FOURTH D I VI SI ON DOYLE, P. J. , M I LLER and DI LLA RD, JJ.

N O T IC E : M otions for r e c ons i de r a tion m us t be ph y sic a l ly r e ce iv ed i n our c le r k ’s offic e w ithin te n da y s of the da te of de c is ion to be de e m ed tim e ly file d.

http://w w w .ga a ppe a ls .us /r ule s /

Nov em ber 13, 2014



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A1 4 A1 24 8

. DONOVAN v

. STATE FARM MUT. AUTOM OBILE INS. CO.

M I LLE R , J u d ge.

L a r a D ono v an was i n

ju red i n an au t o m o b i l e acci d en t i n vo l vi n g a v eh ic le dr ive n

b y J o n at h o n M cM i l l on

. Do n o van s u ed M cM il l o n an d t h ree u n d eri n su red m o t o r i s t

(“ UM ”) carri ers , i n cl u d i ng St at e Farm
, h er m o t h er’ s i n su ran ce carri er. 1 McM i l l o n ’ s

i n s u ran ce carri er, Pro g res si v e In s u ran ce Co m pan y , p ai d Do n o v an t h e $ 2 5
, 0 00 l i m i t s

o f h i s l i ab i l i t y i n s u ran ce p ol i cy

. St at e Farm s u b s eq u en t l y m o ved fo r s u m m ary
ju d g m en t , co n t en d i n g t h at i t i s en t i t l ed t o a set -o f f fo r t h e $ 2 5 ,0 0 0 p ai d by

1 Th e o t h er t wo UM carri ers , Gran g e M u tu al Cas u al t y Co m p an y an d In t eg o n M u t u al in s u ran ce Co m

p an y (“ G M AC”), are n ot p art i es t o th i s ap p eal

. Ad d it i o n al l y , we n ot e t h at t h e i n s u ran ce p o l i ci es are n o t i ncl u d ed i n t h e ap p el l at e reco rd o n ap p eal

. Nev ert h el es s , Do n o v an an d St at e Farm en tered i n t o a s ti p u l at i o n o f fact s wi t h reg ard
t o t h e acci d en t an d t h e i n s u ran ce po l i ci es at i s s u e i n t h i s cas e. Acco rd i ng l y , we n eed

n o t rem an d t h i s cas e fo r t he t ri al co u rt t o s u p p lem en t t h e reco rd o n ap p eal

.M cM i l lo n ’ s i n s u rer. T h e t ri al co u rt g ran t ed St at e Farm ’ s m o ti o n , an d Do n o v an

ap p eal s

. O n ap p eal
, Do n o van co n t en ds t h at St at e Farm i s n o t e n t i t l e d t o s et o ff t h e

$ 2 5 ,0 0 0 p ai d un der M cM i l l o n’ s i n s u ran ce p o l i cy ag ai ns t St at e Farm ’ s $2 5
, 0 0 0 UM

co v erag e l i m it . Fo r t he reas o n s t h at fo l lo w, we affi rm

.

“ On ap p eal fro m t he g ran t o f s u m m ary ju d g m en t t h i s Co u rt co n d u ct s a d e n o v o

rev i ew o f t h e ev i d en ce t o det erm i n e wh et h er th ere i s a g en u i n e i s s u e of m at eri al fact

an d wh et h er t h e u n d i s p u t ed fa c t s , v i ewed i n th e l i g h t m o s t fav o rab l e t o t h e

n o n m o v i n g p art y , warran t ju d g m en t as a m at t er o f l aw.” (Ci t at i o n s an d pu n ct u at i o n

o m it t ed .) C

a m p b el l v. Th e La n d i n g

s As s n

. , In c. , 2 8 9 Ga. 6 1 7
, 61 8 (7 1 3 SE2 d 8 6 0 )

(2 0 1 1).

So v i ewed , t h e ev i d en ce s h o ws t h at i n Oct o b er 2 0 0 9 , Do n o van was ri d i n g as

a p a s s e n g e r i n a p i ck up t ru ck wh en t h e t ru ck was i n vo l v ed i n a co l li s i o n wi th

M cM i l lo n ’ s v eh i cl e. At t h e t i m e o f t h e acci d en t , Do n o van , wh o i s an ad u l t , res i d ed

wi t h h er m o t h er i n Th o m as v i ll e, Geo rg i a. Do n ov an s u s t ai n ed i n ju ri es i n t h e acci d en t

t h at s h e cl ai m s ex ceed $ 10 0 ,0 0 0

.

