Justices: Bad-Faith Action Needs Proof of Claim Denied

The South Dakota Supreme Court dismissed a bad-faith action against a workers' compensation insurer because there wasn't any proof it wrongfully denied benefits. Construction worker Wynette Hein injured her back in October 2002. As a result of her injuries, she underwent back surgery. Acuity, as her employer's workers' compensation insurer, paid Hein medical and disability benefits. However, Hein was unable to return to her job as a construction worker and she sought rehabilitation benefits for retraining, but Acuity denied her request. Hein then appealed to the Department of Labor for the...