Conditional Release Allows Supplemental Claims
Post 5238
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A Release Should Totally Resolve Dispute
In Harvey et al. v. Hall, No. A25A1774, Court of Appeals of Georgia, Fourth Division (December 3, 2025) Paul Harvey, an employee of Arthur J. Dovers (d/b/a 3D Mobile Home Services), drove a truck towing a trailer loaded with machinery and equipment. Harvey fell asleep, veered off the road, and crashed into a culvert, causing Lamar Hall serious injuries.
FACTS OF SETTLEMENT
On August 18, 2020, Hall signed a limited liability release under OCGA § 33-24-41.1, releasing Harvey, Dovers, and their insurer (Georgia Farm Bureau Insurance Company) from liability for the accident in exchange for $50,000, “except to the extent other insurance coverage is available which covers the claim.”
Dovers’s general liability insurer (Republic-Vanguard Insurance Company) denied coverage, citing a policy exclusion for bodily injuries from automobile use or entrustment. Dovers’s commercial auto insurer (Wesco Insurance Company) denied coverage, stating the truck was not a covered vehicle. Hall filed a personal injury suit against Harvey and Dovers, seeking over $557,000 in medical expenses.
PROCEDURAL POSTURE
Harvey and Dovers moved for summary judgment, arguing the release barred Hall’s claims absent evidence of other available insurance coverage. The trial court denied the motion via summary order without explanation. Harvey and Dovers appealed.
ISSUE
Whether the trial court erred in denying summary judgment, given the limited release and lack of evidence of other insurance coverage.
Limited Release under OCGA § 33-24-41.1:
A statutory mechanism allowing settlement with a tortfeasor’s liability insurer up to policy limits while preserving claims for underinsured motorist (UIM) benefits or other available coverage.
It releases the tortfeasor and settling insurer from personal liability but permits pursuit of judgment against the tortfeasor solely to access other insurance.
Affirmative Defense Burden:
Defendant must prima facie establish the defense (e.g., via the release document). The burden then shifts to plaintiff to produce evidence creating a jury issue (analogous to surviving a directed verdict). Failure to do so warrants summary judgment.
Application:
Appellants met their burden by submitting the release and insurers’ outright coverage denials. Hall produced no evidence (e.g., policy analysis or litigation against insurers) showing coverage under Wesco/Republic-Vanguard policies or elsewhere.
Rejection of Hall’s Arguments:
Denial letters do not “prove existence” of coverage; they affirm non-coverage. Hall could have litigated coverage against the insurers but did not, forfeiting the claim.
HOLDING
Harvey and Dovers were entitled to summary judgment as a matter of law, as Hall failed to produce evidence of available other insurance coverage to overcome the affirmative defense of release.
ZALMA OPINION
When an insurer settles a claim against an insured it will usually obtain a release from the claimant eliminating any further claims against the insured for the accident. In this case, the release allowed the plaintiff to sue the insured again to see if it could find further insurance available to pay Hall for his injuries. Hall tried and failed in an effort that could be avoided entirely if the release was not conditional literally encouraging litigation against the insured and its insurers.
(c) 2025 Barry Zalma & ClaimSchool, Inc.
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Even With a Default the Plaintiff Needs Evidence
Post number 5262
Read the full article at https://www.linkedin.com/pulse/just-because-defendant-defaults-court-still-has-zalma-esq-cfe-f9k2c, ee the video at and at and at https://zalma.com/blog plus more than 5250 posts.
In Chesapeake Employers’ Insurance Company v. SCD Premier Staffing Agency, LLC, et al., No. 1840-2024, Court of Special Appeals of Maryland (January 6, 2026) dealt with a complaint in the Circuit Court for Worcester County against SCD Premier Staffing Agency, LLC (“SCD”) and its owner, Suze Cadet, alleging fraud, intentional misrepresentation, negligent misrepresentation, and breach of contract, and seeking both compensatory and punitive damages.
FACTUAL BACKGROUND
SCD is or was a Maryland limited liability company owned by Cadet, and CEIC provides workers’ compensation insurance to Maryland employers.
In ...
ZIFL Volume 30, Number 2
THE SOURCE FOR THE INSURANCE FRAUD PROFESSIONAL
Post number 5260
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Zalma’s Insurance Fraud Letter (ZIFL) continues its 30th year of publication dedicated to those involved in reducing the effect of insurance fraud. ZIFL is published 24 times a year by ClaimSchool and is written by Barry Zalma. It is provided FREE to anyone who visits the site at http://zalma.com/zalmas-insurance-fraud-letter-2/ This issue contains the following articles about insurance fraud:
Read the full 19 page issue of ZIFL at https://zalma.com/blog/wp-content/uploads/2026/01/ZIFL-01-15-2026.pdf.
