Ross v. Continental Casualty Co.
Opinion of the Court
JUDGMENT
This case was considered on the record from the United States District Court for the District of Columbia and on the briefs filed by the parties pursuant to D.C. Circuit Rule 34(j). It is
ORDERED that the judgment from which this appeal has been taken be affirmed.
Bryan S. Ross appeals the district court’s grant of summary judgment to Continental Casualty Company on his breach of contract claim. “Summary judg
First, we conclude the district court correctly rejected a purely subjective inquiry into Goldschmidt’s belief at the time he purchased the insurance policy. Instead it applied a two-part subjective/objective analysis that looked at the facts of which Goldschmidt was aware and then determined that a reasonable lawyer would have believed those facts could form the basis of a malpractice claim. See Skinner v. Aetna Life & Cas., 804 F.2d 148, 151-52 (D.C.Cir. 1986) (applying two-part subjective/objective analysis).
Second, under D.C.Code § 31-4314 an insurance company can rescind a policy as the result of a false statement in the application for insurance if the statement “materially affected either the acceptance of the risk or the hazard assumed by the company.” Both falsity and materiality under section 31-4314 may be found as a matter of law. Prudential Ins. Co. of Am. v. Saxe, 134 F.2d 16, 25 (D.C.Cir. 1943). Under the proper two-part analysis, Gold-schmidt’s representation was false as a matter of law. That Goldschmidt’s negligence led to the entry of a default judgment of over $900,000 against his client plainly “materially affected either the acceptance of the risk or the hazard assumed by” Continental when it issued Gold-schmidt the malpractice liability insurance policy. Even if D.C.Code § 31-4314 applies, therefore, the plain language of that provision permits Continental to deny coverage on Ross’s malpractice claim against Goldschmidt.
Pursuant to D.C. Circuit Rule 36, this disposition will not be published. The Clerk is directed to withhold issuance of the mandate herein until seven days after resolution of any timely petition for rehearing or rehearing en banc. See Fed. R.App. P. 41(b); D.C.Cir. Rule 41.
Reference
- Full Case Name
- Bryan S. ROSS, Chapter 7 Trustee v. CONTINENTAL CASUALTY COMPANY
- Cited By
- 4 cases
- Status
- Published