Farmland Mutual Insurance Co. v. Johnson

LAMBERT, Chief Justice.

This litigation arises out of a disputed fire insurance claim. The insured stipulated that the amount of the loss was fairly debatable, and the insurer contends that a claim against it for bad faith under the Kentucky Unfair Claims Settlement Practices Act (“KUCSPA”) is thereby foreclosed. This and a multiplicity of other issues are raised in this appeal from a judgment upon a jury verdict awarding the plaintiffs punitive damages of $2 million for bad faith and violations and violations of the KUCSPA.

On April 22,1992, a commercial building owned by Lemuel and Virginia…