Wal-Mart Set to take $470,000 from brain-damaged former employee Deborah Shank

When we first heard about Wal-Mart’s plan to sue former employee Deborah Shank for the money the company spent on her health care, we did everything we could to raise awareness and help her out. After a near-fatal collision with a semi-truck, Deborah was brain-damaged in need of permanent full-time care. Now, Wal-Mart is poised to leave her penniless too.

It takes Wal-Mart less than 38 seconds to earn the $470,000 its suing the Shanks for. For a family dealing with a debilitating injury, however, that’s a small fortune. The company has recently lauded its new employee health care plan, but cases like Deborah Shanks’ show that Wal-Mart’s priorities lie only in its bottom line, without regard for its employees’ well being.

But there’s still time for Wal-Mart to do the right thing. The Wal-Mart Foundation, The Employee Fund, the Walton Family Foundation, or CEO Lee Scott personally- could all chip in to reimburse Mrs. Shank, doing the right thing by a hard-working former employee and saving their company a lot of bad publicity.

(Indeed, Wal-Mart Watch sent official letters to all three foundations asking they consider matching the amount we raised in an online fundraiser. We received responses from none.)

The Shank story remains a tragedy regardless, but action from Wal-Mart would be better late than never. If ever there was a Wal-Mart employee who deserved a little help, it’s Deborah Shank.

Brain-damaged ex-worker must pay $470,000 to Wal-Mart [St. Louis Post-Tribune (Mo.)]

The family of a Missouri woman must reimburse Wal-Mart for nearly a half-million dollars in medical expenses now that the U.S. Supreme Court has refused to review her case.

The court on Monday let stand a ruling by the 8th Circuit Court of Appeals in St. Louis requiring Debbie Shank of Cape Girardeau County to pay nearly $470,000 to Wal-Mart.

The appeal was the last legal recourse for the family of the 52-year-old Shank, a mother of three who was critically injured in a car accident eight years ago. She suffered a brain injury that took her memory and left her with very little ability to move or communicate. She has lived in a nursing home since she was released from the hospital.

“It’s been kind of hard on us,” Nathan Shank, Debbie Shank’s 17-year-old son, said Monday when told about the court’s decision.

Nathan Shank said that with her case in limbo, his mother already had lost a private caregiver and might be moved out of her private room in the nursing home.

According to legal documents, Shank’s medical bills — totaling $469,216 — were covered by a health insurance program at Wal-Mart, where Shank worked nights stocking shelves.

Her family later settled a lawsuit with the trucking company whose driver was involved in the accident. After attorneys’ fees and expenses, $417,477 was put in a trust for Shank’s care. That settlement money, plus $51,739 that Shank will have to pay out of pocket, must be paid to Wal-Mart.

As is common for employer-sponsored health plans, Shank’s insurance required full repayment of medical expenses if she received money from a lawsuit.

Daphne Moore, a Wal-Mart spokeswoman, said the company sued “out of fairness to everyone who contributes” to the plan.

“This is a tragic situation,” Moore said. “The reality is that the health plan is required to protect its assets so that it can pay future claims for other associates and their family members.”

The Supreme Court gave no explanation for its decision.

Posted by Media Team on Tuesday, March 18, 2008

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