A federal appellate court upheld a lower court ruling that an anesthesiologist who filed a discrimination claim against an orthopedic surgeon was an independent contractor at the time of employment and was not entitled to coverage under the orthopedic surgeon's employment practice liability coverage, Business Insurance reports.
Here's what you should know:
1. Johnathan Isom, MD, was a contract employee with Premier Orthopedic & Sports Medicine in Hattiesburg, Miss. While serving at the center, Premier CEO and orthopedic surgeon Thomas Baylis, MD, allegedly refused to work with Dr. Isom because he is black. Dr. Baylis allegedly made several openly hostile and derogatory remarks to Dr. Isom as well.
2. Dr. Isom filed a lawsuit against Dr. Baylis and his practice for racial discrimination. Dr. Baylis settled the suit for $4 million.
3. As part of the settlement, Dr. Baylis' general liability insurers transferred their rights to recovery to Dr. Isom in return for his promise not to pursue their assets. The insurers had denied Dr. Isom compensation at the time because Dr. Isom was operating as a general contractor and not an employee.
4. Dr. Isom then filed a suit against the insurers alleging breach of contract and breach of the covenant of good faith and fair dealings. He was seeking $4 million, but a lower district court sided with the insurers saying Dr. Isom was not an employee of the practice.
5. A three-judge panel voted to uphold the lower court's ruling unanimously.