Recently, after a hard fought battle, Ewing Anderson Attorneys Steve Hughes and Kent Doll obtained a jury award on behalf our client, the Estate of Frank Madden, against Medico Insurance Company for violating the Insurance Fair Conduct Act (IFCA) and committing insurance bad faith.
In the late 1990s and early 2000s, Frank Madden purchased two long-term care policies that provided benefits to Frank if he moved into an assisted living facility. On November 18, 2009, Medico certified Frank Madden to receive benefits under the two long-term care policies. The certification was based on the opinion of Frank’s primary care physician and Medico’s own IME nurse. In reliance on Medico’s certification, Frank moved into an assisted living facility, fully expecting that his expenses would be paid by Medico. Frank was 90 years old at the time.
However, four months later, Medico decertified Frank and claimed that he misrepresented his care needs and attempted to commit insurance fraud. Medico based its denial on a statement from one nurse at the assisted living facility who alleged that Frank was mostly independent and did not need care. Other than a phone call to the assisted living director, no other investigation was conducted by Medico. Everyone who knew Frank was shocked.
Frank was subsequently evicted from his assisted living facility because he could not pay the rent. Frank and his son Kevin came to our firm and asked for help; Steve and Kent saw a clear injustice and filed suit against Medico on his behalf. Unfortunately, Frank Madden passed away one month after suit was filed.
On October 18, 2011, a Spokane jury found that Medico violated IFCA and committed bad faith when it unreasonably denied Frank Madden’s claim for benefits under the two long-term care policies. The jury awarded the Estate of Frank Madden $92,200 in economic and noneconomic damages. On December 12, 2011, Judge Salvatore Cozza of the Spokane County Superior Court entered judgment against Medico for $330,000, which included attorney fees, costs, and punitive damages.
Frank can now rest in peace knowing that justice was done.