Howard Glick, partner at SMGB, has won a $2.6MM judgment for the Alabama Insurance Guaranty Association. The decision by the Jefferson County Circuit Court was issued against FrankCrum, who refused to reimburse AIGA for benefits the insurance association paid to one of FrankCrum’s workers.
Glick filed an action on behalf of the AIGA against FrankCrum for subrogation recovery under the Alabama Insurance Guaranty Association Act’s net worth provisions. FrankCrum, a professional employment organization, hired a worker who subsequently suffered a work-related lung injury. When the employee filed a Workers’ Compensation claim, AIGA paid the injured employee; and thereafter, FrankCrum steadfastly refused to reimburse AIGA for these benefits.
Under the terms of the judgment, FrankCrum must also assume responsibility for the employee’s future Workers’ Compensation benefits; or reimburse AIGA if it pays for them.
“The decision was fair and just,” said Glick. “AIGA was correct in paying the employee for his work-related injury, and I’m pleased that the court allowed my client to recover the monies they were entitled from FrankCrum.”