Settlement Reached in Lawsuit Over Lou Gehrig's Disease Death

Strategic Insights -

A federal judge in Massachusetts approved a settlement between the families of Dan Allen, a former head football coach who died of Lou Gehrig's disease, and Zurich and American International Specialty Lines Insurance Co. The lawsuit alleged that toxins used by a contractor insured by the companies contributed to Allen's illness. Zurich and American International Specialty Lines Insurance Co. will pay a combined $681,500 to settle the case, with the Allen's family set to receive about $340,327 after attorneys' fees and costs. The family had initially settled with American International Group Inc. for $281,500, and then Zurich contributed $400,000.

Key Takeaways:

  • The lawsuit alleged that toxins used by a contractor insured by Zurich and American International Specialty Lines Insurance Co. contributed to Dan Allen's illness with Lou Gehrig's disease.
  • The companies will pay a combined $681,500 to settle the case.
  • The Allen's family is set to receive about $340,327 after attorneys' fees and costs.
  • The family had initially settled with American International Group Inc. for $281,500, and then Zurich contributed $400,000.
  • The court documents show that Dan Allen was present at the school's athletic facility when Martin Surfacing Inc. resurfaced the floor of the field house in 2001, using a chemical alleged to have accelerated the disease.
  • Dan Allen was diagnosed with ALS in the spring of 2003 and died in May 2004.
  • The defense challenged expert witnesses the Allen family planned to use at trial and highlighted potential flaws in the plaintiff's case on causation.
  • The judge cited contested insurance coverage issues and the fact that Allen would have eventually succumbed to ALS as working against the family.
  • Most members of Zurich Financial Services have a Best's Financial Strength Rating of A (Excellent).
  • American International Specialty Lines Insurance Co. currently has a rating of A (Excellent).

Statistics:

  • $681,500: The combined amount Zurich and American International Specialty Lines Insurance Co. will pay to settle the case.
  • $340,327: The amount the Allen's family is set to receive after attorneys' fees and costs.
  • 2001: The year Martin Surfacing Inc. resurfaced the floor of the field house at the school's athletic facility.
  • 2003: The year Dan Allen was diagnosed with ALS.
  • 2004: The year Dan Allen died.
  • $281,500: The amount the Allen's family initially settled with American International Group Inc.
  • $400,000: The amount Zurich contributed to settle the case.

Sources:

  • A. M. Best Company, Inc.
  • U.S. District Court in Massachusetts
  • Court records from the U.S. District Court in Massachusetts
  • American International Group Inc.