Plaintiff filed a malpractice lawsuit against a janitorial company that cleaned a medical facility that provided dialysis treatments after developing sepsis. The parties entered into an agreement where defendant agreed not to defend the case and plaintiff agreed to seek recovery only from defendant’s insurance company. The trial court held an uncontested bench trial and entered judgment for the plaintiff. The insurance company then removed the action to federal court and the district court concluded that a bacteria exclusion in the policy excluded coverage. The Seventh Circuit affirmed, finding that the district court did not err when it found that a bacteria exclusion in an insurance policy excluded coverage. (WOOD and SCUDDER, concurring)
Federal 7th Circuit Court
Civil Court
Insurance Coverage