38.2-4404 - Liability of participating providers. - Virginia Statutes

§ 38.2-4404. Liability of participating providers.

A. Except for a plan established pursuant to § 38.2-4403, all participatingproviders in a plan shall be jointly and severally liable on all contractsmade for the purposes of the plan by the organization as agent for them. Eachcontract may be executed and signed by their agent on their behalf. Acontract so signed shall be binding on the participating providers and not onthe agent.

B. Actions for breach of these contracts may be brought against theparticipating providers by naming the agent as the sole defendant. A judgmentin favor of the plaintiff may be satisfied out of the assets of the legalservices organization or out of the assets of each of the participatingproviders.

C. Each participating provider shall be liable for his own torts and not forthe torts of any other participating provider or of the agent.

(1978, c. 658, § 38.1-794; 1982, c. 387; 1986, c. 562; 1994, c. 224.)