State Farm Fire & Casualty Co. v. Cooperative of American Physicians, Inc.

A premises liability insurer settled a personal injury action on behalf of its insureds and then filed a separate action against the insureds’ medical malpractice carrier for declaratory relief and subrogation. The court sustained the defendants’ demurrer without leave to amend, and the plaintiff appeals.

I

On June 6, 1979, 86-year-old Doris Smith fell as she attempted to alight from an examination table after receiving an injection from Dr. Lance J. Wrobel. She sued Wrobel and his professional corporation, Mission Viejo Orthopedic Group, Inc., on both malpractice and premises liability causes of action.

At the time of the accident, the group and its physicians were insured for premises liability by State Farm Fire and Casualty Company (State Farm) and for professional liability by the Cooperative of American Physicians, Inc. (Cooperative) and Mutual Protection Trust (Mutual). The State Farm policy expressly excluded coverage for medical malpractice claims.

Both insurers defended, although each sought to shift responsibility to the other. State Farm determined settlement was in the best interests of the insureds and settled with Smith before trial for $25,000.…