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Wal-Mart Going After Disabled Woman's Insurance Settlement

Posted by asflutz

Almost eight years ago, 52-year-old Debbie Shank was involved in an accident that left her severely brain-damaged, with little short-term memory.  She lives in a nursing home, confined to a wheel chair, unable to care for herself.

She was, however, awarded $700,000 in a lawsuit against the trucking company that caused the accident.  Once legal fees were deducted, the remaining $417,000 was placed in a trust to pay for Debbie's long-term care (an example of bloodsucking attorneys that could be a post in its own right).

But Wal-Mart, Debbie's former employer, claims that money belongs to them, and filed a suit against the family.  And they won. 

See, Debbie was enrolled in Wal-Mart's health plan at the time of the accident, which stipulates (in fine print, natch) "the company has the right to recoup medical expenses if an employee collects damages in a lawsuit."  Which, I suppose, makes sense in most cases, where it wouldn't be fair for the patient to be compensated twice for the same injury.

But the Shank family isn't looking to retire to Palm Springs.  They're so strapped for cash that Debbie's husband, Jim, divorced her so she could get more help from Medicaid.  He himself is a prostate cancer survivor who is working two jobs and is still concerned he won't be able to afford college for his youngest son. 

Oh, and did I mention that another son was killed in Iraq last year?  And that Debbie's short-term memory loss is so profound that every time she hears about her son's death she grieves as if hearing it for the first time? Could this story get any more tragic?

Wal-Mart admits that Debbie's circumstances are "clearly extraordinary," and wishes they could be "more flexible," but claims they are obligated to follow their own rules "out of fairness to all associates who contribute to, and benefit from, the [health] plan." 

I don't know.  I think employees would be happier with some reassurance that Wal-Mart wasn't ever going to bankrupt their own families. 

 

cnn photo


Comments

 

Sue said:

Poor lady :(  And I hope Walmart will reconsider after the bad press on this. It's just too bad that it has to come to that. Honestly, what is WM thinking? "Oh sure, if we let Debbie have her money then ALL our employees will go get in tragic accidents just for the cash..."

March 26, 2008 1:39 PM
 

Treespeed said:

As if we needed any more convincing that Wal Mart is pure evil.

March 26, 2008 1:39 PM
 

Seriously said:

We all really need to boycott Wal Mart and stop going there!  I seriously am not stepping foot in there again!  

March 26, 2008 2:07 PM
 

chyna823 said:

Jeez. There's following the rules, and then there's having some heart and common sense. Unbelievable--how do those lawyers sleep at night?

March 26, 2008 2:55 PM
 

M.A.P. said:

The 417,000 is only pocket change to Wal Mart.  I can understand being fair to all enrolled in their health care plan, but why not just make a gift/donation to the family of this money.  The Shank family obviously needs this money much more than Wal Mart.  That would be the ethical thing, but we are talking about Wal Mart.    

March 26, 2008 3:05 PM
 

maeby said:

they know they're assholes. they dont care. they're very rich because of it.

March 26, 2008 4:55 PM
 

Deb said:

I'm curious as to what evidence you have for your assertion that the legal team that won the award of $700,000 for this poor woman are "an example of bloodsucking attorneys."  Do you know how long that litigation lasted, what kinds of evidence and expert witnesses were required to prove up the case, how much motion practice the defendant(s)' attorneys engaged in, how long the litigation process lasted, or whether there was writ practice along the way?  Do you know what the original retainer agreement provided?  What was the contingency fee arrangement, assuming it was a contingency fee?  How much money did that law firm have to advance to finance the litigation?  

Believe me, I am not at all arguing that there are not greedy attorneys out there, but unless you know something specific about the course of the litigation here, I think it's unfair to blithely and entirely without support assert that you know that for a lawyer or firm to recover $283,000 for this specific lawsuit was necessarily "bloodthirsty" or illegitimate.  

March 26, 2008 5:14 PM
 

Stef said:

"We all really need to boycott Wal Mart and stop going there!  I seriously am not stepping foot in there again!"

I am not trying to be snide, but with all the information that is out about how detrimental stores like Wal-Mart (and Target, and Meijer) to our economy, to our environment, even to our bodies(the crap is loaded with toxic chemicals, they refuse to remove recalled toys from their shelves), the fact that they sell GUNS! and refuse to carry emergency contraceptives, why would anyone be shopping there?

This is so sad, and if there are big-box shoppers out there, I would say the time to use your voice is now. But why would this behavior be so shocking from one of the most evil empires?

http://www.storyofstuff.com/

www.pbs.org/.../view

March 26, 2008 5:19 PM
 

km said:

I agree Stef.  It was reassuring to see I wasn't the only one who WASN'T surprised that Wal-Mart did this.  Really, what does anyone expect from the source of all evil?

It can be tough to make an effort to buy locally--especially if you live in a rural area.  Stories like this, though, prove that sometimes it's worth the effort to know where your money is going.

March 26, 2008 6:44 PM
 

Dwtintx said:

Deb, I totally appreciate your comments.  That was one of my first reactions as well.  Can we lay off the lawyers, please?  Also, regarding chyna823's comment, Wal-Mart probably had its lawyers review the terms of its health plan, and the lawyers said something like, "If you desire to take this action, your contract says X.  Whether you choose to take this action is up to you."  And then evil Wal-Mart did what it always does.  You can bet the lawyers did NOT make the decision regarding this woman.  Maybe their lawyers might have some qualms working for that company, but we don't always have the ability to be so selective with regard to our clients.    

