Mr. Vann, a former owner of an auto repair shop, requested his insurer to provide a defense after being sued for environmental damage caused to the property. The Travelers Insurance Company initially denied a policy existed, and once found, requested impossible personal information from Vann. A jury found The Travelers Insurance Company guilty of bad faith, leading to an award of $26.5 million upheld by the Supreme Court.
3. Pinto v. Farmers Ins. Exchange – award: $10 million
A California Appeals Court found a bad faith failure to settle the claim in this case. Pinto was a passenger injured in a solo vehicle accident, leaving him paralyzed. Farmers conducted an inadequate investigation of the claim, and failed to provide Pinto with critical information. The insurer appealed, and the $10 million judgment against them was reversed due to inadequate jury verdicts.
4. David Clayton v. United Services Automobile Association – award: $3.9 million
The insurance company, US Automobile Association, offered $10,000 on policy limits of $300,000 for a case where the only child of two parents was killed in an auto accident. The jury felt this was inadequate and in bad faith, leading to an award of $3.9 million.
