Victory for Kershaw Law LLC
Georgia Court of Appeals Reverses $345 Million Judgment
At Kershaw Law, LLC, we are proud to share a major appellate victory that reinforces the fundamental principles of contract law and insurance coverage in Georgia. On March 6, 2026, the Court of Appeals of Georgia issued a landmark ruling in Philadelphia Indemnity Insurance Company v. Eubanks et al., reversing a $345 million trial court judgment.
The Challenge: Complex Claims and Decade-Old Allegations
The case centered on deeply unfortunate allegations of historical abuse at the Darlington School occurring between the 1970s and 1990s. While the underlying events are tragic, the legal dispute focused on whether modern-day insurance policies—issued decades after the events took place—could be triggered to pay out hundreds of millions of dollars in damages.
Representing Continental Casualty Company, our firm successfully argued that insurance is a matter of contract, and the plain, unambiguous terms of those contracts must be honored.
Key Legal Wins for Our Clients
The appellate court adopted several of the core arguments we advanced on behalf of the defense, providing much-needed clarity for the insurance industry:
The "Occurrence" Rule: The court held that for "occurrence-based" policies, the injury happens when the event first occurs. It rejected the plaintiffs' "continuous trigger" theory, which attempted to claim that ongoing mental anguish in the present day could trigger policies that weren't even written when the abuse happened.
Intentional Acts are Not Accidents: The court reaffirmed that intentional misconduct does not qualify as an "accident" or "occurrence" under Georgia law. Since the claims against the school involved knowledge and concealment, they fell outside the scope of "accidental" coverage.
Policy Period Precision: Regarding our client, Continental Casualty, the court found there was no evidence that any covered injury occurred during the specific 1975–1976 policy period. As a result, the award against Continental was reversed in its entirety.
A Commitment to Rigorous Defense
This decision is a testament to the importance of meticulous contract interpretation and a steadfast defense of legal principles. By holding that insurers are only bound by the risks they actually contracted for, the Georgia Court of Appeals has ensured a more predictable and fair legal landscape for businesses and insurers alike.
At Kershaw Law, LLC, we remain dedicated to providing our clients with the sophisticated, high-stakes representation necessary to navigate the most complex trial and appellate challenges.
