Liberty Mutual Takes a Hit in Court
By Robert Warne - July 25, 2003 Some aggressive work comp claims adjusting has ensnared Liberty Mutual in a civil mess, regardless of exclusivity. On June 23, a California Appeals Court opened the door for plaintiff, Freddie Mosby to sue Liberty Mutual for its malicious prosecution of him on alleged insurance fraud charges.
Mosby worked for Best Buy in 1997 when some merchandise on a forklift fell on him and injured his neck, shoulder and back.
He cooperated and went to the doctors Best Buy and Liberty Mutual recommended. They all concurred that Mosby was injured and that his injuries were consistent with his accident.
But two of these doctors made devastating racial comments against Mosby, so he opted to see his own doctor.
Best Buy, contacted Robynn Vannatta, the examiner handling Mosby’s claim, and recommended that he should be put under surveillance.
Vannatta called Mosby’s doctor’s office and told the receptionist that Mosby was a liar and also claimed that the sign-in sheets at the doctor’s office were false, even though surveillance video proved otherwise.
The case was then prepared for submittle to the Orange County District Attorney, despite the fact that there wasn’t a medical report that disputed Mosby’s injury. Vannatta even went so far as to change Mosby’s status to, “permanent and stationary” from “temporarily disabled,” to make it more likely that felony charges against Mosby would stick.
Mosby was arrested February 19, 1999 for work comp fraud, but after a preliminary hearing, the DA dismissed the case.
Mosby immediately turned around and sued Liberty Mutual and Best Buy in Orange County Superior Court for malicious prosecution and loss of consortium.
The defendants pled that the complaint as filed was not sufficient to require an answer. The judge agreed and dismissed the charges. Mosby then appealed Judge H. Cannon’s ruling.
The appeals court went easy on Best Buy and ruled in its favor because the company never stepped out of its role as an employer in the workers’ compensation claims process.
But Presiding Justice David K. Sills verbally slapped Liberty Mutual around and opened the door for Mosby’s suit against the company. In his decision, Sills said the carrier stepped outside of role an insurer and took on the persona of “bad cop.”
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