Employers Re Not Liable for $11.5 Million Settlement, Judge Rules

CHARLESTON, W. Va. - Employers Reinsurance Corp. is not obligated to contribute toward the $11.5 million settlement of underlying malpractice claims brought against a medical center because the limits of the underlying policies were not exhausted, a West Virginia federal judge has ruled. Executive Risk Indemnity Inc. v. Charleston Area Medical Center, et al., No. 08-00810 (S.D. W. Va.).

On May 12, Chief Judge Joseph R. Goodwin of the U.S. District Court for the Southern District of West Virginia found that the coverage provided by the reinsured policy was not triggered and the claims did not fall within the policy's …