Center Foundation v. Chicago Insurance

The Center for Feeling Therapy and its therapists were sued for medical malpractice and on various intentional tort theories. A dispute arose between the Center and some of its therapists on the one hand, and their insurance carriers on the other, concerning the attorneys selected as independent counsel after the insurers reserved their rights regarding the claims for intentional torts and punitive damages. This appeal is by one of the insurers, Chicago Insurance Company, following a partially directed verdict in favor of the insureds. The record discloses substantial evidence supporting the insurer’s position and thereby demonstrates that it was error to direct a verdict. We find the error prejudicial and therefore reverse.

Facts

A.

The Center was founded in 1971. It closed in 1981. Beginning in June 1981, the Center and its therapists were sued by at least 50 former patients in over a dozen lawsuits alleging a variety of intentional torts and professional malpractice. Jean Rains and the other former patients claimed they had been subjected to violence and psychological coercion to compel them to donate their services and their money to the Center and they sought more…