Insurer's Conduct Warranted Punishment but Not to the Tune of $145 Million
American Agent & Broker › Vol. 76 Nbr. 8, August 2004
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Summary
A man in Utah was involved in an auto accident that disabled one person and killed another. The man's auto liability insurance limit was $25,000. His insurer chose not to settle the case, which proceeded to a trial that resulted in a $135,000 judgment against the man. The insurer refused to pay the judgment and instead suggested that the man and his wife cover it by selling their house. Although the insurer eventually paid the judgment, the insureds sued for bad faith. The jury awarded the insureds $2,086.75 in special damages, $2.6 million in compensatory damages, and $145 million in punitive damages. The trial judge reduced the compensatory damage award to $1 million and the punitive damages award to $25 million.
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Insurer's Conduct Warranted Punishment but Not to the Tune of $145 Million
A man in this Utah case was involved in an auto accident that disabled one person and killed another. The man's auto liability insurance limit was $25,000. His insurer chose not to settle the case, which proceeded to a trial that resulted in a $135,000 judgment ag...
See the full content of this document
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