Louisville, KY Jury's Verdict: $3.9M for Bad Faith Insurance Practices
A Louisville, Kentucky jury awarded a woman in an insurance company bad faith lawsuit $3.8 million from American Physician Assurance Corporations for their bad faith and unreasonable delay in settling her claim. Deborah Daniels had an unconventional procedure performed on her that her doctor described as a “modified abdominoplasty.” The surgical procedure, performed by Dr. David Grimes, left Ms. Daniels unable to work again and required multiple and lengthy hospital visits.
Ms. Daniels filed a medical malpractice lawsuit in June 2004. AP Assurance was told by their own medical consultant that the surgical procedure performed on her was “inexcusable and indefensible.” AP Assurance did not make an effort to settle this case until July and August of 2006. By this time Ms. Daniels was told she would never work again after twenty years as a respiratory therapist and had been without an income for two years. In substantial financial distress, Ms. Daniels was offered only $75,000 of the $1 million policy limit.
After great delay and emotional stress Ms. Daniels settled with the doctor for far less then the policy limits. Her Louisville personal injury lawyer, Hans Poppe then filed a suit against AP Assurance directly for their bad faith in settling the insurance claim and in violation of the Kentucky Unfair Claims Settlement Practices Act. Mr. Poppe hired Ken Friedman to try the case as Mr. Poppe would have to be a witness against the AP Assurance. At trial, it became apparent that the policy in handling cases used by AP Assurance was designed to pay less to the injured person and push claims to trial rather than settlement.
The jury saw the bad faith in handling insurance claims used by AP Assurance. They awarded Ms. Daniel $350,000 in compensatory damages as well as $3,479,277 in punitive damages. The amount of punitive damages is the exact amount the claim adjuster was told to cut from her claims in 2006. This sends a message to insurance companies in Kentucky that they are required to use good faith and fair dealings in handling valid claims.
