Insurance Company Settles Suit Prior to Punitive Damages Award; Compensatory Damages Assessed at $2.9 Million

SACRAMENTO, Calif. - After being hit with a $2.9 million verdict for compensatory damages in favor of two Sacramento apartment complex owners, Republic Western Insurance Company, on trial for refusing to cover water and mold damages, reached a confidential settlement with the insureds just as the jury was deciding punitive damages. Katayama International, Inc. and Mayatek Corporation v. Republic Western Insurance Company, No. 98AS00946 (Calif. Super. Ct., Sacramento Cty.).

A jury delivered the April 11 verdict in Sacramento County Superior Court in favor the apartment complex owners, Katayama International, Inc. and Mayatek Corporation. The companies had sued Republic over its …