California Supreme Court
Jun. 16, 2016
Punitve damages in bad faith cases can take into account attorney fees
Attorney fees awarded in insurance bad faith cases may be included in the calculation of punitive damages -- even if the fees are assessed by the trial court following the jury's verdict.
Stephen L. Raucher
Partner
Reuben Raucher & Blum
Email: sraucher@rrbattorneys.com
Stephen practices complex business litigation, with an emphasis on representing policyholders in insurance disputes.
More than 30 years ago, in Brandt v. Superior Court, 37 Cal. 3d 813 (1985), the California Supreme Court held that an insurer who has acted in bad faith may be held liable for attorney fees incurred by the policyholder to compel the payment of policy benefits. The Supreme Court has now clarified in Nickerson v. Stonebridge Life Insurance Company, 2016 DJDAR 5547 (June 9, 2016), that those attorney fees may properly be included in the calculation of punitive damages - even...
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