June 16, 2005

Success in High Profile Appeal Involving Dentist

On Monday, June 13, the Washington State Court of Appeals, Division I, threw out a 2003 judgment on a jury verdict that awarded an Auburn oral surgeon over $1 million, including attorneys’ fees and costs, against his professional liability insurer, Fireman’s Fund Insurance Company.

Lane Powell’s Emilia Sweeney was retained as defense counsel by Fireman’s Fund when faced with dentist Robert Woo’s suit. The suit was filed after Fireman’s Fund refused to defend Woo against a suit brought by a former employee who had been the victim of a prank involving a set of boar’s teeth that had been inserted into her mouth during oral surgery by Woo. On summary judgment, Sweeney argued that Fireman’s Fund was not obligated to defend Woo because his prank was not covered under the policy. The trial court denied that motion, and found that Fireman’s Fund had breached its duty to defend Woo under all three coverages contained within the policy (professional, general and employment practices). Michael Runyan was brought into the case to assist at the ensuing trial. At trial, the jury was advised that Fireman’s Fund had wrongly refused to defend Woo. The jury found that decision to be in bad faith, and awarded Woo $750,000 in emotional distress damages. The trial court additionally awarded Woo the costs of the settlement he paid to his former employee, Consumer Protection Act treble damages and attorney’s fees and costs. The total judgment exceeded $1.7 million.

Fireman’s Fund appealed, at which time Sweeney brought in Michael King, co-chair of Lane Powell’s appellate practice group. Facing Seattle appellate attorney Charles Kenneth Wiggins in the appeal, King argued that no parts of the policy – neither professional liability, comprehensive general liability, nor the employment liability rider – were ambiguous, as Woo contended, and that none applied to the incident. Judge Kennedy’s opinion for the unanimous Court of Appeals supported King’s arguments that the trial court erred in granting summary judgment to Woo regarding Fireman’s duty to defend, and reversed and dismissed all claims of bad faith against Fireman’s Fund and its affiliates, which vacated the judgment and resulted in a win for Fireman’s Fund.

View the Court of Appeals opinion.

View the June 16 Seattle Times article regarding the ruling.