Death Be Not Disclosed

A recent complaint filed by the Illinois Administrator who sought to negotiate a personal injury settlement knowing that the client had died. 

On February 17, 2017, Respondent sent a demand letter to Richard Grayla of Sedgwick, demanding $50,000 for the injuries suffered by Christopher, and $100,000 for the injuries suffered by Christian. When Respondent sent the letter, he knew that Christian was deceased, and that he was not authorized to settle her claim against Lopez for $100,000, or for any amount.

On or about May 17, 2017, ELCO advised Respondent that he should negotiate any settlement of the claims with Sedgwick.

Between May 17, 2017 and October 24, 2017, Respondent communicated with Sedgwick to effectuate a settlement on behalf of Christian resulting from the incident referred to…above. At no time during those negotiations did Respondent inform anyone from Sedgwick that Christian had died. During those negotiations, Respondent knew that he no longer had Christian’s authority to settle the claim because she had died.

On or before July 24, 2017, Respondent learned that Laura Tague of Sedgwick would be handling the claims related to both Christopher and Christian. On that date, Respondent e-mailed Ms. Tague a copy of his February 17, 2017 demand letter he had previously sent to Richard Grayla. Respondent requested that Ms. Tague respond as soon as possible because the statute of limitations for Christian’s claim required him to file suit by or before November 28, 2017.

On or about October 24, 2017, Respondent and Ms. Tague verbally agreed to settle Christopher’s claim for $32,500, and Christian’s claim for $40,000. When Respondent reached this agreement with Ms. Tague, he knew that Christian had died, that he had not disclosed that fact to anyone at Sedgwick, and that he no longer had her authority to settle her claim for $40,000, or any amount.

 On October 24, 2017, Ms. Tague sent an e-mail to Respondent regarding the release of Christian and Christopher’s claims. In that e-mail, Ms. Tague asked Respondent to have both Christopher and Christian complete the claim release forms in order to finalize their settlements. Respondent received her e-mail shortly thereafter, on October 24 or 25, 2017.

On October 25, 2017, Christopher went to Respondent’s office and signed his claim release form. Also on that date, Respondent directed Christopher to sign Christian’s name on her purported claim release form. Christopher signed Christian’s name on her claim release form. Respondent did not direct Christopher to initial the signature or make any other notation that would indicate that Christopher, and not Christian, had signed Christian’s name to the claim release form.

 Also on October 25, 2017, Respondent sent a letter to Ms. Tague, which included Christopher’s signed claim release form. In that letter, Respondent informed Ms. Tague that he hoped to have Christian’s claim release form to her as soon as possible.

By November 28, 2017, the two-year statute of limitations to file Christian’s personal injury claim had run, and Respondent had not fully settled Christian’s claim with Sedgwick, nor had he filed a personal injury claim on behalf of her estate.

In January 2018, in the course of reviewing open claims, Sedgwick discovered that Christian died in June 2016. Upon learning that information, Sedgwick began a fraud investigation because Respondent had continued to pursue Christian’s claim after her death, never notified Sedgwick of her death, and had not presented or filed a claim on behalf of her estate.

He also is charged with failure to preserve the claims within the statute of limitations. (Mike Frisch)