Procedural Posture

Appellant insurer sought review of a judgment of the Superior Court of Los Angeles County (California) in favor of respondent insured, asserting that the evidence was insufficient to establish the essential elements of respondent’s claims and that the judgment was grossly excessive and was the product of passion and prejudice.

California Business Lawyer & Corporate Lawyer, Inc. provides an Attorney Termination Letter.

Overview

Appellant insurer issued an automobile insurance policy to respondent insured. The policy provided that written notice of accidents was required as soon as practicable. Respondent’s son, a covered driver under the policy, was in an automobile accident while driving an uninsured vehicle. Respondent testified that he reported the accident to appellant that day or the next day. He also testified regarding numerous communications with appellant’s employees over a period of months regarding being reimbursed for settling the property damage claim with the other driver. Evidence was presented that appellant’s employees misrepresented certain facts to respondent and failed to investigate disparate appraisals. The court affirmed the judgment for respondent, including the punitive and compensatory damage awards. The jury could have found the elements of respondent’s claim for a breach of the implied covenant of good faith and fair dealing, as well as the necessary underpinnings of a punitive damages award. The court further held that the judgment was not grossly excessive when considering appellant’s wealth and the nature of its acts.

Outcome

The court affirmed the judgment for respondent insured, finding that the jury could have found the elements of both a breach of the implied covenant of good faith and fair dealing and a punitive damage award. The court also found that the judgment was not grossly excessive considering appellant’s wealth and the particular nature of its acts.