A federal appeals court upheld a lower court decision in favor of an RT Specialty LLC unit on Monday, dismissing disputes filed by an event party rental company for failing to resolve a pre-trial case. in the underlying trial.
The case involved a teenager who was seriously injured during an incident at a high school in Georgia, according to the ruling of the 11th Circuit Court of Appeals in Atlanta in Game Truck Georgia, LLC v. Atlantic Specialty Insurance Co.
Game Truck was hired to provide equipment for an event in May 2016 at Campbell High School in Smyrna, Georgia, which included "bubble soccer" gear, an activity in which participants carry large, inflatable balls around their upper bodies while legs move freely, according to Monday's judgment in Game Truck Georgia, LLC v Atlantic Specialty Insurance Co.
Salvador Reyes Quezada, using bubble occer equipment, collided with another participant and suffered severe brain and forehead injuries. He remained in a coma for several days and permanently lost his sense of taste and smell.
Game Truck had issued a policy of the R-T specialty unit Atlantic Specialty that covered bodily injuries with a limit of $ 1
The insurer rejected $ 750,000 and $ 1 million settlement offers, while Atlantic Specialty & # 39 ;s $ 250,000 settlement offer was rejected by the plaintiff.
A jury found that Game Truck was 93% liable for damages, totaling $ 5 million. The court ruled in favor of Mr. Reyes for $ 4.65 million, $ 92,996 in advance interest and interest after the verdict at an interest rate of 8.25% and determined that Game Truck was also responsible for Mr. Reye's attorney fees and costs.
Game Truck asked for a reduction of the judgment or, alternatively, a new trial, while Atlantic Specialty also planned to appeal the court's judgment.
As a result of the judgment, Game Truck lost its franchise services and has become obsolete. It sued Atlantic Specialty for unfaithfulness to its failure to resolve the case, legal fees and criminal damages.
The U.S. District Court in Atlanta granted Atlantic Specialty's motion to dismiss the case, arguing that it was "not ripe" because the post-trial proceedings remained ongoing, and because Atlantic Specialty planned to appeal when the state court issued its final judgment.
A unanimous appellate court with three judges supported the lower court's decision. "Because Georgia's Supreme Court has interpreted the language of Game Truck's policy as requiring a final judgment or settlement before bringing an action, we confirm," the decision said.
It stood in a comparable case, Georgia's Supreme Court ruled, "The insurance contract prevented failure to resolve the claim."
"In this case, Game Truck & # 39 ;s policy, under the heading" Legal action against us ", contains an almost identical" no action "clause," it said.
"We do not need – and do not – express an opinion on the terms of this insurance contract" or Georgia's Supreme Court decision "would allow Game Truck to bring an action against Atlantic Specialty if Reye's appeal ends without a final judgment or a judgment that exceeds policy limits" , said the Appeals Panel, confirming the decision of the lower court.
Lawyers in the case and RT did not respond to the request for comment.