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Capitol Indem. Corp. v. Fraley

The plaintiff in the underling injury suit lacked standing to complain that insurer of the bar where he was injured did not provide a timely notice of its reservation of its rights to its insured.

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Capitol Indemnity Corporation filed this declaratory judgment action seeking a judicial determination as to whether coverage existed under its commercial general liability policy for claims made by Thomas Fraley against Dixie Tavern Buckhead, Inc., Dixie Tavern, Inc., and 287 East Paces Ferry Enterprises, Inc. d/b/a Dixie Tavern, as well as against three John Doe defendants. The trial court denied Capitol’s motion for summary judgment, and the insurance company appeals.1 We reverse. On or about June 30, 2001, Fraley and a group of friends were patrons at the Dixie Tavern. As Fraley and his friends were exiting the bar, one member of the group engaged in a verbal exchange with a bartender or bouncer. This individual, along with two other bouncers, then allegedly became involved in a physical altercation with Fraley and his friends. Fraley asserts that during this episode, he was the victim of an assault and battery. Fraley sought to recover damages arising out of this incident in the underlying lawsuit in this case.

During the pertinent time, Capitol carried a contract of insurance in favor of 287 East Paces Ferry Enterprises, Inc., d/b/a Dixie Tavern. 287 East Paces Ferry was the only named insured on the policy. Neither Dixie Tavern Buckhead, Inc., nor Dixie Tavern, Inc. was named as an insured under the policy.

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