LEADER NAT. INS. CO. v. MARTIN

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Docket Number

75306, 75307.

Attorney(S)

James S. Strawinski, for appellant. Douglas F. Aholt, David E. Allman, for appellee.

Judges

BANKE, Presiding Judge.

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Smart Summary

Factual and Procedural Background

Martin sued Leader National Insurance Company to recover optional personal injury protection ("no-fault") benefits under a motor vehicle accident insurance policy issued to his wife. He also sought a statutory bad-faith penalty and attorney fees due to Leader's delay in paying the claim. Leader denied liability, arguing no election of optional coverage had been made by Martin's wife and that the statute of limitations barred the claim.

Before trial, the court granted partial summary judgment to Martin on the validity of the rejection of optional coverage and his entitlement to maximum optional benefits of $45,000. The court denied Leader's summary judgment based on statute of limitations due to a factual dispute regarding Martin's alleged mental incapacity tolling the limitations period. The court granted partial summary judgment to Leader on the bad-faith penalty and attorney fees claim. Thus, the trial focused on two issues: whether Martin suffered mental incapacity tolling the statute of limitations, and the extent of his compensable losses.

Four days before trial, Leader moved for reconsideration of the partial summary judgment on optional coverage, citing newly discovered evidence of timely mailed notices to policyholders. This motion was denied. The trial ended with a directed verdict for Martin on the remaining issues, and a final judgment awarded Martin $45,000 plus prejudgment interest.

Leader filed a post-trial motion for new trial or to set aside the judgment, alleging error in excluding the new evidence and presenting additional testimony on the optional coverage issue. Later, Leader amended this motion to argue the directed verdict was unsupported by evidence. The trial court denied these motions, and Leader appealed. Martin cross-appealed the grant of partial summary judgment to Leader on the bad-faith penalty claim and moved to dismiss Leader's appeal as untimely.

Legal Issues Presented

Whether Leader's original post-trial motion qualified as a valid motion for new trial to extend the time for filing an appeal.
Whether the trial court erred in granting partial summary judgment to Martin on the optional coverage issue.
Whether the trial court properly directed a verdict in favor of Martin on the issues of mental incapacity tolling the statute of limitations and compensable losses.
Whether the court had jurisdiction to entertain Martin's cross-appeal given the status of Leader's main appeal.

Arguments of the Parties

Appellant's Arguments (Leader National Insurance Company)

The trial court erred in excluding newly discovered evidence regarding timely mailed notices about optional coverage.
The post-trial motion for new trial or to set aside judgment should have been considered valid to extend the appeal period.
The directed verdict for Martin was unsupported by the evidence presented at trial.

Appellee's Arguments (Martin)

Leader's original post-trial motion was not a valid motion for new trial as it did not address trial conduct or verdict defects but rather a pretrial summary judgment ruling.
The motion was ineffective to extend the time for filing an appeal.
Because Leader's appeal was untimely, the court lacks jurisdiction to hear Leader's appeal or Martin's cross-appeal.

Table of Precedents Cited

Precedent	Rule or Principle Cited For	Application by the Court
Sands v. Lamar Properties, 159 Ga. App. 718, 285 S.E.2d 24 (1981)	Objections to a judgment that do not challenge the verdict cannot be grounds for a motion for new trial.	Used to hold that Leader's post-trial motion, which challenged a summary judgment ruling and not the verdict, was not a proper motion for new trial.
Wood v. Jones, 175 Ga. App. 534, 334 S.E.2d 9 (1985)	Evidence known prior to trial cannot be considered newly discovered for purposes of a new trial motion.	Applied to determine that the "new" evidence Leader relied on was available before trial and thus not newly discovered.
Pillow v. Seymour, 255 Ga. 683, 341 S.E.2d 447 (1986)	A motion for new trial that is not a proper vehicle for review of trial court action has no validity and does not extend appeal time.	Supported the conclusion that Leader's motion did not extend the time to file an appeal.
Harrison v. Harrison, 229 Ga. 692, 194 S.E.2d 87 (1972)	Distinguishes invalid motions for new trial based on timing or procedural defects.	Referenced in discussing the invalidity of Leader's motion and its effect on appeal timing.
Jaraysi v. Southern Bell c. Co., 176 Ga. App. 105, 335 S.E.2d 463 (1985)	Appeals from motions to set aside judgment under OCGA § 9-11-60(d) require discretionary appeal procedures.	Applied to note that Leader did not follow proper appeal procedures for its alternative motion.
Ewing Holding Corp. v. Egan-Stanley Investments, 154 Ga. App. 493, 268 S.E.2d 733 (1980)	A cross-appeal depends on the existence of a valid main appeal.	Used to dismiss Martin's cross-appeal due to dismissal of Leader's main appeal.
Austin v. Carter, 248 Ga. 775, 285 S.E.2d 542 (1982)	Motions for reconsideration or to set aside summary judgments do not extend the time for filing an appeal.	Clarified the nature of Leader's motion as one that does not toll appeal deadlines.

