Security Life Ins. Co. of Am. v. Clark

The Supreme Court reversed the Court of Appeals' decision in Security Life Ins. Co. v. Clark, 239 Ga. App. 690 1999, holding that it violated the law of the case doctrine on remand from the Supreme Court's decision in Clark v. Security Life Ins. Co., 270 Ga. 165 1999.

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This Court has granted certiorari in this matter two times in as many years. In 1997, certiorari was granted to the Court of Appeals in order to consider three issues,1 and this Court issued an opinion that addressed those issues and left the remainder of the Court of Appeals’ opinion untouched.2 Thereafter, on remand, the Court of Appeals vacated a division of its earlier opinion that had been left undisturbed by this Court, prompting us to now grant certiorari for a second time.3 As explained below, the Court of Appeals’ action on remand violated the “law of the case doctrine,” as well as other principles of appellate jurisprudence. Therefore, we reverse.

In 1994, the appellees Gordon and Clarice Clark purchased a health insurance policy underwritten by appellant Security Life Insurance Company. Fipps, as agent for Security Life, solicited the Clarks to purchase the policy. In response to questions on the insurance application, Mr. Clark disclosed a pre-existing heart condition to agent Fipps, but Fipps submitted a forged application to Security Life that failed to disclose the pre-existing condition. Based on the forged application, Security Life issued a policy to the Clarks. When the false information came to light after the Clarks submitted a claim, Security Life rescinded the policy. The Clarks sued Security Life for fraud based upon Fipps’ forgery and Security’s failure to comply with Georgia’s insurance regulations, and also under Georgia’s RICO Act,4 contending that Security Life 1 sold them a policy that violated Georgia insurance laws, and 2 participated in a scheme intended to avoid compliance with Georgia’s insurance regulations.5 After the trial court denied Security Life’s motion for directed verdict on the RICO claim, the jury found in favor of the Clarks, and judgment was entered in their favor.

Security Life Ins. Co. of Am. v. Clark

The Supreme Court reversed the Court of Appeals' decision in Security Life Ins. Co. v. Clark, 239 Ga. App. 690 1999, holding that it violated the law of the case doctrine on remand from the Supreme Court's decision in Clark v. Security Life Ins. Co., 270 Ga. 165 1999.

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