Sentry Select Insurance Co. v. Essie Treadwell

CourtCourt of Appeals of Georgia
DecidedNovember 28, 2012
DocketA12A1052
StatusPublished

This text of Sentry Select Insurance Co. v. Essie Treadwell (Sentry Select Insurance Co. v. Essie Treadwell) 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
Sentry Select Insurance Co. v. Essie Treadwell, (Ga. Ct. App. 2012).

Opinion

SECOND DIVISION BARNES, P. J., ADAMS and MCFADDEN, 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. (Court of Appeals Rule 4 (b) and Rule 37 (b), February 21, 2008) http://www.gaappeals.us/rules/

November 28, 2012

In the Court of Appeals of Georgia A12A1052. SENTRY SELECT INSURANCE COMPANY et al. v. TREADWELL.

MCFADDEN, Judge.

This is an appeal from an order striking the defendants’ answer for spoliation

of evidence. There was spoliation. But the trial court’s findings as to spoliation of

certain categories of evidence are not supported by the record. Accordingly, we

reverse the order striking the answer and remand the case for the trial court to

determine what, if any, sanctions are appropriate.

On the evening of December 9, 2006, Martin Treadwell, Jr. was towing a car

behind his pickup truck as he drove on Interstate 16. His wife Essie Treadwell was

a passenger in the pickup truck. Tony Martin, who was driving a tractor-trailer for

Premier Transportation, ran into the towed car from the rear. On November 17, 2008, Essie Treadwell filed a lawsuit against Martin, J.H.O.C., Inc., d/b/a Premier

Transportation, and Sentry Select Insurance Company, alleging negligence and

seeking to recover damages for personal injuries. Treadwell subsequently moved to

strike the defendants’ answer due to alleged spoliation of the following evidence:

Martin’s logbooks, data from a GeoLogic system on his vehicle and data from the

Electronic Control Module (ECM) on his vehicle. On November 9, 2011, the trial

court issued an order granting the motion and striking the answer, finding as matters

of fact that the defendants had “destroyed the driver’s trip documents, including log

books, ECM data, Geo[L]ogic data and results from the investigation.” After we

granted their application for interlocutory review, Sentry Select, Premier and Martin

filed this appeal.

1. Spoliation.

“Spoliation refers to the destruction or failure to preserve evidence that is

necessary to contemplated or pending litigation. Such conduct creates the

presumption that the evidence would have been harmful to the spoliator.” (Citations

and punctuation omitted.) Baxley v. Hakiel Industries, 282 Ga. 312, 313 (647 SE2d

29) (2007). The appellants contend that the trial court erred in finding spoliation

2 because there is no evidence that they were aware of any contemplated litigation. The

contention is without merit.

The record shows that shortly after the collision, the Treadwells’ attorney sent

a letter to Sentry, stating that he was representing them in the claim involving Martin

and Premier, that the Treadwells were continuing medical treatment for injuries

sustained in the collision, and that once they reached their maximum medical

improvement he would “be in touch . . . regarding settlement of this claim.” The

attorney also requested to be provided with certain documentation in regard to the

claim. Several days later, Sentry sent a reply letter, noting that it was the liability

insurer for Premier, that it was not admitting liability, that its investigation revealed

its insured was not responsible for the accident, and that in the event of any settlement

of the claim it would need the attorney’s tax identification number.

Tim Pilato, Premier’s executive vice president, deposed that in his 28 years in

the trucking industry he has been involved in a lot of litigation and that every

collision that occurs on the highway “does involve a claim.” Pilato testified that,

following Premier’s typical protocol, an adjuster was sent to the scene to investigate

the accident. Pilato also contacted Paul Kostelac, Premier’s retained risk management

consultant, to help with the investigation of the collision. Among other things,

3 Kostelac deposed that, based on information he had received about the Treadwells,

“we knew we had a very adversarial claimant initially.”

It is true that notice of liability is not the same as notice of litigation, and “the

simple fact that someone is injured in an accident, without more, is not notice that the

injured party is contemplating litigation sufficient to automatically trigger the rules

of spoliation. [Cits.]” Kitchens v. Brusman, 303 Ga. App. 703, 707 (1) (a) (694 SE2d

667) (2010). But in this case there is more than the simple fact that Essie Treadwell

was injured in the accident. Rather, as recounted above, there is ample evidence

showing that shortly after the collision occurred the appellants were aware of

contemplated litigation based on the letter from the Treadwells’ attorney, their own

investigation, their knowledge that every such highway collision result in claims and

their information that these particular claimants were very adversarial. See Baxley,

supra at 313 (defendant took steps to investigate accident yet failed to preserve

recording of pertinent events); Kitchens, supra at 707-708 (1) (a) (defendants put on

notice of contemplated litigation where, among other things, lawyer was investigating

and asking for records); Wal-Mart Stores v. Lee, 290 Ga. App. 541, 544-546 (1) (659

SE2d 905) (2008) (receipt of demand letter triggered duty to preserve evidence such

that subsequent destruction of videotape constituted spoliation). Accordingly, the

4 appellants have shown no error in the trial court’s finding that some spoliation

occurred.

2. The evidence in question.

The trial court found that the defendants had destroyed Martin’s logbooks,

GeoLogic data, ECM data, and the results of an investigation. “In determining

whether to impose sanctions for evidence spoliation, trial courts routinely and

necessarily make factual findings about whether spoliation occurred . . . [and] the

importance of the compromised evidence.” (Citation omitted.) Bouve & Mohr v.

Banks, 274 Ga. App. 758, 762 (1) (618 SE2d 650) (2005). We will uphold such

findings of discovery abuse if there is any evidence to support them. Id. In this case,

while there is evidence to support the trial court’s factual findings that the appellants

destroyed the logbooks and GeoLogic data, Treadwell has pointed to no evidence

supporting the findings as to spoliation of the ECM data and the investigation results.

a. Logbooks.

As an initial matter, we note that although the appellants have made assertions

in their statement of facts about what the logbooks would have shown, they have not

enumerated that the trial court erred in finding spoliation of the driver logbooks.

Indeed, the appellants admit that they had possession of the logbooks after the

5 accident, maintained control of them for over a year, and then purged them after

arbitration proceedings between their property damage insurer, who is not Sentry, and

Martin Treadwell’s insurer. Accordingly, appellants have shown no error in the trial

court’s finding of spoliation as to the logbooks.

b. GeoLogic.

Appellants argue that the trial court erred in finding that the GeoLogic data was

destroyed, that such information did not exist. The argument is contradicted by the

record.

During his deposition, Pilato testified that the GeoLogic is an electronic,

satellite-based system that Premier has on its trucks for communication; that at the

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Related

Chapman v. Auto Owners Insurance
469 S.E.2d 783 (Court of Appeals of Georgia, 1996)
Kitchens v. BRUSMAN
694 S.E.2d 667 (Court of Appeals of Georgia, 2010)
Jones v. Krystal Co.
498 S.E.2d 565 (Court of Appeals of Georgia, 1998)
Wal-Mart Stores, Inc. v. Lee
659 S.E.2d 905 (Court of Appeals of Georgia, 2008)
Chicago Hardware & Fixture Co. v. Letterman
510 S.E.2d 875 (Court of Appeals of Georgia, 1999)
Baxley v. Hakiel Industries, Inc.
647 S.E.2d 29 (Supreme Court of Georgia, 2007)

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