Ronnie Ezell v. Hayes Oilfield Construction Co., Inc., Cross-Appellant v. United States Fidelity & Guaranty Co., Cross-Appellee

GOLDBERG, Circuit Judge:

This is an appeal from a jury verdict awarding punitive damages to an insured party in a diversity action against its insurer for breach of the insurer’s duty to defend the insured. Ronnie Ezell, an employee of Hayes Oilfield Construction, Inc. (“Hayes”), was injured on the job and sued Hayes. United States Fidelity & Guaranty Co. (“USF & G”), Hayes’ insurance carrier, notified Hayes that USF & G would not defend the suit. Hayes joined USF & G as a third-party defendant, claiming the costs of Hayes’ defense against Ezell’s claim and claiming punitive damages for USF &…