Norman G. Kelley, Cross-Appellant v. Sears, Roebuck and Company Allstate Life Insurance Company, Cross-Appellees
Court of Appeals for the Tenth Circuit
1Opinion of the Court
EUGENE A. WRIGHT, Circuit Judge.
Kelley sued Sears and Allstate for bad faith handling of his Workmen’s Compensation and long term disability claims. A jury awarded him $2.17 million in compensatory and punitive damages. We reverse the judgment against Allstate and remand for a new trial against Sears on the amount of compensatory and punitive damages.
I. Background
Sears employed Kelley from 1959-1979. He injured his back in 1970 and applied for Workmen’s Compensation benefits. Sears admitted Kelley had sustained 7% permanent, partial disability and paid him a lump sum settlement. In 1974,…
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