The Contents of the January 15, 2026 Issue of ZIFL Includes:
Use of the Examination Under Oath to Defeat Fraud
The insurance Examination Under Oath (“EUO”) is a condition precedent to indemnity under a first party property insurance policy that allows an insurer ...
ERISA Life Policy Requires Active Employment to Order Increase in Benefits
Post 5259
Read the full article at https://lnkd.in/gXJqus8t, see the full video at https://lnkd.in/g7qT3y_y and at https://lnkd.in/gUduPkn4, and at https://zalma.com/blog plus more than 5250 posts.
In Katherine Crow Albert Guidry, Individually And On Behalf Of The Estate Of Jason Paul Guidry v. Metropolitan Life Insurance Company, et al, Civil Action No. 25-18-SDD-RLB, United States District Court, M.D. Louisiana (January 7, 2026) Guidry brought suit to recover life insurance proceeds she alleges were wrongfully withheld following her husband’s death on January 9, 2024.
FACTUAL BACKGROUND
Jason Guidry was employed by Waste Management, which provided life insurance coverage through Metropolitan Life Insurance Company (“MetLife”). Plaintiff contends that after Jason’s death, the defendants (MetLife, Waste Management, and Life Insurance Company of North America (“LINA”)) engaged in conduct intended to confuse and ultimately deny her entitlement to...
Court Must Follow Judicial Precedent
Post 5252
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Insurance Policy Interpretation Requires Application of the Judicial Construction Doctrine
In Montrose Chemical Corporation Of California v. The Superior Court Of Los Angeles County, Canadian Universal Insurance Company, Inc., et al., B335073, Court of Appeal, 337 Cal.Rptr.3d 222 (9/30/2025) the Court of Appeal refused to allow extrinsic evidence to interpret the word “sudden” in qualified pollution exclusions (QPEs) as including gradual but unexpected pollution. The court held that, under controlling California appellate precedent, the term “sudden” in these standard-form exclusions unambiguously includes a temporal element (abruptness) and cannot reasonably be construed to mean ...
Lack of Jurisdiction Defeats Suit for Defamation
Post 5250
Posted on December 29, 2025 by Barry Zalma
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He Who Represents Himself in a Lawsuit has a Fool for a Client
In Pankaj Merchia v. United Healthcare Services, Inc., Civil Action No. 24-2700 (RC), United States District Court, District of Columbia (December 22, 2025)
FACTUAL BACKGROUND
Parties & Claims:
The plaintiff, Pankaj Merchia, is a physician, scientist, engineer, and entrepreneur, proceeding pro se. Merchia sued United Healthcare Services, Inc., a Minnesota-based medical insurance company, for defamation and related claims. The core allegation is that United Healthcare falsely accused Merchia of healthcare fraud, which led to his indictment and arrest in Massachusetts, causing reputational and business harm in the District of Columbia and nationwide.
Underlying Events:
The alleged defamation occurred when United ...
Zalma’s Insurance Fraud Letter
Read the full article at https://lnkd.in/dG829BF6; see the video at https://lnkd.in/dyCggZMZ and at https://lnkd.in/d6a9QdDd.
ZIFL Volume 29, Issue 24
Subscribe to the e-mail Version of ZIFL, it’s Free! https://visitor.r20.constantcontact.com/manage/optin?v=001Gb86hroKqEYVdo-PWnMUkcitKvwMc3HNWiyrn6jw8ERzpnmgU_oNjTrm1U1YGZ7_ay4AZ7_mCLQBKsXokYWFyD_Xo_zMFYUMovVTCgTAs7liC1eR4LsDBrk2zBNDMBPp7Bq0VeAA-SNvk6xgrgl8dNR0BjCMTm_gE7bAycDEHwRXFAoyVjSABkXPPaG2Jb3SEvkeZXRXPDs%3D
Zalma’s Insurance Fraud Letter (ZIFL) continues its 29th year of publication dedicated to those involved in reducing the effect of insurance fraud. ZIFL is published 24 times a year by ClaimSchool and is written by Barry Zalma. It is provided FREE to anyone who visits the site at http://zalma.com/zalmas-insurance-fraud-letter-2/
Zalma’s Insurance Fraud Letter
Merry Christmas & Happy Hannukah
Read the following Articles from the December 15, 2025 issue:
Read the full 19 page issue of ZIFL at ...
