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Insurance Bad Faith
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Ceimo v. Paul Revere,
Provident Life and Accident, and General American Life
$84,000,000 Verdict for bad faith denial of disability benefits - U.S. District Court, Phoenix, Arizona,
4/2/2003. Jury finds that disability insurer terminated benefits of cardiologist in bad faith. Jury awards $5.4 million for
emotional distress and $79 million punitive damages. This award was # 7 in the
Top Ten Jury Verdicts of 2003. FR's
Co-Counsel - Steve Dawson and Anita Rosenthal, Phoenix, AZ.
Merrick v. Paul Revere and UnumProvident (Unum Group)
$61,647,355 Verdict for bad faith denial of disability benefits
- U.S. District Court, Las Vegas, Nevada, 12/13/2004
(compensatory award) and 6/26/08 (punitive damage award).
Disabled venture capitalist sued insurer for denial of
disability benefits and bad faith. Jury verdict of
$1,147,355 in back benefits, $500,000 for emotional distress
and $60 million in punitive damages. See our
News
page for further details. This award was # 7 in
the
Top Ten Jury Verdicts of 2008 FR's Co-counsel - Julie Mersch, Las Vegas, NV
and Mac Sasser, Charlotte, NC.
Bergonzi v. Central States Health and Life Co. of Omaha
$20,000,000 Class Action Settlement for
bad faith denial of cancer insurance benefits - U.S.
District Court, Sioux Falls, South Dakota, 11/18/03. Insurer agreed to pay $20 million to settle claims that it sold
cancer insurance to people nationwide but paid only a fraction of the benefits when they got sick. Of the $20 million,
$7.5 million is to be paid to about 1,240 people who were denied coverage. Of the rest, $2.5 million will pay attorneys'
fees and the remainder will be put into a fund to pay for any future medical expenses incurred by the 1,400 people who
filed claims or any of more than 18,000 other people nationwide who bought the policies but have not contracted cancer.
FR's Co-Counsel - Mike Abourezk, Rapid City, SD and Peter Kahana, Philadelphia, PA.
Details.
Nordhoff Townhomes Association v. Farmers Insurance Co.
$20,000,000 settlement for bad faith denial of earthquake insurance benefits - Los Angeles
Superior Court, California 3/2000. Condominium owners sued Farmers for bad faith for the handling of their property
damage claims after the Northridge Earthquake in 1994. Jury verdict of $3.9 million compensatory damages. Case
settled for $20 million prior to punitive phase of trial. FR's Co-counsel - Bernie Bernheim, North Hollywood, CA.
McKendry v. General American, Paul Revere
$17,300,000 Verdict for bad faith denial of disability benefits - Maricopa County Superior
Court, Phoenix, Arizona. 6/1999. Man whose disability insurance benefits were terminated sued for bad faith. $350,000
compensatory damages, $17 million punitive damages. Confidential settlement pending retrial. FR's Co-counsel -
Steve Dawson, Phoenix, AZ.
Ace v. Aetna
$16,500,000 Verdict for bad faith denial of disability benefits - U.S. District Court, Juneau, Alaska.
5/1996. Woman whose disability insurance claim was denied sued for denial of benefits and bad faith. Jury verdict of $127,000
compensatory damages, $16.5 million punitive damages. Remitted post appeal. Case settled for confidential amount.
Tyson v. State Farm
$10,000,000 Settlement for improper denial of attendant care benefits in auto insurance policy -
Wayne County Circuit Court, Detroit, Michigan, 9/10/2004. Man rendered quadriplegic in a car accident in 1977 sued insurer
for concealing the availability of attendant care benefits and underpayment of benefits. Case settled for $10,000,000 after
trial commenced. Insurer continues to be responsible for unlimited attendant care benefits in the future. FR's
Co-counsel - Paul Zebrowski, Shelby Township, MI.
