Virginia Mason Medical Center v. Executive Risk Indemnity, Inc.

MEMORANDUM *

Executive Risk Indemnity, Inc., appeals the grant of summary judgment to Virginia Mason Medical Center on its breach of contract claims. We have jurisdiction pursuant to 28 U.S.C. § 1291 and we affirm.

1. The district court did not err in concluding that the full amount of Virginia Mason’s settlement payment was covered loss under the insurance policy. Executive Risk’s reliance on the ordinary meaning of the term “loss” is misplaced because the insurance policy specifically defines “loss” to include payments made for damages caused by omissions and misleading statements. See Morgan v. Prudential Ins. Co., 86 Wash.2d 432 , 545 P.2d 1193, 1195 (1976) (en banc) (“[i]f the policy language is clear and unambiguous, the court may not modify the contract”). The settlement reflected a compromise of asserted damages arising from the plaintiffs’ non-disclosure claim in the underlying action, rather than disgorgement of unlawful gains. The non-disclosure. was alleged to violate the Washington Consumer Protection Act (the “Act”), which provides compensatory damages for harm. See Seaboard Sur. Co. v. Ralph Williams’ Nw. Chrysler Plymouth, Inc., 81 Wash.2d 740 , 504 P.2d 1139,…