Travelers Insurance v. Lesher

Opinion

SCOTT, J.

A jury awarded an insured $1.5 million for damages resulting from an insurer’s improper conduct of a defense undertaken under a reservation of rights. The jury also awarded $1.5 million in punitive damages. Although we conclude that the insurer had no duty to defend or indemnify under the terms of the policy, we also conclude that the evidence in this unusual case was sufficient to support the compensatory damage award. The award of punitive damages is not supported by substantial evidence and must be reversed.

Introduction

Dean S. Lesher (Lesher) and others were named as…