McClure v. Country Life Insurance Company, C.C. Services, Inc. (dba Country Financial)

Sep 08, 2017

OUTCOME: Verdict for $6.5 Million

On September 8, 2017, a jury from the U.S. District Court of Arizona entered a verdict for over $6.5 Million against Country Life Insurance Company and CC Services, Inc., for bad-faith termination of t ... heir insured’s disability insurance claim. Country Life and CC Services are part of the Country Financial family of insurance and financial companies out of Bloomington, Illinois. The case is captioned McClure v. Country Life Insurance Company and C.C. Services, Inc. (both doing business as Country Financial) (Case Number: CV-15-2597-PHX-DLR). The claimant was in his early 40s when he suffered a traumatic brain injury and then developed severe depression leading to multiple hospitalizations for suicidal ideation. McClure’s disability insurance company, Country Life, approved payment of monthly benefits initially, but then unexpectedly terminated the claim a year later. It did so without gathering any of McClure’s treating physicians’ records for eight to nine months leading up to the claim termination. In its letter terminating benefits, Country Life told McClure that it had carefully reviewed extensive medical records and determined there was no evidence of any cognitive or mental health impairments. McClure was unaware that Country Life did not bother to gather or review recent medical records from his physicians, even those who had certified his disability. The termination of his benefits was financially and emotionally devastating to McClure and his family. McClure’s attorneys argued that Country Life took deliberate measures to terminate his claim, blatantly ignoring evidence that he was disabled. The Jury agreed, and found that the termination was done with an “evil mind” and with conscious disregard of the harm McClure would likely suffer. Following three weeks of hearing evidence, the jury deliberated over the course of two days and found Country Life and C.C. Services acted in bad faith and consciously disregarded the risk of harming its insured. The jury awarded $5 Million in punitive damages, $2.5 Million against each company.

Scottsdale Insurance Company v. Anthony Cendejas

Jun 19, 2009

OUTCOME: Upheld on Appeal (Published Decision)

This was a fire subrogation claim. Was able to win on summary judgment. Defendants appealed to Divsion 1. Court sided with the Plaintiff with a published decision: Scottsdale Insurance Company ( ... subrogee to Todd Andrews) v. Anthony Cendejas, TOPA, Inc., 2009 WL 530780, 551 Ariz. Adv. Rep. 17, Ariz.App. Div. 1, March 03, 2009 (NO. 1 CA-CV 08-0001), Designation of Non-Party at Fault, 2009 Case is seminal as for establishing that a defendant must properly identify non-party, with specific facts to support designation. Failure to comply with the statute and rule results in inability to designate non-party at fault.

JNS Holding Corp.

N/A

OUTCOME: Impacts Procedural Rules in Arizona

Ronald B. Joseph v. Metropolitan Life Insurance Company, 2009 WL 2782683 (D.Ariz. 2009)

N/A

OUTCOME: Remanded and Defendants Pay Attorney Fees

Case against Agent was not a sham or fraudulent joinder. Agent who helps to solicit, market, and service a disability insurance policy, and who then assists with a claim can be held jointly and severa ... lly liable with an insurance company that refuses in bad faith to pay a disability claim.