Appeals Court Affirms Finding of Bad Faith But Reverses Awarding of Punitive Damages

SAN FRANCISCO - According to an opinion filed Sept. 3 in California's Ninth Circuit Court of Appeals, a jury's award of compensatory damages for bad faith on the part of an insurance company that refused to either cover or deny a water and mold claim was upheld, although the award of punitive damages was reversed. Thomas Anderson v. Allstate Insurance Company, an Illinois Corporation, Nos. 01-15145, 01-15246, 01-15307 & 01-15330 (9th Cir.)

The appeals court agreed with the jury and a district court that sufficient evidence had been presented to support the plaintiff's claim of bad faith and the associated …