Robinson v. State Farm
$9,500,000 Verdict for bad faith denial of medical benefits in auto insurance policy - Ada County
District Court, Boise, Idaho, 3/1998. Woman injured in a single car accident sued insurer for failure to make payment under
medical pay coverage. Jury verdict of $102,000 compensatory damages, and $9.5 million in punitive damages. Confidential
Settlement pending retrial. FR's Co-counsel - Jim Harris, Boise, ID and Dale McGarvey, Kalispell, MT. Cindy Robinson's
story was featured by Dateline NBC - in
Paper Chase Part I broadcast June 23, 2000 and Paper Chase Part II broadcast
July 25, 2000. Click here for a 5-minute video clip of
the original broadcast (You must have RealPlayerŽ to play this video).
Fisher v. Aetna
$8,600,000 Verdict for bad faith denial of disability benefits - Anchorage Superior Court, Alaska,
7/9/1998. Man whose disability insurance claim was denied sued for denial of benefits and bad faith. Jury verdict of
$292,000 compensatory damages, $8.4 million in punitive damages. Settled for a confidential amount.
Daniels v. v. American
Physicians Assurance Corporation
$3,829,277 Verdict for bad faith delay
of settlement of malpractice claim - Jefferson County
Circuit Court, Louisville, KY,
6/3/2009. Insurer unreasonably delayed settlement of
woman's medical malpractice claim against doctor. Jury verdict of
$250,000 compensatory damages, $3,479,277 in punitive
damages. For details, click
here to go to
our news page.
Johnstown Feed & Seed v. Continental
Western Insurance Co.
$3,500,000 Verdict for bad faith delay
of fire insurance benefits - U.S. District Court,
Denver, Colorado, 2/24/2010. Insurer unreasonably delayed
payment following fire because it also insured welders who
caused fire that burned down grain elevator and feed mill.
In addition to the $3.5 Million awarded by the jury,
plaintiffs may recover up to $1.5M in prejudgment interest. For details, click
here to go to
our news page. FR's Co-counsel - Chris Ingold, Denver, CO.
Paquette v. State Farm
$3,296,413 Verdict for improper denial of attendant care benefits in auto insurance policy -
Macomb County Court, Michigan, 7/26/2006. Mother of teenager who suffered brain stem injury in auto accident in 1985
sued insurer for concealing the availability of attendant care benefits and underpayment of benefits. Jury verdict of
$3,296,413.29. In addition, insurer may be required to pay attorney fees and costs and must continue to pay attendant
care benefits in the future. FR's Co-counsel - Paul Zebrowski, Shelby Township, MI. Further details are on our
news page (click here).
Greenberg v. Paul Revere Life Ins., Co., et al.
$2,950,000 Verdict for bad faith denial of disability benefits - US District Court, Phoenix,
Arizona, 1/2002. Disabled stockbroker sued for bad faith arising out of termination of benefits under own occupation
disability insurance policy. $547,445.42 compensatory damages; $2.4 million punitive damages. Affirmed, 2004 WL 74630
(9th Cir. 2004). FR's Co-counsel - Calvin C. Thur, Scottsdale, AZ.
David Mello v. Horace Mann Insurance Company
$650,000 settlement for bad faith denial of underinsured motorist benefits - 1st Judicial
District Court, Carson City, Nevada 1/2003. (Breach of contract and Insurance Bad Faith) David Mello, an optometrist,
was rear-ended by a drunk driver who had only $15,000 of insurance. Despite substantial back injuries and economic
losses, his insurance company failed to promptly or fairly evaluate his injuries or investigate his claim. Case
settled prior to trial for $650,000. FR's Co-counsel James Wilson, Carson City, NV.
Daniel Athey v. Farmers Insurance Exchange
$645,000 Verdict for bad faith denial of underinsured motorist benefits - US District
Court, Sioux Falls, South Dakota, 8/1999. Man sued Farmers for bad faith claim evaluation and handling in
connection with underinsured motorist coverage. Jury verdict of $185,000 compensatory damages, $450,000
punitive damages. FR's Co-counsel Christopherson,
Bailin & Anderson, Sioux Falls, SD. Paralegal -
Kimberly Becker.
