State Farm Fire & Casualty Co. v. Nicholson

OPINION

MOORE, Justice.

David and Noreen Nicholson sued State Farm Fire & Casualty Company for unreasonably and willfully breaching its duty to act in good faith. The Nicholsons alleged that State Farm did not promptly settle a claim under their homeowner’s policy. The jury returned a special verdict in favor of the Nicholsons, awarding $105,700 in compensatory damages and $7,500 in punitive damages. On appeal, we address whether the breach of the implied covenant of good faith and fair dealing in “first-party” insurance cases is a tort, thereby possibly justifying an award of punitive damages,…