Anderson v. Great American Alliance Insurance Co.

After Ulysses Anderson was involved in a car accident with an intoxicated driver who was driving a company vehicle with his employer's permission, a jury found the driver liable and awarded Anderson one million dollars. Great American, the employer's insurance company, filed suit for a declaration that the driver was not a permissive user – and thus not covered under the applicable insurance policies – because he broke internal company policies. The district court found that the driver was not an insured at the time of the accident, and that Great American owed no duty to cover the damages awarded at the trial of the underlying action. After the Georgia Supreme Court held that inquires into permissive use should extend only to whether a vehicle is used for an approved purpose in Strickland v. Georgia Cas. & Sur. Co., the Georgia Court of Appeals held that a company's internal rules can govern the scope of permissive use, and that violations thereof can negate an individual's status as an insured. In this case, the court found that the district court erred because it followed Barfield, and thus narrowed the scope of permissive use beyond what was permitted by Strickland. Accordingly, the court reversed and remanded. View "Anderson v. Great American Alliance Insurance Co." on Justia Law