Bus Law
Summary
The Georgia Supreme Court has refused to hear State Farm’s appeal of a 2014 verdict in a breach of contract and insurance bad faith case (Case No. STCV1200617 filed in the State Court of Chatham County) against State Farm. According to court documents, the Georgia Court of Appeals affirmed the judgment based on the verdict entered by the trial court.
Court documents state that the plaintiff owned a Honda Accord that she had insured under a State Farm policy in 2011. That year, a vandal broke her windows, flattened her tires and scratched her paint. Court documents further state that the plaintiff selected Hernandez Collision Center (HCC) to repair her car (under Georgia law, a person can choose the repair shop of their choice), but State Farm refused to pay for towing costs, full car rental and full costs of repair, all of which were covered by the policy.
According to court documents, State Farm’s insurance policy, form 9811B, was placed into evidence, and testimony was then given by numerous witnesses. State Farm’s estimators testified that the plaintiff’s car could be repaired in Savannah for $5,045. However, court documents state that HCC’s repair estimate was $9,589, over $4,000 more than the State Farm estimate. Shop managers from HCC appeared and testified at the trial.
“The evidence showed that State Farm applied a different method of determining its payment obligations than those described in the policy,” said Brooks. “State Farm applied an internal method based on its determination of what was a ‘competitive’ rate based on a survey that was not described in the policy. Under Georgia law, any ambiguity in the policy written by State Farm had to be interpreted in favor of our client, the policy holder.”
Court documents further state that State Farm’s refusal to pay full repair costs left the plaintiff owing HCC a balance of $4,297 for her car repairs, and that she paid $1,125 for her rental car. The jury returned a verdict favoring the plaintiff for all damages she sought, plus $5,000, the maximum penalty allowed under Georgia insurance bad faith statute. The jury also awarded her $30,000 in attorney fees.
The suit alleges State Farm steered their customers to the company’s preferred repair shops, which sometimes use “junkyard,” “knock-off” or “after-market” parts instead of those provided by the manufacturer. The result can compromise safety, as well as aesthetics.
State Farm appealed the jury verdict to the Georgia Court of Appeals on numerous issues, alleging that the trial court should have dismissed the case, had improperly instructed the jury, and had admitted testimony that State Farm believed to be unduly prejudicial. The Court of Appeals affirmed the verdict without opinion and State Farm then filed the petition to the Georgia Supreme Court that was denied, allowing the plaintiff to execute on the judgement in her favor.
Act as the judge in reasoning your way to a ruling. Your decision can be the same or different from the judge’s opinion.

Discuss the following:
1.Facts – What happened? (5 points)
2.Rule – What is the question of law? (5 points)
3.Conclusion – What was the result of the case? What did the judge decide? (5 points)
4.Holding – What is your decision? (5 points)
5.Reasoning – What principles of law did you base your decision on? (30 points)

With case problems, your job is to act as the judge in reasoning your way to a ruling. Your decision can be the same or different from the judge’s opinion. Discuss the following:
1. Facts – What happened? (5 points)
2. Rule – What is the question of law? (5 points)
3. Conclusion – What was the result of the case? What did the judge decide? (5 points)
4. Holding – What is your decision? (5 points)
5. Reasoning – What principles of law did you base your decision on? (20 points)
6. Spelling, grammar, and writing (10 points)
Rule: The rule is the law which applies to the issue. It should be stated as a general principal, (e.g. “A duty of care is owed whenever the defendant should anticipate that her conduct could create a risk of harm to the plaintiff.”) not a conclusion to the particular case being briefed, (e.g. “The plaintiff was negligent.”).
What question must be answered in order to reach a conclusion in the case? This should be a legal question which, when answered, gives a result in the particular case. Make it specific (e.g. “Has there been a false imprisonment if the plaintiff was asleep at the time of ‘confinement’?”) rather than general (e.g. “Will the plaintiff be successful?”). You may make it referable to the specific case being briefed (e.g. “Did Miller owe a duty of care to Osco, Inc.?”) or which can apply to all cases which present a similar question, (e.g. “Is a duty owed whenever there is an employment relationship?”). Most cases present one issue. If there is more than one issue, list all, and give rules for all issues raised.
Reasoning or Application: The application is a discussion of how the rule applies to the facts of a particular case. While the holding can be a few sentences, the application is normally paragraphs long. It should be a written debate – not simply a statement of the conclusion. Whenever possible, present both sides of any issue. Do not begin with your conclusion. The application shows how you are able to reason on paper and is the most difficult (and, on exams, the most important) skill you will learn.