Motor carriers—persons and corporate entities who contract for the transportation of household goods or passengers—must carry insurance in order to legally operate in Georgia. Georgia law further provides a person injured as the result of a motor carrier’s negligence may directly sue the carrier’s insurance company for damages. But there are exceptions to this rule, as the Georgia Court of Appeals explained in a recent decision.
Mornay v. National Union Fire Insurance Co.
This case arose from the death of a 69-year-old woman who had been living in a nursing home. The woman was also receiving Medicaid benefits. The State of Georgia had a contract with a motor carrier to provide transportation services for Medicaid patients. The contractor, in turn, hired a subcontractor to help carry out the state contract.