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was being advised by the law firm, it had a professional malpractice
insurance policy with the Travelers Insurance Company (Travelers) that
covered “all sums which the insured shall become legally obligated to
pay as damages because of any act or omission of the insured arising out
of the performance of professional services for others in the insured’s
capacity as a lawyer.” The policy expired one year prior to Barker’s
death. Is Travelers liable for the $2 million settlement? Travelers
Insurance Company v. National Union Fire Insurance Company of
Pittsburgh, 207 Cal. App.3d 1390, 255 Cal.Rptr. 727, Web 1989
Cal.App. Lexis 130 (Court of Appeal of California)
50.7 Duty to Defend When Michael A. Jaffe, a child psychiatrist
practicing in California, was accused of Medi–Cal fraud and theft, he
requested that his malpractice insurer, Cranford Insurance Company
(Cranford), provide his criminal defense. Cranford refused to defend
Jaffe, citing the terms of Jaffe’s malpractice insurance policy. The policy
describes the insured risk as “psychiatrist’s professional liability in
respect of insured’s practice of psychiatry.” Another clause of the policy
states that Cranford “agrees to pay such damages as may be awarded in
respect of professional services rendered by Jaffe, or which should have
been rendered by him, resulting from any claims or suits based solely
upon malpractice, error, or mistake.” After Cranford refused to defend
him, Jaffe hired his own criminal defense lawyer. The case went to trial,
and Jaffe was found innocent of all charges. After his acquittal, Jaffe
demanded that Cranford reimburse him for the expenses incurred during
trial. When Cranford refused this request, Jaffe sued. Who wins? Jaffe v.
Cranford Insurance Company, 168 Cal.App.3d 930, 214 Cal.Rptr. 567,
Web 1985 Cal.App. Lexis 2153 (Court of Appeal of California)
45.2 Clean Air Act Pilot Petroleum Associates, Inc., and various
affiliated companies distributed gasoline to retail gasoline stations in the
state of New York. Pilot owned some of these stations and leased them
to individual operators who were under contract to purchase gasoline
from Pilot. The EPA took samples of gasoline from five different service
stations to which Pilot had sold unleaded gasoline. These samples