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Liberty Mutual Insurance Co. v. Johnson6/7/2000
MI-004
The questions on appeal are threefold. First, on a motion to recuse, is the accompanying affidavit legally sufficient where it alleges that the bias of the judge arises from having previously ruled on an issue that is now before the judge again? Second, when pursuing its subrogation rights, is a workers' compensation insurer entitled to a jury trial on the question of whether the injured employee has been fully and completely compensated under OCGA § 34-9-11.1 (b)? And third, did the insurer's evidence here mandate as a matter of law that a settlement of $3.2 million (plus approximately $500,000 in workers' compensation benefits) fully and completely compensated the estate of the quadriplegic employee (now deceased) and his family? Because we answer each of these questions in the negative, we affirm the trial court's judgment against the insurer.
As the result of an auto collision, Herbert Earl Johnson experienced severe and disabling injuries, including quadriplegia, loss of control of his bladder and bowels, and multiple fractures and dental injuries. Because the collision occurred while he was working for Mitchell Construction Company, he received nearly $500,000 in workers' compensation benefits from Liberty Mutual Insurance Company. Within sixteen months of the collision, he died. His estate and family sued the parties responsible for the collision for $7.5 million, asserting claims of negligence, wrongful death, and loss of consortium.
Following extensive settlement negotiations, plaintiffs settled the case for $3.2 million, apportioned equally between the claims of the estate and the wrongful death claims. Although the settlement documents did not specify what portion of the amount applied to economic losses as opposed to non-economic losses, plaintiffs' initial settlement demand of $8 million did include special damages of approximately $1.9 million ($700,000 in medical expenses and $1.2 million - present value - in lost wages). After an evidentiary hearing, the court approved the settlement and made the finding that the $3.2 million amount plus the workers' compensation benefits did not fully and completely compensate plaintiffs for the losses resulting from Johnson's injuries and death.
Liberty Mutual and Mitchell Construction, who were not parties to nor present at the settlement-approval hearing, asserted a subrogation lien on the settlement proceeds under OCGA § 34-9-11.1 (b) and moved to intervene, which motion the court granted. They immediately moved to recuse the judge on the ground that in their absence he had already made a finding contrary to their interests, and they also requested a jury trial. Overruling both the recusal motion and the jury request, the judge held an evidentiary hearing on the question of subrogation rights and ruled that Liberty Mutual and Mitchell Construction failed to prove that the $3.2 million settlement amount plus the approximate $500,000 in workers' compensation benefits fully and completely compensated plaintiffs for all the economic and non-economic losses resulting from the injuries to Johnson. Because Liberty Mutual and Mitchell Construction recovered nothing from the settlement proceeds, they have appealed.
1. Appellants first complain that the court erred in denying their recusal motion. Uniform Superior Court Rule 25.3 provides that when presented with a motion to recuse, the judge shall immediately determine the legal sufficiency of the accompanying affidavit which asserts the factual basis for the motion. If the facts asserted in the affidavit, even if taken as true, do not support a charge of bias sufficient to warrant recusal, the affidavit is legally insufficient and the judge should de
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