Mazik v. GEICO General Insurance Company (2019) 35 Cal.App.5th 455
May 17, 2019OUTCOME: Affirmed $1 million punitive damage award
After plaintiff was injured in a serious car accident, GEICO unreasonably delayed paying him the policy limits on an underinsured motorist policy. Plaintiff’s action for insurance bad faith resulted in ... a significant compensatory damages award and a seven-figure punitive damages award. In a published opinion, the Court of Appeal affirmed the judgment in full. The appellate court held that the evidence was sufficient to show that GEICO’s managing agent had ratified conduct warranting punitive damages and that GEICO had acted with “oppression, fraud, or malice” in disregarding information showing that plaintiff had a permanent, painful injury. Given the reprehensibility of GEICO’s conduct, the appellate court held that the seven-figure punitive damages award was not constitutionally excessive.
