Former Baxter Healthcare worker sues over failure to pay income protection

A woman has brought a High Court action over an alleged failure to pay out income protection payments under an insurance policy after she suffered serious pain.

Rose Prendergast, 64, had to cease working at Baxter Healthcare’s Castlebar factory in 2002 due to health problems, including pain in her legs, back and neck.

The court heard she was diagnosed with fibromyalgia, which is a medical condition characterised by chronic widespread pain.

She was not able to return to work and in agreement with the company in 2008, her employment was terminated.

She claimed benefits under the terms of a group income protection plan Baxter had with Irish Life.

She claims her application to be paid under the terms of that group policy has been refused.

Ms Prendergast, of Newtown, Clogher, Claremorris, Co Mayo, claims she is entitled to be paid under the scheme and has sued Baxter Healthcare and Irish Life Insurance.

She seeks orders for the specific performance of Baxter’s income protection plan which was underwritten by the insurer.

She also seeks damages for alleged breach of contract and misrepresentation. The claims are denied.

Gabriel Gavigan, counsel for Baxter, said Mrs Prendergast has no claim against Baxter.

The company did everything it could to process her claim under the income protection plan. Ultimately, it was a decision by the insurer to refuse her claim, counsel said.

Irish Life rejected allegations it had been negligent in rejecting Ms Prendergast’s claim. The court also heard that a report on its behalf by a healthcare professional suggested she had exaggerated her symptoms.

John Jordan, counsel for Ms Prendergast, told Mr Justice Donald Binchy this was a case where an award of exemplary damages should be considered by the court.

He described the refusal to pay out the claim as being “utterly unfair” and “utterly unjustified by people and corporations who ought to have known better and perhaps did know better.”

They had thought Ms Prendergast, who lives on a small farm with her husband in the West of Ireland, could not take them on, he added.

In evidence, Ms Prendergast told the court she remains in pain and requires medication. She started working at Baxter in the early 1990s.

She first experienced problems in the mid-1990s and had to stop in 2002 due to the pain.

She said she is unable to do many of the things she was once able to do and was thankful for the support given to her by her husband and family.

The case continues.