Koch v. Northwestern Mutual Life
Insurance Co.,
Jury Verdict for breach of insurance contract - U.S. District Court,
Tacoma, WA, 11/19/2009. Insurer refused to pay disability
benefits to dentist with bilateral vestibular disorder and
attempted to rescind. Verdict for dentist obligates
insurer to reinstate benefits, pay attorney fees and court
costs. For more details, see our
News page.
Shepherd v. UnumProvident Corp. and Provident Life and Accident Ins. Co.,
Confidential Settlement - U.S. District Court, Pikeville, KY, 8/2005. Door to door insurance debit agent who became disabled following surgery
for heart tumor sued for bad faith denial of disability benefits. Confidential Settlement. FR's Co-counsel Austin
Mehr, Lexington, Kentucky.
Doe v. General American Life Ins. Co. and Paul Revere Life Ins. Co.,
Confidential Settlement - U.S. District Court, Eastern District of Pennsylvania, 2005. Disabled doctor sued insurer following denial of
benefits. All claims were settled to the mutual satisfaction of the parties. FR's Co-Counsel - Patrick J.
Reilly, Allentown, PA.
Connel v. The Equitable Life Assurance Society of the United States and Paul Revere Life Insurance Company,
Confidential Settlement - Court of Common Pleas, County of Richland, South Carolina, 2004. Disabled lawyer sued insurers for breach of contract and bad
faith after his benefits were denied following a heart attack. Confidential settlement. FR's Co-Counsel - Paul Kamber,
Columbia, SC.
Burns v. Paul Revere Life Ins. Co. and UnumProvident Corp.,
Confidential Settlement - U.S. District Court, Honolulu, Hawaii, May 2003. Disabled lawyer sued insurers for breach of contract and bad faith
after his benefits were denied following disabling mental illness. Confidential settlement. FR's Co-Counsel -
John O’Neil, Wailuku Maui , Hawaii .
Jakway v. UnumProvident and Paul Revere Life Ins. Co.,
Confidential Settlement -
U.S. District Court, C.D. California, January
2003. Disabled hospital administrator sued when disability
insurer arbitrarily terminated benefits. Confidential
Settlement. Co-counsel - Tom Curtis, Pasadena, CA.
Superior Hardwoods, Inc. v. Travelers Ins. Co.,
Confidential Settlement - Breach of contract and bad faith action against casualty carrier following fire loss. Confidential settlement.
FR's Co-counsel - Gerry Grimes, Sequim, WA.
Leak v. Unum Life Ins. Co.,
Confidential Settlement - U.S. District Court, S.D. California, April 2004. Disable electrical worker injured in rock slide on Mt. Rainier
sued when disability insurer arbitrarily terminated benefits. Confidential Settlement. FR's Co-counsel - Howard
Bennett Hellen, Vista, CA.
McCaa v. Massachusetts Mutual,
Confidential Settlement - Carson City, Nevada, 2004, Insured sued for bad faith after Mass Mutual arbitrarily denied benefits under
own-occupation disability policy. Confidential settlement. FR's Co-counsel - James Wilson, Carson City, NV.
Goetzfried v. Farmers Insurance,
iConfidential Settlement - Maricopa County Superior Court, Phoenix AZ, 2000. Insured sued for bad faith over handling of claim following fire.
Confidential settlement. FR's Co-counsel - Steve Gruenemeier, Phoenix, AZ.
Prabucki v. UnumProvident,
Confidential Settlement - Western District of Washington, 2001. Insured sued for bad faith arising out of termination of benefits under
disability insurance policy. Confidential settlement.
