Jury Delivers Devastating Verdict
In November, a jury reached a verdict that would send shockwaves through the insurance industry. The panel concluded that St. Paul had not only acted in bad faith but had engaged in what Missouri law terms a “vexatious refusal” to pay legitimate claims.
This finding opened the door for significant punitive damages under Missouri’s statutory framework, which is designed to punish insurance companies that engage in egregious conduct and deter similar behavior in the future.
Judge S. Cotton Walker upheld the jury’s findings in his Monday order, meticulously calculating the massive financial penalty that would serve as both compensation and punishment.
Breaking Down the $44 Million Judgment
The nearly $44 million award represents multiple components of damages:
- $3.2 million in compensatory damages to Ferguson and the officers
- $24.2 million in punitive damages designed to punish the insurance company’s conduct
- $535,000 for the “vexatious refusal” allegation under Missouri’s specific statutory provisions
- Approximately $16 million in interest accumulated on all damages over the years of litigation
Under a pre-existing agreement between Ferguson and the six officers, they will split approximately $5 million of the total award, with Ferguson receiving the lion’s share of the remaining damages.
