August 8, 2015

Oakland jury awards $46 million in punitive damages against AIG

Business Insurance reports that a jury in Oakland has ordered three AIG companies to pay $46 million in punitive damages, on top of $9.3 in compensatory damages.  The plaintiff, Victaulic Co., sued the AIG companies for bad faith in connection with their response to third-party lawsuits against Victaulic in various states.

To our knowledge, no punitive damages award of this size has ever survived appeal in a California  insurance bad faith case. 

Full disclosure: Horvitz & Levy LLP represents AIG in several pending California cases