Spacewalker, Inc. v. American Family Mutual Insurance

GERALD M. SMITH, Presiding Judge.

Insurance Company of North America (INA) appeals from a default judgment entered against it as a result of sanctions imposed because of alleged failure to make discovery. The court awarded compensatory damages of $550,000 and punitive damages of the same amount. We reverse and remand.

Plaintiff, Spacewalker, Inc., originally brought this action against defendants American Family Mutual Insurance Company, Cigna Insurance Company, and Joe Mahler. As to Cigna, it alleged that Cigna incorrectly classified Spaeewalker’s business which resulted in higher premiums and…