Big Box, Small Heart: Wal-Mart Wins Judgment Against Brain Damaged Woman to Get Back Insurance Money

Wal-Mart has always been a target for many people who a monster corporation that strangles local stores and offers low-paying jobs with little benefits to locals. A story, however, in Jackson, Missouri has left many gasping. Wal-Mart has successfully sued Debbie Shank, a brain damaged former employee, for insurance money that she received before an award in a car accident case. Shank is not only struggling to survive but she lost her son recently in Iraq.

Shank, 52, was left with severe brain damage after a traffic accident in May 2000. She lost much of her short-term memory and left her in a wheelchair and living in a nursing home. She constantly asks about her son and when told that he is dead, she experiences the death as if for the first time due to her loss of memory — breaking down in tears.

Shank’s problems began when she started work for Wal-Mart to stock shelves. She joined the health plan, which paid out $470,000 for her total disability. However, two years after the accident, she and her husband won a $1 million judgment against the trucking company responsible for her injuries. Once fees and costs were paid, this resulted in just $417,000 being placed in a trust account for Debbie’s care. When Wal-Mart found out about it, they sued to get the money under a provision that said that the company could seek to recoup medical expenses if an employee collects any money in a lawsuit.

The Shanks didn’t notice in the fine print of Wal-Mart’s health plan policy that the company has the right to recoup medical expenses if an employee collects damages in a lawsuit.

Wal-Mart won and one week later, the Shanks son was killed in Iraq.

Many have wondered why the $90 billion business could not make a human judgment in this case, particularly given the fact that the money was not used in some scam or high living. Indeed, the Shanks had to divorce to get needed Medicaid money to continue to support Debbie. Jim, 54, is recovering from prostate cancer and has to work two jobs to pay the bills.

Wal-Mart spokesman John Simley, who called Debbie Shank’s case “unbelievably sad,” replied in a statement: “Wal-Mart’s plan is bound by very specific rules. … We wish it could be more flexible in Mrs. Shank’s case since her circumstances are clearly extraordinary, but this is done out of fairness to all associates who contribute to, and benefit from, the plan.”

Really? This is the first time that I heard of a company that MUST sue. One would hope that the brain-damaged-memory-impaired-son-killed-financially-struggling-woman-with-the-cancer-victim-husband case might not arise that often for Wal-Mart.

Notably, this store just lost an abusive trademark lawsuit designed that seemed designed to crush an Internet critic, click here.

For the full story, click here.

28 thoughts on “Big Box, Small Heart: Wal-Mart Wins Judgment Against Brain Damaged Woman to Get Back Insurance Money”

  1. Apparently the shoppers have spoken and Walmart has agreed that Debbie Shank can keep her money. While tone deaf on compassion, they are apparently acutely sensitive to expressions of public outrage. Hey maybe we are on to something after the recent success against the DOJ. Shocking but public opinion does seem to matter in a democracy. Quick get that memo to VP Cheney, who thinks it doesn’t.

  2. Dear Mr. Turley,

    I sent your story to a former Wal-Mart employee who worked in the workers comp area. This person claims to be a liberal Democrat but I have my suspicions. Below is the answer I recieved with their comments interwoven to your story as they sent it to me. How do you respond to someone like this?

    Thanks, Stuck in Bentonville……

    I couldn’t stir up a WM employee or defender, so I had to do it myself.
    You are right that we are a capitalistic society with no room for empathy/patriotism. I think you’ve known this forever and everything you and others have done have not changed it.
    Why? because of the greed!

    Regarding CNN, et al – apparently they must be having slow news days. The WS Journal reported this 11/20/07…And they show the Mrs. got $700K and the Mr. got $200…
    Happy reading!
    ——————————————————————————–

    Wal-Mart has always been a target for many people who a monster corporation that strangles local stores and offers low-paying jobs with little benefits to locals. I get their drift, but that sentence structure leaves it unclear exactly what the writer is saying…? A story, however, in Jackson, Missouri has left many gaspingL Wal-Mart has successfully sued Debbie Shank, a brain damaged former employee, for insurance money that she received before an award in a car accident case. Shank is not only struggling to survive but she lost her son recently in Iraq. Am I to assume she is struggling to survive because of the car accident? You’ll hate me for saying it, but her son’s death has nothing to do with Wal-Mart – or am I missing something?

    Shank, 52, was left with severe brain damage after a traffic accident in May 2000. She lost much of her short-term memory and left her in a wheelchair and living in a nursing home. She constantly asks about her son and when told that he is dead, she experiences the death as if for the first time due to her loss of memory — breaking down in tears. Hate to say it, but if they can rely upon her not remembering that he is dead, why don’t they tell her he’ll be coming to visit next Tuesday. That will make her happy and she won’t really remember on Tuesday that he should be there. This way, she’ll always be happy when his name comes up.

