Conn. Ins. Guar. Ass’n v. Drown

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Susan and Rodney Drown filed a medical malpractice action against Associated Women’s Health Specialists, P.C. (Health Specialists) asserting vicarious liability claims arising from the acts or omissions of its physicians. During the relevant period, Health Specialists was insured through a professional liability policy issued by Medical Inter-Insurance Exchange (Exchange). Health Specialists settled for the full amount of the policy and assigned to the Drowns its rights to recover against Exchange. Health Specialists was subsequently declared insolvent, and the Connecticut Insurance Guaranty Association (Association) assumed liability for the Exchange’s obligations. The Association then commenced this declaratory judgment action seeking a declaration that it had no obligations for the Drowns’ claims. Defendants, the Drowns and Health Specialists, counterclaimed. The trial court granted summary judgment in favor of Defendants. The Appellate Court reversed. The Supreme Court affirmed, holding (1) the Exchange’s preinsolvency breach of its duty to defend Health Specialists did not estop the Association from challenging its liability under the policy; and (2) the policy unambiguously did not cover Health Specialists for its vicarious liability in this case. View "Conn. Ins. Guar. Ass’n v. Drown" on Justia Law