Kutak Rock is proud to announce that the firm has been recognized in Arizona Attorney Magazine’s annual roundup of Arizona’s Top Civil Verdicts for 2024. Kutak Rock earned the #1 ranking among all defense verdicts statewide for its work on Cavallo et al. v Phoenix Health Plans Inc. et al., a high-stakes case in which the plaintiffs sought over $200 million in total damages.

The case involved complex claims of bad faith insurance practices and breach of the duty of good faith and fair dealing. Plaintiff Matthew Cavallo was diagnosed with multiple Sclerosis (MS) and required regular Tysabri infusions to manage his condition. In early 2016, Cavallo’s medical provider submitted a prior authorization request to Phoenix Health Plans (PHP) for an infusion at Chandler Regional Medical Center. PHP initially denied the request, incorrectly stating that Chandler Regional was out-of-network, and that Cavallo lacked out-of-network benefits. This misinformation led to alleged delays, and Cavallo subsequently experienced a relapse of MS symptoms.

Cavallo sued PHP and other PHP related entities, asserting that the insurer acted in bad faith by unreasonably denying and delaying his treatment. PHP countered that any delays were due to miscommunications and that Cavallo declined a free dose of Tysabri offered through a drug program, which could have mitigated his damages. The jury found in favor of PHP and all defendants, concluding that the insurer did not act in bad faith, resulting in no liability in what was the largest defense victory in Arizona of the year.

The matter was defended at trial by Kutak Rock partners Paul Gerding, Jr. and Jon Schultz and associate Jasmin Chigbrow, with assistance from paralegal Cristina Moscaliuc and additional support from Kutak Rock attorneys and staff throughout the Scottsdale office.