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Travelers Indemnity Co. v. Children's Friend and Service12/1/2005
DECISION
Before this Court is a motion for partial summary judgment, filed by The Travelers Indemnity Company ("Travelers"), on Count II of its First Amended Complaint against National Union Fire Insurance Company of Pittsburgh, PA ("National Union"), by which it seeks a declaration that National Union owes Children's Friend and Service, Inc. ("CFS") a duty to defend with respect to "wrongful adoption" claims brought against CFS by plaintiffs in related litigation. See Rowey v. Children's Friend & Serv., No. 98-0136, 2003 R.I. Super LEXIS 153 (R.I. Super. Ct. Dec. 12, 2003). By its First Amended Complaint, Travelers seeks a declaratory judgment against CFS and two insurance companies that issued policies to CFS- National Union and Frontier Insurance Company ("Frontier"). Specifically, Travelers seeks a determination of the rights and liabilities of the parties pursuant to several liability policies issued by Travelers to CFS and seeks indemnification and contribution from National Union and Frontier. In this motion for partial summary judgment as to Count II of the First Amended Complaint, however, Travelers seeks a declaration only against National Union, establishing that it has a duty to defend CFS in the related litigation under seven insurance policies issued by National Union to CFS and to contribute to the already incurred and future costs of defense. For the reasons set forth in this Decision, this Court grants Travelers its request for partial summary judgment and declaratory relief with respect to six of the seven policies at issue.
FACTS AND TRAVEL
In 1981, Joseph and Linda Rowey (the "Roweys") sought to adopt a child through CFS. (Roweys' Am. Compl. 9.) In December of the following year, the Roweys were informed by CFS that a child was available for them to adopt. (Id. 12.) At that time, the Roweys allege, CFS "made certain representations to [them] concerning the medical and family history of the prospective adoptive child, the natural mother of the child, and the child's general background history, intending that [they] would rely thereon." (Id. 13.) Indeed, according to their complaint, the Roweys relied on these representations in deciding to adopt the child, Lisa Rowey, in December 1982. (Id. 3, 18.)
The Roweys claim that in February 1995, "they first learned that material information had been previously withheld from them" by CFS. (Id. 19.) They claim that CFS negligently
(a) "failed to provide accurate and complete information regarding [Lisa Rowey's] general background and history," particularly with respect to her medical, psychological, and family history; (b) "misrepresented and/or omitted material information" of the same ilk; (c) "failed to supply [the Roweys with] medical records regarding [Lisa Rowey's] past diagnosis, treatment, and care;" and (d) "failed to properly inform [the Roweys] of [Lisa Rowey's] probable need for future treatment." (Id. 16.)
The Roweys allege that as a result of CFS's negligence, they were deprived of the ability to make informed decisions as to "(a) whether they should or should not adopt the child; (b) whether they were capable of properly raising and caring for the child; and (c) how to properly address the child's needs regarding future care, treatment and general upbringing." (Id. 15.) The Roweys contend that "as a direct and proximate result" of CFS' negligence, the Roweys, their adopted daughter, Lisa Rowey, and her sister, Meghan Rowey, all have suffered great mental anguish, emotional distress, property damage, and bodily injury; that they have been forced to expend large sums of money for medical and psychiatric treatment; that they have lost opportunities f
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