Oregon’s highest court recently found that a $20.7 million dollar punitive damages award in an insurance bad faith case, which was approximately sixteen times the actual damages awarded in the case, was excessive and likely unconstitutional.  Goddard v. Farmers Ins. Co., No. 90005-03204 (Or. March 6, 2008).  In so finding, the court held that insurance bad faith claims, as claims for economic injury, are subject to a limit on punitive damages of four times the actual damages.  Any higher punitive damages award, the court found, would likely be found unconstitutional by the United States Supreme Court.

For a full copy of the Goddard opinion, please click here.