PRINCIPAL MUTUAL LIFE INSURANCE COMPANY, Plaintiff-Appellee, v. CHARTER BARCLAY HOSPITAL, INCORPORATED, Defendant-Appellant

POSNER, Chief Judge.

Principal Mutual Life Insurance Company issued a group insurance policy to Eady’s Scale Corporation, a small family business. Robert Eady, the son of the corporation’s owner, ran up a bill for almost $50,000 at a psychiatric hospital owned by Charter Barclay Hospital, Inc. After Principal denied Eady’s claim for reimbursement, on the ground that Eady was not in fact an employee of his father’s firm, Charter billed Principal. Principal responded with this suit, naming Eady’s Scale Corporation and Robert Eady as defendants along with the hospital and seeking a declaration…