Bad Faith Blog

Summary: Boesel brought action against State Farm claiming bad faith when the insurer denied his claim for coverage. The District Court granted summary judgment finding Boesel failed to raise a genuine issue of material fact. The Ninth Circuit Court of Appeals affirmed.

Summary: The Nardellis bought a Ford Explorer for over $35,000 and had it insured with Met Life. Ten months later, it was stolen and then found abandoned in Mexico with multiple interior, exterior, and engine damages. The Nardellis wanted the Explorer declared a total loss, but Met Life refused. An Arizona jury returned a “compensatory damages” verdict of $155,000 and a punitive damages award of $55 million. The trial court reduced the punitive award to $620,000. On appeal, the bad faith award was affirmed unanimously and, on a split vote, the punitive damages award was affirmed, but reduced to $155,000.