This comment discusses the case of Egan v. Mutual of Omaha Insurance Co. in which the California Court of Appeals authorized $2,500,000 in punitive damages for an Insurance company's breach of contract and the appropriateness of punitive damages in general for breach of insurance contracts. The author begins by looking at the purposes of punitive damages. The author then addresses the use of punitive damages in contact actions. Next, the author addresses punitive damages in insurance contracts before Egan. Finally the author does a critical evaluation of the Egan case and concludes that punitive damages can be an effective means of combating breach of contracts by insurers.
Bradley J. Fisher,
Egan v. Mutual of Omaha Insurance Co.: The Expanding Use of Punitive Damages in Breach of Insurance Contract Actions,
San Diego L. Rev.
Available at: https://digital.sandiego.edu/sdlr/vol15/iss2/5