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Wal-Mart, Insurers Sue Each Other Over Tracy Morgan Truck Accident Settlement

Wal-Mart, Insurers Sue Each Other Over Tracy Morgan Truck Accident Settlement

While Wal-Mart recently reached a truck accident settlement with comedian Tracy Morgan over his injuries from a June 2014 collision, the retail giant still faces legal battles with its own insurance providers. The retailer filed a lawsuit on September 30 claiming that its insurers failed to reimburse the company for its share of the truck accident settlement. According to a Wal-Mart spokesman, the company “funded the settlement agreements in full, but some of the insurance carriers have failed to pay their portion of the settlement amount.”

Details of the Tracy Morgan Truck Accident

The truck accident settlement stemmed from an accident in which a Wal-Mart truck collided with a multi-passenger limousine on the New Jersey Turnpike. The limo carried Mr. Morgan and several other comedians, including Mr. Morgan’s close friend and fellow comedian James “Jimmy Mac” McNair. The truck driver, who had reportedly been awake for more than 24 hours, struck Mr. Morgan’s vehicle. The collision left Mr. Morgan with numerous injuries, including a traumatic brain injury. Mr. McNair died at the scene.

Truck Accident Settlement Lawsuit Names Major Insurers

The retailer’s lawsuit over the truck accident settlement repayments named at least three major insurance providers as defendants. The lawsuit claims that Liberty Insurance Underwriters Inc., the Ohio Casualty Insurance Co. and St. Paul Fire & Marine Insurance Co., tried to prevent the truck accident settlement from being finalized. A spokesman for Wal-Mart released a statement saying that the company “took full responsibility for the tragic accident” and that the insurers were “not living up to the requirements of their own policies.”

Truck Accident Settlement Lawsuit Alleges Delays

The retailer’s truck accident settlement lawsuit claims that the insurance providers continued to demand more information before approving of any settlement arrangement. The company stated that the insurers insisted that it hire an economic expert to calculate the potential future income of Mr. Morgan and the other accident victims before determining the amount of the truck accident settlement. Wal-Mart called the insurance companies demands “harrassing and pretextual” and claims that they were “part of an intentional scheme to avoid making coverage payments.”

Insurers File Truck Accident Settlement Countersuit

Less than 24 hours after Wal-Mart filed its suit, two of the insurers named as defendants filed their own truck accident settlement countersuit. Attorneys for Ohio Casualty and Liberty Insurance claim that they were not kept up to date on the retailer’s truck accident settlement arrangements. The insurers called the amount of the settlement “unreasonable.” No dates have been set for either lawsuit.

Source: Arkansas Business

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NOTE: This blog post is a news story and does not constitute and endorsement of the Amaro Law Firm by any parties mentioned herein.


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