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Atlantic Wood Industries, Inc. v. Argonaut Ins. Co.

Court of Appeals of Georgia
Mar 17, 1989
380 S.E.2d 504 (Ga. Ct. App. 1989)

Opinion

76058.

DECIDED MARCH 17, 1989.

Action on policies. Chatham Superior Court. Before Judge Brannen.

Dennis M. Flannery, John H. Harwood II, Joseph K. Brenner, Bobby Jones, Joseph H. Barrow, James W. Thomas, James W. Greene, Frank B. Miller, Mary Lou Kramer, C. Michael DeCamps, Paul W. Painter, Jr., Benny C. Priest, John M. Tatum, for appellants.

Arnold C. Young, Gerald P. Norton, Edward A. Kurent, Waltraut S. Addy, for appellees.


Appellant-plaintiff insured brought a declaratory judgment action, seeking a determination as to whether appellee-defendant insurers were obligated to defend a pending action. The trial court granted appellees' motion to dismiss for failure to state a claim. In Argonaut Ins. Co. v. Atlantic Wood Indus., 187 Ga. App. 471 ( 370 S.E.2d 765) (1988), we were compelled to affirm. "Since this court is not free to ignore controlling Supreme Court authority, we are constrained to hold . . . that, notwithstanding this court's present agreement or disagreement with the rationale of United States Cas. Co. [v. Ga. S. Fla. R. Co., 95 Ga. App. 100 ( 97 S.E.2d 185) (1957)], we are required to apply it in this case. Only our Supreme Court is authorized to reevaluate its implicit endorsement in Residential Dev., Inc. [v. Merchants Indem. Co. of N. Y., 227 Ga. 332 ( 180 S.E.2d 729) (1971)] of the rationale of United States Cas. Co. and, after that reevaluation to overrule or to reaffirm that rationale." Argonaut Ins. Co. v. Atlantic Wood Indus., supra at 474 (1).

On certiorari, the Supreme Court, after undertaking a reevaluation of the issue, concluded that the rationale expressed by the older cases was no longer viable. "We agree that insureds should have the same opportunity as insurers to determine in advance the scope of policy provisions. . . . Nothing in [OCGA § 9-4-1] prohibits an insured's action for declaratory judgment. To sanction it levels the ground for insureds and insurers alike." Atlantic Wood Indus. v. Argonaut Ins. Co., 258 Ga. 800, 801 (2, 3) ( 375 S.E.2d 221) (1989).

Accordingly, the judgment of the Supreme Court is hereby made the judgment of this court and the judgment of the trial court is reversed. Such decisions of this court as hold that declaratory relief is not available to an insured, including but not necessarily limited to United States Cas. Co. v. Ga. S. c. R. Co., supra, and Residential Dev. v. Merchants Indemn. Co., 122 Ga. App. 503 ( 177 S.E.2d 715) (1970), are hereby overruled and will no longer be followed.

Judgment reversed. Deen, P. J., McMurray, P. J., Banke, P. J., Birdsong, Sognier, Pope, Benham and Beasley, JJ., concur.

DECIDED MARCH 17, 1989.


Summaries of

Atlantic Wood Industries, Inc. v. Argonaut Ins. Co.

Court of Appeals of Georgia
Mar 17, 1989
380 S.E.2d 504 (Ga. Ct. App. 1989)
Case details for

Atlantic Wood Industries, Inc. v. Argonaut Ins. Co.

Case Details

Full title:ATLANTIC WOOD INDUSTRIES, INC. v. ARGONAUT INSURANCE COMPANY et al

Court:Court of Appeals of Georgia

Date published: Mar 17, 1989

Citations

380 S.E.2d 504 (Ga. Ct. App. 1989)
380 S.E.2d 504

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