National Union Fire Insurance Co. of Pittsburgh v. Cambridge Integrated Services Group, Inc.

Plaintiff National Union Fire Insurance Company of Pittsburgh, PA (National), provided excess insurance to the workers’ compensation program of the Bank of America (Bank), which was administered by defendant Cambridge Integrated Services Group, Inc. (Cambridge). National filed suit against Cambridge, alleging that as a result of Cambridge’s negligence in handling a workers’ compensation claim, National was required to reimburse over $1.5 million in medical expenses of a former Bank employee. The complaint pleaded claims for negligence, breach of contract, negligent misrepresentation, and subrogation.

The trial court sustained a demurrer to National’s complaint, reasoning that a general assignment clause in the contract between the Bank and Cambridge precluded any claims by National against Cambridge. We reverse in large part, concluding that Cambridge had a duty of care to National under the circumstances as pleaded, National was a third party beneficiary of the contract between the Bank and Cambridge, and National was subrogated to the Bank’s rights against Cambridge. We affirm the trial court’s dismissal of the cause of action for negligent misrepresentation.

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