Birmingham, Alabama


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Chrissie Cole
Chrissie Cole
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Jury Awards Man $10M in Insurance Bad Faith Suit

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A Federal Jury awarded a man $10 million in a ruling that decided his employer’s insurance carrier acted in bad faith when they denied his claim for benefits from a 1999 back injury.

The jury is still deciding whether to also award the man with additional compensation for punitive damages.

Court records show the worker was a computer technician at Norwest Financial when he injured his back while bending over to pick up papers that had dropped to the floor and were blowing around. Doctors diagnosed him in severe pain, but the lawsuit claimed that Travelers Insurance Company had denied his workers compensation claim.

Insurance adjusters contend he had a history of back problems that include at least two prior surgeries. They said the injury worsened his already existing condition.

The $10 million judgment was to compensate for his emotional distress and pain and suffering for what the jury found was insurance bad faith denial of his medical assistance claim.