Written by AMLO.

MFTL wins third-party bad faith case.

Wiles v. Medical Protective Company

Kenton County, KY (2009)

This was a third party bad faith case against The Medical Protective Company. The underlying case was an inner ear injury that occurred when a family doctor, while doing an ear lavage to remove earwax, failed to see that the needle was properly affixed to the syringe. As a result the needle disconnected when he squeezed on the plunger, shooting the needle into the lady's ear causing permanent balance problems, tinnitus and nausea. Medicals climbed to $120,000 with three surgeries which all failed to give her any relief.

MedPro waited for 2 years and 4 months, (right before trial) to offer their initial offer of $500,000. All along, the plaintiff's attorney, Terry Moore had been requesting the $2 million in policy limits. When he got the lowball offer of $500,000, Terry moved up, temporarily to $2.2 million in his demand. He later came down, the parties reached a HI-Lo agreement, and the case was arbitrated, by agreement, to a $1.65 million arbitration award.

The $2,500,000 award was the 2nd largest Kentucky bad faith verdict, excluding verdicts reversed on appeals.

The bad faith case then got going and MFTL took over for Terry, who became a witness. Interestingly, the judge struck all expert witnesses (4 in total). The only experts to testify were on the lack of claims processes (standards missing but financial incentives present). The underlying lawyers all testified about what they did and why they did it. Notably, Andy Busald testified because he had been hired by the defendant doctor to try to push the Insurance company along towards settlement. He described, in his testimony, the lowball offer of $500,000 as "bait."

The jury found violations of 5 of the UCSPA subparts. They awarded $350,000 in compensatory damage and 2.2 million in punitives