The U.S. Court of Appeals for the Ninth Circuit has reduced a $2.5 million punitive damages award against Geico Indemnity Company to $1,064,282.44 after finding, among other things, that its conduct had been only of "low to moderate reprehensibility."
The case
Louise King's husband was killed on Aug. 27, 2011, by a drugged driver who did not have insurance. When King submitted her claim for uninsured motorist coverage to her carrier, Geico, the carrier offered half of what was available under the policy in exchange for a release of all claims. When King refused to sign the release, Geico refused to pay any of the insurance proceeds. King filed suit for wrongful death and survival as the representative of her husband's estate. She also filed a claim on her own behalf for emotional distress.
In February 2014, a Montana jury awarded King $266,070.61 in compensatory damages and legal fees:
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