Punitive Damages in Bad Faith Actions Against Insurers in the USA: The Impact of <Emphasis Type="Italic">Campbell v. State Farm</Emphasis> |
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Authors: | Jeffrey W Stempel |
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Institution: | 1.William S. Boyd School of Law,University of Nevada Las Vegas,Las Vegas,USA |
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Abstract: | This article provides an overview of the history and practice of punitive damages in the USA, including U.S. Supreme Court resistance to punitive damages beginning in the 1990s. The 2003 Campbell decision continued this doctrinal trend in an case of seemingly egregious insurer “bad faith.” Examining insurance bad faith cases after Campbell, it appears that the Court’s decision had a practical impact as well as a doctrinal impact. Since Campbell, insurers appear to have enjoyed greater judicial protection against punitive damages in bad faith cases, expanding a trend discernable after the Court’s 1996 BMW v. Gore decision. However, the 50 states have not modified their jury instructions on punitive damages since these decisions, seemingly ceding this area to the courts as a matter of federal constitutional review. The 2007 Williams v. Philip Morris decision continued the trend in a non-insurance case, as the court overturned a large punitive award against a tobacco company. |
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