Argonaut Hit With $14 million Verdict

The Los Angeles Daily Journal has reported a $14,678,090 'bad faith' verdict against Argonaut Insurance Co. for the denial of a workers' compensation claim due to lack of coverage. Argonaut wrote a labor leasing policy for Builder's Staff. An employee of the lessee, Diamond Woodworks, suffered a serious injury. Argonaut denied the claim on the basis that the employee lease-back paperwork for the injured worker had not been completed as of the time of the injury and, therefore, he was technically not an employee of Argonaut's insured. Argonaut 'refused to defend' Diamond Woodworks agains...