McMahon v. Medical Protective Co.

MEMORANDUM OPINION

CONTI, Chief Judge.

I. Introduction

The dispute in this case arises out of an insurer’s negotiation of settlement of a third-party claim against its insured. Defendant The Medical Protective Company (“Medical Protective”) issued a dental malpractice insurance policy to plaintiff Susan McMahon (“McMahon”). A third party sued McMahon for malpractice and McMahon and Medical Protective settled that malpractice lawsuit. Under the settlement agreement, McMahon paid $50,000 of her own money in addition to the money paid by Medical Protective. McMahon filed this lawsuit against…