Alabama Ins. Guaranty Assn. v. Water Works & Sanitary Sewer Board of the City of Montgomery
Annotate this CaseThe Alabama Insurance Guaranty Association (AIGA) sued the Water Works and Sanitary Sewer Board of the City of Montgomery, seeking, among other things, to recover money it had paid on behalf of the Board on a workers' compensation claim filed by one of the Board's employees. AIGA and the Board each moved for a summary judgment. The circuit court granted the Board's motion and entered a judgment limiting AIGA's recovery to the payments it had made on the workers' compensation claim during the two years immediately preceding the filing of the action and denying AIGA's request for attorney fees. AIGA appealed to the Court of Civil Appeals. The Court of Civil Appeals reversed the circuit court's judgment, concluding that AIGA's claims were subject to a six-year statute of limitations and that, therefore, the circuit court had erred in limiting AIGA's recovery to payments made within two years of the filing of the action. The Court of Civil Appeals remanded the case for the circuit court to reassess the damages award and to consider further AIGA's claim for attorney fees. The Supreme Court granted certiorari review to determine, as a matter of first impression, which statute of limitations -- the two-year or the six-year -- applied to AIGA's claims. Upon review, the Court affirmed the Court of Civil Appeals' judgment.
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