Justin v. Guardian Ins. Co., Inc.

MEMORANDUM AND ORDER

We write today to clarify Virgin Islands law on the tort of bad faith. In addition, we reject a constitutional challenge to that tort; but we will require a greater evidentiary standard for the proof of punitive damages.

I. FACTS

The plaintiff, Octave Justin, procured liability and physical damage insurance on March 25, 1985, for his Ford taxi van through the defendant, Guardian Insurance Co., Inc. (“Guardian”). After the van suffered a fire of undetérmined origin on November 18, 1985, Justin filed a claim with Guardian. (Amended Complaint ¶¶4-10.)

On November 21, 1985,…