Professional Negligence Law Reporter

Professional Underwriters Liability Insurance Co. (PULIC) received notice in 2012 that its insured, physician Pawankumar Jain, was accused by the New Mexico Medical Board of overprescribing opioids, resulting in the deaths of at least 17 patients. After learning of these deaths, PULIC allegedly canceled Jain’s insurance policy immediately. Additionally, PULIC allegedly failed to record the 17 patient deaths in its claims system. A year later, the families of two of the decedents, Ruben Bonilla Jr. and Serina Clark, sued Jain for medical negligence. His bankruptcy estate paid the two families approximately $680,000 plus assignment of his insurance bad faith suit against PULIC.

Representatives for Bonilla and Clark sued PULIC, alleging breach of contract and violation of New Mexico’s Unfair Insurance Practices Act.

The jury awarded $52 million in punitive damages.

Citation: Murphy v. Prof’l Underwriters Liab. Ins. Co., No. D-202-CV-2016-04582 (N.M. 2d Jud. Dist. Ct. Jan. 17, 2023).

Plaintiff counsel: AAJ member Mollie McGraw, Las Cruces, N.M.; and AAJ members G. Benjamin Davis and Zackeree Kelin, both of Albuquerque.