Chiropractor asserts insurance carrier destroyed his repu...
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1 ADVERTISEMENT Manage HOME your account Log NEWS in/register OPINIONS PRACTICE AREAS RESOURCES EVENTS Home SPECIAL > Verdicts SECTIONS & Settlements > Chiropractor asserts insurance carrier destroyed his CLASSIFIEDS MILWSubscribe Search for opinions, news and archives 1. reputation ADVERTISING CONTACT US Chiropractor asserts insurance carrier ABOUT US ALERTS destroyed his reputation Report filed erroneously to data bank leads to lost business, canceled policy POSTED: 12:34 PM Friday, March 30, 2012 BY: Michigan Lawyers Weekly Staff TAGS: Breach of contract, Dr. Micheil Hanczaryk, failure to honor good faith duties, Genesee County Circuit Court, Geoffrey Neithercut, Lawrence Acker, Loyst Fletcher Jr., Melvin Schwartz, Podiatry Insurance Co. of America, tort of false light invasion of privacy A Genesee County jury awarded Dr. Micheil Hanczaryk and Bristol Chiropractic Centre nearly $7 million on claims of breach of contract; negligence pertaining to information communicated to others; failure to honor good faith duties; and tort of false light invasion of privacy against Podiatry Insurance Co. of America (PICA). PICA had assigned an attorney to represent Flint-based Hanczaryk in a chiropractic-malpractice claim. Through a combination of errors, the attorney failed to timely file an affidavit of meritorious defense, in addition to a timely motion for reconsideration and application for leave to appeal. The plaintiffs asserted that the attorney, with the help of PICA, reported misleading information in order to justify settlement of the claims. Plaintiffs also contended that the insurance adjusters failed to properly manage the case file by not securing appropriate cause and damage testimony to assist in defense of the case; refused to replace the attorney on file; engaged in concealment regarding their actions; and forced plaintiffs to settle after threatening to invoke non-cooperation and unreasonably withholding settlement authority clauses. 1 of 5 4/10/12 9:25 PM
2 In addition, PICA was accused of filing an erroneous report with the National Practitioner Data Bank against Hanczaryk, adding insult and harm to his reputation; firing him from his position on a national advisory board that PICA controlled, resulting in adverse publicity that harmed his consulting business; and cancelling his policy of 21 years without cause. Defendants argued that Hanczaryk consented to the malpractice settlement; that PICA was ready, willing and able to go to trial for the malpractice claims if Hanczaryk had wanted; and that PICA was only doing what it thought would be in Hanczaryk s best interests and what Hanczaryk wanted it to do. In calculating present and future damages, the jury awarded through 2014, the year that Hanczaryk would be of retirement age. They were broken down as $178,669 for damages to Bristol Chiropractic Centre through present day; $229,549 for business losses through 2014; $3.718 million for lost reputation and emotional damages through present day; and $2,861,400 for lost reputation and emotional damages through Legal malpractice claims that plaintiffs filed against the attorney who was assigned to represent Hanczaryk in the malpractice claim were settled confidentially. Types of actions: Breach of contract, negligence, failure to honor good faith duties, tort of false light invasion of privacy Type of injuries: Financial, reputation Name of case: Hanczaryk, et al. v. Podiatry Insurance Co. of America, et al. Court/Case no./date: Genesee County Circuit Court; NM; March 6, 2012 Tried before: Jury Name of judge: Geoffrey Neithercut Verdict amount: $6,987,688 Most helpful experts: Dr. Solomon Cogan, chiropractor and chairman of the Michigan Department of Chiropractic, Farmington Hills; Connie Houin former risk manager/general counsel for St. John Health System, Grosse Pointe; William King, economist, Lansing Insurance carrier: Podiatry Insurance Co. of America Attorneys for plaintiff: Loyst Fletcher Jr., Lawrence Acker Attorney for defendant: Melvin Schwartz Key to winning: Experts ability to break down financial and loss-of-reputation damages RELATED JUDICIAL PROFILES Neithercut, Geoffrey L. 2 of 5 4/10/12 9:25 PM
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