Bankrupt Hospital Sues Over Malpractice Coverage

Law360, New York (January 12, 2012, 6:51 PM EST) -- Gerald Champion Regional Medical Center on Tuesday sued its liability insurer Nautilus Insurance Co. for coverage in dozens of underlying medical malpractice suits that led the beleaguered Alamogordo, N.M.-based hospital to file for Chapter 11 bankruptcy protection.

In an adversary proceeding in New Mexico bankruptcy court, Gerald Champion claimed that Nautilus revoked its professional liability coverage to the hospital after agreeing in September 2010 to cover it for more than 54 malpractice suits, after accusing the hospital of making a false representation in its policy application....
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