Gary Shephard's Injury

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In the summer of 2003, Gary Shephard learned that he needed to have surgery on his left knee. In accordance with the requirements of his insurance plan, Mr. Shephard obtained prior approval for the surgery from Blue Cross/Blue Shield and made plans to have the surgery on or about August 5, 2003. On August 1, 2003, a few days before his scheduled surgery, Mr. Shephard was laid off due to lack of work. (Shephard v. O'Quinn Case No. 3:05-CV-79, 2013) Defendant John O'Quinn, Gary Shephard’s boss, told him that the layoff would be temporary and that his insurance coverage was paid for one month after his layoff. Therefore, Mr. O'Quinn assured Mr. Shephard that his health insurance would still be effective the following week when he had knee surgery. …show more content…

Shephard was previously employed by defendant O'Quinn Enterprises, Inc., beginning in November 2002. One of the benefits offered to employees of O'Quinn Enterprises was participation in the company's group health insurance plan through Blue Cross/Blue Shield of Tennessee. The cost of the health insurance premiums were split between the employer and the employee. O'Quinn Enterprises deducted $59.83 per pay period from Mr. Shephard's paycheck for his portion of the health insurance premium. (Shephard v. O'Quinn Case No. 3:05-CV-79, 2013)

The Plaintiff, Gary Shephard later learned that for some period of time the deductions taken from his pay were not being applied to his health insurance premium and that his insurance coverage had lapsed. He also discovered that he did not have COBRA coverage as promised. Mr. Shephard testified that this lapse in coverage affected his ability to obtain new insurance coverage and he had to be placed on a list for knee transplants which delayed his ability to receive complete treatment for his …show more content…

Therefore, the Court finds that an award of statutory penalties of $110.00 per day for 826 days totaling $90,860.00 as requested is appropriate. The Court awarded $90,860 in statutory penalties at the $110 per day maximum for not providing an election notice. Attorney fees were another $16,909, and medical claims totaled $12,200. Interestingly, rates of $225 per hour for attorney time and $95 per hour for paralegal time were deemed to be reasonable by the Court. (Case Law Summaries,

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