LOUISVILLE, Ky. -- David Bridgers, general counsel for Thorntons Inc., Louisville, Ky., doesn't counter-attack those who file bogus injury claims against his company because it's his job. He does itsometimes at a considerably higher cost than the damages soughtbecause it's right.
We invested $20,000 [in a legal battle] and could have settled for $500, in one such case, Bridgers said. It was well worth it. I'd be on antacids every day if I contributed to someone's theft. I don't want people to be on Thorntons' welfare'.
Bridgers [image-nocss] made his comments during one of the breakout sessions at the CSP Liability & Risk Forum in Chicago, sponsored by BIC Consumer Products, Patco Food Safety Consultants and Tidel Engineering.
While we have a duty to settle righteous claims, it's just as important, and just as moral to not settle claims that are not righteous, Bridgers continued. It works for us from a business standpoint as well. Over the last five years, for example, as we've grown in number of stores, in number of employees and customer transactions, our insurance experience has gone down every year.
Bridgers said there is another reason to fight sketchy injury claims: a company's reputation. A company that pays nuisance money merely to stave off publicity and save on court fees is only inviting more claims, Bridgers and others at the roundtable meeting agreed. Bridgers said the message Thorntons sends is read not only by customers and local lawyers but also its own employees, who may think hard before filing iffy workers' compensation claims.
Bridgers comments resonated with others at the meeting. We were settling everything, said Stephanie Thompson, corporate risk manager for LaCrosse, Wis.-based Kwik Trip Inc. We're working now to fight more of the claims.
Bridgers said retailers need cooperation from three parties before battling back: management, the retailer's insurance company and lawyers. Insurance companies can be part of the problem, said Bridgers, because they may also want to settle claims as quickly as possible.
He suggested regular meetings with insurance brokers, and safety audits in conjunction with financial audits. Bridgers also mentioned that retailers with safety commissions, for instance, could be eligible for discounts on their workers' compensation rates. Thompson said her company has quarterly meetings with its broker. Thorntons does so monthly. Our claims keep going down, Bridgers said.
To arm itself with as much evidence as possible, Thorntons teaches its managers to handle any liability incident swiftly. They are to file a detailed, same-day incident report, signed and dated, as well as statements from customer witnesses, and they are to freeze the surveillance-video grab of the time period.
The last step is obvious, in case the incident was captured; however, according to Thorntons associate general counsel Shawn Goodpaster, a video without the incident is valuable as well. Even if the video shows nothing, save the video to show that it shows nothing, he said.
Bridgers added that in the cases of slip-and-fall, especially during the winter, an office worker at Thorntons will go to a weather Web site and print out any relevant information concerning that day's conditions to help defend the case.
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