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ALTON MEMORIAL HOSPITAL v. METROPOLITAN LIFE INS.

No. 81-1062.

656 F.2d 245 (1981)

ALTON MEMORIAL HOSPITAL, etc., Plaintiff-Appellee, v. METROPOLITAN LIFE INSURANCE COMPANY, Defendant-Appellant, v. Scott H. JOHNSTON, et al., Third Party Defendants.

United States Court of Appeals, Seventh Circuit.

Decided July 29, 1981.

Attorney(s) appearing for the Case

P. Terence Crebs, St. Louis, Mo., for defendant-appellant.

G. Keith Phoenix, St. Louis, Mo., for plaintiff-appellee.

Before SPRECHER and CUDAHY, Circuit Judges, and EAST, Senior District Judge.

SPRECHER, Circuit Judge.

A hospital maintained a pension plan for its employees. Based upon the advice of its enrolled actuary, an insurance company, the hospital changed the plan from contributory to non-contributory. The insurance company had stated that the change could be made at a minimal cost to the hospital.

But the insurance company had mistakenly calculated the cost of the change. Upon discovering its mistake, the insurance company informed the hospital...

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