Fuller sued Mercury for refusing to pay her claim.

Mercury answered that it had not breached a contractual duty owed to Fuller, requested a judgment declaring that it had "no obligation to satisfy [Fuller's] claim for insurance proceeds," and counterclaimed to recover money that it had advanced to Fuller.

In the meantime, a grand jury in Georgia indicted Fuller for arson and insurance fraud. She entered a plea of convenience to the charge of insurance fraud, Ga. Code Ann. § 33-1-9(a), and received a sentence of probation.

Mercury moved for summary judgment in the action brought by Fuller.

The U.S. District Court for the Northern District of Georgia granted Mercury's motion as to a lack of liability but denied it as to the amount of restitution. The district court ruled that Fuller's plea of guilty to "fraudulent conduct" provided "prima facie evidence of an intentional act that would cancel her insurance policy" and had not been "rebut[ted] . . . in any meaningful way," resulting in a "cancel[lation [of] the [p]olicy, and [the elimination of any duty on the part of] Mercury . . . to cover Fuller's claim."

The district court reserved to the jury the issue of what amount Mercury had paid out and was due in restitution. Later, the parties stipulated to the amount of restitution, and the district court awarded that amount to Mercury.

Fuller appealed to the Eleventh Circuit.

The Mercury Policy

The Mercury policy excluded any:

Intentional Loss, meaning any loss arising out of any act committed: (a) by or at the direction of any Insured; and (b) with the intent to cause a loss. 

It also provided that the policy:

will be cancelled and any unpaid claims denied if an Insured has, before or after a loss: (a) intentionally concealed or misrepresented any material fact or circumstance; or (b) made false statements or engaged in fraudulent conduct relating to this insurance.

The circuit court affirmed.

In its decision, the circuit court ruled that Fuller's conviction was sufficient to establish a prima facie case of insurance fraud. According to the Eleventh Circuit, Fuller's plea of guilty constituted an "admission that [she] committed the crime charged against [her]," North Carolina v. Alford, 400 U.S. 25 (1970), of making a false or fraudulent statement or misrepresentation in a written statement or when filing her insurance claim, Ga. Code Ann. § 33-1-9(a).

The circuit court added that because the state court found that there was "[a] satisfactory [factual] basis for [Fuller's] plea," and Fuller confirmed that she was entering her plea knowingly, intelligently, and voluntarily, her entry of a plea of convenience had the same significance as "an ordinary plea of guilt."

The Eleventh Circuit concluded that, in the absence of any evidence that Fuller did not admit her guilt, her plea was "conclusive evidence that she committed insurance fraud" and Mercury was entitled to a judgment in its favor that it owed no coverage to her.

The case is Fuller v. Mercury Ins. Co., No. 17-12975 (11th Cir. Jan. 11, 2018). Attorneys involved include: For SONYA FULLER, Plaintiff – Appellant: James Darren Summerville, Angela R. Fox, The Summerville Firm, LLC, ATLANTA, GA; Glenn Loewenthal, Glenn Loewenthal, PC, ATLANTA, GA. For MERCURY INSURANCE COMPANY OF GEORGIA, Defendant – Appellee: Wayne D. Taylor, Andrew M. Capobianco, William David Harrison, Michelle Alameda Sherman, Mozley Finlayson & Loggins, LLP, ATLANTA, GA.