Royal Ins. Co. v. Georgia Ins. Insolvency

In this declaratory judgment action, workers’ compensation insurer Royal Indemnity Company “Royal” and employer AIT-Atlanta, Inc. “AIT” appeal from the superior court’s ruling on summary judgment that: 1 Royal is obligated under its policy to provide workers’ compensation benefits to an AIT employee after another carrier became insolvent; and 2 Royal is obligated to repay the Georgia Insurers Insolvency Pool “the Pool” $73,359.85 for benefits the Pool paid in error. Because we find the trial court lacked subject matter jurisdiction, we vacate the trial court’s order and remand this case to the trial court with direction to dismiss the Pool’s petition without prejudice. The record shows that on November 30, 1990, David Bullen was injured while working as a temporary employee at an Hitachi Chemical Plant.1 Bullen’s direct employer was Synesys Temporaries, Inc., and Home Insurance Company provided workers’ compensation coverage to Synesys. Royal provided workers’ compensation insurance to Hitachi.

On December 26, 1990, Bullen filed a formal claim for workers’ compensation with the State Board of Workers’ Compensation “the Board” and listed Synesys and Hitachi as his employers. Synesys began making voluntary weekly payments to Bullen on December 1, 1990. Hitachi filed a notice to controvert on February 6, 1991. It is undisputed that the Board never held a hearing on Hitachi’s liability for workers’ compensation benefits. In June 2003, Synesys’s workers’ compensation carrier, Home Insurance Company, became insolvent and the Pool began making payments to Bullen pursuant to former OCGA § 33-36-9.2