Sanders v. American Mutual, et al.,
Confidential Settlement - U.S. District Court, Nevada. Insured sued for bad faith arising out of denial of benefits under individual own
occupation policy. Confidential settlement. FR's Co-counsel - Julie Mersch, Las Vegas, NV.
Sanders v. Paul Revere Life Ins. Co., et al.,
Confidential Settlement - U.S. District Court, Nevada. 1/2002. Insured sued for bad faith arising out of termination of benefits under own
occupation disability insurance policy. Confidential settlement. FR's Co-counsel - Julie Mersch, Las Vegas, NV.
Johnson et al. v. Central States of Omaha Ins. Co.,
Confidential Settlement - U.S. District Court, Sioux Falls, South Dakota. Multiple insureds sued for bad faith claims handling arising out of
denial of benefits under cancer insurance policies. Confidential settlement. FR's Co-counsel - Mike Abourezk,
Rapid City, SD.
Lucas v. State Farm Mutual Automobile Ins. Co.,
Confidential Settlement - 4th Judicial District, Idaho, 1999. Insured sued for bad faith denial of medical payment coverage
benefits. Confidential Settlement. FR's Co-counsel - Jim Harris, Boise, ID and Dale McGarvey, Kalispell, MT.
Duffey v. State Farm Mutual Automobile Insurance Company,
Confidential Settlement - Superior Court Alaska Fourth Judicial District. 5/1999. Insured sued for bad faith denial of medical payment
coverage benefits. Confidential settlement. FR's Co-counsel - Chris Bataille, Fairbanks, AK. Duffey's
story was featured on Dateline NBC in Paper Chase Part I broadcast June 23, 2000 and Paper Chase Part II
broadcast July 25, 2000. Click here
for a 5 minute video clip from the Dateline broadcast.
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Business Torts
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Bellott v. State Farm
$152,000,000 verdict for tortious breach of contract - Superior Court, Anchorage,
Alaska, 3/1999. Insurance agent claimed his independent agency agreement was terminated in retaliation for his
refusal to engage in dishonest marketing practices. Jury verdict $2.7 million compensatory, $150 million punitive
damages. This award was # 9 in the Top Ten
Jury Verdicts of 1999. Settled for a confidential amount.
FR's Co-counsel - Pete Ehrhardt, Kenai, AK.
Geolar v. Gilbert/Commonwealth Inc. of Michigan and Gilbert Associates,
$12,000,000 verdict for contractor against administrator - Alaska 6/1995. Two trials
and jury verdicts resulting in $950,000 in compensatory damages, and $11.5 million in punitive damages for a small
contractor claiming abusive contract administration by owner and engineer.
ATWV v. Westward Seafoods,
$2,300,000 verdict for breach of contract - 11/1995. $2.3 million jury verdict
against processor for fisherman claiming breach of contract to accept crab.
Good Taste, Inc. v. United Airlines,
$1,500,000 verdict for breach of contract - $1.5 million jury verdict for airline
caterer claiming breach of contract.
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Personal Injury & Wrongful Death
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Doe v. Doe,
$5,860,000 verdict for traumatic brain injury -
Superior Court, King County, (Seattle) Washington, May 27,
2009. Head-on collision left client with a fractured
leg, contusions and a traumatic brain injury (TBI). Having
rejected plaintiff's $1.25 Million policy limit demand, PEMCO Insurance Co. had unlimited exposure. At trial
PEMCO offered $2 Million, then $2.5 Million. Jury
ultimately returned verdict for $5.86 Million. FR's
Co-counsel - Ed Harper, Kirkland, WA. For details,
click here to
go to our news page.
Martin v. Lauk,
$3,087,000 verdict for traumatic brain injury -
Jefferson County, Golden, Colorado, October 20, 2009.
Rear-end collision left client with a "mild" traumatic
brain injury (TBI) that deprived him of the ability to
operate truck dispatching business. The $3.1 Million
verdict was reported to be the largest personal injury
verdict ever in Jefferson County, Colorado. FR's Co-counsel -
Rich Kaudy, Denver, CO. For more details,
click here to
go to our news page.
