BBS Member Michael Dolich Receives Order of Summary Judgment

Congratulations to Member Michael Dolich, whose motion for summary for summary judgment on behalf of a medical malpractice insurance company was granted.  The case arose out of a claim for insurance coverage related to an underlying claim of medical malpractice.  Coverage was denied and the insurance policy was rescinded based on fraudulent misrepresentations in a policy renewal application.  After the renewal application was completed, the doctor’s medical license was suspended and he was charged with multiple felonies.  The doctor eventually pleaded guilty to two felony counts, both arising from the doctor’s medical practice.  The insurance company did not learn of these facts until they were revealed in an underlying malpractice claim, which was tendered to the insurance company.  The major underlying claim was that the insured doctor allowed a podiatrist who had a suspended license to perform liposuction surgery.  After the policy was rescinded, the doctor sued the insurance company and the insurance company counterclaimed for rescission.  The doctor argued that the renewal application at issue was no longer in effect because it was superseded by a later renewal application that did not ask questions about license suspensions and criminal conduct.  Thus, according to the doctor, no material misrepresentations were made.  In granting summary judgment to the insurance company, the court ruled that the insurance company was fully within its rights to rescind the policy because the earlier renewal application required the doctor to notify the insurance company of any “future material changes” in any answer to the application.  As to the particular facts of the underlying lawsuit, the court stated:  “No insurance company on earth would insure a doctor who allows unlicensed individuals to perform major medical procedures on their patients.”