Wal-Mart's Insurance Companies Refusing Reimbursement for Tracy Morgan Truck Wreck Settlement

07/06/2017 | Unfair Insurance Practices/Bad Faith

Tracy Morgan settled a truck wreck case against Wal-Mart in 2015.  It is reported the settlement was for multiple millions of dollars, but the exact figure is unknown.  Now, Wal-Mart’s insurance companies are refusing to pay Wal-Mart for the settlement, alleging Morgan exaggerated his injuries to get money. 

Morgan was a passenger in a limo that was hit by a Wal-Mart truck in 2014, killing one passenger and severely injuring Morgan and a third passenger.  Morgan and the other surviving passenger never gave deposition testimony about the wreck, but now Wal-Mart’s insurance companies are seeking their sworn testimony to determine whether the settlement was reasonable. 

The issue of the payment has come to light years after the wreck and settlement because Wal-Mart apparently paid the settlement to Morgan directly, not through its insurance companies.  Now Wal-Mart is seeking reimbursement for the settlement from its insurance companies and the insurance companies don’t want to pay, because they allege Morgan exaggerated his injuries.  Wal-Mart states it has no position on the dispute as it is between their insurance companies and Mr. Morgan. 

In Kentucky, insurance companies must follow the Kentucky Unfair Settlement Claims Practices Act and could be sued by their insureds or third parties if they do not.  These cases are often referred to as insurance “bad faith” cases.  The Poppe Law Firm handles insurance bad faith cases.  Contact us if you believe you have experienced unfair insurance practices.