Mills v. Van Buren Public Schools,
$4,000,000 verdict for death of child - Circuit Court, Wayne County (Detroit) Michigan,
September 28, 2006. Five-year-old Mikel Mills was fatally injured when he was hit, dragged and eventually run over
by a school bus owned by Van Buren Public Schools. Plaintiff parents, aunt and grandmother sought damages under
the Wrongful Death Act and otherwise, including damages for the boy's conscious pain and suffering. The aunt and
grandmother had separate claims for negligent infliction of emotional distress. FR's Co-counsel - Paul Zebrowski,
Shelby Township, MI.
Schwartz v. F/V The Arctic Orion,
$6,750,000 for injury to fisherman - U.S. Dist. Ct., D. Alaska, Feb. 15, 1994. Crew
member inadvertently engages crabbing equipment resulting in skull fracture to crewmate. After the trial court
granted partial summary judgment to plaintiff, the parties structured a settlement.
Lutes v. Rotschy, Inc.,
$700,000 for woman with mild traumatic brain injury - Clark County Superior Court,
Vancouver, Washington, January 12, 2007. Woman involved car accident experienced personality changes and loss
of concentration. It was later determined that she had suffered a closed-head, mild traumatic brain injury
from the automobile accident.
Estate of Stokes v. Alaska Airlines, Francisco, California. Wrongful death on
behalf of relatives of woman killed in crash of Alaska Air Flight 261. Confidential Settlement.
Estate of Cork v. Peninsula Airways US District Court, Alaska. Wrongful Death
on behalf of survivors of man killed in plane crash. Confidential Settlement.
Ronning & Solvik v. American Seafood, Inc., $1.4 million jury verdict for
two seamen, one with shattered knee, one with shattered ankle.
Logan v. Laidlaw, Eight year old girl hit by car while crossing street to
reach school bus stop. Serious, permanent brain injuries. Confidential settlement.
Murray v. UNOCAL, Oil worker fell from platform and sustained paraplegic
injuries. Confidential settlement.
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Other Torts
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A.J. & D.D. v. State of Alaska,
$2,400,000 settlement for abuse in
foster care system - Superior Court, Anchorage,
Alaska (2008) Two boys abused and neglected in state foster
care sued State agency for failing to protect them from
abusive foster parents. For more details,
see our News
page.
Ken Friedman led FR's trial team. FR's
co-counsel - Chris Schleuss, Anchorage, Alaska.
Dodson v. Morgan Stanley,
$750,000 settlement for gender
discrimination - U.S. District Court, Seattle,
Washington (2007). Woman who had worked as a Financial
Advisor for Morgan Stanley from 1996 to 2005 filed suit in
2006 alleging that she was denied a lucrative joint
production agreement with a senior advisor when the
partnership was given to a less experienced and less
qualified male broker in the office. For more details,
see our News
page.
Ken Friedman of Friedman | Rubin
and Terry Venneberg represented
Ms. Dodson.
Rollins v. King County
Metro Transit,
$250,000 verdict for victims of beating
on bus - Superior Court, Seattle, Washington (2007).
Bus driver allowed rowdy group to board bus and ignored
subsequent attack on young couple. For more
details, see our
News page.
Ken Friedman of Friedman | Rubin
represented Ms. Rollins.
EEOC v. National Education Association,
$750,000 settlement against National Education Association (NEA) and National Education
Association-Alaska (NEA-AK) - U.S. District Court, Anchorage,
Alaska (2006). Three former employees of NEA Alaska sued for gender discrimination following repeated harassing
and abusive behavior by their supervisor at the teacher’s union state offices. This case is reported at 422 F.3d
840 (9th Cir.2005) As the Ninth Circuit noted, the record in the case revealed “numerous episodes of [the supervisor]
shouting in a loud and hostile manner at female employees. The shouting was frequent, profane and often public.”
