GAB Business Services, Inc. v. Moore
Sherry Moore, an employee of the City of Marshall, suffered a work-related injury in January 1987. Although GAB Business Services, the insurance adjuster, initially paid for some medical expenses, they denied weekly workers' compensation benefits for her back injury, claiming it was from a separate incident at home. Moore successfully appealed to the Industrial Accident Board and later won a bench trial, which found her back injury compensable and led to a lawsuit against GAB, the City, and the Risk Pool for bad faith and deceptive trade practices. A jury found in favor of Moore against GAB for $25,000 in actual damages and $75,000 in exemplary damages. The appellate court affirmed the trial court's judgment against GAB, finding sufficient evidence to support the jury's findings that GAB acted in bad faith by denying the claim without a reasonable basis, and engaged in unfair practices, causing Moore mental anguish damages. The court also rejected GAB's defenses of governmental and official immunity and upheld the trial court's evidentiary rulings.