The U.S. Court of Appeals for the Sixth Circuit has affirmed summary judgment for Ulmer & Berne LLP’s client, a major insurance company, in a putative class action regarding the company's handling of claims for medical payments benefits. Plaintiff John Werner sued the Firm’s client alleging that the company had breached the terms of its auto insurance policy by paying medical payments benefits (MedPay) directly to Werner's health insurance provider under a lien claimed by the health insurer. Werner alleged that the company's conduct amounted to bad faith.
The Firm’s client moved for summary judgment before engaging in class-related discovery. On behalf of our client, we argued that the language of the insurance policy did not restrict the company's ability to make MedPay payments directly to third parties on behalf of an insured and that the Firm’s client showed good faith, rather than bad faith, in advising the insured of the prospective payment before it was made. The U.S. District Court for the Northern District of Ohio granted summary judgment to the Firm’s client. In February 2009, the Sixth Circuit affirmed summary judgment on behalf of the Firm’s client. In April 2009, the court denied Werner's motion for reconsideration or hearing en banc.
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