Sheila D. Winningham v. Centennial Insurance Company

In this diversity action on a homeowner’s fire insurance policy, the only issue on ap peal concerns the jury award to the plaintiff-insured, Sheila Winningham, of $20,000 as a bad faith penalty and $5,800 in attorney’s fees. Agreeing with the defendant-insurer, Centennial Insurance Company, that there was insufficient evidence to support a finding of bad faith on the part of the insurance company, we reverse.

Both sides agree that Georgia law set the standard by which the penalty and attorneys fees could be awarded. In Georgia, this additional liability is not automatically imposed on an…