Blue Cross Blue Shield of Michigan Considering Global Settlement
Blue Cross Blue Shield of Michigan is in negotiations to settle more than 100 lawsuits filed by former employees who were terminated after refusing to receive a COVID-19 vaccine, according to recent court records.
The potential settlement discussions come just three months after a jury awarded over $12 million to one of those employees, Lisa Domski, who had worked for the insurer for more than three decades.
Lawsuit Allegations and Discrimination Claims
Domski, an IT specialist, sued Blue Cross on the grounds of religious discrimination, arguing that the company violated her rights by refusing to grant her an exemption from its COVID-19 vaccine mandate. She claimed that receiving the vaccine conflicted with her Catholic beliefs.
Blue Cross, however, denied any discrimination, asserting that Domski lacked a sincere religious belief and that its decision to terminate her employment was justified.
Jury Award and Potential Reductions
In November, a federal jury awarded Domski approximately $1.7 million in lost wages, $1 million for noneconomic damages, and a staggering $10 million in punitive damages. However, much of that award is expected to be significantly reduced due to a legal cap on punitive damages.
During a hearing in January, U.S. District Judge David Lawson reviewed arguments about the potential reduction but has yet to issue a ruling. Domski’s attorneys have already acknowledged that punitive damages cannot exceed $300,000 under federal law.
Mediation Efforts for a Broader Settlement
In a court filing on Thursday, attorneys for both Blue Cross and Domski asked the judge to pause her case while they work with a mediator to reach a potential global resolution that could impact similar lawsuits from other former employees.
Neither Blue Cross nor Noah Hurwitz, the attorney representing Domski and many of the fired workers, provided further comments on the mediation efforts.
Broader Implications of the Settlement Talks
The outcome of these negotiations could have significant ramifications, potentially resolving over 100 individual lawsuits against Blue Cross Blue Shield of Michigan. The case has drawn attention as one of many legal battles nationwide involving employees who claim they were wrongfully terminated over COVID-19 vaccine mandates.
If a settlement is reached, it could provide a blueprint for similar cases across the country involving religious exemptions and workplace vaccine policies.
