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Court: Hospital system will have to pay its own legal fees

PASCAGOULA, Miss. (AP) — Singing River Health System has lost its case in the 5th Circuit Court of Appeals against an insurance company that has been paying the hospital system’s legal fees in the court battle against its retirees.

The Sun Herald reports that over the course of two years, SRHS has had multiple attorneys and incurred about $3.4 million in attorney fees, which insurer Chubb paid. Chubb argued that there was a $1 million limit to what it actually owed.

SRHS spokeswoman Georgia Storey says that the appeals court’s decision overturns U.S. District Judge Louis Guirola Jr.’s previous ruling that Chubb was required to pay all defense costs. She says the court’s ruling isn’t clear regarding claims already paid.

SRHS hasn’t decided if it will appeal the ruling.

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