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McIlravy v. North River Insurance Co.2/20/2002
Appeal from the Iowa District Court for Polk County, Joel D. Novak, Judge.
Plaintiff appeals from the summary judgment entered against him in his action for bad faith refusal to settle a workers' compensation claim. AFFIRMED.
Plaintiff-appellant David McIlravy appeals the district court's summary judgment for defendant-appellee North River Insurance Company/Crum and Forster Insurance Company in his suit against them for bad faith refusal to pay him workers' compensation. Plaintiff claims on appeal that the district court erred in granting defendant summary judgment because (1) the claim had been decided in the workers' compensation proceeding and issue preclusion applies, and (2) there is a factual basis for his claim. We affirm.
Plaintiff David McIlravy is a thirty-seven-year-old steelworker whose job includes bending, stooping, lifting, carrying and climbing, often while wearing a tool belt that weighs in excess of twenty pounds. On August 7, 1997, plaintiff, who had experienced no previous problems with his right knee, suddenly heard and felt a loud pop in that knee. At the time of the pop, plaintiff, who was on the job at one of his employer's job sites in Ames, Iowa, was walking across a level concrete floor and was not carrying anything or wearing a tool belt. Plaintiff felt no pain and continued walking. At work the next day plaintiff was forced to leave work due to pain in his knee, which had become swollen and stiff overnight. Plaintiff was directed by his employer to consult Dr. Jon Gehrke, an orthopedic surgeon, who found that plaintiff had torn the cartilage in his knee. The doctor indicated the tear probably occurred when plaintiff felt the pop. Dr. Gehrke was of the opinion that the incident was work-related because it had happened on the job and an injury such as plaintiff's was seen more often in persons such as plaintiff who were involved in labor-intense activities. Dr. Gehrke found that plaintiff's knee was otherwise healthy. He did not note an overall condition of degeneration in the knee joint, and he did not believe the injury could be attributed to any pre-existing condition that might make plaintiff's knee more susceptible to injury.
The workers' compensation carrier, who is the defendant-appellee, denied coverage based on its claim that the alleged injury, which occurred while plaintiff was walking, was not connected with or caused by plaintiff's employment. Defendant did not obtain medical advice before reaching the conclusion that the plaintiff's injury was unrelated to his employment. After defendant denied his claim, plaintiff filed an arbitration petition with the industrial commissioner. The commissioner found plaintiff had established a compensable injury and awarded him healing period benefits, permanent partial disability benefits, and a penalty against the employer for unreasonable denial of a claim. The district court affirmed that decision, as did our court. In the current action plaintiff seeks damages against defendant for defendant's alleged bad faith denial of his claim.
We review summary judgments for errors at law. Iowa R. App. P. 4; Keller v. State, 475 N.W.2d 174, 179 (Iowa 1991). Summary judgment is appropriate only when there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. Schoff v. Combined Ins. Co., 604 N.W.2d 43, 45 (Iowa 1999); Iowa R. Civ. P. 237(c). We examine the record before the district court to determine whether any genuine issue of material fact existed and whether the court correctly applied the law. Schoff, 604 N.W.2d at 45. The facts are viewed in the light most favorable to the party opposing the motion for summary judgment. Id.
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