Brown v. Boston Old Colony Ins. Co.
| Decision Date | 12 March 1981 |
| Docket Number | No. 36866,36866 |
| Court | Georgia Supreme Court |
| Parties | Eugene F. BROWN v. BOSTON OLD COLONY INSURANCE COMPANY. |
M. H. Blackshear, Jr., Decatur, for Eugene F. Brown.
Jefferson W. Willis, Gainesville, for amicus.
M. David Merritt and Howard M. Lessinger, Atlanta, for Boston Old Colony Ins. Co. CLARKE, Justice.
The question here involves an employee who was covered by both workers' compensation insurance and a comprehensive business policy which included basic so-called "no-fault" coverage, as well as optional coverage under Code Ann. § 56-3406b. Both insurance policies were provided by the employer and the employee was injured while in the course of his employment and while occupying an automobile furnished by the employer. The Court of Appeals held the employee was entitled only to workers' compensation insurance and was not entitled to the no-fault insurance. Boston Old Colony Insurance Co. v. Brown, 155 Ga.App. 767, 272 S.E.2d 755 (1980). We granted certiorari to determine whether the issues in this case are controlled by Code Ann. § 56-3409b (Ga.L.1979, p. 594) rather than by our decision in Freeman v. Ryder Truck Lines, 244 Ga. 80, 259 S.E.2d 36 (1979).
Boston Old Colony Insurance Company (hereinafter "Boston") issued to Brown's employer both the workers' compensation insurance policy and the comprehensive business policy, and both policies were in effect at the time of the injuries to the employee. Boston accepted liability for medical expenses and for lost earnings in the amount of $110.00 per week under the workers' compensation policy. Initially Boston also paid Brown $665.29 per week for lost earnings under the comprehensive business policy. This sum represents 85% of the difference between his weekly earnings and the amount paid for earnings under workers' compensation. After six weeks this latter payment ceased and Boston filed a declaratory judgment action against Brown seeking adjudication that the insurer owed Brown no funds under the comprehensive business policy. The trial court held Boston liable for payments under the policy and the Court of Appeals reversed, relying on Freeman. We find the Court of Appeals erred in applying Freeman and reversing the trial court.
While this case diverges from Freeman on other points, the outcome here is expressly determined by the 1979 amendment to the Georgia Motor Vehicles Reparations Act, Ga.L.1979, pp. 594, 595 (Code Ann. § 56-3409b, Correlation of Benefits). This amendment was not in effect at the time of the Freeman case but applies to the instant case.
Code Ann. § 56-3409b(a) provides that benefits under Chapter 56-34B shall not be reduced or eliminated by workers' compensation or other benefits except for specified situations. The exception which applies to the facts of this case is set forth in Code Ann. § 56-3409b(c) which provides: "In those instances where the benefits payable under this Chapter have been provided for at the expense of an employer who is also obligated by statute to provide compensation for its employees under any workers' compensation law, the...
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