State Farm Mutual Automobile Insurance Co. v. Campbell

After Campbell's reckless driving caused a fatal accident, his insurer State Farm (defendant) refused to settle within his $50,000 policy limit despite its own investigators' warnings, took the case to trial while assuring the Campbells their assets were safe, and lost, resulting in a $185,849 judgment initially requiring the Campbells to cover $135,849 beyond their policy limit; after State Farm eventually paid the full judgment following unsuccessful appeals, the Campbells (plaintiffs) sued State Farm for bad faith, fraud, and emotional distress, and a jury awarded $2.6 million in compensatory and $145 million in punitive damages, later reduced by the trial court to $1 million and $25 million respectively before the Utah Supreme Court reinstated the full $145 million punitive award.