Provident Life and Accident Insurance Co. v. Harry J. O'Connor
Published: Apr. 15, 2000 | Result Date: Mar. 2, 2000 | Filing Date: Jan. 1, 1900 |Case number: SACV961213GLT Verdict – $623,280
Judge
Court
USDC Central
Attorneys
Plaintiff
Melissa M. Cowan
(Burke, Williams & Sorensen LLP)
Defendant
Robert K. Scott
(Newmeyer & Dillion)
Experts
Plaintiff
R. Bruce Moricca
(medical)
Defendant
Robert Krogh
(medical)
Gus Gialamas
(medical)
Facts
Harry J. OÆConnor, a Laguna Beach resident, filed a disability claim in February 1989 alleging total disability.
He claimed that he could not perform the duties of a real estate developer due to severe asthma. OÆConnor
represented that he was unable to perform physical labor on dusty job sites.
Through investigation, Provident found out that OÆConnor was performing duties he said he could not do.
Provident argued that OÆConnor was caught by Provident investigators on video tape engaging in activity on a
job site. The tape confirmed that he was significantly exaggerating his health restrictions. OÆConnor alleged
that the video surveillance showed him doing no activities which were inconsistent with his disability claim.
Provident filed a lawsuit seeking declaratory relief that OÆConnor was not disabled. The
suit also alleged that he submitted a fraudulent insurance claim, that the policy had lapsed, and
likewise sought restitution. OÆConnor filed a counterclaim for breach of contract, bad faith, RICO
violations, conspiracy, and punitive damages. However, the court granted ProvidentÆs motion for
summary adjudication and dismissed OÆConnorÆs tort claims.
Settlement Discussions
On Aug. 18, 1998, after the court had dismissed his tort claims, OÆConnor demanded $1.125 million. Provident made no counter-proposal.
Other Information
Provident was awarded $623,800 in benefits previously paid to him. Further, the jury also awarded Provident $800,000 in punitive damages. Judge Gary Taylor thereafter ruled that OÆConnorÆs policy had lapsed and that it was cancelled permanently. OÆConnor filed an appeal.
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