Capson Physicians Ins. Co. v. MMIC Ins. Inc., No. 15-2459 (8th Cir. 2016)
Annotate this CaseCapson filed suit against MMIC seeking a declaration that MMIC was the primary professional liability insurer for Karl J. Hasik, M.D., and that Capson was the excess insurer. MMIC counterclaimed and filed a third-party complaint against Dr. Hasik and others, seeking rescission of its insurance policy or, in the alternative, a declaration that MMIC had no obligation to defend or indemnify Dr. Hasik for two medical negligence cases that had been filed against him. The district court granted MMIC’s motion for summary judgment. The court concluded that Dr. Hasik’s and the hospital’s nondisclosure of the Wilson lawsuit (a medical malpractice suit filed by a patient against Dr. Hasik) was the equivalent of a false assertion. Therefore, the court held that the elements of equitable rescission were satisfied in this case. Dr. Hasik’s and the hospital’s nondisclosure of the Wilson lawsuit was the equivalent of a material representation that was false. MMIC was entitled to rescind the prior-acts coverage it had agreed to provide. The court further held that Iowa law does not preclude a judgment of rescission in this case. Accordingly, the court affirmed the judgment and dismissed the cross-appeal as moot.
Court Description: Wollman, Author, with Benton and Shepherd, Circuit Judges] Civil case - Insurance. Doctor's and hospital's nondisclosure of a lawsuit was the equivalent of a false assertion to the insurer;the claim against the doctor was a significant change that affected the risk MMIC was offering to underwrite and rendered a portion of the doctor's application for insurance untrue; Iowa law placed a duty on the doctor and the hospital to disclose the lawsuit to MMIC, and MMIC was entitled to equitable rescission of the prior-acts coverage it had issued.
Some case metadata and case summaries were written with the help of AI, which can produce inaccuracies. You should read the full case before relying on it for legal research purposes.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.