Plaintiff jury verdict for insurance bad faith and punitive damages

Our client was an LLC that owned and operated a private jet that was seized by the federal government because of the criminal acts of the member with a minority interest.  Our client had a comprehensive insurance policy issued by Starr Indemnity & Liability, one of the top aviation insurers in the United States that, along with affiliated companies, earns billions in annual revenue.  The policy included coverage for government seizure, so our client rightfully submitted a claim for $4 million.  Rather than provide coverage for the loss, the insurance company rejected the claim.

We sued the insurance company for breach of contract and bad faith.  For five years, the insurance company engaged in deceptive efforts to justify its premeditated denial.  Rather than accept responsibility as the law required, the insurer claimed that the criminal conduct of the minority-member was attributable to the insured business, our client.  We developed a strategy to establish that the insurance company, its executives, adjusters, underwriters and coverage counsel acted deceptively and maliciously to deny coverage.

After a lengthy jury trial in Santa Barbara, we prevailed, proving that the insurance company had engaged in textbook delays and waste.  The jury awarded our client the full amount of the $4 million policy, and $15 million in punitive damages.  We later secured an award of more than $1.5 million in attorney fees and costs, for a total judgment of more than $21 million.