Tracy Morgan subpoenaed in bad faith insurance case against Walmart insurers

When a motor vehicle accident occurs, the main concern initially is to ensure that victims receive necessary medical treatment as quickly as possible. In serious accidents where catastrophic though nonfatal injuries occur, medical treatment can be extensive and costly. Whether there is brain damage, spinal cord injury, loss of limb or disfigurement, it is critical for accident victims to seek appropriate compensation from all responsible parties.

Insurance coverage usually plays an important role in ensuring accident victims are compensated for injuries and losses. This coverage may come from the victim’s own insurer, from the insurer of the motorist responsible for the injuries, or from the insurers of other parties found to be at fault. Whatever the case may be, insurance companies don’t always cooperate in covering legitimate claims or reimbursing parties who settle claims. 

This is evident in an ongoing legal challenge two insurers of Walmart filed in connection with a 2014 New Jersey truck accident involving actor and comedian Tracy Morgan. In the wake of that accident, Walmart settled with Morgan for an unknown amount. By some estimates, the settlement was as great as $90 million, though the exact amount isn’t known for sure.

While Walmart maintains the settlement was reasonable, its insurers refused to cooperate in the settlement, and are now challenging their obligation to reimburse the payout, claiming that Tracy Morgan exaggerated his injuries for financial benefit. As part of their challenge, they have subpoenaed Morgan to sit for a lengthy deposition, a request which his attorney is working to set aside.  

In our next post, we’ll look a bit more at the topic of bad faith insurance and the importance of working with an experienced attorney to effectively address any insurance disputes that arise following an accident.