SAN JUAN CAPISTRANO : Jury Awards $610,500 in Insurance Lawsuit

A San Juan Capistrano couple who alleged that a health insurance company failed to provide the coverage it promised has been awarded $610,500 by a jury, their attorney said.

Fred and Mary Jane Hadland contended that Texas-based NN Investors Life Insurance Co. failed to adequately cover a $25,000 medical bill that Mary Jane Hadland incurred during a cancer treatment in November, 1986, according to their attorney, Margaret K. Maas.

The couple further alleged that they were deceived into buying the policy by various insurance groups and associations that were linked to the insurance company, Maas said. Those parties were listed as co-defendants in the suit.

Maas said the other groups pretended to search for the best medical plan for the Hadlands when in fact those groups “were under the same leadership” as the insurance company.

An Orange County Superior Court jury awarded the Hadlands $163,000 in general damages and $447,500 punitive damages to be paid by seven defendants.

Margaret Levy, an attorney for the defendants, contended that the policy was fully explained to the Hadlands. “They got exactly what they paid for,” she said. “They thought it was great while they were saving money.” But when the bills came due, they were dissatisfied, Levy said.