Wilson Elser Moskowitz Edelman & Dicker LLP : Brown & Cuglietto Obtain Summary Judgment for Insurer in Claims of Breach of Contract and Bad Faith

Brown & Cuglietto Obtain Summary Judgment for Insurer in Claims of Breach of Contract and Bad Faith

January 30, 2018

Stephen Brown (Partner-Stamford) and Nicole Cuglietto (Associate-Stamford) successfully defended and obtained summary judgment on behalf of an insurer that faced claims of breach of contract and bad faith. The plaintiff alleged that she obtained a stipulated judgment against a medical provider for complications arising from a surgery. Pursuant to the stipulated judgment, the provider assigned to plaintiff all of her rights and interests against her insurers, including our client. The plaintiff claimed that the insurer failed to indemnify the medical provider pursuant to the terms of the applicable professional liability policy and knowingly issued and induced the provider to take out an illegal, defense-cost-only policy of insurance, which failed to comply with certain Connecticut General Statutes. In response to Steve and Nicole's arguments, the court determined that the terms of the insurance policy were for defense costs only rather than indemnification and, therefore, the plaintiff's attempt to evade the applicable statute of limitations must fail. Also, the court determined that while the plaintiff asked that the court find the defense-cost-only policy in violation of public policy, she was unable to identify any specific authority, statutory or otherwise, in support of this argument. Judgment was entered on behalf of the insurer and no appeal was taken.

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