United States v. Johnson
529 U.S. 53 (Supreme Court, 2000)
Locke's Graphic & Vinyl Signs, Inc. v. Citicorp Vendor Finance, Inc.
648 S.E.2d 156 (Court of Appeals of Georgia, 2007)
Brunson v. Valley Coaches, Inc.
327 S.E.2d 758 (Court of Appeals of Georgia, 1985)
United States v. Travelers Indemnity Co.
320 S.E.2d 164 (Supreme Court of Georgia, 1984)
Occidental Fire & Casualty Co. of North Carolina v. Johnson
691 S.E.2d 589 (Court of Appeals of Georgia, 2010)
Hartford Insurance v. Henderson & Son, Inc.
371 S.E.2d 401 (Supreme Court of Georgia, 1988)
Jarrard v. Clarendon National Insurance
600 S.E.2d 689 (Court of Appeals of Georgia, 2004)
Sapp v. Canal Insurance
706 S.E.2d 644 (Supreme Court of Georgia, 2011)
Milligan v. State
703 S.E.2d 1 (Court of Appeals of Georgia, 2010)
Suntrust Bank v. Bickerstaff
824 S.E.2d 717 (Court of Appeals of Georgia, 2019)
Hankla v. Postell
749 S.E.2d 726 (Supreme Court of Georgia, 2013)
Deal v. Coleman
751 S.E.2d 337 (Supreme Court of Georgia, 2013)
Stalvey v. State
436 S.E.2d 579 (Court of Appeals of Georgia, 1993)
Haezebrouck v. State Farm Mutual Automobile Insurance
555 S.E.2d 764 (Court of Appeals of Georgia, 2001)
EZ Green Associates, LLC v. Georgia-Pacific Corp.
734 S.E.2d 485 (Court of Appeals of Georgia, 2012)
Mornay v. National Union Fire Insurance
769 S.E.2d 807 (Court of Appeals of Georgia, 2015)
DOMINGUE v. FORD MOTOR COMPANY
314 Ga. 59 (Supreme Court of Georgia, 2022)