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World Harvest Church, Inc. v. Guideone Mutual Insurance Co.

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Before CARNES, FAY and ALARCÓN,*fn1 Circuit Judges.

This is an insurance case raising some questions of Georgia law. Without issuing a written reservation of rights, an insurer assumed the defense of a lawsuit for almost eleven months but stopped defending near the end of the discovery period because it decided that there was no coverage. At that point the policy holder hired its own attorneys to defend the lawsuit. About one month after the new attorneys entered an appearance in the lawsuit, the insurer filed a motion for summary judgment. The policy holder’s new attorneys filed a motion requesting more time for discovery, and that motion was denied.The case was transferred to another judge, who partially granted summary judgment to the plaintiff and awarded damages. The final judgment was entered about 17 months after the policy holder’s new lawyers had filed notice of their appearance in the case. An appeal was taken but the plaintiff and policy holder later settled for a damage award of $1 million.

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