State ex rel. W. Va. Mutual Insurance Co. v. Honorable Salango (Signed Opinion)
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The Supreme Court granted a writ of prohibition sought by West Virginia Mutual Insurance Company (Mutual) from the order of the circuit court denying Mutual's motion for summary judgment on common law bad faith claims brought by Michael Covelli, M.D., holding that Mutual demonstrated that the writ of prohibition was appropriate.
A jury awarded Dominique Adkins almost $5.8 million on her medical malpractice claim against Dr. Covelli, which was above the limits of his medical malpractice insurance. However, Mutual, Covelli's insurer, settled Adkins's suit within policy limits before the circuit court reduced the verdict to judgment. When a second patient of Dr. Covelli learned of Adkins's large jury award, that patient too sued Dr. Covelli for malpractice. Mutual also settled that claim within policy limits. Thereafter, Dr. Covellie sued Mutual for common law bad faith. At issue was the order of the circuit court denying Mutual's motion for summary judgment on Dr. Covelli's claims. The Supreme Court granted the writ, holding that the circuit court clearly erred by denying Mutual's motion for summary judgment.
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