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New Grant of Petition for Certiorari in Civil Case

February 26, 2013

The Supreme Court of Georgia has granted one new petition for certiorari in a civil case in the last week. A brief summary of the issues and case is below.

S12G1470. GEORGIA INSURER INSOLVENCY POOL v. HULSEY ENVIRONMENTAL SERVICES, INC., et al.

This case began shortly after then-Governor Sonny Perdue signed a bill into law which retroactively covered companies whose workers’ compensation insurance firms went bankrupt, primarily to help customers of Southeastern U.S. Insurance Inc. (which was declared insolvent in 2009). The Georgia Insurer Insolvency Pool claimed that allowing new employers into the pool at this point put an additional burden on those who paid into the fund over time. The Pool sued two companies that paid into the fund to obtain coverage pursuant to the legislation, alleging the statute violated the Georgia constitution. The trial court determined that the Pool did not have standing to challenge the constitutionality of the statute and the Court of Appeals affirmed in an unpublished order.

On February 18, 2013, the Supreme Court unanimously granted the Pool’s petition for certiorari to consider the following issues:

  1. Does Appellant have the legal authority to challenge the constitutionality of amendments to its enabling statute?
  2. If so, did the Court of Appeals err in concluding that Appellant failed to state a claim for declaratory judgment, either in its own capacity or on behalf of its members?

The case has been added to the May 2013 oral argument calendar.

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