Justia Nebraska Supreme Court Opinion Summaries
Articles Posted in Insurance Law
Gridiron Mgmt. Group, LLC v. Travelers Indem. Co.
In 2007, Appellant purchased the assets of an indoor football team owned by Omaha Beef, LLC. In 2008, Appellant applied for workers' compensation insurance under the Nebraska Workers' Compensation Plan, arguing that it was entitled to a certain experience modifier (XMod), which is used when calculating the premium owed, because it was a new entity with no claims experience. The National Council on Compensation Insurance, Inc. determined that Appellant was a successor entity to Omaha Beef, and thus, the various XMods assigned to Omaha Beef for the relevant time periods must be transferred to Appellant. The director of the Department of Insurance affirmed. The district court affirmed, reasoning that Appellant was a successor to Omaha Beef and that the change in ownership resulted in the transfer of the workers' compensation rating for Omaha Beef to Appellant. The Supreme Court affirmed, holding that the district court did not err in finding (1) Appellant had the burden of proof to show there was no "change in ownership"; and (2) a "change in ownership" existed such that the XMod of Omaha Beef should be transferred to Appellant. View "Gridiron Mgmt. Group, LLC v. Travelers Indem. Co." on Justia Law
Shada v. Farmers Ins. Exch.
In 1996, Plaintiff was injured in an automobile accident with an underinsured driver. At the time of the accident, Plaintiff had an automobile insurance policy with Farmers Insurance Exchange (Farmers). In 2001, Plaintiff settled with the underinsured driver. In 2011, Plaintiff filed this action based on contract, alleging that her damages from the accident exceeded the coverage she received from the tortfeasor's insurer and that Farmers had failed to pay "sums available" for her benefit pursuant to her underinsured motorist coverage. Farmers responded by alleging that Plaintiff's action was barred by the statute of limitations or by laches. The district court entered summary judgment for Farmers, concluding that the limitations period commenced when Plaintiff settled with the tortfeasor in 2001 and that her claim was barred by the five-year contract statute of limitations. The Supreme Court reversed, holding (1) the district court erred when it determined that Plaintiff's action accrued upon her settlement with the tortfeasor; and (2) instead, the Court should have applied the Supreme Court's holder in Snyder v. EMCASCO that the action accrues upon the insurer's breach. Remanded. View "Shada v. Farmers Ins. Exch." on Justia Law
Holdsworth v. Greenwood Famers Coop.
Employee filed a petition for workers' compensation benefits for injuries he received during his employment with Employer. In accordance with Neb. Rev. Stat. 48-139(3), Employee entered into a lump-sump settlement with Employer and its workers' compensation insurance carrier. Pursuant to the statute, Employee filed a release in which he waived his rights under the Nebraska Workers' Compensation Act (Act) and discharged Employer from further liability arising from the injury. Employer paid the lump-sum amount forty-two days after the filing of the release. Employee subsequently sought and received a workers' compensation court order awarding a waiting-time penalty and attorney fees. The Supreme Court reversed, holding (1) a worker waives all of his rights under the Act when he files a release pursuant to the settlement procedures in section 48-139(3), including the right to penalties; and (2) therefore, a waiting-time penalty and the corresponding attorney fees cannot be imposed following a settlement reached under section 48-139(3). Remanded. View "Holdsworth v. Greenwood Famers Coop." on Justia Law
Hynes v. Good Samaritan Hosp.
In 2009, a registered nurse (Nurse) employed by Hospital commenced this action for workers' compensation benefits, alleging that as the result of three incidents with patients involving assault and sexual assault, she suffered from posttraumatic stress disorder (PTSD) and depression. The workers' compensation court found all three incidents occurred, held that Nurse suffered depression and PTSD as a result of the incidents, and that Nurse was permanently and totally disabled. The court awarded benefits accordingly. After Hospital appealed, it was discovered that the testimony of all Hospital witnesses who testified on behalf of Hospital could not be transcribed due to a failure of electronic equipment used by the court reporter. The Supreme Court vacated the judgment of the trial court and remanded for a new trial, concluding that, under the circumstances of the case, where the testimony of all Hospital witnesses had been lost due to no fault of either party, the Court could not undertake a meaningful appellate review of the assignments of error. Remanded for a new trial. View "Hynes v. Good Samaritan Hosp." on Justia Law
Beveridge v. Savage
Landlord and Tenant signed a lease agreement for a rental property that required Tenant to obtain a liability and renter's insurance policy at his expense. Tenants obtained a renter's protection policy of insurance. The house was later damaged by fire caused by a child using a lighter. Landlord's insurer (Insurer) paid for the loss. This subrogation action was brought against Tenants in Landlord's name. The district court dismissed the action, concluding (1) the lease provision requiring Tenant to obtain renter's insurance did not permit Landlord or Insurer to bring a subrogation action against Tenants; and (2) Tenants were coinsureds under Landlord's fire insurance policy, and Insurer could not subrogate against its coinsureds. The Supreme Court affirmed, holding that because the terms of the lease did not overcome the presumption that Tenant was coinsured under Landlord's fire insurance policy, Landlord and Insurer could not bring a subrogation action against Tenants. View "Beveridge v. Savage" on Justia Law
Smith v. Mark Chrisman Trucking, Inc.
