Northland Ins. Co. v. American Home Assurance Co.

The trial court erred in finding that the two insurance policies at issue did not obligate them to contribute to the settlement of the underlying vehicular accident on a pro-rata basis.

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In this insurance coverage action arising out of a tractor-trailer accident, Wal-Mart Stores, Inc. sought a declaratory judgment against Lexington Insurance Company “Lexington”, Northland Insurance Company “Northland” and American Home Assurance Company “American Home”, in order to determine the parties’ obligations with regard to the settlement of claims related to the underlying accident. Northland appeals a grant of summary judgment in favor of American Home as to Northland’s cross-claim for reimbursement, contending that the trial court erred by finding that American Home’s and Northland’s policies did not obligate them to contribute to the settlement on a pro-rata basis. For the reasons set forth below, we reverse the grant of summary judgment in favor of American Home. Summary judgment is only proper when there is no genuine issue of material fact and the movant is entitled to judgment as a matter of law. OCGA § 9-11-56 c; Britt v. Kelly & Picerne, Inc. 1 “On appeal from the grant or denial of a motion for summary judgment, we review the evidence de novo, and all reasonable conclusions and inferences drawn from the evidence are construed in the light most favorable to the nonmovant.” Punctuation omitted. McCall v. Couture .2

So construed, the record shows that in late March or early April 2001, Wal-Mart hired Pro-Carriers, Inc. a trucking company to transport a loaded trailer from Alabama to Florida. In turn, Pro-Carriers leased a tractor owned by Henry Williams to haul Wal-Mart’s trailer, and Williams was hired to drive the tractor. On April 13, 2001, while hauling the Wal-Mart trailer through Georgia on his way to Florida, Williams was involved in a serious multi-vehicle accident. Subsequently, the injured parties filed tort claims, seeking substantial damages against Pro-Carriers, Wal-Mart, and Williams.

Northland Ins. Co. v. American Home Assurance Co.

The trial court erred in finding that the two insurance policies at issue did not obligate them to contribute to the settlement of the underlying vehicular accident on a pro-rata basis.

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