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settlement agreement stated that ProGuard would pay to petitioner
$65,000 with additional amounts to be paid beginning 1 year from
the settlement. In addition, the settlement agreement provided
that ProGuard was to forgive, in equal amounts over 5 years, the
$128,424.60 that was owed by petitioner. The $65,000 cash
payment and $25,684.92 of debt forgiveness that was received by
petitioner in 1998 are referred to as the settlement amount. At
the time of settlement, the defendants did not report a personal
injury claim to their insurance company to cover the cost.
On October 13, 1998, petitioner and the defendants filed a
stipulation, permitting petitioner to file a second amended
complaint. Simultaneously, petitioner filed the second amended
complaint adding a cause of action for negligence. The
negligence cause of action claimed that the defendants owed to
petitioner a duty of care as “not to exacerbate” petitioner’s
diabetic condition. Petitioner claimed that the defendants
created “intolerably stressful working conditions” by harassing
petitioner while he was working, inducing him to work long days,
threatening to terminate his employment, and threatening to
reduce petitioner’s capital interest. Petitioner alleged that
this stress exacerbated his diabetic condition resulting in a
“deterioration in his overall health and a reduction in his life
expectancy”.
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Last modified: May 25, 2011