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11th Circuit regulates in favor of Hiscox in unfair business practices



A Hiscox Ltd. entity has no obligation to defend a medical practice that provides “regenerative” medical products and services sued by Georgia for unfair commercial acts, a federal appellate court on Tuesday upheld a lower court ruling.

Sandy Springs, Georgia-based Elite Integrated Medical LLC previously ran a medical practice that provided regenerative medical products and services to patients suffering from joint and limb pain, according to Tuesday’s ruling by the 11th U.S. Court of Appeals in Atlanta in Elite Integrated Medical, LLC, Justin C. Paulk vs. Hiscox, Inc., certain underwriters at Lloyd’s et. al.

In September 2020, Georgia’s prosecutors filed a civil lawsuit against Elite and its owner, Mr. Paulk, alleging violations of Georgia̵

7;s Fair Business Practices Act. The State claimed that the plaintiffs erroneously claimed that its products could treat, cure or alleviate diseases and health conditions, among other allegations.

After its insurer, Hiscox, refused to defend the plaintiffs under its professional liability insurance, they sued the insurer at the U.S. District Court in Atlanta, which granted Hiscox’s request to dismiss the case.

The decision was upheld by an appellate court with three judges. “The unambiguous language of the insurance makes it clear that the state’s claims fall outside the scope of the insurance coverage. First, none of the state’s claims involve” Covered professional services “, as defined in the policy, the judgment states.

“The appellant claims that Hiscox is obliged to defend them because the” true facts “show that any potential breach of the Fair Business Practices Act was unintentional. claims within the insurance coverage, it is stated in the judgment.

“We also reject the plaintiffs’ argument that Elite’s live seminars constituted ‘instruction’ within the meaning of ‘Covered Professional Services,'” the panel said, confirming the lower court’s decision.

Lawyers in the case could not be reached for comment.


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