A moving vehicle struck Alvin Aaron's home on September 29, 2001. His insurance company, Georgia Farm Bureau Mutual Insurance Company, (Georgia Farm) assigned Aaron's claim to adjuster Warren Carswell. In June 2002, an agreement was reached with a contractor concerning the scope of damage and repair costs. On July 3, 2002, Aaron's attorney sent a letter to Georgia Farm asking for a breakdown of the repair costs and contesting its position to not pay to replace the septic tank and lines allegedly damaged as a result of the accident. Carswell forwarded the repair estimate amounting to $20,336.01 to Aaron on July 5, 2002. He pointed out that the estimate did not include the septic tank and drain lines because they were damaged during the cleanup process and were not covered under Aaron's policy because the vehicle did not contact them directly. The vehicle that struck Aaron's home was a diesel fuel tanker and the resulting fuel spill required cleanup by an EPA-approved company.
Additional letters were exchanged concerning the denial of coverage on the septic tank and lines. On February 28, 2003, Aaron's attorney informed Carswell that Aaron would accept the previous offer. On March 20, 2003, Carswell advised Aaron that he and his attorney had rejected the offer, that no action could be brought unless the policy provisions had been complied with, and that Aaron's claim was denied. On April 23,2003, Aaron's attorney acknowledged the one-year limitation on filing suit but invoked the appraisal condition of the policy that had no such limitation. On July 25, 2003, counsel for Georgia Farm reiterated the information in Carswell's March 20, 2003 letter, informed Aaron that he had not complied with the policy provisions within one year after the loss, and that the appraisal issue was moot. Aaron sued Georgia Farm in Bibb County on July 30, 2004, dismissed that action on October 6, 2005, and filed a renewal action in Toombs County on October 21, 2005. The suit alleged breach of contract and specific performance arising out of Georgia Farm's refusal to pay Aaron's claim and to participate in the appraisal procedure. The trial court granted Georgia Farm's motion for summary judgment on the grounds that Aaron's claims were barred by the policy's one-year contractual time limitation. Aaron appealed.
Aaron's only contention on appeal was that the trial court erred in granting summary judgment because the one-year limitation provision did not bar him from seeking payment of the amount that Georgia Farm had previously offered. It simply barred him from suing Georgia Farm.
The appellate court held that Georgia Farm did not breach the alleged settlement agreement and that Aaron was not entitled to specific performance of the appraisal condition in the policy after more than one year had passed since the date of loss. It determined that there was no meeting of the minds between Aaron and Georgia Farm as to settlement of Aaron's claim seeking damages to his home after being struck by the vehicle. As a result, Georgia Farm was not liable for the alleged breach of a settlement agreement.
In addition, there was significant disagreement between Aaron and Georgia Farm as to whether damage to the septic system was covered under the policy. Even though Carswell indicated his desire to settle the claim, there was nothing in the record indicating that a formal offer had been made. Aaron's subsequent letter purporting to accept "an offer in payment" did not create an enforceable agreement since there was no offer to accept. The appellate court upheld and affirmed the decision of the trial court.
Court of Appeals of Georgia. Aaron v. Georgia Farm Bureau Mutual Insurance Company. No. A09A0354. April 8, 2009. Certiorari Denied June 8, 2009. 297 Ga.App. 403, 677 S.E.2d 419