Massachusetts Bay Insurance Company v. American Healthcare Services Association

Massachusetts Bay Insurance Company v. American Healthcare Services Association

Opinion

 [**1046] Lynn, J. Defendant Arch Specialty Insurance Company (Arch) appeals multiple orders of the Superior Court (McHugh and Anderson, JJ.), granting summary judgment to defendants Triage Staffing, Inc. (Triage), Exeter Hospital, Inc. (Exeter), and American Healthcare Services Association (AHSA) on their petitions for declaratory judgment, and denying Arch's cross-motion for summary judgment. The court ruled that Arch is required to defend and indemnify [***2]  Triage, Exeter, and AHSA, pursuant to two insurance policies that Arch issued to Triage, for claims asserted against the defendants by patients of Exeter who contracted Hepatitis C (Exeter Patients). On appeal, Arch argues that the trial court erred in finding inapplicable certain exclusions found in the insurance policies and in determining that the claims involved multiple occurrences under the policies. We affirm in part, reverse in part, vacate in part, and remand.

In light of the arguments raised, it is important to state the facts and procedure in some detail. The pertinent facts of this case arise from the conduct of David Kwiatkowski, a cardiac catheter laboratory technician who was infected with the Hepatitis C virus. While working at Exeter, Kwiatkowski diverted opioid drugs to his own use and, after injecting himself with such drugs, returned the contaminated needles to the hospital's supply, where they were used in the treatment of numerous patients, some of whom contracted Hepatitis C. Exeter is a member of AHSA, a company that accredits and grades people in the healthcare industry. Exeter and AHSA contracted with Triage, a staffing company that places medical personnel [***3]  in medical facilities across the country. Pursuant to these contracts, Triage placed Kwiatkowski at Exeter.

In the wake of Kwiatkowski's actions, the Exeter Patients sued Triage, Exeter, and AHSA. Some of those suits have settled, while others have not. Triage, Exeter, and AHSA each carry insurance through a different insurance company: Arch primarily insures Triage; Hanover Insurance [*345]  Company primarily insures Exeter; and Massachusetts Bay Insurance Company (MBIC) primarily insures AHSA. This appeal chiefly concerns whether and to what extent the policies that Arch issued to Triage provide coverage to Triage, as a named insured, and to Exeter and AHSA, as additional insureds.

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