In ad di t i o n t o M cM i l l o n ’ s $ 2 5
, 0 0 0 l i ab i li t y i n s u ran ce p o l i cy i s s u ed by

Pro g res s i v e In su ran ce, t h ree UM p o l i ci es p ot en t i al l y p ro v i d e co v erag e: (1 ) t h e St at e

Farm p o li cy i s s ued t o D o no v an ’ s m o t h e r ; ( 2 ) a G ran g e M u t u al Cas u al t y Co m p an y

2p o l i cy i s s u ed t o Do n o v an ’ s m o t h er; an d (3 ) a GM AC po l i cy i s s u ed t o t he o wn er o f

t h e t ru ck i n w h i ch Do n o v an w as ri d i n g as a p as sen g er. Each of t h e UM p o l i ci es h as

a $ 2 5
, 0 00 co verag e l i m i t

. Th e Gran g e an d GM AC p o l i ci es are s t an d ard / ex ces s UM

p o li ci es , wh i ch p o t en t i al l y p ro v i d e co v erag e in ex ces s o f M cM i l lo n ’ s $ 2 5 ,0 0 0

l i ab i l i t y i n s u ran ce l i m i t s

. Th e St at e Farm UM p o li cy i s a d i fferen ce-i n -l i m i t s p o l i cy

.

In her s o l e en u m erat i on o f erro r, Do n o v an co n t en d s t h at th e t ri al co u rt erred in

h o l d i n g t h at St at e Farm i s en t i t l ed to a s et -o ff fo r t he $ 2 5 ,0 0 0 i n l i ab i l i t y co v erag e

t h at s h e recei v ed fro m M cM i l l o n ’ s i n s u rer. Sp eci fi cal l y , Do n o v an arg u es t h at b o th

s t ack i n g an d p ri o ri t y of p ay m en t s ru l es ap p l y u nd er Geo rg i a law wh en m o re t h an o n e

UM carri er i s av ai l a b l e reg ard l es s of t h e t y pe o f p o li ci es i n v o l v ed

. Un d er t h e

ci rcu m s t an ces o f t h i s cas e, t h e t ri al co u rt d i d n ot err i n g ran t i n g s u m m ary ju d g m en t

t o St at e Farm

.

Th e pu rp o s e o f u n i n s ured m o t o ri s t o r UM co v erag e i s t o p l ace th e i n ju red i n s u red i n t h e s am e p o s i t i o n as i f th e o ffen d i n g u n i n s ured

m o t o ri s t w ere co v ered wi t h l i a b i l i t y i n s u ran ce.

. . . Th e Geo rg i a

u n i n s u red m o t o ri s t s t at u t e i s d es i gn ed t o p ro t ect t h e i n s ured as t o h i s

a c t u al l o s s , wi t h i n th e l i m i t s o f t h e p o l i cy o r p o li ci es of wh i ch h e i s a b en efi ci ary

.

3(Ci t at i o n s an d pu n ct u at i o n om i t t ed .) S t at e Fa rm M u t

. Au t o mo b i l e In s

. Co

. v. Ad a ms ,

2 8 8 Ga. 3 1 5
, 3 16 -3 1 7 (7 0 2 SE2 d 8 9 8) (2 0 1 0 ). Un d er Geo rg i a law, t here are t wo t y p es

o f av ai l ab l e UM co v erag e. OCGA § 3 3 -7 -1 1 (b ) (1 ) (D) ( i i )

. Th e fi rs t o p t io n i s an

ex ces s po l i cy wh i ch p ro v id es fo r UM i n s uran ce i n ex ces s o f an y av ai l ab le l i ab i l i t y

i n s u ran ce. OCGA § 3 3 -7 -1 1 (b ) (1 ) (D) (i i ) (I). Th e s eco nd o pt i on i s a di fferen ce-i n

l i m i ts p o l i cy wh i ch p ro v i d es fo r UM co v erag e o n l y fo r t h e am o u n t o f th e d i fferen ce

b et ween t h e av ai l ab l e l i ab il i t y in s u ran ce an d t h e l i m i t s o f th e i n s u red ’ s UM co v erag e.

OCGA § 3 3 -7 -1 1 (b ) (1 ) (D) (i i ) (II).

W h ere m o re t h an on e UM p o l i c y is av ai l ab l e t o co v er an i n j u red p art y ’ s

d am ag es , Geo rg i a l aw a l l o ws an i n s u red t o s t ack t h e l i m i t s o f al l av ai l ab l e UM

co v erag e t o s at i s fy a ju dg m en t

. See Pr o gr es s ive Cl a s s i c In s

. Co

. v. Na t i o n wi d e Mu t

.

