Supreme Court of Georgia, 1985

Georgia Farm Bureau Mutual Insurance Company v. State Farm Mutual Automobile Insurance Company

Supreme Court of Georgia · Decided November 19, 1985 · Smith

336 S.E.2d 237; 255 Ga. 166; 1985 Ga. LEXIS 957 (South Eastern Reporter, Second Series)

Cases that cite this one

24 later published cases cite this decision.

Allstate Insurance Company v. FIRE & CASUALTY INSURANCE COMPANY OF CONNECTICUT (Ga. Ct. App. 1987)
Continental Insurance v. Southern Guaranty Insurance (Ga. Ct. App. 1989)
STATE FARM FIRE AND CASUALTY COMPANY v. COFIELD (United States District Court for the Middle District of Georgia 2024)
Donovan v. State Farm Mutual Automobile Insurance Company (Ga. Ct. App. 2014)
Nationwide Mutual Fire Insurance v. Progressive Bayside Insurance (Ga. Ct. App. 2006)
Clarendon National Insurance v. Sledge (Ga. Ct. App. 2003)
National General Insurance v. United Services Automobile Ass'n (Ga. Ct. App. 1997)
Cobb v. Allstate Insurance Co. (Me. 1995)
Blevio v. Aetna Casualty & Surety Co. (District Court, D. Massachusetts 1993)
Dixie Ins. Co. v. State Farm Mut. Automobile Ins. Co. (Miss. 1992)
Erie Indemnity Co. v. Lascala (Ga. Ct. App. 1992)
Garnett v. Allstate Insurance Co. (Ala. 1990)
Ford v. Georgia Farm Bureau Mutual Insurance (Ga. Ct. App. 1989)
Travelers Indemnity Co. v. Maryland Casualty Co. (Ga. Ct. App. 1989)
Sanborn v. Farley (Ga. Ct. App. 1989)
Travelers Insurance Co. v. Segan (Ga. Ct. App. 1989)
Bohannon v. Futrell (Ga. Ct. App. 1988)
Futch v. J. C. Penney Insurance (Ga. Ct. App. 1987)
Chicago Insurance Co. v. Lumbermen's Mutual Casualty Co. (Fla. Dist. Ct. App. 1987)
Lewis v. Atlanta Casualty Co. (Ga. Ct. App. 1986)
Georgia Farm Bureau Mutual Insurance Co. v. State Farm Mutual Automobile Insurance (Ga. Ct. App. 1986)
Indian Harbor Insurance Company v. Willard (United States District Court for the Northern District of Georgia 2021)
Humphrey v. Vermont Mutual Automobile Insurance (Vt. 2009)
Dairyland Insurance v. State Farm Automobile Insurance (Ga. Ct. App. 2008)

This list shows which later cases cite this one. It does not say how they treated it, and no review of that has been done. Not a substitute for Shepard’s or KeyCite — verify before relying.

Opinion

Smith, Justice.

Hattie Lee Hudson, plaintiff, sued Milton Costley, defendant, for injuries caused when Costley’s car collided with the car in which Ms. Hudson was riding. State Farm, as the insurer of Hudson, and Georgia Farm, as the insurer of the driver of the car in which Ms. Hudson 'was riding, subsequently became parties to the action. We granted certiorari to consider the Court of Appeals’ affirmance of the trial court’s proration of the liability in excess of Costley’s liability coverage between the company providing Hudson’s uninsured motorist coverage, State Farm, and the company providing Hudson’s host’s uninsured motorist coverage, Georgia Farm. Ga. Farm Bureau Mut. Ins. Co. v. State Farm Mut. Auto. Ins. Co., 173 Ga. App. 844 (328 SE2d *167 737) (1985). We find Hudson’s insurer initially liable for the damages in excess of Costley’s liability coverage in this situation.

Decided November 19, 1985. Ranitz, Mahoney, Forbes & Coolidge, Morton G. Forbes, for appellant. Rex D. Smith, Robert R. Gunn II, Thomas W. Tucker, for appellees.

State Auto Mutual Insurance Co. provided $10,000 personal injury coverage to Costley. State Farm provided $10,000 uninsured motorist coverage to Hudson. Georgia Farm provided $10,000 uninsured motorist coverage to Hudson’s host driver. As the Court of Appeals noted, Ms. Hudson is entitled to $10,000 uninsured motorist coverage: $20,000 total uninsured motorist coverage offset by the $10,000 liability insurance coverage actually available to her. Ga. Farm, supra at 844. The trial court and the Court of Appeals split the benefit of the $10,000 offset equally between two uninsured motorist carriers.

The Court of Appeals correctly noted, in addition, “OCGA § 33-7-11, provides no guidance for resolution of the issue in this case.” Ga. Farm, supra at 845. In such a case, this court may fashion a rule to fill the void. See, e.g., Flewellen v. Atlanta Cas. Co., 250 Ga. 709 (300 SE2d 673) (1983). While the trial court and the Court of Appeals certainly reached an equitable result in a case of first impression, we hold that Hudson’s carrier, State Farm, should bear the $10,000 in damages exceeding the liability coverage and available under the law regulating uninsured motorist coverage in this state. The insurance company receiving a premium from Hudson will be responsible for compensating Hudson under her policy. In addition, this holding should simplify such cases in the future by reducing the number of parties, and thus lawyers, involved.

Judgment reversed.

All the Justices concur.

Case-law data current through December 31, 2025. Source: CourtListener bulk data.