Court's Reasoning and Analysis

The court analyzed Leader's original post-trial motion and found it did not address any trial conduct or verdict defects but rather challenged a pretrial summary judgment ruling. Under established precedent, such objections are not proper grounds for a motion for new trial and thus do not extend the time to file an appeal. The court further noted that the "new" evidence cited by Leader was not newly discovered but was available before trial, invalidating Leader's motion on that basis.

The court held that because the original motion was invalid as a motion for new trial, it did not toll the appeal period. Leader's amendment to the motion, filed after the 30-day period, was also untimely and ineffective to extend the appeal deadline. Additionally, Leader failed to follow the discretionary appeal procedures required for motions to set aside judgment under OCGA § 9-11-60(d).

Consequently, the court granted Martin's motion to dismiss Leader's appeal for lack of jurisdiction due to untimeliness. Without a valid main appeal, the court also lacked jurisdiction over Martin's cross-appeal. The court clarified that motions challenging summary judgments before trial are motions for reconsideration or to set aside, not motions for new trial, and do not affect appeal deadlines.

Holding and Implications

APPEALS DISMISSED.

The court dismissed Leader's appeal for lack of jurisdiction because the post-trial motion was not a valid motion for new trial and did not extend the time to file an appeal. Consequently, Martin's cross-appeal was also dismissed for lack of jurisdiction. The decision affirms the final judgment in Martin's favor and clarifies procedural rules regarding motions for new trial and appeal timing. No new precedent regarding substantive claims was established; the ruling primarily addresses procedural compliance and jurisdictional requirements for appeals.

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LEADER NATIONAL INSURANCE COMPANY v. MARTIN; and

BANKE, Presiding Judge.

Martin sued Leader National Insurance Company seeking to recover optional personal injury protection ("no-fault") benefits allegedly due him pursuant to a policy of motor vehicle accident insurance issued to his wife and, in addition, to recover a statutory bad-faith penalty and attorney fees based on Leader's delay in paying the claim. Leader denied liability, contending that there had been no election of optional coverage by Martin's wife and that the statute of limitations had run on the claim.

Prior to the trial of the case, the trial court granted partial summary judgment to Martin on the issues of whether there had been a valid rejection of optional coverage by the named insured and whether, due to the absence of such a rejection, Martin was entitled to assert a claim for maximum optional benefits in the amount of $45,000. Also, the trial court denied a motion for summary judgment filed by Leader on the basis of its statute of limitation defense, ruling that a material factual dispute existed on the issue of whether Martin had experienced mental incapacity resulting in the tolling of the limitation period. However, the trial court did grant partial summary judgment to Leader with respect to Martin's claim for a bad-faith penalty and attorney fees. As a result of these rulings, only two issues remained to be tried: (1) Whether Martin had in fact suffered from mental incapacity resulting in the tolling of the statute of limitation, and (2) whether and to what extent he had suffered compensable losses.

On December 5, 1986, four days before the commencement of the trial of these remaining issues, Leader filed a motion for reconsideration of the partial summary judgment which had been awarded to Martin on the optional coverage issue. This motion for reconsideration was predicated on the alleged discovery of certain new evidence purporting to establish that Leader had mailed timely written notices to its Georgia policyholders, including Martin's wife, advising them of the availability of optional no-fault coverage and seeking an election or rejection of such coverage from them. The motion for reconsideration was denied, and the subsequent trial of the case terminated in a directed verdict in Martin's favor with respect to the two remaining issues. On the basis of this directed verdict, and of the prior grant of partial summary judgment to Martin on the optional coverage issue, the trial court entered a final judgment in Martin's favor on December 11, 1986, awarding him $45,000 in optional benefits, plus prejudgment interest in the amount of $9,601.84.

On January 9, 1987, Leader filed a document entitled "Motion for New Trial or, in the Alternative, Motion to Set Aside Judgment." In this motion, Leader asserted that the trial court had erred in excluding from consideration the alleged newly discovered evidence which had been the subject of its previous motion for reconsideration of the partial summary judgment awarded to Martin on the optional coverage issue. In addition, Leader also asserted the discovery, subsequent to the trial, of certain other "new and material evidence" which would have produced a different verdict in the case. This latter evidence consisted, however, merely of additional testimony relating to the optional coverage issue, offered by the same witness on whose affidavit the pretrial motion for reconsideration had been based.