March 26, 2008 8:53 PM
 

Dave said:

I feel sorry of the added pain that Wal-Mart subjected Debbie and her family to.  Now that Wal-Mart won, maybe Wal-Mart will see fit to give the family a FREE Grant of $500,000 to show Debbie she was a VALUED employee.  Or they might have already taken the route of having a life insurance policy on Debbie so Wal-Mart can collect even more upon her death.

March 27, 2008 10:33 AM
 

Kelley said:

This is clearly a sad story, and I feel for this woman's situation, but this is not a story of how WalMart is evil.  If they did not collect on this money, future (and past) employees could claim they set a precedent, and prevent them from collecting on any future settlements.  The settlement should have paid medcal expenses AND punitive damages.

March 27, 2008 11:21 AM
 

pdxgw said:

I am disgusted. I will not be returning to Walmart. And I will make sure that this is circulated.

March 27, 2008 8:19 PM
 

phobos_anomaly said:

I have been reading everything I can locate about this case since I first heard about it back in november. I've heard the hype, and after talking to walmart media relations this morning, I have heard both sides. This is a clear cut case of corporate greed. They know what they are doing is wrong, and whats more is that walmart doesn't care. here are some quotes from the conversation I had this morning.

Walmart "its our policy to recover money in accordance to our health plans to ensure our current employees have the best possible care"

Walmart:"while the events are tragic, we have an obligation to our shareholders and employees to recover any and all money"  

me: "does that mean walmart goes after everyone that gets injured and requires medical care?"

walmart: "no, we do not pursue everyone"

me: so whats the deal with this case?

walmart: "Due to the excessive amount of money, walmart felt that it needed to recover most of it. The court ruled that only what remained could be taken so we didn't leave the woman in debt to us"

me: "you sound as though she should be grateful for that or that you did her a favor by only taking what remained"

walmart: "no comment"

March 28, 2008 12:23 PM
 

Justin said:

Wal-Mart is the worst company. Any person who goes to Wal-Mart and puts ANY money in their pocket should feel a share of their guilt since they support them.

Yes, it is legal what they are doing. I think if it is the rule then they should do it. Then they should take the money they would have spent on the extra PR firm they just had to hire to take on this subject and given it right back to her. Wouldn't that have made sense???

March 28, 2008 11:40 PM
 

I. Morris said:

This is disgusting. I have never heard of such evilness. I WILL NOT shop at Walmart again, and I MEAN THAT.

March 29, 2008 1:43 AM
 

BrianW. said:

I went to my local Wal-Mart on Sunday, and in the absence of a floor mgr.(they apparently don't have to work on Sundays) told the head cashier about the above story - and that I would not be supporting their company any longer, at least until this decision is rescinded. None of the cashiers knew ANYTHING about this story, but were genuinely dismayed to hear about it. I knew when I left that it would be all over the store in minutes (I'm going to do this in every Wal-Mart I drive by from now on).

I went back in yesterday to pick up my last prescription Blood Pressure meds (already ordered) and repeated my statement to the customer service person, who said she would pass it on to the store mgr. "immediately". She apparently did so - as I was shortly afterwards followed to the pharmacy by a young woman who I noticed at the last moment had a "mgr." badge on, as she flashed me an incredibly dirty up-and-down look and vanished thru an employees only doorway.

Guess my Sunday revelations made her Monday considerably more difficult in the employee-relations department!

Hope Lower-Level Mucky Mucks (aptly nicknamed) reconsider their incredibly bone-headed decision to beat up this poor maimed woman further. This boycott thing may be getting some traction. I certainly hope so. Wal-Mart has seen the last of me, and anyone else I can actively convince to shop elsewhere.

April 1, 2008 11:21 AM
 

Eliyahu said:

I guess Wal-Mart is having a hard time understanding that just because they have the right to do something, that doesn't mean that it's a good idea to do it. Sam Walton would have been so ashamed and furious to see this done by the retail empire he created...

April 1, 2008 2:29 PM
 

Part of the evil empire said:

I like shopping at wal-mart, it saves me a lot of money on groceries, prescriptions and stuff.  Walmart is one of the major providers of jobs to this nation.  If walmart were to shut down tomorrow, you all would complain that the evil company put all those people out of their jobs.  The toys and other stuff that contain the chemicals you talk about are also sold at Fred Meyers, Albertons, All the malls, and even most of the "mom and pop" store we go to to buy stuff.  Why is nobody boycotting the other stores?  Walmart is the 2nd biggest corperation that gives to charity below Bill Gates.  Think about it!

April 11, 2008 11:41 AM
 

THE MONEY DOESNOT BELONG TO WALMART IT BELONGS TO DEBBIE said:

WHAT WALMART DID TO DEBBIE IS WORNG THEY SHOULDN'T COLLECT THE LAWSULT MONEY WALMART MANEGMENT OR OTHER EMPLOYEES WERN'T IN THE AUTOMOBILE ACCIDENT SO THE MONEY DOESN'T BELONG TO THEM. DEBBIE IS THE VICTUM IN THE ACCIDENT AND SHE SHOULD BE IN TITLE TO HER MONEY FOR DAMAGES THAT LEFT HER BRAIN DEAD.  

April 22, 2008 10:58 AM

About asflutz

Amy S.F. Lutz's work has appeared in dozens of literary journals, including Cream City Review, The American Poetry Review, Puerto del Sol, and Mid-American Review. She and her husband have five children. Amy and her sister chronicle their adventures in communal living in their blog whoelsewantstoliveinmyhouse.com

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