Georgia State Appeals Court: Settlement Negotiations Do Not Toll Policy’s Time Limit on Bringing Suit Where Insurer Explicitly Reserved Its Rights

A Georgia state court of appeals recently rejected an insured’s argument that an insurance policy’s time limit for bringing suit should be treated as tolled during the period that the insured and the insurer are engaged in settlement negotiations.  Noting that, despite the negotiations, the insurer has explicitly reserved its rights under the policy, the court found that the insured’s claims were subject to and barred by the policy’s time limit on suit regardless of settlement negotiations.   Allstate Ins. Co. v. Sutton, Nos. A07A2145, A07A2146, A07A2147 (Ga. App. Ct. Mar. 7, 2008).