Lira v. Shelter Insurance Co.

In this tort action brought by Joel Lira against Shelter Insurance Company (Shelter) for bad faith breach of an automobile liability insurance contract, the majority holds that when an insured’s only claim is for punitive damages awarded against him in the underlying lawsuit, the insured cannot recover. Maj. op. at 516, 517, 518. In so holding, the majority affirms a decision of the Colorado Court of Appeals which reversed a trial court judgment in favor of Lira. See Lira v. Shelter Ins. Co., 903 P.2d 1147 (Colo.App.1994). I respectfully dissent.

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The facts and procedural history of this case…