Kimble v. Land Concepts, Inc.
Annotate this CaseIn 2009, Plaintiffs filed an amended complaint against, among other defendants, First American Title Insurance Company, with whom Plaintiffs had a title insurance policy for their property, for failing to defend the title to their property. As part of the settlement between Plaintiffs and defendants John and Jane Stevenson, the Stevensons paid Plaintiffs for an assignment of their rights under the title insurance policy, including any claims against First American. The Stevensons subsequently filed a cross-claim against First American for breach of contract and breach of fiduciary duty and bad faith for refusing to defend the title to Plaintiffs’ lot. After a jury trial, the jury returned a verdict in favor of the Stevensons and awarded the Stevensons compensatory damages and $1,000,000 in punitive damages to punish First American’s bad faith. The circuit court allowed the bad faith finding and the punitive damages award to stand. The court of appeals affirmed. The Supreme Court reversed, holding (1) the punitive damages award in this case was excessive and deprived First American of its right to due process, and (2) the appropriate amount of punitive damages in this case was $210,000.
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