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Pott. County jury awards injured truck driver $25-million

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February 19th, 2015 by Ric Hanson

A Pottawattamie County jury has awarded a former semi truck driver $25 million in punitive damages in a civil case filed against his workers compensation insurance company. According to the Daily NonPareil, 37-year old Toby Thornton, of Monona, was paralyzed from the chest down in a semi crash in June 2009. At the time, he was an employee of Clayton County Recycling. American Interstate Insurance Company of DeRidder, La., the recycling company’s insurance provider, delayed and fought paying worker’s compensation benefits for years after the accident, denying Thornton was disabled and leading to the civil suit. The jury found that American Interstate Insurance acted in bad faith in its dealings with Thornton.

According to the initial civil suit filed by Thornton, the man started at Clayton County Recycling in March 2008 and spent about 70 hours per week on the road, driving a tractor-trailer. Thornton picked up scrap metal from salvage yards and other locations throughout Iowa and Wisconsin, returning the scrap metal to the recycling center for processing. While on the road on June 25-26, 2009, Thornton was involved a wreck that left him paralyzed.

After the wreck, Clayton County Recycling fired Thornton, who began receiving Social Security disability benefits in December 2009. Iowa law allows flexibility in choosing what jurisdiction to file for workers compensation benefits, according to Karen Keeler with Omaha law firm Erickson Sederstrom, which represents Thornton. With both his attorney and a brother in Omaha, Thornton filed for benefits in Pottawattamie County.

The move established Pottawattamie County as the jurisdiction in all matters moving forward in the case. In his petition that American Interstate Insurance acted in bad faith in its dealing on the matter, Thornton asserted the insurance company accepted his workers compensation claim but did not voluntarily begin making payments. With the company not paying disability benefits, Thornton pursued litigation with the Iowa Industrial Commissioner to obtain his benefits.

Thornton filed a petition for benefits in May 2012 before the Iowa Workers Compensation commissioner, seeking benefits under the Iowa Workers Compensation Act. American Interstate Insurance denied Thornton’s assertion that he was permanently and totally disabled, saying the Monona man could still work. The commissioner found that Thornton was disabled and ordered the company to pay out benefits. American Interstate appealed the decision.

The civil suit called the company’s numerous appeals and delays “particularly reprehensible in light of the fact that it is undisputed that Mr. Thornton is permanently and totally disabled and suffers from catastrophic injuries, including the loss of his extremities and extreme depression.” The jury awarded Thornton $284,000 in damages, along with the $25 million in punitive damages.

Defense attorney Melvin Hansen said an appeal is likely.