Mutual Benefit Ins. Co. v. Haver

Mutual Benefit Ins. Co. v. Haver

Opinion

 [**744]   [*536]  OPINION

MR. JUSTICE ZAPPALA

We granted allocatur to address the issue of whether an insurance carrier has a duty to defend and possibly indemnify an insured pharmacist against a claim that is based upon his distribution of controlled substances, when the insurance policy [***2]   [*537]  explicitly excludes coverage for bodily injuries which are a consequence of "knowing endangerment" by the pharmacist. We hold that the carrier has neither a duty to defend nor a duty to indemnify.

On December 2, 1993, John and Candace Macko, Appellees, filed a complaint against Joseph B. Haver, who is also an Appellee, seeking recovery for damages allegedly sustained by Candace Macko as a result of  [**745]  Haver's distribution of medications without any prescription. The complaint specifically alleged that Haver dispensed, among other things, Codeine, Demerol, barbiturates, sedative hypnotics, sleeping pills, Valium, and Tylox (Percocet), to Mrs. Macko, and that he ignored requests, which were made by both John Macko and Mrs. Macko's mother, that he cease dispensing the drugs to her. The complaint also alleged that Mrs. Macko's personal physician and psychologist contacted Haver and advised him not to provide her with any further medications, but that Haver continued to do so. Haver submitted the Mackos' complaint to his insurance carrier, Mutual Benefit Insurance Company, Appellant.

Mutual Benefit filed a Complaint for Declaratory Judgment asserting that it was not required to defend [***3]  or indemnify Haver because the insurance policy contained the following provision:

Section IIC, Liability Not Insured

ENDANGERMENT OR HARM

We do not cover bodily injury or property damage whether or not expected or intended by the insured, which is a consequence of an insured's willful harm or knowing endangerment. This does not prohibit modification of this provision if done by us in writing.

Full case includes Shepard's, Headnotes, Legal Analytics from Lex Machina, and more.