Slotkin ex rel. Slotkin v. Citizens Casualty Co.

MEMORANDUM OPINION AND ORDER

SOFAER, District Judge:

This case is a fraud action arising from the settlement in 1971 of a hospital malpractice action brought by plaintiffs in the Supreme Court, Kings County, against Brookdale Hospital Center. The hospital’s primary insurer was Citizens Casualty Company of New York (“Citizens”), with whom the hospital had primary malpractice insurance coverage for up to $200,000. In addition, the hospital had $1,000,000 in excess coverage written by Lloyd’s of London.

Citizens assumed the defense of Brook-dale, and after considerable negotiations the case was…