Is a plaintiff entitled to recover for continuing mental suffering as a result of fraudulently terminating his disability benefits?

California, United States of America


The following excerpt is from Waters v. United Services Auto. Assn., 41 Cal.App.4th 1063, 48 Cal.Rptr.2d 910 (Cal. App. 1996):

Without reference to that fact, however, the Sprague court went on to hold that the insured was entitled to recover for his continuing mental suffering: "The threshold requirement of economic loss was satisfied when (the carrier) initially participated in fraudulently terminating his benefits. From then on, (the insured) was entitled to recover damages for his mental suffering proximately caused by the termination of benefits, for whatever length of time his mental suffering continued.... [p] After the threshold showing of economic harm was made, evidence that [the carrier] conditionally restored [the insured's] benefits went only to the quantity of damages, and the credibility of [the insured's] claim that he continued to suffer emotional distress, which were matters for the jury, and not to be reweighed on appeal." (Sprague v. Equifax, Inc., supra, 166 Cal.App.3d at p. 1031, 213 Cal.Rptr. 69, emphasis added.)

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