    Shank’s problems began when she started work for Wal-Mart to stock shelves. How did her problem start because she got a job at WM? She joined the health plan, which paid out $470,000 for her total disability. This doesn’t sound like the pathetic health plan everyone always says WM offers its employees, but I guess that isn’t what this story is about. However, two years after the accident, she and her husband won a $1 million judgment against the trucking company responsible for her injuries. Once fees and costs were paid (Question: Why where “fees and Costs” more than what the victim was awarded?, this resulted in just $417,000 being placed in a trust account for Debbie’s care. When Wal-Mart found out about it, they sued to get the money under a provision that said that the company could seek to recoup medical expenses if an employee collects any money in a lawsuit. The choice WM and any medical insurance provided could have is to never pay a dime in a situation where another party might be deemed responsible eventually. Frankly, I’m surprised their health plan paid at all since medical bills from an accident usually go to the party at fault’s insurance company – the motor vehicle company for the trucker in this case. Her health plan wouldn’t have paid any bills if her injury was from a work-related injury, If she lied to get payment, she could have lost all her rights to WC disability rating. So there J

    The Shanks didn’t notice in the fine print of Wal-Mart’s health plan policy that the company has the right to recoup medical expenses if an employee collects damages in a lawsuit. I don’t think this is a matter of fine print. Usually when the court awards money to cover past expenses and future costs, they give the money directly to the party who paid the past expenses and create a trust account to pay the future costs. This keeps the family from drinking up mom’s nursing home payment. Oh, I forgot, she got on Medicaid and they pay her NH bill…and doctor…and meds. Now, why is it she needs the trust account?

    Wal-Mart won and one week later, the Shanks son was killed in Iraq. That’s too bad and I think they should hang Donald Rumsfeld by this gonads for this totally tragic war. However, I don’t think WM had anything to do with his death.

    It doesn’t say if the boy was married or not. His death would provide his beneficiaries with $100,000 death benefit plus another $400,000 if he bought the military life insurance policy. Of course, the article did say if he was there in the military.

    Many have wondered why the $90 billion business could not make a human judgment in this case, particularly given the fact that the money was not used in some scam or high living. It has nothing to do with how it is to be spent. It was awarded to pay for the medical costs incurred because the truck driver caused an injury to her. Since she and hubby didn’t pay those $470,000 in medical bills, the insurance company which did pay them should be reimbursed. I am very surprised the Court didn’t make the payment out of the awarded funds directly to the WM medical plan that paid it.Indeed, the Shanks had to divorce to get needed Medicaid money to continue to support Debbie. That sucks! Jim, 54, is recovering from prostate cancer and has to work two jobs to pay the bills. This makes it sound like she made so much money as a stocker, that he has to work extra to make up for her income loss. Oh, I forgot, she hasn’t been working for years

    Wal-Mart spokesman John Simley, who called Debbie Shank’s case “unbelievably sad,” replied in a statement: “Wal-Mart’s plan is bound by very specific rules. … We wish it could be more flexible in Mrs. Shank’s case since her circumstances are clearly extraordinary, but this is done out of fairness to all associates who contribute to, and benefit from, the plan.” Hear, hear – How about all 1.4 million Wal-Mart employee’s pitching in to help these folks? Let’s see, $470,000 divided by 1,400,000 “associates” is 33 cents apiece.

    Or they could appeal to the Walton Family Foundation which gave away $188,906,015.18 in 2006. (see below)

    Really? This is the first time that I heard of a company that MUST sue. If the court had done it correctly, there wouldn’t have been a need to “sue.” One would hope that the brain-damaged-memory-impaired-son-killed-financially-struggling-woman-with-the-cancer-victim-husband case might not arise that often for Wal-Mart. Since when does money get given out based upon the situation rarely occurring?

    CNN reported:

    “Luckily, she’s oblivious to everything,” he said. “We don’t tell her
    what’s going on because it will just upset her.”

    I wonder if they’ve told her she isn’t Mrs. Shank anymore?

    WALTON FAMILY FOUNDATION SUMMARY OF 2006 GRANTS*

    Focus Area Grant Amount

    * Complete listing of grantees available at http://www.waltonfamilyfoundation.org.

    K-12 Education Reform

    Public Charter School Initiative $55,439,748.32

    School Choice Initiative $27,696,588.44

    District and Arkansas Education

    Reform and Other Education Grants $8,992,187.00

    K-12 Education Reform Total $92,128,523.76

    Environment

    Fisheries Management $5,710,690.50

    Marine Conservation $11,115,154.00

    Freshwater Conservation $107,000.00

    Other Environment Related Grants $2,697,519.92

    Environment Total $19,630,364.42

    Delta Region of Arkansas and Mississippi Total $4,053,787.00

    Northwest Arkansas

    Amenities $18,376,102.00

    Education $1,527,920.00

    Diversity and Other Northwest Arkansas Related Grants $1,733,667.00

    Northwest Arkansas Total $21,637,689.00

    Special Initiatives

    Bush Clinton Katrina Fund (Hurricane Relief) $8,000,000.00

    Walton International Scholarship Program $35,345,000.00

    Other Special Initiatives $6,887,517.00

    Special Initiatives Total $50,232,517.00

    Total Grants of Less Than $10,000 Each $1,223,134.00

    Total 2006 Grants $188,906,015.18 CONTACT INFORMATION:

    Walton Family Foundation, Inc.

    Post Office Box 2030

    Bentonville, Arkansas 72712

    Phone: (479) 464-1570

    Fax: (479) 464-1580

    info@wffmail.com

    I found this from the Wall Street Journal – very interesting and the LET are excellent

    http://online.wsj.com/public/article/SB119551952474798582.html

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  3. Very concerned:

    Our views matter every four years or so, but during the interim money talks and, while the Fortune 500 are a diffuse power, their influence is always felt. Just ask Eliot Spitzer.

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