Austero v. Washington National Insurance

Opinion

KAUFMAN, J.

Defendant appeals from a judgment, after retrial, awarding compensatory and punitive damages against it for bad faith failure to pay plaintiffs’ claims under two insurance policies.1 Defendant does not challenge the damages awarded to compensate plaintiffs for the benefits they should have received under the policies (approximately $24,678), but do claim error in the award of $25,000 to plaintiff Dorothy Austero for emotional distress, $200,000 for attorney’s fees, and $200,000 as punitive damages. The award for emotional distress is not supported by substantial evidence;…