Denver Jury Awards Record $145M in Workers’ Comp Bad Faith Case Against NorGUARD Insurance
Claggett & Sykes secured a record-breaking jury verdict in a workers’ compensation case against NorGUARD Insurance Company, a subsidiary of Berkshire Hathaway. The $145,260,000 verdict follows a trial over the insurer’s bad faith denial and delay of workers’ compensation benefits for a plaintiff who suffered a traumatic brain injury on the job.
The result marks the largest bad faith verdict in US history and one of Colorado’s largest personal injury verdicts.
Background on the case
The plaintiff was working, painting apartment complexes when he suffered a traumatic brain injury that required inpatient treatment. The insurance company denied the claim and delayed benefits. NorGUARD refused to authorize much-needed treatment for the plaintiff’s inpatient care for his brain injury, resulting in lasting harm to the plaintiff and delaying his recovery.
The legal case
Claggett & Sykes Trial Lawyers took on the case, with Sean Claggett, Alicia Campbell, Geordan Logan, and Jim Murphy leading the trial team. Brad Irwin of Irwin Fraley PLLC and Micah Echols, an appellate attorney from Claggett & Sykes Trial Lawyers, supported the efforts. During a seven-day-long trial, the team fought to highlight the impact of the insurer’s bad faith.
The result was a $145,260,000 verdict in favor of the plaintiff. The award sets a new precedent for bad-faith workers’ compensation claims. It also sends a strong message to insurers about their need to abide by their legal and ethical obligations to workers.
Sean Claggett spoke about the importance of the case outcome, saying, “This verdict sends a clear message… If you delay treatment or prioritize profit over people, there will be trial lawyers like me ready to take on your case and fight for justice.”
About the legal team
Claggett & Sykes Trial Lawyers represents clients nationwide from our Las Vegas and Reno offices. We handle cases involving personal injuries, medical malpractice, insurance bad faith, and group home/residential abuse. In addition to these record-breaking results, our trial attorneys secured the largest jury verdict in New Mexico ($485 million). Our successes have helped us earn a strong national reputation.
What is workers’ compensation bad faith?
Bad faith claims happen when an insurer unreasonably denies or delays benefits for someone covered by their policy. It may also involve the failure to investigate or respond promptly to claims filed by their insureds. There are reasonable grounds to deny or delay payment on claims, such as if the accident didn’t happen at work or if the injured person missed deadlines for reporting their injury. However, some bad faith claims might involve:
- Denials without valid reasons
- Offering to pay less than the claim is worth
- Threatening the injured person
- Not communicating with the client
- Misinterpreting policy language to avoid having to make payments
- Unreasonably delaying payments
When an insurer denies a claim in bad faith, the consequences can be devastating for the injured individual. If the person can’t receive their benefits, they might not be able to get the treatment they need. Delaying treatment can lead to worse conditions and higher costs for medical care. Improper denials can also put families in dire financial situations as income dries up while medical expenses begin to come in.
Without aggressive legal representation for injured workers who receive wrongful denial of benefits, insurers would get away with denying valid claims. The insurance company’s goal is to minimize the amount they must pay, and lawsuits are one tool that helps hold them accountable when they violate the terms of their policies.
How a trial lawyer can help
For injured workers who face claim denials, having a legal representative can make all the difference. An attorney will have experience with the process and system, which makes filing a strong claim easier. Hiring a firm with a dedicated, aggressive track record would be even more beneficial. Insurance companies are more willing to negotiate in good faith when they know your legal advocate is willing and prepared to take them to trial. Selecting a seasoned trial lawyer is one of the best ways to protect your rights.
Contact Claggett & Sykes
We’re proud of the work our trial team did on this case. Insurers need to be held accountable so that workers who suffer injuries receive the benefits they are entitled to. The outcome of this case proves that juries understand how vital workers’ compensation benefits are to a person who suffers workplace injuries and to that person’s family.
If you were injured at work or because of someone’s negligence, you need to protect yourself by hiring a strong, dedicated legal advocate. Contact Claggett & Sykes today to schedule a free consultation with one of our experienced workers’ compensation trial attorneys. We’re ready to fight for you.
