ILNews

Reversal: Insurer had duty to provide dental office full coverage

Back to TopCommentsE-mailPrint

An insurer that for decades wrote policies for a dental office had a special duty to advise the office about coverage and ensure the office was fully covered, the Indiana Court of Appeals ruled Tuesday in reversing summary judgment in favor of the insurer.

The litigation arose after the Carmel offices of Dr. Stephen Lehman were destroyed by fire in 2009. The insurer paid the policy limit, but damages were in excess of the limit by more than $500,000. Even though the insurer notified the office of its policy limits, the court ruled that based on past practice, the insurer was obliged to make sure those limits were sufficient for full coverage.

The longstanding nature of the business relationship between the insurer and the office should have made it clear to the insurer that full coverage was expected, the court ruled in Indiana Restorative Dentistry, P.C. v. The Laven Insurance Agency, Inc., and Proassurance Indemnity Company, Inc. f/k/a The Medical Assurance Company, Inc., 49A05-1212-PL-627.

Marion Superior Judge Patrick McCarty granted summary judgment to Laven Insurance and Proassurance Indemnity, but the panel reversed and remanded for partial summary judgment for Indiana Restorative Dentistry.

“(W)e hold that (1) Laven was under a special duty to advise IRD about its insurance coverage based on their long-term relationship; (2) Laven had a duty to procure full coverage insurance based on its past dealings with IRD; and (3) there is a genuine issue of material fact as to whether Laven is ProAssurance’s agent and therefore ProAssurance can be held vicariously liable for Laven’s actions,” Judge Patricia Riley wrote for the panel that included Chief Judge Margret Robb and Judge James Kirsch.

“Consequently, we reverse the trial court’s summary judgment in favor of ProAssurance and grant summary judgment to IRD with respect to Laven’s duty to advise and duty to procure. Additionally, we reverse the trial court’s summary judgment with respect of ProAssurance’s vicarious liability and remand to the trial court for further proceedings."
 
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Frankly, it is tragic that you are even considering going to an expensive, unaccredited "law school." It is extremely difficult to get a job with a degree from a real school. If you are going to make the investment of time, money, and tears into law school, it should not be to a place that won't actually enable you to practice law when you graduate.

  2. As a lawyer who grew up in Fort Wayne (but went to a real law school), it is not that hard to find a mentor in the legal community without your school's assistance. One does not need to pay tens of thousands of dollars to go to an unaccredited legal diploma mill to get a mentor. Having a mentor means precisely nothing if you cannot get a job upon graduation, and considering that the legal job market is utterly terrible, these students from Indiana Tech are going to be adrift after graduation.

  3. 700,000 to 800,000 Americans are arrested for marijuana possession each year in the US. Do we need a new justice center if we decriminalize marijuana by having the City Council enact a $100 fine for marijuana possession and have the money go towards road repair?

  4. I am sorry to hear this.

  5. I tried a case in Judge Barker's court many years ago and I recall it vividly as a highlight of my career. I don't get in federal court very often but found myself back there again last Summer. We had both aged a bit but I must say she was just as I had remembered her. Authoritative, organized and yes, human ...with a good sense of humor. I also appreciated that even though we were dealing with difficult criminal cases, she treated my clients with dignity and understanding. My clients certainly respected her. Thanks for this nice article. Congratulations to Judge Barker for reaching another milestone in a remarkable career.

ADVERTISEMENT