Katherine Hicksv.William Gabor Et Al.
Auto-Owners Insurance Company issued a required surety bond to a Georgia used-car dealership. After paying one claim, it filed an interpleader action when several purchasers asserted competing claims to the remaining bond proceeds. Katherine Hicks challenged the distribution process, the dismissal of her claims, and sanctions and attorney fees. The Georgia Court of Appeals held that the trial court properly treated the bond as a limited fund for competing claimants and did not err in rejecting Hicks’s fee requests or in awarding fees connected to her frivolous counterclaim. The court reversed portions of the trial court’s orders concerning the dismissal of Hicks’s counterclaim and related rulings, while affirming other portions. It did not decide Hicks’s unaddressed argument that the bond language required a separate full payment for each claimant.
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