United Services Automobile Ass'n v. Lisanby

KITCHENS, Justice,

for the Court:

¶ 1. This case involves an alleged breach of contract and bad-faith denial of a homeowners’ insurance claim following Hurricane Katrina. The jury awarded the plaintiffs more than $900,000 in compensatory damages, but the trial judge directed a verdict in favor of the defendant on the issue of punitive damages. USAA appealed and the Lisanbys cross-appealed. Because the defendant demonstrated an arguable basis for its denial of claims, the trial judge erred in submitting the emotional damages claim to the jury and in awarding attorneys’ fees and litigation…