Emond v. State Farm Mutual Automobile Insurance Co.

State Farm Mutual Automobile Insurance Co. (State Farm) (defendant) issued an automobile-insurance contract to Emond (plaintiff). The contract provided $5,000 in coverage for Personal Injury Protection (PIP) benefits. The contract also provided $5,000 in coverage for excess medical expenses incurred within one year of an automobile accident, if those expenses were not covered by other insurance. Emond was injured in an automobile accident. State Farm paid Emond $5,000 in PIP benefits and $5,000 for excess medical expenses. After Emond’s accident, the Georgia Supreme Court decided Flewellen v. Atlanta Cas. Co. In Flewellen, the court held that a person insured by a contract that had less than $50,000 in PIP coverage could pay an additional premium after an accident and then obtain $50,000 in PIP coverage. After the Flewellen decision, Emond paid the premium for $50,000 in PIP coverage. State Farm accepted the premium and paid Emond an additional $40,000 in PIP benefits, which brought the combined benefit total to $50,000 ($5,000 original PIP benefits plus $5,000 excess medical benefits plus $40,000 supplemental PIP benefits). Emond then submitted a claim for coverage of medical expenses that she had incurred more than a year after the accident. State Farm denied Emond’s claim. Emond sued State Farm for payment, alleging State Farm had paid only $45,000 in PIP benefits and that the $5,000 excess medical benefit should not be counted as a PIP benefit. Both Emond and State Farm filed motions for summary judgment. The trial court granted summary judgment for State Farm. Emond appealed.