Farmers Insurance Bad Faith Verdict Upheld, But Punitive Damages Reduced
In a decision that will likely weigh strongly on defendants in future personal injury cases, a California Court of Appeal recently concluded a 6-year-old case by upholding a bad-faith judgment against Farmers Insurance Exchange. In the opinion, written by Justice Madeleine Flier, the court upholds the Superior Court’s judgment; a jury verdict awarding damages of $10 million has been reduced to around $3 million, however. http://www.metnews.com/
The case began in June 2001 when 76-year-old Betty Jo Walker of Los Angeles injured her neighbor, Juanita Wasson, by closing her garage door apparently without seeing Wasson standing underneath. Because the condominium where the injury occurred was part of a complex, Wasson then filed a lawsuit against both the homeowner’s association and the homeowners (Walker and co-owner Linda Williams). Upon notification of the suit, Farmers Insurance, who represented the association, refused to defend the homeowners, claiming Walker’s careless use of the garage door was negligent and independent of home ownership. Consequently, Walker and Williams were forced to hire another law firm for their defense, and before eventually settling with Wasson for $6,500, the women racked up over $45,000 in legal fees.
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