Perry v. Transamerica Ins. Group
An employee (Plaintiff) who sustained an on-the-job back injury sued the employer's workers' compensation carrier (Defendant) for alleged bad faith, negligence, and outrageous conduct in handling her claim, seeking compensatory and punitive damages. The Plaintiff claimed the carrier failed to provide a choice of physicians, delayed benefits, and denied authorization for exploratory surgery. The Circuit Court dismissed the action, holding that the exclusive remedy provision of the Tennessee Workers' Compensation Act barred such an independent action. The appellate court affirmed the dismissal, reasoning that under Tennessee law, the insurer is equated with the employer, and the Act's statutory penalty for delayed payments is the sole remedy for mishandling claims, thereby precluding common law claims for damages.