Farmers Insurance Exchange v. Shirley

THOMAS, Justice.

In this case we analyze our jurisprudential rules relating to punitive damages in light of the due process requirements set forth in BMW of North America, Inc. v. Gore, 517 US. 559, 116 S.Ct. 1589, 134 L.Ed.2d 809 (1996). The jury awarded compensatory damages to Barbara Shirley and Darol Shirley (the Shirleys) in the aggregate amount of $6,400 for the tort of breach of the duty of good faith and fair dealing by Farmers Insurance Exchange (Farmers). The disposi-tive issue under the law of our state is whether the Shirleys proved they suffered substantial other economic damages…