Insurer Must Pick Up Tab On $3M Malpractice Defense

Law360, New York (January 18, 2013, 7:04 PM EST) -- A Washington federal judge said Friday that Greenspring Financial Insurance Ltd. must reimburse Interstate Fire & Casualty Co. the $3 million it paid in an underlying medical malpractice settlement, dismissing Greenspring's claim that a magistrate judge wrongly decided the matter.

In an order upholding the magistrate judge's decision, U.S. District Judge Amy Berman Jackson said Greenspring's defense that it shouldn't have to pay the reimbursement was not raised in its answer to Interstate’s complaint or briefed in the cross-motions for summary judgment.

“To raise it at...
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