Florida Physicians Ins. Co. v. G. William Lazenby, M.D., P.A., s. 90-01572

• Decision Date: 06 March 1991
• Docket Number: 90-02314,Nos. 90-01572,s. 90-01572
• Citation: Florida Physicians Ins. Co. v. G. William Lazenby, M.D., P.A., 576 So.2d 794, 16 Fla. L. Weekly 650 (Fla. App. 1991)
• Parties: 16 Fla. L. Weekly 650 FLORIDA PHYSICIANS INSURANCE COMPANY, Appellant, v. G. WILLIAM LAZENBY, M.D., P.A., Appellee.
• Court: Florida District Court of Appeals

Page 794

576 So.2d 794

16 Fla. L. Weekly 650

FLORIDA PHYSICIANS INSURANCE COMPANY, Appellant, v.G. WILLIAM LAZENBY, M.D., P.A., Appellee.

Nos. 90-01572, 90-02314.

District Court of Appeal of Florida Second District.

March 6, 1991.

Rehearing Denied April 4, 1991.

Clifford L. Somers of Somers & Morgan, Tampa, for appellant.

Glenn M. Woodworth of Woodworth & Lamb, Chartered, St. Petersburg, for appellee.

SCHEB, Acting Chief Judge.

The trial court awarded a money judgment to G. William Lazenby, M.D., P.A., because of Florida Physicians Insurance Company's refusal to defend the professional association after one of its physicians was dismissed from a malpractice suit.Florida Physicians appeals.We reverse.

Florida Physicians issued a claims-made liability policy with G. William Lazenby, M.D. as the only named insured.The policy provided individual professional liability coverage for Dr. Lazenby.It also provided coverage for his professional association, G. William Lazenby, M.D., P.A.; however, that coverage was specifically limited to "damages resulting from the providing or withholding of professional services by [Dr. Lazenby] individually."The policy specifically provided that it did not protect the professional association "for acts of any other members of the ... professional association."

Beverly Levine filed a medical malpractice suit alleging negligence against the P.A., Dr. Lazenby, and Dr. David S. Rothberg, an associate physician in the P.A. defended by another insurer carrier.Florida Physicians furnished legal counsel for Dr. Lazenby and the P.A.During the course of the litigation, counsel for Ms. Levine and counsel furnished by Florida Physicians entered into a joint stipulation dismissing Dr. Lazenby individually from the action.The court entered an order dismissing Dr. Lazenby from the suit with prejudice, and the style of the case was amended to delete him as a defendant.

At that point, Florida Physicians notified Dr. Lazenby that the company would not provide any further defense or coverage to the P.A.The reason given was that the P.A. had coverage only to the extent that the complaint alleged negligence against Dr. Lazenby individually, and since he had been dismissed from the action, the company concluded that its obligation had been fulfilled.

Thereafter, the P.A. retained counsel to represent it during the remainder of the malpractice suit, thereby incurring attorneys fees and other costs.The P.A. filed a declaratory action against Florida Physicians seeking reimbursement for...