Mazik v. GEICO General Insurance Co.

GEICO appealed a judgment awarding punitive damages to plaintiff for GEICO's bad faith breach of an insurance contract. The Court of Appeal affirmed the punitive damages award and held that there was sufficient evidence in the record to show that GEICO's managing agent ratified conduct warranting punitive damages. In this case, GEICO concluded that plaintiff's claim was worth far less than the policy limits by disregarding information provided by plaintiff showing that he had a permanent, painful injury, and instead selectively relied on portions of medical records that supported GEICO's position that plaintiff had fully recovered. Furthermore, the $1 million in punitive damages was within the constitutionally permitted range in view of the degree of reprehensibility of GEICO's conduct. View "Mazik v. GEICO General Insurance Co." on Justia Law