April 11, 2012

Montana jury awards $32 million in punitives against insurer

Insurance Journal reports that a jury in Montana has awarded $2 million in compensatory damages and $32 million in punitive damages to a 90-year-old resident of an assisted-living facility who claims that her insurer wrongly suspended payments for her dementia care.  The article doesn't give many details about the case, but it's hard to imagine how the punitive damages award could survive judicial review, given the substantial compensatory damages and the ratio of 16 to 1.