Melinda McCoy obtained a large default judgment against state employees and then sought payment from the Georgia Department of Administrative Services under a state liability policy. On remand from an earlier appeal, the trial court held that the policy covered the judgment and awarded McCoy the policy limits plus post-judgment interest. Sitting as a whole court, the Court of Appeals reversed and directed entry of summary judgment for the Department. The majority held that the policy did not cover the underlying award because the judgment established liability only against the private or individual defendants and did not establish a covered state-law obligation within the policy’s terms. The trial court had also treated the underlying default judgment as resolving issues that were not litigated against the Department. Several judges dissented, reasoning that the policy and prior proceedings supported coverage.