Mom of 10 wins $11.3M verdict after insurer denied husband’s COVID death claim

OMAHA  — Vaneza Ramos said she felt a sense of peace and vindication upon hearing a jury verdict that awarded her $11.3 million in a case against an insurance company that denied a claim after her husband died of COVID-19.

Beyond the dollar value, she and the couple’s 10 children are happy to see their dad’s reputation affirmed, as she said he was portrayed as a liar.

“It was really difficult,” Ramos said of the loss of her husband during a pandemic and with a house filled with children asking for their father. “Physically and emotionally, we’re now more stable,” though the economy has made times tough, she added.

Her husband, Jose Gaytan, died May 31, 2020 — just 20 days after Ramos gave birth to their last baby. Farmers New World Life Insurance rejected their $350,000 life insurance claim, saying Gaytan had a history of a heart attack and that a post-death investigation showed he failed to disclose the medical condition on his application. 

The company instead tried to send a $17,360 check, the amount Gaytan had paid into the policy.

Not only did a Douglas County jury side earlier this year with Ramos on the value of the policy — but a second jury on Oct. 16 said Farmers should pay the $11.3 million for bad-faith damages. 

Her lawyer, Ross Pesek, said the award should provide some material relief to the South Omaha family that managed without the life insurance benefit to keep afloat their La Michoacana frozen dessert and diner businesses following the death of owner and head of household Gaytan.

Pesek said the jury factored in emotional distress and financial hardship when determining an amount. The family’s truck was repossessed. She fell behind on vendor bills, impacting their business reputation. Her mother moved in to help; an 18-year-old son set his plans aside to work at the business. They borrowed money.

Pesek called the case — believed to be a state rarity as a life insurance jury case involving a COVID death — a win also for “civil justice.”

He referenced the biblical story of David and Goliath to emphasize an imbalance of power between a widow raising 10 children, two with special needs, and one of the nation’s largest multiline insurance groups that has resources to “delay, deny, defend” for years.

“It shows there can be justice in our community and justice in our world,” Pesek said.

Expanding business, family

Raised in Coahuila, Mexico, Gaytan arrived in the U.S. seeking a better future and in 2008 opened his first ice cream shop, which operates mobile paleta carts as well, on the South Omaha commercial corridor.

He and his wife, Vaneza, blended a family, each bringing two children to their 2009 marriage before having six more children together. The couple opened a second store in the area and also distributed their frozen treats to other merchants. Ramos told friends her husband wanted a big family. He lived to see their youngest son born on May 11, 2020.

Gaytan had not been feeling well and died May 31 after being hospitalized for a few days. He was 55  years old. COVID-19 was the cause, according to the death certificate. 

In September 2020, Farmers declined to pay the $350,000 policy. 

Ramos’ team argued that the information Farmers identified as faulty on the application was provided by its own agent, Michael Powers. Pesek said Powers had previously sold Gaytan a life insurance policy from another company, then approached him about changing to Farmers. 

Ramos produced a text message chain between her and Powers, which showed the agent knew Gaytan was hospitalized for his heart in August 2018. According to court transcripts, Powers said he thought Gaytan had “heartburn,” not a heart attack. 

Attorneys for Ramos argued further that Farmers had conducted a medical history exam as part of her husband’s application, and that his medication and conditions were disclosed. 

“Anyone with Google knows that lisinopril is used to improve survival after a heart attack,” Ramos said in court records. “Farmers cannot say they didn’t know my husband had a heart attack.”

The attack happened a few months before the Farmers life insurance policy took effect and about two years before Gaytan died of COVID. 

The Farmers legal team did not respond to a request for comment, or to say whether the insurance provider would appeal. Powers could not be reached for comment.

Long, twisty road

The case has gone through a number of court actions. Initially, District Court Judge Katie Benson granted summary judgment in favor of Farmers and Powers. A state appeals court, however, returned the case to Douglas County District Court for further proceedings.

The first jury in March subsequently found that Farmers breached the insurance contract, rejecting the allegation of fraudulent misrepresentation. The second jury this month considered whether the insurer acted in bad faith and put a monetary figure on harm caused, said Pesek, who represented Ramos along with Alejandra Ayotitla, both of South Omaha-based Pesek Law.

Other attorneys represented Ramos earlier.

Pesek, who represents many Spanish-speaking clients, said the verdict confirmed his faith in peer juries “delivering high-quality justice that is free from racial prejudice and bias.”

He said Wednesday that Ramos has not yet been paid and that he admires his client’s strength.

The family business was challenged during the pandemic and later amid general community apprehension about U.S. Immigration and Customs Enforcement agents in South Omaha, Ramos said. She said ICE activities have led to reduced shopping and commercial activity in the area. 

At one point in 2023, Ramos testified before a Nebraska legislative committee on pandemic-related relief for North and South Omaha. She teared up then as she spoke about her husband and his death, which she said set back plans for their future.

Family ‘recovering’ 

Pesek said the jury decision was “validating and restorative” for the family but that it continues to recover from the loss of Gaytan.

Isaac, born just before his dad’s death, is now six years old Bryan, at 24, continues to help with the family business but testified that someday he’d like to open his own business in a skilled trade such as plumbing. 

Wednesday afternoon, both La Michoacana locations were open, with customers trickling in and throughout the South Omaha business corridor.

Ramos said she plans to continue the family business and keep life as normal as possible for her children.