WELL, YOU'RE NOT VERY WELL OFF FINANCIALLY; YOU KIND OF FLY BY NIGHT. I'M GOING TO HOLD THE MONEY UNTIL THE OUTCOME OF THE TRIAL, JUST IN CASE JOHN PARKER WINS AGAIN, AND THEY MIGHT BE ABLE TO DO THAT.
BUT, ORDINARILY, YOU WOULD BE ENTITLED, UNDER THE LAW, TO GO GET YOUR $20 BACK AS SOON AS THE HIGHER COURT SAYS JUDGMENT IS HEREBY VACATED AND SET ASIDE.
NOW, THAT JUDGMENT, IN THAT HYPOTHET, IS NO DIFFERENT IN LAW AND SUBSTANCE THAN THE $1 MILLION JUDGMENT THAT WAS INVOLVED IN THIS CASE. THERE WAS A JUDGMENT RENDERED AGAINST DR. DAVOUDLARIAN, WHICH PHYSICIAN'S NATIONAL RISK RETENTION GROUP WAS OBLIGATED TO PAY, BECAUSE THE DOCTOR HAD INSURANCE.
WE HAVEN'T TALKED ABOUT INSURANCE YET. WE'RE GOING TO GET INTO THAT. BUT PHYSICIAN'S NATIONAL RISK RETENTION GROUP WAS OBLIGATED TO PAY THAT JUDGMENT. WHY? BECAUSE THEY TOOK MONEY FROM THE DOCTOR; HE PAID THEM A PREMIUM AND THEY ISSUED HIM AN INSURANCE POLICY.
AS THESE LAWYERS HAVE TALKED ABOUT ALL WEEK, THEY ARE OBLIGATED TO PROTECT DR. DAVOUDLARIAN'S INTEREST. SO, THEY DECIDED TO ENTER AN APPEAL AND TO POST AN APPEAL BOND, WHICH IS THE EQUIVALENT OF THE $20 THAT I WAS TALKING TO YOU ABOUT, EXCEPT IT'S A MILLION DOLLARS, MILLION-ONE-HUNDRED-SEVENTY-FIVE-THOUSAND.
I DON'T KNOW WHAT THE EXACT AMOUNT IS, AND, OF COURSE, THERE IS A LOT OF DIFFERENCE BETWEEN $20 AND A MILLION DOLLARS, BUT THERE IS NO DIFFERENCE IN PRINCIPLE BETWEEN $20 AND $1 MILLION. AND THERE IS NO DIFFERENCE IN WHAT THE PURPOSE OF THE MONEY IS.
THE PURPOSE, AND THE ONLY PURPOSE, UNDER LOUISIANA LAW, AND UNDER VIRGINIA LAW, AND I HAVE THE VIRGINIA LAW RIGHT HERE IN FRONT OF ME, IS, NUMBER ONE, SUSPEND THE JUDGMENT SO IT CAN'T BE EXECUTED UNTIL A HIGHER COURT ACTS ON *762 IT, AND, NUMBER TWO, TO GUARANTEE PAYMENT OF THE JUDGMENT. IT DOESN'T GUARANTEE PAYMENT OF ANYTHING ELSE. IT GUARANTEES PAYMENT OF A JUDGMENT.
NOW, WHEN PHYSICIAN'S NATIONAL RISK RETENTION GROUP ISSUED THIS POLICY OF INSURANCE TO THIS DOCTOR, IT INCURRED A NUMBER OF OBLIGATIONS. ONE OF THE OBLIGATIONS IS WHAT WE CALL THE DUTY TO DEFEND. THE OTHER OBLIGATION THAT IT HAS IS TO PAY, WHICH WE CALL INDEMNITY AGREEMENT.
SO, THIS INSURANCE COMPANY AND ANY OTHER INSURANCE COMPANY UNDER A SIMILAR TYPE CIRCUMSTANCE, OWES TWO DUTIES TO A PERSON WHO IS INSURED. THE FIRST IS THE DUTY TO DEFEND LAWSUITS, NOT ANYTHING ELSE. THE DUTY TO DEFEND LAWSUITS THAT ARE BROUGHT AGAINST THE PERSON INSURED. AND THAT DUTY IS TO DEFEND THOSE LAWSUITS WITHOUT REGARD TO WHETHER THEY ARE TRUE.
IN OTHER WORDS, THE COMPANY IS REQUIRED TO DEFEND LAWSUITS THAT ARE FALSE, AS WELL AS LAWSUITS THAT ARE GOOD. AND THEN IF THE COMPANY LOSES, THE COMPANY - AND I'LL QUOTE FROM THE POLICY - "WILL PAY ON BEHALF OF THE INSURED, ALL SUMS WHICH THE INSURED SHALL BECOME LEGALLY OBLIGATED TO PAY AS DAMAGES UNDER A JUDGMENT OF A COURT."
NOW, AN INSURANCE COMPANY DOESN'T HAVE ANY OBLIGATION TO PAY ANYTHING