A
patient's family filed a wrongful death suit against a hospital and physicians.
Since the hospital's insurer was in receivership, the court granted a temporary
stay until the solvency issue could be determined. Virginia law requires the
court to stay proceedings for at least six months when insurers are insolvent.
This allows the Virginia Property and Casualty Insurance Guaranty Association
to then undertake the defense. The family argued that the insurance company
had not yet been deemed insolvent, therefore this statute should not apply.
The court reasoned that, under the circumstances of this case, the stay would
be appropriate.
The physicians wanted to be severed from the stay, but the court deemed that, due to the interrelationship of the claims, it would be unfair to the family to allow separate actions. The court granted the stay pending the determination of the insurance company's solvency at which time appropriate action would follow.