$60 Million Verdict Against Unum and Paul Revere
In Merrick v. Paul Revere, a Nevada jury returned a bad faith disability verdict against Unum and Paul Revere in the amount of $60 million. The prior jury had returned a verdict of $11.65 million, but Unum appealed and a new trial was ordered. The second trial focused on the proper punishment for Unum and Paul Revere, based on an alleged longstanding scheme to improperly deny and terminate legitimate disability claims. Like Nevada, many states (including Arizona, California, Pennsylvania, Florida, New Mexico, Montana and Vermont) have viable “bad faith” laws that allow claimants to sue in court for extra-contractual damages, including punitive damages.