Shank case shakes up, sheds light on insurance subrogation clauses

by • May 1, 2008 • UncategorizedComments Off on Shank case shakes up, sheds light on insurance subrogation clauses1210

• The Gist: This case emphasizes why record reviewers, life care planners and attorneys must thoroughly assess damages and the victim’s future financial and medical needs.


Deborah Shank, 52, lost much of her memory, and her ability to communicate or walk, after a collision with a large truck eight years ago, but she won $700,000 against the trucking company.

After attorney fees and expenses, she netted $417,477 that went into a trust fund. The fund eventually fell to $270,000 and her former employer, Wal-Mart, wanted her to pay back the $470,000 that it paid on her behalf for her medical costs under its health plan.

In early April, after a storm of criticism from the public, Wal-Mart decided not to seek reimbursement, or subrogation, from Shank, according to the St. Louis Post-Dispatch and Newscom…

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