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Limitations on Penal Injuries | Zalma about insurance



Watch the full video at https://rumble.com/vnv3fc-limitations-on-punitive-damages.html and at https://youtu.be/98CKBXxzaiM[19659004]The USA The Supreme Court has limited the extent of available criminal damages in State Farm Mutual Automobile Insurance Co. v. Campbell 123 S.Ct. 1513, 155 L.Ed.2d 585 (U.S. 2003), in which it set aside a judgment of $ 145 million against an insurer. It said a $ 145 million penalty was excessive and violated the fourteenth amendment clause. By reducing the exposure to excessive and weakening punitive damages, professionals can hope that the Supreme Court's ruling will give insurers more courage to fight insurance fraud as their exposure to punitive damages is limited. Regardless, Campbell allows the recovery of punitive damages for gross violation of the insurance contract and the damage of bad faith.

The case Campbell arose from a car accident in which one party was killed and another seriously injured. Campbells, insured by State Farm, tried to pass six vehicles on a two-lane highway, failed and had the driver of an oncoming car drive off the road to avoid a collision with Campbell's vehicle. Campbells had only $ 25,000 coverage per person and $ 50,000 in total. Campbells felt they were not guilty because there was no contact between the two vehicles. State Farm ignored the council from its adjuster and adviser to accept policy boundaries and took the case to court. The verdict at the trial was over $ 180,000 and the state-appointed attorney general told Campbells that they would put their house on the market because they would need the money to pay the verdict. State Farm refused to pay the verdict to fund an appeal. Campbells retained personal counsel to pursue an unsuccessful appeal, concluding a settlement with the plaintiffs in which the plaintiffs agreed not to carry out their sentence in exchange for a 90% assignment of all money received in an evil act of faith from Campbells against the State Farm. Before the lawsuit was filed, State Farm paid the full sentence.

At trial, the plaintiff brought evidence of State Farm's actions in first-party cases across the country, in third-party cases that did not resemble Campbell's car accident, and other evidence unrelated to the facts of their case.

The Supreme Court found that State Farms' "handling the claims against Campbells does not deserve praise", but concluded "a more modest punishment could have met the state's legitimate goals. [19659008] © 2021 – Barry Zalma

Barry Zalma, Esq ., CFE, now limits his practice to serving as an insurance consultant specializing in insurance coverage, insurance claims management, bad faith insurance and insurance fraud almost as much for insurers and policyholders. [19659005] practiced law in California for more than 44 years as an insurance and claims management attorney and more than 54 years in the insurance industry.

Subscribe to Excellence in Claims Handling at https://barryzalma.substack.com/welcome.

He is available at http://www.zalma.com and zalma@zalma.com Mr. Zalma is the first recipient of the first annual Claims Magazine / ACE Legend Award. For the past 53 years, Barry Zalma has devoted his life to insurance, insurance claims and the need to defeat insurance fraud. He has created the following library of books and other materials to enable insurance companies and their indemnity staff to become insurance professionals.

Go to training available at https://claimschool.com; articles at https://zalma.substack.com, the podcast Zalma On Insurance at https://anchor.fm/barry-zalma; Follow Mr. Zalma on Twitter at https://twitter.com/bzalma ; Go to Barry Zalma videos at https://www.rumble.com/zalma; Go to Barry Zalma on YouTube- https://www.youtube.com/channel/UCysiZklEtxZsSF9DfC0Expg; Go to Insurance Claims Library-https: //zalma.com/blog/insurance-claims-library/ T the last two issues of ZIFL are available at https://zalma.com/zalmas-insurance-fraud- letter -2 / podcast now available at https://podcasts.apple.com/us/podcast/zalma-on-insurance/id1509583809?uo=4


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