QUESTIONSEP 06, 2021

Dr. Grey and Dr. Shepard both worked for Seattle Grace Hospital

Dr. Grey and Dr. Shepard both worked for Seattle Grace Hospital.  One day, Isabella Injured was being treated by the doctors and suffered additional injuries.  She later sued Seattle Grace Hospital for medical malpractice.  The Ally McBeal Law Firm represented Seattle Grace Hospital in this medical malpractice suit against the hospital. Seattle Grace Hospital was self-insured for the first $1,500,000 of liability and the Happy Payout Insurance Company provided excess coverage of up to $5,000,000.  Unfortunately, the hospital went into bankruptcy.  At the time the hospital went into bankruptcy, it owed $93,000 to The Ally McBeal Law Firm for its work on the malpractice suit.  The bankruptcy court ordered the law firm to release its files on the case to Happy Payout Insurance Company to defend under the excess coverage insurance.  The law firm sued Happy Payout for its legal fees of $93,000 expended before the bankruptcy.  Identify the type of contract that existed and how will the court decide the outcome?

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