Professional Negligence Law Reporter

A federal district court held that a travel insurer may be liable for failing to arrange prompt emergency medical care for its policyholder, who fell ill while on a cruise.

William Christie purchased travel insurance from Jefferson Insurance Co. The policy, which was serviced by AGA Service Co., allegedly obligated the companies to provide for the coordination and supervision of emergency medical care during a cruise. While onboard the ship, Christie experienced severe back pain and was unable to walk. He was referred to a Puerto Rico hospital for an MRI, but the facility lacked scanners. Christie and his wife tried to arrange an airlift to a Florida medical facility, but AGA would not agree to the airlift before Christie underwent an MRI. Christie then used $10,000 in private funds to travel by chartered air ambulance to a hospital in Tampa, where he was diagnosed as having cauda equina syndrome. Despite emergency surgery, he suffered paralysis.

Christie sued Jefferson Insurance Co. and AGA Service Co., alleging breach of contract and failure to coordinate medical care. The defense moved to dismiss.

Denying the motion, the district court rejected the defendants’ argument that the tort-style damages the plaintiff claimed were not the type of damages contemplated by the parties’ contract. Citing case law, the court found that the plaintiff need only plead that his injury was a foreseeable consequence of the defendants’ alleged breach. The court determined, making all inferences in the plaintiff’s favor, that his injuries were a foreseeable consequence of the defendants’ alleged failure to perform their duty under the contract.

The court also found that the plaintiff had adequately pleaded that the defendants owed him a duty under the undertaker’s doctrine and therefore pleaded an independent tort beyond his breach of contract claim. When an insurer agrees to coordinate emergency medical services on a policyholder’s behalf, it must do so in a manner that does not cause an undue risk of harm, the court said.

Citation: Christie v. Royal Caribbean Cruises, Ltd., 2020 WL 6158815 (S.D. Fla. Oct. 21, 2020).

Plaintiff counsel: AAJ member Michael T. Flanagan, Coral Gables, Fla.; and Phillip D. Parrish, Miami.