Can an insurance company interject itself into a Family Court action filed to determine whether or not someone has a valid common law marriage? The South Carolina Supreme Court answered this question by clearly stating "no" in an opinion filed yesterday, In Re Cooper.
By way of background, GEICO brought a declaratory judgment
action in Circuit Court against Mr. Cooper to determine the parties’ rights pursuant to an
automobile insurance policy issued to Ms. Goethe. Specifically, Mr. Cooper
claimed he was entitled to stack underinsured motorist coverage provided
by Ms. Goethe's policy on the grounds that he was a Class I insured.
GEICO denied Mr. Cooper’s claim, because it found that Mr. Cooper was not a Class I
insured because he was neither the spouse nor resident relative of
Ms. Goethe.
After GEICO denied Mr. Cooper’s claim to
stack coverage, he filed an action in Family Court seeking an order
validating his common law marriage to Ms. Goethe since 1991. GEICO petitioned the Family Court to permit it to join an action
pursuant to Rule 19 of the South Carolina Rules of Civil Procedure (SCRCP), or to intervene pursuant to Rule 24, SCRCP. As grounds
supporting its motion, GEICO alleged that the Family Court’s decision
on the parties’ common law marriage would impact GEICO’s ability to
protect its interests under the insurance policy issued to Ms. Goethe. The Family Court denied the motion, and GEICO® appealed.
The Supreme Court
affirmed, holding that, although GEICO may be affected by the outcome
of the Family Court action, its interest is insufficient to meet the
requirements for joinder pursuant to Rule 19(a)(2)(i), SCRCP. Further,
it found that the Family Court did not err in denying GEICO’s petition to intervene
in Cooper’s Family Court action. The subject matter of the Family Court
action is the validity of a common law marriage, which does not involve
a determination of insurance benefits. Accordingly, GEICO did not
have standing to intervene in the Family Court action because it did
not have an interest sufficiently related to the subject matter of the
action.
You can read the full text of In Re Cooper by clicking HERE.