Tracie Peloquin, as Administratrix of the Estate of Pearl E. Archambault v. Haven Health Center of Greenville, LLC
61 A.3d 419
R.I.2013Background
- Pearl Archambault died in 2006 after Haven Health nurse overdose of morphine; Peloquin as administratrix sued Haven Health and nurse Hardesty for medical malpractice.
- Policy: Haven Health’s claims-made professional liability policy with Columbia covered insured entities and employees for professional services, but included a Self-Insured Retention (SIR) of $2 million.
- SIR Endorsement made Haven Health pay first $2 million of damages/expenses; Columbia covered excess; Haven Health filed bankruptcy in 2007-2008; Hardesty also filed bankruptcy in 2008.
- Plaintiff amended complaint in 2009 to add Columbia under § 27-7-2.4 and to name Haven Health-related entities; defaults entered against Haven Health, HENE, and HE; Columbia answered.
- Plaintiff moved for summary judgment arguing SIR Endorsement void as against public policy and for recovery of $238,007.96; Superior Court granted Columbia’s motion and denied plaintiff’s motion; this appeal followed.
- Court vacates lower court judgment and remands to enter judgment for plaintiff of $100,000, with interest accruing on that amount.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Validity of the SIR Endorsement under RI law | SIR Endorsement violates 42-14.1-2(a) because self-insurance is not insurance. | §42-14.1-2(a) allows self-insurance for health care providers; regulations not yet promulgated, but policy valid. | SIR Endorsement invalid; plaintiff may recover from Columbia for $100,000. |
| Mandatory minimum policy limits under §42-14.1-2 and Reg. 21 | Statute/regulation require $100,000 per claim and $300,000 aggregate; per-claim minimum applies. | DBR regulations must be promulgated to enforce mandatory minimums; statute permissive. | SIR invalid; court only holds recovery of $100,000; moot on mandatory status pending regulation. |
| Separate insureds treatment under the policy | Columbia must cover $100,000 per insured, totaling $200,000. | Raised too late; waivers; single $100,000 per-claim limit applies. | Issue waived; recovery limited to $100,000. |
| Prejudgment and postjudgment interest calculation | Interest should accrue on full judgment amount as allowed by policy. | Interest limited to the portion of judgment within policy limits ($100,000). | Interest calculated on $100,000 only; interest on full judgment not awarded. |
Key Cases Cited
- Ryan v. Knoller, 695 A.2d 990 (R.I. 1997) (intoxication exclusion void if it defeats statutory coverage)
- Lewinski v. Commonwealth, 852 A.2d 1270 (Pa. Commw. Ct. 2004) (shared limits policy challenged under statutory requirement)
- Haislip v. Southern Heritage Ins. Co., 492 S.E.2d 135 (Va. 1997) (statutory minimum coverage issues in insurance context)
- Fratus v. Republic Western Ins. Co., 147 F.3d 25 (1st Cir. 1998) (policy must be interpreted for insured where ambiguity.)