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Case Law Database

Access over workers' compensation decisions, including En Banc, Significant Panel Decisions, and writ-denied cases.

Case No. MISSING
Regular Panel Decision

Scott v. Workers' Compensation Board

A probationary employee's termination by the Workers' Compensation Board was upheld on appeal. The employee initiated a CPLR article 78 proceeding, claiming the dismissal was arbitrary, capricious, and in bad faith, but the Supreme Court dismissed the application. The appellate court affirmed, emphasizing that probationary employees can be terminated without explanation or a hearing unless the discharge is for constitutionally impermissible reasons, legal violations, or bad faith. The petitioner failed to demonstrate bad faith or that the termination was unrelated to job performance, as evidence showed deficiencies in understanding Workers' Compensation Law, lack of improvement after training, and improper conduct.

Employment TerminationProbationary EmployeeUnsatisfactory PerformanceBad FaithCPLR Article 78Judicial ReviewWorkers' Compensation BoardCivil Service LawAdministrative LawPublic Employment
References
11
Case No. MISSING
Regular Panel Decision

Universe Life Insurance v. Giles

Justice Hecht's concurring opinion addresses the complex issues surrounding insurance bad-faith liability in Texas. He critiques the existing 'no reasonable basis' standard for its difficulty in appellate review, particularly due to the limitations of no-evidence review which prevents weighing conflicting evidence. He advocates for defining bad faith as 'unscrupulous, arbitrary conduct' and for treating the 'reasonably clear' liability standard as a legal question rather than a factual one. This approach, he argues, would provide clearer guidelines for insurers and enable meaningful judicial review, preventing juries from arbitrarily defining bad faith. Furthermore, he emphasizes that the requisite mental state for bad-faith liability should involve intentional or reckless conduct, not mere negligence. He concurs with the judgment that Universe Life wrongfully delayed Giles' claim (thus implying the claim for benefits was granted) but finds no evidence for punitive damages.

Insurance bad faithTexas lawtort liabilitycontractual disputesappellate reviewevidentiary standardsjudicial roleinsurer conductdamagespunitive damages
References
152
Case No. MISSING
Regular Panel Decision

Soto v. Koehler

The petitioner, Victor Soto, a tenured Correction Officer, was terminated during a probationary period on January 19, 1989, following disciplinary charges related to an auto accident and subsequent alleged excessive lateness. Soto filed a CPLR article 78 petition to challenge his termination, claiming bad faith, arguing that many of his eight latenesses were excusable due to external factors like snowstorms and transportation issues, and emphasizing his otherwise good work record. The Supreme Court dismissed his petition, finding no evidence of bad faith. This appellate decision affirmed the dismissal, ruling that the petitioner failed to prove bad faith, and that termination for lateness is a rational basis, particularly for a probationary employee, under the limited scope of judicial review for such cases. The dissenting opinion argued that the circumstances, including excusable latenesses and strong support from supervisors, demonstrated bad faith.

Correction OfficerProbationary EmploymentEmployee TerminationExcessive LatenessBad Faith AllegationCivil Service LawArticle 78 ReviewUnemployment BenefitsJudicial Review ScopeAppellate Affirmation
References
12
Case No. 2021 NY Slip Op 01050 [191 AD3d 884]
Regular Panel Decision
Feb 17, 2021

Matter of Faith A. M. (Faith M.)

The mother, Faith M., appealed an order from the Family Court, Kings County, which found her to have derivatively neglected her child, Faith A.M. This finding stemmed from a prior neglect determination in May 2014 concerning her other children due to excessive corporal punishment, which the court deemed proximate in time to the current proceeding. The evidence presented, including statements from siblings, testimony from a school counselor, and observations of injuries, corroborated the ongoing use of excessive corporal punishment. The Family Court's assessment of the mother's credibility, finding her denials incredible, was supported by the record, reinforced by her guilty plea to disorderly conduct related to similar allegations. The Appellate Division affirmed the Family Court's order, as the mother failed to provide evidence that the circumstances leading to the neglect finding no longer existed.

Child NeglectDerivative NeglectCorporal PunishmentFamily Court ActAppellate ReviewParental JudgmentPreponderance of EvidenceCredibilityPrior FindingsRisk of Harm
References
11
Case No. MISSING
Regular Panel Decision

Maryland Insurance Co. v. Head Industrial Coatings & Services, Inc.

This is an appeal in a bad faith insurance case involving Head Industrial Coatings and Services, Inc. (Head) and Maryland Insurance Company (Maryland). Head sued Maryland for denying a contractual liability claim, which was missing from its policy due to an agent's clerical error. The appellate court upheld the cause of action for bad faith, ruling that the agent's knowledge was imputable to Maryland, making the conduct knowingly wrongful. However, the court reduced Head's damage award to policy limits and reversed a statutory penalty. The case also involves a third-party action by Maryland against Gans & Smith Insurance Agency, which was remanded for a new trial due to issues with the jury's finding on breach of fiduciary duty.

Bad Faith InsuranceInsurance Code ViolationsContractual LiabilityAgent ErrorClerical ErrorIndemnity AgreementUnfair Claims Settlement PracticesDuty of Good Faith and Fair DealingImputed KnowledgeDamages Calculation
References
59
Case No. MISSING
Regular Panel Decision

Rangel v. Hartford Accident & Indemnity Co.

