Understanding a Georgia Limited Liability Release

In Georgia, if you are going to settle with the insurance company for the driver who hit you,  you want to make sure that you only sign a Georgia Limited Liability Release instead of a general release so that your rights to go after your Georgia uninsured motorist coverage is preserved. Under a Limited Release, you are releasing the option of taking the person’s own money, car, house but you are getting their full insurance policy limits and can still recover from your Uninsured Motorist Coverage. As far as justice goes, know that your Uninsured Motorist Insurance carrier will ultimately sue the defendant and go after their personal assets. let them do your work for you. Realize that there was an important Appellate decision that drastically affects Limited Releases in 2025. In Barker v. Muschett, [Ms. A25A0583, June 2, 2025] __ Ga. App. __ (2025), the Plaintiff settled with the liability insurer for their $25,000 limits and entered into a Limited Liability Release. That release did not specifically say that the liability insurer was also being released. When the Plaintiff sued the Underinsured Motorist Insurer, they raised the point that a Limited Release that does not release the insurer is non-compliant with the UM statute and therefore it had the effect of being a general release which bars the UM claim.

“Barker then filed this action against Muschett in order to pursue UM benefits from her own insurer. She served Muschett as well as her own insurer. See OCGA § 33-7-11 (d).

Muschett moved for summary judgment on the ground that the release Barker had signed did not comply with OCGA § 33-24-41.1 (b) (1). OCGA § 33-24-41.1 sets forth requirements for a limited release when a motor vehicle accident claim is covered by two or more insurance carriers. The release Barker signed did not comply with the statute, because it did not “[r]elease the settling carrier from all liability from any claims of the claimant ․ based on injuries to such claimant ․” OCGA § 33-24-41.1 (b) (1).” Barker v. Muschett

While I disagree with the Court’s ruling that where there clearly was a meeting of the minds between the Plaintiff and the liability insurer that it would convert a legal insufficency in the form of the Limited Liability Release from a Limited Liability Release into a General Release, thereby barring the pursuit of the claim against the UM insurer. This gets back to basic contract law but if the Liability insurer and the Plaintiff had a meeting of the minds and intended to settle for a release that allowed the Plaintiff to proceed against the UM insurer, then a mutual mistake in the form of the release would allow the release to be legally “reformed.” In fact an action in equity could be filed to force the insurer to reform the contract to a compliant one.

The bottom line is if you are dealing with uninsured motorist issues, you are foolish to proceed on your own. There are just too many traps and the law has shifted considerably in the last few years alone.

The critical issues are:

  1. Do not put a spouse on as well as this may kill your UM claim
  2. Have a lawyer review the Release and be wary of indemnity language
  3. Some UM insurance companies complain that the Limited Liability Release goes too far and releases their subrogation rights. Although this argument usually fails, it can definitely slow down the process of getting the Uninsured Motorist Limits.
  4. Release the Liability Insurer under this policy number for injury ONLY. Failure to do so may bar the UM claim.

Here is an example of a Limited Liability Release:

LIMITED RELEASE PURSUANT TO O.C.G.A. § 33-24-41.1

Santese Ingram, (“the UNDERSIGNED”), for and in consideration of the sum of TWENTY-FIVE THOUSAND DOLLARS ($25,000.00), to the UNDERSIGNED, in hand paid, receipt and sufficiency of which is hereby acknowledged, does hereby and for the heirs, executors, administrators, successors and assigns of the UNDERSIGNED acquit, remise, release, and forever discharge:

(1)        The ACME Insurance Corporation (“INSURANCE CARRIER”) with regard to Policy No. A06-251-369800-90 4 9; from all liability for any claims of the UNDERSIGNED based on injuries to the UNDERSIGNED (not including property damage), all hospital bills, doctor bills, drug bills, and other medical expenses, that belong to the UNDERSIGNED or which may hereafter accrue to the UNDERSIGNED on account of or resulting from the incident, casualty or event which occurred on or about March 1, 2025, near or around Atlanta, Fulton County, Georgia (“INCIDENT”); and

(2)        Roger Rabbit (“LIMITED RELEASEE”), from any and all claims, demands, rights, and causes of action of whatsoever kind and nature, including but not limited to, all known and unknown bodily and personal injuries of the UNDERSIGNED, all hospital bills, doctor bills, drug bills, and other medical expenses, that belong to the UNDERSIGNED or which may hereafter accrue to the UNDERSIGNED on account of or resulting from the INCIDENT, except to the extent other insurance coverage is available which covers the claim or claims of the UNDERSIGNED against the LIMITED RELEASEE.

All parties acknowledge that the payment referenced herein does not make whole nor fully compensate the UNDERSIGNED for losses sustained as a result of the INCIDENT.

This Limited Release is entered into pursuant to O.C.G.A. § 33-24-41.1, and its force and effect shall be as contemplated by that statute.  This Limited Release does not release INSURANCE CARRIER with regard to other insurance policies issued to LIMITED RELEASEE or to any other person or entity, including the UNDERSIGNED, and the UNDERSIGNED maintains all rights to pursue recovery with regard to insurance policies not identified by policy number herein.

This Limited Release shall not release any persons or entities not specifically named.

All parties deny liability, and all parties retain their right to deny liability in any future action.

The UNDERSIGNED understands that the injuries sustained are or may be permanent and progressive and that recovery is uncertain and indefinite. The UNDERSIGNED has relied wholly upon his or her own the judgment, belief and knowledge as to the nature, extent, effect and duration of said injuries and liability, if any, and such is made without reliance upon any statement or representation of any other person. The UNDERSIGNED acknowledges that no promise, inducement, or agreement not herein expressed has been made and that this Limited Release contains the entire agreement between the parties. The UNDERSIGNED is 18 years of age or older, of sound mind and laboring under no disabilities. The foregoing representations are made in order for the parties released hereby to rely upon them in effecting this Limited Release.

The UNDERSIGNED acknowledges prior receipt of this Limited Release and that it is notice in writing of lack of consent of the LIMITED RELEASEE to this settlement and that the this Limited Release does not preclude the LIMITED RELEASEE from asserting claims against the UNDERSIGNED.

The UNDERSIGNED agrees to take reasonable steps to satisfy or otherwise resolve valid and enforceable liens accrued as a result of the UNDERSIGNED’s alleged injuries arising out of the INCIDENT.  The UNDERSIGNED agrees to effect necessary probate matters, if any, in due course.

This ________ day of ___________, 20___.

 

 

__________________________

Jessica Rabbit