In the wrongful death case for Lee Lindemann, filed on behalf of the Estate of Sue Ann Lindemann, the U.S. District Court ruled that estoppel blocked National Fire & Marine Insurance Co. from invoking a “declining balance” provision in its insurance policy. The insurance company asked for a reduction from its $1 million liability limit to $600,000 by subtracting the $400,000 National paid for the defense expenses during two years of litigation.
National’s policy covered Dr. Erick Falconer in this wrongful death case and another defendant, Western Healthcare. In May 2013, the answer that Falconer’s attorney submitted to “Interrogatory 9” said he was insured under a National policy that had a $1 million liability limit.
But when responding to her request for a copy of the insurance policy, Dr. Falconer’s attorneys reportedly took the shortcut of referring back to this interrogatory answer. This maneuver meant that the litigants didn’t see the policy provision that ordinarily would have reduced the liability limit by the amount of defense expenditures.