Prime Insurance has avoided a $60 million fine in a Georgia liposuction death case.

The U.S. Supreme Court has upheld a federal appeals court ruling that Prime Insurance Co. is not liable for $60 million in damages following the deaths of two patients who survived liposuction at a Georgia clinic.
The judges ruled that the insurance payout was limited to $100,000 under the clinic's professional liability policy. Most of that amount had already been spent on attorney's fees.
In addition, the judges concluded that the four-year statute of limitations applied because part of the claim alleged a breach of jury duty on the part of Prime. The six-year statute of limitations for breach of contract did not apply in this case.
The court did not allow a claim for violation of Georgia's premium refund laws because only the insurance commissioner, not individuals, has that right.
In their ruling, the judges noted that the decision will be considered fresh air for insurance companies as many of them have been exposed to liability for exceeding policy limits for years in various courts.
In this case, Opulence Aesthetic Medicine Clinic in Kennesaw, Georgia, purchased a professional liability policy with a limit of $50,000 per claim and $100,000 total. The premium was $3,992.
In 2013, Dr. Nedra Dodds performed liposuction surgery on April Jenkins, who died the same day.
The Jenkins and Beaubourg families sued the clinic and won $60 million each. However, Prime's insurance company pointed out that the attorneys' fees ate up the bulk of the available coverage. The court ultimately found that the clinic's insurance coverage had been exhausted by the defense in the lawsuits, and therefore Prime had no further liability to the plaintiffs.
This court decision is recognized as an important victory for insurance companies, as it will help avoid wrongful claims from injured victims.
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