Allstate Fire Cas. Ins. Co. v. Rothman

Appellant insurer was entitled to set-off against its policy limits the amount the insured received from the tortfeasor's insurer, since it was the only reduced by policy among the two UM carriers providing coverage.

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Charles Rothman was injured in an automobile accident involving a vehicle driven by Duc Nyguen. The truck driven by Rothman at the time of the accident belonged to his employer, Allgood Services of Georgia. Rothman subsequently filed suit against Nyguen, seeking to recover medical expenses in excess of $53,000 and lost wages in excess of $20,000. Rothman also served the complaint on his personal automobile liability insurance carrier, Allstate Fire and Casualty Insurance Company Allstate, as well as Allgood’s insurer, Westfield Insurance Company Westfield, in their capacity as uninsured motorist UM carriers.1

Nyguen was insured by Travelers Indemnity Company under an automobile liability insurance policy with a limit of $100,000. After Travelers paid Rothman the $100,000 available under Nyguen’s policy, a dispute arose between Allstate and Westfield as to whether Allstate was entitled to set off the $100,000 Rothman received from Nyguen’s insurer against the limits of liability otherwise available under the Allstate policy. As a result of this dispute, Rothman filed a motion in the trial court seeking a determination as to the priority of the UM coverages available under the Allstate and Westfield policies. Following a hearing on that motion, the trial court found that because Allstate had received a premium from Rothman, it was primarily responsible for compensating Rothman, without a set-off against or reduction of its policy limits for any recovery Rothman received from Nyguen’s liability insurer. The trial court subsequently certified its order for immediate review, and Allstate filed an application for an interlocutory appeal, which we granted. This appeal followed. For reasons explained more fully below, we reverse the trial court’s order.

Allstate Fire Cas. Ins. Co. v. Rothman

Appellant insurer was entitled to set-off against its policy limits the amount the insured received from the tortfeasor's insurer, since it was the only reduced by policy among the two UM carriers providing coverage.

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