The Year in Review: Weird Insurance Claims in 2011
From exploding churros (a donut-like pastry) in South America to a $7.5 million slip and fall at a Starbucks, 2011 has been chock full of litigation for business owners.
Newspaper Burned by Exploding Donuts
Apparently crazy court decisions are not solely an American invention. A Chilean newspaper, La Tercera, was recently ordered to pay $163,000 US to 13 people who suffered burns after the churros they were cooking exploded. The court agreed that the temperature listed in the paper’s recipe was too hot, which caused the dough to explode.
The plaintiffs won’t be rolling in dough, but this is a very unique legal theory. I wonder if U.S. newspapers will discontinue printing recipes to mitigate their risk.
An Expensive Slip for Starbucks
America’s darling, Starbucks, got hit with a $7.5 million jury verdict. A man fell in a California Starbucks in 2008, striking his head on a cash register.
That verdict wasn’t Starbucks’ only problem this past year. A dwarf barista who was allegedly fired for her inability to serve customers over the counter due to her height was awarded $75,000 in a negotiated settlement with the coffee company. Additionally, Starbucks agreed to incorporate disability sensitization training for its management team as an additional settlement condition.
The Hulk Takes an Expensive Ride
Hulk Hogan made news again when the suit he filed against his insurance agent was dismissed recently. Hogan alleged his insurance agent provided inadequate professional advice regarding his insurance limits.
Hulk’s son was involved in a racing-style auto accident, which left another youth brain damaged. Each of the Hulk’s vehicles carried only $250,000 in liability insurance. The brokerage that sold Hulk his coverage stated that Hogan’s ex-wife or her personal assistant repeatedly ignored advice from the brokerage’s agents suggesting the purchase of higher auto liability limits. Maybe that’s why they call him the “Incredible” Hulk? Incredibly naïve, since $250,000 doesn’t go far in a serious injury claim these days, especially when you’re worth millions.
Lawyers Suing Their Own Schools
In another strange twist (where else but in America?), law school graduates are putting their new degrees to use any way they can. Newly graduated yet under- and unemployed lawyers are suing their alma maters, claiming their schools huckstered them with overly optimistic hiring and salary statistics.
New York Law School is not the only plaintiff. According to several news outlets, other schools are in the crosshairs of attorneys seeking law school graduates to participate in class-actions. Don’t you love life’s little ironies?
Amtrak Accident Costs an Arm and a Leg
In another weird twist, a few years ago, Hiroyuki Joho was killed by an Amtrak train as he crossed the tracks near Chicago. His flying body parts struck a woman, hurting her shoulder and breaking her leg and wrist. An appellate court ruled just a few weeks ago that the woman’s claim can proceed against Joho’s estate. Who can follow that train of thought?
With catastrophes galore and an uncertain economy, 2011 has been a volatile year for the insurance industry and rates have begun to creep up. What will 2012 hold for small business owners? Business owners can’t always protect themselves against exploding churros or flying body parts. If you make no other resolutions for 2012 resolve this -- sit down with your agent and review all your coverages, both personal and business. Paying a few more dollars a year to protect yourself will seem like money well spent if you are presented with a claim.
