The Supreme Court of New Jersey recently held that the New Jersey Punitive Damages Act allows punitive damages to be entered for the purposes of punishing and deterring only a specific wrongdoer, not for general deterrence.
Extra-Contractual Liability
Comparative Bad Faith Defense Not Available in Florida Suit Between Primary and Excess Insurers
By Troutman Pepper Locke on
In what appears to be a matter of first impression in Florida, a federal Magistrate Judge in the Southern District of Florida denied the comparative bad faith and comparative negligence defenses in an excess insurer’s bad faith claim against a primary insurer.
Oregon Supreme Court: Punitive Damages in Insurance Bad Faith Case Limited to Four Times Actual Damages
By Troutman Pepper Locke on
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.
Massachusetts State Court: Insured May Proceed With Bad Faith Claim Even Though Statute of Limitations On Breach of Contract Claim Has Run
A Massachusetts state trial court recently ruled that, even though an insured’s contractual coverage claim against its insurer was time-barred, its claim for insurer bad faith could proceed under a separate statutory limitations period.
California Federal Court: Bad Faith and Breach of Duty to Settle Claim Against Excess Insurers Not Ripe Until Final Settlement Reached or Judgment Entered In Excess of Primary Policy Limits
By Troutman Pepper Locke on
A California federal court recently dismissed breach of contract and bad faith claims based upon certain excess insurers’ failure to fund a purportedly reasonable settlement, holding that an excess judgment or settlement is a prerequisite to such a claim.
Missouri Court of Appeals Upholds $8 Million Punitive Damages Award Against Insurer In Case Arising From $10,300 Auto Claim
By Troutman Pepper Locke on
The Missouri Court of Appeals recently affirmed an $8 million punitive damages award against an insurer in a breach of contract, malicious prosecution, and punitive damages action arising from a denied automobile insurance claim valued at $10,300.
BI-Economy: New York’s Highest Court Sustains Insured’s Claim for Consequential Damages
In Bi-Economy v. Harleysville, 2008 N.Y. Slip Op. 01418 (Feb. 19, 2008), the New York Court of Appeals reversed summary judgment for an insurer and held that, under the factual circumstances presented and “in light of the nature and purpose of the insurance contract at issue,” the insured had stated a viable claim for consequential damages. …
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Panasia: New York High Court Permits Consequential Damages for Bad Faith Breach of Policy
The New York Court of Appeals recently held that consequential damages are a permissible remedy for an insurer’s breach of the covenant of good faith and fair dealing. …
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Washington Supreme Court Holds That Insurer’s Subpoena To, and Ex Parte Communications with, Arbitrator Constitute Bad Faith
By Troutman Pepper Locke on
In late 2007, the Washington Supreme Court held that (1) an insurer’s issuance of a subpoena to and ex parte written communications with an arbitrator in an underlying claim constituted bad faith; and (2) the insurer did not rebut the presumption of harm that arose from that bad faith finding.
California Wildfire Decisions May Provide a Guide for Future Disputes – Part II: “Usually Situated” Language May Be Found Ambiguous
In the wake of the wildfires that devastated Southern California in October of last year, more than 22,000 insurance claims were filed, according to the Insurance Information Network of California. While the bulk of those claims may be for additional living expenses due to the mass evacuation of San Diego County, at least 1,500 homes were destroyed by the fires.