Attorneys Eric Hayes and Sean Abernathy were able to successfully defeat a penalty claim initiated by a claimant and her attorney. In support of the alleged penalty claim, the employee testified that because her settlement check was late, she was entitled to several thousands of dollars in penalties. Buttressing the theory that she was entitled to a large penalty were images of the envelop eventually delivered to her by US mail carrying the settlement check. The envelope had “date stamps” showing when it was processed by various mail facilities. The employee’s theory was that the employer/insurer could have manipulated the envelope’s date stamps in an effort to cover up its “negligent” actions in issuing the check late. However, the court disregarded those theories as unpersuasive, relying in part on the testimony of the adjuster who credibly testified about the process of issuing settlement checks, documentation showing accurate payment timeframes and proof that all the other settlement checks to interveners were sent and received timely. The court denied all penalty claims in their entirety for Eric and Sean’s client.
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