Article ID: b4131163124561b8ea9449ba54a1187b8f9d40d28a454b21c9e37d7fcf0d95a4
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URL: https://www.businessinsurance.com/iowa-court-orders-dismissal-of-workers-bad-faith-claim/
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Iowa court orders dismissal of worker’s bad-faith claim - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Iowa court orders dismissal of worker’s bad-faith claim by Louise Esola Claims Disputes , Workers Comp Coverage , Workplace Safety Jul 24, 2026 An Iowa appeals court ruled Wednesday that the city of Des Moines had a reasonable basis to dispute a municipal worker’s cumulative knee injury claim, requiring dismissal of his bad-faith lawsuit. In Wall v. City of Des Moines , the Iowa Court of Appeals reversed a trial judge’s refusal to grant the city summary judgment and remanded the case for dismissal. Jeffrey Wall, who worked for the city from 1999 until his retirement in 2021, alleged that years of bending, lifting and climbing in and out of trucks caused a cumulative injury to his left knee. He underwent knee replacement surgery in December 2021 and subsequently sought workers compensation benefits. The city denied liability, arguing that Mr. Wall failed to provide notice of his work-related injury within the 90 days required under Iowa law. A workers compensation deputy rejected that defense and awarded permanent partial disability and penalty benefits. The Iowa workers compensation commissioner affirmed, and the city did not seek judicial review. Mr. Wall then sued the city for bad-faith denial of benefits. The appeals court’s majority said a bad-faith claim cannot proceed when the employer’s position was “fairly debatable” based on either the facts or the law. The court said Iowa’s amended workers compensation law starts the notice period when an employee knows or should know that an injury is work-related, regardless of whether the employee recognizes that the condition is serious enough to be compensable. Mr. Wall testified that he had suspected for several years that his knee pain was related to his work but did not report it because he did not want to be placed on light duty. The court said the city’s notice defense was fairly debatable under the amended law and under the now-defunct discovery rule, given conflicting evidence concerning when Mr. Wall recognized the seriousness of his injury and informed his supervisors. The majority also said the award of penalty benefits for an inadequate investigation did not, by itself, establish bad faith when the city had an objectively reasonable basis for disputing the claim. One judge dissented, arguing that the city’s investigation and its reliance on legal arguments developed after the denial presented factual issues that should be decided by a jury. Related News Appeals court overturns nearly $10 million award to disabled former officer July 24, 2026 Fine wine aged in mold? 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