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States Split over How to Handle Bad-Faith Claims against Comp Carriers

By Sherri Okamoto (Legal Reporter)

Tuesday, February 24, 2015 | 0

A paraplegic truck driver earlier this month received an award of $25 million in punitive damages from an Iowa jury, payable by his former employer's workers' compensation carrier for its bad-faith handling of his claim. The carrier's mistakes wouldn't have been so costly if, say, the case was in neighboring Nebraska. In the Cornhusker State, the carrier wouldn't have faced civil liability for its actions because Nebraska is among the states that say common-law bad-faith actions are barred by the exclusivity provisions of worker's compensation. Iow...

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