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Case Name | National Union Fire Insurance Co. of Pittsburgh, Pa. v. Cambridge Integrated Services Group Inc. | |
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Date | 02/11/2009 | |
Note | A third-party administrator owed a duty of care to let a bank's excess insurer know the circumstances of a costly claim it allegedly mishandled. | |
Citation | A120072 | |
WCC Citation | WCC 34912009 CA |
Ct. No. RG07315658)              Plaintiff National Union Fire Insurance Company of Pittsburgh, PA (National) provided excess insurance to the workers' compensation program of the Bank of America (Bank), which was administered by defendant Cambridge Integrated Services Group, Inc. (Cambridge). Because Cambridge had authorized payment for the surgery, the Bank and National were obligated to pay the expenses associated with its consequences. The first cause of action alleged that Cambridge breached the Cambridge contract by mishandling the Metter claim and that National was subrogated to the Bank's right of recovery against Cambridge for that breach. In addition, it altered the basis of the negligent misrepresentation claim, alleging misrepresentation to the Bank rather than directly to National. The Merits          National may pursue a cause of action for negligence against Cambridge only if, under the circumstances alleged, Cambridge owed a duty of care to National.
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