Judge gives Chicago ASC green light for lawsuit against malpractice insurer: 6 things to know

A federal judge ruled sufficient evidence for 900 North Michigan Surgical Center in Chicago to move forward with a bad faith lawsuit against medical malpractice insurer American Physicians Assurance and American Physician Capital, according to a Cook County Record report.

1. The lawsuit stems from a 2003 incident at the surgery center that allegedly left the patient quadriplegic; the patient later sued the surgery center. The trial court granted a summary judgment in the surgery center's favor, but an appellate court later reversed the summary judgment and recommended the case for trial.

2. The surgery center owners claimed there was a good chance the center would lose and reportedly asked APAC to settle multiple times. There plaintiff offered to settle for $1 million, but APAC declined, according to the report.

3. The plaintiff was awarded $5 million after the surgery center was found liable and now the surgery center argues APAC had a duty to settle knowing the probability the plaintiff would win the trial.

4. APAC filed a motion to dismiss, but was denied. APAC claimed there wasn't contract remedy for the bad-faith failure to settle in the motion to dismiss.

5. The surgery center requested leave to re-plead the claim and is now focused on the alleged failure of APAC to hire a competent defense counsel. The surgery center will have 30 days to file an amended claim, according to the report.

6. Spellmire Law Firm is representing 900 North Michigan Surgical Center and Stamos & Trucco is defending APAC.

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