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PRINCIPAL MUT. LIFE INS. v. CHARTER BARCLAY HOSP.

No. 95-2786.

81 F.3d 53 (1996)

PRINCIPAL MUTUAL LIFE INSURANCE COMPANY, Plaintiff-Appellee, v. CHARTER BARCLAY HOSPITAL, INCORPORATED, Defendant-Appellant.

United States Court of Appeals, Seventh Circuit.

Decided April 3, 1996.

Attorney(s) appearing for the Case

Louis C. Roberts, Daniel J. McMahon, Noelle Swanson Berg (argued), Wilson, Elser, Moskowitz, Edelman & Dicker, Chicago, IL, for plaintiff-appellee.

Ronald S. Mangum, David R. Louthan, Joshua A. Stein, Marian C. Nealon (argued), Mangum, Smietanka & Johnson, Chicago, IL, for defendant-appellant.

Before POSNER, Chief Judge, and KANNE and ROVNER, Circuit Judges.

POSNER, Chief Judge.

Principal Mutual Life Insurance Company issued a group insurance policy to Eady's Scale Corporation, a small family business. Robert Eady, the son of the corporation's owner, ran up a bill for almost $50,000 at a psychiatric hospital owned by Charter Barclay Hospital, Inc. After Principal denied Eady's claim for reimbursement, on the ground that Eady was not in fact an employee of his father's firm, Charter billed Principal. Principal responded...

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