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Old 03-27-2008, 02:52 AM
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Wal-Mart sues disabled woman (this is sad) but worth the read

JACKSON, Missouri (CNN) -- Debbie Shank breaks down in tears every time she's told that her 18-year-old son, Jeremy, was killed in Iraq.

Debbie Shank, 52, has severe brain damage after a traffic accident in May 2000.

The 52-year-old mother of three attended her son's funeral, but she continues to ask how he's doing. When her family reminds her that he's dead, she weeps as if hearing the news for the first time.

Shank suffered severe brain damage after a traffic accident nearly eight years ago that robbed her of much of her short-term memory and left her in a wheelchair and living in a nursing home.

It was the beginning of a series of battles -- both personal and legal -- that loomed for Shank and her family. One of their biggest was with Wal-Mart's health plan.

Eight years ago, Shank was stocking shelves for the retail giant and signed up for Wal-Mart's health and benefits plan.

Two years after the accident, Shank and her husband, Jim, were awarded about $1 million in a lawsuit against the trucking company involved in the crash. After legal fees were paid, $417,000 was placed in a trust to pay for Debbie Shank's long-term care.

Wal-Mart had paid out about $470,000 for Shank's medical expenses and later sued for the same amount. However, the court ruled it can only recoup what is left in the family's trust.

The Shanks didn't notice in the fine print of Wal-Mart's health plan policy that the company has the right to recoup medical expenses if an employee collects damages in a lawsuit.

The family's attorney, Maurice Graham, said he informed Wal-Mart about the settlement and believed the Shanks would be allowed to keep the money. Watch this couple's story »

"We assumed after three years, they [Wal-Mart] had made a decision to let Debbie Shank use this money for what it was intended to," Graham said.

The Shanks lost their suit to Wal-Mart. Last summer, the couple appealed the ruling -- but also lost it. One week later, their son was killed in Iraq.

"They are quite within their rights. But I just wonder if they need it that bad," Jim Shank said.

In 2007, the retail giant reported net sales in the third quarter of $90 billion.

Legal or not, CNN asked Wal-Mart why the company pursued the money.

Wal-Mart spokesman John Simley, who called Debbie Shank's case "unbelievably sad," replied in a statement: "Wal-Mart's plan is bound by very specific rules. ... We wish it could be more flexible in Mrs. Shank's case since her circumstances are clearly extraordinary, but this is done out of fairness to all associates who contribute to, and benefit from, the plan."

Jim Shank said he believes Wal-Mart should make an exception.

"My idea of a win-win is -- you keep the paperwork that says you won and let us keep the money so I can take care of my wife," he said.

The family's situation is so dire that last year Jim Shank divorced Debbie, so she could receive more money from Medicaid.

Jim Shank, 54, is recovering from prostate cancer, works two jobs and struggles to pay the bills. He's afraid he won't be able to send their youngest son to college and pay for his and Debbie's care.

"Who needs the money more? A disabled lady in a wheelchair with no future, whatsoever, or does Wal-Mart need $90 billion, plus $200,000?" he asked.

The family's attorney agrees.

"The recovery that Debbie Shank made was recovery for future lost earnings, for her pain and suffering," Graham said.

"She'll never be able to work again. Never have a relationship with her husband or children again. The damage she recovered was for much more than just medical expenses."

Graham said he believes Wal-Mart should be entitled to only about $100,000. Right now, about $277,000 remains in the trust -- far short of the $470,000 Wal-Mart wants back.

Refusing to give up the fight, the Shanks appealed to the U.S. Supreme Court. But just last week, the high court said it would not hear the case.

Graham said the Shanks have exhausted all their resources and there's nothing more they can do but go on with their lives.

Jim Shank said he's disappointed with the Supreme Court's decision not to hear the case -- not for the sake of his family -- but for those who might face similar circumstances.

For now, he said the family will figure out a way to get by and "do the best we can for Debbie."

"Luckily, she's oblivious to everything," he said. "We don't tell her
what's going on because it will just upset her." E-mail to a friend



http://www.cnn.com/2008/US/03/25/wal...tle/index.html
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Old 03-27-2008, 03:24 AM
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Just because Wal-Mart has the "Right" does not make it "Right". Compassion is rare in the business world and the only way to show Wal-mart that they made the wrong decision is to make them pay in terms of letters and sales. Had they truly done the "Right" thing and let her keep the money awarded in this terrible accident they could have turned this around and looked like hero's. Instead they look bad. I'll take some of my time and write Wal-Mart about my dissatisfaction with their decision.
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Old 03-27-2008, 06:17 AM
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To play WalMart's advocate, assume they go that road and claim "OK, we will not take the funds" then down the road an employee, with a far less severe injury, gets awarded damages in the millions and continues to leach off WalMarts HC policy. The precedent would then be in place for this person to say "hey, you didn't take theirs, you can't take mine".

