Motors Ins. Corp. v. Morgan

• Decision Date: 19 April 1968
• Docket Number: No. 1,No. 43250,43250,1
• Citation: 117 Ga.App. 654,161 S.E.2d 382
• Parties: MOTORS INSURANCE CORPORATION v. C. I. MORGAN
• Court: Georgia Court of Appeals

Page 382

161 S.E.2d 382

117 Ga.App. 654

MOTORS INSURANCE CORPORATION v. C. I. MORGAN.

No. 43250.

Court of Appeals of Georgia, Division No. 1.

April 19, 1968.

Perry, Walters, Langstaff & Lippitt, Walter W. Hays, Albany, for appellant.

Smith, Gardner, Wiggins & Geer, Peter Zack Geer, Albany, for appellee.

Syllabus Opinion by the Court

WHITMAN, Judge.

This action was brought by C. I. Morgan against Motors Insurance Corporation seeking to recover damages as a result of certain alleged fraudulent acts by an agent of Motors Insurance Corporation regarding a release which Morgan executed.

Morgan's petition alleges that he was involved in an automobile accident when his automobile collided with another automobile being driven by Nathan Lee Spence, an uninsured motorist, and that as a result of said collision, Morgan sustained damage to his automobile and also certain personal injuries and that the said Nathan Lee Spence was at fault in causing said damage and injuries.

Morgan carried collision insurance with Motors Insurance Corporation and carried liability insurance with Preferred Mutual Risk Insurance Company. His liability insurance with 'Preferred Mutual' also provided protection in the event he suffered damage from and was entitled to recover from any uninsured motorist.

Morgan alleges that during the course of the settlement of his claim for property damages to his automobile with Motors Insurance Corporation, the latter's agent, C. J. Faulkner, fraudulently procured a release which operated as a general release, i.e., released Spence from all claims arising out of the collision, and that Preferred Mutual, because of the release, has refused to pay Morgan what was due him for his personal injuries but has only paid $1,280 'to avoid litigation.'

To Morgan's petition, Motors Insurance Company filed a general demurrer. The single enumeration of error of appellant questions the propriety of the trial court's overruling the general demurrer.

Morgan's petition alleges in particular that the release presented to him by Faulkner, defendant's agent, pertained to both property damage and personal injuries and that he told Faulkner that 'he did not know whether he was seriously injured or not and * * * that he did not want to sign this release.' Whereupon Faulkner told him 'that he would have to have a signature on the release and that the release would pertain only to the damage to the automobile and anything pertaining to personal injuries would be deleted from the release form before he filled it out and presented it to Nathan Lee Spence.' Faulkner assured Morgan, it is alleged, 'that his signature on the release would not affect the rights of the plaintiff against his liability insurance company.' Morgan also affirmatively alleges that he 'reluctantly signed the release relying entirely upon the assurance of the agent of the defendant that he would fill in the amount of the cost of repairs in the release and delete anything pertaining to bodily injury.'

Thereafter, it is alleged: 'Because of the general release executed by the plaintiff at the insistance of the agent for the defendant and because those portions of the release relating to bodily injuries had not been deleted as represented by the agent of the defendant, the plaintiff had no cause of action against the uninsured motorist (Spence) or Preferred Mutual Risk Insurance Company. To avoid litigation, however, Preferred Mutual Risk Insurance Company paid the plaintiff the sum of $1,280.

'The agent of the defendant * * * wilfully misrepresented to the plaintiff that he would delete from the general release all portions of the release relative to personal injuries. This wilful misrepresentation by the defendant's agent was made to induce the plaintiff to sign the release, which he did, to his injury.

'The defendant, by and through its agent, * * * fraudulently and recklessly represented to the plaintiff that he would delete all portions of the release relating to personal injuries when the agent of the defendant knew this fact to be false and was made with the intention of deceiving the plaintiff. The defendant's agent knew that the representations made to the plaintiff were false.' Held:

1. It appears from the allegations of the petition that the alleged fraud consists merely of a failure to comply with a promise to delete from a written release signed by the plaintiff that portion thereof relating to personal injuries claimed to have been sustained by the plaintiff, in respect of which the plaintiff was insured by the Preferred Mutual Risk Insurance Company. The present suit was brought by the appellee against the appellant, Motors Insurance Corp., and the release was executed by the plaintiff to appellant in relation to property damage covered by the insurance policy issued by appellant to appellee. Preferred Mutual was not a party to the policy issued by Motors Insurance Corp. and Preferred Mutual was not a party to the present case, nor is it a party to the release. It does not appear that...