Old United Ins. v. Buhrman
Don Buhrman bought a pleasure boat that he insured with Old United Insurance Company (Old United). After Buhrman replaced the engine, the boat sank in a storm while anchored at Lake Mead. Old United refused to pay Buhrmans claim, which did not include the value of the new engine; cancelled and rescinded his insurance and refunded his premiums; and filed an action for rescission based on a material change in the boat. Buhrman filed a cross-complaint for tortious breach of contract, breach of contract, negligence, fraud, indemnity, contribution, and declaratory relief, claiming actual damages of $60,000 or more.
Based on a special verdict form prepared by Buhrman, the jury rendered a verdict of $17,091 for Buhrmans covered loss; $316,230 for economic loss, including lost wages; $184,000 for noneconomic damages; and $1 million in punitive damages.Old United and Western Marine Insurance Services, Inc. (Westmar), the insurance agent, appeal from the judgment against them. Court hold the punitive damages award should be stricken and the award for economic damages reduced to $60,245. Otherwise, Court affirm the judgment with directions.
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