News & Events

Substantial Summary Judgment Upholding Sexual Misconduct Exclusion in Medical Professional Liability Insurance Policy and Dismissing Insurance Bad Faith Claim

December 6, 2013
The firm won a substantial summary judgment on a claim for coverage arising out of liability for a nurse practitioner’s admitted sexual misconduct with a patient. The ruling also dismissed a claim for insurance bad faith.

The firm successfully argued the claims for sexual misconduct were not covered under the policy due to, inter alia, the sexual misconduct and criminal acts exclusions contained in the policy. Judge Janet Z. Smith of Burlington County Superior Court in New Jersey agreed and upheld the policy’s sexual misconduct exclusion, ruling that the damages associated with sexual misconduct were not covered. Judge Smith also found our client acted reasonably in connection with its claims handling and coverage positions, and therefore dismissed the bad faith claim.

With only claims of nurse malpractice distinct and separate from the Insured’s sexual relationship with his patient remaining, we were able to quickly negotiate a settlement on favorable terms.

For more information about this case and its impact on your business, please contact:
Tom Cellilli