Town of Massena v. Healthcare Underwriters Mut. Ins. Co.,
2002 WL 31056039 (N.Y. Sept. 17, 2002)

A physician brought an action against a hospital, alleging, among other things, that the hospital "intentionally and maliciously made false statements to his patients, potential patients, and the community at large in an effort to damage his reputation as a doctor." The hospital sought a declaration that three of the hospital's insurers owed it a defense in the action filed by the physician.

With respect to one of the insurers, the New York Court of Appeals held that, because the physician's claim was encompassed in that insurer's policy, which covered personal injury caused by slander, libel or other disparaging material, the insurer was obligated to defend the hospital against all of the claims that were raised by the physician (not just the claims pertaining to libel, slander, or disparaging material). The court held that the other two insurers had no such duty because the conduct of the hospital was excluded under the policy.