Health Insurance Provider’s “Cavalier Attitude” Toward Document Production
And Repeated Bad Faith Discovery Violations Warranted Severe Sanctions |
eLessons Learned
In Wachtel v. Health Net, Inc., Judge Faith S. Hochberg of the United
States District Court for the District of New Jersey imposed severe
sanctions on Health Net Inc., a health insurance provider, and its
subsidiaries for what the court term its “flagrant disregard” of discovery
orders and its “lengthy pattern of repeated and gross noncompliance with
discovery.”  These sanctions arose in a case in which the plaintiff
beneficiaries, Zev and Linda Wachtel, had filed an ERISA action against the
Health Net defendants for breach of fiduciary duty and other wrongs
regarding the manner in which the defendants reimbursed out-of-network
claims.


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