Inglewood Radiology Medical Group, Inc. v. Hospital Shared Services, Inc.

In this appeal we hold that an insurance policy for medical malpractice did not require the insurer to defend a wrongful termination lawsuit.

Facts

Radiologist Gail Portanova, M.D., was employed by appellant Inglewood Radiology Medical Group, Inc. In March 1981, Dr. Portanova’s employment with appellant was terminated. Thereafter, Dr. Portanova filed a lawsuit against appellant. Portanova’s complaint alleged nine causes of action, all of which emanated from the allegation that her employment was wrongfully terminated. Centinela Hospital was also a named defendant. As against Centinela Hospital, Portanova claimed that her hospital privileges were wrongfully terminated and that she was falsely accused of numerous acts including dancing nude and being a drug addict. Without admitting liability, appellant settled the matter by paying Portanova $150,000. Appellant also expended $90,465.17 in legal fees.

Appellant was insured by respondent American Continental Insurance Company under a policy of medical malpractice insurance labeled, “Physicians, Surgeons & Dentists Professional Liability Insurance.” The policy required respondent to “indemnify the insured for all sums for…