Hartford Fire Ins. Co. v Sedgwick Claims Mgt. Servs., Inc. 2021 NY Slip Op 30438(U) February 16, 2021 Supreme Court, New York County Docket Number: 653915/2015 Judge: Andrea Masley is a case concerning the failures at trial of a medical malpractice case, and how that can play out in different states.
“In this breach of contract action, plaintiff Hartford Fire Insurance Company (Hartford) seeks to recover a payment of $15 m ii lion from defendant Sedgwick Claims Management Services, Inc. (Sedgwick), asserting that Sedgwick breached its third-party administrator services agreement (Agreement) (NYSCEF Doc. No. [NYSCEF] 257, 1 Agreement) by its negligent administration of the action Garrick Calandra, as Administrator of the Estate of Genevieve Calandra v Radius Management Services, Inc., et al. (Civil Action No. MICV2011-02874D [Middlesex Superior Court 2011]) (Wrongful Death Action.) Sedgwick’s negligence allegedly exposed Hartford to treble damages in a subsequent federal action for failure to “effect prompt, fair and equitable settlements of claims in cases where liability is reasonably clear …. ” (NYSCEF 238,
Verified Complaint~ 66.) ”
“The factual background is set forth in this court’s decision denying Sedgwick’s summary judgment motion and will not be repeated in detail here. (NYSCEF 188, Decision and Order.) To summarize, Genevieve Calandra died at age 91 on August 16, 2008. (NYSCEF 238, Complaint~ 25.) In addition to a variety of health problems, after falling from her wheelchair, Calandra was taken from the insured nursing home (Insured) and hospitalized. (Id.~ 61.) Calandro’s Estate, represented by David Hoey, Esq., filed the Wrongful Death Action on August 16, 2011. (Id.~~ 26-27.) Sedgwick’s claims manager, Mary Blair, hired Lawrence Kenney, Esq. to represent the Insured in the Wrongful Death Action. (Id.~~ 30, 32.) On July 21, 2014, the jury returned a verdict of $1,425,000, $675,000 for pain and suffering and $750,000 for wrongful death, as well as punitive damages of $12,514,605 upon a finding of gross negligence. 3 (Id.~ 71.)
On September 30, 2014, the Calandra Estate demanded $40 million from Sedgwick and Hartford for purported bad faith and unfair trade practices for a failure to settle for which treble damages could be awarded under Massachusetts law. (NYSCEF 192, Estate’s 93A Demand Letter.)5 On November 20, 2014, Hartford settled the 93A Action for $15.9 million. 6 (NYSCEF 238, Complaint~ 85). On December 5, 2014, the Estate filed its action against Sedgwick (93A Action). (NYSCEF 191, Winget aff ~ 9; see also NYSCEF 214, Calandra v Sedgwick, 2017 WL 5593777 [D Mass 2017] [Civ Act. No. 15-10533].) Sedgwick offered to settle for $1.9 million, the amount of the compensatory damages and interest (NYSCEF 198, 93A Action Statement of Fact ~16).
However, there was no settlement with Sedgwick, and the matter proceeded against it.”
There is much further detail to read about, so read on in the case.