Claims Servicers Say $2.75 Million Punitive Damages Award Was Excessive, Unlawful

NEW YORK — In the wake of a verdict entered in favor of Starr Indemnity & Liability Co. in a lawsuit involving claims servicing fees, the defendants have moved for judgment as a matter of law or a new trial, arguing that the award of $2.75 million in punitive damages contravened California law.

In their Aug. 10 motion, defendants American Claims Management Inc. and its affiliates further argue that they were prejudiced by not being given the opportunity to adequately respond to the punitive damage claims and that the awards were excessive.

In January 2010, Starr entered into a claims …