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Professional Liability
Fowler v. Hunter, 380 S.C. 121, 668 S.E.2d 803 (Ct. App. 2008).
Opinion No. 4422, decided October 28, 2008.
The plaintiffs were injured when the motorcycle they were riding was struck by a car. After they filed suit against the at-fault driver, it was discovered that, due to a computer error by the issuing agency, the umbrella policy on the car did not provide automobile liability coverage. The plaintiffs and the driver filed various claims against the insurance company and the issuing agency. The parties eventually settled most of their claims, except for the driver’s professional negligence claim against the issuing agency, which the driver assigned to the plaintiffs, and the insurance company’s indemnification claim against the issuing agency. The trial court granted summary judgment to the issuing agency on the professional negligence claim on the grounds that the plaintiffs could not prove damages because the claim had been assigned to them by the party who suffered the actual injury: the driver. The trial court also granted summary judgment on the indemnification claim. On appeal, the South Carolina Court of Appeals reversed both rulings. The court departed from the common law in holding that professional negligence claims are assignable so long as the risk of collusion is minimized. The court also found that genuine issues of material fact existed which precluded summary judgment on the indemnification claim.
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