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Jury awards motorist $1.25 million in lawsuit against insurance company By ROBERT BOCZKIEWICZ THE PUEBLO CHIEFTAIN DENVER - A jury last week awarded a paralyzed Walsenburg man $1.25 million in damages after concluding his auto insurance company in bad faith did not properly offer him coverage as the law required. Michael Whitehead said he broke his neck in 2002 when his vehicle rolled over on U.S. 50 just west of Las Animas. He said he was on his way from work as a program manager at the Bent County Correctional Facility. The federal court jury last week concluded that American Family Mutual Insurance Co. was liable for not doing what it should to offer Whitehead enhanced personal injury (no-fault) coverage as part of his auto insurance policy. An attorney who specializes in representing motorists suing insurance companies said Monday there are thousands of Coloradans such as Whitehead whose insurers illegally did not offer their policyholders an optional, enhanced version of personal injury coverage. As a result, drivers seriously injured in auto accidents incur very costly medical expenses, but the companies have not paid more than specified in the lesser coverage versions of policies, said the attorney, Leif Garrison of Colorado Springs. State law required auto insurers to offer optional coverage beyond the basic minimum coverage. In Whitehead's case, he was entitled to have been offered coverage up to $200,000, but instead American Family limited his coverage to $130,000, the minimum, said Garrison, whose firm represented Whitehead. The company contended in its defense that Whitehead signed statements rejecting the additional, optional coverage. But the jury concluded in its verdict form that American Family did not offer the additional coverage "in a manner reasonably calculated to permit (Whitehead) to make an informed decision" whether to buy it. An agent did not provide sufficient explanation for Whitehead to make an informed choice, Garrison said. Because jurors concluded the company was grossly negligent and acted in bad faith in failing to properly offer additional coverage, they awarded $1 million to Whitehead to punish the company. The jurors also awarded him $250,000 to compensate him for losses, such as for pain and suffering. "We're clearly disappointed in the verdict," said spokesman Steve Witmer at American Family corporate headquarters in Madison, Wis. "At this point, we expect we will be filing an appeal." In addition, American Family owes Whitehead $210,000, plus interest, Garrison said. He said that amount is based on the $70,000 difference between the $130,000 limit of coverage the company paid and the $200,000 it allegedly should have paid. By law, the $70,000 is multiplied by three because of the jury's conclusion that the company was grossly negligent in not properly offering the optional coverage, Garrison said. Witmer said the company paid the full amount due under the coverage Whitehead chose. In a previous version of his policy, he chose one of the optional coverages for a brief period, but declined it for the policy in effect at the time of the accident, Witmer said. If Whitehead collects an estimated $1.5 million, which includes the interest, from American Family, "I'll be able to get my kids into college," he said, speaking from his home. He said he has not been able to work and is confined to a wheelchair. Garrison said the medical expenses Whitehead has had and is expecting to have over the years will be "hundreds of thousands of dollars." Shortly before last week's trial, Whitehead rejected American Family's offer of $250,000 to settle the lawsuit, Garrison said. Garrison said numerous people have lawsuits pending against various insurance companies, alleging situations similar to what Whitehead alleged. "This is one of the few (lawsuits) that has proceeded to (a) verdict," Garrison said. Five others injured in separate auto accidents, and who sued American Family in the same lawsuit as Whitehead, settled with the company before the trial, Garrison said. Witmer said American Family agents give customers "the information they need to make decisions they feel are appropriate for their individual needs."
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