In a recent case form the Iowa Supreme Court, a worker who was injured on the job was seeking a permanent total disability (PTD) rating. He was also seeking what is known as a partial computation of benefits via a lump sum benefits award.
In this case, worker was injured while on the job and this resulted in permanent paralysis. His employer, through its workers’ compensation insurance company, argued that claimant was not entitled to a PTD status and also refused to pay lump sum benefits. At this point, plaintiff filed a workers’ compensation lawsuit, as he alleged employer acted in bad faith when denying the claims, and, under state laws, this allowed him to seek compensatory plus punitive damages. The jury returned a verdict in favor of plaintiff, complete with punitive damages. However, on appeal, the court reversed, holding that punitive damages were not appropriate. Continue reading