The San Bernardino Sun reports that a San Bernardino County jury awarded $6 million in compensatory damages and $12 million in punitive damages against American Reliable Insurance for its delay in paying a $145,000 claim.
The plaintiffs alleged that after rain water damaged their home, a contractor estimated that repairs would cost over $100,000. They made a claim to their insurer, who initially paid them only $5,000. The insurer later paid another $140,000, the full limits of the policy, but the plaintiffs said that was only after they had been forced to live without heat in their home for five years.
In their lawsuit against the insurer for bad faith, a jury awarded them $6 million for pain and suffering plus an additional $12 million for punitive damages. The story does not indicate whether the insurer plans to challenge the award through posttrial motions and appeal, but that seems likely given the size of the award.