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Borgman v. State Farm Insurance Co.6/9/1999
FOR PUBLICATION
Appellants-plaintiffs Estie and Dennis Borgman (collectively, the Borgmans), appeal the trial court's dismissal of their complaint against the appellees State Farm Insurance Company (State Farm) and Sugar Creek Animal Hospital (the Animal Hospital) for lack of subject matter jurisdiction.
Specifically, the Borgmans make the following allegations:
"(1) the trial court erroneously determined that the Worker 's Compensation Act (the Act) barred their claims for negligence and the bad faith denial of Estie's request for worker 's compensation benefits in the trial court because their cause of action was beyond the scope of the Act; and (2) the Act is unconstitutional because it violates the "open courts" provision of Article 1, Section 12 of the Indiana Constitution."
FACTS
On July 24, 1995, while Estie was working at the Animal Hospital in Greenfield, she fell in one of the kennels and injured her arm and neck. That afternoon, Estie sought medical care from her family physician because the pain in her arm had worsened. State Farm, the worker 's compensation insurance carrier, paid for that doctor visit. The Worker 's Compensation Board (the Board) determined that Estie had been injured through a fall in the course and scope of her employment with the Animal Hospital.
On February 19, 1996, Estie resigned from her employment at the Animal Hospital. Three days later, she returned to her family physician seeking treatment for shoulder and neck pain. That physician referred her to a neurologist, Dr. John Chase, for further diagnosis and treatment. On March 6, 1996, Dr. Chase determined that Estie had "tenderness over the supraspinatus and in the low cervical paraspinals on the left" and advised treatment consisting of pain medication and anti-inflammatory drugs. R. at 44. On April 24, 1996, Dr. Chase advised Estie that she could return to work with severe restrictions and informed her that he would conduct a follow-up examination in three months. On May 13, 1996, however, Estie returned to her family physician seeking further medical attention because of increasing pain in her shoulder and arm. Following this visit, Estie was advised that the Animal Hospital was claiming that her condition was not the result of a work-related injury and was denying worker 's compensation coverage. Thereafter, on June 25, 1996, Estie was evaluated by Dr. John Shay, a physician appointed by State Farm. Dr. Shay's diagnosis revealed that Estie sustained damage to a portion of her neck and advised that surgery was necessary to eliminate compression of the nerve root. Notwithstanding the diagnosis and recommended treatment plan, the Animal Hospital and State Farm denied Estie's claim on July 29, 1996.
On November 21, 1996, Estie filed an Application for Adjustment with the Board. On November 10, 1997, State Farm, through counsel, informed Estie that it desired to have her evaluated by a different attending physician. Following that evaluation, State Farm agreed to provide worker 's compensation medical benefits to Estie.
On July 22, 1998, the Borgmans filed a complaint for damages against State Farm and the Animal Hospital, contending that the defendants had wrongfully denied Estie's claim for worker's compensation benefits for approximately eighteen months. Additionally, the Borgmans alleged that State Farm acted in bad faith and in contravention of their duties under the Act in denying her claim for benefits. R. at 46. Thus, the Borgmans asserted that State Farm's continuing bad faith denial of her request for benefits was "willful and wantonly negligent and resulted in injuries to that were far beyond the scope that would h
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