Milford Hosp., Inc. v. Fed. Ins. Co.,

Milford Hosp., Inc. v. Fed. Ins. Co.,
No. X01CV010075817S (Conn. Super. Ct. Oct. 15, 2002)

A hospital and its CEO sued their directors and officers ("D&O")
liability insurer for breach of contract after it refused to pay for 100% of
the defense costs related to a suit brought against the hospital, the CEO, and
a for-profit subsidiary practice plan. The insurer claimed responsibility only
for the portion of the legal fees attributable to the hospital and CEO, and
refused to pay for the portion of those fees that it believed was attributable
to the practice plan. The hospital and CEO argued that the insurer should cover
all of the legal costs associated with the lawsuit. The Superior Court of Connecticut
refused to grant summary judgment to the hospital and CEO, holding that they
were unable to show both that the insurance policy covered the practice plan
and that no portion of the defense could be attributed solely to the practice
plan.