The excess liability insurer for Pottstown Memorial Medical Center has filed suit in federal court accusing the hospital’s umbrella liability insurer of intentionally delaying settlement during the hospital’s appeal of a $78.4 million medical malpractice verdict in an attempt to “spend down” its $20 million policy limit by unnecessarily retaining appellate counsel.
The excess liability insurer alleged that, as a result, it was forced to pay more of the $31.5 million settlement that was eventually reached during the appeal of the verdict than it was actually responsible for.
