The respondent's dairy barn and livestock were destroyed in a fire.
The appellant insurer paid over $1.17 million under the policy but disputed other aspects of the claim, including loss of livestock, loss of earnings, and damage to silos.
At trial, the jury awarded the respondent an additional $488,389 in compensatory damages and $750,000 in punitive damages for the insurer's breach of its duty of good faith.
The insurer appealed.
The Court of Appeal allowed the appeal in part, setting aside the punitive damages award.
The Court held that while the insurer breached its duty to act fairly and in good faith by failing to promptly pay amounts it reasonably believed were owing, its conduct was not so outrageous or extreme as to warrant punishment.
