HIPPO INSURANCE SERVICES v. ATLANTIC RESTORATION SERVICES, INC.

CourtCourt of Appeals of Georgia
DecidedMarch 3, 2025
DocketA24A1226
StatusPublished

This text of HIPPO INSURANCE SERVICES v. ATLANTIC RESTORATION SERVICES, INC. (HIPPO INSURANCE SERVICES v. ATLANTIC RESTORATION SERVICES, INC.) 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
HIPPO INSURANCE SERVICES v. ATLANTIC RESTORATION SERVICES, INC., (Ga. Ct. App. 2025).

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

March 3, 2025

In the Court of Appeals of Georgia A24A1226. HIPPO INSURANCE SERVICES et al. v. ATLANTIC RESTORATION SERVICES, INC.

DOYLE, Presiding Judge.

Atlantic Restoration Services, Inc. (“Atlantic”), sued Hippo Insurance

Services d/b/a Hippo Home Insurance and its underwriter Spinnaker Insurance

Company (collectively, “Hippo”), seeking to recover payment for water damage

mitigation services rendered to Hippo’s insured, Amber Dawson.1 Hippo moved for

summary judgment on the ground that Atlantic was not a proper party because any

assignment of insurance rights by Dawson was invalid without Hippo’s approval. The

trial court denied the motion as untimely under a standing order requiring motions for

summary judgment to be filed within 30 days of the close of discovery. Because

1 Dawson is not a party to this action. Hippo’s motion was, in substance, a challenge to the real party in interest, a matter in

abatement that may be asserted at any time, we vacate the order denying Hippo’s

motion and remand for further proceedings.

The material record is undisputed. In the late summer or early fall of 2021,

Dawson’s condominium experienced a plumbing leak that caused damage to her unit.

She engaged Atlantic to dry out the impacted areas and remediate any water damage.

The Atlantic service agreement contained language stating that Dawson “irrevocably

and fully assign[s] and transfer[s] to [Atlantic] all of [Dawson’s] legal and equitable

rights, title, and interest under all insurance policies arising from claims for the

damage [Atlantic] was hired to address. . . , includ[ing] . . . the rights to collect

insurance policy benefits and proceeds. . . [and] to sue the insurance company. . . .”

On the other hand, it is undisputed that Dawson’s homeowner’s insurance agreement

with Hippo contained the following provision: “Assignment of this policy will not be

valid unless we give our consent.”

Hippo paid for part of Atlantic’s services, but after a dispute arose between

Atlantic and Hippo regarding the payment for additional services, Atlantic sued Hippo

in June 2022, seeking payment for remediation services it rendered to Dawson. The

2 complaint alleged, in part, that Dawson had assigned her rights under the Hippo

policy to Atlantic. Hippo answered, denying that subject matter jurisdiction existed,

that Atlantic was a real party in interest, or that Atlantic had standing; Hippo also

explicitly denied the validity of any assignment of Dawson’s insurance benefits.

As the parties engaged in discovery, the discovery period was initially set to

close on June 5, 2023. In an order entered on June 12, 2023, the trial court extended

the discovery period through September 3, and required the parties to submit a

proposed consolidated pretrial order by July 5, 2023. In three subsequent consent

orders, the trial court extended the time to submit the pre-trial order: first to

September 3, then to September 30, and last to November 10. This was due in large

part to the fact that Dawson’s deposition, originally scheduled for August 30 pursuant

to a subpoena, was delayed repeatedly.

Dawson sat for her deposition on November 3, and five days later, on

November 8, Hippo filed a motion styled as a motion for summary judgment

challenging Atlantic’s standing to sue and asserting that Dawson’s assignment of

rights to Atlantic was invalid under the insurance policy. On November 13, the parties

filed a consolidated pre-trial order, and on the same day, the trial court entered an

3 order denying Hippo’s motion on the ground that it was filed “156 days after the

discovery period closed” on June 5, 2023, despite the earlier order extending

discovery through September 3, 2023. The court cited a standing order requiring

motions for summary judgment to be filed no later than 30 days after the close of

discovery.2

Hippo moved the court to reconsider the denial of its motion for summary

judgment, and the court denied reconsideration. The court then certified its ruling for

2 Although we do not reach the propriety of the trial court’s reliance on the standing order, we note that under Uniform Superior Court Rule 1.2 (E),

courts may promulgate standing orders . . . only if actual notice of such order is provided to all parties. . . . “Actual notice” shall be deemed to have been satisfied by providing copies of such orders to attorneys and pro se litigants, service by a party upon opposing parties and publicized dissemination in such locations as the offices of the clerks of court, law libraries, legal aid societies and public libraries. Mere filing of standing orders and posting in prominent places in the courthouse shall not suffice as actual notice. [Emphasis supplied.]

Trial courts should take precautions to make sure that all parties receive actual notice of standing orders. 4 immediate review, and this Court granted Hippo’s application for interlocutory

review.

1. Hippo contends that the trial court erred because it was entitled at any time

to challenge Atlantic’s standing to sue as the real party in interest under the insurance

contract. This presents a question of law, which we review de novo.3 Based on the

substance of Hippo’s motion, challenging the assignment of Dawson’s rights under

the insurance contract to Atlantic, we agree.

OCGA § 9-11-17 (a) requires that “[e]very action shall be prosecuted in the

name of the real party in interest.” And “[t]he doctrine of privity of contract requires

that only parties to a contract may bring suit to enforce it.”4

Here, Atlantic’s standing to sue on the insurance contract as a real party in

interest depends on the assignment from Dawson, which Hippo challenged in its

motion. Although Hippo styled its motion as a motion for summary judgment,

3 See, e.g., EMJ Constr., LLC v. Beacon Sales Acquisition, Inc., 373 Ga. App. 453, 455 (908 SE2d 699) (2024) (holding that summary judgment and contract construction present questions of law reviewed de novo). 4 (Punctuation omitted.) Sanders v. TD Auto Finance, LLC, 366 Ga. App. 376, 378 (1) (883 SE2d 53) (2023). See also Patrick Malloy Communities., LLC v. Community & Southern Bank, 334 Ga. App. 76, 79 (1) (778 SE2d 242) (2015) (analyzing privity as a basis for determining the real party in interest). 5 “pleadings, motions, and orders are construed according to their substance and

function and not merely by nomenclature.”5 Despite the style used by Hippo, the

motion was a direct challenge to Atlantic’s ability to sue Hippo under the insurance

contract based on the assignment that Hippo argued was invalid.6 Such a challenge to

a party’s status as the real party in interest “is a matter of abatement . . . , [and a]n

objection on this ground may be made at any time up to and including a trial on the

merits.”7 Therefore, the motion presented a matter of abatement that was properly

5 (Punctuation omitted.) Born v. Born, 364 Ga. App. 511, 517 (1) (874 SE2d 846) (2022). See also First Christ Holiness Church, Inc. v. Owens Temple First Christ Holiness Church, Inc., 282 Ga.

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