From Casetext: Smarter Legal Research

Acosta v. Allstate Insurance Company

Court of Appeals of Georgia
Jul 11, 1988
372 S.E.2d 7 (Ga. Ct. App. 1988)

Summary

applying Tennessee law to allow Allstate to offset workers' compensation benefits received by the insured against the amount of uninsured-motorist benefits otherwise due, even though Georgia law did not provide for such offset

Summary of this case from McGow v. McCurry

Opinion

76605.

DECIDED JULY 11, 1988. REHEARING DENIED JULY 22, 1988.

Action on policy. Cobb State Court. Before Judge Adams.

George P. Graves, for appellant.

Thomas E. Brennan, Gene A. Major, Jonathan M. Engram, for appellee.


The appellant sustained personal injuries in a collision involving an uninsured motorist while riding as a guest passenger in an automobile owned by Coats and being operated by Coats' son. The collision occurred in Georgia; however, Coats was a Tennessee resident at the time, and her vehicle was insured under a policy of automobile insurance issued by the appellee, Allstate Insurance Company in Tennessee. That policy contained an uninsured motorist endorsement specifying that "[a]ny amount payable under the terms of this coverage because of bodily injury ... sustained in an accident by a person who is an insured under this coverage shall be reduced by ... the amount paid and the present value of all amounts payable on account of such bodily injury under any workmen's compensation law... ."

Because the appellant had been in the service of a Georgia employer when the accident occurred, he received compensation for his injuries pursuant to the Georgia Workers' Compensation Act, OCGA § 34-9-1 et seq. He subsequently filed the present action seeking to recover damages for the alleged negligence of the uninsured motorist in causing the collision. Allstate filed defensive pleadings in its own name after being served as the uninsured motorist carrier pursuant to OCGA § 33-7-11 (d), and it thereafter moved for partial summary judgment on the issue of whether it was entitled to the benefit of a Tennessee law allowing an insurer's liability for uninsured motorist benefits to be offset by any collateral benefits received by the injured person. See Tenn. Code Ann. § 56-7-1205. The appellant responded that the Georgia uninsured motorist statute, which does not provide for any such offset, was controlling. The trial court ruled in favor of Allstate on the issue, and this appeal followed. Held:

The policy contains no suggestion that the law of any state other than Tennessee is to govern its construction. Georgia follows the doctrine of lex loci contractus. General Tel. Co. of the Southeast v. Trimm, 252 Ga. 95 ( 311 S.E.2d 460) (1984). Under this doctrine "`[w]here a pleaded contract not only is executed in a foreign State, but contains nothing to indicate by the place of performance or otherwise that it was intended to be construed as a Georgia contract, it will be treated as a contract of the foreign State, and governed by its laws... .' [C]ontracts made and performed in another state will be enforced unless such state's laws are contrary to the public policy of the enforcing state.... `A contract should not be held unenforceable as being in contravention of public policy except in cases free from substantial doubt where the prejudice to the public interest clearly appears.' [Cit.]" Terry v. Mays, 161 Ga. App. 328, 329 ( 291 S.E.2d 44) (1982). See also Nationwide Gen. Ins. v. Parnham, 182 Ga. App. 823 (4) ( 357 S.E.2d 139) (1987).

We reject the appellant's contention that the public policy of this state is contravened by allowing Allstate to offset the workers' compensation benefits received by the appellant against the amount of uninsured motorist benefits which would otherwise be due him under the policy. The mere fact that the two states have different laws in this regard does not mean that the Tennessee law cannot be enforced. See Terry v. Mays, supra. Accord Howard v. Doe, 174 Ga. App. 415 ( 330 S.E.2d 370) (1985); Tenn. Farmers Mut. Ins. Co. v. Wheeler, 178 Ga. App. 73 (1) ( 341 S.E.2d 898) (1986). It has been held that the Legislature's purpose in enacting the Georgia uninsured motorist statute was "to protect the insured as to his actual loss." State Farm c. Ins. Co. v. Murphy, 226 Ga. 710, 714 ( 177 S.E.2d 257) (1970). Because enforcement of the Tennessee statute will not operate to frustrate that policy, we hold that the trial court did not err in granting the appellee's motion for partial summary judgment. It necessarily follows that the trial court did not err in failing to grant summary judgment to the appellant on this issue.

Judgment affirmed. Birdsong, C. J., and Beasley, J., concur.

DECIDED JULY 11, 1988 — REHEARING DENIED JULY 22, 1988 — CERT. APPLIED FOR.


Summaries of

Acosta v. Allstate Insurance Company

Court of Appeals of Georgia
Jul 11, 1988
372 S.E.2d 7 (Ga. Ct. App. 1988)

applying Tennessee law to allow Allstate to offset workers' compensation benefits received by the insured against the amount of uninsured-motorist benefits otherwise due, even though Georgia law did not provide for such offset

Summary of this case from McGow v. McCurry

In Dacosta v.Allstate Ins. Co., 188 Ga.App. 10, 372 S.E.2d 7 (1988), the dispositive issue was whether the applicable uninsured motorist law was that of Tennessee, where the insured lived and the policy was issued, or of Georgia, where the collision occurred and the injury was sustained.

Summary of this case from Dees v. Logan

applying Tennessee law in case involving insured residing in Tennessee and policy issued there and holding that application of Tennessee statute allowing offset of workers' compensation benefits against UM benefits did not frustrate purpose of Georgia's UM statute

Summary of this case from Fire v. Hughes

In Dacosta, we recognized that the legislature's purpose in enacting Georgia's uninsured motorist statute was to protect insureds as to actual losses.

Summary of this case from Northbrook Property c. v. Merchant
Case details for

Acosta v. Allstate Insurance Company

Case Details

Full title:DACOSTA v. ALLSTATE INSURANCE COMPANY

Court:Court of Appeals of Georgia

Date published: Jul 11, 1988

Citations

372 S.E.2d 7 (Ga. Ct. App. 1988)
372 S.E.2d 7

Citing Cases

Roman v. Terrell

"It has been held that the Legislature's purpose in enacting the Georgia uninsured motorist statute was `to…

Dees v. Logan

In so doing, the Court of Appeals relied upon earlier decisions in which it ruled that nonduplication of…