Category Archives: Workers Compensation Bad Faith

On February 22, 2010, Doyle Dennis Avery LLP filed suit in district court in Harris County, Texas against Zurich American Insurance Corp. and its adjuster related to their handling of an injured worker’s claim for worker’s compensation benefits. In this case, the injured worker received multiple reports from neutral state appointed doctors supporting the worker’s claim for benefits that the carrier and its adjuster refused to accept. The injured worker was forced to hire counsel and receive an order from the Texas Department of Insurance requiring Zurich to pay the long sought after benefits. Unfortunately, the many month delay caused significant financial and emotional damages for which this worker and his family are still fighting to overcome.

Doyle filed a lawsuit against American Home Assurance Corporation, Gallagher Bassett, and an adjuster for insurance code violations, insurance bad faith, and for violating the DTPA. Doyle’s client, a Continental Airlines ramp worker, was underpaid income benefits in a delay period exceeding 16 months. This wrongful denial of benefits over this extensive delay period have caused significant damages to this client and necessitated taking legal action on his behalf.

Doyle, along with attorney David Spradlin of the Law Offices of David Spradlin, filed a defense yesterday for injured water plant worker Eric Hamic. Mr. Hamic injured his spine working for Hays Utility Service Corp. in September 2007, and its workers’ compensation insurer, Zenith Insurance Company, wrongfully denied insurance benefits to treat his injuries. After lengthy delays, the Texas Department of Insurance eventually ordered Zenith to finally pay for the necessary benefits. Unfortunately, Zenith Insurance has sued Mr. Hamic to attempt to avoid paying in accordance with the order of the State. Doyle agreed to defend Mr. Hamic against this suit by his own insurance company.

Today Doyle filed a lawsuit against Liberty Mutual Fire Insurance Company and and its adjuster for insurance code violations, insurance bad faith, and for violating the DTPA. Doyle’s client, a security guard for Smith Protective Services, had her entire claim denied because Liberty Mutual claimed that she was employed by a company that did not have workers’ compensation coverage for its employees, even though every facet of her employment was controlled by Liberty Mutual’s insured Smith Protective Services. Because of the wrongful denial, income and medical benefits were denied for over eight months. As a result, the suit was filed to recover the economic, psychological and physical damages she suffered as a result of delayed payment of benefits.

In a disappointing decision, the Fifth Court of Appeals in Dallas let Texas Mutual off the hook for altering a medical record. The decision is Texas Mutual Insurance Company v. Juan Narvaez.