UI insurer argues it shouldn't have to defend psychiatrist

The insurance company formed to provide malpractice coverage for University of Iowa physicians has filed a lawsuit arguing it should not be required to provide any defense or security for a UI Hospitals and Clinics physician accused of having a sexual relationship with a former patient.

Sergio Paradiso, a 49-year-old UIHC psychiatrist and associate professor, was sued last year on several counts including sexual battery and intentional infliction of emotional distress. His accuser, a former 29-year-old patient in the hospital's Eating Disorder program, said he “engaged in inappropriate and prohibited sex acts,” according to the lawsuit filed this week in Johnson County Court.

The woman originally named the State of Iowa and the UIHC as defendants in the lawsuit, but she filed an amended complaint in November dropping the hospital from the lawsuit.

Paradiso, who has denied any wrongdoing, has demanded a defense for the woman's claims, according to the lawsuit filed this week. But the UI-founded Iowa Medical Mutual Insurance Company has denied any coverage of Paradiso and is asking a judge to issue an order declaring the company has no obligation to defend Paradiso in the case.

The policy only covers claims that “arise out of a medical incident resulting from professional services rendered by a physician or surgeon,” according to the lawsuit.

In the original lawsuit, the alleged victim states she was a patient at the UIHC three times from 2008 to 2009, and she was discharged from the hospital in December 2009. A couple months later, in February 2010, the woman states in the lawsuit that she and Paradiso became engaged in a consensual romantic relationship.

Throughout the relationship, which ended in May 2010, the woman alleges that Paradiso engaged in sexual conduct and “used her for his own sexual gratification,” according to the lawsuit. She said the relationship caused her to suffer psychological harm and relapse of alcohol abuse, and she claims Paradiso used his knowledge of her mental health history to seduce and maintain a sexual relationship with her.

The insurance company argues that even if those allegations are found to be true, the claims are excluded under their policy.

“Paradiso's alleged actions did not arise out of a ‘medical incident' because the physician-patient relationship had been terminated in 2009,” according to the lawsuit.

The woman is seeking a monetary judgment against Paradiso and the state for medical service past and future, physical, emotional and mental pain and suffering, value of lost wages and future earning capacity.

A trial date has yet to be set in the original lawsuit.