First Health v. Chartis

Summary

This is an appeal from a May 7, 2013 Opinion issued by the Superior Court on First Health Settlement Class's cross-motions for summary judgment. The lower court held that the remedies under LA. REV. STAT. ANN. Sec. 40:2203.1(G), are not damages, but instead are penalties. From that conclusion, the lower court found that First Health Group Corporation’s $150.5 million payment to settle class action claims in the underlying case of Gunderson v. F.A. Richard & Associates, Inc., in the 14th Judicial District Court, Parish of Calcasieu, Louisiana, was excluded from coverage under First Health’s tower of errors and omissions insurance policies. In April 2004, a class of Louisiana doctors and health care providers filed suit against First Health and others alleging violations of LA. REV. STAT. ANN. Sec. 40:2203.1(B) asserting claims for statutory damages under Section 2203.1(G), and for attorneys’ fees, for defendants’ failure to provide notice under the PPO Act before discounting payment for services.