Lehto v. Allstate Insurance

Opinion

ARMSTRONG, J.

In this insurance bad faith suit, defendant Allstate Insurance Company appeals the judgment entered following a jury’s verdict in favor of plaintiff Gary Lehto. Prior to the instant action, Allstate’s insureds, Israel and Raul Carbajal, entered into a stipulated judgment in the amount of $2.6 million in favor of plaintiff, in exchange for a covenant not to execute and an assignment of the Carbajals’ bad faith claims against Allstate. The jury awarded plaintiff $2.5 million in compensatory damages based on the Carbajals’ bad faith claims, and $1 million in compensatory…