Meza

In June 1994 Dr. Rumi Lakha proposed to treat a wart on Katherine Meza’s left index finger by injecting melaleuca oil (commonly known as tea tree oil), a natural distillate of the leaves and bark of the melaleuca tree, into the finger. Meza agreed to this procedure. When she next visited Dr. Lakha’s office, he performed the injection. Less than 24 hours later, necrosis and infection in Meza’s finger, caused by the injection, forced the partial amputation of the finger.

Meza sued Dr. Lakha for malpractice. During discovery in that action (which was subsequently stayed by Lakha’s filing for bankruptcy), Meza learned that Southern California Physicians Insurance Exchange (SCPIE), Lakha’s malpractice carrier, was defending him but denying coverage based on the following policy exclusion: “SCPIE will . . . [not] pay damages because of any claim which arises out of or results from any of the following: [10 . . . The use, administration or prescription of any drug . . . disapproved or not yet approved by the United States Food and Drug Administration for treatment of human beings, unless the named insured physician has requested approval from SCPIE for the use, administration…