RCA Mutual Insurance Co. v. Sanborn

MONTGOMERY, Presiding Judge.

This appeal arises from a declaratory judgment action brought by RCA Mutual Insurance Company (RCA) against its insured, Dr. Gregory Henry (Dr. Henry), and John San-born (Sanborn), Dr. Henry’s former patient. 1 Earlier, Sanborn had filed a malpractice suit on February 13, 1992, against Dr. Henry alleging negligent treatment and surgery on his right hip (the underlying action).

While the underlying action was pending Sanborn and RCA entered into a settlement agreement whereby RCA (1) paid Sanborn $200,000 for a release of Dr. Henry’s liability to him, (2) agreed to…