New York Principal Ken Frenchman recently spoke with Claims Journal about a dispute between Walmart and its insurers concerning reimbursement for a confidential settlement agreement that Walmart reached with famed comedian Tracey Morgan following Mr. Morgan’s tragic motor vehicle accident involving a Walmart delivery truck. Mr. Frenchman explained that insurers are arguing that the amount Walmart paid to settle Mr. Morgan’s claim is unreasonable. The insurers alleged that Walmart did not investigate and evaluate the injury claims properly nor provide the insurers with a report of the settlement negotiations. “If the settlement reflects a lifetime of pain and suffering and loss of working in a very lucrative job, that would add up to a lot of damages. If it’s a year of pain and suffering and being out of work in a lucrative job, it would be much less damaging,” said Frenchman. While the insurers are basing their arguments on what Mr. Morgan is doing now with the benefit of hindsight, Mr. Frenchman explained, the settlement needs to be based on the information that was available to Walmart at the time.
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