In addition to the “shouting” and “yelling” described by the appellate court, it was recognized that the supervisor’s
“verbal conduct also had a hostile physical accompaniment.”
Ken Friedman of Friedman | Rubin
and Terry Venneberg represented the
individual plaintiffs. Carmen Flores and Jennifer Goldstein represented the EEOC.
C.H. and R.H. v. Professional Guardian
Services Corporation,
$610,000 for breach of fiduciary duty -
Superior Court, Bethel, Alaska, 2007. Minors' assets
under protection of a professional conservator were
squandered by children's grandmother. PGSC failed to
take control of funds, failed to file an inventory of the
children's assets within 90 days as required by Alaska law,
or file the required annual reports. Plaintiffs argued that
PGSC's failure to realize that the bank accounts were not
protected, together with other violations of its fiduciary
duties, amounted to a gross deviation from its obligations
to the children and thus justified economic, non-economic,
and punitive damages. PGSC filed a third party complaint
against First National Bank, which contributed to the
settlement. FR's co-counsel - Chris Schleuss,
Anchorage, Alaska.
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Chavez v. El Dorado Stone,
$475,000 for sexual harassment of female worker - U.S. District Court, Seattle,
Washington, Dec. 20, 2004. Company failed to prevent one of its supervisors in its Washington plant from sexually
harassing two female employees and then fired four other employees of both genders in retaliation when they
complained about the harassment. The harassment was both verbal and physical, culminating in an alleged
attempted sexual assault on one of the women. FR's Co-Counsel -
Terry Venneberg, Bremerton, Washington.
Mulock v. City of Kodiak,
$950,000 jury verdict for wrongful termination of city police officer.
Luse v. Ketchikan Gateway Borough,
US District Court, Anchorage, Alaska, 4/1998. Jury verdict of $526,000 compensatory damages in wrongful termination case. FR's
Co-counsel - Elizabeth Dronkert, Bainbridge Island, WA.
Jones v. ERA Aviation,
Superior Court, Anchorage AK, 10/1998. Defamation case against former employer, $415,000 compensatory, $750,000 Punitive.
Settled for confidential amount.
Alaska Housing Finance Corporation v. Salvucci,
Former state employee brought action against state employer alleging breach of contract and Whistleblower Act violations.
Employee was awarded $43,200 in lost past wages and benefits, $144,234 in lost future wages and benefits, $500,000 in
punitive damages and $62,493.30 in prejudgment interest. On appeal, 950 P.2d 1116 (Alaska 1997), court held that:
(1) employer breached its employment contract with employee; (2) Whistleblower Act protects public employee who
submits written report of matter of public concern to his own employer; (3) Whistleblower Act does not authorize
award of punitive damages against state or its instrumentalities; and (4) remand was required for recalculation
of prejudgment interest.
Rink v. Norton Sound Economic Development Corp.,
Superior Court, Anchorage, Alaska, 9/2001. Jury verdict in defamation case. $400,000 judgment. FR's Co-counsel -
Terry Venneberg, Bremerton, WA.
Sizemore v. U.S. News & World Report,
Defamation action on behalf of former Naval serviceman, claiming defamation from magazine article about PTSD.
After two years of litigation, confidential monetary settlement and prominent apology published world-wide in
all U.S. News affiliated publications.
Doe v. Port of Seattle,
confidential settlement in civil rights action where woman was violently arrested by police without
justification, shoulder injuries, emotional distress.
*Disclaimer:
Many of the judgments entered were larger than the verdicts,
due to the addition of statutory interest, attorney fees
and/or costs. Many of the verdicts were either reduced on
appeal, or settled for amounts less than the judgment. These
cases and results are a sampling of results achieved. This
does not constitute a promise, guarantee or warranty of any
kind. Results differ from case to case.
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