Case Name: WARD v. BULLOCH COUNTY et al.
Court: Supreme Court of Georgia
Jurisdiction: Georgia
Decision Date: 1988-03-16
Citations: 258 Ga. 92
Docket Number: 45155
Parties: WARD v. BULLOCH COUNTY et al.
Judges: All the Justices concur, except Smith and Weltner, JJ., who dissent.
Reporter: Georgia Reports
Volume: 258
Pages: 92–94

Head Matter:
45155.
WARD v. BULLOCH COUNTY et al.
(365 SE2d 440)

Opinion:
Clarke, Presiding Justice.
At issue on appeal is the interpretation of Article I, Section II, Paragraph IX of the Constitution of the State of Georgia which waives sovereign immunity ".. . as to those actions for the recovery of damages for any claim against the state or any of its departments and agencies for which liability insurance for such claims has been provided but only to the extent of any liability insurance provided." (Emphasis supplied.)
Plaintiff Wayne Ward suffered an injury during his incarceration in Bulloch County Correctional Institute. Ward sued the county and the correctional institute alleging his injury resulted from the negligence of a correctional institute employee. Bulloch County had purchased a general liability insurance policy covering negligent acts of its employees. However, a declaratory judgment action filed by the insurer determined the insurer had no obligation to defend this action, or pay the claim, because the county had not complied with the notice terms of the policy. The county waited seventeen months to present Ward's claim to the insurer. No evidence of bad faith was offered. In granting defendants' motion for summary judgment the trial court held that sovereign immunity had been reinstated, since the insurer had no obligation to defend against or pay Ward's claim. Ward appeals the grant of summary judgment.
The county is not required to purchase liability insurance and is entitled to sovereign immunity in the absence of insurance; however, the mere purchase of liability insurance does not automatically waive sovereign immunity. Rather, sovereign immunity is waived only when the insurer of a state entity satisfies a claim under the coverage provided. If payment is not required under the contract, and bad faith has not been shown, there is no waiver of immunity. Martin v. Ga. Dept. of Public Safety, 257 Ga. 300, 303 (357 SE2d 569) (1987).
Judgment affirmed.
All the Justices concur, except Smith and Weltner, JJ., who dissent.