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Bad Faith Health Insurance Suit against Pan American Life Insurance Remanded Back to Proper Jurisdiction, Harris County

On December 22, 2011, Doyle LLP filed suit in the 151st District Court of Harris County, Texas, against Pan American Life Insurance Company (“Pan American”) and its third-party claims administrator for their bad faith denial of health insurance benefits.  Since the time of filing, litigation has endured numerous procedural delays due to defendants’ attempts to escape proper venue.

In the Summer of 2011, our client was diagnosed with cutaneous melanoma in her lower abdomen. Following this disheartening finding of cancer, she sought treatment with medical professionals in Houston, Texas, and made a claim for benefits with Pan American. The insurance company, assisted by a third party administrator, fraudulently delayed the claimant’s health insurance claim while rejecting the opinions of her doctors and the evidence that she presented to support her claim. Sadly, our client lost her battle with cancer in 2012. The wrongful denials and resulting lack of medical treatment ultimately led to this tragedy.

Pan American, along with the claims administrator, are from Louisiana, and sought to remove the case to Federal Court asserting that there was complete diversity. However, the insurance lawyers of Doyle LLP also held Specialized Collection Systems, Inc., liable, as this Texas collections agency threatened and harassed our client for outstanding debts that Pan American is legally obligated to pay. The defendants’ responded with motions asserting Specialized Collection was improperly joined in this cause, but after a year’s time, the courts ruled otherwise .

A federal district court in Houston held that the defendants’ failed to demonstrate that joinder of Specialized Collection was improper and remanded the case back to the 151st District Court of Harris County, Texas.

The health insurance bad faith lawyers of Doyle LLP will proudly continue fighting for this client and her family in seeking justice for the bad faith actions of Pan American and the various entities which assisted their improper actions.