Facts

Nazila and Bijan Neman's home, deck, and pool were damaged by a falling eucalyptus tree during high winds. The Nemans had a homeowner's insurance policy with State Farm General Insurance Company, and they filed a claim for the damages caused by the tree. State Farm partially paid the portions of the claim for damages to the house and deck, but it did not immediately pay the claim for the damages to the pool. Ultimately, State Farm denied the portion of the claim pertaining to the pool. The Nemans filed suit against State Farm in state court, but the action was removed to federal district court on motion by State Farm.

PLAINTIFFS' CONTENTIONS: Plaintiffs contended that Defendant failed to pay out their insurance claim pursuant to the terms of their insurance policy; that Defendant acted in bad faith in denying the claim; and that they had suffered damages as a result of Defendant's actions.

DEFENDANT'S CONTENTIONS: Defendants contended that they paid the claim as required by the policy; and that the damage to Plaintiffs' pool was long-term damage and not caused by the falling eucalyptus tree.

Result

A federal jury returned a verdict in favor of the Nemans, awarding them almost $5.9 million, including $5 million in punitive damages. The court ultimately entered judgment against State Farm in the amount of $893,900, plus pre-judgment interest in the amount of $208,725.