Mealey's Insurance - Panel Reinstates $12.5 M Verdict Against Insurer Over Bad Faith Settlements

Mealey's Insurance - Panel Reinstates $12.5 M Verdict Against Insurer Over Bad Faith Settlements

RICHMOND, Va. - A commercial general liability insurer does not need to have caused actual damages to be liable for punitive damages, the Fourth Circuit U.S. Court of Appeals held Feb. 10, reinstating a jury's $12.5 million verdict finding that the insurer acted in bad faith when settling underlying property damage lawsuits against an insured manufacturer (Liberty Mutual Fire Insurance Co. and Employers Insurance of Wausau v. JT Walker Industries Inc., et al., Nos. 12-2256 & 12-2350, 4th Cir.; 2014 U.S. App. LEXIS 2470).

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