Judge Geraghty, in her order, also agreed with Collier that Maxum had a duty to defend until it obtained the April 2020 declaration. The judge said there didn’t appear to be any Georgia case law on the point, but that “bedrock” principles of Georgia insurance law as well as “persuasive authority” from Massachusetts, Pennsylvania, and Washington support her decision.
Judge Geraghty also rejected Maxum’s argument that the declaration it received from Judge Evans effectively terminated any obligation it had to defend Colliers in the Mattress Firm case.
Judge Geraghty said, “Maxum’s refusal to pay the full amount of Colliers’ defense costs in the underlying lawsuit, which is the ‘wrong’ that Colliers asserts in its breach of contract claim in this suit — did not occur until over one year after Maxum filed the prior declaratory judgment action.”
Conclusion
Monday’s ruling will allow this case to proceed to a jury trial, which has now been scheduled to begin on December 12, 2022.
