Summary: Insurer failed to timely pay on Med Pay coverage as required by statute. Plaintiff entitled to jury trial on her claim for emotional distress and costs of bringing suit against insurer.
Marie Chery v Metropolitan Property and Casualty Insurance Company, 2011 WL 2348275 (Mass.App.Ct.)
The plaintiff was injured in an auto accident and incurred medical expenses. She sought a medical expense payment from the insurer of the vehicle in which she was a passenger. After the insurer failed to pay the bills within the time prescribed by the statute, plaintiff brought suit alleging that the insurer, Metropolitan, had committed unfair insurance settlement practices in violation of a Massachusetts statute. Six months after suit was filed, Metropolitan paid the outstanding medical bills, moved for summary judgment and summary judgment was granted. The appellate division affirmed. This appeal followed.
Metropolitan argued that even though it had violated the statute by not promptly paying plaintiff’s medical bills, Cherry was unable to show any injury or loss related to the violation. The court reversed finding that the plaintiff had arguably been damaged in two ways: (1) she had to file suit when Metropolitan failed to pay her claim even though liability was clear and; (2) she had made a claim of emotional distress relating to stress over filing suit and her creditworthiness. The case was remanded for a jury trial.
This decision shows, not surprisingly, that appellate courts are reluctant to let insurers off when they have violated state statutes.
