James C. Buzzard and Martha N. Buzzard

Summary

The court affirmed the judgment against Farmers for bad-faith handling of the Buzzards' underinsured-motorist claim, holding that Farmers had no reasonable basis to delay payment until the City's liability limits were exhausted and was estopped from relying on the loss of subrogation rights after inducing the settlement. The court also upheld the evidentiary ruling and jury instructions, and affirmed punitive damages only if the Buzzards remitted the amount exceeding $400,000. Opala, C.J., joined by Wilson, J., and Simms and Hargrave, JJ., concurred in part and dissented in part, contending that the jury's punitive-damages verdict was protected from remittitur.