5th Circuit Won’t Penalize Insurer’s Foresight To Reinsure
NEW ORLEANS - In ruling on the appeal of an intentional and negligent misrepresentation case where a hospital claimed that one of its doctor’s former employer’s withheld information on the doctor’s drug abuse, the Fifth Circuit U.S. Court of Appeals on May 8 held that evidence of reinsurance to show a plaintiff’s “real injury” under the collateral source rule would only penalize an insurer for having the foresight to obtain reinsurance (Kadlec Medical Center, et al. v. Lakeview Medical Center LLC, et al., No 06-30745, 5th Cir.; 2008 U.S. App. LEXIS 10267).
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