Wednesday, June 3, 2009

EXECUTIVE RISK INDEMNITY, INC. v. CIGNA CORPORATION

EXECUTIVE RISK INDEMNITY, INC. v. CIGNA CORPORATION
No. 1184 EDA 2008 2009 PA Super 106 Atlantic: n/a Petition for Reargument Denied 8/13/2009 Filed: 6/3/2009

Appeal from the Order entered March 19, 2008
In the Court of Common Pleas of Philadelphia County,
Civil, No. 01495 November Term, 2004
Before: KLEIN, SHOGAN, JJ. and McEWEN, P.J.E.
Opinion by: KLEIN, J.
Dissenting Statement Opinion by: McEWEN, P.J.E.
CIGNA Corporation appeals from the order entered in the Court of Common Pleas of Philadelphia County entering declaratory judgment in favor of Executive Risk Indemnity, Inc. At issue was the determination of coverage for CIGNA by Executive Risk regarding claims made against CIGNA that it systematically, and in collusion with other health insurers, underpaid certain claims. These allegations represent both a civil Racketeer Influenced and Corrupt Organization (RICO) claim and breach of contract claim. CIGNA settled the underlying lawsuit for $140,000,000 without an admission of wrongdoing and without indicating how much of the settlement was apportioned for the RICO claim and how much to the breach of contract claim. The trial court determined the Executive Risk professional liability policy did not offer coverage for the claims made. After a thorough review of the submissions by the parties, the official record and relevant law, we reverse and remand for further proceedings consistent with this decision.
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