Hix v. The Hertz Corp.

In a case of first impression, the Court of Appeals held that a plaintiff in a garnishment action could not recover insurance benefits from a self-insured car rental agency when the renter causing the accident was driving in a manner that violated the rental agreement.

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We granted William Hix’s application for discretionary appeal to consider an issue of first impression: May a plaintiff in a garnishment action recover insurance proceeds from a self-insured car rental agency when the defendant renter was driving in violation of the rental agreement when he caused the accident After reviewing the applicable law, we conclude that the trial court correctly applied the exclusion in the rental agreement to Hix’s claim, and we therefore affirm the judgment. The relevant facts in this case are not in dispute. On January 9, 2004, Carson Bolt rented an SUV from the Hertz Corporation. Bolt declined to purchase the optional liability insurance provided by Hertz. On January 19, 2004, while fleeing from sheriff’s deputies at high speeds and while driving under the influence of drugs to the extent he was impaired, Bolt collided with a car driven by appellant Hix. Hix was injured and his wife was killed in the collision. In addition, Bolt was carrying drugs and stolen property in the SUV. Bolt pled guilty in Banks County to first degree vehicular homicide, serious injury by reckless driving, felony obstruction of an officer, felony fleeing and attempting to elude, and possession of methamphetamine.1 He was sentenced to 20 years in prison and 10 years on probation.

Hix sued Bolt and obtained a consent judgment for $5.1 million, agreeing not to seek to enforce the judgment against any of Bolt’s personal assets. Bolt was the insured on a liability policy with Progressive Insurance Company, which paid the policy limits of $200,000 to Hix. In addition, Hix’s insurance policy included uninsured motorist coverage with Cotton States Mutual Insurance Company, providing the statutory limits.

Hix v. The Hertz Corp.

In a case of first impression, the Court of Appeals held that a plaintiff in a garnishment action could not recover insurance benefits from a self-insured car rental agency when the renter causing the accident was driving in a manner that violated the rental agreement.

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