Personal opinion, of course they shouldn't go after a measly $400K. However, milking the story by the press and painting the picture of her dead son in Iraq just builds the "us vs. the big bad corporation" considering her dead son has ZERO to do with the case against WalMart IMO.
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Old 03-27-2008, 09:36 AM
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Quote:
Originally Posted by Wagner
To play WalMart's advocate, assume they go that road and claim "OK, we will not take the funds" then down the road an employee, with a far less severe injury, gets awarded damages in the millions and continues to leach off WalMarts HC policy. The precedent would then be in place for this person to say "hey, you didn't take theirs, you can't take mine".

Personal opinion, of course they shouldn't go after a measly $400K. However, milking the story by the press and painting the picture of her dead son in Iraq just builds the "us vs. the big bad corporation" considering her dead son has ZERO to do with the case against WalMart IMO.
Thank you.

Yeah, it sucks, but I guarantee had it been a company other than walmart, I doubt you'd hear any of it.
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Old 03-27-2008, 01:35 PM
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Give the lady her money, its sad enough to see her family go thru this and the loss of their son. Change the damn policy and give the lady her money. They should change the policy so that this doesnt happen again. They netting 90 millie, damn.....greedy!
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Old 03-27-2008, 02:53 PM
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The policy is pretty much standard with many health insurance companies. And while it is the WalMart Healthcare Policy... the money is actually coming from/going to Blue Cross/Blue Shield. But let's jump all over WalMart. And yeah, change the policy... there's an economic disaster waiting to happen
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Old 03-27-2008, 03:05 PM
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Quote:
Originally Posted by GUINNESS
The policy is pretty much standard with many health insurance companies. And while it is the WalMart Healthcare Policy... the money is actually coming from/going to Blue Cross/Blue Shield. But let's jump all over WalMart. And yeah, change the policy... there's an economic disaster waiting to happen
Roger that.

Side note from CNNMoney to all those liberals that cry taxes need to go up on the upper class:

Quote:
From its beginnings in 1913, the income tax system was designed to be progressive; the more you make, the more you pay. The top bracket then was 7%, and it applied only to those who earned above $500,000 a year, which is about $10.6 million in today's dollars. Congress also recognized that some were too poor to pay taxes, so it exempted the first $3,000 in income. In 1913 that exclusion liberated all but 1% of the population from taxes.

Those principles still hold today. "Our tax system still is progressive," says Len Burman, director of the Tax Policy Center in Washington, D.C. In 2005 the 10% of taxpayers with the highest incomes provided 70% of income-tax revenue, which cost them on average 25% of their income, more than any other group, according to the IRS.
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Old 03-27-2008, 03:09 PM
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IMO, the way to get around this is to reclassify the award from the insurance company as pain and suffering not health care and then wal-mart has no claim via it's healthcare reclamation legalese. Unfortunately, the cow is out of the barn and you can't make the change retroactively.

Sucks for her, it's very sad.

Wal-mart doesn't want this bad publicity, but as stated above, it would set a precedent and they would be screwed in all future cases.
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Old 03-27-2008, 04:00 PM
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That is not exactly standard writing, it depends on the carrier, I won't bash BCBS I'll let their record make them look bad. The thing is this is not Wal-Mart's policy (unless they chose to self-insure) and they should not be an evil giant because of it, if you should be mad at anyone be mad at the company that put that fine clause in. Additionally, they legally couldn't make the exception for this poor lady from a fairness standpoint. Why? Because who sets the standard is open for discussing and obviously objective. These policies are universal and across the board in an attempt to be fair to every policy holder. NOW if we want to discuss how fair the clause is that is a whole different discussion all together.
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Old 03-27-2008, 04:21 PM
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Why is no one questioning this poor woman's idiot attorney? He got his 33.3 percent I'm sure - and he didn't even read the fine print! He should be paying back WalMart. As others have stated, if it was any other corp. we wouldn't hear about it - WalMart's just doing what they have to do to protect themselves and noset a really bad legal precedent.
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