Elliott Greenleaf successfully defeated a summary judgment motion in the United States District Court for the Eastern District of Pennsylvania brought by an insurance company seeking a declaration that it had no duty to defend or indemnify its insured, Elliott Greenleaf’s client, pursuant to a business liability insurance policy in an underlying negligence action pending in a Pennsylvania state court. The insurance company argued that the claims against Elliott Greenleaf’s client in the underlying state action, which involved injuries to a resident of a personal care facility, were for professional negligence and excluded from coverage. Alternatively, the insurance company argued that the policy was void because Elliott Greenleaf’s client made material misrepresentations in its application for insurance. The Court rejected the insurer’s arguments and agreed with Elliott Greenleaf’s position, finding that the underlying complaint did not fall within the policy’s professional services exclusion and that Elliott Greenleaf’s client did not misrepresent the nature of its business on the application for insurance. The Court not only denied the insurer’s motion for summary judgment, but also ordered it to defend Elliott Greenleaf’s client in the underlying state action.
John G. Dean of the Firm’s Scranton and Wilkes-Barre offices and Thomas J. Elliott and Margaret S. Curran of the Firm’s Blue Bell office successfully represented the insured which provides management services to healthcare facilities.