Campbell v. State Farm Mutual Automobile Insurance Company
Utah Supreme Court opinion: $9 million punitive damages award to plaintiff after State Farm refused to settle, exposing plaintiff to personal liability
Case impact: In Campbell, a State Farm insured customer that caused a car accident sued the company for “bad faith” after State Farm’s unwarranted refusal to settle the exposed insured customer to more than $100,000 in personal liability. Among the many bombshell revelations that came out during the case, the Utah Supreme Court highlighted several instances of “reprehensible conduct” and “egregious and malicious behavior” on State Farm’s part.
The Utah Supreme Court held: “that State Farm’s behavior toward the Campbells was so egregious as to warrant a punitive damages award of $9,018,780.75, an amount nine times greater than the amount of compensatory and special damages.”
For more information, read our blog on Campbell v. State Farm.