Fi r e In s

. Co

. , 2 9 4 Ga. Ap p

. 7 8 7, 7 8 8 (6 7 0 SE2 d 4 97 ) (2 0 08 ). Geo rg i a co u rt s em p l oy

t h r e e p ri o ri t y -o f-p ay m en t ru l es o r t es t s fo r d et erm in i n g t h e o rd er i n wh i ch t h e

av ai l ab l e UM p o l i ci es s h ou l d b e s t ack ed : t h e “ recei p t o f p rem i u m ” t es t , t h e “ m o re

cl o s el y i d en t i fi ed wi t h ” t es t , an d t h e “ ci rcu m s t an ces o f t h e i nju ry ” t es t

. 2 S ee

2 Un d er t h e “ recei p t o f p re m i u m ” tes t , t h e i n su rer t hat
recei ves a p rem iu m

fro m t he i nju red i n s u red i s d eem ed t o b e p ri m ari l y res p o n s ib l e fo r p ro v i di n g co v erag e. Un d er th e

“ m ore cl o s el y i d en t i fi ed wi th ” tes t , t h e p o l i cy wi t h wh ich

4Pr o gr es si ve , s u p ra, 2 9 4 Ga. Ap p

. at 7 8 8

. In cas es i nv o l v i n g m o re t h an o n e d i fferen cei n

- l i m it s UM po l i cy , t ri al co u rt s u s e t h es e p ri o ri t y o f p ay m en t ru l es t o d et erm i n e

wh i ch UM carri er i s en ti t l ed t o a s et -o ff fo r t he av ai l ab l e am o un t o f l i ab il i t y i n s u ran ce

co v erag e. See G a

. Fa rm Bu r ea u Mu t

. In s. Co

. v. S t a t e Fa r m Mu t

. A u t o mo b i l e In s

.

Co

. , 25 5 Ga. 1 6 6
, 1 6 7 (3 3 6 S.E.2 d 2 3 7 ) (1 9 8 5 ) (ap p ly i n g recei p t o f p rem i um t es t to

d et erm i n e wh i ch U M i n s u r er was en t i t l ed to s et -o ff); Tr a vel er s In d em. Co

. v.

Ma r yl a n d Ca s

. Co

. , 1 9 0 G a. Ap p

. 4 5 5
, 4 5 7 (3 7 9 SE2 d 1 8 3 ) (1 9 8 9 ) (ap p ly i n g m o re

cl o s el y i d en t i fi ed t es t ).

Here, t h e t ri al co u rt w as n o t req u i red to ap p l y t h e p ri ori t y o f p a y m en t ru l es ,

b ecau s e t h i s cas e i n v ol v es o n l y o n e i n s u ran ce carri er

– St at e Farm

– wh o i s en t i t l ed

t o a s et -o ff fo r t h e $ 2 5 ,0 0 0 t h at Do n o van recei v ed fro m McM i l l o n ’ s l i ab i l i t y

i n s u ran c e c arri er. Nei t h er Gran g e n o r G M A C are en t i t l ed t o a s et -o ff b ecau s e t h ey

p ro v id e ex ces s UM co v erag e. See Ga

. Au t o

. In s

. Law § 3 9 -5 (d ) (reg ard l es s o f

t h e i n ju red p art y is m o s t cl o s el y i den ti fi ed m u s t p ro v id e
p ri m ary co v erag e. If n ei t h er o f t h o se t es t s i s h el p fu l i n a
p art i cu l ar cas e, th e co u rt s l o o k to t he ci rcu m s t an ces o f th e i n ju ry t o s ee wh ich p o l i cy

p ro vi d es p ri m ary

co v erag e.

(Ci t at i o n s o m i t t ed .) Pr o g res s i ve , s u p ra, 2 9 4 Ga. Ap p . at 7 8 8

.
5p ri o ri t y o f p ay m en t ru l es , i n s u rers p ro v id i n g ex ces s , i .e. ad d ed -o n , UM co v erag e are

n o t en t i t l ed to an y set -o ff fo r av ai lab l e l i a b i l it y co v erag e). M o reo v er, Do n o v an

s t ip u l at ed th at n ei t h er t h e Gran g e n o r t h e G M AC p o li ci es are en t it l ed t o a s et -o ff

ag ai n s t M cM i l l o n ’ s l i ab i l it y i n su ran ce l i m i t s

.

St at e Farm
, o n t h e o t h er h an d
, i s en t i t l ed t o a s et -o ff u n d er O CGA § 3 3 -7 -1 1

(b ) (1 ) (D) (i i ) (II) b ecau s e St at e Farm i s t h e s o l e d i fferen ce-i n -l i m i t s UM carri er

wh o s e po l i cy p o ten t i al ly p ro v i d es co verag e fo r Do n o v an ’ s cl ai m s

. See Ga. Au t o

. In s

.

Law § 39 -5 (d ). Aft er ap p l y i ng t h e $2 5 ,0 0 0 s et -o ff t o t h e $2 5 ,0 0 0 li m i ts un d er t h e

St at e Farm p o li cy , th ere is n o w n o fu rt h er co v erag e w i t h t hi s carri er. Acco rd i n g l y , n o

i s su e o f fact rem ai n s reg ard i n g t h e av ai l ab i l i t y o f UM co v erag e u n d er th e St at e Farm

p o l i cy an d St at e Farm

i s en ti tl ed t o s u m

m ary ju d g m en t as a m at t er o f l aw.

Ju d g men t a f f i r m ed . Do yl e, P. J., a n d

Di l la r d

, J., co n cu r

.

6