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Judge Rejects Adjuster’s Attempt to Escape Liability in Arizona Worker’s Comp Bad Faith Claim

A federal judge in Arizona has denied Sedgwick Claims Management Services, Inc.’s (“Sedgwick”s), motion to dismiss a lawsuit filed against the adjusting company for aiding and abetting the actions of Ace American Insurance (“Ace”). Sedgwick was the adjuster and third party administrator assigned by Ace to handle and process the plaintiff’s claim.

While at work, our client suffered a severe head injury, causing her to enter a comatose state. After a claim was filed, Sedgwick admitted coverage, but grossly underpaid and ignored repeated requests to correct the amount. Even after acknowledging improper payment and orders from The Industrial Commission of Arizona to pay owed benefits, no reimbursement occurred. The delays and intentional underpayment continue to cause immense financial, physical, and emotional damage.

Doyle Dennis Avery LLP filed suit against Ace for breaching the duty of good faith and fair dealing in the way the claim was handled by Sedgwick. Also, suit was filed against Sedgwick, and its individual employee, for promoting and furthering the illegal conduct of Ace. The lawsuit also asserts that Ace and Sedgwick intentionally inflicted emotional distress on our client.

The court’s ruling confirms that all parties assisting in an insurance agency’s improper claim handling will be held individually accountable for their actions.

Obtaining this favorable determination required more than just an understanding of Arizona insurance law. The worker’s compensation bad faith lawyers of Doyle Dennis Avery LLP have a proficiency in this area and are recognized for striving for success in Arizona workers compensation bad faith claims. If you or someone you know has been mistreated by an Arizona workers compensation insurer, a firm that can strategically fight for your relief is needed. Contact our office today for assistance.