Because of the sensitivity of this case and our compassion for the Amschwand family, Spherion Corporation had initially decided to refrain from providing additional details about this complicated matter. We now feel compelled to explain our position more fully and provide more specific information about the issues surrounding the lawsuit.
We regret that this situation has caused prolonged distress to the family of our former employee Thomas Amschwand over the past seven years. We have always sympathized with the family for their loss and have made repeated efforts to resolve this situation to the family’s satisfaction.
The family received payment from our previous insurance company and Spherion offered an additional payment to both the family and its foundation, but it was refused.
Why did Spherion’s insurer refuse to pay the insurance claim?
During the original coverage period, Spherion changed insurance companies. While the new insurer did not pay out on the claim, the family was able to collect from our previous insurer. Following that, Spherion offered an additional payment to the family and the foundation it had established for our deceased employee. The family declined the additional payment, preferring to seek damages through the court system.
Why did this case go to the Supreme Court?
The Amschwand family elected to formally pursue this matter through the court system, asking the court for monetary damages. Both the trial and appellate courts held that the monetary damages sought by the Amschwand family were not available under the law and denied the request. Because the appellate court agreed with the trial court’s ruling on this matter, the Amschwand family’s last option was the U.S. Supreme Court. The U.S. Supreme Court denied review of the matter, however, leaving the lower court decisions to stand.
What else can Spherion do about this?
We have always sympathized with the Amschwand family for their loss and have made a sincere and significant effort to resolve this situation with the family. However, we respect the decision of the Supreme Court and the lower courts on this complicated legal issue.
Did Spherion act in good faith towards this employee and his family?
Yes. We believed that our insurance carrier covered this employee. When we discovered that there was an unresolved issue, we offered an additional payment to the family and its foundation to address their concerns, which they declined.
Our actions, then and now, are guided by our continuing belief in respect and dignity for the individuals involved, and a commitment to fairness and integrity for all.
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