Facts

Craig Milhouse and Pamela Milhouse owned a home in Yorba Linda. In 2008, the Yorba Linda Freeway Complex fire destroyed their home. The house and all of their personal property within was lost. The Milhouses then tendered a claim to Travelers Commercial Insurance Co. on their homeowner's insurance policy, but Travelers disputed their claim. The Milhouses then sued, alleging breach of contract and breach of the covenant of good faith and fair dealing.

After a trial, a jury awarded the Milhouses $1,949,634 in damages on their breach of contract claim. The jury found no bad faith and awarded no extracontractual damages, and further found no basis for any award of punitive damages..

Both sides then filed post-trial motions, disputing various parts of the judgment. Travelers moved for judgment as a matter of law, or sought a new trial on the Milhouse's contract claim.

The Milhouses moved for a new trial on their breach of good faith claims.

PLAINTIFF'S CONTENTIONS:
The Milhouses argued that Travelers had acted in bad faith, and that errors during the trial had prejudiced them on the issue.

DEFENDANT'S CONTENTIONS:
Travelers argued that the jury's verdict had not been reasonable, and because it had not been in breach of contract. They also argued that the Milhouses could not establish that Travelers was in breach of any dwelling, alternative living, or loss of use coverage obligations.

Result

The court sided with the Millhouses, granting its post-trial motion for remittitur, or a new trial. The court found that the jury's damage award was excessive, and remitted it to $1,076,634. The Millhouses chose to accept the remittitur on the breach of contract claim. The court also denied plaintiff's motion for a new trial on bad faith and punitive damages.

Other Information

The Milhouses' final post trial motion, to augment the judgment, is currently scheduled to be heard on January 6th when the final amount of judgment will be determined. Both parties have filed notices of intent to appeal.