Employee suffered an accident arising out of the course of his employment on October 23, 2007. Employee filed a workers' compensation action on February 28, 2012 against Employer, seeking relief under an amended version of Neb. Rev. Stat. 48-121(3), alleging that he was entitled to benefits calculated on the basis of the loss of earning capacity pursuant to this amendment. The Legislature specified that the operative date of the amendment to the statute was January 1, 2008. The workers' compensation court granted summary judgment for Employer, concluding that the amendment was substantive rather than procedural and that because Employee's accident and injuries occurred prior to the operative date of the amendment, Employee could not recover for a loss of earning capacity under the amendment. The Supreme Court affirmed, holding that because the amendment to section 48-121(3) did not apply to Employee's action, he could not recover for an alleged loss of earning capacity on that basis. View "Smith v. Mark Chrisman Trucking, Inc." on Justia Law
Pearson v. Archer-Daniels-Midland Milling Co.
Appellant was injured during the course of his employment with Employer. Appellant obtained a workers' compensation award that covered future medical treatment. Appellant subsequently underwent knee replacement surgery and sought a further award of benefits. The Workers' Compensation Court (WCC) denied the petition, finding that Appellant's knee replacement surgery was not established to be the product of the subject accident but, rather, was prompted by Appellant's preexisting degenerative knee condition. The Supreme Court affirmed, holding (1) the evidence provided sufficient competent evidence to support a finding that Appellant's knee replacement surgery was not the result of the work-related accident, and therefore, the WCC did not err in finding that Appellant's surgery was not compensable; and (2) in so holding, the WCC was not acting contrary to the original award but was enforcing the award's plain language. View "Pearson v. Archer-Daniels-Midland Milling Co." on Justia Law
Visoso v. Cargill Meat Solutions
Employee, an undocumented worker, was injured while working for Employer. Employee was awarded temporary total disability benefits. Employer later petitioned the workers' compensation court to discontinue the temporary benefits. While the action was pending, Employee returned to his county of origin. The compensation court concluded (1) Employer's obligation to pay Employee temporary total disability should cease because Employee had reached maximum medical improvement; and (2) there was no credible evidence which could be used to determine Employee's loss of earning capacity in his new community, and therefore, Employee's request for benefits for his claim of permanent impairment and loss of earning capacity was denied. The Supreme Court (1) affirmed the compensation court's conclusion that Employee had reached maximum medical improvement; but (2) reversed the denial of Employee's claim of permanent impairment and loss of earning capacity because where no credible data exists for the community to which the employee has relocated, the community where the injury occurred can serve as the hub community. Remanded. View "Visoso v. Cargill Meat Solutions" on Justia Law
VanKirk v. Cent. Cmty. Coll.
While in the course and scope of her employment, Appellant suffered and injury and incurred medical expenses. The Workers' Compensation Court ordered Appellant's employer (Employer) to pay the expenses. Employer made payments directly to Appellant's health care providers within thirty days of the court's order. Because she was not personally reimbursed for the medical expenses within thirty days, Appellant sought a waiting-time penalty, attorney fees, and interest pursuant to Neb. Rev. Stat. 48-125. The Workers' Compensation Court denied relief, and Appellant appealed. The Supreme Court affirmed, holding (1) because section 48-125 did not apply to Appellant's request for a waiting-time penalty, the compensation court did not err in overruling her motion for a waiting-time penalty; and (2) Employer in this case was not subject to liability for attorney fees, and therefore, Appellant was not entitled to an award of interest. View "VanKirk v. Cent. Cmty. Coll." on Justia Law
Walentine, O’Toole, McQuillan & Gordon, LLP v. Midwest Neurosurgery, PC
Law Firm represented Employee in a workers' compensation action against Employee's Employer. After a trial, Employee was awarded compensation, including medical expenses incurred by Employee with Medical Clinic. Employer paid sums owed to Medical Clinic pursuant to the award. Law Firm subsequently filed a complaint against Medical Clinic, seeking attorney fees under the common fund doctrine. Following a hearing, the district court dismissed Law Firm's complaint, concluding that Law Firm was not permitted to recover attorney fees from Medical Clinic under the doctrine. The Supreme Court affirmed, holding (1) the plain language of Neb. Rev. Stat. 48-125(2)(a) prohibits the charging of attorney fees against medical providers in workers' compensation court; and (2) the common fund doctrine may not be applied in this case to allow Law Firm a fee from Medical Clinic from the district court when it would not be entitled to such a fee from the workers' compensation court.
View "Walentine, O'Toole, McQuillan & Gordon, LLP v. Midwest Neurosurgery, PC" on Justia Law