Background - Memorial Hospital of Sweetwater County (a county governmental hospital) carried a UMIA professional liability policy that covered claims "arising out of the performance of medical professional services rendered ... by the insured or by any person for whose acts or omissions the insured is legally responsible." - In 2012 the Hospital contracted with EmCare for hospitalist services; Dr. Lin Miao was a locum tenens provided through EmCare (not a Hospital employee). - In June 2013 Menapace was treated by Dr. Miao at the Hospital; Menapace later suffered severe ischemia and amputations and sued Dr. Miao, the Hospital, and a nurse practitioner. - The Hospital moved for summary judgment asserting governmental immunity under the Wyoming Governmental Claims Act (WGCA) because Dr. Miao was not a Hospital employee; the district court denied the motion, holding the Hospital waived immunity by purchasing the UMIA policy (which it read to cover apparent agents). - The Hospital appealed; the Wyoming Supreme Court analyzed whether the policy’s phrase "any person for whose acts or omissions the insured is legally responsible" expanded the Hospital’s WGCA-defined liability to include apparent agents. ### Issues | Issue | Menapace's Argument | Memorial Hospital's Argument | Held | |---|---|---|---| | Whether the UMIA policy waived the Hospital's WGCA immunity for acts of an apparent (ostensible) agent (Dr. Miao) | The policy’s phrase "any person for whose acts or omissions the insured is legally responsible" should be read to include apparent agents, so the Hospital waived immunity | "Legally responsible" refers to the Hospital’s existing legal liability (as defined by the WGCA); the policy does not expand liability to include apparent agents | The Court held the policy did not extend liability beyond WGCA-defined liability; no waiver for apparent-agent claims | | Whether the insurance exception in Wyo. Stat. § 1-39-118(b)(i) should be read to create independent coverage beyond WGCA exceptions | Insurance purchase should operate to extend liability to risks like apparent-agent claims | Section 118(b)(i) is permissive; coverage referring to "legally responsible" tracks WGCA liability and does not itself create new exceptions | The Court held § 118(b)(i) permits extension but does not mandate or independently create new bases of liability; policy language did not expand liability | | Whether the policy language is circular or ambiguous such that extrinsic interpretation is needed | Policy language plainly covers apparent agents; district court found it unambiguous that it did | The Hospital argued the phrase is tied to "legal responsibility" as defined by statute (WGCA) and is not ambiguous | The Court found the term "legally responsible" is not ambiguous and should be read as synonymous with "legally liable," referencing WGCA-defined liability | | Whether the UMIA policy’s definition of "insured" (including endorsement regime) affected coverage for non-endorsed physicians | Menapace did not prevail on this in majority; district court relied on general coverage language | Concurring justice emphasized policy definitions/endorsements exclude non-endorsed physicians (e.g., doctors) from coverage, reinforcing no waiver | Majority held insurance did not expand WGCA liability; concurrence noted policy definitions independently support no coverage for Dr. Miao | ### Key Cases Cited Sharsmith v. Hill, 764 P.2d 667 (Wyo. 1988) (hospitals generally vicariously liable for apparent agents) Campbell County Mem'l Hosp. v. Pfeifle, 317 P.3d 573 (Wyo. 2014) (governmental hospitals immune for acts of non-employee apparent agents unless WGCA provides) North Fork Land & Cattle, LLLP v. First Am. Title Ins. Co., 362 P.3d 341 (Wyo. 2015) (insurance policy interpretation follows contract rules; start with plain language) Wyo. Bank & Trust Co. v. Waugh, 606 P.2d 725 (Wyo. 1980) (definition and meaning of "liable"/"legal responsibility") * Continental Western Ins. Co. v. Black, 361 P.3d 841 (Wyo. 2015) (summary judgment and contract/insurance interpretation principles)