I am a defendant in a medical malpractice action. Is LSI continuing to defend the lawsuit?

LSI was self-insured for malpractice claims in most states up to the first $1 million in claims and had multiple layers of insurance in excess of $1 million.  The Assignee understands that the insurance policies also covered the physicians and other employees at LSI.  Consequently, LSI was providing a defense for itself and all co-defendants. Absent infusions from third parties, LSI has no funds to continue this defense, and the Assignee understands that counsel for LSI and the other defendants in those actions will seek leave to withdraw as counsel of record.

Section 727.105 of the Florida Statutes prohibits the commencement of proceedings against the Assignee.  Stichter Riedel has filed a notice of the commencement of the assignment in the underlying litigation in which LSI was a defendant.  To share in distributions, if any, from the ABC, claimants must timely file claims in the assignment case by the claims bar date.  There is a link to the proof of claim form on this website.  The bar date for filing proofs of claim is July 12, 2019.

Because the filing of a proof of claim is the exclusive method of sharing in any distribution, any further proceedings in an underlying law suit will have no impact on the Assignee or the assets he is administering. Plaintiffs and co-defendants in the underlying state court action should consult with their counsel as different courts may view the effect of the assignment differently and may or may not decide to stay the underlying action.

Counsel to the Assignee, Stichter Riedel, has advised the excess carrier, National Fire & Marine Insurance Company, as administered by a MedPro Group Company (“MedPro”), and representatives of LSI, of the filing of the ABC and have been advised that MedPro is evaluating the situation.

MedPro Group has issued a Reservation of Rights Letter, dated April 26, 2019, regarding the pending medical malpractice claims.