On February 12, 1987, Leader filed an amendment to its post-trial motion to assert, for the first time, that the evidence introduced at the trial had not authorized the direction of a verdict in Martin's favor with respect to either of the two issues being tried. The trial court subsequently denied Leader's post-trial motion, as amended, from which order Leader filed the present appeal. Martin has cross-appealed, enumerating as error the trial court's grant of partial summary judgment to Leader with respect to his claim for a bad-faith penalty and attorney fees. Additionally, Martin has filed a motion to dismiss the main appeal on the ground that Leader's original post-trial motion did not constitute a valid motion for new trial and was consequently ineffective to extend the time for filing an appeal. Held:

1. Leader's original "Motion for New Trial or, in the Alternative, Motion to Set Aside Judgment" quite clearly did not address anything which had occurred during the trial of the case, nor did it allege the discovery of any new evidence which could be considered relevant to either of the two issues which were the subject of that trial. "`"Objections which go to the judgment only, and do not extend to the verdict, cannot properly be made grounds of a motion for new trial. A motion for new trial seeks to set aside the verdict. No new trial is necessary to correct a judgment or decree. If a judgment or decree is erroneous or illegal, direct exception should be taken to it at the proper time."'" Sands v. Lamar Properties, 159 Ga. App. 718, 719 ( 285 S.E.2d 24) (1981).

Additionally, an examination of the supporting affidavits submitted with the motion reveals that the source of the alleged "new and material evidence" was the same witness who had provided the affidavit in support of the pre-trial motion for reconsideration. Consequently, it is evident on the face of the motion that the evidence in question was available to Leader prior to trial. See Wood v. Jones, 175 Ga. App. 534 (3) ( 334 S.E.2d 9) (1985).

Where a motion for new trial is not a proper vehicle for review of a trial court's action, the motion has no validity and will not extend the time for filing the notice of appeal. Pillow v. Seymour, 255 Ga. 683, 684 ( 341 S.E.2d 447) (1986). Because Leader's original "motion for new trial or, in the alternative, motion to set aside judgment" was not directed towards any alleged defect in the trial or the resultant verdict but was directed entirely towards a summary judgment ruling which had been made by the court prior to trial, we hold that it had no validity as a motion for new trial, with the result that it was ineffective to extend the time for filing an appeal. Furthermore, since the 30-day period for filing a motion for new trial had already expired by the time Leader amended the motion to attack the validity of the directed verdict, the amendment itself cannot be considered a timely motion for new trial, with the result that it, too, was ineffective to extend the time for filing an appeal. Accord Harrison v. Harrison, 229 Ga. 692 (1) ( 194 S.E.2d 87) (1972) (where the appeal was nevertheless allowed on the basis of the original motion for new trial, which was held to be defective not because it constituted an improper procedural vehicle for obtaining review of the trial court's action but merely because it was filed prematurely).

2. Assuming arguendo that Leader's alternative motion to set aside the judgment qualified as a motion to set aside filed pursuant to OCGA § 9-11-60 (d), any appeal therefrom would be subject to the application procedures set forth in OCGA § 5-6-35 (b). See OCGA § 5-6-35 (a) (8); Jaraysi v. Southern Bell c. Co., 176 Ga. App. 105 ( 335 S.E.2d 463) (1985). As Leader did not file an application for discretionary appeal, and as it neither filed a timely direct appeal from the final judgment entered in the case on December 11, 1986, nor filed a valid and timely motion for new trial, it follows that Martin's motion to dismiss Leader's appeal must be granted.

3. There being no valid main appeal, we are also without jurisdiction to entertain the cross-appeal, "which must derive its life from the main appeal, already dismissed... ." Ewing Holding Corp. v. Egan-Stanley Investments, 154 Ga. App. 493, 497 ( 268 S.E.2d 733) (1980).

Appeals dismissed. Carley and Benham, JJ., concur.

ON MOTION FOR REHEARING.

On motion for rehearing, the appellant misconstrues our holding in this case as being "that if a party's initial motion for new trial is deniable [then] the motion will not be amendable, nor will it toll the time for filing a notice of appeal." What we have instead held is that a "motion for new trial" will not be effective to extend the time for filing an appeal unless it in fact raises some objection to the conduct of the trial or otherwise seeks to overturn the jury's verdict in the case. See generally OCGA §§ 5-5-20 through 5-5-25. Where, as in the present case, the motion is directed towards a summary judgment ruling issued by the court prior to the commencement of the trial, then it is actually a motion for reconsideration or motion to set aside rather than a motion for new trial; and it has repeatedly been held that such motions do not extend the time for filing an appeal. See Austin v. Carter, 248 Ga. 775, 776 ( 285 S.E.2d 542) (1982).