Pa. Court Revives $8M Blue Cross Negligent Supervision Suit

Law360 (April 4, 2018, 4:50 PM EDT) -- A Pennsylvania appeals court on Wednesday revived an insurance agent’s $8 million lawsuit against a Blue Cross Blue Shield contractor over its alleged failure to halt accusations initiated by a co-worker that he engaged in homosexual prostitution in a company bathroom.

The Pennsylvania Superior Court said that a trial court judge had erred in throwing out the suit on the grounds that the defamatory remarks were not foreseeable, finding that plaintiff Eugene Freeman had properly demonstrated his employer, Inter-Media Marketing Inc., had been on notice.

“Once he reported the defamatory comments to a supervisor, the employees’ continued harassment was foreseeable to...

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