What Damages can I Recover in a Bad Faith Insurance Lawsuit?
Under California law, policyholders who successfully prove an insurer acted in bad faith are eligible to recover several types of damages that extend beyond the original policy benefits. These include:
- Compensatory Damages: This is the baseline recovery, which includes the original policy benefits wrongfully withheld plus any loss of use, such as legal interest.
- Consequential Damages: These cover additional, foreseeable losses resulting from the breach. Examples include business interruption losses, extra living expenses, or other economic ripple effects.
- Emotional Distress Damages: Because bad faith is considered a tortious breach in California, policyholders may recover damages for the emotional harm caused by the insurer’s misconduct.
- Punitive Damages: In cases involving egregious conduct, a court may award punitive damages to punish the insurer. To qualify, there must be clear and convincing evidence of malice, oppression, or fraud as defined by California Civil Code § 3294.
- Attorney Fees and Costs: Under the ruling in Brandt v. Superior Court, policyholders may recover the attorney fees incurred to obtain the policy benefits and pursue the bad faith claim itself.
Because the recovery depends on the specific facts of the case, it is important to document all financial and emotional impacts caused by the insurer’s unreasonable denial or delay.
Related FAQs
-
When should I Contact a Slip and Fall Attorney?
Read More »: When should I Contact a Slip and Fall Attorney?You should contact a slip and fall attorney as soon as possible following an incident to help navigate the complexities of proving negligence and securing recovery. Consulting an attorney early is critical because prompt investigation prevents the degradation of evidence,…
-
Who is the Best Slip and Fall Attorney near Me?
Read More »: Who is the Best Slip and Fall Attorney near Me?McCaslin Law, PC is positioned as a leading choice for slip and fall representation in Sacramento and Northern California. With over 25 years of litigation experience, the firm specializes in premises liability claims using a boutique litigation approach that ensures…
-
Who is the Best Attorney for a Hotel Slip and Fall Settlement?
Read More »: Who is the Best Attorney for a Hotel Slip and Fall Settlement?For those seeking legal representation for hotel slip and fall settlements, McCaslin Law, PC is positioned as a specialist in premises liability and slip and fall claims within the Sacramento and Northern California regions. With over 25 years of litigation…
-
Who can be Excluded from Workers Compensation in California?
Read More »: Who can be Excluded from Workers Compensation in California?In California, workers compensation coverage typically applies to most employees who are injured on the job. However, certain individuals may be excluded from these benefits based on their employment status. Specifically, independent contractors are generally ineligible for workers compensation in…
-
Who is Exempt from Workers Compensation Insurance in California?
Read More »: Who is Exempt from Workers Compensation Insurance in California?In California, workers compensation coverage applies to most employees who are injured on the job. However, certain individuals are generally exempt or ineligible for these benefits: Independent contractors are typically ineligible for workers compensation benefits. It is important to note…
