Justia Connecticut Supreme Court Opinion Summaries

Articles Posted in Insurance Law
by
Defendant in this case issued health care insurance policies to provide coverage for medical services and entered into contracts with practitioners of the healing arts to provide those services. Plaintiffs, three individual podiatrists and the Connecticut Podiatric Medical Association, brought an action against Defendant, alleging that Defendant's practice of reimbursing individual podiatrists at a lower rate than medical doctors for the same service constituted unfair discrimination in violation of the Connecticut Unfair Insurance Practices Act (CUIPA) and the Connecticut Unfair Trade Practices Act (CUTPA). The trial court granted summary judgment in favor of Defendant. The Supreme Court affirmed, holding that CUIPA, by prohibiting unfair discrimination, bars the denial of reimbursement on the basis of the particular license held by a practitioner of the healing arts, but does not preclude setting different reimbursement rates on the basis of the particular license held by a practitioner of the healing arts. View "Conn. Podiatric Med. Ass'n v. Health Net of Conn., Inc. " on Justia Law

by
An employee of Plaintiff, the town of Southbury, was injured in a car accident with Defendants, Patricia and Joseph Gonyea, during the course of employment. Employee applied for and received workers' compensation benefits from Plaintiff. Employee also made a claim against Defendants, which was settled for the Defendants' policy insurance limit. After Plaintiff perfected its statutory lien rights, Employee forwarded to Plaintiff the net proceeds he received from the settlement. Thereafter, Plaintiff commenced the present action to recover past and future works' compensation benefits it had paid, or would become obligated to pay, as a result of Employee's injuries. Defendants moved for summary judgment, contending that Plaintiff had assented to the settlement between Employee and Defendants and, thus, was barred from pursuing this action. The trial court granted Defendants' motion, concluding Plaintiff had assented to the settlement. The Supreme Court reversed, holding that there was a genuine issue of material fact as to whether Plaintiff assented to the settlement and voluntarily relinquished its rights to recover an outstanding balance through subsequent litigation. View "Town of Southbury v. Gonyea" on Justia Law

by
Plaintiff, Metropolitan Property and Casualty Insurance Company, brought a product liability action against Defendant, Deere and Company, claiming that a lawn tractor manufactured by Defendant contained a manufacturing defect in its electrical system that caused a fire resulting in the destruction of the home of Plaintiff's insureds. Following a jury trial, the trial court rendered judgment in favor of Plaintiff. The Supreme Court reversed, holding (1) a plaintiff may base a product liability action on the "malfunction theory," which allows a jury to rely on circumstantial evidence to infer that a product that malfunctioned was defective at the time it left the manufacturer's or seller's control if the plaintiff establishes certain elements; and (2) the trial court erred in denying Defendant's motion for a directed verdict because Plaintiff's evidence in the present case was insufficient to establish its products liability claim. View "Metro. Prop. & Cas. Ins. Co. v. Deere & Co." on Justia Law

by
Plaintiffs, John and Colm Farrell, were allegedly involved in a motor vehicle accident with an insured of Defendant, Twenty-First Century Insurance Company. Plaintiffs filed an action against Defendant, seeking damages for personal injuries arising out of the accident. During a pretrial conference, the parties agreed to settle Plaintiffs' claims and, allegedly, further agreed to arbitrate Plaintiffs' claims. Subsequently, Plaintiffs filed an action against Defendant seeking a court order to compel arbitration. The trial court rendered summary judgment in favor of Defendant, concluding that there was no clear manifestation of an agreement to arbitrate. The appellate court affirmed. The Supreme Court affirmed the judgment of the appellate court, holding that, after drawing all inferences in favor of Plaintiffs, no genuine issue of material fact existed with regard to whether the parties had an enforceable agreement to arbitrate. View "Farrell v. Twenty-First Century Ins. Co." on Justia Law

by
Employee was diagnosed with silicosis, a condition caused by work with Employer, and filed a claim for workers' compensation benefits. During the course of Employee's employment, Employer's workers' compensation liability was covered by two insurers, first Liberty Mutual and, later, American Mutual. After Employee terminated his employment, American Mutual was declared insolvent. The Connecticut Guarantee Association subsequently became liable for certain American Mutual obligations. The workers' compensation commissioner held the association initially liable for payment of benefits as the last insurer on the risk. The workers' compensation review board affirmed. The association appealed, contending that deeming the association liable conflicted with the requirement under the Connecticut Insurance Guaranty Association Act that other insurance policies covering the same claim must be exhausted before recovery is permitted from the association. The Supreme Court affirmed, concluding that holding the association liable for an insolvent insurer's obligation as the last insurer on the risk does not conflict with the Guaranty Act. View "Franklin v. Superior Casting" on Justia Law