Ramos-Silva v. State Farm Ins. Co.

The subrogation right granted by OCGA § 33-7-11f survives the execution of a limited release executed pursuant to OCGA § 33-24-41.1.

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The issue in this case is whether an uninsured motorist insurer can sue a tortfeasor for subrogation after the tortfeasor has been released from personal liability except to the extent that insurance coverage, other than the tortfeasor’s personal liability policy, exists. Because we answer this question in the affirmative, we affirm the judgment of the trial court. The pertinent facts of this case are undisputed. Appellant Roberto R. Ramos-Silva was involved in a motor vehicle collision with Mary Reddy, the insured of appellee State Farm Insurance Company. Reddy was injured in the collision. Ramos-Silva’s liability insurer paid Reddy and her husband1 $25,000, the limit of available liability coverage under Ramos-Silva’s policy, in exchange for their execution of a document entitled “Limited Liability Release Pursuant to OCGA § 33-24-41.1″ the “Limited Release”. The Limited Release expressly provided that: “this Limited Release is entered into pursuant to the provisions set forth in OCGA § 33-24-41.1, and it is intended that the force and effect of the Limited Release shall be as intended by the aforementioned Code section.” It released completely Ramos-Silva’s insurer from future liability for Reddy’s injuries and released Ramos-Silva from personal liability “except to the extent other insurance coverage, including, but not limited to uninsured or underinsured motorist benefits, is available which covers the claim or claims of Reddy and her husband against Ramos-Silva.”

Following Reddy’s settlement with Ramos-Silva, State Farm paid Reddy an additional $75,000 pursuant to the Uninsured Motorist “UM” provision of her automobile insurance policy. State Farm then filed the present action against Ramos-Silva seeking subrogation for the money it paid to Reddy. Ramos-Silva moved for summary judgment, arguing that the Limited Release barred State Farm’s action. The trial court denied Ramos-Silva’s motion, and this Court granted his application for interlocutory appeal.

Ramos-Silva v. State Farm Ins. Co.

The subrogation right granted by OCGA § 33-7-11f survives the execution of a limited release executed pursuant to OCGA § 33-24-41.1.

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