Griffin Dewatering Corp. v. Northern Ins. Co. of New York

Opinion

SILLS, P. J,

I. INTRODUCTION

At first we did not know what to make of this case. There was a $10 million judgment obtained by a nationwide groundwater pumping and control company against its liability insurer. The compensatory damages—all of which consisted of the attorney fees and costs incurred to sue the insurer for the $10 million—were about $1 million. What foul deeds had the insurer committed, we wondered, that merited such punishment?

At first the answer seemed simple.

At a meeting in Houston in May 1997, representatives of the insurer had, in order to induce the insured to renew…