“In the Nature of an Interpleader” Action Both Upholds Carrier’s Notice of Cancellation and Has All Its Money Returned

An Infinity-insured vehicle was involved in an accident resulting in a double death, which was the fault of the insured’s driver. Pre-suit demands for the policy limits were made and met with a federal suit “In the Nature of an Interpleader,” whereby the carrier deposited the disputed limits, denied coverage and vied for the return of the funds against the two estates and other wrongful death beneficiaries involved. After Infinity received summary judgment in the District Court, the Eleventh Circuit Court of Appeals affirmed on all grounds except one and certified to the Georgia Supreme Court the question of whether or not a Notice of Cancellation is technically sufficient if it also contains an opportunity to reinstate the insurance and thereby keep the coverage in force, for the benefit of not only the insured, but the motoring public. After oral argument, the Georgia Supreme Court decided, in a 4-3 decision, that the Notice of Cancellation was clear and unequivocal and that Georgia’s public policy dictated the Notice of Cancellation could include an offer to reinstate to keep the coverage in effect.

Infinity General Ins. Co. v. Tonya Boggus Reynolds, et al., US Court of Appeals for the Eleventh Circuit No. 08-14785, LEXSEE 570 F.3d 1228, 570 F.3d 1228; 2009 U.S. App. LEXIS 12342; 21 Fla. L. Weekly Fed. C 1861

Counsel for Infinity: Steve Cotter