Lorenzo Rangel appealed a summary judgment granted in favor of Hartford Accident & Indemnity Company regarding his bad faith claim. Rangel alleged Hartford delayed workers' compensation payments following a job-related accident in May 1988, with payments ceasing in October 1988 and resuming in February 1989 after an Industrial Accident Board (IAB) conference. The underlying compensation claim was settled for $29,000, and the Compromise Settlement Agreement (CSA), approved by the IAB, noted that the carrier's liability or extent of injury was uncertain. Hartford successfully moved for summary judgment based on collateral estoppel, arguing Rangel was precluded from relitigating the issue of uncertainty. The appellate court affirmed the summary judgment, concluding that the IAB's finding of uncertainty of liability provided a reasonable basis for Hartford's delay in payments, thus defeating Rangel's bad faith claim.

Workers' CompensationBad Faith ClaimDelay in PaymentSummary JudgmentCollateral EstoppelIssue PreclusionCompromise Settlement AgreementTexas Industrial Accident BoardReasonable Basis for DelayUncertainty of Liability
References
12
Case No. 2019 NY Slip Op 05744 [174 AD3d 1206]
Regular Panel Decision
Jul 18, 2019

Matter of Civil Serv. Employees Assn., Local 1000, AFSCME AFL-CIO v. New York State Off. of Children & Family Servs.

The case involves Jarred Sansky, a probationary employee, terminated from his position as Cadet Leader 1 by the New York State Office of Children and Family Services. Petitioners, including Sansky and the Civil Service Employees Association, challenged the termination under CPLR article 78, arguing Sansky had completed his probationary term and was dismissed in bad faith or retaliation for reporting neglect. The Supreme Court dismissed the petition, finding Sansky was still probationary and petitioners failed to prove bad faith or retaliation. The Appellate Division, Third Department, affirmed the dismissal, holding that Sansky's temporary service in a higher position did not automatically count towards his probationary period and that allegations of bad faith or retaliation were unsupported by evidence. Therefore, Sansky, as a probationary employee, was not entitled to a pretermination hearing.

probationary employmentterminationCPLR article 78bad faith dismissalretaliationcivil service lawtemporary appointmentprovisional appointmentNew York State Office of Children and Family ServicesCadet Leader
References
10
Case No. MISSING
Regular Panel Decision

Chandler v. Prudential Insurance Co.

Plaintiff Dorothy G. Chandler sued Prudential Insurance Company of America after the termination of her long-term disability benefits. She alleged bad faith, outrageous conduct, and violations of the Tennessee Consumer Protection Act. The trial court granted partial summary judgment to Prudential on the outrageous conduct, tort of bad faith, and Consumer Protection Act claims. Plaintiff later nonsuited her claim for the statutory bad-faith penalty. The appellate court affirmed the trial court's decision, ruling that the statutory bad-faith penalty (T.C.A. § 56-7-105) provides the exclusive remedy for bad faith actions against insurers in Tennessee. The court also found that the plaintiff failed to state a cause of action for outrageous conduct and that the Tennessee Consumer Protection Act was not applicable based on the facts presented.

Disability BenefitsInsurance PolicyBad Faith ClaimOutrageous ConductConsumer Protection ActSummary JudgmentExclusive RemedyAppellate ReviewInsurance LawTort Law
References
17
Case No. MISSING
Regular Panel Decision

In re Weir v. State of New York Thruway Authority

Petitioner, a probationary laborer for the New York State Thruway Authority and New York State Canal Corporation, was terminated from his position after co-workers reported him for marihuana use during working hours. Despite a negative urine test and prior satisfactory performance reviews, the Albany Division Director recommended termination based on the credibility of the co-workers' statements and deteriorating relations. Petitioner challenged his termination through a CPLR article 78 proceeding, which was dismissed by the Supreme Court. The appellate court affirmed this dismissal, ruling that as a probationary employee, petitioner could be dismissed without a hearing or stated reasons, and he failed to demonstrate bad faith, arbitrary, capricious, or otherwise illegal reasons for his termination.

Probationary EmploymentTerminationDrug UseMarihuanaCPLR Article 78Judicial ReviewPublic EmploymentWorkplace ConductBad FaithArbitrary and Capricious
References
4
Case No. MISSING
Regular Panel Decision
Nov 28, 1989

Kroboth v. Sexton

Joseph Kroboth, a probationary sanitation worker, was terminated by the Department of Sanitation for two "AWOL" absences, one of which occurred when he sought help for alcoholism from the Department's Emergency Assistance Unit. Kroboth filed a CPLR article 78 proceeding, alleging bad faith termination. The Supreme Court initially denied his petition. However, the appellate court reversed the decision, finding that the Department acted in bad faith by terminating Kroboth after he availed himself of their alcohol abuse program and performed satisfactorily post-treatment. The court ordered Kroboth's reinstatement with retroactive wages and benefits, deeming his dismissal arbitrary and capricious.

Probationary Employee TerminationBad FaithAlcohol Abuse ProgramAWOL PolicyReinstatementCPLR Article 78Departmental RulesArbitrary and CapriciousPublic PolicyJob Security
References
8
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