Rob Gilbreath Wins Summary Judgment in Garnishment Action Filed by Bank
On September 14, 2010, Rob Gilbreath won summary judgment for Liberty International Underwriters (LIU) in a garnishment action filed by a bank that had obtained a $650,000 judgment against LIU's former insured. After obtaining the judgment, the bank filed a garnishment action against LIU seeking the benefits of its insurance policy. LIU had denied the claim on the grounds that the claim was made after the expiration of the policy even though it was reported within the 60-day reporting grace period.
The bank argued that the policy summary at the beginning of the policy was inconsistent with the insuring agreement language that required all claims to be made within the policy period even though the insured would have an additional 60 days to report the claim. The bank and LIU filed cross summary judgment motions. Judge Tidwell, USDC ND Georgia, granted summary judgment to LIU and found that the claim was not covered. He also granted LIU's motion for attorney's fees and expenses associated with answering the garnishment.