September 25, 2018

Colorado Supreme Court: Survivor Statute Does Not Allow Personal Injury Award to be Limited

The Colorado Supreme Court issued its opinion in Guarantee Trust Life Insurance Co. v. Estate of Casper on Tuesday, May 29, 2018.

Unreasonable Delay and Denial of Insurance Benefits—Abatement—Actual Damages.

The supreme court considered the operation of C.R.S. § 13-20-101, Colorado’s survival statute, and C.R.S. § 10-3-1116(1), a statutory cause of action for the unreasonable delay or denial of insurance benefits. The court also considered the scope of the trial court’s authority to enter a final judgment nunc pro tunc.

The original plaintiff in this case died after receiving a favorable jury verdict but before that verdict had been reduced to a written and signed entry of final judgment. Defendant then moved to substantially reduce the jury award, arguing that the survival statute barred certain damages. The court concluded that the survival statute does not limit the jury’s verdict in favor of the original plaintiff. The court further concluded that an award of attorney fees under C.R.S. § 10-3-1116(1) is a component of the “actual damages” of a successful claim under that section and that, although the survival statute did not limit the damages awarded by the jury, the trial court abused its discretion by entering a final judgment nunc pro tunc.

The court of appeals’ judgment was affirmed in part and reversed in part.

Summary provided courtesy of Colorado Lawyer.