Well that's what two of their policy holders think. Arizona bad faith insurance lawyer, Shane Harward recently sent me the details of a bad faith insurance case he successfully resolved. The case involves Nationwide insurance and highlights the poor treatment that two policy holders received from them..."At the beginning of a long awaited family trip to Idaho in September of 2006, Ms.
Laux and her mother, Ms. Brown, were the victims of a high-speed, hit-and-run collision. Ms.
Laux and Ms. Brown were forced to file an uninsured motorist claim with their insurance company, Nationwide Insurance Company of America / Allied Insurance Company. Based upon Ms.
Laux's and Ms. Brown's experience, it was their opinion that the advertising slogan of "Nationwide on Your Side" may be an effective marketing campaign with no substance when a valid claim is attempted to be resolved by those who pay premiums to Nationwide Insurance Company.
Just a few miles from the Phoenix, Arizona (Sky Harbor) airport, a vehicle traveling approximately 90-95 miles per hour smashed into the back of Ms.
Laux's and Ms. Brown's vehicle, and fled the scene of the collision. Ms.
Laux's vehicle suffered over $10,000.00 in property damage and both Ms.
Laux and Ms. Brown were injured. Because this family trip had been planned for several months and was extremely important for not only Ms. Brown, but her daughters (Ms. Brown had two daughters besides Ms.
Laux) as well, Ms.
Laux and Ms. Brown attempted to continue on with the family trip as planned. Shortly after arriving in Idaho, because the pain became so severe, Ms.
Laux and Ms. Brown sought treatment at an Idaho Urgent Care facility. At that time, Ms.
Laux's main problem was noted as neck and low back pain. Ms. Brown suffered from pain in her neck, back, and right shoulder. The Urgent Care doctor prescribed anti-inflammatory and pain medication for both Ms.
Laux and Ms. Brown and instructed them to follow up with their primary care physician when they returned home to Arizona. Ms.
Laux and Ms. Brown followed up with their primary care physician at the Mayo Clinic and Hospital. Ms. Brown suffered from severe low back pain for over two years and tried multiple rehabilitative efforts including therapy, modalities, manual techniques, exercise instruction, and SI joint injections. Ms. Brown to this day continues to suffer from severe low back pain which at times radiates down her right side. Ms. Brown incurred approximately $6,000 in medical expenses because of treatment related to this incident.
Prior to this collision, Ms. Brown was an extremely healthy, active, and independent 82-year old mother, grandmother, and great-grandmother. Sadly, Ms. Brown not only lost her health and activity, but her independence. Ms. Brown regularly volunteered at a local elementary school and assisted one of the first grade teachers. This volunteer work was incredibly important to not only Ms. Brown, but also to all the children. Following the collision, Ms. Brown tried to assist with her first-grade class but was unable to do so because of the severe back pain.
Ms.
Laux suffered from cervical pain, pain in the mid to low thoracic area, and increasing pain and instability to her left knee. Ms.
Laux had extensive treatment including prescription medication, physical therapy, and two surgeries on her left knee. Ms.
Laux incurred approximately $38,000.00 in medical expenses because of the treatment related to this incident.
Nationwide Insurance Company assigned adjuster Courtney Martin to handle the uninsured motorist claim. Nationwide refused to consider the injuries to Ms.
Laux's knee as part of the claim. Nationwide also refused to explain the factual or legal basis for its position and during the claim, Ms. Martin misrepresented conversations she had with Ms.
Laux and Ms. Brown.
On November 28, 2007, Nationwide offered Ms.
Laux $8,190.00 to settle Ms.
Laux's injury claim and $6,194.00 to settle Ms. Brown's injury claim. Ms. Martin represented that these offers were based, at least in part, on Nationwide's use of a nurse practitioner evaluation. Despite multiple requests, Nationwide refused to put the factual and legal basis for its evaluations in writing and refused to disclose the nurse practitioner report upon which it apparently relied. Instead, on February 26, 2008, Nationwide increased the offers to $12,660.36 for Ms.
Laux and $9,471.46. Again, Nationwide refused to disclose to its insureds the basis for these offers and its change in position. Thus, Ms.
Laux and Ms. Brown were forced to request arbitration pursuant to their insurance contract with Nationwide Insurance Company.
Ms. Laux and Ms. Brown requested arbitration on March 12, 2008, but Nationwide did not provide the name of its attorney until June 9, 2008 or its arbitrator until June 16, 2008. As part of the arbitration process, Nationwide hired a well-known defense medical examiner, Dr. Ronald Lampert, to examine and issue a negative report against Ms. Laux. Dr. Lampert issued his standard report calling Ms. Laux a "symptom exaggerator." Dr. Lampert testified on behalf of Nationwide during the arbitration hearing. Dr. Lampert claimed to have performed testing on Ms. Laux that the arbitrators determined did not take place during his examination. Luckily, the examination was videotaped.
Interestingly, a couple days prior to the scheduled arbitration hearing on October 23, 2008, Nationwide presented, once again without any explanation as to the change in its evaluation, an offer that was nearly twice what it had previously offered on these claims. The arbitration was completed on October 23, 2008.
Ms. Brown was awarded $106,000.00.
Ms. Laux was awarded $163,000.00.
In addition, Nationwide Insurance Company paid $30,000.00 and $55,000.00 respectively for extra-contractual, insurance bad faith damages."
Did You Know??? Shane Harward is an avid Frisbee golf player
Congrats to Beale, Micheaels & Slack and designer Shannon Thompson for winning the Arizona Legal Design of the Month for February! The understated yet elegantly designed personal injury site narrowly edged out Snyder & Wenner's nursing home abuse site.
