Lawsuit Filed Against Commerce and Industry Insurance and AIG Claims for Worker’s Compensation Bad Faith Actions

Doyle LLP files worker’s comp bad faith lawsuit against Commerce And Industry Insurance Company (“Commerce and Industry”), AIG Claims Inc., (“AIG”), and the assigned claims adjuster for depriving the plaintiff benefits owed after his on-the-job injury.

Our client was a committed commercial truck driver for Western Dairy Transportation. On September 28, 2012, after pulling his trailer across a trucking scale and starting to exit, he felt a profound punching pain in what felt like his kidney. Our client was later diagnosed with severe spinal damage in the form of a left-sided herniated.

Upon receiving our client’s worker’s comp claim, Commerce and Industry and AIG placed an adjuster in charge of processing the claim. Despite physicians noting the dire need of surgery, the defendants’ denied that the injury was work related, though clear documentation provided otherwise, including that of our client’s supervisor. The adjuster then filed a denial – called a Notice of Claim Status form – with the Industrial Commission of Arizona, Claims Division.  This improper denial resulted in all medical and income benefits coming to a halt.

In all, the defendants breached their duty of good faith and fair dealing by failing to conduct a reasonable investigation to ensure our client would receive the medical, financial, and other benefits entitled as a beneficiary of workers’ comp. The law requires that worker’s compensation insurers consider information favorable to the insured, and this includes accepting undisputed evidence regarding the claim. The defendant’s instead chose to create pretextual reasons to delay and deny payments to our client, engaging in “outcome-driven” approaches to cut costs.

After a lengthy and completely unnecessary administrative dispute of the improper denial, in March of 2014, the Worker’s Compensation Commission ruled in our client’s favor, ordering payment of all medical, surgical, and hospital benefits beginning from the date of injury. Though our client finally started to receive payments, even these were delayed, causing yet more stress and worry for him and his family.  As a result of the improper actions of the defendants, our client now has bad credit, cannot take out loans, had his vehicle repossessed by his bank, and is currently battling the foreclosure of his home. Also, due to more than a year of surgery delays, our client is no longer able to receive the surgery needed, which has caused him permanent impairment and harms.

Doyle LLP will continue to support this client in holding each defendant accountable for the financial, emotional, and physical damages caused by their unlawful actions. Our worker’s compensation professionals take pride in obtaining outcomes that liberate our clients from situations such as this one. If you have endured similar delays or denials of medical care, lost wages, and/or rehabilitation benefits, contact Doyle LLP for immediate assistance.