Ex-Baxter Healthcare worker settles policy case in High Court

A woman who sued over an alleged failure to pay out income protection payments under an insurance policy after she suffered serious pain has settled her High Court action against her former employers and an insurance company.

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

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.

However, her application to be paid under the terms of that group policy was refused.

Arising out of the refusal, Mrs Prendergast, of Newtown, Clogher, Claremorris, Co Mayo, sued both Baxter Healthcare and Irish Life Insurance.

The claims were denied.

On the third day of the hearing yesterday, Mr Justice Donald Binchy was told the case has been settled and could be struck out.

No details of the settlement, which are understood to be confidential were given in open court.

Mrs Prendergast had sought orders for the specific performance of Baxter’s income protection plan which was underwritten by the insurer.

She also sought damages for alleged breach of contract and misrepresentation.

Her side contended an award of exemplary damages should be considered by the court because the refusal to pay out the claim as being “utterly unfair” and “utterly unjustified”.

Ms Baxter’s lawyers argued Mrs Prendergast has no claim against it, as it had done everything it could to process her claim under the income protection plan.

It was a decision by the insurer, which it had no hand act or part in, to refuse her claim it argued.

Irish Life also rejected allegations it had been negligent in rejecting Mrs Prendergast’s claim.

A report complied on Irish Life’s behalf by a healthcare professional suggested she had exaggerated her symptoms.

In her evidence to the court Mrs Prendergast rejected the contention she had exaggerated her symptoms.

She said she remains in pain and requires medication.