Black v. Cotton States Insurance

253 S.E.2d 565, 149 Ga. App. 71, 1979 Ga. App. LEXIS 1723
CourtCourt of Appeals of Georgia
DecidedJanuary 25, 1979
Docket56899
StatusPublished

This text of 253 S.E.2d 565 (Black v. Cotton States Insurance) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Black v. Cotton States Insurance, 253 S.E.2d 565, 149 Ga. App. 71, 1979 Ga. App. LEXIS 1723 (Ga. Ct. App. 1979).

Opinion

McMurray, Judge.

An automobile collision occurred involving three automobiles in Catoosa County, Georgia.

Dykes, Ellison and Bently were traveling in a southerly direction along a highway in an automobile owned and operated by Dykes when another vehicle driven by Howard and owned by Espy approached from the south, veered to the left and struck the vehicle of Dykes. At the same moment a vehicle driven by Dennis Oliver Black, owned by his father, Thomas Oliver Black, was proceeding south and allegedly was following too close to the vehicle driven by Dykes.

The vehicle of Black allegedly struck the vehicle of Dykes in the rear at the same time that the collision occurred between the Espy and Dykes vehicles. The Espy vehicle was insured by Hanover Insurance Company. The Black vehicle was insured by Shield Insurance Company, an affiliate of Cotton States Insurance Company.

Dykes, Ellison and Bently as plaintiffs sued Howard, Espy, Dennis Oliver Black and Thomas Oliver Black as defendants. Howard and Espy answered this complaint filed by Dykes, Ellison and Bently. However, no answer was interposed on behalf of the Blacks. Howard and Espy effected a settlement with two of the tort-plaintiffs (Dykes and Ellison) in the amount of $7,000 by a covenant not to sue, and a dismissal with prejudice occurred as to Howard and Espy.

On September 12, 1974, the tort-plaintiffs then proceeded to judgment against the Blacks in the sum of $14,000 by way of default and an execution was issued thereon.

Thereupon the Blacks (Thomas Oliver Black, individually and as next friend and father of Dennis Oliver Black, a minor) proceeded in equity to sue all concerned named as defendants in a complaint in six separate counts. They sought to set aside the judgment obtained against them, an injunction restraining and enjoining the enforcement by the defendants Dykes, Ellison and Bently of the judgment; and contribution and [72]*72indemnification from Hanover Insurance Company and the defendants Howard and Espy. They prayed also that the Department of Public Safety and Colonel J. Herman Cofer, Commissioner, and his agents and employees be restrained and enjoined from enforcing the driver’s license suspension and motor vehicle registration suspension pending a final determination of the instant case. They also sought judgment against defendants Andrews and Springfield, the two insurance agents of Cotton States Insurance Company (Shield Insurance Company) upon the contract of insurance in the sum of $14,000 principal, together with reasonable attorney fees and for negligence of said defendants seeking damages in the sum of $25,000, and punitive damages against them for $500,000; and for such other and further relief as the court deemed proper.

The Blacks contend that upon receipt of the tort complaint of Dykes, Ellison and Bently they delivered the same to H. R. Andrews, d/b/a Andrews Insurance Agency, an alleged agent of Shield Insurance Company. Whereupon Andrews advised them he was terminating his insurance agency business and the Blacks should take the tort complaint to Tom Springfield, d/b/a Springfield Insurance Agency, also an alleged agent of Shield Insurance Company, and same was taken to Springfield. The Blacks further contend that the first knowledge they had that Shield Insurance Company (referred to here as Cotton States Insurance Company) had not interposed a defense on their behalf was when an agent of the Department of Public Safety of the State of Georgia attempted to obtain physical possession of the Blacks’ Georgia driver’s licenses pursuant to the Georgia Motor Vehicle Safety Responsibility Act.

Discussing the counts separately, Count 1 was to set aside the judgment of the tort-plaintiffs, contending the same was void because Dennis Oliver Black was a minor and no guardian ad litem had been appointed in the case. This count alleged that neither had been properly summoned or served; that process was invalid; and both were entitled to the protection of the Soldiers’ and Sailors’ Relief Act since the minor was in service. Further, the covenant not to sue without giving prior notice of [73]*73settlement as required by Code Ann. § 56-408.1 (Ga. L. 1963, p. 643) was equivalent to a release, and the dismissal of the tort-plaintiffs’ action against the defendants Howard and Espy with prejudice enured to the benefit of these plaintiffs (in the case sub judice) as a matter of law.

Count 2 sought to enjoin the driver’s license suspension by the Department of Public Safety.

As an alternative to Count 1, Count 3 was for contribution and indemnification against the defendants Hanover Insurance Company, Howard and Espy. Alternatively to Count 1, Count 4 was for credit against the judgment of $7,000 for the sums paid by the defendants Hanover Insurance Company, Howard and Espy. Count 5 sought judgment against the defendants Shield Insurance Company (Cotton States Insurance Company), Springfield and Andrews in the sum of $14,000, as well as attorney fees incurred in the prosecution of the plaintiffs’ claim for breach of insurance contract and negligence in failing to defend. Count 6 sought contribution "together with other actual charges in the total sum of’ $25,000 from Shield Insurance Company (Cotton States Insurance Company), Springfield and Andrews, as well as $500,000 punitive damages for their gross negligence in failing to defend.

Defenses were interposed by all defendants, including Georgia Farm Bureau Insurance Company, a third party defendant joined by defendant Shield Insurance Company asserting it had coverage rather than Shield.

Motions for summary judgment were then filed by all defendants and also by the plaintiffs. Plaintiffs’ joint motion for summary judgment was sustained as to paragraph 5, Count 1 for the reason that the covenant not to sue executed by the tort-plaintiffs Dykes and Ellison in favor of Howard, Espy and Hanover Insurance Company on August 1, 1974, constituted a bar to the further assertions and actions by the defendants Dykes and Ellison of claims against plaintiffs Thomas Oliver Black and Dennis Oliver Black. The court also ordered stricken as null and void the judgments in favor of Dykes in the [74]*74amount of $2,000 and in favor of Ellison in the sum of $12,000. The clerk of Superior Court of Catoosa County was ordered to cancel such judgments and mark same void, based upon the cases of Spearman v. Southeastern Hwy. Contracting Co., 125 Ga. App. 85 (186 SE2d 484), s.c. 126 Ga. App. 549 (191 SE2d 351); and Scarbrough v. Andrews Motor Co., 121 Ga. App. 29 (172 SE2d 451) and cits. The court also held that the receipt and release dated August 15,1974 by Ellison as guardian of Frankie Marie Bently, a minor, constituted a release of the Blacks. All other grounds of plaintiffs’ joint motion for summary judgment were denied and dismissed as moot.

The trial court also sustained the motion for summary judgment filed by Hanover Insurance Company, Espy and Howard and sustained the motion for summary judgment filed by Shield Insurance Company, Andrews and Springfield. It likewise held the relief sought against Ellison, Dykes and Bently was moot.

On August 18, 1978, Andrews and Springfield filed their notice of appeal. It was subsequently dismissed (dated August 24,1978 as the date of service), but filed on August 28, 1978. However, on August 25, 1978, the plaintiffs Black prepared a notice of cross appeal which was filed on August 28, 1978.

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Bluebook (online)
253 S.E.2d 565, 149 Ga. App. 71, 1979 Ga. App. LEXIS 1723, Counsel Stack Legal Research, https://law.counselstack.com/opinion/black-v-cotton-states-insurance-gactapp-1979.