Insurance : Professional Liability Policy – Rescission – Medical Negligence

Where insurer that issued a claims-made professional liability policy to a doctor sought a declaration that the hospital’s insurer was the primary professional liability insurer and that it was the excess insurer, and the hospital insurer sought rescission of its policy or a declaration that it had no obligation to defend or indemnify, summary judgment for the hospital’s insurer is affirmed because the doctor’s and hospital’s non-disclosure of a lawsuit was the equivalent of a false assertion, and Iowa law imparted a duty to disclose, so the doctrine of equitable rescission was applicable.

Judgment affirmed; cross appeal dismissed as moot.

Capson Physicians Insurance Company v. MMIC Insurance, Inc. (MLW No. 69439/Case No. 15-2459 – 15 pages) (U.S. Court of Appeals, 8^th Circuit, Wollman, J.) Appealed from U.S. District Court, Eastern District of Arkansas, Marshall, J. (Richard Brent Cooper, Dallas, argued for appellant; Scott Dennis Provencher, Diana L. Faust and Robert J. Witmeyer appeared on the brief) (Paulette Steffes Sarp, Minneapolis, argued for appellee; Steven W. Quattlebaum, Robert Ryan Younger and Christopher M. Dougherty appeared on the brief).

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