McGee v. U.S. Fidelity & Guaranty Co.

McGee v. U.S. Fidelity & Guaranty Co.
U.S. Court of Appeals, First Circuit
53 F.2D 953 (1931)

Circuit Court Justice Anderson delivered opinion

Facts:

• October 1925, George Hawkins brought suit against McGee
• First trial, jury disagreed (?)
• Second trial, court directed a verdict for defendant on first count but denied motion as to second count
• Result of second trial was a verdict for Hawkins for $3000 / Dr. McGee saved numerous exceptions (?)
• Motion before Judge Scammon set aside on grounds that damage was excessive
• Ruling was reversed by NH cout (Hawkins v. McGee, 84 N.H. 114, 146 A. 641.)
• FINALLY! Brings us to current case where doc sues ins. co. claiming they are liable to reimburse him under policy
• Before third trial, McGee notifies ins. co. that claim could be adjusted to $1400, that they can go forward at own risk but if he pays $1400 to settle, he is coming after them for reimbursement
• Company refuses
• McGee settles with Hawkins and brings suit against ins. co. for $1400 plus attorney's fees
  
• Court found if he's entitled to recover, he is entitled to $4,248.48

Issue:
Did policy of insurance company extend to cover "special" contract that was arranged by plaintiff, requiring a payout if the contract was breached?

Holding: Court ruled that the policy in question did not extend to such special contract

Reasoning:

• Issue as submitted by Judge Scammon to jury was whether or not McGee made a special contract and if he did so did he fail in its performance
• Jury found there was a special contract made and doctor failed to perform
• Expenses sought to be recovered resulted from findings of jury that special contract existed and not because of "malpractice, error or mistake" in treatment
  

Judgment: For the defendant, affirmed